Property Insurance Strategies for 2024

Recent economic and climatic conditions have made it difficult for commercial property owners. Despite improved reinsurance capacity since 2022, underwriters still face headwinds, resulting in less favorable conditions than in previous years. Inflation, rising material costs, and labor shortages have exacerbated construction delays and increased business interruption costs.

Geographic and climatic factors have driven property insurance prices up, especially in regions prone to hurricanes, floods, wildfires, tornadoes, and winter storms. The U.S. saw 28 weather-related disasters in 2023 alone, causing over $100 billion in damages. Since 1980, total losses from weather and climate disasters have reached approximately $2.7 trillion.

Commercial property insurance rates are now influenced by factors such as construction year, materials used, and the property’s location. Property owners should ensure their coverage is adequate and cost-effective. It’s crucial for property owners to scrutinize their policies and take steps to lower their risk profile to secure the best coverage.