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
Resiliency | Jun 1, 2016
Federal agencies boost standards for more resilient construction
HUD, FEMA, GSA, Army Corps of Engineers make policy changes.
Green | May 31, 2016
Miami Beach requires developers to meet green standards or pay a fee
Applies to structures larger than 7,000 sf.
Codes and Standards | May 27, 2016
Better enforcement needed for successful implementation of energy efficiency policies
Commercial buildings the focus of recent code initiatives.
Codes and Standards | May 25, 2016
LEED Dynamic is worth the effort, says commercial real estate executive
San Diego office tower is California’s first office building to receive LEED Dynamic plaque in recertification.
Codes and Standards | May 24, 2016
Ontario planning to spend $7 billion on wide-ranging climate change plan
Includes financial incentives to retrofit buildings.
Codes and Standards | May 23, 2016
Facility managers say Internet of Things, analytics will impact maintenance soon
More reliable data needed for optimal results from the technology.
Codes and Standards | May 20, 2016
Industry leaders call for wider use of bamboo as a building material
Benefits include seismic resiliency and sustainability.
Codes and Standards | May 19, 2016
Asphalt roofing group publishes updated shingle installation guide
Technical manual provides best practices for roofing professionals.
Codes and Standards | May 16, 2016
EPA proposes new stormwater discharge regulations for construction sites
Would apply to sites of one or more acres.
Roofing | May 16, 2016
New guide focused on increasing energy and structural performance with raised-heel trusses
Higher trusses simplify attic ventilation, leave more space for insulation.