At the midpoint of 2026, the multifamily insurance market remains defined by a widening divide between property and casualty. Property insurers continue competing aggressively for well-managed portfolios, driving meaningful rate reductions, broader capacity, and improved deductible structures. While current conditions present favorable opportunities for buyers, the soft property cycle may moderate through the remainder of 2026.
Overview
Casualty conditions remain markedly different. Legal system abuse, nuclear verdicts, and evolving liability theories continue to constrain general liability and umbrella capacity, particularly in high-litigation jurisdictions and higher-crime ZIP codes. At the same time, evolving lender requirements and broader underwriting scrutiny are making placements more complex for many multifamily owners.
Across property and casualty, insurers are placing greater emphasis on documented maintenance, property condition, security measures, operational controls, and overall risk governance. Organizations that can clearly demonstrate disciplined risk management and proactive investment in their properties are best positioned to capitalize on favorable property conditions while navigating a more challenging casualty landscape.
As market conditions continue to diverge, thoughtful program design and proactive planning remain essential. The Baldwin Group helps multifamily owners evaluate changing market dynamics, strengthen portfolio resilience, and align insurance strategies with evolving underwriting expectations and long-term operational goals.
Market at a glance
The multifamily insurance market remains defined by a striking divergence between property and casualty lines at midyear 2026. Understanding this split is increasingly important for owners seeking to capitalize on pricing opportunities in the property market while navigating persistent casualty challenges.
The following snapshot highlights the key factors shaping pricing, capacity, and underwriting expectations through the second half of 2026, with additional analysis provided in the sections that follow.
Property market
Soft market, rates down 10% to 30% for quality portfolios
- Competitive market – Insurers continue competing for well-managed accounts.
- Improving deductibles – Named storm deductibles are trending toward 2% to 3%.
- Valuations – Insurance-to-value (ITV) requirements have become more flexible.
- Key watchpoint – Soft cycle may begin reversing in late 2026 or early 2027.
Casualty market
Constrained due to social inflation and litigation trends
- Limited capacity – Nuclear verdicts and claim severity are constraining capacity.
- Lender requirements – A&B and A&M coverage have become difficult to secure.
- Higher retentions – SIRs of $25,000 to $100,000 are becoming more common.
- Key watchpoint – Negligent security claims frequency and severity is increasing.
Property market
Soft cycle deepens, but reversal may be approaching
The multifamily property market has fully transitioned to a soft cycle, with well-managed portfolios seeing rate reductions of 10% to 30% and some of the most favorable terms since before the 2020 hard market. Insurers remain highly competitive, deductible structures are improving, and underwriting flexibility around valuations has increased.
While current conditions remain favorable, industry analysts project the soft property cycle may begin reversing in late 2026 as inflationary pressures and reinsurance market dynamics push pricing upward heading into 2027. Owners should use this window proactively by locking in favorable terms rather than assuming current conditions will hold.
Pricing and underwriting
Even as competition increases, underwriting discipline remains firmly in place. Property condition, climate exposure, and long-term asset maintenance continue influencing underwriting outcomes, underscoring the importance of proactive risk management and thorough documentation.
- Rate movement – Large, diversified portfolios are seeing the most pronounced improvements, with insurers actively competing to participate in layered and shared placements.
- Deductibles – Named storm deductibles that peaked at 5% are trending toward 2% to 3%. AOP deductibles are stabilizing with some assets returning to flat-dollar structures in favorable geographies.
- Valuations – The automatic 8% to 15% valuation uplifts imposed during peak reconstruction cost inflation are easing, with underwriters showing more flexibility on ITV requirements.
- Underwriting discipline – Roof age and condition, construction type, geographic concentration, and maintenance documentation quality all remain central to underwriting decisions despite the softer pricing environment.
Climate-driven losses
Despite the soft cycle, climate-related losses continue to shape underwriting strategy. Secondary perils — severe convective storms (SCS), hail, flooding, and wildfire — generated elevated losses in both 2024 and 2025, and underwriters are applying increasingly granular analytics to price these exposures.
- Severe convective storms – Convective storm frequency and severity remain elevated across Texas and the central U.S., driving loss volatility for portfolios concentrated in these corridors.
- Hail exposure – Hail continues to produce outsized roof claims across multifamily assets. Insurers now require detailed documentation of roof age, materials, and replacement history.
- Broader climate perils – Wildfire risk in the West, Gulf Coast flooding, and hurricane activity along coastal markets continue to influence both appetite and deductible structures.
- CAT modeling – Insurers are deploying micro-geographic CAT modeling and ASTM-aligned resilience assessments to evaluate accumulation risk at the asset level.
Aging infrastructure
Properties built between the 1970s and 1990s continue to account for a disproportionate share of property losses as they approach or exceed major system replacement cycles. Underwriting scrutiny on these assets has not eased despite the broader soft market.
- Top loss drivers – Water intrusion, burst pipes, aging electrical systems, balcony and railing failures, and end-of-life roofs remain the top loss drivers.
- Underwriting impact – Properties with deferred capital expenditures or inconsistent documentation face tighter terms and reduced capacity even when broader market conditions are favorable.
- Documentation requirements – Insurers increasingly expect documented maintenance and inspection logs, capital improvement plans, and proactive replacement timelines for roofs, plumbing, electrical systems, and the building envelope.
Today’s soft property market creates meaningful opportunities, but favorable outcomes depend on disciplined risk management. Owners that combine proactive maintenance, thorough documentation, and long-term capital planning are best positioned to strengthen portfolio resilience and maximize insurer interest as market conditions evolve.
Casualty market
Constrained capacity, increasing complexity
Casualty conditions remain severely constrained at midyear 2026. General liability and umbrella capacity remains limited in high-litigation jurisdictions, while negligent security litigation, assault and battery (A&B) coverage challenges, and evolving lender requirements continue making placements more complex for multifamily owners.
Negligent security is a growing pressure point, with industry data demonstrating a significant increase in gun, weapon, and assault-related negligent security claims, including at properties with cameras and gated access. Obtaining adequate A&B coverage has become increasingly difficult and costly, and many lenders now identify this coverage as a loan compliance requirement, adding urgency to placements that previously required little attention.
Capacity and underwriting
As casualty conditions remain challenging, underwriting continues to focus on jurisdiction, loss severity, lender requirements, and operational risk management.
- Geographic pressure – Capacity is tightest in Florida, Georgia, and other judicial hotspots, where many insurers have reduced limit deployment, imposed stricter underwriting requirements, or exited multifamily GL entirely.
- Lender compliance – Lender requirements for A&B, abuse and molestation, firearms, and animal attack coverage are pushing programs into the E&S market. Standalone policies for some of these exclusions have become slightly more available in 2026, though lender approval of coverage limits remains a friction point.
- Retentions – Guaranteed-cost options have become scarce. SIRs of $25K to $100K on GL placements are now common for larger portfolios and adverse loss history.
- Severity drivers – Slip-and-fall claims, on-site violent incidents, and premises liability verdicts continue to escalate in severity due to social inflation, plaintiff advertising spend, and jury unpredictability.
- Underwriting focus – Crime scores, amenity risks, mixed tenancy, incident documentation quality, and maintenance evidence are now central underwriting criteria. Reactive postures are major red flags.
Crime and negligent security
Negligent security claims remain one of the most significant severity drivers in the multifamily sector, with large verdicts proliferating and plaintiff firms increasingly targeting properties in urban and higher-crime ZIP codes.
- Severity drivers – Verdicts tied to inadequate lighting, nonfunctioning gates, insufficient camera coverage, and delayed incident response continue to elevate claim costs.
- Crime score scrutiny – Insurers now require detailed crime score documentation and are applying strict ZIP code thresholds, with high-crime areas facing reduced limits or outright declinations.
- Legal environment – Several states have broadened premises liability expectations around harm foreseeability and incident response, directly escalating severity.
Amenity and operational risks
As multifamily communities expand amenity offerings, insurers are placing greater emphasis on the liability exposures they introduce. Courts continue broadening duty-of-care expectations, while several emerging operational risks are attracting heightened underwriting scrutiny.
- Amenity liability – Rooftop pools, alcohol service, 24/7 gyms, dog parks, and coworking areas each introduce elevated liability due to limited supervision and variable resident behavior.
- Lithium-ion battery risk – Resident use of e-bikes, scooters, and aftermarket batteries has become a major operational risk. Insurers now expect designated charging areas, fire-resistant containment, written tenant policies, and restrictions on in-unit charging.
- EV chargers – EV chargers introduce fire and liability exposure when electrical infrastructure is not properly installed or maintained. Insurers expect certified installation, routine inspections, and clear protocols for battery damage events.
Legal reform activity
Recent tort reform measures in several states are beginning to reshape the legal environment for multifamily owners, particularly around negligent security, premises liability, and fault allocation. While the long-term impact on claims, underwriting, and insurer appetite will take time to develop, these reforms may influence litigation trends and casualty market conditions in affected jurisdictions.
- Georgia – Senate Bills 68 and 69 strengthen defenses against certain negligent security claims, revise fault allocation, and introduce additional litigation reforms that may help moderate liability exposure over time.1
- South Carolina – Tort reform legislation modifies fault allocation and limits joint and several liability for many defendants, providing additional protections in certain premises liability claims.2
- Florida – Earlier tort reforms continue influencing underwriting and claims, including statutory protections for owners that implement specified security measures and expanded consideration of third-party fault.3
- Louisiana – A modified comparative fault standard taking effect in 2026 may reduce exposure in premises liability claims where plaintiffs bear the majority of responsibility.4
- Texas – Proposed tort reform measures did not pass during the 2025 legislative session, leaving the state’s premises liability framework largely unchanged.5
Organizations that demonstrate strong security practices, disciplined maintenance, and well-documented operational controls remain best positioned to differentiate their risk, strengthen insurer confidence, and secure more favorable casualty outcomes despite ongoing market challenges.
Critical capacity across diverging market conditions
The excess and surplus (E&S) market continues playing a foundational role in multifamily insurance programs, providing critical capacity and underwriting flexibility across both property and casualty placements. While improving conditions have expanded opportunities on the property side, casualty challenges continue driving reliance on E&S solutions to address complex exposures, satisfy lender requirements, and secure capacity that is increasingly difficult to obtain in the standard market.
- Property – Property E&S markets are delivering some of the largest rate reductions available for well-managed portfolios, with competitive capacity and broad underwriting flexibility.
- Casualty – For GL and umbrella, E&S remains the only viable path to required limits in many high-litigation jurisdictions, and to lender-mandated coverages such as A&B, A&M, firearms, and animal attack.
- MGAs and programs – New E&S programs and MGAs continue to emerge, but remain geographically selective. Owners with challenging exposures should expect limited options, making early marketing and clean submissions essential.
As standard and non-admitted markets continue serving different roles across multifamily portfolios, placement strategy has become just as important as market access. Understanding when and how to leverage E&S solutions can help owners preserve flexibility, meet lender requirements, and build programs that remain resilient as market conditions evolve.
What underwriters now require
Underwriting expectations continue evolving alongside the multifamily risk landscape. While market conditions vary across coverage lines, insurers are increasingly differentiating portfolios based on the quality of documented risk controls, operational discipline, and property management practices. Well-maintained properties supported by consistent documentation and proactive risk management are generally better positioned to secure favorable pricing, broader coverage, and stronger insurer interest.
The following represent many of the baseline expectations underwriters now evaluate during the placement process.
- Security – Underwriters expect functioning gates, detailed patrol logs, adequate lighting, 90+ day camera footage retention, and smart access systems.
- Fire safety – Current inspections and maintenance are expected for fire suppression systems, HVAC equipment, and dryer vents.
- Amenities – Defined safety protocols, appropriate signage, access controls, documented maintenance, and evidence of staff training are expected.
- Lithium-ion batteries and EV chargers – Designated charging areas, fire-resistant containment, written tenant policies, and certified EV charger installation are becoming baseline underwriting expectations.
- Roofs and building systems – Properties should maintain documented roof age, materials, replacement history, and capital improvement plans for aging systems.
- Incident response – Owners should maintain written protocols, consistent documentation, and evidence of responsive follow-up.
- Loss history – Organizations should be prepared to explain significant historical losses and demonstrate remediation efforts.
Strong underwriting submissions reflect more than property characteristics. They demonstrate how an organization identifies, manages, and continuously improves risk across its portfolio, helping insurers better understand the quality of the risk they are being asked to insure.
Turn insight into action
As the multifamily insurance market continues to diverge across property and casualty, success depends on more than securing coverage at renewal. It requires proactive planning, disciplined risk management, and insurance strategies that evolve alongside changing market conditions, lender expectations, and operational realities.
The Baldwin Group partners with multifamily owners, operators, and portfolio managers to strengthen portfolio resilience through tailored program design, specialized market expertise, and proactive risk-management strategies. Acting as an extension of your team, we help you:
- Capitalize on property market softening before conditions shift
- Navigate casualty constraints through creative program structures
- Strengthen documentation and incident reporting practices
- Meet lender-driven requirements in challenging jurisdictions
- Design alternative risk financing strategies, including captives and layered programs
- Position your portfolio competitively for the next market cycle.
By combining market insight with disciplined risk management and thoughtful program design, we help position your organization to secure capacity, strengthen underwriting outcomes, and build long-term resilience in an evolving insurance market.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
- Shook Hardy and Bacon, “Georgia Tort Reform Laws Bring Significant Changes,” April 2025 ↩︎
- Governor of South Carolina, “Gov. Henry McMaster Signs Landmark Tort Reform and Liquor Liability Bill Into Law,” May 28, 2025 ↩︎
- Feldman Law, “Tort Reform in Florida: What You Need to Know about HB 837,” Accessed July 2026 ↩︎
- Faegre Drinker on Products, “Tort Reform is Top of Mind in 2025: Legislative Updates in Georgia, South Carolina, Louisiana and Arkansas,” Elizabeth A. Wurm, Jenna Seiler and Elizabeth C. Christen, July 25, 2025 ↩︎
- The Hadi Law Firm, “2025 Texas Personal Injury Law Changes: What You Need to Know,” Accessed July 2026 ↩︎
