If you’re looking for a Real Estate focused insurance broker in New York, The Coyle Group is your choice. The Real Estate market segment includes owners and operators of:
- Apartment buildings
- Commercial mixed-use buildings
- Office Buildings
- Strip Malls
- Condominium and co-op associations
- And other real estate operations
Right now we are seeing disruption in this market segment when it comes to insurance. This disruption is coming in the form of higher rates and greater underwriting scrutiny. In the insurance business, we call this a firming or hardening of the market. I would characterize it right now as firming. There is still widespread availability of coverage but at higher rates. If or when availability constricts then we would call it a hard market.
Property rates have been increasing over the past two years due to claims across the globe. Wildfires, earthquakes, hurricanes and other property destroying events are driving the rate changes. In 2020 we will see rates continue to climb during the year. Â Rate increases can range from 5% to 30% or more depending on location, use, loss history, and other underwriting factors.
The large umbrella programs common in New York real estate with limits of $50M to $100M are also seeing some changes. These programs have been very competitively priced and we’re seeing the prices increase. Also, limits are being curtailed. So in the past where you could get $100M, now you may only be able to get $75M or $80M at the same price point.
So, what’s the solution?
There’s no easy answer to a changing marketplace. But here are some simple tips to help improve your renewal process:
a. Start Early. If your insurance program is over $50,000 in premium, start your renewal process 6 months in advance. Below $50,000 in premium may not need as much time but allow at least 3 months in advance.
During this time, work with your real estate insurance broker New York to identify problems that may arise in the renewal. For example, have you not complied with any loss control recommendations? You may want to take care of those items in advance of a reinspection.
Make sure there are no outstanding violations with the building or fire departments. If there are, resolve them.
b. Document the positives. Have you done anything to improve the safety or risk management of your property (ies)? If so, make sure you document it in your renewal submission.
Have you had your sprinkler systems inspected and tested? If not, get it done and submit the results to your broker.
c. Have a strategic meeting with your broker. If you have not had a meeting like this in the past, now is the time to do so. When I say strategic, this discussion should focus on market conditions. What’s happening with the key players/insurers in the market? Is it time to remarket your account? When was the last time you marketed or canvassed your account?
All of these questions need answers. If you don’t think your broker is up to the task of handling the renewal then it may be time for a change. If you decide it may be time for a change, and bring in competition, then carefully select which brokers you want to work with; not necessarily the brokers which knock on your door every year.
Have questions, concerns, unresolved issues? Want to talk to an expert without feeling pressured? Then give us a call or click the next steps button to set up some time to chat.