Multifamily Insurance Cost is always a hot topic. A caller with commercial property investing experience was looking to add more multifamily property to his portfolio. He was surprised to learn how expensive rental apartment rates could be. This is especially true in high risk areas like Florida and Houston. Rob Rowsell does not buy properties in these areas for that reason. He always consults with his real estate insurance agent. They review the insurance documentation in order to determine not just what IS covered, but what is NOT covered!
How Much Should Your Multifamily Insurance Cost?
On a recent Inner Circle Community call, Rob took questions from callers. One attendee, John, asked a follow up question from another who asked about accepting capital from investors outside of her circle.
Rob mentioned multifamily insurance cost as part of the due diligence process, and included a baseline number from past ventures. John asked for clarification on that baseline number, $250 per door. Rob explained that the figure no longer applies. Insurance per unit is much higher across the board in 2025.
He cited the high insurance coverage rates in areas of the country that are at high risk for tornadoes, hail, hurricanes, and other natural disasters. By and large, insurance companies classify the entire state of Florida a hurricane risk, even though the coasts are most susceptible. Therefore, Rob does not buy properties in the Sunshine State. Houston is also a high risk area, so it yields higher insurance premiums for multifamily investors. Lately, Rob has encountered typical rates of $700-2800 per door.
These figures floored John, a commercial investor in Maryland. He asked if the owner pays out of pocket to rebuild to code in the event of property damage. Rob mentioned that this rule does not apply to commercial properties, unless it is a residential commercial building.
When you as a multifamily apartment investor want clarification on their coverage, you should read the section entitled “what is not covered”. If you do not find the answer, make sure to email your agent and get it in writing. At the very least, you will have proof that you asked about your coverage in writing.
Join Our Multifamily Investing Community Today
Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
