Given the significant activity in the development and construction sector in the Cayman Islands over the past several years and in particular the significant current development taking place, a review of the VAR at this time would be prudent to avoid any unpleasant surprises in the unfortunate occurrence of a catastrophe.
We are already into the 2022 Hurricane Season, and, so far, hurricane activity matches or exceeds forecasts. According to The National Hurricane Center for the National Oceanic and Atmospheric Administration (NOAA), there have been 3 named storms by 8th July: Alex, Bonnie, and Colin. This is a level not usually seen until early August.
The 3 named storms have meant damage to many homes and buildings in Cuba and Florida, over 3,500 power outages, and sadly 9 deaths to date. It is too early to quantify the total extent-or cost of the damage so far.
It remains that we are just part way into the season. A typical season runs from the start of June until the end of November, with the highest activity likely in August and September. We are less than 10% into the season at present, which means over 90% of the season remains.
Colorado State University have now issued revised forecasts for the remainder of the season: This can be downloaded as follows:
https://tropical.colostate.edu/forecasting.html
All forecasts and reports can be downloaded-the most recent is 7th July 2022.
If not yet done, it is strongly recommended that you ensure that you have adequate insurance to see you through the rest of the Hurricane Season.
For further information on how to prepare for the rest of the season, to include Insurance needed, see below.
https://www.forbes.com/advisor/homeowners-insurance/2022-hurricane-season/
It is important to realise that when a storm is identified, many insurers will not accept new applications for insurance, and often will not accept applications for upgrades to existing policies. It is therefore important to ensure that you are aware of the cover that you need, as well as the date of renewal of your policy in good time.
For further details for Cayman Islands see below:
In March 2022, the Cayman Islands Government launched the National Emergency Notification system app, this can be downloaded via a link from the above.
We have recently experienced significant increases in materials and labour costs, for well known, reasons following the Covid 19 pandemic, and we therefore recommend that policies are reviewed more often than has typically been the case in the past. The RICS (Royal Institution of Chartered Surveyors) recommend reviews at maximum intervals of 3 years, however current costs of re-instatement now warrant more regular reviews of the type and level of cover required. It is recommended that cover is reviewed after no more than 2 years.
Many insurers apply clauses to policies that allow for any claim to be adjusted if it is determined that the level of insurance in place was inadequate when a peril occurs. This can be an easy trap to fall into when materials and labour costs have increased at rates seen over the last 2 years.
Bould Consulting have been preparing Reinstatement Cost Assessments (RCA) in the Cayman Islands and throughout the Caribbean for more than 50 years for a wide selection of building types for both private and public clients.
Bould Consulting write to offer our services to your clients to ensure their Value at Risk (VAR) amounts are adequate under their current policies you provide for their cover.
Given the significant activity in the development and construction sector in the Cayman Islands over the past several years and in particular the significant current development taking place, a review of the VAR at this time would be prudent to avoid any unpleasant surprises in the unfortunate occurrence of a catastrophe.
As we are now into the Hurricane season, it is our opinion that a review in this regard is a sound investment at this time.
We have been preparing Reinstatement Cost Assessments (RCA) in the Cayman Islands and throughout the Caribbean for more than 50 years for a wide selection of building types for both private and public clients.
Contact us for further information on contacts below
info@bcl.ky
1 345 946 6063
We look forward to being of service.
The Bould Consulting Team
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Bould Consulting Limited long association with the British Virgin Islands and our many friends and business colleagues there, enabled a rapid response to assist with the rebuild following the devastation caused by hurricane Irma and Maria in September 2017.
