If you’re a property or business owner, you’re likely keeping an eye on insurance rates. Insurance is essential to protect your property, business, and assets. However, as we look to 2023, the outlook for insurance rates is not so rosy.
This article will discuss the rate increases you can expect for multifamily properties, commercial properties, and cyber liability insurance.
Insurance premiums are expected to increase by 20% to 50% for multifamily properties such as apartment buildings and duplexes. On the other hand, commercial property rates are set to increase by 10% to 20%. However, if you’re in an area prone to catastrophic perils like windstorms, earthquakes, or fires, your rates could increase by a staggering 75% to 200%. For example, if you pay $2,000 yearly for windstorm coverage, you could pay $3,000 to $4,000 next year.
For low-hazard zones with a low risk of catastrophic perils, rates are expected to increase by only 20%. General liability (GL) and workers’ compensation rates are projected to remain flat. If you add layers of coverage through an umbrella or excess liability policy, your rates could increase by 20%.
The area with the most significant projected rate increases is cyber liability insurance. Cyber policies are currently in flux, and rates could increase by 20% to 50% next year. Existing policyholders might see a minor increase of around $100 to $200 on their premiums, while new policyholders could face premiums that are 50% higher than those of existing policyholders. Insurers consider existing policyholders as a part of their family and assume they already have some knowledge of risk management practices. On the other hand, new clients might not be as well-versed in risk management.
It’s also crucial to ensure that you’re not underinsured. Sometimes, coverage can be less than what is needed to adequately protect the property owner or the company. Make sure you’re getting enough coverage and sufficient coverage for your risk. You don’t want to be in a position where the loss exceeds your policy limit.
In conclusion, insurance rates are expected to increase significantly in 2023, with the most significant rate increases projected for cyber liability insurance. Keep an eye on your policies and ensure you have enough coverage to protect your property and business.