How much has your landlord insurance jumped in the last 2-3 years?

Question

How much has your landlord insurance jumped in the past 2-3 years? I'm hearing horror stories from Florida operators (some up 40-60%) and Texas operators getting hit almost as hard. What's your number, what state, and did you actually do anything about it?

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Henry Lazerow · Answer

Mine has almost doubled in last 3 years and I have seen the same on many clients. The easiest way for the government to stop this is to crack down on the scammy door to door sales people who make bogus claims after every storm and then bill high rates to the insurance companies.

Emily Murray · Answer

22-36% increase in insurance for my properties in western TN and central Arkansas. I am shopping around for another carrier at every renewal. The new policies are still higher than the old rate, but I'm usually able to find something that lessens the blow a little bit. My umbrella insurance also doubled. I couldn't find anything cheaper so I had to decrease my liability from 2M to 1M so I could afford it. If these increases persist it will not be sustainable to stay in the real estate business long term.

Stephen Delahoussaye · Answer

Nashville here, managing about 20 doors across Davidson County. Insurance has been creeping up but nothing like what Florida and Texas are dealing with. We have seen roughly 15 to 20 percent increases over the last two years on most of our landlord policies. A few properties that had claims got hit harder, closer to 25 percent.

The biggest thing that has helped us keep costs down is shopping policies every single renewal. We do not just let them auto renew. Our insurance broker runs quotes from at least three or four carriers each time and we have switched carriers twice in the last 18 months just to keep premiums from running away.

The other thing that makes a real difference on the PM side is being aggressive about preventive maintenance. We had a property last year where we caught a slow roof leak early because we do quarterly exterior walkthroughs on every unit. That saved us a claim that would have jacked the premium for years. Insurance companies are penalizing claims history harder than ever right now so avoiding claims wherever possible is the best long term play.

For anyone in a high increase state like Florida or Texas, I would also look at raising your deductible if you have the reserves to back it up. Going from a 1k to a 2500 deductible can shave a meaningful amount off the annual premium and you are self insuring the small stuff anyway if you are managing correctly.

Great thread Garrett. Curious to hear what other markets are seeing.

Mendy J. · Answer

Think it's mostly in the south coast. I have properties in New York and New Jersey I didn't see premiums go up much, instead I reduced some of my premiums by switching to a different carrier.

Nathan Jensen · Answer

I’ve honestly seen the same thing even here in Idaho. A few years ago alot of the homes in my median price range for my clients I was qualifying were getting quoted around $800ish annually for insurance and now its not uncommon to see those same properties pricing almost double that depending on the carrier and coverage. What catches alot of investors off guard is how quickly that changes the monthly payment and cash flow numbers, especially for people buying rentals based on tighter margins or DSCR targets.

Garrett Crosby · Answer

California has been one of the most brutal markets for this. In LA and Ventura County specifically we've seen non-renewals become common, FAIR Plan as a last resort that's also gotten more expensive, and carriers simply exiting the state. The wildfires have accelerated everything.

Shopping every single renewal is non-negotiable now. I've also seen investors raise deductibles to keep premiums manageable and keep reserves specifically earmarked to cover that gap. Not ideal, but it's the new reality.

The bigger issue is that insurance is now a deal-killer line item that needs real numbers in your proforma — not estimates, not what you paid two years ago. Underwrite it fresh every time you run a deal. What market are you investing in?

Sam Saul · Answer

In Denver area from 2022 to 2025 almost doubled (80% to 120% increase). That’s considering we have switched carriers once in 2024, when the previous carrier increased the premiums to higher than what we are paying now!

In Lakeland, FL area from 2022 to 2025, about 2.5 times increase. That’s if you are lucky and can find a carrier that accepts a property that is more than 10 years old! Most of carriers only stick to new properties (<10 yrs old) that have almost no risk other than hurricane!

Amit Patel · Answer

Hey there! In the Chicago suburbs our landlord insurance has jumped roughly 45 to 50 percent cumulative over the past two to three years. That lines up with what a lot of Illinois owners are seeing. State Farm just rolled out another big 27 percent increase this summer, and we felt it on several properties.

lIf you are getting hit hard in your market I would start pulling fresh quotes right now. The difference between carriers can be huge even in the same zip code.

How much has your landlord insurance jumped in the last 2-3 years?

How much has your landlord insurance jumped in the last 2-3 years?

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