Apartment Insurance Costs Fell for First Time in Years

While national premiums dropped in 2025, apartment insurance costs remain significantly higher than they were in 2019.

Updated on Oct. 14, 2026 in Apartments

Apartment Insurance Costs Fell for First Time in Years

Live Poll

Do you think housing in your community is becoming less affordable due to rising insurance costs?

Nationwide apartment insurance costs declined by 2.2 percent in 2025, marking the first reduction after five consecutive years of increases. Although this relief reached 36 percent of apartment properties, total insurance expenses remain more than double their 2019 levels.

Why it matters

The moderation in insurance costs suggests a potential easing in operating expenses for property owners, even as total per-unit insurance costs are up 115 percent since 2019. This shift is critical for budgeting as many properties approach scheduled loan refinancings between 2027 and 2028.

Nationally, insurance costs reached $4.02 per $100 of apartment revenue in 2025, up from $2.39 per $100 in 2019. While apartment revenue per unit has risen 27 percent since 2019, insurance costs per unit have surged by 115 percent.

The details

The recent decline follows a trend where insurance expenses consistently outpaced revenue growth, impacting the net operating income for many apartment communities. In 2025, specific regions saw significant relief, including drops of 9.8 percent in Florida, 8.4 percent in Texas, and 10.5 percent in Louisiana. Conversely, some markets continue to face upward pressure, as seen in California where premiums rose 6.3 percent in 2025. Data from the first half of 2026 shows this relief continuing, with 59 percent of properties reporting lower insurance costs compared to the same period in 2025.

2019 served as the base year for measuring insurance and revenue growth.
Insurance costs increased by 28.5 percent in 2023.
Apartment insurance premiums fell by 2.2 percent in 2025.
In the first half of 2026, 59 percent of properties paid less for insurance than in the first half of 2025.
Scheduled loan refinancings are expected to take place in 2027 and 2028.

Money Landscape

The recent drop in insurance premiums represents a deviation from the rapid cost growth observed between 2019 and 2023. Despite this 2025 dip, insurance remains a disproportionately larger share of apartment operating revenue than it was at the start of the reference period.

For household decision-makers or property stakeholders, these fluctuations in operating costs can influence future rent adjustments and budget planning. Always discuss the long-term financial implications of property-level operating expenses with a qualified financial or tax professional.

The takeaway

While 2025 brought much-needed premium relief to many apartment properties, total insurance costs remain at historic highs relative to 2019 levels. Monitor local market reports and discuss how property-level operating expense trends might influence your long-term housing budget with a professional.