Over 93% of housing providers said they are taking action to mitigate increased insurance costs, according to a new report by the National Leased Housing Association (NLHA).
The three most common steps are increasing insurance deductibles, decreasing operating expenses, and increasing rent.
Conducted by ndp analytics in August and September, the survey drew 418 responses from housing providers across the country who operate 2.7 million units, including 1.7 million affordable units.
Affordable housing providers are experiencing higher premiums across multiple lines of insurance. For 2022-23 policy renewals, nearly 1 in every 3 policies had rate increases of 25% or more (21% of policies increased by over 30%, and 9% increased between 25% and 30%), according to the report.
“The impact of rising insurance premiums coupled with the ability to obtain necessary coverage has already begun to impact affordable housing development and preservation efforts,” said Denise B. Muha, NLHA executive director. “Further, existing property owners are faced with difficult choices as they struggle with operating deficits related to mounting insurance costs. These cost increases are not sustainable.”
Read More
