Miami got lucky with a near-miss from Hurricane Dorian, but that doesn’t necessarily mean we’re in for smooth sailing from here on out. In the wake of the storm, insurance experts are urging commercial real estate owners to check their policies and ensure that they’re fully prepared.
In an interview with Bisnow, one senior insurance agent encouraged commercial property owners to not only check their policies, but to also consider having an outside agent review the policy to look for potential gaps. Companies that ensure CRE properties are less protected by the state than those with residential policies, the agent said, which means that commercial property owners may be more exposed and should take extra precaution before the next storm arrives.
Here are some things CRE owners can do now, according to the agents at Saul Ewing Arnstein & Lehr:
- Review all contracts for weather contingencies
- Take photos and/or videos of your holdings
- Have your billing department account for all hours dedicated to hurricane preparation, cleanup and supplies, which can be part of an insurance claim
- Share emergency contact information with all parties involved
- Consider having a roof inspection and installing impact windows
- Make sure that all parties involved in your investment property are sufficiently insured
According to The Insurance Journal, reinsurance rates are likely to rise in January, in large part because of the natural disasters the country has experienced over the last two years. Standard & Poors says rates will likely rise around 5%, Fitch predicts 1-2%, and Moody’s expects anywhere from 0-5%. Now is as good a time as any to check your policy, ask questions, and make sure that you and your property are secure.
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