Sompo unveils specialised cover for US commercial real estate
Sompo Global Risk Solutions (GRS) is partnering with Fisher Harris Shapiro (FHS), an independent risk management and insurance consulting firm, to offer specialised protection against covered property perils to US commercial real estate and financial institutions.
Sompo GRS Replacement Value Protection (RVP) helps protect lenders/owners in commercial real estate financings from a loss resulting from property damage greater than the replacement cost value of a property. It covers the shortfall between the outstanding loan balances and the combined value of the underlying property insurance proceeds and the land that collateralises the loan in the event of a covered cause of loss.
This should give real estate owners, developers and lessees better access to financing and reduce the borrowing costs associated with individual loans.
Sompo GRS RVP is available to retail US insurance brokers and agents through FHS. Sompo GRS individually underwrites each transaction.
Sompo GRS offers multi-line capabilities targeted to accounts in select industry verticals including real estate, hospitality, financial institutions, life sciences and professional services, and to Asian companies with operations in the US and Mexico. It is part of Sompo International Holdings.
FHS has worked as an outsourced risk manager for real estate owners and developers for 25 years.
Michael Chang, chief executive officer of Sompo GRS, said: “This innovative product was developed based on our extensive experience serving clients across two of our key industry verticals.”
Marc Shapiro, president of FHS, added: “On any given day, real estate firms and the lenders who finance their transaction face unforeseen situations and at times may require insurance solutions, like RVP, to satisfy the loan.”
