Insurance writers often refer to coastal properties as “hard-to-place” property. The term “hard to place” is typically used to describe a property that would be uninsurable in standard markets, is not completely uninsurable. A specialty insurance wholesaler, like Amsuisse, is capable of handling the unique underwriting characteristics of hard-to-place coastal property. Before agents take on the task of insuring a coastal property, they should consider the following three steps.
Step 1: Identify the exposures and risks.
Coastal property is revered for its benefits, like beautiful scenery and proximity to beaches and other amenities, but it also comes with a number of risks that make finding adequate insurance a little more difficult. Agents should work to identify the exposures and risks associated with each particular property in order to come up with a policy package that with meet the property’s needs. Common coastal property risks and exposures include; wind, flooding, long-term coastal erosion and landslides. Other things to take into consideration when determining insurance needs are the costs of replacements and rebuilding, and occupational use – is this a year-round residence, seasonal/secondary home or a rental property? Identifying the unique qualities of a specific coastal property will help agents ensure that they can present a comprehensive coverage plan.
Step 2: Educate your customers.
After an agent has identified the risks, exposures and other unique needs of a property, they should take the time to educate the customer and help them get a better understanding of what’s involved in the insurance writing process. Many consumers falsely believe that flood risk drives up the cost of coastal property insurance when in fact wind coverage is more likely the culprit. The National Flood Insurance Program (NFIP) has not only helped make flood insurance more attainable in at-risk areas, it also works to reduce flood risk for communities and can even provide subsidies to help clients decrease their flood risks.
Step 3: Provide a solution.
It doesn’t help property owners to be aware of their risks, exposures and challenges if there is not a solution for them. Agents should partner with a specialty insurance wholesaler that can provide a property insurance program that fits the unique risk profile of their hard-to-place coastal property clients. By taking the time and energy to work with each client and ensure comprehensive coverage, agents can build long-lasting relationships with their clients which will in turn help them grow their agencies within the coastal property community.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.