We have seen historic inflation rates (8.5%) this year. What does this mean for the commercial property insurance market—heightened premium costs and potential underinsurance concerns!
Supply chain disruptions and soaring construction material pricing has inflated the cost to rebuild or repair properties. Your commercial property could be underinsured. True and accurate replacement cost valuations are a significant problem as underwriters face cost fallouts from underreported property valuations.
Unsure whether your property is fully covered for a true replacement cost? Start with your broker to:
- Analyze your commercial property’s value. Verify the estimate is accurate, especially as values continue to increase.
- Update your policy’s value for a true/full replacement cost.
- Review all coverage terms and conditions to ensure policy limits and sub-limits are adequate to cover a loss in light of current inflationary conditions.
- Implement risk prevention strategies to prevent losses and better manage your overall cost of risk
While the economy continues to suffer from historic inflation, you’re not in this alone. To learn more about how commercial insurance is adjusting to current inflation trends, connect with a member of our team.
Learn more - Mitigating Inflation’s Impact on the Commercial Insurance Market