As a commercial building owner, the unexpected cost of insurance seems to be getting higher year after year. In 2013, it was estimated that the monthly premium for a building was $1,558, whereas it’s now $2,726 in 2023. One of the largest factors driving these costs higher is the plethora of extreme weather events in recent years. In 2023 alone, there were 19 severe storms, 4 floods, and a variety of heat and cold waves. As a result, the insurer’s recovery costs are $92.9 billion. This trend is only expected to get worse, as 2030 can have up to 42 extreme weather events. So how can policyholders mitigate some of these costs?
Most insurers offer a credit to building owners who have their building inspected annually. Moreover, annual inspections can reveal problems before they become catastrophic. In turn, this means problems can be resolved before an incident, and prevent claims from being reported to the insurance.
Ultimately, rising insurance costs are impossible to avoid entirely. However, there are some steps that you can take. Ensuring that there is thorough documentation for annual inspections and taking the proper steps to stop roof problems before they happen makes it possible to keep those insurance premiums under control.
Source: Kato Roofing
