Property Rates Are Dropping. Liability Is Spiking. 5 Moves to Make Before Your Next Renewal

The 2026 insurance market is pulling a classic "switcheroo." If you’ve been dreading your property renewals after years of brutal hikes, there’s finally some light at the end of the tunnel. But don't start celebrating just yet.

While the cost to insure your buildings is finally cooling off, the cost to protect your business and family from lawsuits is heating up. According to the latest data from Marsh for Q2 2026, we are seeing a massive divergence in the P&C (Property and Casualty) market that every Texas business owner and family needs to understand.

At Eagle-Watch Solutions, we believe in surgical insights: stripping away the jargon to show you exactly how these global shifts affect your local protection.

The Tale of Two Markets: Marsh Q2 2026 Data

The numbers coming out of the mid-year reports are eye-opening. For the first time in years, the property market is showing real signs of relief, while the liability side is tightening its grip.

Property Rates Are Cooling

Global commercial property rates have dropped roughly 12%, but the relief is even more pronounced here at home. In the United States, property rates are down 13%.

Why is this happening?

• Reinsurance Relief: Property catastrophe (Cat) reinsurance rates fell 16% year-over-year.

• Florida’s Ripple Effect: June 1st renewals in Florida: often the bellwether for the rest of the US: saw rate reductions of up to 20%.

• Excess Capacity: Carriers are finally sitting on enough capital to start competing for your business again.

Liability Is the New Headache

On the flip side, casualty and liability rates are climbing. Globally, casualty is up 2%, but in the US, the numbers are much sharper. US Casualty rates rose 7%, while US Excess Casualty spiked by a staggering 15%.

If you are a business owner in Texas, you know why: litigation is getting more expensive. "Nuclear verdicts": those massive jury awards exceeding $10 million: are becoming more common, and insurance carriers are reacting by raising prices and limiting how much coverage they’ll offer in a single layer.

Carrier Spotlight: The Hartford 2026 Trends

Even the giants are feeling the squeeze. A look at The Hartford's 2026 performance tells the story of the current market. Their premiums are rising: especially in small business, where they saw an 8% increase: but their margins are narrowing in specific areas.

While they are still highly profitable, carriers like The Hartford are dealing with higher expense ratios and tougher trends in disability and long-tail liability. This means even if the market "softens" on the property side, carriers will be looking to make up that revenue elsewhere. They are becoming more selective about the risks they take, focusing on "business quality" over just volume.

Why This Matters for Texas

In Texas, we live in a "Risk-First" reality. Between the Gulf Coast hurricanes and the unpredictable hailstorms in North Texas, property insurance has always been our biggest line item.

The 13% drop in US property rates is great news for a Dallas office building owner or a Houston homeowner. However, the 15% spike in excess liability is a major warning sign for Texas contractors, trucking companies, and even high-net-worth families. In a state known for large litigation awards, "just enough" coverage isn't enough anymore.

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5 Moves to Make Before Your Next Renewal

Knowing the data is one thing; acting on it is another. Here are five strategic moves you should discuss with your advisor before your policy expires.

1. Fix Your Replacement Cost "Gap"

For years, inflation sent construction costs through the roof. Many Texans under-insured their properties to keep premiums down.

• The Move: With property rates dropping 13%, use those savings to increase your Building Replacement Cost values. You can finally afford to insure your property for what it’s actually worth today without breaking the bank.

2. Audit Your Liability "Layer Cake"

Because US Excess Casualty is up 15%, many carriers are refusing to provide large "umbrellas" by themselves. They are cutting their limits from $10 million down to $5 million.

• The Move: Check if your current carrier is planning to "short-limit" your liability. You might need to "layer" your coverage: stacking multiple smaller policies from different carriers to get the total protection you need.

3. Leverage the Reinsurance Drop

Catastrophe reinsurance is down 16%. This is the "insurance for insurance companies." When their costs go down, your costs should eventually follow.

• The Move: Ask your agent: "How much of the 16% reinsurance rate drop is being reflected in my property renewal?" If your rate is staying flat while the carrier's costs are dropping, it’s time for a Free coverage review.

4. Focus on Your "Casualty Profile"

Carriers are looking for any reason to hike liability rates. They are scrutinizing safety records, employee handbooks, and "Social Inflation" risks more than ever.

• The Move: Clean up your digital and physical paper trail. Documented safety meetings and clean driving records for company vehicles can help you bypass that 7% US casualty increase.

5. Shift to a Strategic Renewal Timeline

Don't wait until 30 days before expiration. In a market where property is falling and liability is rising, carriers are moving at different speeds.

• The Move: Start your renewal process 90 days out. This gives your agent time to "shop" the property side to get the best credits and "negotiate" the liability side before the spikes hit.

Quick Takeaways for 2026

• Property: Rates are down ~13% in the US. It’s a buyer’s market.

• Liability: Excess layers are up ~15%. It’s a seller’s market.

• Reinsurance: Costs are down 16%, providing much-needed relief for property owners.

• Texas Focus: Use property savings to beef up liability limits against nuclear verdicts.

The Bottom Line

The 2026 insurance landscape is nuanced. You can't just look at the bottom-line number and assume you're getting a good deal. A lower premium might mean you're saving on property but leaving yourself dangerously exposed to a liability spike.

At Eagle-Watch Solutions, we specialize in connecting these evolving regulations and market shifts with real-world decisions. We help you navigate the complex details so you can take confident next steps.

Want to see where your current policy stands in this shifting market?

Get quoted today or schedule a Free coverage review to make sure you're capturing the property savings while plugging the liability gaps.

www.eaglewatchsolutions.com