NRMCA Publishes Survey of Insurance Costs for Multifamily Buildings
NRMCA recently published the results of a survey of insurance costs for both wood-frame and concrete buildings. The report, authored by Dr. Pieter VanderWerf and Nicholas Haidari of Boston College, details the results of a comprehensive survey of insurers on what rates they would charge on a reference building, one built with wood-frame and one built with concrete, in five different reference cities. Insurance quotes showed the concrete building less costly to insure than the wood-frame building for both builder’s risk insurance and commercial property insurance. Some insurance agents suggested that the gap between rates for wood-frame and concrete is likely to grow in the future and that a growing number of insurers are declining to serve as sole insurer for wood-frame apartment buildings.