What Every Multifamily Investor Needs to Know About Multifamily Insurance
Do you actually know what your multifamily insurance covers and what it doesn't?
In this episode, I sit down with J.T. Lynch, Commercial Insurance Broker at Ramey King Insurance, specializing in multifamily and commercial real estate risk management. J.T. works with owners, operators, and investors nationwide to structure property, liability, and umbrella insurance programs that meet lender requirements while controlling costs. As both an insurance professional and a passive real estate investor himself, J.T. brings a practical ownership perspective that most insurance brokers simply don't have.
We break down the three core components of multifamily insurance, what lenders actually require, and the physical property red flags that can blow up your premiums or kill a deal entirely. J.T. also shares how loss history sticks to a property, not the owner, why crime scores matter more than most investors realize, and how to use insurance estimates during underwriting before you ever submit an offer.
What We Cover
The three main components of multifamily insurance every investor needs to understand
How geographic risk and lender requirements shape your insurance program
What physical property conditions to look for that could affect your coverage and premiums
How loss history works and what it means when evaluating a deal
Why crime scores matter and how they can affect your ability to close
How to use insurance estimates during underwriting before submitting an offer
What to do when a claim happens and how to be proactive about slip and fall prevention
Key Takeaways
Property insurance, general liability and umbrella coverage are the three core components of any multifamily insurance program
Loss history sticks to the property for five years not the owner so always request loss runs before making an offer
Roofs older than fifteen years are valued at actual cash value not replacement cost which can cost you significantly after a claim
Aluminum wiring in properties built between 1960 and 1982 can lead to fires and must be mitigated before most carriers will insure the property
High crime scores can trigger exclusions for firearms and abuse that your lender will not accept
Insurance is currently in a soft market meaning premiums and deductibles are lower right now so take advantage of it
Getting an insurance estimate before submitting your LOI is one of the most overlooked steps in multifamily underwriting
Connect with J.T. Lynch
Website: https://rameyking.com
LinkedIn: https://www.linkedin.com/in/jtlynchrameyking/
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