Recently, we here at McAlister GeoScience, have been seeing an increase in requests for Property Condition Assessments (PCAs). A lot of our clients are telling us this is due to the rising insurance rates.
A couple of weeks ago the Wall Street Journal published the following article: Surging Insurance Costs Have Come for Office Landlords (Subscription Required).
Notably from the article,
Commercial real-estate insurance costs have risen 7.6% annually on average since 2017, according to Moody’s Analytics. Those increases can result in hundreds of thousands of dollars or more in additional annual costs, depending on location and size of the property. They can be steep enough to wipe away a year’s worth of profits.
This all would make any property owner or manager ask if they are paying these higher insurance rates for the proper amount of insurance. Is your coverage correct for your property? A great place to start is a PCA. We evaluate the plumbing, Electrical, Heating Ventilation, and Air Conditioning (HVAC) systems along with parking lots, roofs, foundations, interior / exterior finishes, etc… All these building systems are evaluated for their condition as it relates to potential failure or need for replacement. These systems all have an Expected Useful Life. If the systems are near or past their expected useful life, replacement costs are estimated and included for the property owner’s budget projections for a couple of decades out.
If you would like to have your property evaluated, please contact us today! As with all our services our team has the expertise to assist and we have the lowest overhead of many of our competitors. Most projects are completed within a two-week turnaround.