Agent Commissions Chart

[djs]

FAIR plans don't have bonuses or trips, to the best of my knowledge.

Dan

 

[RFNAPLES]

Not so fast....
We are getting one side of the story here, the agent may not be as wrong as it sounds.

What type of loan is on the house? A homeowner loan or an investor loan? If its a homeowner loan, the OP got this by saying he was going to live there, hence making this a primary residence is CORRECT, or at least, defensible.

As far as commission goes, given you were planning on selling the house, a few percentage points doesn't make much difference. Think about it, even if it was a $1000 premium, the difference between 15% and 20% is $50 max, not worth any sort of hassle.

P&C agents are in it for the renewals, not the original commission.

Also, if the agent wanted the commission, he would have written it vacant. The premium is usually MUCH higher to account for the bigger risk. He would actually make more.

I used to work with a few investors, eventually they went to other agents because they got better rates. Very similar deal, didn't want to pay attention to how the rates were lowered, figured it wasn't a huge risk, they just needed to show coverage. I'd write it correct. That didn't last long, I was to expensive (till you had a loss).

Most fair plans have exceptions to the 2 other carrier rule. Not sure if this one does or if this house would fall into those exceptions. For example, you may not have to submit the application if the house falls out of the scope of standard underwriting guidelines.

Go back and look to see if you signed the application. If so, you said everything on that application was correct. I understand the agent is the expert and you relied on that, but it isn't as clear cut as it sounds.

Dan

Can't an insured get around the vacancy rules/rates by making the property unoccupied, i.e. place a chair or clothing in the property?

 

[Josh]

I like your thought process, but even at that, it's hardly a primary residence with a chair.

 

[FEX Quotes]

Perhaps a chair like this might convince an underwriter..

I like your thought process, but even at that, it's hardly a primary residence with a chair.

 

[Guest]

Can't an insured get around the vacancy rules/rates by making the property unoccupied, i.e. place a chair or clothing in the property?

I have to go there and say what a friggin ***....if you dont know what occupied means, I sure as hell hope you arent selling P&C insurance....

Oh Wait, there might be a rat or a cockroach living there, does that make it occupied?

where is the banging my head against the brick wall smiley????


Just went to this dudes website, sure has alot of letters behind his name.........all that didnt help him with this question

 

[djs]

Can't an insured get around the vacancy rules/rates by making the property unoccupied, i.e. place a chair or clothing in the property?

The short answer is NO.

It can be fully furnished and still be vacant. The question is based solely on whether someone lives in the house, not if there is furniture in the house. This is true for both your loan and your insurance.

Reason? On the insurance side, vacant property has a much higher claims rate than occupied property. Vacant houses burn down more frequently than occupied houses.

The definition of vacant varies a bit, but in general, it means nobody lives there for 60 days or longer. This allows, especially in landlord policies, for some vacancy time between tenants, but usually there is still sufficient activity in the property during that time to mitigate vacancy risks. For example, the property is being renovated or shown to prospective renters, buyers, etc.

Dan

 

[RFNAPLES]

I have to go there and say what a friggin ***....if you dont know what occupied means, I sure as hell hope you arent selling P&C insurance....

Sir, my question dealt with unoccupied vs. vacant. Yes I know what occupied is. Do you know the difference between unoccupied and vacant? Hope you answer client and prospect questions a bit more civilly.

 

[FEX Quotes]

Can't an insured get around the vacancy rules/rates by making the property unoccupied, i.e. place a chair or clothing in the property?

As an agent, I would never recommend circumventing vacancy rules/rates by suggesting such a charade. Should there ever be a contested claim and following suit such as this case, any half baked attorney will have this exposed in discovery faster than a NY minute..

I see from your signature and website you're not a P&C guy, so I pose this question to you..

Would you suggest to an insured he could possibly avoid smoker rates by having a friend take his exam?

 

[Guest]

Sir, my question dealt with unoccupied vs. vacant. Yes I know what occupied is. Do you know the difference between unoccupied and vacant? Hope you answer client and prospect questions a bit more civilly.

um gee whiz, no I dont........

You dont even sell P&C

Please dont call me sir, you make me feel old.....

Seriously, you think placing a chair in a house will get around policy wording?

 

[RFNAPLES]

Would you suggest to an insured he could possibly avoid smoker rates by having a friend take his exam?

No, substitution is fraud. I was questioning definitions, unoccupied vs. vacant.