NIP Specialty Brokerage, LLC, a wholesale brokerage specializing in construction, released an Insurance Advisory focusing on market impacts of Hurricane Katrina on the construction industry, with a focus on home building.
The report, titled “In the aftermath of Hurricane Katrina: what will the nation’s largest rebuilding effort ever mean to the construction insurance industry?” gives an overview of the issues facing the redevelopment effort. Among the issues examined in the report is the availability of insurance coverage to meet the increased demand created by Katrina’s destruction. The report discusses the various stages of redevelopment (demolition, cleanup and reconstruction) and the segments of the construction industry that will be involved.
“NIP Specialty recently conducted an informal survey of leading markets and identified three issues that will affect capacity,” said John Rath, President of NIP Specialty Brokerage and author of the advisory. “The first is a long-standing general reluctance to cover home builders, a situation that will only be exacerbated by the unusual conditions in the Gulf Coast area. The second is a concern about the volatility of the legal climate in many of the states most impacted. Finally, there are the “wildcard” risks, both known and unknown, associated with building on an unprecedented level. These three issues are combining to severely limit interest and capacity to underwrite construction risks in the affected regions.”
For a copy of the report, contact NIP Specialty Brokerage at NIPSpecialty@nipgroup.com.