AOA's Group Insurance

It’s all Greek to me!  A lot of underwriters are selling Apartment insurance but how do you know you are getting what’s right?  Prices are all over the map, but the question is, how do they compare?  What am I not getting?  These last two years have been rough, and we are just starting to feel how that is impacting our economy.  Construction costs have skyrocketed.  Rents are going through the roof.  How does that affect my insurance for my real estate portfolio?  Are your insured limits reflecting current rebuilding costs if there was a loss?  What about your limits for Loss of Rental Income?  Three major factors for apartment owners to be aware, increasing in insurance rates, market hardening and changes with underwriting are have an adverse effect on apartment owners nationwide and even more so in places like California.   

As an industry leader and because of our specialization in the real estate industry we are trained to zero in on glaring issues glossed over by those not in the know. 

Here are a few considerations:

Increase in Rates:  According to RiskMeter and our internal benchmarking from thousands of landlords and apartment owners, here are some of the latest updates to insurance rates the real estate industry is experiencing by line of coverage/exposure:


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Coverage / Exposure Rate Increase/Decrease
Residential & Habitational Property +20% or Higher
Catastrophic Perils +12% – 20%
General Liability +6% – 12%
Excess or Umbrella Liability +15% or higher 
Workers Compensation -2% to +3%
Directors & Officers Coverage +12% to 20% or higher
Cyber Liability +15% or higher 
Tenant Discrimination +20% or higher 
Commercial Real Estate +10% or higher 
REIT’s +8% to 20% or higher 


Market Hardening

Incredible inflation, interest rates, reinsurance rates and capacity, Catastrophic exposures considering storms and wild fires lead to tightening in underwriting guidelines and fewer players in the underwriting arena.  All current factors that require a specialist to present each risk to the marketplace with deliberate strategy, extreme care and preparation and with increasing creativity to ensure an optimal outcome from the marketplace.  

Underwriting Changes

As we continually speak with our apartment owner clients nationwide, namely California, there is a continually squeeze in several categories and one of the major pain points that continues to come up is Increasing insurance rates for apartment owners and difficulty with underwriting.  Historically, many carriers would be interested in older buildings with broad coverages and competitive rates.  With the current market conditions, this is not the case.  Because of the increase in exposures and increase in claims carriers have taken within the real estate space, carriers are much stricter with what they will accept to insure.  If they do offer coverage, we are seeing less favorable coverage options, co-insurance clauses, margin clauses, habitability exclusions and other gaps that can leave apartment owners underinsured and, in many cases, not covered for essential exposures they regularly face.  A few extremely important things all apartment owners should be aware right now with the marketplace being in the state that it is:

  1. Reconstruction Cost / Replacement Cost Limits on Policy
  2. Co-Insurance Clauses
  3. Margin Clauses
  4. Habitability Exclusions 
  5. Bed Bug Exclusions
  6. Dog Bite Exclusions 
  7. Discrimination / Wrongful Eviction Exclusions 
  8. Assault & Batter Exclusions
  9. Vacancy Policy Wording & Restrictions 
  10. Building Ordinance Limits 
  11. Water Damage Coverage & Strategy 

GOOD NEWS!  Even in this tumultuous marketplace, we have several extremely competitive options available for landlords and apartment owners!  Speak to one of our apartment insurance experts and let us demonstrate our expertise by providing you with a comprehensive review of your risk management portfolio today. With countless brokers passively renewing insurance policies today, it’s never been more important to make sure an expert reviews your policies and exposures to ensure you have no surprises that could be devastating to your portfolio.


GS Insurance Solutions is the exclusive endorsed broker for the Apartment Owners Association of California, Inc.  For more information on the full area of products and services we offer tailored to your specific needs, please call Anthony Miller or his team at 800-827-4262, email him at [email protected] or visit