By Micah Mattox
Welcome back to Premium to Principal! In the first edition of the year, we gathered data and made projections on the Multifamily Insurance Markets and what this year would hold, and we wanted to provide a mid year update to track those projections and give a few other meaningful updates as to where the markets are headed for all of the Multifamily Owners out there!
Before are a great number of details outlining the specifics of what we are seeing, but to get straight to the point – the insurance markets have improved considerably for Multifamily properties across the nation in 2024, which is very welcome news.
Market Overview
Softening Trends
Over the past few months, we’ve seen rate decreases of 1% – 35% for around 85% of accounts. The balance of power has shifted from carriers to owners/consumers as capacity and competition grow. This has evolved into numerous trends, such as the ability to reform some master policies, and increased viability that was not present for these master policies over the past few years.
Key Factors
- Competition: Increased supply and competition have driven down rates, particularly for larger, more complex assets/portfolios.
- Innovative Placements: Combining or reorganizing policy structures has yielded significant savings.
- Increased Participation: Carriers are engaging in primary/buffer/excess layers, reducing the need for certain expiring layers.
- Stabilization in construction and reconstruction costs.
Challenges
Rate Increases
- For the remaining 15% of ac…
For the remainder of the article and to learn more from Micah, Click here.
The Commercial Real Estate Alpha Site 
Leave a comment