COMMERCIAL REAL ESTATE
We thoroughly assess our real estate clients’ risks and insurance exposures, whether they’re buying a new building or engaging in lease or development negotiations. This process is ongoing. We continuously make sure that they have the appropriate protection, no matter where their properties are located.
Every building, every acquisition, and every mortgage is unique. Our prior experience in real estate gives us a broad understanding of how insurance policies, legal requirements, and contractual banking obligations interact, allowing us to design a specialized insurance program that fits your needs. Meanwhile, our comprehensive approach to risk management allows us to correct and anticipate potential issues before a claim is even made. That way you can focus on fixing whatever issue is at hand instead of unexpectedly having to fight with the insurance company and the bank over the money you’re owed.
High impact areas we review:
- Acquisition due diligence
- Lease and financing negotiation
- Contract negotiations with management companies
- Insurance issues of development, remodeling, tenant-fit up, and construction.
- Windstorm and flood coverage in high-risk areas
- High-risk tenants and high-exposure occupancies
- Coordination of insurance programs
- Property-specific loss management
Industry Insights with Mitch
We’ve seen just about everything you can imagine, and then more. Here are a few examples of what we’ve accomplished for our clients.
Case Study – NYC Hotel Operator
An international hotel and real estate operator came to us with an urgent problem at one of their New York City properties. The property had severe structural damage, and its potential collapse could endanger adjacent buildings. They needed to begin controlled demolition operations at once, but couldn’t arrange the necessary insurance coverage. Our team helped them obtain the necessary coverage while negotiating their General Contractor agreements and monitoring the adequacy of the insurance provided by their subcontractors. The building was safely demolished, with no damage to neighboring properties, and the project was a success.
Case Study – Gulf Coast Real Estate
Shortly after Hurricane Katrina, we were approached by an investor group under contract to purchase a newly-constructed, beachfront residential development on the Mississippi Gulf Coast. The group wanted to take advantage of special tax credits established to encourage investment in the hurricane-ravaged area, and it was imperative that that coverage is in place to facilitate the closing. We were able to place comprehensive coverage at rates significantly below their original, budgeted estimates, thereby facilitating the deal and enabling the investors to improve their financing terms.
Case Study – New York Real Estate
A family-owned real estate company owns several dozen gas stations and was concerned about the adequacy of their Pollution Liability and Remediation Coverage. When we reviewed their insurance, our team discovered that it did not cover unknown, pre-existing conditions —and since gas stations have large underground storage tanks that may develop undetected leaks—we were concerned that they didn’t have adequate coverage. After a thorough review of our client’s environmental reports, followed by extensive negotiations with prospective carriers, we replaced the policy with insurance that covered this previously uninsured exposure.
Case Study – New York Real Estate
A New York City residential real estate owner had separate insurance policies for each of his 30 buildings, each renewing at different terms and varying times throughout the year. Administering this program was terribly time-consuming and distracting, and his coverage was inadequate. After undertaking the lengthy process of analyzing his loss and underwriting data, MB Davis managed the placement of a consolidated insurance program. The new program reduced our client’s premium by roughly 20 percent and added important coverage such as higher umbrella limits and lead paint liability.
Case Study – Washington Real Estate
In mid-December 2006, a new client was referred to us by one of our long-term real estate clients. This new client was under contract to purchase an apartment complex, but their proposed insurance had fallen through and they had only two weeks to replace it before losing their $400,000 deposit. On top of that, the property was in a hurricane zone and had aluminum wiring and frame construction. Fortunately, we crafted an economical insurance program on time and helped our new client to save his deal.
Every industry and every company is unique, with vastly different risks to manage. We've become experts in many fields and have saved a lot of time and money for our clients.
”Mitch then oversaw a renewal exercise that resulted in premium reductions of over 30%, and multiple coverage improvements that made the insurance much better suited to our business needs.
“Welcome Real Estate Services is a commercial real estate owner and manager in Houston, Texas. We’re a multi-generational company with roughly 3.5 million square feet of commercial space spread over about eighty buildings. In late 2014, our insurance costs were getting to the point where we were becoming uncompetitive on leasing deals.
Mitch and his staff have helped our insurance become much more manageable and effective for our company. Without Mitch’s full audit of our insurance program, we would not have been aware of problems with our pricing or problems with our coverage.”Craig WilsonWelcome Real Estate Services, Houston, TX
”He’s very accessible, and an important part of our professional team.
“Mitch has been providing continuous insurance advice to us since 2003, and his work has been essential in helping us manage our coverage.
He’s helped us through all the insurance issues related to our real estate management work and our assisted living facilities, including claims, leases, and contracts, and is there to provide any general insurance-related advice we need.”Mark Caplan and Len FrenkilThe Time Group - Owings Mills, Maryland
”After several of the hangars collapsed under the weight of snow and ice, the insurance program that he designed helped us reconstruct the hangar facility, protect the owner against multiple liability claims and allow us to re-open for business 20 months after this monumental loss.
“Our firm is a major real estate developer and manager in the Washington Metropolitan area. We also own and operate a large corporate hangar facility at Dulles International Airport. Mitch has been our insurance consultant since 2004, and has not only done an excellent job in keeping our insurance premiums low, but also helps keep our coverage comprehensive and understandable. Mitch also provides us with advice on other aspects of our business, such as risk transfer and insurance language in our leases and contracts.
In particular, Mitch’s work was instrumental in helping us recover after a disastrous loss in 2010. Mitch helped design and implement the insurance coverage for our facility at Dulles Airport.
Mitch is always accessible, effective, and able to explain complex insurance issues clearly. He’s an invaluable part of our team and we greatly appreciate his expertise.”Michael LandowLandow & Company - Maryland