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 | May 29, 2020
AIA releases new, updated sustainable project documents
Streamlined sustainable design and construction process included.
Codes and Standards | May 28, 2020
USGBC outlines how it will support pandemic recovery efforts
Includes emergency guidance and upgrades to the LEED green building program.
Codes and Standards | May 27, 2020
Office market could be COVID-19 casualty
As companies get used to work at home, post-pandemic office market could collapse.
Codes and Standards | May 26, 2020
Architectural Reuse Council will step up efforts to reuse construction waste
Cabinets, appliances, lighting, and lumber diverted from landfills to be repurposed.
Codes and Standards | May 26, 2020
Is CLT really a green solution?
Sustainability depends upon forest stewardship, product manufacturing process.
Codes and Standards | May 20, 2020
St. Louis is first Midwest city to pass building energy performance standard
Allows owners broad flexibility on how to achieve goals.
Codes and Standards | May 20, 2020
Supreme Court says Georgia cannot copyright its entire official code
Ruling may have implications for other states claiming copyright for building codes.
Codes and Standards | May 18, 2020
Strategies to reduce personal contact in multifamily properties
Design can improve health amid COVID-19 pandemic.
Codes and Standards | May 18, 2020
Canada Green Building Council says building industry lacks zero-carbon skills, knowledge
Net-zero target requires shift in thinking and practices.
Codes and Standards | May 18, 2020
California’s grid can support all-electric buildings
Load-shifting will help reduce peak demand.
