Businessman's risk investment protects the wooden block from falling wooden block dominoes on the desk in the office.

Hard to Place CRE Coverage in California and Beyond

/in

The commercial property insurance market has changed dramatically over the past decade, particularly in California. Catastrophic events, including wildfires, have led to higher claim costs and a shrinking pool of willing insurers. Businesses with older buildings, wood-frame structures, or properties in fire-prone areas are struggling to find coverage—let alone at a reasonable price.

A Shrinking Market for Commercial Property Insurance

In the past, California had 15 major carriers competing for commercial property insurance business. Today, many of those carriers have exited the market, leaving fewer options for property owners.

“In California, there used to be 15 carriers that were all super competitive competing over business, and now because of the cost of those claims, the carriers have chosen to not play in the sandbox.” — Peter Katkov, CEO, Apex Risk & Insurance Services

This has made it especially difficult for properties that fall into high-risk categories, such as:

  • Older buildings
  • Wood-frame construction
  • Fire-exposed locations
  • Non-sprinklered buildings
  • Challenging industrial occupancies

Why You Need a Broker with Market Expertise

For businesses facing these challenges, securing insurance isn’t just about finding a policy—it’s about understanding an ever-changing market. Carriers shift their underwriting guidelines constantly, making it difficult for business owners to navigate on their own.

“We are constantly in communications with the carriers. They change their appetite like you change your underwear, and understanding what they want and packaging it in such a way that they will say yes is a huge part of what we do every day.” — Peter Katkov

A skilled broker can help by:

  • Monitoring shifting carrier appetites to identify available options
  • Presenting properties in a way that aligns with underwriting preferences
  • Negotiating the best possible terms despite market constraints

Finding the Right Coverage at the Right Price

Placing coverage in today’s commercial property market is no easy task—it requires deep industry relationships, market insight, and strategic negotiation. Without these, property owners risk either paying exorbitant premiums or being left uninsured.

If your commercial property falls into a high-risk category, working with a broker who has a pulse on the market is more important than ever.