The New Way to Characterize Property Insurance Options for Clients in California

[marindependent]

A client recently asked what i thought of a proposed policy that had low coverages, high fees, loaded with sublimits and exclusions, no an ACV valuation, and was a full pay all pay with a minimum earned premium with all fees being fully earned. I responded with:

"Its something -and that is a lot these days."

I am thinking that could be @Al3x Lee new Insurance motto.

 

[Al3x Lee]

"Its something -and that is a lot these days."

It's a harsh and inconvenient truth, but too many people still believe it’s a buyer’s market. I’ve seen folks get frustrated with their insurer, cancel their policy on a whim, thinking other companies would jump at the chance to take them on - only to find themselves either uninsured or stuck with higher premiums and worse coverage. Some people are living under a rock.

 

[Al3x Lee]

I am thinking that could be @Al3x Lee new Insurance motto.

Agreed! I've stolen it

 

[Al3x Lee]

It's a harsh and inconvenient truth, but too many people still believe it’s a buyer’s market. I’ve seen folks get frustrated with their insurer, cancel their policy on a whim, thinking other companies would jump at the chance to take them on - only to find themselves either uninsured or stuck with higher premiums and worse coverage. Some people are living under a rock.

So, somehow, whenever I say this stuff... it ends up happening shortly after. Hilariously enough, this exact scenario happened to me last Friday.. so you know.. 2 days after posting about it.

This insured was positively outraged—furious—because his insurance provider wouldn’t give him the royal treatment and pro-rate his excess liability coverage for the few months left on his policy. You know, like it’s personally offensive to him that they didn’t rewrite their entire business model just to make him happy. So naturally, his genius solution was to cancel all his insurance with that provider

To make things even better, this wasn’t your off the shelf insurance policy, no. This guy was in a hyper-specialized program tailor-made for businesses in his specific industry. It’s the kind of program that’s administered by a General Agent, and the risk was split between three different, admitted insurers. Oh, and let’s not forget, it was only available to members of his industry association.

It’s like walking into a five-star restaurant, throwing a fit because they won’t give you a free appetizer after you’ve already eaten most of your steak, and then dramatically announcing you’re going to dine at a gas station from now on. 'Oh, you won’t pro-rate my meal because I’m halfway done? Fine, I’m canceling my reservation and going to eat microwave burritos in my car!'

And to top it all off, after threatening to cancel his insurance, this guy seriously expected me to somehow find him a ‘better’ policy—one that doesn’t exist, mind you—that would magically be more competitive, cheaper, and, of course, tailored exactly to the precise wording and specifications of his current, ultra-specialized policy. Because clearly, I have some hidden stash of insurance policies that are cheaper, better, and delivered on a silver platter just waiting for clients who burn their bridges.

I mean.. I know, I get it. I'm Al3x Lee.. I have a number in my name and a reputation, but when I explain that maybe, just maybe, his situation is a little too niche to casually replace, he acts like I’m the one being unreasonable. Like it’s my fault that there isn’t an army of insurance companies lined up, desperate to recreate his custom plan at a discount.

 

[Policy Monkey]

So, somehow, whenever I say this stuff... it ends up happening shortly after. Hilariously enough, this exact scenario happened to me last Friday.. so you know.. 2 days after posting about it.

This insured was positively outraged—furious—because his insurance provider wouldn’t give him the royal treatment and pro-rate his excess liability coverage for the few months left on his policy. You know, like it’s personally offensive to him that they didn’t rewrite their entire business model just to make him happy. So naturally, his genius solution was to cancel all his insurance with that provider

To make things even better, this wasn’t your off the shelf insurance policy, no. This guy was in a hyper-specialized program tailor-made for businesses in his specific industry. It’s the kind of program that’s administered by a General Agent, and the risk was split between three different, admitted insurers. Oh, and let’s not forget, it was only available to members of his industry association.

It’s like walking into a five-star restaurant, throwing a fit because they won’t give you a free appetizer after you’ve already eaten most of your steak, and then dramatically announcing you’re going to dine at a gas station from now on. 'Oh, you won’t pro-rate my meal because I’m halfway done? Fine, I’m canceling my reservation and going to eat microwave burritos in my car!'

And to top it all off, after threatening to cancel his insurance, this guy seriously expected me to somehow find him a ‘better’ policy—one that doesn’t exist, mind you—that would magically be more competitive, cheaper, and, of course, tailored exactly to the precise wording and specifications of his current, ultra-specialized policy. Because clearly, I have some hidden stash of insurance policies that are cheaper, better, and delivered on a silver platter just waiting for clients who burn their bridges.

I mean.. I know, I get it. I'm Al3x Lee.. I have a number in my name and a reputation, but when I explain that maybe, just maybe, his situation is a little too niche to casually replace, he acts like I’m the one being unreasonable. Like it’s my fault that there isn’t an army of insurance companies lined up, desperate to recreate his custom plan at a discount.

Oh boy can I relate to that story. I have a client right now that is mad at me because I can't get the same price for her 30 year old house that I got for her mothers 1 year old house.