Rental housing owners, operators and developers have been hit hard by rapidly rising insurance costs, the National Multifamily Housing Council (NMHC) reported on Monday. According to NMHC’s 2023 State of Multifamily Risk Survey and Report, respondents experienced an average 26% increase in insurance costs over the past year.
Sharon Wilson Géno, President of NMHC commented: “These findings and risk mitigation guidance are especially important for multifamily businesses and their residents at this time. The combination of high interest rates with increasing expenses along with a growing need for affordable housing emphasizes how critical it is that both providers and policymakers understand the challenges posed by insurance markets.”
Moreover, NMHC warned that skyrocketing premiums could put multifamily firms’ ability to attract investments needed to address national housing affordability issues in jeopardy. As such they urged lawmakers to incentivize a more robust market for sector-specific reinsurance products as well as traditional forms of coverage.
