The increasing cost of insurance is difficult to pass on to the tenants because of the present economy.  So an alternative plan must be used to protect the property and reduce present expenses.

The insurance agents do not normally understand the intricacies of property ownership and cash flows.  Their focus is on sales and selling what the insurance companies want to sell--high premium and reduced protection--not on what the owner’s needs are.

Our view is directed towards the owner's prospective by designing plans that are effective for them.  We work with insurance agencies to help them implement our plans that are effective, efficient, and economical for the owners.  We negotiate rates, pricing, and coverages with the insurance companies.

An example of this occurred when our client’s policies came up for renewal September 22, 2001.  The insurance companies wanted $950,000 to renew.  We made the necessary changes and the premium was reduced to $750,000.  This brought the cost per apartment unit down to $118.

This September 22, 2002 the same policies came up for renewal.  The insurance companies offered to renew the policies for $1,625,000.  We started negotiations with the companies seven days before the renewal date.  After much discussion and bargaining the cost was reduced to $1,157,000.  This resulted is a savings $468,000 from the original offer, keeping the cost per apartment unit down to $178.

How much per apartment unit is your insurance costing you?  If your cost is over $178 per apartment unit click here