Credit: Sabphoto/Adobe Stock
Nearly two-thirds of commercial property stakeholders say they're very or extremely concerned about severe weather risks, but less than half feel fully prepared for those risks.
According to a new survey from Nationwide, property stakeholders — property owners, builders and business owners — say severe weather and natural disasters are the top risk to their properties currently and over the next five years.
Respondents are most concerned about severe heat waves (69%), floods (69%) and damaging winds (65%). Their top concerns related to these risks are business interruption (56%), water intrusion/flood damage (41%) and structural damage (33%).
Property stakeholders have taken steps to protect their buildings and businesses. Many have added backup power systems (61%), installed weather-resistant windows or doors (60%), developed or updated an emergency preparedness plan (57%) and added extra bracing for severe wind (54%).
When it comes to insurance coverage, more than 8 in 10 say they feel well protected against severe weather losses, but only 39% say they feel fully protected. And cost still plays a role: while 41% believe commercial property insurance affordability has improved over the last year, 60% are interested in finding ways to manage their insurance costs. And 55% would consider reducing coverage to lower their premiums.
Many property owners have also been slow to adopt technologies to predict and prevent losses. Only 41% use smart water leak detection or automatic shutoff systems, and two-thirds don't use smart thermostats or temperature sensors. Nearly three-quarters don't use environmental sensors to monitor weather conditions, like temperature, humidity and air quality.
"Businesses have made meaningful investments to strengthen their properties, and that's encouraging," said Jason Ragsdale, Nationwide's leader of Risk Management Technical Specialization, in a statement. "But resilience goes beyond the building itself. It requires a comprehensive approach that includes risk mitigation, continuity planning and insurance coverage that reflects today's evolving risks."
Photo credit: Sabphoto/Adobe Stock
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