Blog Tag: real estate
With all the noise in Washington, many people ignore the chatter and only pay attention once something becomes law. When it comes to estate taxes, however, it’s time to listen up. Today’s higher estate and gift tax exemption ($11.58 million per individual for 2020) will become a thing of the past. Under current law, the exemption will automatically sunset on January 1, 2026, shrinking the amount to $5 million (adjusted for inflation). Worse yet, depending on the 2020 election, Congress may even vote to reduce the exemption further and sooner.
Rates have been on a steady climb for commercial property insurance coverage. And thus far in 2019, loss trends continue to create pricing concerns. The market began to harden in 2017 following the second costliest year on record for insured and uninsured claims. Matters were made worse in 2018, which is now the fourth costliest natural disaster year on record for insured losses. With a combined loss total of $230 billion, 2017 and 2018 represent the most insured losses for two consecutive years.1
While 2017 was mostly a buyers’ market for commercial property insurance, rates are currently on the rise. From hospitality and storage to development and habitational, the commercial real estate insurance market is firming up. Carriers are responding to natural disasters, including hurricanes Harvey, Irma, Maria and Florence, as well as recent California wildfires. Events like these have significantly affected the insurance industry, with global insured losses totaling well over $100 billion in 2017 alone.