It is estimated that the cost of commercial buildings has just about doubled over the span of 2023 to 2023. When this increase is extrapolated, this could mean that commercial building owners will have to pay as much as $4,890 every single month for insurance. The driving factor behind this massive increase is the high cost of claims in recent years. It is estimated that 2023 had 28 major weather events, including storms, floods, and extreme heat. It is estimated that the recovery cost for this will be just shy of $93 billion. Worst of all, the frequency of these extreme weather events is only expected to increase. However, despite the poor forecast, it is possible to keep your policy premiums manageable.
A building’s risk profile is just as important as market conditions to an insurance company. So, staying on top of your commercial building’s maintenance will be reflected in your policy premiums. In fact, getting an annual roof inspection done often serves as a credit on your insurance policy. This inspection report also helps you identify any deficiencies for your roof and can be repaired before they become a major claim. A favorable inspection can even open the door to finding more favorable insurance terms, in terms of both price and coverage.
Ultimately, there is not much that can be done in terms of market condition, but there is a way to make a difference. Staying on top of proactive roof inspection and maintenance is the best way to keep your policy’s premiums as low as possible.
Source: Kato Roofing