Trends Affecting Commercial Property Insurance
Published in
All Insurance Industry Insights on Thursday, July 17, 2025 by Aden Zwanziger
Commercial property insurance plays a key role in protecting your business’s buildings, equipment, and physical assets. But with rising costs and evolving risks, it’s more important than ever to understand what’s driving changes in the market.
Here are a few trends currently affecting commercial property insurance:
More Severe Weather Events
Extreme weather is happening more often and causing greater damage. This leads to more claims and higher costs for insurance companies, which can impact premium rates.
Rising Costs to Rebuild
Between inflation, labor shortages, and supply chain delays, it’s becoming more expensive to repair or replace damaged property. If your policy limits haven’t been updated recently, you may not be fully covered.
Labor Shortages
A continued shortage of skilled workers means longer project timelines and higher construction costs—both of which can affect claim expenses and insurance pricing.
Reinsurance Pressures
Reinsurance is the insurance that protects insurance companies. As extreme weather and inflation drive up reinsurance costs, those expenses are passed down, impacting what businesses pay for coverage.
Risk of Underinsurance
With property values and construction costs rising, many businesses are unknowingly underinsured. Ensuring your policy reflects current replacement costs is critical to avoiding surprises after a loss.
How PDCM can help:
Staying informed about these trends can help your business avoid coverage gaps and make smarter insurance decisions. At PDCM, we’re here to guide you through these changes and help you protect what matters most.
We’re grateful for your continued trust in PDCM. If you have any questions or need further clarification, please contact Aden at 319-274-6688 or azwanziger@pdcm.com
Written by
Aden Zwanziger