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.
After Complaint, GEICO Agrees to Modify Cancellation Process That Uses AI 
AIG’s Turnaround Under Zaffino Sets Stage for New Leadership 
Anthropic Plans Wide Release of Mythos-Level AI Models in Weeks 
Insurance Mogul Lindberg Gets 12 Years for $2 Billion Fraud From This Issue
