Weekend View - July 14, 2024
Manage episode 448839309 series 3613496
Host Ashley Shumaker delves into the critical issue of rising insurance premiums due to extreme weather events and their impact on commercial real estate investors. Ashley discusses how EquityMultiple proactively manages these risks through strategic investment locations, a rigorous underwriting process, and an updated EMIP Investment Framework.
Key Topics:
- Extreme Weather and Rising Insurance Premiums:
- The increasing frequency and severity of events like atmospheric rivers, superstorms, and wildfires.
- Significant insurance premium increases in high-risk states like California, Florida, and Texas.
- Projections indicating average monthly insurance costs for commercial buildings could nearly double by 2030.
- EquityMultiple's Risk Management Strategy:
- Strategic selection of investment locations less affected by recent weather-related disruptions.
- Regular updates to the EMIP Investment Framework based on market quality and demographic data.
- Proactive due diligence and underwriting processes to include climate risk assessments.
- Focus on providing high-quality investment opportunities in resilient markets.
- Recent Acquisitions and Ongoing Strategies:
- Details on recent acquisitions in Florida, Texas, and the Carolinas considering climate risks.
- Continuous monitoring and adjustment of strategies to manage risks effectively.
Contact and Additional Information:
- Learn more about our current offerings and risk management strategies at equitymultiple.com.
- For questions, contact us at ir@equitymultiple.com
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