Property insurance has quietly become one of the most consequential line items in real estate underwriting. Premiums across Georgia and much of the Southeast have risen substantially over the past several years, driven by increased construction costs, more frequent severe weather events, and a harder reinsurance market overall. For investors accustomed to treating insurance as a minor, predictable expense, that assumption no longer holds.

The practical impact shows up directly in net operating income. A property that once carried a manageable insurance line can see that expense rise by double digits year over year, and if underwriting doesn’t account for that trajectory at acquisition, the deal’s projected returns can erode quickly. This is particularly true for older properties, coastal-adjacent assets, and buildings with outdated roofing or electrical systems that carriers increasingly flag during underwriting.

Serious operators have responded by building more conservative insurance assumptions into their acquisition models, budgeting for renewal increases rather than assuming flat costs, and prioritizing capital improvements — roof replacements, updated electrical panels, impact-resistant materials — that can meaningfully improve a property’s insurability and premium over time.

At Steve Ford, insurance cost trends are built directly into our underwriting from day one, and our Improvement & Maintenance division works proactively on the physical upgrades that keep our portfolio’s risk profile — and insurance costs — in a favorable position relative to the broader market.