LATENT HAIL DAMAGE
PORTFOLIO IMPACT
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
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Ties Up Capital
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Decreases Cash Flow
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Strangles Asset Yield
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Creates Tenant Frustrations
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Missed Opportunities
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Drains Reserves
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Unexpected Repairs
HAIL BY THE NUMBERS
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.
$15 BILLION
Hail damage in the United States has steadily increased since 2008 with current numbers ranging between $10-$20 billion a year
6,000
Approximately 6,000 hail events occur n the United States every year
30%
On average 30% of hail events go unreported
CHARACTERISTICS OF LATENT HAIL DAMAGE
DIFFICULT TO IDENTIFY
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Damage can be concealed or camouflaged depending on the building component's age, color, and cleanliness
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Hail often causes damage that doesn't immediately reveal itself
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Damage can be mistaken as natural characteristic of a roof at the end of its life cycle
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Slow leaks caused by hail damage may not manifest until years later
OFTEN MISIDENTIFIED
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More than 30% of hail events are not reported (American Meteorological Society, 2017)
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Many hail events happen during off-business hours when witnesses are not around
EVENTS ARE UNDER REPORTED
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Hail damage can take on many different forms making it difficult to spot consistent patterns
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Hail fall concentrations and size can vary even within a short distance
WEATHER DATA IS INCONSISTENT
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GET PROTECTION
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Request a complimentary portfolio review for latent hail damage risk. HailSolve's team of specialists will utilize state-of-art technologies and processes to deliver a custom review that will recommend which assets should receive further investigation.
