Across the U.S., insurance premiums for commercial real estate (CRE) are rising sharply, and climate volatility is a central force behind the trend.
According to Deloitte, the average monthly cost to insure a commercial building has climbed from $1,558 in 2013 to $2,726 in 2023. In the most exposed states, that figure could reach over $6,000 by 2030.
This isn't just inflation. It reflects a systemic shift in how climate-related events are shaping risk exposure and reshaping financial planning.
In 2023 alone, the U.S. experienced 28 separate billion-dollar extreme weather events, from hurricanes to wildfires to flooding. The total estimated recovery cost? Over $92.9 billion — a 56% jump from 2022, and a 180% increase over the past decade.
Insurers are responding by increasing premiums, reducing coverage, or exiting high-risk markets altogether. For CRE owners and investors, that creates a new kind of pressure. One that touches asset value, underwriting, and portfolio strategy.
But this is a deeply complex environment to navigate. Risk zones are shifting. Historical norms are no longer reliable predictors. And many tools in the market today simply haven’t kept pace with the scale and speed of change.
That’s why forward-looking insight is becoming a key differentiator.
Some CRE leaders are now using climate and environmental data to model future exposure, not just today’s conditions. They’re identifying which regions may become more volatile, which assets might face premium surges, and where resilient design or relocation could improve long-term outcomes.
They’re not doing this because regulators are asking. They’re doing it because the numbers make sense for risk-adjusted returns, insurance leverage, and resilience planning.
At Earth Blox, we work with commercial real estate stakeholders to map exposure, model future risk, and explore proactive strategies from retrofit planning to insurance incentives and de-risked acquisitions.
This isn’t about predicting the next storm. It’s about building commercial resilience in a changing environment using insight, not instinct, to drive stronger business outcomes.
Because in today’s climate, being prepared isn’t just a best practice — it’s a strategic advantage.