The way people live, work, play, and interact has altered dramatically due to the COVID-19 pandemic, and may continue to change.
To position themselves for success, real estate owners, operators, managers, and developers will need to adapt to and focus on the long-term implications of these shifts, including evolving climate change and technology risks.
Whether your business is facing new environmental liabilities, grappling with more demanding lender requirements, or evaluating alternatives in risk financing, you can benefit from advice and guidance from risk management advisors with an in-depth understanding of your industry.
Real estate companies should find ways to become more resilient to future risks. Marsh's specialists put their expertise to work in helping you find appropriate approaches to your specific challenges wherever you face them.
Featured insights
11/29/2023
Risk in Context Podcast: Adapting real estate to fit the cities of the future
Evolving nature of work, to shifting requirements of residents and businesses, many cities around the world are experiencing significant changes.
08/09/2021
Risk in context podcast: The future of cities
Marsh’s Paul Foye and Marc Reisner and Oliver Wyman’s Rory Heilakka look at how COVID-19 and other trends will affect cities and the way people live and work.
FAQs
For the properties you own or intend to purchase, you'll want protection that goes beyond the basic standards (e.g., provisions for fires, hailstorms, tornadoes, wind damage, vandalism, and theft of non-cash business assets) and accounts for extraordinary circumstances:
- Extreme weather events (e.g., flooding, earthquakes, hurricanes, and landslides/mudflow)
- Cash theft
- Loss of rental income
- Terrorism
- Financial crime
- Political risk
Along similar lines, a general liability policy, broad as it can be, may not be enough to fully protect your property interests. Excess liability provisions you should consider include:
- Directors and officers
- Errors and omissions
- Environmental damage
- Injury (to you and your employees)
The answer to this question depends largely on how long you believe you'll be holding onto the properties that you and your development firm are designing and building.
For example, if your plan is to sell commercial buildings as soon as possible, certain property and casualty provisions will likely become your buyers' responsibility before they can be yours. By contrast, you, unlike them, would need comprehensive builders risk coverage to account for potential mishaps during construction.
On the other end of the spectrum, if developing real estate for your own business use, it's in your best interest to protect it with insurance as wide-ranging as the risks your properties will face.
Risk is unavoidable in the real estate market. While most developers or investors in residential or commercial property are generally aware of risk, it's easy to lose sight of specific risks and subsequently be caught off-guard — and without a critical contingency plan or safety net — when the unexpected actually happens.
Working with the experts at Marsh will help prepare you more effectively for both expected and extraordinary hazards. Our real estate team draws on extensive experience and a truly global perspective, and we're ready to help you find a streamlined and tailored risk management solution.
