With hurricane season for the Atlantic region starting on June 1, many commercial real estate owners take a careful look at their assets, knowing that while forecasters are predicting a quiet season with nine tropical storms and three hurricanes, it only takes one bad storm to devastate a property. In a GlobeSt.com interview titled What 2014's Hurricanes Could Cost You, Evan Seacat, a director for Franklin Street Insurance Services, offers some insights into what commercial property owners do from an insurance perspective to prepare for hurricane season. An excerpt follows:
What can building owners do now to try and save money on their policies?
The answers don't involve shopping around for a new policy. Policies written during, and even within months of the hurricane season, can be anywhere from 10% to 30% higher than those written outside of June through November.
Time is better spent reviewing your properties and policies. Be sure to have proper precautionary measures in place at each location—clean gutters, reinforce roofs—these efforts could avoid costly claims. Reviewing your policy and understanding your coverage also helps avoid any surprises that may arise when a claim is filed.
Can commercial property owners take advantage of mitigation credits?
Credits are based on a number of factors such as location, when your building was completed, when and how your roof was constructed and window protections. Start by obtaining a building inspection, which is inexpensive compared to the potential savings.
Compare the report to what you have on file with the insurer. For example, one property owner in South Florida lost 10 years' worth of savings because they did not conduct an inspection and correct the windstorm mitigations on his properties. After we updated the policy, our client saved nearly $150,000 in one year by providing their insurer with the correct portfolio information.
For more news and information visit Blumberg Capital Partners.
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