Navigating Challenges in the Commercial Property Insurance Market for Resorts and Timeshares: Solutions for Success
The commercial property insurance market for resorts and timeshares is facing significant challenges. Increasingly volatile weather patterns, rising construction costs, and tightening insurance markets are making it more difficult for property owners and management companies to secure adequate coverage. These properties are especially vulnerable to natural disasters such as hurricanes and floods, which have become more frequent and severe.
Property owners are not only facing rising premiums but also dealing with reduced coverage options. Many insurers have become more restrictive, increasing deductibles for wind and flood coverage and limiting capacity for high-risk properties. This has left many resort and timeshare owners searching for ways to manage risk while keeping their businesses financially sound.
Related: Natural Disasters and Their Impacts on Resorts: Strategic and Accounting Considerations
Key Challenges in the Market
- Catastrophic Weather Events: The increasing frequency and severity of hurricanes, floods, and other natural disasters are driving up insurance claims and premiums.
- Capacity Constraints: Insurers are becoming more selective about high-risk properties, reducing the availability of full coverage.
- Rising Premiums: Premiums are rising each year, putting a strain on property owners’ budgets.
- Increased Deductibles: Deductibles for wind and flood damage are higher under many policies, creating additional financial pressure.
Gregory & Appel’s Approach to Solutions
To address these challenges, Gregory & Appel Insurance provides tailored solutions that help resort and timeshare owners navigate the complexities of the commercial property insurance market. Their approach includes:
- Proactive Risk Management: By identifying vulnerabilities and implementing risk mitigation strategies, Gregory & Appel helps reduce exposure and secure better terms with insurers.
- Custom Insurance Solutions: The agency works closely with clients to create coverage plans that are specifically designed to address the unique risks faced by resorts and timeshares.
- Creative Coverage Options: Exploring alternative solutions, such as parametric insurance and captives, to offer more flexible coverage options.
Positioning for Success
Gregory & Appel Insurance is committed to helping resort and timeshare owners, as well as property management companies, achieve successful insurance outcomes through:
- Premium Reduction: Targeted risk management and strategic marketing efforts aimed at reducing premium costs.
- Comprehensive Coverage: Ensuring clients have the right protection in place for wind, flood, and other potential catastrophes.
- Client Education: Providing ongoing updates and insights into the evolving insurance market, helping clients stay informed and make smarter decisions about their coverage.
By focusing on these key areas, Gregory & Appel ensures that resort and timeshare owners are better positioned to weather the challenges of the current insurance landscape, protecting their properties and managing costs effectively.
For more information on how Gregory & Appel Insurance can assist resort and timeshare owners, please contact Matt Stauffer at mstauffer@gregoryappel.com or visit https://www.gregoryappel.com/destination-properties/
About Gregory & Appel Insurance
Gregory & Appel Insurance is an independent risk management advisor, helping individuals and businesses navigate the complexities of insurance and employee benefits. As your partner, we help alleviate risk, strengthen resilience, and uncover pathways for continued growth and success.
