The Harvard University Joint Center for Housing Studies (JCHS) hosted a webinar featuring research on rising insurance costs for multifamily affordable housing and new limited equity cooperatives.
- FEMA National Risk Index shows 18 million rental units in the US are under threat from environmental hazards.
- Data from Marsh McLennan indicates that US commercial property insurance rates began declining in Q3 2024 and remained lower through Q2 2025, suggesting some stabilization in the market after several years of sharp increases.
- Key Insights for Multifamily Building Insurance
- Developers are increasingly designing around risk — incorporating fire risk into site planning, diversifying geographically, and investing in resilient materials upfront.
- Risk mitigation improvements matter: stove-top fire suppression devices, leak detection systems, bollards, and documented maintenance programs can help reduce premiums and improve underwriting outcomes.
- Maintain close relationships with insurance brokers to ensure accurate underwriting and competitive pricing.
- Consider self-insurance strategies, including captives, deductible reimbursement policies (DRPs), and higher deductible structures.
- Advocate for policy solutions, such as state-backed reinsurance programs or state-run insurance pools, that help fund risk mitigation and property resilience improvements.
