How to Overcome Your High Crime Score and Win Better Insurance Rates

4-minute read

If you own a multifamily property in an area with high crime, you probably know how expensive insurance can be. Insurers use ZIP codes to assess risk, meaning properties in higher-crime ZIP codes typically face higher insurance costs and less coverage options. But if your neighborhood is improving, you might have a way to bring down those costs. By showing insurers that the area is getting safer, if new developments are planned or recently built you could potentially get better insurance terms. Not all properties in a zip code should receive the same crime score is our view and some underwriters agree. Here’s how working with an insurance broker that specializes in multifamily insurance can help you lower your crime score.

1. Show Proof of Neighborhood Improvements

Insurers might lower your rates if they see that your neighborhood is becoming safer. With your broker’s help, gather proof of nearby improvements, like:

·         Local Development Projects: Point out new streetlights, parks, or bus routes that make the area safer.

·         New Businesses or Renovations: Show that more businesses or homes are opening or being renovated nearby.

·         Community Safety Programs: Mention any neighborhood watch programs or police patrols that have started in the area.

2. Use Data on Crime Rates

It’s helpful to show insurers that crime in your neighborhood is going down. Work with your broker to collect:

·         Yearly Crime Data: Look for yearly trends showing a drop in crime, especially for vandalism and break-ins.

·         Crime Rates Near Your Property: Focus on any recent drop in crime right around your property. If crime has gone down nearby, insurers might consider your property less risky.

3. Highlight Security Improvements on Your Property

Your property’s own security measures matter too. Make sure your broker can explain upgrades like:

·         Lighting and Surveillance Cameras: Good lighting and cameras can help deter crime.

·         Secure Entrances and Guards: If you’ve added controlled entrances or hired security, share these details.

·         Tenant Safety Programs: If you host tenant safety events or are involved in neighborhood watch programs, these show that your property is proactive about security.

4. Build Connections with Local Groups

Being active in the community shows insurers that your property is part of a larger effort to improve the neighborhood. Some ways to do this include:

·         Working with Local Police: Share any partnerships with local law enforcement or patrols.

·         Supporting Community Projects: Mention any involvement in community projects like neighborhood cleanups or local events.

5. Emphasize Financial and Social Benefits of Revitalization

If improvements have brought better tenants or higher rents, these changes make your property seem more stable. Work with your broker to highlight:

·         Tenant Stability: Show that tenants are staying longer and that payments are more reliable.

·         Increased Property Value: If your property value has gone up, this indicates that the area is getting better and safer.

6. Ask for a Policy Review

Once you’ve gathered all your proof, ask your broker to set up a policy review with the insurer. During this review:

·         Share Security Improvements: Present your findings about the area’s improvements and your own security measures.

·         Negotiate for Better Terms: With all your information in hand, negotiate for lower premiums, higher coverage limits, or lower deductibles.

By showing how the area around your property is getting safer, you can help convince insurers that your property is less risky. With the right approach, you and your broker can work together to secure more favorable insurance terms.

The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the U.S. For more information, visit our website or call 877-440-3304.