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 byĀ 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 onĀ replacement costs with large increases in deductibles, new exclusions forĀ damages such as mold or flood endorsements, and limits on payouts. ThatĀ forces property owners to layer wind on top of other policies to reach theĀ replacement cost values required by lenders.
Related Stories
Modular Building | Mar 31, 2022
Rick Murdockās dream multifamily housing factory
Modular housing leaderĀ Rick Murdock had a vision: Why not use robotic systems to automate the production of affordable modular housing? Now that vision is a reality.
Multifamily Housing | Mar 31, 2022
Mixed-use affordable housing project aims for zero waste
The Peninsula in the Bronx, N.Y., a mixed-use affordable housing campus, just opened its first phase.
Multifamily Housing | Mar 29, 2022
Ken McCarren to succeed Craig Jones as president of MBK Rental Living
Ken McCarren to succeed Craig Jones as president of MBK Rental Living
Multifamily Housing | Mar 29, 2022
Hereās why the U.S. needs more āTODā housing
Transit-oriented developments help address the housing affordability issue that many cities and suburbs are facing.
Multifamily Housing | Mar 28, 2022
Singaporeās new Irwell Hill residences will be built around heritage rain trees
The recently unveiled design of Irwell Hill, twin 36-story residence towers, calls for the development to be situated among copious greenery including preserved heritage rain trees.
Codes and Standards | Mar 23, 2022
High office vacancies have cities rethinking downtown zoning
As record-high office vacancies persist in U.S. urban areas, cities are rethinking zoning policy.
Multifamily Housing | Mar 23, 2022
Cadence McShane's Broadway Chapter Apartments earns 2022 TEXO Distinguished Building Award
Cadence McShane Construction Company received first place in the 2022 TEXO Distinguished Building Award in the General Contractor ā Residential Multifamily 1 ($0 - $150M) category for the Broadway Chapter Apartments project.
Projects | Mar 22, 2022
Fast-growing Austin adds a $3 billion community
The nationās fastest-growing large metro area is getting even bigger, with the addition of a $3 billion, 66-acre community.
Projects | Mar 22, 2022
Austin multifamily project to feature 60 micro-housing apartments
A new 34,364 sf multifamily project, Sixth and Chicon, in Austin, Texas, will feature 60 micro-housing apartments designed for āthe urban minimalist.ā
Projects | Mar 18, 2022
Former department store transformed into 1 million sf mixed-use complex
Sibley Square, a giant mixed-use complex project that transformed a nearly derelict former department store was recently completed in Rochester, N.Y.
