Is your coverage keeping pace with your commercial property value?
Without continually assessing the value of your commercial property, rising labor and material costs could put your business at risk of being underinsured in the event of a major loss. Talk to your independent insurance agent to see how they can help your insurance coverage keep pace.
Sources: Verisk Analytics, 360Value Quarterly, Reconstruction Cost Analysis, Q4 2024
Is your coverage keeping pace with your commercial property value?
Without continually assessing the value of your commercial property, rising labor and material costs could put your business at risk of being underinsured in the event of a major loss. Talk to your independent insurance agent to see how they can help your insurance coverage keep pace.
Sources: Verisk Analytics, 360Value Quarterly, Reconstruction Cost Analysis, Q4 2024
Is your coverage keeping pace with your commercial property value?
Without continually assessing the value of your commercial property, rising labor and material costs could put your business at risk of being underinsured in the event of a major loss. Talk to your independent insurance agent to see how they can help your insurance coverage keep pace.
Sources: Verisk Analytics, 360Value Quarterly, Reconstruction Cost Analysis, Q4 2024
- Transcript
Is your business properly insured?
Up about 5%
Inflation, particularly building replacement cost inflation, is still above the average rate of 2-3% annually.
What could impact your insurance to value needs year to year?
- Renovations
- Improvements and betterments
- Long lead times (supply chain challenged)
- Machinery/equipment
- Inventory
While building replacement costs tend to make up the majority of property valuations, it is also important to factor in other kinds of value categories including equipment, machinery, improvements and betterments, which may already be included in real property values, and projected business interruption (BI) values.
Material composite costs increases year over year
- Concrete composite +8.5%
- Paint composite +5.1%
- Interior trim composite +2.2%
- Drywall composite +1.9%
Labor costs are up by...
- Concrete mason +28%
- Carpenter (general framer) +2.6%
- Electrician +1.4%
- Plumbers +1.7%
- Drywall installer/finisher +4.1%
Labor costs are now the primary driver of current above-average building replacement costs.
What can happen when your business is underinsured?
- Partial claim reimbursements
- Loss of customers
- Longer recovery periods
- Financing challenge
"In order to protect your business in the event of a significant loss, it is imperative to reassess and update your valuations at least annually. Over these past few years, we've seen unfortunate incidents of loss payments that did not cover the entire loss, due to inadequate limits. Work with your independent agent to ensure your valuations stay current."
Jessica Huss, Vice President, Commercial Property Underwriting
Source: Verisk Analytics, 360Value Quarterly, Reconstruction Cost Analysis, Q4 2024
All products are underwritten by 华体会 Insurance Company or one of its insurance company subsidiaries or affiliates (鈥溁寤徕�). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. For more information about 华体会 visit our website at www.hanover.com 漏2025 华体会 Insurance Group. All Rights Reserved.
Is your coverage keeping pace with your commercial property value?
Without continually assessing the value of your commercial property, rising labor and material costs could put your business at risk of being underinsured in the event of a major loss. Talk to your independent insurance agent to see how they can help your insurance coverage keep pace.
Sources: Verisk Analytics, 360Value Quarterly, Reconstruction Cost Analysis, Q4 2024