We have a few commercial buildings in San Antonio with a mix of office/retail/medical tenants. Premiums have quadrupled in the last few years, apparently due to climate events around the nation. We set our deductibles at 5% of replacement cost value and agreed to forego roof coverage this year just to afford the 400% premium increases. This effectively renders the coverage useless short of a catastrophic event like a fire or earthquake as the deductible is near a half million on one building and several hundred thousand on the others. The buildings are old school 1940s concrete block buildings (slab, walls, and roof) that are fully sprinklered, fire walled, outside of flood zones, etc..., so the risk of catastrophic events is infinitesimally small as far as I can surmise.
The largest concern is liability from an injury, which is a fairly small portion of the premium cost. Our tenants are required to carry liability coverage on top of our building wide liability coverage, so even that exposure is minimal. We're a small mom and pop self-managing commercial property operation, so dealing with these changes in the property insurance industry has created real challenges for us and our tenants who pay for these increases as a triple net expense. Not to mention for customers who face higher service/product costs as a result. We only carry the property coverage portion at all because our lenders understandably require it. Anyhow, I'm curious if anyone else in the commercial property world is dealing with this and how.