Real Estate Investing with Coach Carson #379: 5 Tips to AVOID a Rental Disaster! (Landlord Insurance)
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Jan 20, 2025 In this engaging discussion, insurance expert Darren Nix, founder of Steadily, delves into the complexities of landlord insurance. He reveals insider secrets about policy types, common pitfalls, and strategic methods wealthy investors use to protect their properties. Topics include the impact of weather-related disasters on rising insurance costs, the importance of understanding deductibles, and the necessity of umbrella policies for added protection. Nix also highlights the critical role of effective communication in handling claims and maintaining solid relationships within the industry.
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Rising Insurance Costs
- Landlord insurance prices have risen sharply, exceeding typical cost increases for repairs.
- This surge is primarily due to rising hurricane and hail claims, impacting the entire insurance industry.
Lagging Insurance Prices
- Insurance price increases lag industry profits by 1-2 years, influenced by major events like hurricanes and hailstorms.
- Recent rate hikes are a consequence of past losses, but small rate cuts are anticipated as the industry returns to profitability.
Human Factor in Hail Claims
- Increased hail claims, not necessarily more hailstorms, contribute to rising insurance costs.
- This "human change" in claim behavior is influencing insurance pricing.