How Better Property Data Can Improve Commercial Real Estate Insurance

July 29, 2026 - 19:53

A recent roundtable convened by the Urban Land Institute highlighted a persistent problem in commercial real estate: the lack of standardized property data is making it harder to insure buildings against climate and physical risks. Industry leaders from lending, development, and insurance agreed that inconsistent building information often leads to inaccurate risk assessments and higher premiums.

The group argued that if owners, lenders, and insurers shared a more uniform set of resilience inputs, they could evaluate physical threats like flooding, wildfire, and wind damage with far greater precision. Currently, many properties are underwritten based on outdated or incomplete records, which leaves both insurers and investors exposed to unexpected losses.

Better data would also strengthen underwriting practices. Instead of relying on broad regional risk scores, insurers could price policies based on a specific building's actual construction materials, elevation, and mitigation features. This shift would reward owners who invest in hardening their assets, while giving lenders clearer signals about a property's long-term viability.

The roundtable concluded that improving data standards is not just a technical fix. It is a financial tool that could unlock more stable insurance markets and support smarter investment decisions across the commercial real estate sector. Without these changes, the gap between perceived and actual risk will likely continue to widen.