Your Insurance Renewal Didn’t Cost You $50,000… It Cost You Nearly $770,000.
A $50,000 insurance increase at insurance renewal doesn’t stop at the premium. It reduces net operating income (NOI) by $50,000 and, at a 6.5% cap rate, can translate to roughly a $769,000 reduction in implied property value. Consider a hypothetical multifamily property with an annual insurance premium of $200,000. At renewal, that premium increases 25% […]