Case Study:

Flipping the Narrative for Underwriters

AssuredPartners Real Estate

AssuredPartners Real Estate
AssuredPartners Real Estate
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Quick Facts

Real Estate Sector: Apartments

Specialization: Market Rate

Resource: IMPACT Analytics

Valued Client Since: 2020

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Challenge

A large real estate owner of apartments throughout Arizona, North Carolina and South Carolina was being canceled by their insurance carrier due to losses and the age of the properties. The portfolio consisted of older buildings (1979 and older) and 93% of the portfolio was wood frame construction.  In addition, much of the $325 TIV were in high-risk exposure (e.g., wind, hail etc.) areas. The real estate owner was granted a 30-day extension with their carrier. Based on current offerings, the real estate owner was looking at a $150,000 increase.

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Solution

AP reviewed the property information and loss data. We then modeled the account to a more favorable outcome. The exposure and hazard data was provided to the real estate IMPACT Analytics team. The analysts started with expanding the statement of values with detailed information on HVAC, electrical, plumbing, roof, etc. updates. Next, the analysts produced a limit adequacy report – probable maximum loss (PML). In addition, the analysts provided modeling and exposure analysis for hail, hurricane, tornado, all other wind, flood, earthquake and wildfires. The data revealed an acceptable level and spread of risk that met many carriers' underwriting standards. Underwriters were favorably influenced by the narrative and data provided by the analytics team.

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Client Value

AP was able to provide an insurance program that was 24% less per door for property and general liability with lower deductibles for the real estate owner.The 24% translated to a savings of $83,000 for the real estate property owner.