The past few years have seen an increase in levels of homelessness throughout the country. Booming population inflows, lack of affordable housing and shelters at capacity have contributed to this issue. A result of all of these factors is an increase in homeless encampments. Homeless encampments can create a unique exposure for organizations, such as social service organizations and houses of worship that serve this population.
The innate goal of nonprofits is to help vulnerable communities. Many organizations, including houses of worship, community centers, youth centers, senior activity centers, residential programs, referral services, food banks and thrift stores are there to help those who are less fortunate. However, their interaction with the homeless community can create increased challenges and exposures.
Homeless encampments can create an increased risk for fire, arson and vandalism losses. While vandalism appears to be more of a frequency issue, fire losses create the potential for large losses. Debris from tents, blankets, mattresses, trash and small fires started for warmth can be a recipe for disaster. We have experienced large fire losses as a result of this increased exposure.
In addition to an increase in fire exposure, there is also an increased risk of bodily injury. Some volunteers and members of these organizations have been attacked by individuals suffering from mental illness. Unfortunately, this vulnerable group is a result of the mental health crisis in our country.
It is important to be aware of the issues, causes and trends that affect nonprofit organizations. In addition to the above, there is an increase in crime and drug activity. Organizations can also lack the proper permits if they are permitting these homeless encampments on their premises. All of these factors can create an increased exposure and potential for losses.
