Property Insurance Marketplace

Insured losses from natural disasters topped $120 billion in 2021.  The year was marked by devastating hurricanes, civil commotion, late year tornadoes and cold snaps in places like Texas and was second only to the $146 billion in losses from 2017, a year of very heavy hurricane activity in the Atlantic and Gulf of Mexico.  It also marked the second consecutive year with 20 or more billion-dollar economic loss events and the third year since 2017.  Total losses, including those costs not covered by insurance are estimated to be at $280 billion.

In response, many insurers are raising rates, reducing or excluding coverage, and in some places, have stopped providing coverage altogether.  On average, commercial property insurance rates raised almost 6% in the fourth quarter of 2021.  But operations with prior loss history or located in high impact areas saw increases of at least 10% to well over 30%. 

With inflation at record highs, companies will be paying close attention to valuations.  Labor and material costs continue to soar and the cost to rebuild will come as a surprise to many policyholders.  It’s important that policyholders work to increase replacement costs at each renewal so as to avoid any major adjustments at a future and potentially inopportune time.

If you are facing a difficult renewal for your Property coverage, we may be able to help. During a previous difficult insurance market Resource Partners developed a property purchasing group to leverage premium size and spread of risk while also negotiating more favorable rates and conditions. The Peace Church Property Insurance Trust now includes over $675 Million in insured property values with coverage extensions available such as wind/hail, flood, earthquake and the availability to obtain builders’ risk policies that will roll to the Property policy at completion.

While we cannot guarantee a proposal, we have been able to extend offers to facilities that might otherwise be in jeopardy as a single entity policy. We may also be able to offer Auto coverage as a separate policy with the same carrier.

If you have questions or would like to discuss this program, please contact Kathryn Daniels of Resource Partners at kathryn@resourcepartnersonline.org.