Strategies For Real Estate Catastrophe Property And Liability Exposures

James D Kuhn

Set Up Proper Limits Based On Catastrophe Modeling

Catastrophe models are able to input accurate and details physical characteristics of individual properties into the modeling software. To effectively utilize catastrophe models as basis of setting up proper limits will require a combination of actuarial analysis, information gathering and negotiation.

Obtain Secondary PropertyCompanies can model results to better understand locations that are exposed to natural catastrophe risks driving the loss estimate with the help of the right risk management partner. Companies can be sure that they are accurately reflected in the loss output with the goal of directly reducing premium when they obtained detailed data regarding the location.

Eliminate Subcontractors Warranty And Limitations

Warranty language exclusions are often included in the policy, and can create significant financial exposure for companies. Negotiations for the removal of the warranty language exclusions from the general liability policy can fill in a potential costly gap.

Liability ExposureYou need information on liability exposures to assess risk at properties you’re insuring. Premises exposures, such as storage areas, balconies, stairs, and handrails, can play a significant role in underwriting decisions. You also need accurate information on other premises exposures, including swimming pools, animals, lighting, fire escapes, and elevators

Alignments Of Policy Coverage With Contractual Exposures

Review contracts and coverage's that are being transferred to make sure that the content of relevant policies supports the agreed contractual obligations of both the company that will transfer the liability and the company that will assume the liability.

Risk Improvement Statements

Risk Improvement Statements provide valuable information for underwriting and rating insurance for a particular property. For the building and each occupant, you'll get specific information to identify hazardous conditions and suggest remedial action, and to highlight fire-protection improvements and suggest modifications. When using SPI Plus®, you can select one or more Risk Improvement Statements

Exposures

Exposure data on adjacent buildings, including exposing walls, hazards, construction, and distance can provide critical underwriting information. For example, a situation where a property is close to a high-hazard operation or adjacent to a storage tank with flammable liquids can present potential risks. You should be aware of additional exposures, including local wildfire risk, possibility for damaging winds and water, and how close the structure is to a flood or earthquake zone.