Why Commercial Property Claims Are Rising in 2025—and How to Stay Ahead

By SIA Group | 4 min read | Published August 6th, 2025 

As we move through 2025, commercial property owners are facing a sharp uptick in insurance claims. From weather-related damage to vandalism and water loss, the risk landscape is shifting—and premiums are rising to match. If your business relies on brick-and-mortar locations, understanding this trend isn’t optional. It’s essential.

Below, we break down why commercial property claims in 2025 are increasing and what proactive steps your business can take to stay protected.

1. Severe Weather Events Are Becoming More Common

Extreme weather events are one of the biggest drivers of commercial property losses this year. According to the National Weather Service, 2025 has already seen a 20% increase in insured storm claims compared to last year. Hurricanes, hail, and flash flooding are wreaking havoc on small businesses and large facilities alike.

Common weather-related claims include:

Roof and siding damage from high winds
Interior water damage from roof leaks
Flooding in basements and ground floors

How to stay ahead:
Review your policy to ensure it includes wind, hail, and (if applicable) flood coverage. Not all commercial property policies include flood protection—you may need a separate policy or endorsement.

2. Inflation Is Driving Up Claim Costs

The cost to repair or rebuild commercial structures has skyrocketed in 2025. Materials like lumber, steel, and copper remain expensive, and ongoing supply chain issues are delaying repairs.

Why it matters:
Many businesses are finding that their property limits are outdated. If you haven’t reviewed your building’s replacement cost in the last 12–18 months, you could be underinsured.

Tip:
Ask your insurance advisor for a current replacement cost estimate. You may need to increase your limits or add inflation guard protection.

3. Labor Shortages Are Delaying Repairs

Even when materials are available, a shortage of skilled contractors is causing delays in commercial property repairs. These delays often lead to higher business interruption claims or out-of-pocket expenses if your policy doesn’t include adequate downtime coverage.

What you can do:
Make sure your commercial policy includes Business Income and Extra Expense coverage. These provisions can help replace lost income and pay for temporary relocation or expedited repairs.

4. Vandalism and Theft Are Surging in Urban Areas

As economic pressures continue, urban commercial properties are seeing a rise in vandalism and break-ins. In 2025, commercial claims for theft and malicious damage have increased by over 15%, particularly in retail and warehouse settings.

Prevention tips:

Upgrade building security systems
Add motion lighting and cameras
Confirm that your policy includes vandalism and theft

Don’t assume it’s covered—some policies exclude damage caused by civil unrest or intentional acts.

5. Hidden Water Leaks Are a Growing Problem

Commercial properties with aging plumbing systems are increasingly filing claims for hidden water damage. These losses can be especially expensive when they involve mold remediation or damage to valuable inventory.

Key takeaway:
Standard policies may not cover slow leaks or water seepage. Talk to your insurance provider about water backup and equipment breakdown endorsements.

Final Thoughts: How to Stay Ahead of the Curve

With the rise in commercial property claims in 2025, now is the time to:

✅ Reassess your property limits and deductibles
✅ Add or increase flood, theft, and business interruption coverage
✅ Consider risk control services to reduce exposure
✅ Schedule a full policy review with your insurance advisor

At SIA Group, we help business owners stay protected—today and tomorrow.