In just a decade, insurance premiums for commercial buildings have nearly doubled. By extrapolating this trend to 2030, this means that monthly premiums for these types of buildings could be $4,890 every month. From the insurer’s perspective, the reason for the price increase is the high number of claims. In 2023 alone, there were 28 major weather events, which cost an estimated $1 billion from their insureds. Worst of all, the number of major weather events could be as high as 42 in 2030. However, in spite of worsening insurance price predictions, it is possible to keep insurance premiums lower for commercial buildings.

A building’s characteristics matter just as much as market conditions when it comes to the pricing of an insurance policy. For this reason, proactively maintaining your roof is one of the most cost-efficient ways to keep insurance costs under control. Getting annual roof inspections will provide you with a credit on commercial insurance policies, and will help you identify any problems on the horizon as a building owner. Furthermore, a favorable inspection report enables you to find more favorable insurance terms, in terms of both price and coverage.

Ultimately, insurance prices are bound to go up due to current market conditions. However, if you want to get a handle on your commercial building insurance premiums, proactively maintaining your building’s roof is the best way to go about it.

Source: Kato Roofing