|Risk Management, Insurance and Claims
Expert: Sandy floods countless properties; few likely covered for mold
Many properties face extensive damage by flooding caused by Superstorm Sandy, but few likely are insured against mold and will fall short of being covered for their buildings' full value, according to a note by Citigroup strategist Jeffrey Berenbaum. Commercial mortgage-backed securities loans require mold insurance typically only in cases where previous environmental problems existed; mold is commonly excluded in general insurance policies, Berenbaum writes. Business Insider
Sandy causes concern over storm-surge threat to Superfund sites
Superstorm Sandy affected several Superfund sites in New Jersey and New York, according to an early appraisal by the Environmental Protection Agency. The two states have nearly 200 Superfund sites, 45 of which are within a half-mile of coastal areas where storm surge poses a threat, according to an analysis by The Wall Street Journal of EPA and Army Corps of Engineers data. "There really has to be a careful evaluation of whether there has been any disturbing of the waste" at the affected sites, said Thomas Burke of the Johns Hopkins School of Public Health. "Flooding moves things around much more quickly." The Wall Street Journal (tiered subscription model)
Lead paint and mold are major concerns in Sandy's wake
Flooding from Superstorm Sandy has affected homes, schools, Superfund sites and other areas, raising concerns over mold, peeling lead-based paint and other toxic substances. "With moisture intrusion of this magnitude, you're going to have a lot of chipping, peeling or flaking paint as it starts to dry -- creating lead dust," said Ruth Ann Norton of the Coalition to End Childhood Lead Poisoning. Other hazards include sewage, asbestos, concrete dust and stored chemicals, experts said. The Huffington Post
Lawyer: Environmental insurance is key in redeveloping brownfields
Redeveloping brownfields for multifamily housing poses challenges, but developers who perform due diligence can make the most of opportunities while guarding themselves against liability, experts say. "Satisfying [Environmental Protection Agency] standards meets the underwriting criteria for major insurance carriers, so acquiring coverage is rarely a problem," said real estate lawyer Fernando Villa. "Insurance is strongly advisable to protect against third-party claims from tenants, construction contractors or adjacent property owners." Multi-Housing News
Do you feel that building owners should be required to test for legionella and other facility-borne illnesses?
Do you routinely utilize catastrophic events such as Hurricane Sandy as an opportunity to reassess your risk-management practices and evaluate their effectiveness?
Aon Situation Room -- post-tropical cyclone Sandy
Post-tropical cyclone Sandy made landfall on the East Coast on Oct. 29. Aon is committed to helping organizations respond quickly to such situations that affect their operations. Read more about the resources offered through Aon for mitigating, quantifying and presenting property and business-interruption claims.
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