High Property Values Increase Cat Losses

U.S. property values for residential, commercial and industrial properties continue to increase faster than GDP growth and the general rate of inflation, says a new report from catastrophic risk management consulting and modeling firm Karen Clark & Co. The report, “Increasing Concentrations of Property Values and Catastrophe Risk in the U.S.,” notes that insured property values increased by 9% from 2012 to 2014.

Building values now exceed $40 trillion; when contents and time element exposures are added in, estimated insured property values climb to more than $90 trillion, which “includes the cost to rebuild these properties as well as the contents and time element exposures, such as additional living expenses,” says Karen Clark, president and CEO.