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
Smart Buildings | Dec 7, 2015
AIA Baltimore holds rowhouse redesign competition
Teams competed to provide the best social and environmental design solutions for the city’s existing rowhouse stock.
Multifamily Housing | Nov 19, 2015
Herzog & de Meuron designs curving NYC luxury apartments
The 160 Leroy building will have 49 luxury homes, along with a white concrete façade covered with large windows.
High-rise Construction | Nov 17, 2015
CTBUH awards '2015 Best Tall Building Worldwide' to Bosco Verticale
Designed by Italian architect Stefano Boeri, the building design was applauded for its “extraordinary implementation of vegetation at such scale and height."
Multifamily Housing | Nov 17, 2015
A new luxury high rise reflects a resurgent condo market in Miami Beach
GLASS is one of several residential buildings in the works in that city’s hot South of Fifth neighborhood.
Multifamily Housing | Nov 5, 2015
Architects propose residential tower in Singapore with gardens on every floor
Imagine a high-rise with lush greenery on every floor—that’s the design Ingehoven Architects and A61 propose for Marina One, a series of residential towers in Singapore.
Multifamily Housing | Nov 4, 2015
Labor City: The Qatari complex for 70,000 migrant workers opens
The project is just one of seven house complexes built by the government for the country’s approximately 260,000 labor migrants.
Architects | Oct 27, 2015
Top 10 tile trends for 2016
Supersized tile and 3D walls are among the trending tile design themes seen at Cersaie, an exhibition of ceramic tile and bathroom furnishings held in Bologna, Italy in October.
Multifamily Housing | Oct 27, 2015
Multifamily building in downtown Montreal is being built from the roof down
The method eliminates the need for scaffolding and cranes.
Modular Building | Oct 22, 2015
My Micro NY will soon be New York's first micro-apartment building
The Manhattan modular building will be completed in December and will contain apartments with low rents, but small space.
Architects | Oct 20, 2015
Four building material innovations from the Chicago Architecture Biennial
From lightweight wooden pallets to the largest lengths of CLT-slabs that can be shipped across North America
