Insurance Increase 300%?
I own a 3 building multi use ) Retail & Office building in Southern New Jersey. We recently recieved a 300% increase in our insurance.
Has anyone ever heard of this?
We did not change the property, nor has any major event happened. Is this legal?
The insurance company states the replacement costs have changed.
Any help would be appreciated.
Brian
Consider yourself lucky. After the hurricanes in florida all our properties saw insurance increases of at least 400% each. A policy that we paid $937 for pre hurricanes is now $3623 for the same policy, another went to $5508 from $1400. And those were the cheap policies
Did the rates change, or was the increase a combination of higher rates and a re-evaluation of the reconstruction costs on the properties? As NJ is one of the most regulated insurance states, I am certain the legalities of the increase are not in question, unfortunately...
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Thanks for your input.
We have owned the building for one year when the rates changed. We were down to the wire and did not want a lapse in insurance.
No claims.
Does anyone know a GOOD, legit (if there is one) insurance company?
There are certainly many legit insurance companies. Do some networking at a local REIA-type group for an Agent(Agency) that understands the issues investors face....
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You should consider a blanket-type policy (if offered) with a "higher" deductible (within reason and if it generates a fair savings)...
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