Survey: Commercial Property Owners Feel Confident in Their Buildings, but Less Certain They’re Fully Protected

Survey: Commercial Property Owners Feel Confident in Their Buildings, but Less Certain They're Fully Protected

Severe weather ranks as the top risk concern among business owners nationwide, yet few say they feel fully prepared for potential losses.

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A new surveyfrom Nationwide finds that commercial property stakeholders identify severe weather and natural disasters as the top risk to their properties, both today and over the next five years. While concern about weather-related threats is widespread, confidence in protection varies.

Nearly two-thirds of commercial property stakeholders - defined as property owners, new construction builders, and business owners - report being very or extremely concerned about severe weather risk and natural disasters in their area. Nationally, respondents feel most at risk from severe heat waves (69%), floods (69%), and damaging winds (65%). Top concerns tied to these risks are business interruption (56%), water intrusion/flood damage (41%) and structural damage (33%).

Risk perception also varies by region. Flooding and business interruptions rank among the top concerns nationwide, while specific risks are top of mind in areas prone to particularly damaging weather. In hurricane-risk states, concern about structural damage (39%) and broken windows (39%) exceeds national levels. In states prone to severe convective storms, stakeholders report heightened concern about roof damage (33%) and broken windows (33%), as well as ice storms and severe cold waves.

Even with widespread concern, less than half of national commercial property owners say they feel fully prepared for any of these weather risks.

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Property owners are investing in physical resilience
In response to growing weather risk, property stakeholders are taking meaningful steps to reinforce their buildings and operations.

• 61% have added backup power systems
• 60% installed weather-resistant windows or doors
• 57% developed or updated an emergency preparedness plan
• 54% added extra bracing for severe wind

Structural upgrades play a critical role in reducing damage and limiting disruption. At the same time, businesses are evaluating how their insurance coverage supports recovery should substantial losses occur.

Confidence in coverage is strong, but businesses are weighing their protection
Property owners' perceptions of insurance protection are nuanced. More than 8 in 10 say they feel well protected against severe weather losses; however, only 39% of those stakeholders say they feel fully protected - suggesting that while overall confidence in coverage is strong, fewer view their coverage as comprehensive.

Even with positive perceptions of coverage, cost considerations continue to shape insurance decisions.

• 41% believe commercial property insurance affordability has improved over the past year
• Still, 60% are interested in ways to manage insurance costs
• 55% would consider reducing coverage or insuring less property to lower premiums

Nearly all property owners report consulting with an insurance agent to review coverage and discuss risk management strategies. This ongoing professional guidance has become essential as weather-related risks continue to evolve.

Growing risks highlight opportunity for greater technology adoption
While many commercial property owners are concerned about weather and environmental damage, adoption of technologies designed to predict and prevent losses remains relatively low.

• Only 41% report using smart water leak detection or automatic shutoff systems
• Two-thirds do not use smart thermostats or temperature sensors
• Roughly three-quarters do not use environmental sensors that monitor conditions like temperature, humidity or air quality

The findings also point to a broader awareness gap: nearly 8 in 10 respondents (77%) wish there were as many technology solutions available to protect their business properties as there are for their homes. In reality, commercial-grade monitoring and protection tools are more widely available and advanced than residential offerings, and many insurers offer discounted access or incentivesfor businesses that adopt them.

Building a comprehensive approach
As severe weather risks continue to disrupt operations, insurance agents remain a critical resource for helping businesses navigate coverage decisions, identify mitigation opportunities and understand where technology can further strengthen their protection.

"Businesses have made meaningful investments to strengthen their properties, and that's encouraging," said Jason Ragsdale, Nationwide's leader of Risk Management Technical Specialization. "But resilience goes beyond the building itself. It requires a comprehensive approach that includes risk mitigation, continuity planning and insurance coverage that reflects today's evolving risks."

Methodology
Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey of 300 commercial property stakeholders from January 24 to February 13, 2026.