By Bill Passarotti, SVP, HUB International Northeast For real estate owners and managers, it has never been more important to strategize with an experienced insurance advisor well ahead of the next policy renewal. The habitational property insurance market was hit hard with catastrophic claims over the last few years, the result of hurricanes, wildfires, severe storms and water damage. Multi-family buildings also saw significant wind and hail claims as well as an uptick in normal fire and water damage. A hard or hardening market means increased scrutiny in underwriting, significant premium increases, and carriers less willing to write policies for properties with any significant risk. While the insurance marketplace has been hardening for several years now, the year 2020 was unlike any other. A global pandemic, domestic civil unrest, economic uncertainty, unprecedented natural disasters, soaring liability judgements and nuclear verdicts fueled by social inflation contributed to making a challenging marketplace even worse. It’s not just legacy facilities with older systems that are experiencing increased costs and reduced coverage options. Even new luxury high-rises are being turned down by carriers because of an uptick in water damage claims due to faulty new construction. Water damage has become so common that underwriters are now asking for separate water deductibles, often significantly higher than that of other perils. Fortunately, there are a number of risk management and insurance considerations to follow that can help your real estate portfolio look its best in the eyes of the underwriters:
Engaging in proactive risk management and understanding current insurance considerations can soften the habitational property insurance market for any portfolio. Now more than ever, it is imperative to work with your insurance advisor to review your coverages and to understand what your P&C policies cover, what they don’t and the best ways to mitigate the individual and unique risks of your properties. CIANJ member, Bill Passarotti, currently serves as Senior Vice President with leading global insurance brokerage, HUB International. Based out of Summit, NJ, Bill works with businesses in a wide variety of industries on custom-tailored, comprehensive risk & insurance solutions. He can be reached at 908-666-6200 or [email protected]. For more information on HUB International, please visit www.hubinternational.com.
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8/26/2024 12:25:29 am
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