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. - 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.)

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