Procurement Market Intelligence Report
Building & Contents Insurance
Sourcing Guide & Market Intelligence
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Building & Contents Insurance Global Overview
Definition
Summary
Building & contents insurance, or property insurance, protects a business's physical assets from peril, including the building itself, furniture, equipment, inventory, landscaping, and outdoor signage. These assets are typically insured for damage, a natural disaster, loss, or theft. Suppliers in this market include direct insurance carriers, agents, and brokers, while buyers range from commercial and industrial businesses to retailers, government agencies, and educational institutions. This report focuses on commercial insurance policies and excludes consumer insurance, such as homeowner’s insurance and any insurance coverage for personal property.
This Report Includes:
- Commercial Building Insurance
- Furniture Insurance
- Equipment Insurance
- Inventory Insurance
Not in this Report:
- Homeowner Insurance
- Personal Property Insurance
Global Building & Contents Insurance Procurement Trends
Discover the top international trends affecting procurement in the global Building & Contents Insurance market.
Warning Trends
Fed lowers rates for the first time in 2025
- On September 17, the Federal Reserve’s Federal Open Market Committee (FOMC) voted to lower interest rates to a target range of 4.0% to 4.25%, down 0.25% from the rate it had been holding since November of last year.
- Despite indications at the start of the year that steady reductions to the relatively high 4.25% to 4.5% rate were on the horizon, the Fed held off on rate cuts for much of the year due to concerns that the combination of higher tariffs and a reduction in borrowing costs could cause rebounding inflation.
- The September cut to Fed interest rates signals a shift in this strategy, indicating that the Fed now considers weakening employment figures a greater threat than inflation. As a result, FOMC officials have also signaled that two additional rate cuts are likely before the end of the year in an effort to fight unemployment and stimulate the economy.
- Declining Fed funds rates will provide relief to borrowers by lowering the market interest rates for consumer and business loans. This reduction in the cost of borrowing will reduce the cost of many banking and financial services, and may spur increases in demand across the economy.
Neutral
Inflation climbs above 3.0% for the first time in seven months
- In January, the Consumer Price Index (CPI) 12-month inflation rate, the most commonly used measure of inflation, rose by 0.1% to 3.0%, the highest it has been since June 2024.
- This uptick in inflation follows cuts to interest rates which may have added to consumer demand, fueling higher consumer prices.
- Additionally, the threat of impending tariff hikes has driven preemptive stockpiling by importers, adding to demand and price growth across a range of industries in the United States.
- While inflation is still low relative to previous years, sustained recent increases in inflation and the potential effects of tariffs, such as the recently implemented 10.0% on all Chinese goods, mean prices are still rising at a faster-than-normal pace.
Global Building & Contents Insurance Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 88,990 |
| #2 United States | 63,250 |
| #3 Europe | 56,990 |
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2
Geography Drilldown - US
Average Cost of Building & Contents Insurance
United States
2026 Market Pricing$100.00 to $X,XXX.XX
per policy per yearAverage Price
Prices in the Building & Contents Insurance market range from $100.00 to $X,XXX.XX, depending on Location, Industry, Type of Coverage and Security Measures. For example, lower prices are associated with Regions less prone to natural disasters ($500 to $3,000 per policy per year), whereas higher prices are associated with Regions more prone to natural disasters ($5,000 to $20,000 per policy per year).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Building & Contents Insurance Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Building & Contents Insurance market, prices in the US have grown 3.6% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Building & Contents Insurance
Total cost of ownership is Low in the Building & Contents Insurance market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.
Negotiated Before
Financing
Billed During
Security
Insurance
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.4 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer & Packaged Software Wholesalers
- Commercial Lessors
- Portfolio Management Firms
- Reinsurance Carriers
2nd
Tier Suppliers
- Computer Manufacturers
- Property Managers
- Securities Brokerage Providers
- Insurance Brokerage Firms
Biggest Building & Contents Insurance Suppliers in the US by Revenue
The largest Building & Contents Insurance vendors by revenue in the US are Berkshire Hathaway HomeServices, Aon Plc and Marsh & Mclennan Companies, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Berkshire Hathaway HomeServices | US | 5-10 | ||||||
| Progressive Casualty Insurance Company | International | MAYFIELD VILLAGE, OH | >10,000 | < 5 | ||||
| Zurich Insurance Group Ltd. | Global | Zurich, CH | >10,001 | < 5 | ||||
| Allstate Corp | International | NORTHBROOK, IL | >10,000 | < 5 | ||||
| Chubb Limited | Global | ZURICH | >10,000 | < 5 | ||||
| American International Group, Inc. | Global | NEW YORK, NY | >10,000 | < 5 | ||||
| Marsh & Mclennan Companies, Inc. | Global | NEW YORK | >10,000 | < 5 | ||||
| Aon Plc | DUBLIN 2 | >10,000 | < 5 | |||||
| Liberty Mutual Insurance Group Inc. | Global | Boston, MA | >10,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Building & Contents Insurance market is 13.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The average vendor in this market faces a low level of risk due to steady demand and healthy profit margins. However, profit is declining because providers are dedicating an increasing amount of their revenue toward claims and benefits payouts.
Low market share concentration largely stems from a lack of significant differentiation between services and steady downstream demand for building and contents insurance, which help minimize barriers to entry.
There is moderate supply chain risk since vendors rely heavily on portfolio management firms and reinsurance carriers. However, the diversity of downstream buyer industries mitigates this risk.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Berkshire Hathaway HomeServices
Berkshire Hathaway HomeServices is a private company operating nationally in the finance & insurance sector. The company's offerings include building & contents insurance. Founded in 2013, the company is currently headquartered in Irvine, California, United States of America with an estimated 5500 employees.... Subscribe to learn more
Allstate Corp
Allstate Corp is a public company operating internationally in the finance and insurance sector. The company's offerings include product warranty insurance, building & contents insurance, commercial auto & truck insurance, business interruption insurance and professional indemnity insurance. Founded in 1931,... Subscribe to learn more
American International Group, Inc.
American International Group, Inc. is a public company operating globally in the finance and insurance sector. The company's offerings include product warranty insurance, building & contents insurance, commercial auto & truck insurance, cargo insurance, marine insurance. Founded in 1919, the company is currently... Subscribe to learn more
Aon Plc
Aon plc is engaged in the marketing and servicing of a range of management and financial services spanning risk managementm insurance and reinsurance brokerage, and human resource consulting and outsourcing. Its business is divided into two segments: Risk Solutions (risk management through insurance advisory,... Subscribe to learn more
Chubb Limited
Chubb Limited is a public company operating globally in the finance and insurance sector. The company's offerings include building & contents insurance, insurance claims processing services and cybersecurity insurance. Founded in 1882, the company is currently headquartered in ZURICH with an estimated 34000... Subscribe to learn more
Liberty Mutual Insurance Group Inc.
Liberty Mutual Insurance Group Inc. is a private company operating globally in the finance & insurance sector. The company's offerings include building & contents insurance, cargo insurance, business interruption insurance, professional indemnity insurance, workers' compensation insurance. Founded in 1912,... Subscribe to learn more
Marsh & Mclennan Companies, Inc.
Marsh & McLennan Companies, Inc. is an insurance and advisory services provider to commercial and consumer clients. It organizes its products into two segments: the Risk and Insurance Services segment, which delivers risk management activities, insurance, and reinsurance broking and services, and the Consulting... Subscribe to learn more
Nationwide Mutual Insurance Co
Nationwide Mutual Insurance Co is a private company operating nationally in the finance & insurance sector. The company's offerings include building & contents insurance, commercial auto & truck insurance, business interruption insurance, professional indemnity insurance, group travel insurance. Founded in... Subscribe to learn more
Progressive Casualty Insurance Company
Progressive Corporation is an insurance holding company that operates throughout the United States. Its insurance subsidiaries write personal and commercial auto insurance, personal residential property insurance, and insurance for motorcycles, watercraft, and other recreational vehicles, and offer business-related... Subscribe to learn more
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Procurement Management KPIs for the Building & Contents Insurance Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Customer Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Data Security and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time |
|
Total number of inquiries Time from inquiry to response |
The average response time represents the amount of time it takes for the vendor to respond to a customer service request. Efficient customer service is paramount to the vendor-client relationship in insurance. |
| Customer Retention Rate |
|
Number of customers at start of period Number of customers added within period |
The customer retention rate represents how well a vendor is able to retain customers over a set time frame. It is much more profitable for insurance vendors to retain existing customers than to acquire new ones. Therefore, a higher customer retention rate is indicative of better business practices and financial health. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Service
What is the average wait time for a customer service representative to answer a question or concern?
What type of online customer services do you offer?
Experience and Expertise
How long have you been offering insurance to my industry?
How often do you communicate with clients during the policy period? What method do you primarily use to communicate with clients?
Policies
Do you process claims reported more quickly over the phone or over the internet? Do you process them in the order they arrive or in order of importance?
What is the average turnaround for processing a claim?
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Building & Contents Insurance RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organizations and explain why they need to procure building and contents insurance.
Buyers should provide a brief overview of the size of their organizations and the types of assets that will need to be covered by the policy.
Statement Of Need
Buyers need to give a detailed overview of what property they wish to insure, including its location, estimated value, sprinkler or security systems and size.
Buyers should include an estimate of the value of the contents of any buildings that will be insured.
Project Budget
Buyers should explain what their preferred premium is.
Buyers should include their preferred deductible and limit amounts.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
