BiggerPockets Daily
Insurance Costs Keep Rising—Here's How You Can Address Them
Jan 29, 2025
Insurance premiums are skyrocketing, leaving landlords reeling. Some are facing costs that have increased sixfold or losing coverage entirely. The discussion dives into the reasons behind these rising costs, from natural disasters to inflation. Practical strategies for property owners include bundling policies and negotiating with managers to protect investments. The challenge is not just for individual investors but also for maintaining affordable housing, which is under threat due to these soaring expenses.
16:43
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Insurance premiums for landlords are surging due to a combination of natural disasters, inflation, and labor shortages, challenging profitability.
- Landlords can mitigate rising insurance costs by bundling policies, negotiating fees, and exploring alternative markets for better rates.
Deep dives
Rising Insurance Costs and Their Causes
Insurance costs for landlords and investors are significantly increasing, impacting their ability to maintain properties amidst rising holding costs. Factors contributing to these skyrocketing premiums include natural disaster risks, inflation, labor shortages, and escalating building expenses. In certain areas, such as Florida and California, insurers have withdrawn from the market, leaving property owners without coverage options and forcing them to face high prices or potentially no coverage at all. This trend presents a serious challenge, as landlords must navigate the daunting decision of passing costs onto tenants or absorbing the financial strain themselves.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
