Insights from Real Estate Insiders Podcast with James Dwiggins, Keith Robinson, and Stephen Franke
As a real estate professional, it’s crucial to stay informed about the latest trends and developments in the industry. One area that demands our attention is the ever-increasing cost of house insurance. In a recent episode of the Real Estate Insiders Podcast, James Dwiggins and Keith Robinson delved deep into this topic with special guest Stephen Franke, Vice President and Co-founder of C1 Insurance. Here’s what we discussed and why we believe house insurance costs will continue to skyrocket:
The Changing Landscape of Insurance
Insurance, just like the real estate industry, is going through a significant transformation. With the rise in natural disasters and the impact of climate change, insurance carriers are grappling with higher risks and increased claims. This shifting landscape necessitates adjustments in how insurance is approached and priced.
Understanding the Factors
To comprehend why house insurance costs are on the rise, it’s crucial to understand the key factors involved:
The Subject and the Risk
Insurance carriers view the subject as the human factor and the risk as the house itself. Behavioral aspects and the propensity for damage play significant roles in determining insurance rates. It’s important to recognize that the risk assessment is not solely based on the individual but also on the property.
Insurability and Property Risks
Insurability is a crucial consideration, particularly in high-risk areas. Insurance carriers assess factors such as prior claims, property location, and specific risks associated with the area. Properties situated in disaster-prone regions may face higher insurance costs due to the increased likelihood of damage.
Technological Disruption and Innovation
The insurance industry is experiencing a wave of technological disruption and innovation. While digitization offers benefits, carriers have realized the importance of involving insurance agents who can assess risks accurately. Collaborating with trusted insurance advisors who have access to tools and resources can expedite the process of obtaining insurance quotes and evaluating insurability.
The Role of Real Estate Professionals
As real estate professionals, it’s essential for us to adapt to these changes and take an active role in addressing insurance concerns. Here’s how we can navigate this evolving landscape:
Early Engagement with Insurance Advisors
To avoid last-minute surprises, involve insurance advisors early in the process. When working with clients, consider insurability and potential costs alongside other property-related factors. Engaging insurance advisors in the early stages allows for a comprehensive evaluation of insurance options and helps set realistic expectations for clients.
Embrace Collaboration
The real estate and insurance industries are interconnected, and collaboration is key. Building strong partnerships with trusted insurance advisors enables us to provide holistic guidance to clients. By working together, we can help clients navigate the complexities of insurance and find solutions that meet their needs.
Stay Informed and Proactive
Insurance is no longer an afterthought. Stay informed about insurance industry trends and changes in regulations. Attend industry events, listen to real estate podcasts like Real Estate Insiders, and read relevant blogs and books to expand your knowledge. Being proactive and knowledgeable about insurance can set you apart as a valuable resource for clients.
Embracing the Future
As we navigate the future of real estate, it’s crucial to recognize that insurance costs will likely continue to rise. However, by proactively addressing insurance concerns, involving trusted insurance advisors, and staying informed, we can help our clients make informed decisions and build a profitable and sustainable business.
Remember, the real estate industry is constantly evolving, and so is insurance. By adapting to these changes, collaborating with experts, and prioritizing the best interests of our clients, we can thrive in this dynamic landscape.
Subscribe to the Real Estate Insiders Podcast to stay ahead of the game and join the conversation about real estate, insurance, and the future of our industry.
