Substantial Remodeling Activity in Florida Impacts Catastrophe Reinsurance Models

Insured losses from U.S. catastrophes surpassed $134 billion last year and marked the costliest year on record for weather disasters. While 2018 has been a milder year for catastrophes – though already passing $20 billion in insured losses – it’s clear 2017 losses are still on the minds of U.S. carriers as they move into January reinsurance renewal discussions.

Repair work has not slowed in catastrophe-impacted regions. This is particularly true of Florida, where insured losses exceeded $10 billion. It’s important that as remodeling and repair activity continues in these regions, carriers validate the accuracy of primary and secondary modifiers on their books, like roof age, to build a strong case for lower reinsurance premiums or more comprehensive coverage. Pricing, in fact, is the most important factor for carriers in January 2019 renewal season, according to Artemis.

With BuildFax insights into the age of a property’s roof, yielded from over 23 billion data points on property history and condition data, carriers can better understand how the condition of properties on their book will impact cat models.

Download BuildFax’s new report for greater insights into the impact of remodeling on reinsurance negotiations, including:

  • Residential remodeling increased 20.29 percent in Florida in the year after Irma compared to the year prior.
  • Nearly 80 percent of roofs in Florida are more than 11 years old, with only 12.6 percent of roofs less than 5 years old.
  • The percentage of expensive remodeling projects has been increasing steadily over the last few years.

For more information on how BuildFax’s property insights can support your reinsurance talks in January, contact us today.