Protect your rent roll and property value as insurance costs climb

Rising insurance premiums are shaking up the multifamily world.

From natural disasters and escalating construction costs to fraud and legal exposure, multifamily operators are facing an increasingly volatile environment—and it’s putting pressure on everything from rent rolls to property valuations.

According to recent industry reports, nationwide insurance rates for multifamily assets rose an average of 12.5% annually between 2020 and 2023. In certain high-risk markets, that number is even higher—and in some cases, insurers are pulling out entirely.

But while insurance costs rise, so does the urgency for operators to find new ways to protect income and preserve asset value.

Let’s walk through what’s driving this shift, how it’s impacting real estate economics, and what landlords can do to protect their portfolios. Hint: it starts with better coverage—not just at the asset level, but at the renter level too.

Why premiums are climbing faster than ever

We’re living in the aftermath of a perfect storm.

• Climate events are more frequent and more damaging, leading to more claims and higher payouts
  
  
• Material and labor costs have remained elevated post-COVID, meaning even small losses cost more to repair
  
  
• Fraud and resident liability have risen dramatically, with fake pay stubs, stolen identities, and unpaid rent now far more common
  
  
• Legal exposure is rising too, with new regulations and tenant protections adding layers of risk for landlords
  
  

As a result, insurers are tightening their underwriting criteria, increasing deductibles, or exiting entire regions. Properties that used to be easy to insure are now high-risk—and that’s having a cascading effect.

The hidden impact: your property value

When premiums rise, your NOI shrinks. And when NOI shrinks, your asset value suffers.

If you’re underwriting a building with a projected $400,000 in net income, and insurance costs go up $60,000, that change alone could shave hundreds of thousands—if not millions—off your property’s valuation.

It also makes refinancing harder, dampens buyer interest, and reduces available proceeds in any sale.

Insurance may feel like an overhead expense. But in today’s environment, it’s an asset value driver—and failing to address it can quietly erode everything you’ve built.

So what can owners and operators do?

You can’t control the weather. You can’t reverse inflation. But you can reduce your exposure.

Forward-thinking operators are now looking for tools that give them more control over their rent roll—because that’s where the most consistent risk lives.

One of the most effective ways to reduce income volatility and improve your position with insurers and investors alike is to add lease coverage at the resident level.

And this is where Cosign comes in.

Layering protection: how Cosign helps stabilize your rent roll

Cosign isn’t an insurance company. It’s a platform that gives landlords the ability to approve more renters—without lowering standards—and ensures rent is paid even if the resident defaults.

By offering lease coverage to applicants who don’t meet traditional credit or income thresholds, Cosign helps reduce denial rates, increase occupancy, and secure your income stream from default-related losses.

Here’s how it works in practice:

1. A renter doesn’t meet your income or credit requirement
2. You refer them to Cosign through a simple portal
3. If approved, the renter pays for lease coverage (you pay nothing)
4. You lease the unit as normal
5. If the renter ever defaults, you file a claim and get paid within 5 business days
   
   

This setup lets you approve strong renters who fall just short of qualification—without compromising your leasing criteria or exposing your asset to risk.

What makes this valuable during an insurance spike?

By stabilizing your rent roll and minimizing the chance of default, Cosign helps you reduce bad debt without relying on your insurance policy.

That’s key for two reasons:

1. Fewer claims mean lower premiums.
   When you don’t need to file claims for missed rent, holdovers, or legal fees, your property becomes less risky in the eyes of insurers. Some operators using Cosign have used this coverage model to negotiate better premiums by showing that more of their risk is absorbed at the resident level.
   
   
2. Predictable income means stronger valuations.
   In multifamily, buyers value cash flow consistency. When a significant portion of your rent roll is backed by lease coverage, you’re able to show more reliable income, better occupancy, and lower exposure to collections or legal issues. All of that leads to higher cap rates and stronger outcomes.
   
   

A smarter risk strategy: from lease-up to exit

Cosign isn’t just for troubled applicants or fringe cases. It’s a tool you can apply strategically across your portfolio, especially in:

• Workforce housing, where income volatility is higher
• High-growth markets, where new leases push residents to affordability limits
• Lease-ups, where faster absorption = stronger asset value
• Exit-stage properties, where showing protected rent improves buyer confidence
  
  

Let’s say you’re planning to sell in 12 months. If you secure 30% of your rent roll with Cosign-backed lease coverage, you’ve just created a buffer that makes your building more attractive to investors. It says: “This income is stable—even if the economy wobbles.”

In a market where uncertainty is the norm, that’s a powerful story to tell.

Cosign isn’t insurance—it’s a smarter layer of protection

Traditional insurance still matters. You’ll always need your P&C policy. But relying on it to cover rent loss, lease breaks, or legal exposure isn’t efficient anymore.

Cosign gives you a first layer of defense. It’s coverage that kicks in before your policy ever gets involved—meaning fewer claims, faster payouts, and more predictability.

It’s not about replacing insurance. It’s about using the right tools for the right risk.

• Unpaid rent? Covered.
• Lease breaks? Covered.
• Denied applicants who could still be great residents? Convert them.
• Vacancy losses from long approval timelines? Solve them.
• Revenue loss dragging down asset value? Stabilize it.
  
  

All with no upfront cost, no operational burden, and no downside.

Final thought: real estate is volatile—your income doesn’t have to be

Rising insurance premiums aren’t going away. If anything, they’ll likely continue to be one of the biggest budget threats for multifamily operators in the years ahead.

But you’re not powerless.

By protecting your rent roll at the source—your residents—you can reduce claims, negotiate better premiums, and protect your property’s financial health from the ground up.

Cosign helps you do exactly that. And the best part? You can start using it tomorrow.

No integrations. No annual contracts. Just a smarter way to lease.

Learn more at rentwithcosign.com, and see how modern lease coverage is helping landlords protect their revenue—one unit at a time.