The increasing frequency of severe weather events, especially in the past five years, is now accelerating the pullout of major insurance companies from states including Florida, Louisiana and most recently California, with some analysts now deeming those areas and other parts of the country nearly uninsurable.

The effects of skyrocketing premiums with coverage that’s hard to find are expected to spread from the hardest-hit homeowners to commercial property owners and tenants.

Climate change and its financial costs are increasingly becoming an issue well beyond the nation’s coastal states. Just in the past few weeks, Vermont and Pennsylvania were inundated with catastrophic floods, and triple-digit temperatures spanning more than two weeks endangered an estimated 100 million residents in several states, including Arizona, Texas and Florida.

Take retail properties in Miami, a city at risk of hurricanes. The Moody’s report shows that rent increased at an average rate of 1.4% between 2017 and 2022. The cost of insurance increased by 7.5%. In Denver, where wildfires rage nearby, the cost of retail rent increased by 0.4% annually in the same time frame; the cost of insurance increased by 9%. The numbers are similar in cities across the country.

To keep commercial insurance costs down, Property owners can improve drainage to prevent flooding or install a new roof—to make them more resilient to climate-linked events or replace old balcony doors and windows with hurricane resistant windows. Some industry experts are calling for insurers and regulatory bodies to offer financial incentives to make that happen faster.

How climate change will reshape commercial real estate as we experience more extreme weather in the coming years remains to be seen.

The Consumer law Office (CLO) is a client centric, First Party Property Law Firm, that is committed to delivering excellent customer service. Our Property Damage Attorneys fight insurance companies on behalf of our residential and commercial policyholders and public adjusters, to get the relief they are entitled to. We have helped numerous home and business owners successfully recover the compensation they deserve.

Your insurance company hires experts to protect their interests; your representation should be no different.

 

We only get paid when you get paid by your insurance company.

CONTACT CLO TODAY! 305-940-0924 FOR A FREE COMPREHENSIVE PROPERTY DAMAGE ASSESSMENT AND CONSULTATION.

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