2021 is around the corner and insurance companies are finalizing their underwriting plans for next year. What will this mean for owners of apartment buildings and rental units in Northeast Ohio? (read more)

Be prepared for insurers to ramp up their inspections to ensure they are charging the proper rate for the exposure. Proper valuation of frame properties has become a big concern for many insurance companies. Data show that reported values are often less than those needed to rebuild the apartment buildings. Total losses have become more common with frame construction for a multitude of reasons. As a result, companies are going to more carefully review losses and ensure the properties were properly valued and no longer ignore valuation clauses and co-insurance.

On the Liability side, losses have continued to mount. Insurance companies are looking at double-digit rate increases in this line. The excess/umbrella market is seeing drastic changes with many insurers increasing rates and not offering capacity for the same risk as in the past. This will require building owners to work with their Trusted Choice agents to create a multi-tiered program to address their liability exposures.

Newer liability exposures that have been starting to pop up around the country relate to habitability (remember our blog from June of this year on bed-bugs). Habitability claims address the livability of the units you own. These claims do not suggest there was bodily injury or property damage to the tenant, the more common triggers for a liability claim. But the frequency of these claims needs to be addressed in creating adequate rates.

Newer underwriting tools being used to assess the property and liability risk of a location are crime statistics provided by various vendors. These crime scores may trigger an underwriter to exclude theft from a quote creating a large self-insured exposure for the property owner. On the liability side, crime scores may elicit a rejection from the underwriter.

As the market place changes for landlord’s insurance, the expertise of your Independent Trusted Choice insurance agents at Richey Barrett becomes ever more important. So before you renew your policy contact me for a no-obligation risk review and quote.