Replacement value cost trends

Transcription

1 January 2016 Replacement value cost trends Real property Personal property

2 Zurich 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 Zurich s Replacement Value Cost Trends provides the results of the most recent real and personal property inflation survey conducted by Zurich. The cost trends are published to assist in maintaining proper levels of insurable replacement costs for commercial and industrial properties. The cost trends are issued bi-annually in January and July. January 2016 Cost Trends Analysis The current building construction cost trends show a slight cost increase for the six months ending January Small projects are showing lower cost increases due to competition. Labor is a main driver in inflation although some material costs also contributed. New technology is being adopted that is increasing efficiency and decreasing costs. The personal property cost trends indicate overall percentage increases in machinery and equipment costs for the listed plant occupancies. The most recent survey of machinery and equipment costs showed costs remained flat for the last 6 month period. It is anticipated the rate of increase will be about the same over the next six-month period. Real Property Inflation multipliers are provided for all 50 states, Puerto Rico and eight Canadian provinces. In all, cost trends are included for 184 cities. Prior to January 2011, the cost trends are available on a regional basis. To determine the current replacement cost of a building, select the closest city from Zurich s Replacement Value Cost Trends. Find the date across the top of the page that corresponds to the last time the existing values were updated. Scroll down the page to the closet city and note the multiplier. Multiply the factor provided by the existing estimated replacement cost to arrive at the current estimated replacement cost. Personal Property The personal property cost trends are calculated by use of a weighted index and include an installation factor. For personal property, choose the occupancy and scroll down the page to the date closest to when the existing values where updated or established and note the multiplier. Then apply the appropriate multiplier to the existing personal property values to approximate the current replacement cost. Cost trends are also available in pdf format on The information in this publication was compiled from sources believed to be reliable for informational purposes only. Additional data an analysis may be required to obtain an accurate valuation. By their nature, the information is subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results to differ materially from those expressed or implied in the trends cited below. As a result The Zurich Services Corporation assumes no liability in connection with this publication, including any information contained herein.

3 Real property replacement value cost trends January 2016 Jan, 16 July, 15 Jan, 15 July, 14 Jan, 14 Jan, 13 July, 13 July, 12 Jan, 12 July, 11 Jan, 11 UNITED STATES US National Average State/City Alabama Birmingham Huntsville Mobile Montgomery Alaska Anchorage Fairbanks Juneau Arizona Flagstaff Phoenix Tucson Arkansas Fort Smith Little Rock California Fresno Los Angeles Redding Sacramento San Diego San Francisco San Jose Colorado Colorado Springs Denver Fort Collins Grand Junction Connecticut Bridgeport Hartford New Haven Stamford Waterbury D.C. Washington Washington Delaware Wilmington/Dover Florida Jacksonville Miami Orlando Pensacola Tallahassee Tampa/St. Petersburg

4 Real property replacement value cost trends Jan, 16 July, 15 Jan, 15 July, 14 Jan, 14 July, 13 Jan, 13 July, 12 Jan, 12 July, 11 Jan, 11 UNITED STATES US National Average State/City Georgia Atlanta Augusta Columbus Macon Savannah Valdosta Hawaii Honolulu Idaho Boise Lewiston Pocatello Illinois Chicago Peoria Rockford Indiana Evansville Fort Wayne Gary Indianapolis South Bend Terre Haute Iowa Cedar Rapids Des Moines Dubuque Sioux City Kansas Kansas City Topeka Wichita Kentucky Bowling Green Lexington Louisville Louisiana Alexandria Baton Rouge New Orleans Shreveport Maine Bangor Portland Maryland Baltimore Hagerstown Massachusetts Boston Hyannis Lowell New Bedford Pittsfield Springfield

5 Real property replacement value cost trends Jan, 16 July, 15 Jan, 15 July, 14 Jan, 14 July, 13 Jan, 13 July, 12 Jan, 12 July, 11 Jan, 11 UNITED STATES US National Average State/City Michigan Detroit Grand Rapids Kalamazzo Lansing Minnesota Duluth Minneapolis/St. Paul Rochester Mississippi Biloxi Meridian Missouri Columbia Kansas City Springfield St. Louis Montana Billings Great Falls Missoula Nebraska Lincoln North Platte Omaha Nevada Las Vegas Reno New Hampshire Manchester Portsmouth New Jersey Newark Trenton New Mexico Albuquerque Las Cruces Santa Fe New York Albany Buffalo New York City Rochester Syracuse White Plains North Carolina Ashville Charlotte Durham Raleigh Winston-Salem

6 Real property replacement value cost trends UNITED STATES Jan, 16 July, 15 Jan, 15 July, 14 Jan, 14 July, 13 Jan, 13 July, 12 Jan, 12 July, 11 Jan, 11 US National Average State/City North Dakota Bismark Fargo Grand Forks Ohio Cincinnati Cleveland Columbus Dayton Toledo Oklahoma Oklahoma City Tulsa Oregon Eugene Medford Portland Pennsylvania Harrisburg Philadelphia Pittsburgh Scranton Puerto Rico San Juan Rhode Island Providence South Carolina Charleston Columbia Greenville South Dakota Aberdeen Rapid City Tennessee Chattanooga Knoxville Memphis Nashville Texas Austin Dallas/Fort Worth El Paso Houston Lubbock San Antonio Utah Salt Lake City Vermont Burlington Rutland

7 Real property replacement value cost trends Jan, 16 July, 15 Jan, 15 July, 14 Jan, 14 July, 13 Jan, 13 July, 12 Jan, 12 July, 11 Jan, 11 UNITED STATES US National Average State/City Virginia Arlington Norfolk Richmond Roanoke Washington Seattle Spokane Yakima West Virginia Charleston Wheeling Wisconsin Green Bay La Crosse Madison Milwaukee Wyoming Casper Cheyenne CANADA Jan, 16 July, 15 Jan, 15 July, 14 Jan, 14 July, 13 Jan, 13 July, 12 Jan, 12 July, 11 Jan, 11 Canadian National Average Province/City Alberta Calgary Edmonton British Columbia Vancouver Manitoba Winnipeg Newfoundland St. Johns Nova Scotia Halifax Ontario Ottawa Toronto Windsor Quebec Montreal Quebec Saskatchewan Regina Saskatoon

8 Real property replacement value cost trends United by Region UNITED STATES BY REGION Year Eastern Central Southern Western July, Jan, July, Jan July, Jan, July, Jan, July, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Year Eastern Central Southern Western Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan, Jan,

9 Personal property replacement value cost trends January 2016 Year Avg Canning & Food Industry Machine Shop Office Paper Mfg Plastics Printing Sheet Metal Fab Textile Rubber Wood Working Hospital Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan

10 Personal property replacement value cost trends Year Avg Canning & Food Industry Machine Shop Office Paper Mfg Plastics Printing Sheet Metal Fab Textile Rubber Wood Working Hospital

11 Zurich s property valuation experience It s more than insurance appraisals, It s about helping you stay protected Zurich s property valuation services are helping you report your insurable property values. With valuation data and consulting tools, our seasoned valuation team is helping to create insurance programs that more accurately reflect the value and exposure for commercial property insurance, while at the same time simplifying the ITV (insurance to value) process Specialized experience Certified valuation professionals dedicated solely to commercial property valuation Qualified staff with a 30-year record of providing effective ITV solutions Confidentiality and accountability in all business dealings Customized services that help address your needs Detailed on-site appraisals for real and personal property Thorough business interruption value analysis Comprehensive reports that help confirm values Responsive consulting services Customized valuation analysis using modeling approaches for large property schedules Effective assistance in analyzing and managing property exposures A holistic approach to solving valuation problems Cost Trending Publishing real and personal property cost trends that are updated biannually If you have questions, please contact: Rick Lunt Risk Engineering property valuation manager richard.lunt@zurichna.com

12 The Zurich Services Corporation 1400 American Lane, Schaumburg, IL Risk Engineering The information in this publication was compiled from sources believed to be reliable for informational purposes only. Any and all information contained herein is not intended to constitute advice (particularly not legal advice). We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication, including any information contained herein. Certain statements herein are forward-looking statements, including, but not limited to, statements that are predictions of or indicate current trends. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements (or from past results) in the publication. The Zurich Services Corporation undertakes no obligation to publicly update or revise any of these statements, whether to reflect new information, future events or circumstances or otherwise. Zurich expressly disclaims any and all damages and other costs that may arise related to the use of or reliance upon the information contained herein. The subject matter of this publication is not tied to any specific insurance product nor will adopting these policies and procedures ensure coverage under any insurance policy. This is also intended as a general description of certain types of risk engineering services available to qualified customers through The Zurich Services Corporation. The Zurich Services Corporation does not guarantee any particular outcome and there may be conditions on your premises or within your organization, which may not be apparent to us. You are in the best position to understand your business and your organization and to take steps to minimize risk, and we wish to assist you by providing the information and tools to help you assess your changing risk environment The Zurich Services Corporation A Q (01/16)