Due to the increasing number of devastating climate change-related disasters, commercial real estate insurance is becoming harder to come by and more expensive. This is especially true in coastal states like Florida and California, which have seen massive increases in insurance costs. Apartment owners are challenged to find or renew insurance policies at a reasonable rate, with premiums for multifamily insurance in the U.S. having increased 33% year-over-year in the second quarter of 2023. Although rental rates have increased in some areas, they have not kept up with the huge increases in insurance costs.
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