Claims by contractors and building owners under builders' risk policies could climb in the weeks following Hurricane Sandy, but the pricing for coverage of windstorms already had been adjusted in the last year, making rate increases less likely, say insurance brokers.
For some brokers, a week after the storm is too soon to tell if builders' risk claims will roll in from the complex New York City- area market, with its numerous renovations and new construction projects. "We just don't have any visibility now relative to builders' risk," says Matt Walsh, managing director of the construction services group for broker AON Risk Solutions. Other brokers agreed.