Insurance Escalation Pass-Through Calculator

Insurance premium jumps pass through to tenants under base-year leases. This calculator sizes recovery by tenant share.

Current premium

Base year premium

Occupied SF

Total building SF

Tenant pass-through

$7,714

Total escalation

$27,000

Escalation %

39.7%

How the math works

Pass-through = premium escalation × tenant share. Base year is contract reference.

Shop insurance every renewal cycle. Broker commission incentivizes status quo; pressure them to bring multiple bids. Lower premium = lower pass-through = happier tenants + higher retention.

How to Use

Enter current premium.
Enter base year premium.
Enter occupied SF / building SF.
Read pass-through.

Frequently Asked Questions

Why premiums rise?

Hard insurance market — carriers pulling capacity, raising rates post-catastrophe. Property-specific: claims history, building age, construction type drive rates.

Pass-through limits?

Some leases cap year-over-year escalation at CPI or 5%. Check every lease. Uncapped = LL recovers everything but tenant relationships suffer.

Alternatives?

Shop insurance annually. Raise deductible for premium cut. Umbrella spread over property group. Bulk buy for portfolios. Insurance broker shop alone worth 15-25% premium savings.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.