Are developers asking for the moon on a stick when it comes to finding competitively priced P&C insurance for their frame construction projects? (Credit: Kononova Nina/Shutterstock.com)
With inflation the highest it's been in 40 years you don't need a weatherman to know which way the wind blows. But let's take a closer look at the changing attitude of insurance carriers toward construction materials and how this has contributed to rising costs and greatly reduced options for coverage for U.S. property developers.
High-profile claims relating to fire have resulted in carriers putting frame construction buildings under the magnifying glass in recent years. From a builder's risk and insurance perspective, developers are being quoted rates that can be five times, sometimes even closer to 10 times, the cost of property insurance for projects using alternative materials.
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