The recent upticks in the frequency and severity of weather events has affected insurance premiums for rental properties. According to S&P Global Ratings, insurance is an increasing percentage of total expenses for rental properties and the trend is expected to persist.
The weighted average for property insurance was about $590.30 in 2022, compared with about $473.60 the year before and about $386.90 in 2020.
S&P Global Ratings analyzed 2020-2022 expense trends on 60 loans on U.S. affordable housing properties receiving low-income housing tax credits. The properties contain over 6,500 units.
“We expect property and casualty insurance premiums for commercial properties, including multifamily, will keep rising through 2023,” S&P Global Ratings said.
Properties with the largest increases in insurance expenses are located in the following markets:
Topics Trends
Was this article valuable?
Here are more articles you may enjoy.
Carnival Cruise Passenger Served 14 Shots Awarded $300,000 After Fall Down Stairs 
Viewpoint: Why Brokers Have Little to Fear and Everything to Gain From AI 
How Niche Insurance Shielded Bad Bunny From Bad Weather 
Toilet Paper Warehouse in California Destroyed by Fire; Employee Arrested From This Issue
