This document provides strategies for managing real estate catastrophe risks and property and liability exposures, including: 1) Using catastrophe modeling software to input property characteristics and effectively set insurance limits based on actuarial analysis and data gathering. 2) Obtaining secondary property insurance and working with risk partners to better understand locations exposed to natural catastrophes and reduce premiums. 3) Negotiating to eliminate subcontractor warranty exclusions from general liability policies to avoid potential costly gaps in coverage.

1. Strategies For Real Estate Catastrophe
Property And Liability Exposures
James D Kuhn

2. Set Up Proper Limits Based On
Catastrophe Modeling
Catastrophe models are able to
input accurate and details physical
characteristics of individual
properties into the modeling
software. To effectively utilize
catastrophe models as basis of
setting up proper limits will require
a combination of actuarial analysis,
information gathering and
negotiation.

3. Obtain Secondary Property
Companies can model results to
better understand locations that are
exposed to natural catastrophe risks
driving the loss estimate with the
help of the right risk management
partner. Companies can be sure that
they are accurately reflected in the
loss output with the goal of directly
reducing premium when they
obtained detailed data regarding the
location.

4. Eliminate Subcontractors Warranty And
Limitations
Warranty language exclusions
are often included in the policy,
and can create significant
financial exposure for
companies. Negotiations for the
removal of the warranty
language exclusions from
the general liability policy can fill
in a potential costly gap.

5. Liability Exposure
You need information on liability
exposures to assess risk at properties
you’re insuring. Premises exposures,
such as storage areas, balconies,
stairs, and handrails, can play a
significant role in underwriting
decisions. You also need accurate
information on other premises
exposures, including swimming pools,
animals, lighting, fire escapes, and
elevators

6. Alignments Of Policy Coverage With
Contractual Exposures
Review contracts and coverage's that
are being transferred to make sure
that the content of relevant policies
supports the agreed contractual
obligations of both the company that
will transfer the liability and the
company that will assume the
liability.

7. Risk Improvement Statements
Risk Improvement Statements provide
valuable information for underwriting and
rating insurance for a particular property.
For the building and each occupant,
you'll get specific information to identify
hazardous conditions and suggest
remedial action, and to highlight fire-
protection improvements and suggest
modifications. When using SPI Plus®,
you can select one or more Risk
Improvement Statements

8. Exposures
Exposure data on adjacent buildings,
including exposing walls, hazards,
construction, and distance can provide
critical underwriting information. For
example, a situation where a property is
close to a high-hazard operation or
adjacent to a storage tank with flammable
liquids can present potential risks. You
should be aware of additional exposures,
including local wildfire risk, possibility for
damaging winds and water, and how close
the structure is to a flood or earthquake
zone.