Hard to Place CRE Coverage in California and Beyond
The commercial property insurance market has changed significantly over the past decade, particularly in California. Catastrophic events, including wildfires and severe weather losses, have increased claim costs and influenced how insurers evaluate property risk. Many carriers have adjusted underwriting guidelines and reduced capacity in certain segments of the market.
Businesses with older buildings, wood-frame structures, or properties located in fire-prone areas are experiencing tighter underwriting review during the placement process. Premiums, deductibles, and underwriting requirements have evolved alongside these market changes. Property owners are placing greater emphasis on understanding how insurers assess risk and where coverage capacity is currently available.
A Shrinking Market for Commercial Property Insurance
Commercial property insurers operating in California have refined their portfolios over the past several years. Wildfire exposure, rising reinsurance costs, and large catastrophe losses have influenced underwriting strategy and market participation.
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
As underwriting guidelines evolve, certain types of properties receive closer review during the underwriting process. Common characteristics that may require additional underwriting consideration include:
- Older buildings
- Wood-frame construction
- Fire-exposed locations
- Non-sprinklered buildings
- Challenging industrial occupancies
Carriers also review factors such as roof age, electrical systems, maintenance practices, and loss history when evaluating property risk. These details influence pricing, deductibles, and available coverage structures.
Why You Need a Broker with Market Expertise
Placing commercial property coverage involves ongoing awareness of underwriting guidelines and carrier appetite. Insurers regularly refine their risk selection criteria based on loss experience, geographic exposure, and portfolio management.
Business owners often benefit from working with brokers who maintain active communication with carriers and stay informed about underwriting developments across the market.
“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 broker with strong market awareness can support property owners by:
- Monitoring carrier underwriting appetite across multiple markets
- Preparing submissions that highlight the property’s risk profile and mitigation efforts
- Coordinating with underwriters during the evaluation process
- Working toward terms that align with the property’s operational and financial goals
These steps help ensure that insurers receive a clear and complete understanding of the property being evaluated.
Finding the Right Coverage at the Right Price
Commercial property insurance placement now involves detailed underwriting review, carrier communication, and thoughtful presentation of risk information. Properties that include updated safety features, documented maintenance programs, and well-prepared submissions often receive broader interest from insurers during the quoting process.
As the commercial property insurance market continues to evolve, proactive risk management and strong broker relationships support long-term insurability. Property owners who stay engaged with their broker and regularly review coverage strategy are well positioned to navigate future underwriting developments and maintain access to insurance solutions that support their business operations.
If your commercial property is becoming more difficult to insure or your renewal premiums have increased, the team at Apex Risk & Insurance Services can help review your coverage strategy and explore current market options. Contact Apex to discuss your property and identify solutions that support long-term coverage stability.
