Climate action
Climate disasters bring dark clouds over North American insurance rates
Four ways to ride out the rising tide.
Photography by Juan Di Nella courtesy of Unsplash
Costly (or in some cases totally non-existent) insurance rates are making commercial real estate deal closures challenging.
It’s a pattern sweeping cities across North America, as risk of a major climate event becomes an increasingly important factor for available insurance rates.
For commercial real estate owners and operators it could have you saying, well, what do we do now?
Keep reading for four ways to ride out the rising tide of insurance.
1.
Retrofit your properties
Investment in preventative retrofit measures can help build a building’s resiliency and lower risk – possibly to a return of more than a $100 decrease in estimated loss exposures for every dollar spent.
2.
Utilize discounts, loans and incentives
Curb costs through tapping into community-driven programs that exist to benefit properties in times like these. It’s worth checking to see which options your provider supports-don’t leave hidden opportunities on the table.
3.
Bundle your risk
Grouping high- and low-risk properties together can lead to lower rates collectively across your portfolio.
4.
Layer your coverage
Know what is currently covered with existing coverage and become mindful of the gaps. Consider what layers of additional coverage are available with your current provider, other providers, or what self-insured coverage options could support greater levels of protection for the future.
Learn more about the current insurance market and ways to mitigate climate risk on rates across property and portfolio in our Drivers of Change thought piece, Rising tide of insurance.