Multifamily developers in coastal areas are expecting big increases in insurance costs this year, according to a report by Yardi Matrix.
In Texas and Florida, where Hurricane Ian caused $50 billion in damage last year, insurance costs are nearly 50% higher than in 2022. Some property owners could face far higher increases, though.
An executive with the largest affordable developer in Florida is bracing for 200% to 300% price spikes, according to a report by Multifamily Dive. Such great leaps in insurance costs threaten new development and property sales, Yardi Matrix says.
Yardi Matrix noted that increases in construction costs from inflation, labor, and supply chain issues along with the growth in property values are driving higher insurance costs.
Yardi Matrix added: Not only are costs increasing but insurers are covering less wind limit on replacement costs with large increases in deductibles, new exclusions for damages such as mold or flood endorsements, and limits on payouts. That forces property owners to layer wind on top of other policies to reach the replacement cost values required by lenders.
Related Stories
| Dec 28, 2014
AIA course: Enhancing interior comfort while improving overall building efficacy
Providing more comfortable conditions to building occupants has become a top priority in today’s interior designs. This course is worth 1.0 AIA LU/HSW.
| Dec 28, 2014
6 trends steering today's college residence halls
University students want more in a residence hall than just a place to sleep. They want a space that reflects their style of living and learning.
| Dec 22, 2014
Studio Gang to design Chicago’s third-tallest skyscraper
The first U.S. real-estate investment by The Wanda Group, owned by China’s richest man, will be an 88-story, 1,148-ft-tall mixed-use tower designed by Jeanne Gang.
| Dec 17, 2014
ULI report looks at growing appeal of micro unit apartments
New research from the Urban Land Institute suggests that micro units have staying power as a housing type that appeals to urban dwellers in high-cost markets who are willing to trade space for improved affordability and proximity to downtown neighborhoods.
| Dec 15, 2014
SHoP Architects plans to turn NY's Seaport District into pedestrianized, mixed-use area
The scheme includes a proposed 500-foot luxury residential tower that would jut out into the harbor, extending the Manhattan grid out into the waterfront.
Sponsored | | Dec 3, 2014
Modular Space Showcase: Bringing work-life balance to energy workers in the Bakken region
To meet the demands of the booming energy business, Williston needs to provide homes, recreation centers, restaurants, hotels, and other support facilities for the tidal wave of energy workers relocating to the Bakken Shale area. SPONSORED CONTENT
| Dec 2, 2014
First existing multifamily buildings to earn Energy Star certification unveiled
River City in Chicago is one of 17 existing multifamily properties to earn Energy Star certification, which became available to this sector on Sept. 16 via a scoring system for multifamily properties that Energy Star and Fannie Mae had been developing for three years.
| Dec 2, 2014
SPARK designs urban farming housing for Singapore’s elderly population
The proposal blends affordable retirement housing with urban farming by integrating vertical aquaponic farming and rooftop soil planting into multi-unit housing for seniors.
| Nov 24, 2014
Adrian Smith + Gordon Gill-designed crystalline tower breaks ground in southwestern China
Fitted with an LED façade, the 468-meter Greenland Tower Chengdu will act as a light sculpture for the city of Chengdu.
| Nov 24, 2014
Must see: Plans released for underwater city that could house 5,000 people
The design centers around a floating, 500-meter-wide sphere linked to a resource center on the ocean floor via a 15-kilometer, helix-shaped path.