How Insurance Costs Are Reshaping Real Estate Investment

In episode 74 of The Business of Real Estate, Lucas and Luna dive into a fast-moving force that is quietly reshaping property values across the country: the skyrocketing cost of insurance. From Florida condos seeing premiums triple to California apartment buildings losing coverage entirely, insurance is becoming a deal-breaker for investors. Lucas breaks down the numbers: how insurers are pulling out of high-risk states, how replacement-cost inflation is driving up premiums, and how cap rates need to account for a new baseline expense. Luna brings a real-world example from her own portfolio — a duplex in Texas where insurance jumped from $2,400 to $5,800 in two years. They discuss how institutional buyers are building internal insurance captives, how coastal commercial properties are seeing NOI compression, and what this means for underwriting in 2026. If you're buying or selling real estate, insurance is no longer a footnote — it's a lead metric. #RealEstate #PropertyInsurance #InsuranceCosts #CommercialRealEstate #ResidentialRealEstate #ClimateRisk #FloridaRealEstate #CaliforniaRealEstate #TexasRealEstate #CapRate #NOI #Underwriting #InvestmentStrategy #Business #FexingoBusiness #BusinessPodcast #RealEstateInvesting #InsurancePremium Keep every episode free: buymeacoffee.com/fexingo