Although property insurance is only 7% of total expenses, it continues to take a whack at apartment operations with its share of overall costs is growing.
Insurance costs spiked most in the Southeast and other areas that suffered from weather-related damage. Obtaining insurance in areas with severe hurricanes, floods, and fires is becoming more difficult.
Property insurance costs per unit rose an average of 27.7% in the year ending January 2024 and have risen 129% nationally since 2018 to an average of $636 per unit, according to a recent survey by Yardi Matrix based on more than 20,000 properties using its software.
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