Although the 2006 storm season was a blessedly quiet one for most insurers and property policyholders, the massive hurricanes that hit in 2005 and 2004, along with the potential for future catastrophes in disaster-prone areas, have made for a case of haves and have-nots when hotels seek to obtain insurance.

"It's really a tale of two markets," said Brian Ruane, a senior vice president and director of the real estate and hotel practice of Willis Group. "One of them is softening and the other is just stabilizing, with some areas that are still seeing increases because of catastrophes."

Virtually every market line--including third-party liability and commercial auto coverage--are seeing a softening trend for those outside of catastrophe-prone areas, he noted. But those in earthquake zones or along wind-threatened locations across the Gulf Coast and parts of the Eastern seaboard are still paying for the potential losses another major event would bring.