Challenges with Getting Building Insurance in Todays Market

​Securing Building Insurance has become significantly more complex in recent years. Whether you’re a property owner, landlord, or business with physical premises, you’ve likely noticed that premiums are climbing, underwriting requirements are tightening, and insurers are asking more questions than ever before. Below are key challenges shaping today’s Building Insurance landscape and what you can do to stay ahead. 

Rising Construction and Repair Costs Material
Prices and labor costs have surged due to global supply chain disruptions and inflation. This directly impacts replacement cost values (the amount it would take to rebuild your property after a loss). If your policy limits are based on outdated valuations, you may find yourself underinsured. Insurers are now insisting on updated appraisals and higher replacement cost estimates, which drive up premiums.

​Increased Catastrophic Weather Events
Extreme weather is no longer the exception, it’s the expectation. From hurricanes and wildfires to hailstorms and floods, the frequency and severity of natural disasters have led insurers to reduce capacity or pull out of high-risk regions altogether. Property owners in these areas face fewer carrier options, higher deductibles, stricter underwriting, and, in some cases, difficulty finding coverage at all.

Aging Infrastructure and Deferred Maintenance
Older buildings bring their own set of challenges. Aging electrical systems, outdated plumbing, and roofing beyond its life expectancy increase the risk of claims. Insurers are scrutinizing maintenance records and requiring property owners to make updates before offering terms or renewing policies. If updates haven't been made recently, carriers might limit coverage and only offer actual cash value instead of replacement cost. 

Stricter Underwriting and Data Demands
Insurers now rely heavily on detailed property data. This can include, construction type, roof age, sprinkler systems, plumbing updates, HVAC updates, even local fire department response times (protection class). Incomplete or inaccurate information can delay quotes or result in denied coverage. The industry’s shift toward data-driven underwriting means property owners must be proactive about maintaining accurate records and reports.

The key for Property Owners is to Stay Proactive:

• Update building valuations regularly
• Maintain property condition reports
• Invest in risk mitigation (like roof reinforcements or upgraded systems)
• Partner with an experienced insurance broker who understands emerging trends

In an era where risk is constantly evolving, those who adapt early will be best positioned to secure reliable coverage at competitive rates. If you have questions about Building Insurance or any other type of Business Insurance, please feel free to contact me. 

Jason Matison
Commercial Insurance Agent
​Austin, Texas