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 | Jun 11, 2020
USGBC offers new pilot credit to address green cleaning and COVID-19
Provides guidance on cleaning and disinfecting buildings using green cleaning best practices.
Codes and Standards | Jun 10, 2020
AIA issues tools for reducing risk of COVID-19 transmission in buildings
Tailored strategies offered for offices, retailers, schools, and senior living facilities.
Codes and Standards | Jun 8, 2020
OSHA construction safety inspections fall 84% during COVID-19 pandemic
Agency focuses on preventing disease transmission in healthcare industry.
Codes and Standards | Jun 8, 2020
5 must reads for the AEC industry today: June 8, 2020
Frank Lloyd Wright sites set to reopen and construction jobs rise by 464,000.
Codes and Standards | Jun 8, 2020
Reopened offices raise liability risk for businesses and owners
Risks may not be covered by property insurance.
Codes and Standards | Jun 4, 2020
American Wood Council updates report on fire resistance of wood members and assemblies
Provides new examples and background on mass timber calculations.
Codes and Standards | Jun 3, 2020
Virginia makes GCs liable for subs employee wages
New law allows workers to sue GCs for wages in class action.
Codes and Standards | Jun 2, 2020
Designers, owners reinventing restaurants to cope with COVID-19
Options include rearranged seating, mobile ordering, designated flow spaces.
Codes and Standards | Jun 1, 2020
How owners should comply with OSHA roofing safety guidelines
Buildings should have fall protection and restraint provisions for those who go on roofs.
Codes and Standards | May 29, 2020
AIA releases new, updated sustainable project documents
Streamlined sustainable design and construction process included.