When it comes to insuring a commercial building, the costs of insurance can quickly add up for building owners. In fact, the costs of insurance nearly doubled from 2013 to 2023 and is expected to see the same cost increase to 2030. But what exactly is driving these substantial price increases?
One of the major reasons is the increasing cost of insuring buildings. It is estimated that there were 28 extreme weather events in 2023. As a result, the recovery costs are estimated at $92.9 billion. To manage this risk, carriers have to either raise prices to compensate or vacate risk-prone areas. Unfortunately, this problem will get even worse in the future as there could be up to 42 extreme weather events.
Fortunately, one of the best ways to keep insurance costs down on the building-owner level is to keep your building protected for these extreme weather events. In particular, proactively maintaining a roof and providing annual inspection reports is often a credit on insurance policies. It also ensures your building is for multiple insurers, meaning you can shop around and find the best price.
Ultimately, rising insurance costs are unavoidable. However, it is possible to keep insurance costs under control. Taking proactive maintenance and staying on top of annual inspections will help ensure the longevity of your commercial building and save you money on monthly insurance premiums.
Source: Kato Roofing