Method And System For Assessing Environmental Risk Associated With Parcel Of Real Property

• US 20080208637A1
• Filed: 01/03/2008
• Published: 08/28/2008
• Est. Priority Date: 01/03/2007
• Status: Abandoned Application

• Current Assignee: American International Group Incorporated
• Original Assignee: American International Group Incorporated
• Inventors: Spencer, Duncan, McKay, Stephen
• Application Number:
  US11/968,923
• Publication Number:
  US 20080208637A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Disclosed is a system and method for assessing environmental risk associated with a parcel of real property through the form of reports which can be generated without the significant expense and time delay of a physical site inspection. Also disclosed is a method to facilitate contaminated land transactions by reports that provide consultancy, legal, and/or financial advice based on factors determined in the absence of a property site visit. In one aspect, the disclosed method comprises several steps based on certain determinations made using commercially-available and publicly-available databases. In another aspect, the disclosed method is a way of providing financial assurance via an insurance policy with the steps of supplying an environmental risk report and automatically supplying an environmental insurance quote based upon the environmental risk report.

Claims

1. A method of assessing the environmental risk associated with a property comprising the following steps:

(a) determining a current use or uses of a property;

(b) determining an intended use or uses of the property;

(c) determining whether the property will be redeveloped, and if not to be redeveloped then further providing an automatic quote for environmental insurance;

(d) determining whether underground storage tanks are present on the property, and if present, then site with said tanks is excluded from said insurance;

(e) determining a water distance to nearest surface water;

(f) determining a residential distance to a nearest residential property;

(g) determining an agriculture distance to a nearest agriculture property;

(h) combining the above determinations of steps (a)-(g) to generate an environmental risk assessment report, wherein said report does not involve a physical inspection of the property;

(i) providing said report to at least one person.

2. The method of claim 1 further comprising the step of requesting an environmental risk report with an order form.

3. The method of claim 2 wherein the order form is available online over the internet.

4. The method of claim 1 wherein said report comprises conclusions, at least one aerial photograph from a publicly available database, and a summary of risk factors.

5. The method of claim 4 wherein the conclusions include at least one of an environmental risk statement, a finding with respect to banking security, a finding with respect to legal liability, and a finding with respect to property value.

6. The method of claim 4 wherein the conclusions include a finding with respect to risk of property ownership on a scale of low/moderate/high/very high levels.

7. The method of claim 6 wherein the low risk level is based on determinations indicating that environmental issues are unlikely to materially impact the value of the property.

8. The method of claim 6 wherein the moderate risk level is based on determinations indicating that environmental issues are unlikely to materially impact the value of the property but that some environmental issues have been identified that require consideration in order to ensure that the property value will not change over time.

9. The method of claim 6 wherein the high risk level is based on determinations indicating that environmental issues are unlikely to materially impact the value of the property but that some environmental issues have been identified that require action without which the property value will change over time.

10. The method of claim 6 wherein the very high risk level is based on determinations indicating that environmental issues have been identified that require further assessment to determine if they are likely to materially impact the value of the property.

11. The method of claim 1 wherein said report is based on data gathered from at least one data source selected from the group consisting of historical land use databases, environmental agency recorded pollution incident databases, sites determined as contaminated land databases, landfill site databases, environmental agency waste site databases, current industrial sites databases, petroleum and fuel site databases, groundwater vulnerability databases, soil leaching potential databases, government designated property databases, and databases representing combinations thereof.

12. The method of claim 1 wherein at least one of steps (a)-(h) is performed with a computer.

13. The method of claim 1 further comprising the step of providing guidance on asbestos management.

14. The method of claim 1 wherein said report includes consultant recommendation to contact local agency and/or perform a physical inspection of the property.

15. The method of claim 1 wherein said report includes legal recommendations to consider as part of property transaction including contract exclusion language, liability amounts, and indemnity language.

16. The method of claim 1 wherein the report includes financial solutions including environmental insurance quotes with conditions and limitations.

17. A method of assessing the environmental risk associated with a property, said method comprising the following steps:

(a) determining a current use or uses of a property;

(b) determining an intended use or uses of the property;

(c) determining whether the property will be redeveloped, and if not to be redeveloped, then further providing an automatic quote for environmental insurance;

(d) determining an age of the property;

(d) determining whether underground storage tanks are present on the property, and if present, then site with said tanks is excluded from said insurance;

(e) determining a legal indicator for legal advice, said indicator selected from the group consisting of no-change selling, freehold, buying leasehold, renting leasehold, insolvency, refinancing, takeover, and unknown;

(f) determining an approximate cost of any transaction involving the property;

(g) determining a timescale of said transaction from step (f);

(h) combining the above determinations of steps (a)-(g) to generate an environmental risk assessment report, wherein said report does not involve a physical inspection of the property;

(i) providing said report to at least one person.

18. The method of claim 17 wherein said report is based on data gathered from at least one data source selected from the group consisting of historical land use databases, environmental agency recorded pollution incident databases, sites determined as contaminated land databases, landfill site databases, environmental agency waste site databases, current industrial sites databases, radioactive substance licenses databases, water industry referrals databases, dangerous substance inventory sites databases, licensed discharge consents databases, petroleum and fuel site databases, dangerous or hazardous sites databases, floodwaters databases, natural subsidence databases, radon affected areas databases, mining databases, groundwater vulnerability databases, soil leaching potential databases, government designated property databases, river quality databases, and databases representing combinations thereof.

19. The method of claim 17 wherein at least one of steps (a)-(h) is performed with a computer.

20. The method of claim 19 wherein at least one of steps (a)-(h) is performed online over the internet.

21. A method of providing financial assurance via an insurance policy comprising the following steps:

(i) supplying an environmental risk report to a party interested in a parcel of property;

(ii) automatically supplying an environmental insurance quote based upon said environmental risk report;

wherein said environmental risk report is generated by;

(a) determining a current use or uses of a property;

(b) determining an intended use or uses of the property;

(c) determining whether the property will be redeveloped, and if the property is to be redeveloped then not supplying an automatic environmental insurance quote;

(d) determining whether underground storage tanks are present on the property, and if present, then site with said tanks is excluded from any automatic insurance quote;

(e) determining a water distance to nearest surface water;

(f) determining a residential distance to a nearest residential property;

(g) determining a agriculture distance to a nearest agriculture property;

(h) combining the above determinations of steps (a)-(g) to generate an environmental risk assessment report, wherein said report does not involve a physical inspection of the property; and

wherein at least one of steps (a)-(h) is performed with a computer.

22. The method of claim 21 wherein said report is based on data gathered from at least one data source selected from the group consisting of historical land use databases, environmental agency recorded pollution incident databases, sites determined as contaminated land databases, landfill site databases, environmental agency waste site databases, current industrial sites databases, petroleum and fuel site databases, groundwater vulnerability databases, soil leaching potential databases, government designated property databases, and databases representing combinations thereof.

23. The method of claim 21, further comprising:

(iii) receiving at least one premium payment associated with said insurance quote sufficient to initiate an insurance policy;

(iv) paying, according to the insurance policy, actual costs related to identified environmental conditions to said party between a policy inception date and a policy termination date, in order to provide financial assurance to said party interested in said parcel.