How El Ni?o Is Shaping the Insurance Landscape – What You Need to Know

As we head into the final quarter of 2024, it’s essential to turn our attention to the upcoming El Ni?o event, which is expected to heavily influence weather patterns across the globe. This year, meteorologists have forecasted a strong El Ni?o, bringing warmer-than-usual ocean temperatures in the Pacific and triggering significant weather disruptions. We wanted to take a moment to highlight what this means for property and casualty insurance—especially for real estate portfolios—and how SES Risk Solutions is here to help you prepare.

What Is El Ni?o?

El Ni?o is a climate phenomenon characterized by the warming of the central and eastern tropical Pacific Ocean, resulting in widespread changes in weather patterns. Historically, El Ni?o leads to:

• Increased rainfall and flooding in the southern United States and across California
• Drier conditions in the Pacific Northwest and parts of the Midwest
• An increased number of severe storms (including hurricanes) in some regions
• Wildfire risks in typically dry areas that experience delayed seasonal rains

For real estate owners, property managers, and fiduciaries, these climate changes can result in unexpected risks to properties and portfolios.

How El Ni?o Affects Real Estate Insurance

With SES Risk Solutions’ decades of expertise in insuring real estate assets, we are already analyzing how El Ni?o's potential impacts could affect insured properties. From our single-family home portfolios to our multifamily rental programs, here are a few critical insights:

• Flood Risks for Single-Family Homes and Multifamily Properties: Southern and coastal states may experience higher-than-normal rainfall, which can quickly lead to flooding. Ensure that flood insurance policies are up-to-date and cover all potentially impacted properties.
• Storm Damage for Individual Assets and Large Portfolios: El Ni?o increases the likelihood of severe thunderstorms, hail, and even tornadoes in parts of the country. Reviewing wind and storm coverage now can help mitigate risks in vulnerable regions.
• Fire Risk for Areas Impacted by Drought: While Southern California and the Southwest brace for flooding, parts of the Northwest could face an elevated fire risk due to drought conditions that often accompany El Ni?o. Check that fire coverage limits and terms are appropriate for properties in drier regions.

Steps You Can Take Now

In anticipation of El Ni?o’s impact, we recommend the following proactive steps to ensure your properties are fully protected:

1. Review Existing Policies: Whether you're covering single-family rental properties through our QUBIE platform or managing multifamily portfolios, now is the time to review the specifics of your policies. Pay close attention to flood, windstorm, and wildfire coverage.
2. Educate Clients: This is an excellent opportunity to reach out to your clients and educate them on how El Ni?o might affect their properties. Offering proactive advice will not only strengthen your relationships but also demonstrate your value as a trusted advisor.
3. Submit New Business Today: SES Risk Solutions makes it easy to protect your clients with our tailored products. If you’re looking to cover new properties or expand your current portfolio, submit a new business application via our submission portal or reach out to your SES representative for immediate support. We’re here to help you secure coverage quickly and efficiently, whether it's for individual rental homes through QUBIE or larger portfolios.

Our Commitment to You

As always, SES Risk Solutions is committed to helping brokers and fiduciaries navigate the complexities of real estate insurance, particularly in the face of changing climate patterns. We combine cutting-edge insurtech with deep industry expertise to simplify your insurance experience while ensuring you’re covered when it matters most.

If you have any questions about how El Ni?o might affect your portfolio or would like to discuss specific risk mitigation strategies, don’t hesitate to contact our sales team at [email protected] or call 657.261.2424. We’re here to support you every step of the way.