2025 Portfolio Insurance Update

We are pleased to share the latest developments in Hamilton Zanze’s (“HZ”) comprehensive insurance program, which is designed to safeguard our investors and properties against the diverse risks associated with a multifamily real estate portfolio spanning sixteen states.

In the 2024 update, we outlined our philosophy of prioritizing risk management and the continued evolution of our portfolio insurance strategy. We also highlighted the challenging insurance landscape at the time, particularly with respect to habitational risk, widespread unfavorable coverages, high deductibles, and increasing premiums. Despite these downsides of a challenging market, we explained how HZ managed to successfully avoid these pitfalls. In particular, instead of scaling back on coverage to counter rising premium costs as other investors in the multifamily sector may have elected to do, HZ pursued best-in-class coverage at a reasonable value by layering coverage from various insurers.

This year, we’re pleased to report a significant shift in the industry: the insurance pendulum is swinging back in our favor. After a year of record profits among property insurers, capital has flowed back into the market, leading to more competition among insurers and improved pricing for insureds.

As part of our annual renewal process, HZ senior leadership met in person with over 30 insurers in London and the U.S., and held virtual meetings with several Bermuda-based providers. Thanks to this proactive approach—along with our disciplined risk management policies—we secured a 17% reduction in premiums for 2025, with no material changes to coverages, limits, deductibles, or terms.

While certain placements, such as umbrella and excess liability coverage, remain challenging, we are optimistic. The continued “softening” of the property insurance market could bring additional premium relief by the end of 2025.

HZ’s disciplined investment strategy and risk-conscious approach help ensure the portfolio remains resilient through insurance market cycles and broader operational risks.