While 2025 has already seen record-breaking natural disasters, a recent survey of commercial property stakeholders by Nationwide revealed a widening gap between risk awareness and action. Over two-thirds (67%) of property owners, builders and business owners are “highly concerned” about natural disaster damages, a five-point increase from 2023, with this figure surging to 93% (+28points) in wildfire-prone states and 86% (+16 points) in hurricane-prone regions.
Despite increases in both risk and concern, 26% of commercial property stakeholders admit to knowingly holding inadequate insurance coverage for severe weather events—an eight-point increase. This concerning trend is corroborated by insurance agents, who estimated at least 4 in 10 commercial customers they serve are underinsured. Three-quarters of property owners said they are actively seeking to cut insurance costs, with 42% willing to reduce coverage to do so.
Further, stakeholders are doing less to proactively mitigate risks, citing economic uncertainty and increased construction costs as key barriers. Only 31% were willing to invest in resilience measures, a 22-point drop from 2023, and they were only willing to pay up to $10,000, a 50% drop. While 95% of property stakeholders said they have a response plan in place, 1 in 5 agents estimated that less than half of their clients have a risk management plan to prevent weather disruptions.