HOUSINGNEWS REPORT
REAL ESTATE INSURANCE: FENDING OFF DISASTER IN A CHANGING WORLD
BILLION-DOLLAR WEATHER & CLIMATE DISASTER COSTS BY YEAR
FREEZE
TROPICAL CYCLONE DROUGHT
FLOODING
SEVERE STORM
WILDFIRE
WINTER STORM
350
300
250
200
150
100
50
0
SOURCE: NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
events and what it will mean for their viability in the coming years and decades,” said Mark Gibbas, President and CEO with Weather Source. “It is a bit hard to speculate on how these companies will evolve, but I think it is safe to say that they will avoid putting themselves at increased risk without significantly increasing premiums to take on this risk.” Gibbas told the Housing News Report that efforts are now underway to plan for insurance coverage in the future. “The Task Force for Climate Disclosure (TCFD),” he said, “is an organization that is advocating for banks, financial institutions, reinsurance/insurance, and similar companies to engage on climate change so as to not be blindsided from it.” Already, says the Task Force, it has more than 500 supporting organizations worldwide, including
“Insurance carriers will certainly cancel policies in instances where there are repeat fires, and often do not provide coverage in high-risk areas.”
ROBYN MARKOW AVP OF CLIENT RELATIONS QUALITY CLAIMS MANAGEMENT CORPORATION
U.S. backers such as Accenture, Bank of America, Blackrock, CalPERS, and CitiGroup. “Insurance carriers will certainly cancel policies in instances where there are repeat fires, and often do not provide coverage in high-risk areas,” said Robyn Markow, AVP of Client Relations with the Quality Claims Management Corporation, a licensed public adjuster that provides hazard insurance-related services to the mortgage industry and consumers.
to Insurance Requirements) plans which are state-mandated programs that provide insurance to dwellings considered high risk. However, these plans are considered a ‘last resort’, and often coverage is not comprehensive — for instance, it may specifically exclude damage by volcano if it is in a potential lava path. Consequently, properties that are most at risk are left with the least amount of coverage.” “While an insurance company could drop a customer due to too many claims on an individual basis,” Keith Balsiger, president of Nevada-based
“Fortunately for these areas,” she continued, “there are FAIR (Fair Access
2
OCT 2018 | ATTOM DATA SOLUTIONS
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