Per-Door Cost

Per-door cost is the most common metric apartment owners and property managers use to benchmark insurance expenses. It is calculated by dividing the total annual insurance premium (across all coverage types) by the number of apartment units in the property. This produces a figure that can be compared across properties, markets, and time periods.

While useful for budgeting and high-level comparisons, per-door cost has significant limitations as a benchmarking tool. A low per-door cost may reflect inadequate coverage, high deductibles, or missing coverage types rather than truly competitive pricing. Conversely, a higher per-door cost may indicate comprehensive coverage, low deductibles, and appropriate limits. Comparing per-door costs across properties without accounting for differences in building age, construction type, location, coverage scope, and deductible structure can be misleading.

Per-door costs vary widely across the industry. A newer garden-style property in a low-risk market might see per-door costs in the range of $250 to $500, while an older mid-rise in a coastal or hail-prone market could run $800 to $1,500 or more. Owners should use per-door cost as one data point among many when evaluating their insurance program, focusing primarily on whether the coverage is adequate and the terms are appropriate for their specific risk profile.