{"id":1004730934,"date":"2024-10-01T04:24:12","date_gmt":"2024-10-01T12:24:12","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004730934"},"modified":"2024-10-09T04:27:19","modified_gmt":"2024-10-09T12:27:19","slug":"will-helene-impact-cre-insurance-premiums","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/will-helene-impact-cre-insurance-premiums\/","title":{"rendered":"Will Helene Impact CRE Insurance Premiums?"},"content":{"rendered":"
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\"Mike<\/a>
Hurricane Helene is unlikely to significantly impact insurance premium rates, according to Mike Chapman, national director of commercial markets for HUB International. Image courtesy of HUB International<\/em><\/figcaption><\/figure><\/div>\n\n\n

As the Southeast recovers from the devastation brought by Hurricane Helene, experts are beginning to weigh its effects on insurance costs.<\/p>\n\n\n\n

Hurricane Helene is not a reinsurance event, so it is unlikely to significantly impact insurance premium rates, according to Mike Chapman, national director of commercial markets for HUB International.<\/p>\n\n\n\n

\u201cThis is a heavily uninsured event, so there will be big economic losses, Chapman told Commercial Property Executive<\/em>, \u201cbut less so on the insured side.\u201d<\/p>\n\n\n\n

Moody’s Analytics estimates Hurricane Helene’s total property damage at between $15 billion and $26 billion, a number that could be further refined to reach an industry loss estimate.<\/p>\n\n\n\n

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READ ALSO<\/strong>: Why Resilience Strategies Are a Must<\/a><\/p>\n\n\n\n

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Chapman said Helene will not be calculated into his firm\u2019s 2024 hurricane forecast.<\/p>\n\n\n\n

\u201cWe still legitimately have two weeks left, and some activity is happening in the Atlantic,\u201d he said. \u201cWe don\u2019t really give new predictions. We compare actual to what we projected.\u201d<\/p>\n\n\n\n

Climbing insurance rates <\/a>have been far more predictable than most hurricane seasons for commercial real estate owners and operators. According to a recent report from Aon, costs rose for 27 consecutive quarters.<\/p>\n\n\n\n

\"The<\/a>
The streak of climbing property insurance rates ended in the second quarter of 2024, when the figure decreased to -0.94 percent. Chart courtesy of Aon<\/em><\/figcaption><\/figure>\n\n\n\n

However, Aon\u2019s latest property market dynamics report shows a shift. That streak ended in the second quarter of 2024, as the property year-over-year rate change decreased from +3.4 percent in the first quarter to -0.94 percent in the second quarter.<\/p>\n\n\n\n

Additionally, Aon\u2019s report said that there will continue to be rate differentiation:<\/p>\n\n\n\n