Climate change is forcing the commercial real estate industry to re-think the effectiveness of flood insurance that developers, lenders and investors have relied on for decades.
Rising sea levels and more extreme weather events could push that reliance to a breaking point. In 2018, approximately US$91 billion in damages resulted from 14 weather and climate disasters in the United States alone, each with losses exceeding US$1 billion, mostly to residential and commercial real estate.
Flood insurance is one of many areas of concern that climate change is bringing to the commercial real estate finance industry.
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