Landlord insurance premium 80% high

[Mak K.]

Hi

I had landlord insurance since two years with Travellers and was paying $1400 per year. All of sudden the new rates are $2000/year.

are you seeing the same rate hikes?  That’s a huge bump.

[Cameron Moore]

Unfortunately, rates are climbing with inflation. Property and Casualty insurance is rated on the law of masses. Even if you have not had a claim, houses around you definitely have and carriers will rate for that. Not to mention the obvious surge of material prices over the last 2 years. The best option you have is to hire an insurance broker that can continue to shop the market before each renewal and grab the carrier that is rating the cheapest in your given area at that time. Carriers fluctuate annually in each zip code. Here is an example: Carrier A has not wanted much DFW business due to hail storms so they priced themselves out of DFW for 2 years. Well Carrier B did want that business until they paid out almost 25 Million in claims from 2018 to 2020. Carrier B will then price themselves out of that area to protect Loss Ratio and thus Carrier A is now competetive again and will begin to slowly accept business in that area because they havent had losses there in 3-4 years.