How To Lower Your Commercial Real Estate Insurance Costs

If you’re like many commercial property owners and real estate investors, you’re probably wondering why are commercial real estate insurance costs have risen? Inflation and regulatory restrictions are contributing factors, but the real culprit is the growing frequency of natural disasters.

California wildfires destroyed more than 18,000 structures in Los Angeles County alone in January 2025. And severe weather, leading to floods and related damage, has also taken a similar toll on commercial properties.

How Do Property Owners and Real Estate Investors Overcome Soaring Insurance Costs?

If you've been feeling the financial  from rising insurance costs lately, you're definitely not alone. To help ease the pain, here are several practical tips to help lower your premiums, while maintaining adequate coverage.

Work With a Reputable Broker and Shop Around

Insurances companies are struggling with a myriad financial issues. Rates are higher, coverage is more limited, and insurers are more reluctant than ever to write new policies.

Your best move in light of current circumstances is to connect with a solid broker who can shop around for the best deals that match your specific needs. The key, particularly if you have a loan, it to make sure your insurance comes from a well-rated company.

Keep Your Properties In Good Condition

This might seem obvious, but keeping your buildings up-to-date is crucial whether you own apartments, retail spaces, or mixed-use properties. This doesn't just mean following regulations—it's also about adding those modern tech solutions and amenities that tenants expect nowadays.

Don't overlook the small stuff either. Secure railings, working smoke detectors, carbon monoxide alarms—these little things matter big time. Don’t ignore preventive maintenance.

If you have a leak from the roof, do not go up there and throw a tarp over it until you get someone to fix it—get it fixed immediately.

Why the urgency? Many insurance companies are now using drones to check out properties. If a provider drones your property and see the tarps, you're probably getting dropped.

Give Insurers a Reason to Cut You a Break

Why would a provider consider lowering your rates? If show them you're a low-risk client.

Here are some suggestions for the proactive efforts’ insurance companies are looking for:

• Storm shutters, flood vents, or building reinforcements that protect against natural disasters. Small touches like energy-efficient appliances can help your case. Hight-tech leak detection systems or predictive maintenance tools can also help knock down premiums.

• If you’ve been claim-free for years, make sure to highlight this fact. Also mention that you handle minor issues without filing claims.

• Take photos of everything—roofs, boiler rooms, you name it. You may even consider inviting insurers to tour your properties in person.

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In combination, these strategies have proven effective significantly lowering steep premium increases.

Need a Referral For Property Insurance?

Get it touch with the Team at CORE CRE, we can help!

323.646.5938 | daniel@core-cre.com