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.
Truck Driver in Fatal Crash Repeatedly Failed Driving Tests, Florida AG’s Office Says 
Reinsurers Hold Bulk of Jamaica’s Property Exposures From Hurricane Melissa: Reports 
Security First the Latest in Florida to Announce Home Insurance Rate Cut 
The Future of the Agency in a World of AI From This Issue
