One of the nation’s leading multifamily companies owned a large apartment complex with 29 buildings, where the NFIP flood insurance premiums were $222,434 for 29 flood insurance policies. The high cost of flood insurance resulted in the property operating with a negative cash flow for several years, which substantially decreased the value of the property. The client desperately sought a solution that would decrease its flood insurance costs while allowing it to maintain the same coverage in order to satisfy its lender’s flood insurance requirement.
We used our research-driven underwriting process to procure data that enabled us to re-rate the flood policies using an alternative rate structure available through the NFIP. As a result, our Premium Reduction Service captured a large insurance refund, delivered substantial future savings, and increased property values.
- Reduced annual flood premiums by $166,825 (75%) while maintaining the same exact coverage.
- Increased property value by $2.4 million by capitalizing the annual savings at a 7% capitalization rate.
- Procured a $295,280 insurance refund.
Contact us today to learn how we can help you increase property values.