WTI - What The Insurance?

As inflation continues to rise, so do operating costs for rental housing providers. One of the biggest increases is insurance. The National Apartment Association reported a 33% increase in insurance costs per unit. How will increased insurance costs affect potential plans for development in Mecklenburg County and will potential developers leave entirely? 

While it’s tough to predict when insurance costs will decrease, it’s important to identify what causes them. Water damage can be caused by frozen pipes, high pressure, corrosion, or broken seals. While it’s important for maintenance teams to be proactive and prepare for inclement weather, there are also many factors that are out of their control.

Sadly, the affordable housing community is taking a strong hit. Will increasing insurance costs drive away affordable housing providers in Mecklenburg County? With 113 people moving to Charlotte every day, the need for affordable housing will continue to exist. Will management companies continue to operate and expand their portfolios with high insurance premiums? Time will tell.