“There are no secrets to success. It is the result of preparation, hard work and learning from failure.” Colin Powell

A few days ago, I received a certified later the insurance company of an apartment building I own. I was given a “Notice of Nonrenewal of Insurance.” My insurance company was cancelling me. I had never had a claim, had paid my premiums on time and I maintained the building, so what could be wrong?

COMPANIES LEAVING CALIFORNIA California is a state with more than average wildfire risks. There are others like Colorado and Louisiana as well. Some companies, such as Allstate and State Farm have decided to no longer write policies here. As insurance companies, they are looking at risk so they have decided to limit the risk by not insuring our properties. They often look at things like the age of the building, which is something we have no control over.

GOVERNMENT ISSUES Our insurance commissioner has put forth some new regulations requiring insurers to give discounts to customers who follow new standards, such as installing fire retardant roofs. This would seem like a win-win for building owners and insurers- safer roofs equal less fires, but apparently not. Again, they are looking at bottom line math, and these discounts would reduce theirs.

WHAT TO DO I had a client a few years ago who “shopped” the insurance on all of his buildings every year with a few different companies. He always seemed to have better insurance rates than other building owners with similar properties. It only took a few phone calls, and he would make his decision. I think it is important to have a number of insurance companies and brokers to work with. I like working with brokers, because they are looking at many different companies and they are also aware of changes in policy and pricing before the general public.

START EARLY. It is good to know your renewal dates and start to get quotes early if you can. Currently, with a lot of companies not renewing, agents are busy. You may find a great company and a great rate by making a few extra calls.

” I’ve learned two things. Never believe in can’t. And be good to people and people will be good to you.” Dick Vitale

What we at PRS PROPERTIES CAN DO. We can recommend insurance companies and brokers who we have worked with. We can supply you with rent and sale comparables in the area of your property. Then you will know what the true value of your rental unit should be, so that you can get it rented right away. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.