Some of the nation’s largest commercial property insurers have put moratoriums on issuing new insurance policies and renewing current ones due to fear of potential civil unrest resulting from a closely contested presidential election.
The multifamily sector has been most impacted, but other all sectors have been affected. The situation has been most acute in urban areas, including Chicago, New York, Portland, Ore., and Los Angeles.
Some insurance carriers haven’t pulled back from the market, but even a few lenders waiting things out to see what happens following the election is burdensome for larger projects. In the current climate, projects cannot secure builder's risk coverage from just one carrier and must instead use three or four carriers. That raises project costs.
Insurers that have instituted moratoriums say they will continue to put policy decisions on hold until at least after the election. If the election becomes a drawn-out, litigious affair, that may mean moratoriums could be extended for many weeks.
Related Stories
Green Specifications | Jul 8, 2016
World Green Building Council sets goal of 100% net-zero buildings by 2050
All new buildings and major renovations to be net-zero by 2030.
Market Data | Jul 7, 2016
Airbnb alleged to worsen housing crunch in New York City
Allegedly removing thousands of housing units from market, driving up rents.
Urban Planning | Jul 7, 2016
Y Combinator project would build new city using new technology, urban policies
Zoning, property rights, building codes all could be re-imagined.
Green | Jul 6, 2016
U.S. healthcare system’s GHG emissions rise 30% in past decade
If U.S. healthcare were a country, it would rank 13th in GHG emissions.
Codes and Standards | Jul 5, 2016
State legislature fails to pass law to extend design-build for New York City projects
Would have allowed five city agencies to use alternate delivery method.
Energy | Jun 30, 2016
Energy Department partnership with CoStar Group will study sustainability impact on property valuation
Database will offer rich data set on energy-efficient buildings in the U.S.
Contractors | Jun 30, 2016
Chicago contractor found guilty of fraud on city’s requirement on minority-owned businesses
Alleged to have been sham business in bid to win city public works contract.
Codes and Standards | Jun 29, 2016
OSHA starts evaluation of construction industry noise standards
New studies indicate significant number of construction workers suffer hearing loss.
Seismic Design | Jun 28, 2016
ASTM International updates seismic risk standards
Expected to improve consistency of risk evaluation on commercial real estate transactions.
Codes and Standards | Jun 17, 2016
Feds publish framework for evaluating public-private partnerships
No single factor determines whether a project yields stronger benefit as a P3.
