The cost of apartment insurance varies greatly in today’s marketplace. This is largely due to the fact that the inherent risk for property owners varies locally, regionally and nationally. So, the quality, scope and breadth of coverage is equally as diverse. The risk our San Francisco property owners face today such as wrongful eviction, earthquakes, and ordinance issues are quite a bit different than our midwest, central and east coast property owners who face hurricanes, tornadoes, hail, floods and landslides.
When evaluating the cost of your apartment insurance program, you should factor in your own risk tolerance and how much coverage the lenders require. In general, the larger investment property owners look for a “low cost” strategy in order to manage their insurance expenses and keep their premiums low. In the event of a shortfall at the time of loss, the reduced coverage and claim payments do not affect their business. Conversely, property owners who could not afford an additional out of pocket expense require a “best coverage” strategy to provide full coverage to restore the property.
At Commercial Coverage Insurance Agency, we evaluate both strategies – low cost versus best coverage – as a starting point for our analysis of a client’s risk tolerance. The ideal policy is the best coverage for the lowest price. However, not all policies are equal and the differences can be substantial if you are not aware of the specific coverages, endorsements and exclusion per quote and carrier. Comparing cost alone, without considering all the other factors, will probably result in a bad decision.
At Commercial Coverage, we have developed the SureFit Rating model to help us simultaneously evaluate and compare the low cost and best coverage programs. Based on a brief phone call, within minutes, we can discuss various pricing and coverage strategies to match your risk tolerance and insurance budget. Many times, the best coverage strategy can cost the same as your low cost approach.
In summary, the cost of your insurance is based on your personal risk tolerance. Without an overview of how much or little coverage you have and solely purchasing on price, you are putting yourself and your investors at risk. Apartment insurance programs vary greatly, the goal is to pay the least amount in premiums while getting the most coverage you need. By utilizing our SureFit Rating system, we are able to uncover the “Best Coverage” strategy for the “Low Cost” price. At Commercial Coverage, our specialty is finding the right balance between price and coverage for your Apartment Insurance. We look forward to working with you now, and in the future as your insurance requirements change.