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Why Specializing Matters?

Written by Deryk Morelock, CIC

Since the beginning of 2016, the Habitational Insurance business has significantly changed for all interested parties, from those who sell, those who buy and also those who provide coverage for the two.

Over the years, insurance for Real Estate risks, Apartments, Single Family Dwellings, Condo Association and the like has been a historically profitable business model in the Midwest region, as prior to the last 10 years, exposure to the perils of wind/hail and tornado have been limited, and the area has been a hub for large, horizontal, wood-frame developments with expansive rooflines over many units.

Beginning with the category EF5 Tornado which devastated the Joplin area in 2011, and followed by Hurricanes, Blackouts, Pandemics, Tsunamis and generally unstable economic times guided by inflation, and driven by constantly changing supply and demand restrictions on building materials and the like, the market for Habitational business has constricted more over the last 11 years than in the previous 50+.

Historically, the Captive markets have provided Enhanced coverage on a large scale to provide for this demographic. However, like the rest of the industry, and due to their “loose” underwriting guidelines, the Captive players have all but exited the Habitational space, and those left, are undoubtedly doomed to pay for the same mistakes they have been paying for over the last 15 – 30 years.

The key to controlling your experience in this troubled marketplace is partnering with an advocate who will fight on your behalf within the industry. Choosing someone who has dedicated their career to understanding the nuances associated with what it is that you do for a living.

If I have to get my oil changed, I don’t take my vehicle to Wal-Mart. I take my auto to a dealership who specializes in autos of my make and model type. If I am diagnosed with brain cancer, I want someone who ONLY looks at tumors of the head, not a general doctor who sees children in the morning and diagnoses allergies in the afternoon.

The only way to fight back against a constricting marketplace, scared providers and ignorant “generalist” representatives is by choosing a specialist to represent your business. Someone who understands the markets, knows the players and has developed the strategic relationships necessary to help guide your ship through the troubled waters of the Real Estate Insurance marketplace.

It takes work, but together, we can help you control your exposure to risk, mitigate your loss experience and create the most favorable account possible to market to the carriers in the business who share your ethos as it relates to controlling the Insurance experience, not only in this renewal term, but into the future. We hope you will join us in our quest to change the paradigm of Real Estate business, one preferred client at a time.