Investor Outlook for Independent Living, Assisted Living Facilities Positive
There’s positive industry growth news for the senior housing sector, which includes independent living facilities, assisted living facilities and nursing homes. According to National Real Estate Investor (NREI), within the last 15 years, “seniors housing went from being a small property niche to one of the key secondary property types in commercial real estate.” This is good news for the insurance industry and those that specialize in insuring this sector.
What’s driving growth and investor interest in senior housing is the marked sift in demographics with the number of residents who will be over 65 in the next decade. Other contributing factors, according to NREI, include continued improvement in market fundamentals and available capital for acquisitions, refinancing and new build. What’s more, the growing interest by investors in senior housing is spurred by restrained supply, steady income, and potential diversification benefits and relatively high yields. “Every day there are more and more people getting into the marketplace,” stated David Rothschild, an executive vice president and leader of the CBRE National Senior Housing Group in San Diego, in an article in NREI’s online publication.
Indeed senior housing property sales reached $15 billion in 2013, according to data from Real Capital Analytics. And this is expected to continue based on a survey conducted by NREI in conjunction with National Investment Center for the Seniors Housing & Care Industry (NIC). In the survey, which included players in the commercial real estate industry – from owners, managers and developers to lenders and financers – the majority of respondents expect the pace of activity to meet or even exceed that level in the coming 12 months.
As providers of insurance for independent living facilities, nursing homes and assisted living facilities, we see this is as good news and are poised to address and meet the varied exposures this sector faces with comprehensive insurance programs. Our program is available throughout the country and includes: Property, General Liability, Professional Liability, Excess Liability, Auto Liability, D&O Liability, Crime, Workers Compensation and more. We also make available specific coverages unique to assisted living and nursing homes, such as violation of resident’s rights, protection for medical directors while acting within the scope of their administrative duties, and no exclusion for physical and sexual abuse, among others.
We can provide you with our expertise and experience in insuring the senior housing industry and assisting you in expanding your book of business in this sector. Call one of the professionals at Caitlin Morgan to discuss our program: 877.226.1027.