Case Study: Negotiating with insurers on behalf of property owners
Posted on 16th December 2020 at 14:55
As a local broker, our clients’ interests are at the forefront of everything we do and our team always works on behalf of clients, rather than the insurer.
A significant part of our role is negotiating the best terms in relation to premiums, excesses and endorsements.
We look after many local landlords and property owners with large portfolios, from ex-Council properties and student accommodation to large family rentals and high-end luxury apartments and we understand that making a living as a landlord is not without difficulties. When something goes wrong with a property it creates unexpected cost which eat into profits.
Five claims in a year
A client with a substantial property portfolio recently suffered five claims in a 12-month period, four of these related to escape of water and burst pipes, a common issue with rentals.
The existing insurer contacted us prior to renewal with an increased premium and new terms for this client, but then one week later they contacted us again to advise that they had decided to withdraw terms, due to the frequency and type of claims. In short, the associated risk fell outside of their appetite for this business.
Negotiating on our client’s behalf
Had this client arranged their own insurance or had they had been dealing with a call centre, it is highly likely they would have to find a quote elsewhere, typically meaning further expense, plus time wasted.
Working in their favour as a client of HI Commercial, this landlord did not have to worry as we did not accept the insurer’s decision and instead negotiated on behalf of the client.
As the escape of water was the cause of most of the landlord’s claims, we suggested the option to increase the escape of water excess.
This worked well for both parties - the client got a competitive renewal premium from their existing insurer and would pay slightly more for the repairs in the event of a new claim. The other option would have been for the client to move across to a new insurer with a steep additional cost and with less favourable cover.
The insurer was also happy as they will retain the business and gain-back some of the costs incurred from claims that had been paid out over the previous 12 months. Plus, for any future claims they would pay out slightly less in the event of an escape of water claim, as our client now has a slightly higher excess in comparison to the previous year.
Both parties were satisfied with the outcome and we were pleased to be able to assist.
If you are struggling to communicate with your current insurers, or feel your broker doesn’t seem to work on your behalf, we would love to hear from you.
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If you are not sure about your commercial insurance policies, please call HI Commercial on 01482 247477 for peace of mind that you will be protected at all costs. At your service, at your side – commercial insurance with a personal touch.
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