Key takeaways
- $982 a unit a year is the median insurance premium across 69 Los Angeles County buildings, or $1.11 per square foot; half paid $709 to $1,331 a unit.
- $1,434 against $813: the median for buildings with surplus lines carriers against admitted carriers. With age, size and policy year held the same, surplus lines still ran about 40% to 45% higher, with a wide range.
- Age alone is not the story: 1960s and 1970s buildings paid more mostly because 7 of the 10 with a known market were with surplus lines carriers. In the same market, they paid about the same as older buildings.
- +18% for 2024 on the same buildings with the same carrier, after 4% to 9% a year from 2019 to 2023 and about 1% a year from 2014 to 2018.
- +47% at the median when the carrier changed for 2025: six buildings in our files, five of them leaving State Farm, and one owner's two buildings paid 3.5 times the old premium.
- $154,000 of value for every $10,000 a year of premium at a 6.5% cap rate, and about $182,000 at 5.5%.
We sell apartment buildings across Los Angeles County and own a few small ones, so we see the insurance line from both sides of the table. This guide is built from the declarations pages, renewals, quotes, invoices and operating statements in our deal files, due diligence rooms and our own buildings, from 2012 to 2026. Your insurance broker quotes your actual policy; this is market information, not insurance or legal advice.
How much does apartment building insurance cost in Los Angeles?
Across 69 Los Angeles County buildings with a 2024 to 2026 premium on file, the median is $982 per unit per year, or $1.11 per square foot of building, and half paid between $709 and $1,331 a unit. Buildings whose policies show both property and liability coverage on a 2025 or later term ran higher, a median $1,331 a unit.
Median premium, per unit per year
$982
69 Los Angeles County apartment buildings, 2024 to 2026 terms
Per square foot of building
$1.11
Middle half of buildings, per unit
$709 to $1,331
Each insured building counts once, at its newest full-year premium, and a blanket policy over several buildings counts once at its combined figure. Per unit is the measure to compare: carriers price apartments by the unit and the building more than by the foot, so a building of large units looks cheap per square foot by arithmetic alone.
Where does your building fall?
Half of the buildings paid between $709 and $1,331 a unit
Buildings by annual premium per unit, in $250 bands; 69 buildings. The shaded band is the middle half.
View the data
| Premium per unit per year | Buildings |
|---|---|
| $250 to $499 | 4 |
| $500 to $749 | 15 |
| $750 to $999 | 19 |
| $1,000 to $1,249 | 12 |
| $1,250 to $1,499 | 8 |
| $1,500 to $1,749 | 5 |
| $1,750 to $1,999 | 3 |
| $2,000 to $2,249 | 0 |
| $2,250 to $2,499 | 1 |
| $2,500 or more | 2 |
One building in four paid under $709 a unit and one in four paid over $1,331. Of the 17 buildings above the middle half, 8 are with surplus lines carriers and 5 carry an umbrella in the premium. Of the 17 below it, none is with a surplus lines carrier where the documents show the market.
The 21 buildings whose documents show both property and general liability on a full 2025 or later term paid a median $1,331 a unit and $1.59 per square foot. For the other buildings we have the premium but not the full coverage list, so some may cover less than a full package. Building size made little difference: 2 to 10 unit buildings paid a median $952 a unit, 11 to 20 units $989 (a small sample) and 21 or more $1,047, and the three medians overlap.
For context, CRED iQ puts the national apartment average at $778 per unit in 2025; no public source we found publishes a Los Angeles figure, which is why we built our own. Owners can read their area on our market pages for the San Fernando Valley, Glendale, Pasadena and Burbank, Hollywood, Koreatown and West LA; owners in South LA or Ventura and Santa Barbara can use the all-building median as a reference.
What makes one building cost more than another?
Mostly the market that will write it. Buildings with surplus lines carriers paid a median $1,434 a unit, against $813 with admitted carriers. Older buildings, especially those from the 1960s and 1970s, end up with surplus lines carriers more often, the policy year matters, and an umbrella in the premium adds to it. Building size and age on their own made little difference once the market was taken into account.
Buildings with surplus lines carriers paid a median $1,434 a unit, against $813 with admitted carriers
Annual premium per unit; the 31 buildings whose policy shows the market
View the data
| Group | Buildings | Median per unit | Middle half | Confidence |
|---|---|---|---|---|
| Admitted carrier | 19 | $813 | $685 to $1,013 | Reportable |
| Surplus lines carrier | 12 | $1,434 | $1,177 to $1,621 | Reportable |
That gap is the largest in our files. Part of it is the buildings themselves: a building a surplus lines carrier writes is often one an admitted carrier declined. Comparing buildings of the same age, size and policy year, surplus lines still ran about 40% to 45% higher, though the range on that estimate runs from under 10% to over 80%. The market shows on the documents for 31 of the 69 buildings.
Why 1960s and 1970s buildings look expensive
Seven of 10 buildings from 1960 to 1979 were with surplus lines carriers, against 1 of 8 built before 1960
Buildings whose policy shows the market, by year built; each group is a small sample
View the data
| Year built | Surplus lines | Admitted | Confidence |
|---|---|---|---|
| Built before 1960 | 1 | 7 | Small sample |
| Built 1960 to 1979 | 7 | 3 | Small sample |
| Built 1980 or later | 3 | 8 | Small sample |
On their own, buildings from 1960 to 1979 paid the most, a median $1,187 a unit against $952 for buildings from before 1960 and $811 for 1980 or later. Most of that gap runs through the market. Held to the same market, size and policy year, 1960 to 1979 buildings paid about 2% more than older ones, with a range from about 20% less to 30% more: no clear difference. What the files cannot separate is why so many of them are with surplus lines carriers; carriers point to age, tuck-under parking, building systems and claims. Buildings from 1980 or later stayed cheaper, about 15% less per unit than older buildings in the same market, though the range on that estimate reaches no difference.
The policy year
Policies starting in 2026 ran a median $1,101 a unit, against $745 for 2024 terms
Median annual premium per unit by the year the policy term starts; each building counted once, at its newest term
View the data
| Policy year | Buildings | Median per unit | Middle half |
|---|---|---|---|
| Policy year starting 2024 | 12 | $745 | $648 to $855 |
| Policy year starting 2025 | 36 | $979 | $657 to $1,299 |
| Policy year starting 2026 | 21 | $1,101 | $920 to $1,481 |
Terms that start later cost more. Comparing buildings of the same age, size and market, a 2026 term ran about 15% to 25% higher than a 2024 or 2025 term; in the fullest version of the comparison the range reaches no difference. Because different buildings sit in each year, the same-building renewals in the next section are the cleaner way to read the change over time.
Why is my renewal so much higher?
Admitted carriers pulled back from California, the January 2025 fires hit the whole market, and new state rules let carriers price wildfire catastrophe models and reinsurance into rates. On the same buildings with the same carrier, renewals ran 4% to 9% a year from 2019 to 2023, then 18% for 2024. When the carrier changed for 2025, the median premium rose 47%.
What premiums did on the same buildings
The cleanest way to see the change is the same building year after year. 23 buildings in our files have three or more years of premiums, going back to 2012. From 2014 to 2018, same-carrier renewals were about flat, a median 1% across 13 renewals on 5 buildings. They ran 4% to 9% a year from 2019 to 2023, then 18% for 2024. Chained from those medians, premiums rose about 48% from 2019 to 2024; each year rests on 9 to 12 buildings, so read it as direction, not a market index.
Renewals with the same carrier ran 4% to 9% a year from 2019 to 2023, then 18% for 2024
Median change in the annual premium, same building and same carrier, consecutive terms; 9 to 12 buildings a year, small samples
View the data
| Renewal | Median change | Buildings | Confidence |
|---|---|---|---|
| 2014 to 2018 (pooled) | +1.2% | 13 renewals, 5 buildings | Small sample |
| 2019 to 2020 | +8.6% | 9 buildings | Small sample |
| 2020 to 2021 | +4.1% | 10 buildings | Small sample |
| 2021 to 2022 | +4.4% | 10 buildings | Small sample |
| 2022 to 2023 | +6.5% | 12 buildings | Reportable |
| 2023 to 2024 | +17.9% | 10 buildings | Small sample |
When the carrier changed
When the carrier changed for 2025, the median premium rose 47%, and one owner's two buildings paid 3.5 times the old
New annual premium as a multiple of the old one; the six buildings in our files that changed carrier for 2025, a small sample
View the data
| Building | 2024 | 2025 | Multiple |
|---|---|---|---|
| Building A | $3,653 | $12,913 | 3.53 times |
| Building B | $3,708 | $13,084 | 3.53 times |
| Building C | $8,094 | $12,582 | 1.55 times |
| Building D | $16,767 | $23,149 | 1.38 times |
| Building E | $12,747 | $13,741 | 1.08 times |
| Building F | $4,909 | $3,901 | 0.79 times |
Six buildings in our files changed carrier for 2025, and five of them left State Farm. The new premium was 3.5 times the old on two buildings with one owner, 1.6 and 1.4 times on two more and 1.1 times on a fifth. The sixth paid less, 0.8 times, but its building limit fell from $1.5M to $1.1M and its deductibles rose, so a lower premium is not always the same coverage for less. Our files do not say why each owner moved. Across all six, the median change was 47%, against the 18% same-carrier renewals ran the year before.
State Farm General stopped taking new business and personal property applications in California on 05/27/2023, then non-renewed about 42,000 commercial apartment policies starting 08/20/2024. Its 09/18/2026 filing covers residential policies; it says nothing about apartment buildings. Farmers, back writing habitational risks since 08/01/2024, filed an apartment and condo rating plan on 07/31/2026 with a statewide average increase of just over 15% proposed for 02/01/2027.
Verisk estimated insured losses from the January 2025 Palisades and Eaton fires at $28B to $35B. By 11/17/2025 insurers had paid $22.4B; 42,121 claims had been filed, about 94% of them fully or partly paid. The Insurance Commissioner approved a $1B assessment of member insurers to keep the FAIR Plan paying claims.
California's Sustainable Insurance Strategy now allows wildfire catastrophe models in ratemaking (operative 12/12/2024) and the net cost of reinsurance (operative 01/13/2025). Insurers that use them must commit to write more in wildfire distressed areas.
The national market is softer: Marsh reports US property rates fell 13% in Q2 2026, and CRED iQ shows apartment insurance per unit down 2.2% nationally in 2025 while California rose 6.3%.
Does the FAIR Plan cover apartment buildings?
Yes, for buildings of 5 or more units, but only for fire, lightning and internal explosion, with vandalism optional. An owner on the FAIR Plan carries two more policies from private carriers: a difference in conditions (DIC) policy for water damage and theft, and general liability. Earthquake is a separate, optional purchase.
The FAIR Plan covers fire; owners add a DIC policy and general liability
What a building of 5 or more units on the FAIR Plan carries. Everything above the base layer comes from private carriers.
Read the diagram as text
- Earthquake (optional): commercial market; the deductible is a percentage of insured value.
- Difference in conditions (DIC): water damage, theft and other perils the FAIR policy leaves out. Some include liability. Private carrier, through your broker.
- California FAIR Plan commercial policy (base layer, property coverage only): fire, lightning and internal explosion; vandalism optional. Buildings of 5+ units, up to $20M per building and $100M per location.
- General liability and umbrella, a separate policy alongside the stack: injury and property damage claims against the owner; the FAIR Plan sells no liability coverage. Private carrier, through your broker.
Since 07/26/2025 the FAIR Plan writes up to $20M per building and $100M per location. That high-value option is temporary: it sunsets in 2028, and policies written by then may run about a year longer.
As of 06/30/2026 the FAIR Plan had 9,104 commercial habitational policies under $20M of exposure statewide, 3,202 of them in LA County. About 24,000 policies left the FAIR Plan in April and May 2026, and the Department of Insurance advises policyholders to shop the market regularly. None of the 31 current policies that show the market is a FAIR Plan policy, and one owner in our files reports taking two buildings off it after electrical upgrades. If your building is on the FAIR Plan, have your broker check the private market at each renewal.
Is my building in a fire hazard zone now?
Possibly, even if it never was before. The State Fire Marshal's 2025 maps added Moderate and High zones across LA County and the City of Los Angeles where the old local map showed only Very High. Look up your parcel on the State Fire Marshal's map viewer, or on ZIMAS in the City of LA, before your next renewal.
The recommended maps were issued on 03/24/2025, and local governments must adopt them by ordinance without lowering any zone. Very High zones require defensible space, and High and Very High zones may bring Building Code Chapter 7A construction standards. The State Fire Marshal's viewer compares the old and new maps for your parcel. Nine buildings in our data sit in a fire hazard zone, mostly small foothill and Santa Clarita properties, too few and too different to measure a fire zone premium, so we claim none.
What is the difference between admitted and surplus lines insurance?
An admitted carrier is licensed by California and backed by the state guarantee fund. A surplus lines carrier is not, adds a 3% tax and a 0.18% stamping fee to the premium, and is where many older buildings end up. In our files it is also the single biggest difference in price. Whichever you get, read the habitability exclusion before you bind.
Age gets buildings declined. On an older Westside building this September, three carriers declined for age and two more declined on underwriting. The quotes that came back ran from $887 a unit for a package that excluded habitability to about $1,131 to $1,152 a unit for fuller coverage, one of them with a $250,000 habitability sublimit.
Admitted pricing can look very different. Three Valley buildings built 1988 to 1990, on one admitted blanket policy, renewed this year at $635 a unit across the policy, up about 15% by their broker's account. The two cases differ in carrier type, age and location at once, so the gap cannot be put on any one of them.
A building's loss history travels with it. A 1960s Valley building of about 30 units, with a tenant habitability suit on its loss runs since 2020, paid $25,184 for its 2024 to 2025 package and excess, with habitability excluded; for its 2025 policy year its coverage came as three separate surplus lines policies, $60,189 in all, or $1,881 a unit. Our files do not say why the carriers changed. Other loss runs in our files show a tenant habitability suit that cost a carrier about $20,700 to defend, and carriers declining older buildings for age, condition or location.
The habitability exclusion is the one to read first. In 24th & Hoffman Investors v. Northfield Insurance (2022), a California appeals court held that a habitability exclusion relieved the insurer of any duty to defend a tenant suit, every claim in it included. With the exclusion, the owner pays the defense and any judgment.
What do we pay on our own buildings?
We are small landlords too
We own three small buildings, two in Mid-City near Carthay and one in Sherman Oaks, and our renewals look like our clients'. This fall the 5-unit building was quoted at $1,538 to $1,614 a unit on a surplus lines program, and the 4-unit building renews at about $1,331 a unit with an admitted carrier.
The 5-unit building, rebuilt in 2020, was quoted for its November renewal at $8,072 with a $5,000 deductible, or $7,688 with a $10,000 deductible. We took the $5,000 deductible. The policy carries $1M per occurrence and $2M aggregate liability, ordinance or law coverage, and a $500,000 habitability sublimit.
The prior carrier had the year built as 1930. As Filip put it, "we were paying a premium since the other insurance company was looking at the year built as 1930." Before the renewal, the carrier's inspection counted 6 units and a different square footage than the policy showed, and the renewal waited until we confirmed 5 units.
The 4-unit building, built in 1932, is on a dwelling policy with an admitted carrier and renews 10/28/2026 at $5,324.75, with a $5,000 deductible.
Our own premium histories run the same way as our clients'. The 5-unit building paid $4,511 for its 2020 policy year, $6,591 for 2022, $6,874 for 2024 and $8,072 for 2026, up 79% in six years, through a change of carrier and a move to Zurich's surplus lines program. The 4-unit building's seller paid $2,480 in 2022 on a long-held policy with a much lower building limit; our first policy, with a higher building limit and an LLC surcharge, was $4,732, then $5,048 for the 2025 policy year and $5,325 for 2026. When we bought the Sherman Oaks building in 2021, the carrier's quote was subject to confirming that the electrical panels, wiring, plumbing, roof and heating had been updated, because the building was 68 years old.
"A wrong year built, unit count or square footage in a carrier's file costs real money, so check it at every renewal."
What will a buyer underwrite for insurance?
A buyer underwrites what it will pay for a new policy at full replacement cost, with a year of rents and lender-grade liability, not what the seller pays today. If your current bill sits well below the middle half for buildings like yours, expect the buyer's number to be higher, and expect it to show up in the price.
One large Santa Clarita Valley building reports about $409 a unit, from the owner's typed summary with no declarations page behind it (owner-reported, unverified). A buyer of a similar-size building nearby budgeted about $1,085 a unit this year, about $620 for property and $460 for liability. Expect a buyer of the first building to underwrite something closer to the second number than the first.
A full package also costs more than many current bills. One condo-mapped Valley building run as a rental paid about $870 to $890 a unit on its 2025 admitted policy, by the seller's figures. The replacement package quoted for a buyer ran $1,331 to $1,582 a unit, with 18 to 36 months of loss of income, ordinance or law, $1M and $2M liability limits, and a $10,000 or $25,000 deductible.
Thin coverage shows up in diligence: a building limit below replacement cost, a FAIR-only policy with no DIC, low liability limits, no umbrella, or a bill for part of a year. A lender will not accept those gaps, so the buyer prices them, and the seller's policy may not transfer anyway. Our buying guide and due diligence guide cover where insurance fits in the rest of the review.
How much does insurance change my building's value?
Divide the premium by the cap rate. Every dollar of insurance comes out of net operating income, so at a 6.5% cap rate each $10,000 a year of premium takes about $154,000 off the price, and at 5.5% about $182,000. Get a current full replacement quote before you price a sale.
| Cap rate | Value of $10,000 a year | Value of $100 per unit on 20 units ($2,000 a year) |
|---|---|---|
| 5.0% | $200,000 | $40,000 |
| 5.5% | $181,818 | $36,364 |
| 6.0% | $166,667 | $33,333 |
| 6.5% | $153,846 | $30,769 |
| 7.0% | $142,857 | $28,571 |
A worked example: a 20-unit building moving from $800 to $1,300 a unit adds $10,000 a year of expense, about $154,000 of price at a 6.5% cap rate and about $182,000 at 5.5%. At the median, a 10-unit building pays about $9,800 a year, about $151,000 of value at 6.5%. A 09/2025 Federal Reserve Board staff note found each added dollar of apartment insurance premium cut net operating income by 72 to 74 cents, with about a third passed through to rents.
Rent control limits how much an owner can recover: AB 1482 has no insurance exception, and the City of LA's RSO allows 3% through 06/30/2027 with no insurance pass-through (our RSO guide covers the exceptions). Our selling guide shows how buyers build the rest of the expense line.
What should I check on my declarations page?
Read these twelve lines before a renewal, a sale or a refinance. Together they show what a buyer, a lender and a claims adjuster will see: the carrier, the limits, the deductibles, the exclusions, and the facts the carrier has on file about your building.
- The carrier, and whether it is admitted or surplus lines
- Any FAIR Plan portion, and the DIC policy that pairs with it
- Term dates, and whether the bill is a full year or an installment
- The building limit and how it is valued
- Months of loss of rents or business income
- Ordinance or law coverage (A, B and C)
- Liability per occurrence and aggregate, and the umbrella
- Earthquake, and its deductible
- Deductibles for all other perils, water, wildfire and earthquake
- Exclusions and sublimits: habitability, assault and battery, water, mold, wildfire
- The mortgagee clause
- The unit count, square footage and year built the carrier has on file
What do insurers ask for, and how do I lower my premium?
Carriers quote faster and price lower on a building they can see clearly. Have the declarations page, 4 to 5 years of loss runs, the rent roll, system update dates and retrofit paperwork ready before your broker goes to market, then ask about credits, the deductible and bundling.
What carriers and brokers asked our clients for this year
From 2026 quote requests, inspections and renewals in our files.
The building
- How title is held
- Correct unit count, square footage and year built
- Roof, plumbing, electrical and HVAC update dates
- Soft-story retrofit status
Safety systems
- No Zinsco, Federal Pacific or Stab-Lok panels
- Seismic gas shutoff valves
- Licensed electrician's and plumber's letters after an inspection
- 5-year sprinkler test certificate, if sprinklered
History and income
- Current declarations page
- 4 to 5 years of loss runs
- Claims in the last 5 years
- Annual rental income or the rent roll
- On a purchase: the offering memorandum, and the buying entity's FEIN and mailing address
Ways to lower the premium without thinning the coverage:
- Clean loss runs and a sprinkler test certificate, both listed as possible credits on a quote this year.
- A bundled discount: one quote offered 5% off for an owner with that carrier's auto or home policy.
- Documented updates to the roof, electrical and plumbing, and soft-story retrofit paperwork. One owner in our files says a permitted electrical upgrade with breakers for each unit took two buildings off the FAIR Plan and cut the insurance from about $25,000 a year to about $7,000 a year a building, by the owner's account.
- Wildfire hardening and brush clearance: commercial FAIR Plan policyholders that qualify for all 12 wildfire discounts can get up to 13.8% off the wildfire portion of the premium.
- A higher deductible where the lender allows it; on our own building, $10,000 instead of $5,000 would have saved $384 a year.
- A broker who takes the building to several carriers, admitted ones first: in our files the market is the biggest single difference in price.
Old electrical panels are the requirement that shows up in sales. Insurance applications warn that many carriers will not take Zinsco or Federal Pacific panels. In our closed deals, a Zinsco panel found at inspection helped end one 8-unit escrow in Canoga Park, Federal Pacific panels, with carport damage, led to a $50,000 price request on a 6-unit North Hollywood building, and a Zinsco panel became a credit to the buyer of a Valley Village fourplex.
The broker our team works with is Stephen Gobrial of SGIB Insurance Services. On a 20-unit quote this year he flagged one of the easiest credits to miss: if it is, provide 5YR test, this is a large discount.
(818) 877-3663 · www.sgibinsurance.com
What insurance does my lender require?
Agency lenders want the building insured at full replacement cost, a year of rents, set liability limits and capped deductibles. Bank and portfolio lenders set their own terms; in our deals they ask for replacement cost, loss of rents and to be named as mortgagee.
Fannie Mae requires property coverage at 100% of insurable value on a special peril form, and caps the all other perils deductible at $50,000 for insurable value under $10M and $100,000 at $10M or more; Freddie Mac uses the same caps. Liability, business income and earthquake details are in the FAQ below, and our financing guide covers the rest of the loan.
Do I need earthquake insurance on an apartment building?
Usually only when a lender requires it. The state's residential earthquake program reaches buildings of up to four units; a building of 5 or more units buys earthquake cover in the commercial market, where the deductible is a percentage of the insured value rather than a flat amount.
No premium in our 69-building figures includes earthquake; owners who buy it carry a separate policy. LA's mandatory soft-story program covers pre-1978 wood-frame buildings of two or more stories with soft, weak or open-front ground floors. We found no published premium credit for the retrofit, and buildings on the soft-story list showed no clear premium difference in our files, though with Freddie Mac a completed retrofit that brings expected loss to 20% or less can remove the earthquake insurance requirement. Our soft-story guide covers the program.
Checklist
What to do this month
- Pull your declarations page and confirm the unit count, square footage and year built the carrier has on file, and whether the carrier is admitted or surplus lines.
- Place your building against the $709 to $1,331 middle half, and against the median for your carrier market, size and age in the calculator.
- Look up your parcel on the State Fire Marshal's 2025 map, or ZIMAS in the City of LA.
- Gather the file carriers ask for: 4 to 5 years of loss runs, roof, plumbing, electrical and HVAC update dates, the sprinkler test and retrofit paperwork.
- Ask your broker to market the renewal to several carriers, admitted ones first, and to quote the deductible options your lender allows.
- If a sale is in the next year, get a full replacement cost quote so your number matches the buyer's.
Methodology: how we counted 69 buildings
- Source
- Declarations pages, renewals, quotes, invoices, loss runs, operating statements and tax returns from LAAA Team deals, due diligence rooms, client files and mail, 2012 to 2026, plus two of our own three buildings. Owner-reported figures with no document behind them (12 of 69) are kept and flagged, and never used alone as a low or high.
- One figure per building
- Each insured building counts once, at its newest full-year premium: a current term first, then a premium paid (bound policy, renewal, prior-term policy or the seller's actual) over a quote, with a document preferred over an owner's word. A blanket policy over several buildings counts once at its combined per-unit and per-square-foot figure.
- What counts
- Full-year premiums for terms starting 2024 to 2026 on Los Angeles County apartment buildings. 109 more buildings whose newest premium is from 2015 to 2023 are in our files but not in these medians; they feed the same-building histories. Units and square footage come from the policy, rent roll, LAHD registration and the Assessor's record of every structure on the parcel.
- Groups and confidence
- Twelve or more buildings is reportable, 5 to 11 a small sample to read as directional, and under 5 is not shown alone. The likely range of each median comes from 10,000 resamples of its buildings: the all-building median of $982 has a likely range of $867 to $1,085, and the $1.11 per square foot median $0.94 to $1.31.
- Held the same
- The comparisons in "What makes one building cost more" come from a regression on the log of premium per unit across the 67 buildings with a known year built, holding the number of units, average unit size, age group, policy year and carrier market constant, with 90% ranges from 1,000 resamples of buildings. Surplus lines: about +40% (range about +5% to +85%); policy year 2026: about +25% (about +4% to +50%); built 1980 or later: about 15% less, with a range from about 30% less to 8% more; built 1960 to 1979 against before 1960: about +2%, with a range from about 20% less to 30% more. Adding the area of LA weakens the surplus lines and policy year estimates and leaves only the Westside clearly higher; with owner-reported figures left out, the Westside gap is no longer clear and Glendale, Pasadena and Burbank and Santa Clarita come out higher instead, so we claim no location premium. The workbook's own fuller model, which adds soft-story status, fire zone and policy form, gives surplus lines about +45% (range +8% to +94%).
- Core sets
- 21 buildings whose coverage is shown to include property and general liability, on a full term starting 2025 or later: median $1,331 a unit, likely range $1,034 to $1,544. 35 with a known package dated 2023 or later: $989, but it mixes years.
- Sensitivity
- Without the 12 owner-reported figures: $992 a unit across 57 buildings. Terms starting 2025 or later only: $1,043 across 48. The 12 owner-reported figures alone: $868.
- Same-building histories
- 23 buildings with three or more years of premiums on one building, 2012 to 2026, compared term to term; a carrier change is a different insurer on the new term. Earthquake policies, umbrella-only bills and partial years are left out. Steps under 5 buildings are not shown alone; 2014 to 2018 is shown pooled.
- What we left out
- Buildings outside LA County, single-family homes, condo-mapped buildings held as one rental, partial years, installments, earthquake-only and umbrella-only policies, blanket allocations we could not rebuild, buildings whose unit count or identity is not settled, our own underwriting assumptions, and insurance as a share of income, because the income figures we hold are our models, not sellers' statements.
- Limits
- 69 buildings is a sample, not a survey, and a difference between groups is not a cause. The market and policy form show on the documents for about half the buildings. The three highest per-unit figures are ledger or tax-return lines, not declarations pages, and may include more than one building or coverage. Figures are as of October 2026 and are refreshed each January.
| Group | Buildings | Median | Middle half | Per SF | Confidence |
|---|---|---|---|---|---|
| All buildings | 69 | $982 | $709 to $1,331 | $1.11 | Reportable |
| Core set: property and liability shown, 2025 or later | 21 | $1,331 | $989 to $1,564 | $1.59 | Reportable |
| Documents only (owner-reported figures left out) | 57 | $992 | $741 to $1,384 | $1.07 | Reportable |
| Owner-reported, unverified | 12 | $868 | $614 to $998 | $1.21 | Reportable |
| Admitted carrier | 19 | $813 | $685 to $1,013 | $0.85 | Reportable |
| Surplus lines carrier | 12 | $1,434 | $1,177 to $1,621 | $1.64 | Reportable |
| Policy year starting 2024 | 12 | $745 | $648 to $855 | $0.73 | Reportable |
| Policy year starting 2025 | 36 | $979 | $657 to $1,299 | $1.05 | Reportable |
| Policy year starting 2026 | 21 | $1,101 | $920 to $1,481 | $1.54 | Reportable |
| Core set, umbrella in the premium | 7 | $1,544 | $989 to $1,866 | $1.74 | Small sample |
| Core set, no umbrella | 12 | $1,102 | $986 to $1,352 | $1.11 | Reportable |
| 2 to 10 units | 31 | $952 | $745 to $1,173 | $1.04 | Reportable |
| 11 to 20 units | 11 | $989 | $731 to $1,289 | $1.20 | Small sample |
| 21 or more units | 23 | $1,047 | $665 to $1,432 | $1.42 | Reportable |
| Built before 1960 | 21 | $952 | $820 to $1,282 | $1.17 | Reportable |
| Built 1960 to 1979 | 22 | $1,187 | $693 to $1,543 | $1.46 | Reportable |
| Built 1980 or later | 24 | $811 | $648 to $1,051 | $0.73 | Reportable |
| San Fernando Valley | 27 | $782 | $627 to $1,013 | $0.76 | Reportable |
| Glendale, Pasadena, Burbank and the foothills | 13 | $867 | $800 to $1,047 | $1.22 | Reportable |
| Central LA | 11 | $1,039 | $905 to $1,357 | $0.99 | Small sample |
| Santa Clarita and Antelope Valley | 8 | $1,138 | $1,097 to $1,432 | $1.81 | Small sample |
| Westside and beach cities | 9 | $1,282 | $1,181 to $1,564 | $1.46 | Small sample |
Frequently Asked Questions
How much is insurance on a 20-unit apartment building in Los Angeles?
In our data, buildings of 11 to 20 units paid a median $989 per unit a year, about $19,800 a year for 20 units, or $1.20 per square foot; the middle half paid $731 to $1,289 a unit. That is 11 buildings, a small sample, and the carrier market and policy year move the figure more than size does.
How much is insurance on a 10-unit apartment building in Los Angeles?
In our data, buildings of 2 to 10 units paid a median $952 per unit a year, about $9,500 a year for 10 units, or $1.04 per square foot, across 31 buildings; the middle half paid $745 to $1,173 a unit.
Why does an older apartment building cost more to insure?
In our files, mostly because of the market that writes it. Seven of the 10 buildings from 1960 to 1979 with a known market were with surplus lines carriers, which paid a median $1,434 a unit against $813 with admitted carriers. Held to the same market, size and policy year, 1960s and 1970s buildings paid about the same as older ones.
What is a difference in conditions policy?
A difference in conditions (DIC) policy from a private carrier covers perils the FAIR Plan leaves out, such as water damage and theft, and some include liability. The FAIR Plan does not sell DIC.
Does the FAIR Plan sell liability coverage?
No. In December 2025 the Court of Appeal held that the FAIR Plan cannot be ordered to add liability to its homeowners policy, and in March 2026 the California Supreme Court agreed to review the case. For now, an apartment owner on the FAIR Plan buys general liability from a private carrier.
Why did my apartment insurance renewal double with no claims?
Carrier exits, the 2025 fires and new catastrophe and reinsurance pricing rules raised the whole California market. In our files, six buildings changed carrier for 2025 and the median premium rose 47%; two of them, one owner's buildings, paid 3.5 times the old premium. That is six buildings, not a market rate.
How much has apartment insurance gone up in Los Angeles?
On the same buildings with the same carrier, the median renewal was about 1% a year from 2014 to 2018, 4% to 9% a year from 2019 to 2023 and 18% for 2024, on 9 to 12 buildings a year. For 2025, six of the seven buildings with both years on file changed carrier, at a median increase of 47%.
Is State Farm writing apartment buildings again?
Not as of 10/2026. Its 09/18/2026 reopening filing covers residential policies and says nothing about apartment buildings.
Can my insurer drop my building after a wildfire?
Not for that reason alone, for one year. Since 01/01/2026 the moratorium also covers commercial property policies, apartment buildings included, in ZIP Codes within or next to a declared fire's perimeter; insurers can still cancel for other reasons, such as nonpayment.
What does surplus lines (non-admitted) insurance mean for me?
The carrier is not licensed by California, and your broker must give you a notice saying so. The broker charges a 3% surplus lines tax plus a 0.18% stamping fee, and the California Insurance Guarantee Association will not pay claims if the carrier fails; your recourse is the courts. In our files, buildings with surplus lines carriers paid a median $1,434 a unit, against $813 with admitted carriers.
Why won't my liability policy cover a tenant habitability lawsuit?
Many apartment liability policies carry a habitability exclusion, and a California appeals court held that one barred defense of the whole suit, every claim included. Under Civil Code 1942.4, a landlord who collects rent on a unit cited as substandard and left unrepaired 35 days after the notice faces actual damages plus $100 to $5,000, and the prevailing side recovers attorney's fees.
Why was my older apartment building declined?
Admitted carriers decline on age and building systems. On an older Westside building this year, three carriers declined for age and two more on underwriting. Older buildings often end up with surplus lines carriers.
Can I raise rent because my insurance went up?
Not above the cap. AB 1482 has no insurance exception, and the City of LA's RSO allows 3% through 06/30/2027. An RSO owner whose net operating income has fallen below the inflation-adjusted base year can file a Just and Reasonable application, where insurance counts as an operating expense and the declarations page is part of the packet.
How much liability coverage does my lender want?
On agency loans, Fannie Mae wants general liability of at least $1M per occurrence and $2M aggregate plus a $1M umbrella for buildings up to 250 units, with no assault and battery exclusion. Its guide also wants 12 months of business income and ordinance or law coverage on non-conforming buildings.
What deductible will my lender accept?
Fannie Mae caps the all other perils deductible at $50,000 for insurable value under $10M and $100,000 at $10M or more, and Freddie Mac uses the same caps. Bank and portfolio lenders set their own terms.
Can I get earthquake insurance from the California Earthquake Authority for my apartment building?
The state's residential earthquake program reaches buildings of up to four units, rentals included. A building of 5 or more units buys earthquake cover in the commercial market.
Is earthquake insurance required on an apartment loan?
Usually only when a lender requires it. Above 20% expected loss on a seismic report, Freddie Mac requires earthquake insurance unless a retrofit brings the loss to 20% or less. Fannie Mae treats a scenario expected loss of 20% or less as acceptable, requires mitigation, a retrofit, insurance or both above it, and will not lend above 40%.
How big is an earthquake deductible?
A percentage of the insured value, not a flat amount. Agency lenders cap it at 7.5% of insurable value (Fannie Mae) or 5% to 15% of coverage depending on the borrower's equity (Freddie Mac).
Does a soft-story retrofit lower my insurance?
We found no published rate credit; any credit is carrier by carrier, and buildings on the soft-story list showed no clear premium difference in our files. With Freddie Mac, a completed retrofit that brings expected loss to 20% or less can remove the earthquake insurance requirement.
How much does insurance affect my building's value?
Divide the premium by the cap rate: at 6.5%, each $10,000 a year of premium is about $154,000 of value, and at 5.5% about $182,000.
Is apartment building insurance tax deductible?
Yes, as a rental operating expense; a premium prepaid for more than one year is deducted year by year.
What this means for your next sale
If you are thinking about selling, we underwrite your insurance the way a buyer will, so the price you hear from us is the price that holds up in escrow.
See what your insurance line does to your valueSources
- CRED iQ analysis, Commercial Observer, 10/2026: commercialobserver.com
- State Farm, California new business update, 2023: newsroom.statefarm.com
- State Farm, update on California (commercial apartment non-renewals), 2024: newsroom.statefarm.com
- California Department of Insurance, home insurers move to reopen, 2026: www.insurance.ca.gov
- Insurance Journal, Farmers resumes commercial habitational applications, 05/14/2024: www.insurancejournal.com
- Farmers Insurance, business rating plan filing, 07/31/2026: newsroom.farmers.com
- Insurance Journal, Verisk wildfire loss estimate, 01/22/2025: www.insurancejournal.com
- California Department of Insurance, $22.4B in insurance payments, 2025: www.insurance.ca.gov
- California Department of Insurance, FAIR Plan $1B assessment, 2025: www.insurance.ca.gov
- 10 CCR 2644.4.5, catastrophe models in ratemaking: www.law.cornell.edu
- 10 CCR 2644.25.1, net cost of reinsurance: www.law.cornell.edu
- 10 CCR 2644.25.3, commercial writing commitment: www.law.cornell.edu
- Marsh, Global Insurance Market Index Q2 2026: www.marsh.com
- California FAIR Plan, commercial program: www.cfpnet.com
- California Department of Insurance, FAIR Plan high-value limits, 2025: www.insurance.ca.gov
- California FAIR Plan, difference in conditions: www.cfpnet.com
- Assembly Insurance Committee, California FAIR Plan Assn. v. Lara (12/05/2025): ains.assembly.ca.gov
- California Supreme Court, weekly summary, review granted in S294806 (03/11/2026): supreme.courts.ca.gov
- California FAIR Plan, commercial policies by category, as of 06/30/2026: www.cfpnet.com
- California Department of Insurance, FAIR Plan growth slows below 2%: www.insurance.ca.gov
- California FAIR Plan, wildfire hardening discounts, 11/15/2025: www.cfpnet.com
- LAFD, 2025 fire hazard severity zone map recommendation: lafd.org
- LA County Board of Supervisors, fire hazard zone maps: file.lacounty.gov
- Government Code 51182, defensible space: california.public.law
- League of California Cities, 2025 LRA fire hazard maps for LA County: lcf.ca.gov
- State Fire Marshal, fire hazard severity zone map viewer: experience.arcgis.com
- California Department of Insurance, Bulletin 2026-6, one-year moratorium: www.insurance.ca.gov
- California Department of Insurance, commercial insurance guide: www.insurance.ca.gov
- Surplus Line Association of California, disclosure statement: www.slacal.com
- Surplus Line Association of California, state tax: www.slacal.com
- Surplus Line Association of California, stamping fee: www.slacal.com
- 24th & Hoffman Investors v. Northfield Insurance (2022): caselaw.findlaw.com
- Civil Code 1942.4: california.public.law
- Federal Reserve Board, FEDS Notes, insurance costs and pass-through to rents, 09/2025: www.federalreserve.gov
- Civil Code 1947.12 (AB 1482): california.public.law
- LA Housing Department, renter protections: housing.lacity.gov
- LA Housing Department, Just and Reasonable application packet, 2026: housing.lacity.gov
- Fannie Mae Multifamily Guide, property insurance: mfguide.fanniemae.com
- Fannie Mae Multifamily Guide, deductibles: mfguide.fanniemae.com
- Fannie Mae Multifamily Guide, seismic: mfguide.fanniemae.com
- Fannie Mae Multifamily Guide, full PDF (effective 09/28/2026): mfguide.fanniemae.com
- Freddie Mac Multifamily Guide, chapter 7 insurance: mf.freddiemac.com
- Insurance Code 10087: california.public.law
- California Department of Insurance, earthquake insurance for commercial properties: www.insurance.ca.gov
- LADBS, soft-story retrofit program: dbs.lacity.gov
- IRS Publication 527, residential rental property: www.irs.gov
Your insurance broker quotes your actual policy. This article is market information from LAAA Team deals and files and public sources, not insurance or legal advice. Figures are from 2024 to 2026 policies, quotes and operating statements, with older years used only for same-building histories; client names and addresses are withheld.