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How IMG Is Protecting Asset Value in a Shifting Insurance Market

Woodland Hills, CA – June 30, 2025 – After years of sharp increases, multifamily property owners are experiencing some long-awaited relief in insurance expenses. The reprieve, however, has a caveat: lower rates come with more risk shifted to property owners by way of stricter underwriting, higher deductibles, and narrower coverage.

Investors Management Group (IMG) is navigating this change and others as it seeks to balance appropriate insurance coverage and low prices. Effective risk management is a key part of how we safeguard and drive performance across our national multifamily portfolio.

From Surge to Stabilization

Between 2020 and 2024, multifamily insurance costs more than doubled, driven by a spike in catastrophic losses, soaring reinsurance rates, and a market that became less competitive as some carriers exited high-risk markets. Insurance costs are so high in some markets that they alter the investment profiles of investment real estate. As an example, IMG exited the Florida market altogether as insurance expenses climbed from $890 per unit in 2020 to $1860 per unit in 2023 and eroded profitability.

“From 2021 to 2024, we saw premiums climb year over year, sometimes doubling, even for properties with no claim history,” said Brandon Felus, IMG’s Risk & Compliance Manager.

So far in 2025, the insurance market is improving. Reinsurers have regained capacity, catastrophic losses have leveled off, and competition among carriers is increasing. This shift is beginning to put downward pressure on rates. Across our portfolio, average renewal quotes are coming in 27% lower than current policies, resulting in significant projected savings.

For a closer look at these broader market forces, see our recent feature in Multi-Housing News: Insurance impacts on multifamily investing – Marc Gordon interviewed.

The New Reality: Higher Deductibles, Tighter Terms

While rates are easing, insurers are doing more to protect their bottom line. We observe this trend in the way deductibles are priced. Deductibles that were typically $25,000 a few years ago have jumped to $100,000 or more today. Special deductibles, such as Wind/Hail, that used to be a flat rate and are now commonly set as a percentage of the building’s total insured value.

IMG has responded by budgeting owner reserves for insurance costs, raising deductible thresholds for filing claims, and enacting new loss prevention measures across the portfolio. These efforts are designed to protect cash flow and property value.

“Every dollar we spend on insurance affects NOI,” said Marc Gordon, IMG’s Principal, Co-President, & CFO. “That, in turn, affects valuations and refinance proceeds.”

Preventive Measures and Long-Term Strategy

With climate-driven risks on the rise, IMG focuses on preventive strategies to reduce claims and improve insurability. Portfolio-wide initiatives include:

  • No-smoking and BBQ grill restrictions
  • Enhanced renter’s insurance requirements and lapse safeguards
  • Force-placed tenant liability coverage
  • Expanded cyber liability policies

One of IMG’s most impactful initiatives has been its renter’s insurance initiative. In 2021, less than 50% of residents were covered by renters’ insurance—largely due to patchwork software across management companies, which limited visibility. Once uniform reporting was achieved, IMG pushed for coverage compliance across the board. Now, with all properties operating in our centralized Yardi system, we have full oversight and have implemented a master liability program to protect assets when residents choose not to secure their own insurance.

“Carriers reward owners who take risk seriously,” added Felus. “In this market, prevention is a competitive advantage.”

As the insurance market continues evolving, IMG strives to be forward-thinking and adaptable in its approach to insurance. Whether rates plateau or shift again, we will find creative opportunities to effectively protect asset value—for our investors and our communities.

About Investors Management Group

Founded by Neil Schimmel, IMG is a nationally acclaimed real estate investment and asset management firm highly specialized in apartment communities. Our mission is to create vibrant, sustainable living environments through strategic investments and a commitment to community development. With a network of over 1,000 accredited investors, we strive to enhance the quality of life for our 5,000+ tenants nationwide and support the growth of local neighborhoods. IMG’s culture is characterized by innovation and a steadfast commitment to creating value in multifamily investments. Learn more