Contractors and building owners may flood insurers with builders’ risk claims in the aftermath of Hurricane Sandy, but they haven’t started showing up yet, according to brokers.
The full extent of the claims won’t be known for a while. “It’s too early,” says Paul Primavera, who heads the construction insurance operation for Lockton Cos., the insurance broker and consultant.
Other brokers say the claims are inevitable. “I wouldn’t be surprised if there were a substantial number,” said one insurance broker outside the disaster area. Something half-built doesn’t stand up as well as something fully built, he notes, and “if the project involves renovation, a more extensive renovation may be needed.”
Contamination by hazardous materials also may create claims, he adds.