Apartment Insurance Costs Declined in 2025
For the first time in five years, rising insurance premiums for apartment properties saw a national decline.
Updated on Oct. 14, 2026 in Apartments
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Apartment insurance costs fell by 2.2 percent in 2025, marking a shift after years of consecutive increases. This relief affected 36 percent of apartment properties that paid less for insurance compared to the previous year.
Why it matters
While costs decreased, national insurance expenses remain more than double their 2019 levels. Because insurance per unit grew by 115 percent since 2019 compared to a 27 percent rise in revenue, these costs continue to impact property operating expenses.
Nationally, insurance costs reached $4.02 per $100 of revenue in 2025, up from $2.39 in 2019. Significant regional variations persisted, with premiums falling in Florida, Texas, and Louisiana, while California saw a 6.3 percent increase.
The details
Insurance costs for apartments historically track with revenue, but the gap widened significantly as insurance rose 115 percent per unit since 2019. The recent cooling trend suggests a shift in market risk appetite, with 59 percent of properties reporting lower costs in the first half of 2026 than in the same period of 2025. Sun Belt properties have seen particularly strong relief, with 72 percent paying less in early 2026.
Timeline
2019 served as the base year for measuring insurance and revenue shifts.
Insurance costs jumped 28.5 percent during 2023.
Insurance costs experienced a 2.2 percent decline throughout 2025.
In the first half of 2026, 59 percent of properties paid less than in the first half of 2025.
Scheduled loan refinancings are approaching for 2027 and 2028.
The Home Front
The 2025 decline represents a departure from the sharp, multi-year escalation in property insurance expenses that outpaced rental revenue growth. As loan refinancings approach in 2027 and 2028, this shift may influence the operating math for multifamily property owners.
Renters and owners should monitor how these regional insurance fluctuations influence property maintenance budgets and long-term rental pricing. If you are involved in apartment ownership, consider reviewing insurance coverage plans ahead of scheduled 2027 and 2028 loan refinancings.
The takeaway
While 2025 brought a modest 2.2 percent decline in insurance costs, property expenses remain significantly higher than they were five years ago. Property owners should track these premium changes closely as they prepare for major loan refinancing windows in 2027 and 2028.
Further reading
For more on the current rental market and property expenses, visit Apartments.
Source note: This article includes information reported by Commercial Observer.
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