Protecting Your Investment from Risk and Financial Loss
As a commercial landlord, your property is more than just bricks and mortar — it’s a major investment and a source of income. Yet many property owners underestimate the risks involved in leasing commercial spaces without the proper insurance. In today’s changing climate, economic shifts, and rising construction costs, not having commercial property insurance can lead to devastating financial consequences.
Rising Insurance Costs Reflect Increased Risk
Commercial property insurance premiums increased by an average of 18.3% in 2023, and the trend continues into 2024 due to increased claims from natural disasters, vandalism, and liability suits (source: Insurica). In the U.S. alone, there were 24 major natural disasters in 2024 that caused over $1 billion each in damages (source: DOM Risk).
Despite the growing risk, studies show that 43% of small business owners have never had insurance coverage, leaving their property exposed to fire, theft, storms, and liability issues (source: Gitnux.org).
Being Uninsured Can Cost You
According to The Hartford, 40% of small businesses will file a property or liability claim over the next 10 years. The average cost of a fire-related insurance claim? Over $35,000. If you’re uninsured, that’s money directly out of your pocket.
Additionally, many landlords believe that tenants’ insurance covers the building structure — but it doesn’t. Only a commercial property insurance policy can protect your physical asset and cover expenses like repairs, business interruption, and legal defense.
A Growing Insurance Market
The global landlord insurance market was valued at $20.7 billion in 2023 and is projected to grow to $40.9 billion by 2032 (source: Allied Market Research). This growth reflects rising awareness among landlords who understand the importance of protecting their assets.
Don’t Wait for a Claim to Learn the Hard Way
Whether you own an office complex, warehouse, retail space, or multi-tenant building, comprehensive commercial insurance is a must. From natural disasters to tenant lawsuits, the risks are too high to go without coverage.
For more info, text or call Monreal Insurance Solutions at (909) 757-1311.