Apartment Insurance Costs Fell During 2025
For the first time in five years, national apartment insurance premiums decreased as revenue outpaced costs.
Updated on Oct. 14, 2026 in Apartments
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In 2025, apartment insurance costs across the United States fell by 2.2 percent. This decline marked the first such decrease since 2019, though overall costs remain more than double their 2019 levels.
Why it matters
While insurance costs saw a slight dip in 2025, the sector continues to face significant financial pressure from long-term premium hikes. Insurance per unit has risen 115 percent since 2019, significantly outpacing the 27 percent growth in apartment revenue per unit.
Nationally, insurance costs represent $4.02 per $100 of apartment revenue as of 2025, up from $2.39 in 2019. In 2025, 36 percent of properties paid less for insurance than the previous year.
The details
Regional trends in 2025 showed mixed results, with significant relief in states like Louisiana, Florida, and Texas, where premiums fell 10.5, 9.8, and 8.4 percent, respectively. In contrast, California apartment owners saw their insurance premiums rise by 6.3 percent during the same period.
Timeline
2019 served as the base year for measuring insurance and revenue metrics.
Insurance costs experienced a 28.5 percent jump in 2023.
Nationwide apartment insurance costs fell 2.2 percent in 2025.
In the first half of 2026, 59 percent of properties reported lower costs than the first half of 2025.
Upcoming loan refinancings are scheduled for 2027 and 2028.
Culture Shift
The 2025 cost stabilization marks a departure from the volatile environment defined by the 2023 insurance premium surge. This shift reflects a cooling of the extreme market conditions that previously forced apartment owners to absorb massive operational overhead.
While insurance costs impact property management budgets, the stabilization of premiums may eventually reduce pressure on rent increases. Residents in areas like the Sun Belt, where 72 percent of properties saw reduced costs in early 2026, may see more stable operational conditions.
The takeaway
Apartment owners should remain cautious as current premiums remain double those seen in 2019 despite the recent downturn. Monitoring regional insurance volatility remains essential for long-term budgeting before the next cycle of loan refinancings begins.
What happens next
Property owners are currently preparing for a wave of loan refinancings expected to occur throughout 2027 and 2028.
Further reading
For more information on housing market trends, visit our Apartments section.
Source note: This article includes information reported by Commercial Observer.
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