Real estate tells a new story
The “return to normal” that was expected in the real estate industry is not yet in sight. Instead, 2022 is about how owners and operators position themselves to maximize opportunities while addressing the impact of COVID-19.
To survive, some real estate owners and operators reinvented themselves in 2021 and diverted real estate to meet the demands of new markets.
In 2022, we will continue these efforts to address ubiquitous catastrophe exposure, increased risk of legal liability, and changing demand. At the same time, the residential real estate portfolio faces major challenges.
Also, due to the surge in telecommuting, demand for commercial real estate is still well below pre-pandemic numbers.1 Retail has recovered somewhat, benefiting from stagnant demand, but the transformation of the sector will accelerate given the diversion of empty storefronts and the conversion of vacant shopping malls into warehouses.2
In terms of risk, COVID-19 was not the only one that shaped the 2021 real estate market. Wildfires, coupled with an unexpected and severe freeze in Texas, have exhausted a significant portion of property insurance capacity.3 Hurricane Ida alone packed a $ 25 billion punch.Four
At the same time, the tragic collapse of the Champlan Tower and the shadow of some natural disasters have increased the risk of housing assets. As a result, real estate owners with high-rise apartment buildings in their portfolio need to layer their policies to even ensure baseline coverage needs.
Due to the difficulty of ensuring coverage and the narrow coverage of insurance, owners of many small single real estate and large portfolios will be adequately compensated during another pandemic blockade or a seizure of civil unrest. If there is no scope, you are afraid of frequent and serious charges.
However, some real estate sectors (entertainment, institutional investors, and to a lesser extent retail) are seeing improvements in business and insurance. A complete picture of underwriters’ risk management and operations management is now essential to ensuring coverage.
Are you interested in the details? Download your own transportation insurance market and rate report The report also provides recommendations on how to minimize business risk and strengthen your position at the insurance company.
1 VTS, VTS Office Demand Index (VODI) Monthly Report, August 2021.
2 PwC, Urban Land Institute, New trends in real estate 2021, Accessed on September 17, 2021.
3 S & P Global, “Insurance capacity shrinks as the threat of wildfires in the United States grows, “July 21, 2021.
Four “”Extratropical Cyclone Loss Can Reach $ 25 Billion: Fitch, Business insurance. August 30, 2021.
HUB International2022 Risk and Insurance Real Estate Outlook
https://www.commercialsearch.com/news/hub-international-2022-risk-and-insurance-real-estate-outlook/ HUB International2022 Risk and Insurance Real Estate Outlook