Methodological Proposal for the Development of Insurance Policies for Building Components

Macedo, Miguel; Brito, Jorge de; Cruz, Carlos Oliveira; Silva, Ana

doi:10.3390/civileng1010001

Cited by 2 publications

(1 citation statement)

References 16 publications

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“…However, more than an average estimated service life, the insurance company should know the probability of a stone cladding reaching the end of its service life, i.e., the probability of failure of the cladding over time and according to its characteristics. This information is crucial to convert those probabilities into costs, to predict unexpected situations during the claddings' service life, whatever the origin of the unforeseen events [16]. In this sense, two stochastic models are proposed, both based on a logistic regression analysis.…”

Section: Loss Of Integritymentioning

confidence: 99%

Design of an Insurance Policy Model Applied to Natural Stone Facade Claddings

et al. 2019

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The insurance market deliberately excludes the buildings’ envelope from their insurance policies, neglecting all the damage that can be caused by the degradation process or ageing of the materials. This stance is mainly due to the lack of knowledge in terms of risk and costs associated to the failure of these elements. Even though the building and its elements are the most valuable asset of any owner, most often homeowners do not adopt effective preventive measures to mitigate the deterioration and obsolescence of their assets. This study proposes an innovative methodology for the design of insurance policies for buildings’ envelopes, applied to natural stone facade claddings. The insurance product is defined based on deterministic and stochastic service life prediction models, established through the past degradation history of 142 natural stone claddings analyzed in service conditions in Portugal. Single-parameter (only analyzing the cladding’s age) and multiparameter (encompassing the relevant variables) models are applied in the calculation of the insurance premium. The expected claims are related with the performance of maintenance actions and established according to three degradation levels. The results obtained reveal that an increased knowledge about the insured cladding leads to a reduction of the risk margin and consequently, to a lower annual value of commercial premium paid by a household. This study proposes an innovative solution for tailoring the insurance products, in terms of the risk of failure of the buildings components, as well as the financial charges related with the maintenance of these elements, channeling the risks to the market.

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Section: Loss Of Integritymentioning

confidence: 99%

Design of an Insurance Policy Model Applied to Natural Stone Facade Claddings

et al. 2019

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Insurance Policies for Condition-Based Maintenance Plans of ETICS

et al. 2022

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Currently, insurance companies exclude the buildings’ envelope of their policies since they lack reliable information about the risks and degradation models and are unable to estimate the probabilities of intervention and corresponding costs. This study intends to overcome the existing gap, proposing property maintenance insurance policies developed based on condition-based maintenance plans, using stochastic information regarding the degradation process of the buildings’ envelope elements in the definition of insurance policies. To perform this work, external thermal insulation composite systems (ETICS) are used as case study, for the definition of an insurance policy. This approach allows reducing the uncertainty associated with the degradation of ETICS even when subject to scheduled maintenance actions. Several insurance policies are analysed, with different insurance premiums, evaluating different risks accepted by the owners when adopting a certain maintenance plan. For owners, the main advantages of acquiring this insurance product are: (i) changing the nature of the risk, transferring the risk to the insurer; and (ii) increasing the asset’s equity value, reducing the risk associated with the degradation of ETICS and the uncertainty of maintenance costs over time.

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Methodological Proposal for the Development of Insurance Policies for Building Components

Cited by 2 publications

References 16 publications

Design of an Insurance Policy Model Applied to Natural Stone Facade Claddings

Design of an Insurance Policy Model Applied to Natural Stone Facade Claddings

Insurance Policies for Condition-Based Maintenance Plans of ETICS

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