How CRE Operators Can Lower Insurance Costs and Protect NOI

Insurance is often treated like a routine expense in commercial real estate—until it starts disrupting deals and crushing NOI. In this episode of the Major League Real Estate Podcast, Nathan Sosa and Matt Hamilton sit down with Skylar of ATW Advisors to discuss how syndicators and commercial real estate operators can approach insurance more strategically. They cover why insurance costs have risen so sharply, how operators can avoid last-minute surprises, and what role insurance should play in underwriting and portfolio management.

Why Insurance Matters More Than Ever

Skylar explains that for years, insurance was fairly predictable. Owners could often budget for small annual increases and move on. That changed during the recent hard market cycle, when many operators faced major premium hikes and shrinking carrier capacity. In some cases, insurance even became a closing issue. What was once a background expense became one of the fastest-growing costs in commercial real estate.

What ATW Advisors Does

After 17 years as a commercial insurance broker, Skylar launched ATW Advisors to serve as an owner’s representative for commercial real estate clients. Rather than replacing brokers automatically, ATW acts as a bridge between the client and broker—helping review policies, benchmark pricing, evaluate coverage, organize renewals, and build more proactive insurance strategies.

Why Sophisticated Operators Plan Ahead

One of the biggest themes in the conversation is that strong operators think about insurance early. They know their underwriters, understand their options if a carrier exits, and stay ahead of market shifts. Less-prepared operators often wait until renewal time, when their flexibility is limited. Skylar notes that getting organized now is one of the best ways to prepare for the next hard market.

Asset Class and Geography Drive Risk

Insurance challenges vary widely depending on what you own and where it is located. Multifamily has been especially difficult in recent years, particularly on the liability side. Geography matters too. Coastal Florida, coastal Texas, and California wildfire zones have all created major insurance challenges, and those risks can shift quickly with storms, fires, or changing maps.

What’s Driving Higher Premiums

Skylar points to several factors behind recent premium increases, including inflation, labor shortages, supply chain issues, and rising replacement costs. Even if rates stayed flat, higher rebuild costs pushed premiums up. On the liability side, U.S. insurance remains tough due to legal risk, crime exposure, and increasingly detailed underwriting data.

Why Crime Scores Matter

One practical issue operators often miss is crime scoring. Underwriters now use highly specific data, and a single property can affect pricing across an entire portfolio. That makes early diligence critical. Some operators are responding with stronger security measures like cameras, license plate readers, and other monitoring tools to help mitigate risk.

How ATW Helps Operators Work With Brokers

Skylar emphasizes that not all brokers are the problem, and many do a great job. But brokers have multiple interests to balance, while ATW represents only the owner. That means helping clients ask better questions, benchmark renewals, and negotiate more strategically. In one example, a client who was initially presented with a modest renewal decrease ultimately achieved a far larger reduction after ATW got involved.

Final Thoughts

Insurance is no longer something operators can afford to treat as an afterthought. It affects underwriting, lender compliance, deal execution, and long-term profitability. For syndicators and fund managers, better insurance planning can be one of the most overlooked ways to protect NOI and improve performance.

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Disclaimer: This podcast summary was generated from the transcript and may contain some errors or miss key points from the audio recording. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.