Washington — Workers’ comp accounts for TCR jump.
Washington — Insuring apartments was more expensive in 2011 than it was in 2010, according to a recent study by the National Multi Housing Council. The Apartment Cost of Risk Survey, which is conducted annually, collected data from 57 apartment firms that cover 750,000 units. The survey found that a 25 percent increase in workers’ compensation rates and higher premiums for general liability coverage were part of the causes that led Total Cost of Risk (TCR) to rise 1 percent. While the increase is small, it is the first time TCR has risen in 4 years. Last year, it declined 6 percent.
“Our results indicate that the buyers’ market enjoyed by apartment firms in recent years is reversing,” says Jeanne McGlynn Delgado, NMHC’s vice president of business and risk management policy. “Although this year’s increases were limited to a couple lines of insurance, we expect to see moderate price increases in 2012 as a result of both the current investment market and the impact of severe weather in 2011.”
For an executive summary of the survey, click here.