Authored by Sara Weathers

According to an article published by Business Insider, commercial property insurance rates increased at mid-year renewals. While it was expected due to inflation, these rising rates create uncertainty as to how it could affect primary pricing.

Many variables can affect property insurance rates. Inflation is the major variable at the moment. Combined with supply chain issues, it’s becoming harder for insurers to accurately estimate property values and replacement costs if the insured property is damaged.

Weather is another major variable. If there are any major hurricanes that hit the U.S. this year, it could also affect rates. The more catastrophes there are the more the catastrophe capacity that insurance companies have is pressured.

If you have any questions about how higher property insurance rates could affect your law firm, AdvoCap Insurance is always available to answer them!