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INSIDE M any real estate insurance carriers found themselves under water at the end of 2019 – literally. An onslaught of claims from recent hurri- cane and hail catastrophe disasters as well as other attritional losses from fire and water damage have come together to create the perfect storm.This increase in both quantity of claims and their costs, including subsequent settlements, has forced property, gen- eral liability and umbrella carriers alike to assume significant losses. In many cases, these losses are over 100% of the policy. For each dollar real estate carriers took in last year, they paid out $1.15, on average. Now, they’re looking to recoup their shortfalls. To do so, carriers are reduc- ing what they offer in coverage and limits. The result could be lower limits and term restrictions and/ or higher deduct- ibles – especially for businesses that experienced losses in the last few years. While the market is hardening, there still are a number of strategies prop- erty owners/opera- tors can employ to minimize costs and transfer risk. Following are four ways to improve the real estate business’ insurance outlook in 2020. 1. Practice good preventative mainte- nance. Controlling losses internally will both “keep your house in order” and minimize rate increases. Ensure safety by institut- ing the right policies and procedures. Don’t forget to test fire pumps monthly, install hand rail- ings where there’s a potential for slips and falls and replace old electrical panels. If a property is in a Air-tightness testing, as part of envelope commissioning, becomes mandatory in Denver. Regulatory update This supplement shares nine buildings’ energy- saving efforts to become more sustainable. Energize Denver PAGE 15 Highlights from this year’s Denver Metro BOMA Mile High Awards ceremony BOMA awards Please see Page 30 January 2020 PAGE 27 PAGE 4 Higher premiums in 2020: 4 ways to reduce insurance costs An onslaught of claims from catastrophe storms in 2019 means carriers are reducing what they offer in coverage and limits in 2020. Chris Dunlap Vice president and senior risk consultant, HUB International James Hutchinson Executive vice president and chief marketing officer, real estate practice, HUB International James “Chip” Stuart Chief sales officer, HUB International