The real estate market has become increasingly competitive in recent years. As a result, home insurance premiums are on the rise. This can be especially troubling for individuals seeking insurance for multifamily dwellings in New York City that fit their budget. Muller Insurance is an independent insurance agency with over 100 years of experience serving clients in New York, New Jersey, and other states. Here, we explore factors causing the high premiums for multifamily dwelling insurance and what you can do about it.
Factors Contributing to Multifamily Property Insurance Rates
Premiums for homeowners’ insurance have risen within the last couple of years. That trend looks to continue in 2023. According to a recent report from Insurify, the average cost of homeowners’ insurance is projected to jump 9% nationwide. Rates for insuring multifamily properties are projected to rise, as well. In New York City, rate increases are due to increasing costs to replace a seriously damaged property.
Factors driving up insurance rates include:
More Cases of Extreme Weather
If it seems like severe weather events have become more common recently, that’s because they have. Unfortunately, these severe weather cases are often destructive and costly. According to the National Centers for Environmental Information, since the beginning of the New Year, losses from major weather events in the United States in 2023 topped $1 billion as of May 8. As weather-related damages go up, so does the cost of insurance overall.
Rising Material Costs
The cost to repair or rebuild a home after an incident that results in a loss is a key consideration when pricing out homeowners’ coverage. Things like disruptions in the supply chain, an increase in demand for new construction, limited supplies, and inflation have led to a rise in material costs. The result is, as building costs go up, so does the cost to repair or replace homes damaged by covered losses.
Understaffed Workforce
While new home and renovation projects may be in high demand, like so many other sectors, the construction industry is facing a skilled labor challenge. Many construction and home renovation companies are severely understaffed, setting them behind. This shortage in the workforce has helped contribute to the recent increase in homeowners’ insurance premiums.
How Can You Find Affordable Multifamily Property Insurance?
Although current market conditions and certain circumstances that affect your insurance premiums may be out of your control, that doesn’t mean there’s nothing you can do. There are steps you can take when shopping for multifamily property insurance to help you keep the costs of coverage in check.
The first step is to choose the right provider. Not only is it important to partner with a provider that fits within your budget but also one that can provide everything you need.
At Muller Insurance, our independent status allows us to partner with numerous well-known providers. We can select from a range of options and plans, meaning when we consult with our clients, we can find the policy that meets their custom needs and budget. You will never overpay for coverage you don’t need because all our plans are specially designed to cater to your specific needs.
Premium Multifamily Property Insurance at Muller Insurance
When searching for the best price for multifamily property insurance, trust the knowledgeable team at Muller Insurance. We’ve earned our outstanding reputation through decades of experience. In addition to apartment building insurance, we proudly offer two types of dwelling insurance policies based on the building’s occupants:
Being independent, we can also offer our clients policies from several premier providers, including:
- Chubb Insurance
- Plymouth Rock Insurance
- Travelers Insurance
- The Andover Companies
- Franklin Mutual
- Safeco
- Farmers of Salem
- Narragansett Bay
- Cumberland Mutual
People in New York and New Jersey interested in affordable multifamily property insurance can contact us today to get a quote.
