By Robert L. Knight, AIA, Principal, National Client Manager, Partner Engineering and Science, Inc., published May 29, 2024
Attendees at the 2024 Construction Lenders Risk Management Forum discussed strategies to address ballooning insurance costs and keep deals on track.
At the recent Construction Lenders Risk Management (CLRM) Forum, one common concern among the nearly 200 industry professionals present was the growing impact of skyrocketing insurance costs on transactions. Increasing frequency and severity of climate events such as storms and wildfires have triggered steep increases in property insurance premiums. For many, insurance costs are as significant as interest rates when determining whether a deal is viable.
While this is an industry-wide challenge, there are some strategies for lowering costs. Two strategies discussed at the CLRM Forum involved tailoring insurance coverage to suit risk tolerance and evaluating actual property conditions in order to provide detailed, focused data to insurance underwriters.
In this Globe St. article, Robert L. Knight discusses the strategies explored at the CLRM Forum regarding ballooning insurance costs.
