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Insurance companies don’t enjoy paying claims. Each settlement significantly reduces its profit margin. In the Portland, Oregon area, a rising number of claims is leading insurers to lower the risk of payouts by dropping property policies at an alarming rate. Frequently, they opt out of policies covering land that houses structures in decline and disrepair. If you own a property with dilapidated or unsafe buildings, the best way to prevent your insurance company from canceling your policy might be demolition.

Why Do Insurers Cancel Policies Rather Than Increase Premiums?

The insurance game is all about risk. Insurers are willing to gamble with customers. They bet that the policyholder’s worst-case scenario won’t occur or, in the case of life insurance, won’t happen before reinvested premiums turn a greater profit than the eventual payout. Premiums are set according to risk. Higher premiums can offset certain risks, such as accident-prone drivers. When the risk grows too great, however, the best bet for insurers is to drop the policy.

Why Are Some Property Policies Becoming Too Risky in the Portland, Oregon Area?

Whether or not one blames climate change, the Pacific Northwest is experiencing a cycle of drier, hotter summer weather that increases the rate and severity of wildfires. Even when your property is in a municipal area, relatively safe from wildfire, unoccupied buildings in poor condition, especially those on vacant property, represent a greater liability to insurance companies due to the risk of personal injury and other dangers. If you don’t care for your property, the insurance company doesn’t care to pay.

When Can Demolition Help You Retain Your Property Insurance?

Policyholders should consider demolishing buildings when their condition renders renovation prohibitively expensive and heightens the risk of the insurer dropping their policy. This applies to all structures, including unoccupied homes and unused barns, sheds, separated garages, or warehouses that have fallen into an irrecoverable state. The policyholder should also consider clearing their property of any dry overgrowth that heightens the risk of catastrophic damage from fire and excavating any exposed pipes or partially buried infrastructure no longer in use.

Who Is Best Qualified to Remove Unsafe Structures, Infrastructure, and Overgrowth?

Policyholders should always seek out a licensed general contractor with experience in demolishing buildings and excavating or clearing tracts of land. A licensed professional will know which permits must be acquired ahead of any project, possesses the proper equipment for the task at hand, and employs skilled professionals who will leave your property in a clean and safe condition that will satisfy the most demanding insurance adjuster.

As a landowner in the Portland vicinity with a property insurance policy at risk of being canceled by your carrier due to unsafe structures or conditions on your property, you should be exploring the most economical solutions to return that property to a safe, readily insurable state. When massive renovations or even a simple upgrade don’t fit your needs or budget, call Grant’s General Contracting. We’ll put the insurance odds back in your favor.