Why this review matters
A real estate portfolio should be reviewed as both a collection of individual properties and a combined balance-sheet exposure. Location detail, lease allocation, property values, income, and concentration all influence program design.
Information to prepare
- A complete statement of values with occupancy and construction
- Lease language showing insurance and indemnification responsibilities
- Replacement-cost estimates and recent capital improvements
- Net operating income, rents, and realistic restoration periods
- Property management agreements and vendor controls
Decisions to discuss
- Blanket limits, occurrence limits, and catastrophe sublimits
- Business income and extra-expense methodology
- Ordinance or law and equipment breakdown needs
- Ownership entities, additional insureds, and umbrella structure
Common pitfalls
- Assuming purchase price equals insurable value
- Leaving vacant or renovation properties unidentified
- Ignoring geographic concentration
- Relying on certificates without reviewing contract requirements
Frequently asked questions
Why review leases during insurance planning?
Leases can allocate responsibility for property, liability, waivers, deductibles, and additional insured status. Those provisions should align with the insurance program.
What is geographic concentration?
It is the accumulation of insured values that could be affected by one event, such as a storm, wildfire, earthquake, or flood.
Coverage descriptions are general. Availability, eligibility, limits, exclusions, and policy terms vary. Review actual policy documents and requirements with an appropriate insurance professional.