Building Management Hawaii April/May 2014 - (Page 42)
Navigating Property Insurance
How to get a quote and land a well-priced premium.
By Ron Tsukamaki
A
s an insurance agent, I'm
sometimes frustrated by the
very industry I work for. For such a
large industry that affects everyone it
touches, you would think we'd do a
better job of being more user friendly
and allowing a more transparent
method of providing insurance. Here
are some of my thoughts, which
hopefully will make it clearer for
those of you seeking the lowest priced
property insurance program.
InsuranCe
Getting A Quote
Why is it so difficult to get a
quote from different insurance
agents? The simple answer is that an
insurance company will only quote
for one agent-not two. Therefore,
when there are only a few insurance
carriers providing the type of
coverage needed, one agent can
contact the insurance carriers and
"block" other agents from accessing
those companies. Most insurance
companies decide who to work with
by accepting the first agent who
provides a submission.
This might not sound very
important, but an agent can send
submissions to all the carriers to
prevent other agents from accessing
the markets, thus seriously restricting
competition. In addition, it can
prevent a very professional agent
who might have a close relationship
with certain insurance companies
from accessing those companies and
developing the best possible program
and pricing.
&
Choosing the right professional
agent to represent you is essential,
and it involves variables such as:
* Preparing thorough applications;
* Having knowledge of the risk;
* Understanding how the insurance
carrier underwrites their risk;
* Having a reputation of integrity; and
* Knowing how to differentiate your
account from the many others that
the underwriter will see to obtain
the most favorable quotation.
You want an agent who can bring
the above qualities to the insurance
carriers, rather than one who will just
"shotgun" the markets and hope for
the cheapest program.
Sometimes having only one agent
represent you is important, especially
when it involves risks with large
values. Such a situation requires
a number of insurers strategically
pieced together to offer the broadest
and most competitive program. A
knowledgeable, experienced agent is
certainly preferred over an agent who
doesn't understand each insurer's
strengths or appetite for risk.
If you want to have different agents
compete, I suggest the following steps:
* Agree to only have two agents
involved in the competition.
* Interview potential agents and
determine the two agents involved.
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42
April-May 2014
4
BMH
* When you have determined which
agents you would like to compete, ask
them to give you a list of the potential
insurance markets that they want to
approach (by line of coverage). They
should indicate why they would like
that market and rank their markets in
order of preference. Based upon the
order of preference, you should assign
markets to each agent. (Remember an
insurance carrier will only quote for
one agent-therefore you'll need to
assign markets to each agent so each
can get quotations.)
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Table of Contents for the Digital Edition of Building Management Hawaii April/May 2014
Editor’s Note By Stacy Pope
Hawaiiana Hits The Big Five-0
CONCRETE Restoration and Repairs: Maintaining A Strong Foundation
Concrete Spalls, Cracks And Leaks
Should You Repair Or Replace?
Restoring Exposed Aggregate Surfaces
Preserving A Historic Treasure
ELEVATOR Modernization: Are You Losing Energy?
Greening Your Elevators
Upgrading On A Budget
INSURANCE: Locking Down The Leaks
Navigating Property Insurance
COOLING TOWERS: HVAC Chemical Feed Pumps
Waikiki’s Oldest Hotel Keeps It Cool
Industry News or Movers & Shakers
On Site: Self-Management 101
Building Management Hawaii April/May 2014
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