Modern Home Builders Issue 135 October 2024 | Page 21

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Insurance
Compliance failures can result in fines , legal challenges , or worse – an inability to secure adequate coverage .
Steering through the storm
So , what can be done ? Multifamily developers don ’ t have to sit idly by as insurance costs spiral out of control . There are several strategies that can help navigate these challenges : 1 . Risk management : Implementing robust risk management practices can help minimize claims and reduce insurance costs . Regular maintenance , safety protocols , and disaster preparedness plans are critical components of this strategy . Developers should also communicate these efforts to insurers to demonstrate their commitment to managing risk proactively .
2 . Creative insurance solutions : Multifamily developers need to explore creative insurance solutions that go beyond traditional coverage . This might include working with multiple insurers or seeking out specialized brokers who can tailor coverage to the unique needs of the property . A one-size-fits-all approach simply doesn ’ t work in today ’ s environment .
3 . Tailored programs : Developing bespoke insurance programs that account for specific risks and financial models is essential . By customizing policies to fit the exact needs of the property , developers can ensure they are neither overpaying nor underinsured .
4 . Regular reviews and adjustments : The multifamily real estate landscape is constantly changing , and insurance policies need to evolve with it . Regularly reviewing and adjusting coverage ensures that developers are not caught off guard by changes in risk or policy terms .
5 . Professional advice : Finally , consulting with insurance professionals who specialize in real estate and construction is crucial . A knowledgeable advisor can help developers navigate the complexities of the insurance market , ensuring they are properly covered without overpaying .
The path forward
The insurance landscape is undoubtedly turbulent , but developers don ’ t have to face these challenges alone . With the right strategy and partners , they can weather the storm . Risk management , creative solutions , tailored programs , and expert advice are the keys to success .
Multifamily developers have enough on their plates without having to worry about the intricacies of insurance . By taking a proactive approach and working with specialists , they can reduce costs , mitigate risks , and focus on what they do best : creating vibrant communities and housing opportunities . ■
Matt Burns www . symphonyrisk . com
Matt Burns is President of Symphony Build , Symphony Risk Solutions ’ specialty business focused exclusively on the risk management and human capital needs of real estate and construction businesses .
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