Those with multiple commercial real estate properties should be benchmarketing their portfolios every year and in some cases there can be opportunities the provide portfolio insurance solutions which take a holistic look and approach to ensuring the best coverage for your unique set of properties from a variety of providers. The following are different ways through which we have helped clients save money through a portfolio insurance approach:
- In some cases like buildings in certain geographies and risk profiles can be grouped together and the buildings may be grouped into a common insurance policy which spreads out the risk for the insurer and yourself so your overall rate is lower and your NOI on each building is not effectively higher.
- Many times you may have acquired a cash flowing CRE building that had reasonable insurance on it, and your skills set and value-add may be a rehab of that property or perhaps simply moving on to find the next deal while you keep the operations of the building stable. Many times this happens and the momentum of business overall may have prevented you from properly benchmarking a few of your commercial buildings to make sure you are not under or over insured, or overpaying while also being under-protected.
- In cases where you have a large CRE portfolio, you may be able to create a captive insurance solution or custom design a solution with a large carrier who is happy to earn your business through providing more value per dollar spent on coverage.
- We have seen especially with portfolios of apartment buildings that there is typically 2-3 different ways to be saving that typically are missed by large owners of multifamily assets, doing a portfolio insurance review and benchmarking is quick and can ensure you have serve yourself or your LP investors by having the right coverage in place.
Portfolio benchmarking is on the rise with family offices, institutional real estate investors, REITs and private investors who have more than 3 properties or more under management. The driving down of cap rates creates further demand to find new sources of growing NOI and due to the fact that benchmarking your portfolio of assets does not cost anything, it is a potential NOI booster with no downside in exploring. If you would like to engage with our 20 person team or learn more please email us at Benchmark@CommercialrealEstateInsurance.com or call (305) 333-1155.