As Hurricanes Persist, Soaring Insurance Costs Hit Commercial Real Estate

Published On Oct 8, 2024, 5:00 AM

The article discusses the increasing insurance costs that are affecting commercial real estate owners and developers. Post-pandemic, many landlords are already struggling with high vacancies and debt. The rise in climate-related disasters has led insurance companies to raise rates significantly, especially in vulnerable coastal areas. This makes it difficult for property owners to secure necessary coverage, leading some properties to foreclosure due to prohibitive insurance costs. The insurance premiums for commercial properties have reportedly increased by an average of 11% nationwide, with some areas seeing hikes as high as 50% or even doubling in extreme cases.