Member Section

Insurance premiums increase more than 20%, multifamily worst hit

Posted on November 18, 2019 in Member Section by Zoe Hughes

Almost two-thirds of real estate investment managers have seen property insurance premiums increase by more than 15% year-over-year, according to a NAREIM member poll.

One-third of respondents said their insurance premiums had risen by more than 20%, while another 29% said their premiums were up year-over-year by between 15% and 20%. Multifamily has been the property type most affected with insurers citing individual and industry loss experiences from recent extreme weather events, as well as declining capacity in the market.

As a result, investment managers are often increasing – sometimes doubling – deductibles, as well implementing risk control practices such as risk engineering and evaluation reports and increasing property values, or limiting the insurable value of multifamily assets in an overall portfolio.

The majority of managers have not considered self-insurance, although for those that have strategies include:

To read the full survey responses, click here: NAREIM Member Survey_Insurance premiums and self insurance_final