2018 property insurance market trends impacting real estate owners - by Jay Driscoll

Over the past few years, real estate owners have experienced softer insurance market conditions with favorable rates and coverage terms. 

The 2018 market looks to be a bit more challenging. The global natural catastrophes in 2017 have resulted in estimated insured losses of over $100 billion. While New England was fortunate to escape the flooding, wildfires and mudslides experienced in other parts of the country, the industry as a whole will look to recapture some of the losses through rate increases and stricter underwriting guidelines. 

In addition, locally we experienced multiple devastating fires to frame residential projects as they were near completion and occupancy. These losses will impact the pricing and availability of coverage for frame builders risk projects as well as property coverage for frame residential structures. 

Commercial property insurers are looking for double-digit rate hikes in 2017 catastrophe exposured areas. However, competitive market conditions are still available reducing the actual increases to low-mid single digit increases. The effect on New England real estate is less predictable and buyers will still face challenges. For organizations approaching insurance program renewal that have maintained a long-term carrier relationship, aggressive marketing may be required and may involve displacing incumbent insurers to attain best rates and conditions.

The Driscoll Agency is a family operated commercial insurance specialist located in Norwell, Mass. but servicing a wide geographical area. We are proudly affiliated with Cross Financial which has offices throughout New England and is the largest independently owned agency in the region. We are affiliated and partnered with the strongest national and regional insurance carriers. We pride ourselves on superior service and attention to customer detail along with an experienced claims management staff. If you are a property owner, please keep our agency in mind if you would like an alternate option. We can offer a professional review and opinion of your insurance program.

Jay Driscoll is the president of The Driscoll Agency, Inc., Norwell, Mass.