Zurich Resilience Solutions Replacement Value Cost Trends

Real Property * Personal Property

Zurich Resilience Solutions (ZRS) is committed to providing experience and insights to help customers and producers better understand and prepare for the evolving risks they face over time. This issue of ZRS’s Replacement Value Cost Trends provides the results of the most recent real and personal property inflation survey conducted for Zurich. The cost trends are published to assist in maintaining proper levels of insurable replacement costs for commercial and industrial properties. Please consult insurance advisors for specific information regarding your situation. The cost trends are issued annually but may be issued at mid-year if market conditions warrant.

January 2024 Cost trends analysis

The current building cost trends continue to be stable through 2023. The majority of the U.S. has shown a little movement in construction costs. Material costs continue to decline due to declining inflation, however, they are higher than pre-pandemic levels. Even though material costs are declining, labor rates are increasing. Tight labor supply continues to be a concern.

The personal property cost trends indicate a 0% to 2% increase in machinery and equipment costs for the listed occupancies over the 12-month period. We continue to battle inflation and it appears most of the supply chain issues from COVID-19 are subsiding.