Commercial Real Estate Insurance Taking More Comprehensive Approach to Risk Evaluation

Today, however, insurance companies have adopted a much more holistic approach to underwriting. No longer are properties assessed purely based on tangible factors like age, valuation or size. Insurers are expanding their scope to consider the “intangibles” such as the risk management practices of the property owner or operator, the quality of the property management team, and even the way in which the owner or operator runs the business. In fact, in some cases, owners and operators may find themselves having to meet with insurance companies face-to-face, engaging in relationship-building conversations (and perhaps even a bit of wining and dining) to ensure their assets are properly insured.

This shift represents a move toward a model where relationships once again take center stage. In a sense, it’s a return to the “old way” of doing business — where trust and personal interaction are as important as the numbers on a spreadsheet. For many property owners and operators, this may feel like a surprising throwback. After all, the idea of personal relationships in insurance seemed to have faded in an era dominated by digital platforms and impersonal transactions.