Commercial property insurance premiums are rising due to losses from natural catastrophes.  Commercial property insurance premiums increased by 20% in the second quarter of 2023 and 17% in the third quarter of 2023 according to the Council of Insurance Agents and Brokers 3Q  2023 Property/Casualty Report.

Out of home execs tell Billboard Insider of 20-30% increases in billboard replacement insurance premiums this year.  In Florida billboard replacement insurance is prohibitively expensive.

There are two ways to mitigate rising insurance costs.  (1) Eliminate insurance altogether and self insure.  Steel monopole replacement insurance may not make much sense if you plant is spread out and you build well.   Rebuild costs are low and the chance of a storm taking out all your structures is low.  Self insurance may not be possible, however, if you have a bank loan because many banks require you to have replacement insurance.  (2) Raise the minimum deductible as high as possible ($100,000 for instance).  This is equivalent to partial self insurance and will lower your premium.

Do you have billboard replacement insurance policy and have  you ever had a reportable loss under a billboard replacement insurance policy?  Take our poll below.

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