Rhodes Risk Advisors has extensive experience insuring multifamily housing. Our expertise ranges from insuring single properties to portfolios of over 25,000 units. Our in-depth knowledge of the real estate industry allows us to proactively seek insurance programs on behalf of multifamily owners and managers, as well as address any future industry specific risk management issues. Since inception in March of 2013, Rhodes has insured over 50,000 apartment units at an insurable value of over $3 Billion.
Rhodes has created a comprehensive risk management and insurance program for multifamily owners. This includes all of the traditional coverages for a property owner or manager, as well as specialized coverages that can protect the owner or manager from exposures that are seldom contemplated. There is also the ability for an owner or manager to retain capital or generate revenue through our unique captive opportunities.
• Excess Liability (Umbrella)
• Directors & Officers
• Errors & Omissions
• Builders Risk
• Renters Insurance (captive)
• Workers Compensation (captive)
Master Policy Creation
Rhodes Risk Advisors has the ability to aid clients in generating master policies that allow them to use the leverage of premium volume to reduce the overall cost of insurance. Through the pooling of assets, Rhodes can use the spread of risk and risk modeling to reduce the overall exposure to the insurance carrier resulting in a cost savings for the multifamily owner/manager. This typically equates to a reduction in annual premiums of over 15%-25%.
Coastal Property Insurance Program for Multifamily
Rhodes has a proprietary insurance program to protect coastal assets. Created over the last several years during a period of depressed pricing for coastal assets, Rhodes has developed a program that provides discounted pricing for multifamily properties in coastal regions. This program is extremely effective from the Texas coast through Florida and up the Atlantic coast through the Mid-Atlantic states. Premiums in these regions are typically 20%-30% below market pricing.
Renters Insurance Captive
Rhodes Risk Advisors has created a unique platform for multifamily owners to use a captive to provide required legal liability insurance for their tenants. Designed for owners of over 6,000 units, a captive program can generate significant ancillary income as historical loss ratios for tenant legal liability are 10% – 20%. This allows the owner to participate in the underwriting profits that are typically received by insurance companies. There are also significant tax advantages available by using a captive as an insurance vehicle.
Workers Compensation Captive
Through the use of a captive, multifamily property managers can utilize high deductibles as a method to share in the profits when the company’s workers compensation program preforms with a low loss ratio. If implemented properly, this can be a significant profit center for management companies that pro-actively address workplace safety.
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