30% Insurance Cost Increase
I just received an insurance policy bid for an 11-unit brick building in Chelsea, MA. Last year's cost was $7,100...and I'm looking at $9,200 for next year. The property is fully residential, was built in 1860, and was gut rehabbed in 1983. It's not sprinklered but has fully upated systems incl. fire panel. I have the policy out for bid with a new broker as we speak, but I'd love to get a sense for what others are seeing. Anyone have access to a BOMA comp book? Any comparable policies out there?
What is your deductible?
It is still a very hard market for habitational. Many companies are leaving the market alltogether...
Deductible is unchanged from last year at $1K. No claims, either. Thankfully, have never had any.
Rule of thumb: Carry a deductible that is twice the minimum claim you would file. In other words, if you wouldn't file a $1000 claim, carry at least a $2000 deductible. In your case, on the multi-unit building, I'd guess that going to a $5000 deductible would save you enough to justify carrying it. At worst, consider a $2500.
Tim