How Brokers Can Help Investors Tackle Rising Insurance Costs

Let's discuss something that has been giving real estate investors insomnia—skyrocketing insurance rates. If your clients are experiencing the pinch, they are not alone. Rates are going up across the board, and understandably so. Here's the bright side: as their trusted broker, you can steer them through these difficult times.

Why Are Insurance Costs Going Up?

First, let's break down why premiums are increasing. In the view of John Watt, ARM Program Manager with Unitas Financial Services, several key drivers are behind the trend:

1. More Claims, More Problems – With remote work still prevalent, tenants are spending more time at home. That means more wear and tear, higher risk of fires, and increased liability claims.
2. Construction Costs Are Through the Roof – Repairing damage isn’t just expensive—it’s taking longer, too. Delays mean higher costs for insurers, and those costs get passed down.

How Brokers Can Help Investors Save on Insurance

You're not merely a loan originator—you're a problem-solver. Here's how you can lead your clients to reduce their insurance costs while maintaining their properties secure and profitable.

1. Rethink Deductibles

A low deductible may look like a safety net, but it can be an overpayment. Recommend investigating higher deductibles—this can translate into huge premium savings.

2. Prevent Claims Before They Happen

Insurance is not a maintenance policy. The less they claim, the better the rates. Here's how investors can get ahead:

• Regular Safety Checks – Quarterly inspections catch hazards (loose railings, uneven walkways) before they turn into lawsuits.
• Tenant Education – Most fires start in kitchens or from faulty wiring. A simple tenant guide on fire safety (like using timers for stoves) can prevent disasters.
• No Space Heaters! – These are fire-starters. If a tenant complains about cold units, remind owners to service HVAC systems instead.

3. Document Everything

When an incident happens, quick action can make or break a claim. Advise clients to:

• File an immediate incident report with witness statements.
• Take photos right away.
• Report claims fast to avoid coverage delays.

4. Show Insurers You’re Low-Risk

Carriers reward investors who keep losses in check. If your client's loss-to-premium ratio remains below 40%, they'll secure improved rates. That is, by keeping small claims from happening, coverage will be available for the big ones.

Why This Matters for Brokers

Your clients rely on you for more than financing—they need solutions. By arming them with these strategies, you:

• Strengthen relationships – Show you’re invested in their long-term success.
• Reduce loan risks – Well-insured properties mean fewer surprises at renewal.
• Stand out from competitors – Offer expertise that goes beyond rates and terms.

The Bottom Line

Insurance costs won’t drop overnight, but with the right approach, your clients can control expenses and protect their investments. And when they’re ready to expand their portfolio, RCN Capital has the fast, flexible financing they need—with broker-friendly referral programs that help you grow your business.

Need a lending partner who gets it? Let’s talk.