Saving You Money For Life

It has been said that “There is no more zealous controlled growth advocate than he who has just closed escrow.” With something like that in mind, Lexington Insurance has announced a new kind of insurance coverage that protects the developer who didn’t quite cover all the bases or the building owner who isn’t grandfathered if his building gets Katrina-ed.

They are offering a ‘first of its kind’ insurance policy to protect commercial and residential real estate developers and lenders from losses due to changing zoning ordinances. The new policy, called Zoning Restriction Protector Insurance, has been designed for commercial and multi-tenant residential real estate owners and lenders who may incur significant damage to their property and cannot rebuild the same size building due to zoning issues.

“Zoning ordinances are constantly changing, leaving non-conforming commercial and residential properties vulnerable,” according to a Lexington spokesman. “If a property suffers enough damage that it must be rebuilt to comply with current code, it may result in less rentable square footage or lower density, which can cause a significant financial impact.”

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