The financial loss of a real estate company can be caused by natural catastrophe, vandalism, and hidden policy exclusions that limit recovery when losses occur.
Here is a list of solutions addressing real estate risks provided by Property Casualty 360.
Removal of Coinsurance Clauses
Coinsurance Clauses are often found in property policies. If the limit of insurance purchased by an insured is not at least equal to a specified percentage of the value of the insured property, Coinsurance Clauses can restrict the loss recovery.
Real Estate Companies should leverage a process that will include the removal of the Coinsurance Clause from the property policy to provide full replacement cost following a covered property loss.
Enhancement of Vacancy Coverage
Vandalism, theft, sprinkler leaks and water damage from pipes are eliminated when a building that has standard property policies containing certain limitations of coverage is vacant for more than 60 days.
Partnership with brokerage firm should be considered by real estate company owners to identify loss prevention measures for low-level occupancy locations and have them negotiate with carriers to remove any vacancy coverage restrictions.
Elimination of Subcontractor Warranties and Limitations
Managers and owners must look out for many exclusions and restrictions when obtaining general liability coverage. Exclusions or warranties relating to construction, repair or renovation work for the owner by contractors can be identified by a thorough review of the general liability policies Real Estate Company owners should make a request with their carriers to remove any exclusionary or warranty wording as it relates to the work.
Risk Quantification through Modeling for Catastrophe
Catastrophe Modelling are done to help real estate owners be prepared for any financial impact by anticipating the likelihood and severity of catastrophe events-from earthquakes and hurricanes to terrorism and crop failure.
Proper analysis of the catastrophe modelling and negotiation with carriers can reduce the loss estimate and corresponding premium of a property.
