Case Study:

Restructured Program

AssuredPartners Real Estate

AssuredPartners Real Estate
AssuredPartners Real Estate
Quick Facts icn

Quick Facts

Real Estate Sector: Apartments

Specialization: Market Rate

Resource: IMPACT Analytics & Marketing Expertise

Valued Client Since: 2000

Challenge icon

Challenge

An apartment property owner / manager with 15,000 units in 15 states was struggling with year-over-year double digit increases due to losses.   

Solution icon

Solution

The real estate team provided detailed analytics and a specific long-term strategy. Our advice was to restructure the program so that they were no longer “trading dollars” with the insurance company. AP moved the property placement from traditional property insurance to a “dividend-like” program that provided a win-win for the insurance carriers and the property owner. The insurance carriers’ attachment point was higher. At the same time, the property owner could save up to 30% of their property premium with favorable losses. In addition, AP convinced the real estate owner that increasing their general liability deductible from $2,500 to $25,000 was intelligent risk for them to take on. The premium savings to go to a $25K deductible offset the cost of the claims under the $25K deductible and provided a long-term, stable program going forward.

Client Value icon

Client Value

The restructured program – even after loss funding – resulted in over $1M savings, $800,000 up front when placed and another $300,000 when losses came in less than projected.  In addition, the carrier loss ratio was zero and the coverage was enhanced. The new structure provides long-term pricing stability and a much better portfolio picture when marketing to insurance carriers.