Navigating Insurance on the Gulf Coast

[Ben Scarborough]

As many know, the hurricanes along the gulf coast have been nothing short of relentless over the past few years. As a result of this sudden increase in frequency of large hurricanes, it has become clear how big of a hit insurance providers are taking on. A variety of factors are suspected to have contributed to the increase in strength and frequency of the storms, but the matter of the fact is that insurance companies are in a world of hurt right now. Insurance providers need some money back and their pockets, and they need to reduce the risk they are taking on. This, as many of us know first hand, has caused insurance premiums to skyrocket.

Once something starts significantly messing with our PITI, everything can begin to feel like it is on fire. Whether you are refinancing an existing BRRRR deal or are under contract on your next short term rental, chances are that something in the PITI is going to freak you out in today's market. However, I bring good news to let you know there are ways to save money on insurance (not by switching to Geico), but by buying strategically.

See below for my suggestions for navigating insurance on the gulf coast in today's market - some that could save you several thousand dollars...

- Shop around and compare prices
- Give yourself a generous due diligence period
- Increase deductibles
- Bundle policies
- Add security system to property
- Maintain a good credit score
- Review coverage needs regularly
- Invest in homes that have double-paned windows or storm shutters
- Look into the affordability of newer homes (built to current codes) in your market of interest
- Buy a property with Fortified certification if you are buying in Alabama