By gathering key property data and providing proper documentation to insurers, CRE owners may be able to secure reduced premiums and/or coverage for properties in high-risk areas.
Published in Summit, Issue 13, by Bob Geiger, Principal & Executive Director at Partner ESI
It’s no secret the US property insurance market is in crisis and costs are at an all-time high. Natural disasters and climate-related events have led to over $100 billion in insurable losses annually for the past five years. Premiums have doubled, and in riskier areas, risen by 500. In addition, replacement costs have increased due to rising construction material costs and labor shortages. Underwriting is also challenging, with higher levels of scrutiny required to establish insurable value and assess risk. Some assets, particularly those in coastal or disaster-prone areas, may not be insurable at all.
Fortunately, there are tools available to support commercial real estate (CRE) investors and property owners seeking the coverage they need. A multi-disciplinary valuation approach can support accurate replacement values. By gathering key property data and providing proper documentation to insurers, CRE owners may be able to secure reduced premiums and/or coverage for properties in high-risk areas…
Read the full article.
