From 2013 to 2023, there was approximately a $1,168 jump in monthly insurance premiums for commercial buildings. Unfortunately, this figure is only expected to get even higher as time goes on. One of the main driving factors for this is the plethora of large-scale weather events that is causing large losses for insurers. In 2023 alone, there were 28 extreme weather events, including 19 severe storms and 4 floods. Consequently, insurance companies saw losses of $92.9 billion. In order to recover this money, insurers were forced to increase the monthly premiums across the board for policyholders. 

Fortunately, there are some ways to combat these price increases as a policyholder. Since claims are driving premiums higher, avoiding claims is essential. By proactively maintaining a commercial building, you can prevent easily avertible claims like electrical fires and water damage. Simultaneously, proactively maintaining a building makes it more favorable to the insurer and will also likely result in better prices. Most insurers even give a policy credit for annual inspections and a more favorable building is easier to shop around for the best possible rate. Ultimately, while natural disasters will inevitably impact insurance rates, it’s possible to keep premiums in check by diligently maintaining your commercial building. 

Source: Kato Roofing