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There are more than 482,000 apartment and condo complexes in the US, according to preliminary data compiled by MarketStance, Middletown, CT, ranging from the small (1-4 unit) multiple family houses to the larger complexes that often seem to go on for miles. The vast majority (83%) are operated by non-employer entities that take care of the property themselves or use outside contractors, but these units account for only an estimated $233 million of the more than $1 billion in premiums written in this market. Middle market and national account enterprises represent less than 1% of the total number of complexes, but account for $284 million in premiums written. A chart on all apartment buildings and condominiums is presented.

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There are more than 482,000 apartment and condo complexes in the country, according to preliminary data compiled by MarketStance, Middletown, Connecticut, ranging from the small (1-4 unit) multiple family houses to the larger complexes that often seem to go on for miles. The vast majority (83%) are operated by non-employer entities that take care of the property themselves or use outside contractors, but these units account for only an estimated $233 million of the more than $1 billion in premiums written in this market. Small commercial enterprises account for 16% of the apartment and condo enterprises in the country, but represent $489 million in premium. Middle market and national account enterprises represent less than 1% of the total number of complexes, but account for $284 million in premiums written.

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There are five basic SIC codes that comprise the apartment and condo market, and the figures cited reflect the information provided in those five SIC areas. (See the accompanying chart.)

However, as Fritz Yohn, information engineer and founder of MarketStance, points out, the numbers do not completely reflect the total market. "There are fully another 35% of apartment buildings out there that are owned by entities that are classified in SIC codes that fall outside the five lessors and real estate SIC codes. The two biggest are life insurance companies and not-for-profits.

"The understatement in the condo and co-op SIC codes is even greater. When we compared the values being reported against the 2002 economic census that recently was released, we found that what is reported in the SIC codes is just the value of the common areas, such as the community center and swimming pools. This clearly does not represent the total exposure for these operators when it comes to purchasing various commercial insurance coverages."

MarketStance has gone back to the Census Bureau to determine the total number of units available in various areas in each state and then has calculated the average rent in the area in order to determine how much additional premium is being produced that is not reported in the SIC codes.

The following data represent counts before adjusting for the above.