Investment Property Protection Blog

Natural disasters such as floods, hurricanes, and wildfires are on the rise across the US. As a result, the total cost of property damage caused by natural catastrophes in the country rose from $39.6 billion in 2019 to almost $75 billion in 2020 – an increase of 88%. 

These stats should capture the attention of investors whose properties are vulnerable to the elements. While weather is notoriously unpredictable, you cannot simply cross your fingers and hope for the best. Obtaining an adequate insurance package has never been more vital, as it could prevent you from facing devastating losses that could threaten the integrity of your investment portfolio.

Guest Article By Nate Zielinski, Business Development Coordinator, RCN Capital

It would be logical to blame rising insurance rates on the Covid 19 crisis but the truth is that property insurance rates have been going up for the past few years even before the virus entered our lives. The crisis has created a “new normal” for many people but it is not the only thing responsible for the rise in insurance rates. Natural disasters and social unrest are also to blame. In addition to raising premiums, many insurance companies are responding by restricting some coverages and eliminating some risks that might have been covered in the past. In short, property owners will pay higher premiums to get less coverage.

Hurricane season is upon us, and this year’s storms look set to be more powerful than average. Researchers at Colorado State University have predicted 17 storms between June 1 and November 30, four of which are set to sustain winds of at least 111 miles per hour.

The COVID-19 pandemic has transformed the rental market. Before 2020, average occupancy rates for primary multifamily markets were on an upward trajectory. Due to the widespread adoption of remote working arrangements, however, secondary and tertiary rental markets experienced positive net absorption last year.