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 2015 Cost Trends Analysis

The current building construction cost trends show an average cost increase of just over 1.0% for the six months ending January 2015 and 2.1% for the year. Increased demand in the construction industry has resulted in costs continuing to move upward at a faster pace. Small projects are showing lower cost increases due to competition. Labor is a main driver in inflation although some material costs also contributed.      
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 2010, 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 closest 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 were updated or established and note the multiplier. Then apply the appropriate multiplier to the existing personal property values to approximate the current replacement cost.  

Click HERE for the January 2015 Real property and 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
Technical Director, Business Resilience
Zurich Services Corporation
Risk Engineering
1400 American Lane
Schaumburg, IL 60196-1056

Phone: (847) 951-0180
Email: richard.lunt@zurichna.com