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Property Owners to Face Higher Insurance

LOS ANGELES-Commercial property owners nationwide can expect a hike in insurance premiums this year as the 9/11 attack continue to take a stronghold on the economy. Premiums are projected to escalate from 40 to 70 percent.

By Peter Landau | Updated on January 04, 2002

LOS ANGELES-Commercial property owners nationwide can expect insurance premiums to rise this year as the effects of the 9/11 attack continue to ripple through the economy. Premiums may escalate from 40% to 70%, according to Jenny Jones, CEO of Elkins/Jones, an insurance brokerage firm that specializes in coverage for the real estate industry.

Commercial buildings that now pay 5 or 6 cents per sf for insurance need to budget for costs to go up as much as 7 or 8 cents psf, adds Jones. This increase is expected across the board for all types of properties. The inflated costs are to cover the potential billions of dollars in 9/11 claims. Higher premiums will be sought to make up for losses and insurance carriers will pass these on to property owners.

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