Search
Close this search box.

Banks more hesitant to lend in areas with inaccurate flood maps

Untitled design (26)

Banks more hesitant to lend in areas with inaccurate flood maps

The federal maps are static and only periodically updated by the Federal Emergency Management Agency.

Climate change poses many problems for society as a whole, and for commercial real estate (CRE). Properties can face flooding or wildfires or heavy damage from winds. A building can be cut off from everything else. All the time while increasingly cut off new business lines in states that have been particularly hard hit by disasters.

At a time when insurance can’t be counted on as the rescue of last resort, lenders must consider the risk they could take on. The Federal Reserve Bank of New York emphasized this point in a recent blog post.

NY, NJ adopt laws requiring flood risk disclosure for homebuyers, tenants

Both New York and New Jersey have adopted laws requiring the sellers of residential properties to tell buyers, and landlords to tell tenants, about known flood risks.

In the wake of several incidents of unprecedented rainfall and disastrous flooding, both New York and New Jersey have adopted laws requiring the sellers of residential properties to tell buyers, and landlords to tell tenants, about known flood risks. The New Jersey law also requires disclosures in commercial transactions.

A New York enactment also eliminates the commonly-used ability of sellers to avoid making property disclosures (not only about flood risk) by taking $500 off the purchase price.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related posts

Cyber Liability

9 Commercial Insurance Questions Answered

Commercial insurance is crucial for safeguarding any business, and with the specific risks each operation faces, there’s no one-size-fits-all solution. While personal insurance options have become more consumer-oriented, commercial insurance requires a knowledgeable approach to address unique risks and loss exposures. This is where commercial insurance professionals, like those at Skyscraper Insurance, become invaluable. At Skyscraper Insurance, we understand that each business has distinctive needs and operates under varied regulatory and fiscal responsibilities. That’s why we partner with clients to offer insights into the right coverage and risk mitigation options. According to the U.S. Small Business Administration (SBA), business owners should consider six foundational types of commercial insurance: Each business’s needs may evolve based on staffing levels, multiple locations, equipment, vehicles, or even product distribution channels, all of which can introduce new coverage requirements. Here are four recommended steps for managing business insurance: At Skyscraper Insurance, we’re here to answer your questions and provide the expertise needed to navigate commercial insurance options. Protect your business with confidence—reach out to our team today to discuss your insurance needs.

Read More
Risk Management

Mitigating Financial Losses During Hurricane Season: A Skyscraper Insurance Guide

As hurricane season approaches, businesses must take proactive steps to safeguard against financial losses. At Skyscraper Insurance, we understand the unique challenges companies face in times of disaster, and we’re committed to helping our clients navigate them successfully. Here’s how your business can mitigate financial risks with the right strategies and support. 1. Diversifying Income Streams for Resilience A diversified revenue model is crucial to withstanding the disruptions caused by hurricanes. Skyscraper Insurance works with businesses to evaluate new opportunities—whether it’s launching an online platform, expanding services, or entering new markets. This ensures that if one revenue stream is impacted, others can sustain the business. 2. Comprehensive Insurance Coverage The first line of defense is making sure your insurance policies are up to date and cover potential hurricane-related damages. Skyscraper Insurance specializes in providing tailored insurance solutions, including business interruption coverage, property damage, and flood insurance, to protect our clients against catastrophic financial losses. 3. Creating a Contingency Plan with Experts In partnership with Skyscraper Insurance, businesses can develop disaster contingency plans that ensure operations continue smoothly, even in the face of supply chain delays or power outages. We help you establish backup solutions, such as alternate suppliers or inventory management systems, minimizing financial fallout. 4. Maintaining a Recovery Fund Skyscraper Insurance advises its clients to maintain a recovery fund, ensuring fast access to resources for repairs, inventory restocking, and other unforeseen costs. This proactive approach enables businesses to get back on their feet quickly without waiting for loans or insurance claims to process. 5. Leveraging Government Aid and Local Resources In the aftermath of a hurricane, government aid can be crucial for businesses. We assist our clients in navigating grants, low-interest loans, and tax breaks available through local and federal disaster relief programs, ensuring that financial recovery is swift. 6. Risk Management Strategies At Skyscraper Insurance, we provide businesses with customized risk management strategies designed to reduce vulnerabilities and protect financial stability. From evaluating potential hazards to implementing risk-transfer solutions, we help you mitigate loss before a disaster strikes. 7. Ensuring Proper Documentation for Claims Keeping detailed financial records is essential for filing accurate and timely insurance claims. We help clients organize and maintain critical documents that streamline the claims process, ensuring a quicker recovery period. Skyscraper Insurance: Your Partner in Resilience While hurricanes can be unpredictable, your business doesn’t have to face them alone. At Skyscraper Insurance, our commitment goes beyond coverage; we provide expert guidance and comprehensive risk management services that empower businesses to stay strong and resilient during hurricane season.

Read More
Try your instant quote