The Biden administration is working to draw down the cost of insurance for some property owners as soaring premiums fueled by climate change squeeze communities across the country.
The move comes in the form of a policy change at the Department of Housing and Urban Development. The update makes adjustments to the insurance coverage that apartment buildings with government-backed mortgages are required to purchase.
The changes focus on storm- and wind-related insurance and target multifamily properties with mortgages that are insured by the Federal Housing Administration. The tweak — which only will apply to new mortgage deals — nearly doubles the maximum deductible that apartment landlords can take out.
Now, building owners can set their deductible for wind and storm events as high as $475,000, up from the previous maximum of $250,000.
