5%
Reduction in insured building values
$30K
Savings on annual property premiums
$650M
Portfolio properly benchmarked
Accurate valuation supported by USI and third‑party data.
Premium reduction achieved through value correction and negotiation.
PROPERTY & CASUALTY
CASE STUDY
A commercial real estate company needed a more accurate and defensible valuation of its $650M property portfolio, which consisted of shopping centers and office buildings. The carrier had increased insured values based on arbitrary inflation factors, resulting in significant — and unnecessary — premium increases. The company needed a credible approach to property valuation to avoid overpaying for insurance and ensure full recovery in the event of a loss.
Accurate property values are critical. Undervaluation can lead to post-loss recovery shortfalls, while overvaluation results in inflated premiums. USI’s pre‑underwriting process aligns insured values with true replacement costs, helping clients avoid coverage gaps and keeping their assets fully protected.
BACKGROUND
This material is for informational purposes and is not intended to be exhaustive nor should any discussions or opinions be construed as legal advice. Contact your broker for insurance advice, tax professional for tax advice, or legal counsel for legal advice regarding your particular situation. USI is not responsible for the content of the information provided or for consequences of any actions taken based on the information provided. © 2026 USI Insurance Services. All rights reserved.
PROPERTY & CASUALTY
CASE STUDY
Comprehensive review of valuations across all properties.
Background
REAL RESULTS
Comprehensive Solutions
USI conducted a thorough review of the client’s building values using both internal benchmarking and third‑party appraisal resources. This included:
Read our article to learn why precise property valuations matter more than ever, and how USI’s proactive pre‑underwriting process helps eliminate coverage gaps and premium distortion.
Connect with one of USI’s experts to request a property valuation review for your portfolio.
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Armed with accurate data, USI negotiated with the carrier to reduce the client’s insured building values by 5%. This adjustment better reflected true replacement costs — correcting overstatement caused by the carrier’s broad inflation factors — and immediately reduced the client’s premiums by $30,000.
Third‑party appraisal guidance: Where needed, USI recommended and facilitated replacement‑cost appraisals through independent valuation firms vetted and approved by USI experts to validate and correct overstated building values.
Appraisal technology: To support accurate, credible valuations, USI leveraged multiple industry‑standard replacement cost valuation tools such as Marshall & Swift and e2Value — ensuring replacement cost estimates aligned with current market conditions.
USI methodology: USI evaluated the client’s existing property valuations using third‑party price-per-square‑foot benchmarks and regional cost data for similar buildings to identify inconsistencies and inflated assumptions.
Accurate Valuations Lead to Real Savings
USI Secures $30,000 Reduction in Property Premiums
Accurate property values are critical. Undervaluation can lead to post-loss recovery shortfalls, while overvaluation results in inflated premiums. USI’s pre‑underwriting process aligns insured values with true replacement costs, helping clients avoid coverage gaps and keeping their assets fully protected.
