flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Coastal multifamily developers, owners expect huge jump in insurance costs

Multifamily Housing

Coastal multifamily developers, owners expect huge jump in insurance costs

An executive with the largest affordable developer in Florida is bracing for 200% to 300% price spikes. 


By PETER FABRIS, CONTRIBUTING EDITOR | March 24, 2023
Photo: Luisa Frassier via Unsplash Coastal multifamily developers, owners expect huge jump in insurance costs
Photo: Luisa Frassier via Unsplash

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

| Sep 15, 2014

Ranked: Top international AEC firms [2014 Giants 300 Report]

Parsons Brinckerhoff, Gensler, and Jacobs top BD+C's rankings of U.S.-based design and construction firms with the most revenue from international projects, as reported in the 2014 Giants 300 Report.

| Sep 15, 2014

Gen-Y-focused multifamily development under way in L.A.

The new urban residential community at 1001 S. Olive Street will offer open floor plans consisting of 64 studios, 109 one bedroom units, and 28 two-bedroom units, ranging in size from approximately 500 sq ft to 1,100 sq ft. 

| Sep 9, 2014

Using Facebook to transform workplace design

As part of our ongoing studies of how building design influences human behavior in today’s social media-driven world, HOK’s workplace strategists had an idea: Leverage the power of social media to collect data about how people feel about their workplaces and the type of spaces they need to succeed.

| Sep 7, 2014

Behind the scenes of integrated project delivery — successful tools and applications

The underlying variables and tools used to manage collaboration between teams is ultimately the driving for success with IPD, writes CBRE Healthcare's Megan Donham.

| Sep 5, 2014

First Look: Zaha Hadid's Grace on Coronation towers in Australia

Zaha Hadid's latest project in Australia is a complex of three, tapered residential high-rises that have expansive grounds to provide the surrounding community unobstructed views and access to the town's waterfront.

| Sep 3, 2014

Ranked: Top local government sector AEC firms [2014 Giants 300 Report]

STV, HOK, and Turner top BD+C's rankings of the nation's largest local government design and construction firms, as reported in the 2014 Giants 300 Report.

| Sep 3, 2014

New designation launched to streamline LEED review process

The LEED Proven Provider designation is designed to minimize the need for additional work during the project review process.

| Sep 2, 2014

Ranked: Top green building sector AEC firms [2014 Giants 300 Report]

AECOM, Gensler, and Turner top BD+C's rankings of the nation's largest green design and construction firms. 

| Sep 2, 2014

Extreme conversion: 17-story industrial silo to be converted to high-rise housing

As part of Copenhagen's effort to turn an industrial seaport into a bustling neighborhood, Danish architecture firm COBE was invited to convert a grain silo into a residential tower.

| Sep 2, 2014

Melbourne's tallest residential tower will have 'optically transformative façade'

Plans for Melbourne's tallest residential tower have been released by Elenberg Fraser Architects. Using an optically transformative façade and botanical aesthetic, the project seeks to change the landscape of Australia's Victoria state. 

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021