Do you actually know what your multifamily insurance covers and what it doesn't?
In this episode, I sit down with J.T. Lynch, Commercial Insurance Broker at Ramey King Insurance, specializing in multifamily and commercial real estate risk management. J.T. works with owners, operators, and investors nationwide to structure property, liability, and umbrella insurance programs that meet lender requirements while controlling costs. As both an insurance professional and a passive real estate investor himself, J.T. brings a practical ownership perspective that most insurance brokers simply don't have.
We break down the three core components of multifamily insurance, what lenders actually require, and the physical property red flags that can blow up your premiums or kill a deal entirely. J.T. also shares how loss history sticks to a property, not the owner, why crime scores matter more than most investors realize, and how to use insurance estimates during underwriting before you ever submit an offer.
Timestamp
00:00 Intro
04:32 The three core components of multifamily insurance
05:17 How geographic risk affects your insurance coverage and premiums
06:32 What lenders require from your insurance policy and why
09:29 Physical property red flags that impact your insurance
10:00 Roof age and why it is one of the most important factors in underwriting
11:09 Aluminum wiring and the fire risk hiding in older multifamily properties
12:02 Federal Pacific and Zinsco breaker boxes and why they matter
13:29 How loss history sticks to a property and affects your premiums
15:03 How to evaluate loss runs when buying a multifamily property
16:07 Why crime scores and high crime areas create insurance exclusions
18:38 What property improvements can lower insurance premiums
20:46 What to do when a tenant files a slip and fall claim
23:17 How to get an insurance estimate during multifamily underwriting
What We Cover
- The three main components of multifamily insurance every investor needs to understand
- How geographic risk and lender requirements shape your insurance program
- What physical property conditions to look for that could affect your coverage and premiums
- How loss history works and what it means when evaluating a deal
- Why crime scores matter and how they can affect your ability to close
- How to use insurance estimates during underwriting before submitting an offer
- What to do when a claim happens and how to be proactive about slip and fall prevention
Key Takeaways
- Property insurance, general liability and umbrella coverage are the three core components of any multifamily insurance program
- Loss history sticks to the property for five years not the owner so always request loss runs before making an offer
- Roofs older than fifteen years are valued at actual cash value not replacement cost which can cost you significantly after a claim
- Aluminum wiring in properties built between 1960 and 1982 can lead to fires and must be mitigated before most carriers will insure the property
- High crime scores can trigger exclusions for firearms and abuse that your lender will not accept
- Insurance is currently in a soft market meaning premiums and deductibles are lower right now so take advantage of it
- Getting an insurance estimate before submitting your LOI is one of the most overlooked steps in multifamily underwriting
Connect with J.T. Lynch
- Website: https://rameyking.com
- LinkedIn: https://www.linkedin.com/in/jtlynchrameyking/
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