RickyG
Expert
- 78
As insurance carriers across the country are having issues with staying profitable on the property side, I continually see something that I've yet to hear addressed. RCE's and even the follow up inspections coming in overly inflated.
Example, client built a home from late 2022 to mid 2023. Nice place, large custom etc. He spent under 925k. RCE comes in at 1.5ish. Inspector goes out and comes back 2.25m rebuild costs triggering non-renewal due to cost being over companies Dwelling A max.
I understand not all things are equal and you have to account for other factors plus contractors' costs which vary etc. However, 2.25m+ when the actual work had just been done less than 18 months ago with closer to 900k is quite a miss. I believe this leads to contractors and loss mitigation companies being able to fleece insurance carriers because the excessive charges appear reasonable based on these bogus inspections. I imagine inspection companies are run by contractors who's interests directly benefit from these inflated repair bills, seems like a pretty massive conflict.
I think any execs at carriers who write homeowner policies need to look into this seriously if they want to get to the root of these issues rather than cutting agent commissions, pulling out of markets etc. Maybe I am missing something major here and if so I assume someone will point it out
Example, client built a home from late 2022 to mid 2023. Nice place, large custom etc. He spent under 925k. RCE comes in at 1.5ish. Inspector goes out and comes back 2.25m rebuild costs triggering non-renewal due to cost being over companies Dwelling A max.
I understand not all things are equal and you have to account for other factors plus contractors' costs which vary etc. However, 2.25m+ when the actual work had just been done less than 18 months ago with closer to 900k is quite a miss. I believe this leads to contractors and loss mitigation companies being able to fleece insurance carriers because the excessive charges appear reasonable based on these bogus inspections. I imagine inspection companies are run by contractors who's interests directly benefit from these inflated repair bills, seems like a pretty massive conflict.
I think any execs at carriers who write homeowner policies need to look into this seriously if they want to get to the root of these issues rather than cutting agent commissions, pulling out of markets etc. Maybe I am missing something major here and if so I assume someone will point it out
