How important is to have Loss Runs for commercial policy that is a new purchase for client??!!

[AshwithanE]

Long story short here....I have an apartment complex for a bigger client and in the past it's been pretty easy to obtain loss history for the quotes. It almost appears that the carrier is going to MAKE me provide them...which I think there may be a way around that once it goes to underwriting. This a new purchase for the client and I'm just short of having my client contact the previous owner (seller) and ask them who they were insured with or ask them to provide this information. I talked to client about this yesterday and they said they have never been asked to obtain this info before? I'm assuming the premium could go down depending on what the loss history says but I'm wondering if it's really worth the hassle? I've tried to research this and there is just no easy or even semi-easy way to find this information.

 

[fed up]

Isn't there a management company for the complex? Or an HOA?

 

[AZDave]

Not uncommon at all. If there was a policy on that property the UW needs to see the loss history. It will help with the pricing as well.

This market is really hardened. Maybe in the past they would quote 'subject to', but not anymore.

 

[AshwithanE]

Isn't there a management company for the complex? Or an HOA?

I like how you're thinking on this one. I believe they self-manage but I might resort to that but I still feel like I would probably be frowned upon for calling and asking those odd questions or it's a waste of their time, etc...
Have you had any success doing that?

 

[Al3x Lee]

I talked to client about this yesterday and they said they have never been asked to obtain this info before?

Things change. Many insurers are not looking to take on large property risks without a really clear picture of what the risk is, including the loss history. Reinsurers are starting to cap the carrier's allowable property TIV. The insurers want to reserve as much of their capacity as possible for existing insureds and preferred risks.

Your insured needs to understand that this is not a buyer's market. They need to be the one selling themselves to the carrier as a preferred risk.

 

[AshwithanE]

Things change. Many insurers are not looking to take on large property risks without a really clear picture of what the risk is, including the loss history. Reinsurers are starting to cap the carrier's allowable property TIV. The insurers want to reserve as much of their capacity as possible for existing insureds and preferred risks.

Your insured needs to understand that this is not a buyer's market. They need to be the one selling themselves to the carrier as a preferred risk.

Have you dealt with this before? how did you go about getting loss runs from a 3rd party seller or previous owner? I don't even know the guy's name who is currently the owner/seller as it is owned by an LLC. Would just listing previous carrier suffice?

 

[Al3x Lee]

Have you dealt with this before? how did you go about getting loss runs from a 3rd party seller or previous owner? I don't even know the guy's name who is currently the owner/seller as it is owned by an LLC. Would just listing previous carrier suffice?

Yes, I have dealt with it, and usually the seller is willing to disclose the current carrier.

You probably won't be able to obtain the loss runs yourself since you're not the agent of the seller.

Is your client purchasing the property under a new business entity or are they purchasing the property with the LLC that currently owns it? More simply put - Are they just purchasing the property or are they purchasing the property and the business (LLC)?

 

[adjusterjack]

There is a C.L.U.E. report available for commercial properties.

C.L.U.E.® Commercial | LexisNexis Risk Solutions

 

[Allen Trent]

There is a C.L.U.E. report available for commercial properties.

C.L.U.E.® Commercial | LexisNexis Risk Solutions

Not all carriers report to CLUE, plus CLUE says you can't use it to make underwriting decisions

 

[Al3x Lee]

Not all carriers report to CLUE, plus CLUE says you can't use it to make underwriting decisions

Yeah, most of the commercial underwriters I work with say I can take the CLUE report and shove it up my...