By Ken Kukral
With every downturn in the economy lurks another opportunity. Land banks are non profit organizations that help service communities through rehabbing of the cities. Land banks are springing up throughout the country at an outstanding rate and cannot be ignored as a viable source of improving our declining cities.
This emerging area has created unique insurance challenges that should be addressed by a specialist. Redevelopment companies are giving back to communities but without the proper insurance they will not survive the long term battles of sustainability. Here’s 8.5 reasons why land banks need insurance:
- They have exposures for general liability, property and builders risk.
- Properties can be in many states of being, vacant, owner occupied, tenant occupied, under-going renovations, be a vacant lot or scheduled for demolition. (All of these can be addressed)
- Valuation may be a concern since writing these at replacement cost would present a significant “moral hazard”
- Municipalities are looking to land banks to provide solutions to housing condition problems and having a vacant, unsecured or damaged dwelling around present’s opportunities for crime, higher liability hazards, “eyesores” in the community and brings down values of surrounding homes. (By having insurance these can be dealt with quicker and more systematically)
- “Funding” for damaged homes does not become an issue. If a loss happens it can be immediately adjusted and repaired with insurance proceeds.
- Land banks need to be on secure legal footing. By having the proper insurance they can be around for a long time to come, providing solutions to the housing problems in that area.
- Housing is an “asset” of the community. The amount of property tax is many times dependent on the value of the homes and if homes are damaged or torn down the amount of property taxes is reduced.
- Insurance helps to bring homes up to code. In the event of a loss many times the insurance carrier must have the damage repaired meeting the updated building codes that are now in place. More compliance with building codes makes for safer homes and reduced loss exposures.
8.5 Because insurance is affordable! Having proper coverage ensures the long term viability of the organization which ensures the long term vitality of our communities
With over 25 years of experience in the insurance industry, Ken Kukral has developed expertise in the non for profit and land bank area. As land banks have expanded over the country, Mr. Kukral has pioneered coverages that meet the needs of land banks and provide the necessary coverage to meet government demands. For questions about this unique coverage, or to have an exposure looked at, contact Ken directly at firstname.lastname@example.org