Texas Insurance Crisis! How do you respond?

[Connor Stark]

Hi BP Community,

It's been a minute! I have been working diligently on building up my real estate business. My partners and I went full cycle on a 27-unit in Phoenix, exchanged into a 92-unit in San Antonio. We are approaching the completion of the remodel process. Unfortunately, we are one of those groups that will be searching for a refi option in this current climate as our bridge loan rate has doubled. 

What I want to bring up today is in regards to the insurance. I want to know if any investor in Texas has been successful in finding attractive insurance premiums. Currently we had to bite the bullet and pay a premium that's astronomical, I'm talking $1,100/unit. Originally we purchased the property with a policy that was about $900/unit (still bad) - we had to switch due to us changing property mangers while being under their umbrella policy. The reason the premium went up after that is because the occupancy was lower since we were remodeling. 

We we stand today is that our occupancy is trending back up and we've done about $1.8mm in upgrades. We were thinking we'd now be able to find more competitive pricing on insurance. The insurance broker has yet to find an option for us. I'd be grateful for any guidance here as to different avenues we can take to try to minimize this expense.

A couple other items that may be important:

- The property is 60s Vintage 

-The electrical panels and wiring has all been upgraded

- C Neighborhood 

Look forward to hearing from some of you!

Connor