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Commercial
Property Owners Face Large Insurance Premium
Increases in 2002
By
Insurance Journal
Jan.
4, 2002
Commercial
property owners throughout the nation can
expect their insurance premiums to make major
leaps this year due to the repercussions of
the Sept. 11 attacks rippling through the
insurance industry, according to Jenny Jones,
CEO of Los Angeles-based Elkins/Jones, an
insurance brokerage firm that specializes in
coverage for the real estate industry.
According
to a Business Wire report, Jones said premiums
have gone up as much as 40 to 70 percent.
Jones pointed out that commercial buildings
which now pay five or six cents per square
foot for insurance need to budget for costs to
go up to as much as seven or eight cents a
foot. She says the increases could be across
the board for all types of properties, with
single family housing developers being sharply
affected.
Jones
goes on to state that reinsurers potentially
face billions of dollars in Sept. 11 claims.
As many negotiate their treaties each January,
they will raise their premiums to cover the
losses and then insurance carriers will pass
these on to property owners and eventually to
consumers, she added.
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