Oct 3, 2025
Winter is coming, and for multifamily owners, “slip-and-fall season” is no joke. What once might have been a modest claim (say, $40–$60K) is now routinely pushing into six figures, and even jury verdicts in the millions are showing up. Couple that with insurance premiums rising at rates many haven’t seen before, and you’ve got a serious threat to NOI, asset value, and insurability.
If you manage, invest in, or insure multifamily property, it's time to see slip-and-fall risk not as a liability footnote, but as a core financial exposure.
The Growing Slip-and-Fall Crisis
1. Claims Are More Common and More Expensive
Slip, trip, and fall incidents remain among the most frequent premises liability claims in multifamily.
What was once a modest settlement is often now in the six figures in many markets.
Some properties are seeing liability verdicts in the millions when negligence is proven or documentation is weak.
In common liability sectors, carriers are pointing to increased severity — not just claim counts — as a macro driver of rate hikes.
2. Insurance Premiums Are Exploding
According to the Minneapolis Fed, multifamily insurance premiums increased ~14% (2021→22), ~22% (2022→23), and ~45% in certain portfolios more recently. Federal Reserve Bank of Minneapolis
A First American blog notes that commercial property insurance (including multifamily) saw premium hikes in 2024 alone at a 45% annual rate in some cases. First American Blog
Globest reports that for the worst-performing 1% of properties, insurance costs have climbed from ~7% of revenue in 2018 to ~13% now. Globest
Moodys reports that in some markets, YOY increases in CRE insurance cost have exceeded 17%. Moody's
Rising premium burdens are pressuring NOI and, by extension, property valuations.
3. Root Causes: Why Slips Are So Dangerous
Icy or wet walkways, entry zones, or parking lots (especially in winter)
Uneven surfaces, cracked sidewalks, broken stairs or decking
Poor lighting in walkways, entry points, stairwells
Neglected maintenance (loose handrails, worn floors, puddles, leaks)
Design & foot traffic load — older buildings, heavy corridors, and amenity zones see more wear
These are largely preventable if addressed proactively. The challenge is being consistent and defensible.
Stakes for Owners: Impact on NOI, Value, and Risk
Direct Costs Hit NOI
Deductibles, legal defense, settlement payouts all reduce cash flow directly.
In many cases owners “absorb” small claims to avoid damaging their loss history.
A severe claim that crosses policy limits might force owners to pay out of pocket.
Premium Pressure
Carriers respond to loss trends by raising rates, adding surcharges, tightening terms, or refusing renewal.
In markets with steep rate inflation, insurance has become one of the fastest growing expense lines.
As carriers pull back, owner/operators may have to accept less desirable coverage, higher deductibles, or surplus lines pricing.
Value and Underwriting Risk
NOI is the basis for valuation — as expenses rise, value falls.
Some markets already show property value declines or re-trading driven by insurance/expense shocks.
Buyers underwrite insurance line items more closely now; properties with bad slip-and-fall histories may face tougher valuation or renegotiation.
Examples & Legal Landscape (What’s Happening Now)
A tenant in a multifamily common area was awarded $4 million after slipping on ice in a poorly maintained walkway (as cited in a loss control strategy blog). AssuredPartners
Casualty risk analysts observe that multifamily liability portfolios now carry more $1M–$5M claims, especially for serious injuries or negligence. RPSIns
In LIHTC and affordable housing, property insurance costs increased between 9.6% and 33.5% annually in some markets from 2018–2021. Novoco
Insurance expenses per unit have doubled (in some markets) when measured in cost per square foot or per quarter metrics over several years. Prea Quarterly
These examples illustrate the scale of what’s possible — and what’s at stake.
Why Many Owners Don’t Fix It (or Don’t Win When They Do)
They don’t know where to start — there are many possible hazards, and resources are limited.
They fix problems, but fail to document the preventive actions in a way carriers/courts accept.
They pay small claims out-of-pocket to avoid filing and damaging loss history.
They lack strong processes for inspection, maintenance, and monitoring.
Underwriters may demand documentation or have stringent audit requirements that many operators can’t meet.
The Path Forward: Prevention + Proof Strategy
To protect NOI, preserve value, and maintain insurability, owners must adopt a defense infrastructure mindset — not just react to incidents. Here are key strategies:
Regular audits & inspections of high-risk areas (walkways, stairs, parking, entry zones)
Hazard remediation — fix hazards promptly (slip-resistant surfaces, lighting upgrades, structural repair)
Snow & ice management plans — consistent, timely removal, documented service, salt/sand protocols
Lighting & visibility upgrades — ensure walkways, stairs, common paths are well-lit
Incident reporting & documentation protocols — photos, timestamped logs, witness statements
Digital, immutable records — auto-logging inspections and preventive actions so you have proof in claims
Vendor contracts with indemnification — require contractors to carry liability and contractually responsible for safety zones
Engage brokers/insurers proactively — share your risk mitigation efforts, negotiate credits or relief
Train teams & residents to report hazards early
Pilot a small intervention (e.g. winter slip-risk alert system) in a subset of properties to test ROI and build defensibility
How FlexWurx Fits In
At FlexWurx, our defense management platform is designed to help owners operationalize this defense strategy:
Automatically log preventive actions (e.g. winter warnings, salt events) and tie them to specific properties
Alert operators ahead of hazard windows (freeze, snow)
Provide immutable audit trails carriers and court will accept
Make day-to-day safety management part of your operations — not a separate system
In short, we aim to make the “proof” side as easy as the “prevention” side.
Call to Action
If you’re an owner/operator, insurer, or investor in multifamily, here’s a starting point:
Evaluate your slip-and-fall exposure this winter
Ask: do you have defensible documentation for every preventive action?
Pilot a safety + documentation workflow in a subset of your buildings
Use the data to negotiate, defend, or underwrite better
I’ll be sharing more data, case studies, and workflows in upcoming posts. If you want to learn more, feel free to reach out: david@flexwurx.com