Why is senior living a "high loss" industry?

5/26/2022 (Permalink)

Why is the senior living industry considered to be a “high loss propensity” industry in relation to disasters?

By “high loss,” we mean more prone to property damage and other sorts of disasters than other types of real estate and other types of businesses.

There are many different factors that play into this designation. Let’s consider moisture and humidity. These levels can vary wildly in a single building in a senior living environment due to residents’ specific needs.

Take a residential senior living complex with 100 units. These units are designed to be more or less maintenance-free for the residents, yet the environments within them are highly customizable.

In one unit, you might have someone set the temperature at 60 degrees with all of her windows tightly closed. In the next, you might have the resident set the temperature at 85 degrees with her bedroom window cracked halfway in the middle of winter for a breeze.

While these types of variations happen in all types of residential environments, they are much more common in senior living, and can lead to all kinds of environmental issues.