Future of insurance on coastal properties?

[Andrew Gavre]

I am in the process of buying a commercial building in Savannah, Ga and know there is a lot of discussion around “climate change premiums” in relation to insurance. 

What are you all seeing as the future of insurance in coastal cities? Blown out of proportion or a real concern?

[Jason Bott]

@Andrew Gavre there will continue to be upward pricing pressure for insurance in coastal areas for the next 2 years, just not to the 20%-30% rate increase we have been seeing.  If rates keep going up, and we then have 2-3 years of no hurricanes, the insurance carriers will be very profitable, and will start to chase business, lowering premiums.  If we continue to have storms with billion $ payouts, pricing will continue to climb.

Coastal insurance has always had a high price and it will always be volatile.