NRMCA, Concrete Advancement Foundation Publish Revised Survey of Insurance Costs for Multifamily Buildings
Alexandria, VA – February 27, 2024
The Concrete Advancement Foundation and the National Ready Mixed Concrete Association have published the February 2024 Survey of Insurance Costs for Multifamily Buildings Constructed with Wood-frame and Concrete. The report, authored by Dr. Pieter VanderWerf, et. al., of Boston College, refreshes the survey of insurance costs for multifamily buildings commissioned in 2017, quantifying the expected differences in costs to insure a building constructed of combustible versus noncombustible construction.
The survey focuses on quotes for builder’s risk insurance and commercial property insurance for a typical multifamily residential building built using combustible (wood-frame) and noncombustible (concrete) construction in five cities in the United States: Edgewater, NJ; Towson, MD; Orlando, FL; Dallas/Fort Worth, TX and Los Angeles. One of the main drivers of the original survey commissioned in 2017 was the significant annual loss in buildings due to structure fires. The current survey consistently confirms that the cost of building insurance for a typical multifamily apartment building is lower when that building is constructed with concrete in lieu of wood-frame construction. The study also provides useful insight regarding the insurance industry’s current processes for determining insurance premiums.
“We’re proud to work with our partners at NRMCA to release this important study,” said Foundation Chairman Francis “Hall” Chaney, Chaney Enterprises. “Understanding the true costs of building material selection, especially in areas subject to natural disasters, can encourage builders to make the right choice of more resilient construction for life safety and property protection.”
NRMCA Senior Vice President, Codes and Standards, Shamim Rashid-Sumar, PE, FSFPE, added, “Our industry has long recognized the benefits of resilient construction. The Boston College study once again quantifies these benefits from the insurance perspective and confirms building insurance costs are rising for less resilient construction, particularly in coastal and other higher hazard regions of the country.”
The report is available for download from the Foundation’s website or NRMCA’s website.
The vision of the Concrete Advancement Foundation is to be the resilient resource to collaboratively support concrete as the leading sustainable building material. For more information on the Foundation’s research and activities, please visit www.concreteadvancement.org.