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
Codes and Standards | Jul 15, 2020
Softwood-lumber duties boost expenses amid COVID-19 outbreak
Little hope this year for resolution of trade dispute with Canada.
Codes and Standards | Jul 14, 2020
Metal Construction Assn. releases three EPD updates
Pertain to Metal Composite Materials, Insulated Metal Panels, and Roll Formed Aluminum and Steel Cladding.
Codes and Standards | Jul 13, 2020
5 must reads for the AEC industry today: July 13, 2020
4 technologies for improving building sanitation and tech's ever-evolving impact on the multifamily space.
Codes and Standards | Jul 9, 2020
Funding opportunity for field validation of high-impact building technologies
Dept. of Energy program targets dynamic interactions with electric grid.
Codes and Standards | Jul 8, 2020
Standards for reducing risk of COVID-19 in senior living communities
AIA releases strategies and illustrations for the sector.
Codes and Standards | Jul 6, 2020
Guide presents benefits of public-private partnerships
Discusses process from project conception to construction.
Codes and Standards | Jul 1, 2020
COVID-19 public health guidelines may be downplaying building systems solutions
Emphasis on cleaning surfaces overlooks importance of mechanical infrastructure.
Codes and Standards | Jun 30, 2020
WELL building institute steps up health safety rating for hotels and resorts
Certification body forms advisory group of industry leaders and health experts.
Codes and Standards | Jun 30, 2020
7 must reads for the AEC industry today: June 30, 2020
Affordable housing comes to the Bay Area and this is not the end of cities.
Codes and Standards | Jun 29, 2020
Mandated building retrofits are necessary to meet climate crisis
Performance standards could greatly reduce GHG emissions.