Skyrocketing insurance costs for commercial property have created a crisis in the industry, with insurance brokers at the center of frantic negotiations to secure coverage for projects. These rising prices are straining budgets in disaster-prone areas, prompting firms to reevaluate policies or take less coverage. Premiums have surged, with an 18.3% increase in Q2 of 2023 for commercial property insurance and a 26% increase in multifamily project insurance in the past year. Insurance brokers are working tirelessly to cobble together coverage from different carriers, but options are shrinking, and some firms are walking away from deals due to high insurance pricing. Additionally, reinsurers’ capacity has decreased, causing insurance companies to raise rates, which in turn impacts developers and property owners.
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If you’ve experienced double-digit insurance rate increases in the past year, contact us today where, as an independent agent, not beholden to any one insurer, we guarantee to shop your policies to over 20 top-rated carriers to ensure you receive the best coverage for the lowest rate.