2025 Commercial Property Insurance

2025 Commercial Property Insurance Outlook: Lower Premiums, Higher Deductibles & How to Protect Your Building’s Value

After several challenging years, the commercial property insurance market in 2025 is showing welcome signs of relief. Premiums are beginning to level off — and in some cases, even decrease — as more carriers enter the market and competition heats up in the independent insurance agent channel. Here in the mid west we had less fires and hail than we usually see which was favorable for insureds and carriers.  

But there’s a twist: while rates are softening, higher deductibles are becoming more common, pushed by carriers to balance risk. This shift means property owners can save money on premiums, but only if they’re making smart choices about coverage — starting with how their property is valued.

The key? Insuring for the reconstruction cost — the real price to rebuild from the ground up, not just the outdated figure that’s been sitting in your policy for years. Also this needs to be re valued every year not auto renewed with the same RCV (reconstruction valuation) as the value/limit will steadily increase over time. If your dwelling limit is the same it has been for years is a good sign this is not being kept up to date with and could leave you underinsured. 

At CIB, we can run a reconstruction cost report at every renewal so you know your building’s or homes true insured value — protecting you from underinsurance without overpaying. Let us know if you want your reconstruction valuation calculated today!