Surge in Premium-Impacting Remodels Creates Blind Spot for Carriers, BuildFax Reports
Jul. 31, 2018
AUSTIN, Texas--(BUSINESS WIRE)--Jul 31, 2018--BuildFax, a leading provider of property condition and history insights for the largest insurance and financial institutions in the world, released a report today detailing how its Change Detection insight can more closely align increased exposure with additional premium capture as the pace of remodeling continues to accelerate.
The new report—which leveraged BuildFax’s more than 23 billion data points on property condition and history—revealed a 58.9 percent increase in residential remodeling activity from 2009 to March 2018, compared to a 36.2 percent decline from 2005 to 2009. Commercial remodeling activity has advanced at a slower rate, increasing by 16.3 percent in the same time frame, compared to a respective 14.4 percent decline leading up to 2009.
"As homeowners continue to remodel existing properties—and in light of the upcoming hurricane season—carriers must be vigilant in addressing changes to their insured's properties," said Jonathan Kanarek, COO of BuildFax. "Leveraging our depth of data and insights enables carriers to optimize inspection strategies, reduce operating costs and ultimately recover premium leakage at scale.”
Results of the report revealed a number of insights carriers can leverage to simultaneously mitigate risk and create new pathways to profitability:In the first half of 2018 alone, BuildFax data showed that residential remodels increased 8.6 percent and commercial remodels increased 3.2 percent, compared to remodels in the first half of 2017. Permits for alterations, additions and remodels were pulled for 40.4 percent of residential properties and 47.4 percent of commercial properties in the last five years. 9.7 percent of residential properties and 24 percent of commercial properties experienced remodels valued at more than $25,000 in the last decade.
Without visibility into property changes, the resulting exposure from even a fraction of remodels creates unsustainable risk that directly impacts a carrier’s bottom line. With BuildFax’s Change Detection insight, carriers are able to stay on the pulse of key property changes and verify that the properties on their books are insured to value.
BuildFax, headquartered in Austin, Texas, is trusted by the largest insurance and financial institutions in the world to deliver business-critical property condition and history data. With the only database of its kind encompassing more than 23 billion data points on commercial and residential structures, BuildFax delivers detailed data on remodeling, solar installations, new construction, roof age, major systems, maintenance history and more. To learn more about BuildFax, visit www.buildfax.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180731005214/en/
CONTACT: Red Fan Communications For BuildFax
Matt Beezley, 512-551-9253
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: TECHNOLOGY DATA MANAGEMENT INTERIOR DESIGN CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE
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PUB: 07/31/2018 09:00 AM/DISC: 07/31/2018 09:01 AM