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 biannually in January and July.


July 2014 cost trends analysis

The current building construction cost trends show an average cost increase of 1.3% for the six months ending July 2014. The change is driven by modest labor cost increases and mixed material cost changes as the construction industry continues to show improvement in projects started. The overall level of construction activity continues to show improvement.      
The personal property cost trends indicate overall cost changes in a typical mix of machinery, equipment and furniture costs for the listed industrial occupancies. The recent survey indicates that cost changes for the last six months are relatively flat with some small increases. The rate of change for the next six months is anticipated to be about the same.  


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 and state averages.  Prior to 2009, the cost multipliers are provided on a regional basis.

To determine the current replacement cost of a building, select the closest city or the state average for remote locations from Zurich's replacement value cost trends. Locate the date across the top of the chart that corresponds to the last time the existing values were updated.  Scroll down the chart to the city or state average you selected that best represents the location for the reported values. The multiplier at the intersection of the date and location is the multiplier to apply to the existing values to arrive at the estimated current replacement cost.

Click HERE for the July 2014 real property cost trends.


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 that best matches the location occupancy and scroll down the chart to the date closest to when the existing values were last calculated or updated. The multiplier at the intersection of the date and the occupancy is the multiplier to apply to the existing personal property values to arrive at the estimated current replacement cost.  

Click HERE for the July 2014 personal property cost trends.


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 up-to-date valuation data and consulting tools, our seasoned valuation team is helping to create insurance programs that more accurately reflect the true value and exposure for property insurance, while at the same time simplifying the ITV (insurance to value) process.


Specialized experience

  • Certified valuation professionals dedicated solely to property valuation
  • Qualified staff with a 30-year record of providing effective ITV solutions
  • Confidentiality and accountability in all business dealings


Customized services that address your needs

  • Detailed on-site appraisals for real and personal property
  • Thorough business interruption value analysis
  • Comprehensive reports that 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


Up-to-date cost trending

  • Publishing real and personal property cost trends that are updated biannually


Questions and comments

Rick Lunt
Risk Engineering property valuation manager