LATENT HAIL DAMAGE
Hail damage can pose a serious risk to commercial real estate investors. This severe weather can damage expensive building mechanicals and disrupt roof membranes, often causing massive leaks that drain reserves and strain tenant relations.
An even greater risk to investors is hail damage that occurs but is never properly identified (latent hail damage). Latent hail damage takes time to reveal itself, creating small leaks that appear without notice. The financial strain of latent hail damage can reverberate through all areas of an organization.
Latent Hail Damage: Hail that has physically damaged a building envelope but has not been properly identified
Ties Up Capital
Decreases Cash Flow
Strangles Asset Yield
Creates Tenant Frustrations
According to the National Oceanic and Atmospheric Administration (NOAA) approximately 6,000 hail events occur each year resulting in $15 billion of damage. These alarming numbers are amplified by the statistic that 30% of hail events are never reported. Property owners, especially those with large roof footprints (commercial investors) should be concerned about the risk of hail damage to their assets, especially damage that has happened but has never been identified.
Hail damage in the United States has steadily increased since 2008 with current numbers ranging between $10-$20 billion a year
Approximately 6,000 hail events occur n the United States every year
On average 30% of hail events go unreported
DIFFICULT TO IDENTIFY
Damage can be concealed or camouflaged depending on the building component's age, color, and cleanliness
Hail often causes damage that doesn't immediately reveal itself
Damage can be mistaken as natural characteristic of a roof at the end of its life cycle
Slow leaks caused by hail damage may not manifest until years later
More than 30% of hail events are not reported (American Meteorological Society, 2017)
Many hail events happen during off-business hours when witnesses are not around
EVENTS ARE UNDER REPORTED
Hail damage can take on many different forms making it difficult to spot consistent patterns
Hail fall concentrations and size can vary even within a short distance
WEATHER DATA IS INCONSISTENT
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