In fact, the last 12 months have been some of the costliest for insurance companies—based on recent natural disasters which are highlighted in the articles below…and include the impact of hurricane Sandy.
Property Insurance Rates Rise For 2013
http://tampa.cbslocal.com/2013/01/01/property-insurance-rates-rise-for-2013/
Property Insurance Costs Rising
http://www.miamiherald.com/2013/01/01/3163381/no-big-storms-but-property-insurance.html
Below are tips to help control your insurance premium increases.
#1. Shop your insurance. Gather the names of companies/brokers who specialize in apartment and RE building insurance. Consider working with an insurance broker that represents multiple companies. An insurance broker will give you several options for companies that would be best for the RE properties that you own/manage, instead of one option which is the primary concern of an exclusive insurance agent. It is also important to pick an insurance company that is financially stable. Check the financial health of your potential insurers with rating companies like A.M. Best and Standard & Poor’s.
#2. Consider higher deductibles. The higher the deductible, the less you will pay in insurance premiums for each policy. Weigh the difference and make sure it makes sense for the increase in a higher deductible.
#3. Set up a risk management/loss control program. Insurers will often lower your insurance rates if you put a program in place that will minimize losses from fire, theft and on-site injuries. Consider installing a security or fire system. Have a systematic approach to guiding your apartment residents into Renter’s Insurance. Renter’s Insurance will help control your loss history and frequency of claims.
#4. It is important to keep your insurance broker informed about any changes in your business operations. This includes major purchases, expansions or changes in hiring or in the nature of your operations. Ask your insurance broker what you can do to reduce risks such as fire or resident/tenant-related accidents and review the procedures in place if your business suffers a major catastrophe.
#5. Have the proper amount and type of insurance coverage. It is important to determine the amount of coverage needed for your RE and/or apartment buildings, verifying how your insurance broker came up with the limit of insurance coverages. Is it enough or is it too much coverage? You need to make your insurance broker aware of any lending insurance requirements that are mandatory; it is easier to negotiate coverage and pricing if all information is disclosed up front. Having the right amount of insurance coverage along with a carefully developed business plan that includes disaster preparedness can save you money with your insurance policies. Be sure to keep your insurance broker fully apprised of any changes within your business that might necessitate changes to your insurance coverage. Such changes may include: adding locations/properties, expanding your business, making acquisitions, changing a property entity name or the property DBA and/or purchasing equipment such as tools or vehicles.
Relating to property and casualty insurance for your company, what are your insurance carriers projecting for your increases in 2013? What are your policies/procedures that will soften the impact of increasing insurance premiums in 2013?
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Industry Knowledge, Real Estate Building Insurance.
Crag Simmons
Power Insurance & Risk Management Group
http://www.PIRMG.com
877-602-6030
