Real Estate and Property Management

1
Real Estate and Property Management
Team Members Jason Ausman Jessica Baines Joe
Belisle Jermond Rommer
2
Introduction

• For Discussion
• Real Estate is a very complicated industry
• Involves several different risks, perils, hazards
• Insurance definitions specific to real estate
  industry, types of risk, loss exposures, and
  perils and hazards

3
Related Definitions

• Real Property
• Land, Buildings, Parking Lots
• Direct versus Indirect Loss
• Fire Damage to Home Loss of Rent
• Pure versus Speculative Risk
• Flood Damage Lottery Tickets
• Peril versus Hazard
• Collision Icy Street

4
Types of Industry Risks Pure versus Speculative

• Uninsurable
• Natural Disasters in High Risk Areas
• Environmental Issues Involving the Masses
• Raw Land
• Insurable
• Natural Disasters
• Income Loss

5
Industry Loss Exposures

• Negligence
• Unintentionally burning down your house because
  you forgot to turn the oven off
• Fraud
• Intentionally left the oven on to burn the house
  to collect insurance

6
Industry Loss Exposures, Contd.

• Liability
• Suit because no prior warning of prior use of
  land as landfill
• Loss of Income/Extra Expenses
• Flood damage of apartment complex loss of rent,
  clean up expenses.

7
Growth Area Environmental Loss

• Building Exposures
• Asbestos/Radon Poisoning
• Carbon Monoxide
• Lead Contamination
• Landfill Exposures
• Soil/Ground Water Contamination
• Illegal Disposal of Hazardous Wastes
• Unknown History of Past Use of Land

8
Conclusion

• Types and Risks of Real Property in the Insurance
  Industry
• The Loss Exposures
• Growing Areas of Loss Exposures