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A major storm can damage a property in a matter of hours. The harder question is what happens next. How much income is disrupted? How much cash leaves the business? How long can the property operate if insurance funds take months to arrive?

This assessment helps commercial real estate teams evaluate the financial and operational impact of a major storm before the next loss occurs. More importantly, it highlights the questions that are often overlooked until a property or balance sheet is under pressure.

Property Recovery

• Do we know which property in the portfolio would create the greatest income disruption if it were out of service for 90 days?
• Have we identified which building systems create the greatest revenue risk if they become inoperable?
• Do we know which tenants would create the greatest revenue impact if operations were interrupted?
• Have we identified contractors who could respond during a region-wide storm recovery when labor and materials are constrained?
• If multiple properties were impacted at the same time, have we established which assets would receive priority for recovery resources?

Loss Exposure

• Do we know which deductible applies to a wind, hail, hurricane, named storm, or flood event?
• Do we know whether the deductible applies per building, per location, or across all affected properties?
• Do we know which storm-related costs may be limited, excluded, or subject to sublimits?
• If a property were unable to operate for six months, do we know how much income would not be recovered by insurance?
• Have we estimated what portion of a major storm loss would likely remain with ownership?

Liquidity & Cash Flow

• Have we estimated how much cash would be needed before insurance proceeds are received?
• If rent collections were reduced for 90 days, do we know how debt service and operating expenses would be funded?
• Do we understand any lender reserve requirements, cash management triggers, or restrictions that could affect liquidity after a major loss?
• If income were disrupted for six months, would ownership need to pause distributions, use reserves, or contribute additional capital?
• If NOI were materially impacted, do we know when lender notifications or covenant concerns could arise?

3 Questions Before the Next Storm

1. What deductible applies, and what is it in dollars?
2. How much cash leaves the business before insurance funds arrive?
3. If income is disrupted for six months, where does the cash come from?

Property losses are rarely just insurance events. PEAK helps commercial real estate owners, operators, and investors understand the impacts of major property losses — from risk assessment and insurance strategy to claims advocacy and recovery support.

If you'd like a second opinion on your storm loss exposure, insurance program, or cash-flow preparedness, send our team a message.