After years of relentless premium hikes and coverage headaches, multifamily owners and managers may finally have something to cheer for in 2026: nearly every major insurance broker and publication is now forecasting stable—or even falling—property insurance rates in the coming year.
Why the Outlook Is Improving
Industry leaders at the latest Insurance Leadership Forum noted that as 2025 comes to a close, the market has entered a “softening” phase for the first time in nearly a decade. Reinsurers have stabilized, new carriers have entered the space, and capital is flowing back into the property market — all of which are creating downward pressure on premiums.
According to Reinsurance News and Insurance Business America, improved catastrophe results in 2025 have led to stronger reinsurance capacity and more competitive pricing across the board. Insurers now have the confidence (and reserves) to write new business, especially in low-claim markets.
John Gilmore of Hamilton Zanze told NAAHQ, “After seven years of increasing premiums, the market finally shifted, resulting in a significant decrease in property insurance premiums in 2025. Unless there are substantial catastrophic events, I anticipate that premiums will continue to decrease.”
Similarly, The Annex Group expects 2026 to bring premium reductions between 10% and 30% for well-managed properties outside of severe weather zones. National and regional operators in the Sunbelt and Mountain West are already reporting stable renewals and early signs of double-digit savings for clean accounts.
Why Relief Won’t Be Universal
Despite the optimism, insurers remain cautious. Underwriting is still selective in CAT-prone regions — particularly where wind, hail, or wildfire losses remain high. Analysts note that while reinsurance costs have steadied, they have not dropped enough to erase years of inflation-driven rate increases.
Liability coverage remains another pressure point, especially for older properties or those located in high-crime ZIP codes. Umbrella and excess premiums are not expected to fall significantly, and properties with poor claims history may see only marginal improvements.
Executives at the Insurance Leadership Forum warned that one major catastrophe in late 2025 or early 2026 could stall — or even reverse — the current softening trend.
Tips for Multifamily Owners and Investors
To take advantage of this shifting market, owners should act early and strategically:
✅ Document all mitigation efforts and building upgrades. Insurers are rewarding strong risk management and clean claims history.
✅ Start renewals early. Quoting before the next CAT event can lock in better pricing and prevent reactive premium spikes.
✅ Bundle properties under master schedules. More units under one policy can lower per-door rates and strengthen coverage options.
✅ Avoid or divest from high-risk properties. Locations with high crime or weather scores remain the hardest to insure.
✅ Work with experienced brokers. Access to both admitted and E&S carriers will be critical for securing competitive options.
The Bottom Line
2026 is shaping up to be the most owner-friendly year for multifamily insurance since 2017. Flat or declining premiums are likely for well-managed properties, particularly outside of coastal and CAT-prone regions.
However, volatility still looms. Underwriting discipline will remain high, and any major catastrophe could slow the recovery. The best outcomes will go to owners who renew early, maintain clean loss runs, and partner with brokers who understand carrier appetite and market timing.
After years of turbulence, stability may finally be on the horizon, and for multifamily investors, that’s welcome news.