This was necessitated by several incidents which negatively impacted the insurance industry. In mid-2001, the property insurance industry began to implement significant changes in coverage and increases in premium. This was due to an adjustment in the low cost of this type of insurance; the first mold claims; major multi-family losses due to flood, storm and fire; the stock market plummeting causing insurance investments to plummet; and 9/11. The cost of multi-family insurance increased dramatically. To obtain the same premium as the prior year, the deductible was raised to $100,000 vs $10,000.
Alpha-Barnes began the arduous task of pricing insurance and also looking at alternatives. An insurance program was developed with the involvement of very innovative insurance providers which saved the participants considerable insurance cost.
Although such creativity is no longer required in today's insurance market, Alpha-Barnes continues to offer low cost insurance to its property owners.