How Much Does Multifamily Rental Property Insurance Cost in 2026?

Nate Jones, CPCU, ARM, CLCS, AU
4 days ago
2 min read

As a multifamily property owner in 2026, understanding multifamily rental property insurance costs is essential for budgeting, pricing rent, and protecting your investment. Multifamily insurance premiums vary significantly based on property characteristics, location, coverage levels, and risk factors.

Below, we break down what influences 2026 insurance costs and how to estimate what you might pay for strong coverage.

What Influences Multifamily Rental Property Insurance Costs in 2026?

1. Property Location and Risk Profile

Insurance carriers price multifamily insurance based on location risk.

Properties in areas prone to storms, hail, or high crime may have higher premiums.
Coastal or flood‑prone regions may require separate flood insurance via the National Flood Insurance Program.

Local building and safety codes can also impact rates.

2. Property Size, Age & Construction

Larger buildings or older structures typically cost more to insure because:

Repair costs are higher
Old electrical or plumbing systems pose greater risk
Building materials may be outdated

Buildings with modern upgrades or recent renovations can often qualify for lower multifamily insurance premiums.

3. Coverage Amounts & Deductibles

Higher coverage limits, broader liability protection, and lower deductibles generally raise multifamily rental property insurance costs. Conversely, increasing deductibles can lower premiums — provided you can cover the deductible if you file a claim.

4. Loss History & Claims Frequency

Properties with a history of frequent claims may face higher multifamily insurance costs in 2026. Carriers consider your loss history when setting renewal premiums.

A strong loss avoidance and maintenance plan can help reduce this impact over time.

5. Optional Endorsements & Add‑Ons

Additional coverages—such as:

Loss of rental income
Ordinance and law coverage
Sewer/drain backup
Umbrella liability

—increase cost but help avoid large uninsured losses.

Estimated Multifamily Rental Property Insurance Costs in 2026

Exact numbers can vary widely — but a rough 2026 estimate for multifamily rental property insurance might look like this:

Property Size	Estimated Annual Insurance Cost*
Small Multifamily (2–4 units)	$1,200–$3,000+ per year
Medium Apartment Building (5–20 units)	$3,000–$10,000+ per year
Large Apartment Complex (20+ units)	$10,000–$50,000+ per year

Actual premiums depend on coverage limits, location, deductibles, and other risk factors.

These figures are estimates; the best way to understand your specific cost is to request a quote tailored to your property’s details.

How to Reduce Multifamily Insurance Premiums

Here are ways to optimize your multifamily insurance cost in 2026:

Improve safety and risk management — install alarms, sprinklers, and security systems.
Bundle coverages — combining property, liability, and income protection can lead to premium discounts.
Maintain up‑to‑date valuations — avoid over‑ or under‑insuring your property.
Address maintenance issues promptly — reducing the likelihood of claims.

These steps not only protect your building but can also make your property more attractive to insurance carriers.

How Wexford Insurance Can Help

At Wexford Insurance, we specialize in multifamily rental property insurance tailored to apartment buildings, duplexes, triplexes, and larger multi‑unit properties. We help owners: