700 Units - Habitational - No Inspections? How?

[insurance1822]

This is a big real estate investor so he's buying 5 properties per month that typically are in need of renovations. Some will be flipped, otherwise will be renovated and filled w/ tenants. But how does this fit on Miller's standard paper? Do you think they'd accept this OR did the new agent just blow smoke at the UW who maybe doesn't understand this account.

That's what my point is...as they move all these properties (and continue to add new ones...) there's no way UW won't eventually catch onto this. He will buy a 700k distressed building & renovate this thing with 200k and then get tenants.

 

[djs]

My guess.... the agent worked with underwriting to explain the total value of the entire account, showed the risk was spread out over a geographical area and even though an annual loss was possible (probable), the overall premium would still make the deal profitable.

700 units in one spot can be a pretty big risk. 700 units spread out is a much lower risk.

Dan

 

[Matt37]

This is a big real estate investor so he's buying 5 properties per month that typically are in need of renovations. Some will be flipped, otherwise will be renovated and filled w/ tenants. But how does this fit on Miller's standard paper? Do you think they'd accept this OR did the new agent just blow smoke at the UW who maybe doesn't understand this account.

That's what my point is...as they move all these properties (and continue to add new ones...) there's no way UW won't eventually catch onto this. He will buy a 700k distressed building & renovate this thing with 200k and then get tenants.

Honestly .. Millers might know or they might not.

I have seen them do some crazy stuff on hab. but they got their butts kicked the past few years so I thought they were easing up.

Also .. Millers has an in house brokerage I think called Riverside or something .. they could have a piece of the account brokered.

depending on the level on renovation.. I am assuming the account has a BR policy and also vacancy endorsements... which most would not put on standard paper.

my guess is pieces of it are brokered out and Millers writes the rest .. I don't think Millers writes builders risk but their in house brokerage probably does.

I've written several accounts where I had them placed in the excess market during vacancy and then once the scaffolding went up I put a BR on it and then once complete my admitted market took it .. probably what's going on here.

Or Millers is just crazy and starving for premium because they are leaking oil and just writing anything with premium to it.

$250k account for a carrier that is sinking is tempting.