What happened: The National Multifamily Housing Council released the 2023 NMHC State of Multifamily Risk Survey. The report highlights surging insurance costs and a growing risk landscape for commercial real estate owners and managers. What the numbers say: According to the report, property insurance costs have increased by 26%, on average, in the past year. A few respondents reported an increase of 120%. Over six in 10 respondents (60.6%) were forced to increase their deductibles to maintain affordability. More than half (57%) said their insurance carriers included new policy limitations to reduce their exposure. Relevance: The skyrocketing insurance costs add challenges to commercial real estate owners and operators who have already been negatively impacted by rising interest rates, vacant offices and economic uncertainties. One major cause for the monumental rise is the increased frequency and severity of natural calamities, according to Multifamily Dive. The NMHC urged policymakers to explore ways to incentivize a stronger insurance and reinsurance market for the multifamily industry. |