Our first question comes from Ann Marquis Fisher with Deer Oaks Association. Ann asks “Why do you always ask for loss run reports?”
This is a great question and I imagine something that causes extra work for our clients and may seem unnecessary. Requesting loss history when inheriting brand new business seems logical. New carriers need to see the history of a property in order to determine an association’s eligibility. But why each year upon renewal?
Each year upon renewal, we review coverage, limits, premium and how effectively claims have been handled. If we feel our client could benefit in anyway by looking for alternative insurance markets, we need to approach those carriers with updated information. This includes currently valued loss history reports.
And why can’t we just offer carriers the loss history we obtained last year? Believe it or not, loss history can change year to year, even after the policy period has already come and gone. Some losses aren’t discovered until after a coverage period ends, but can still be submitted under the policy period in which the loss occurred. Most carriers need loss history dated within 60 days of binding. Every carrier is a little different. Some require three years worth of loss history, some four, some five, but all require currently dated information. The good news is, once insurance has been serviced by our agency a few years, we have direct access to loss history and will no longer require our clients do anything to help obtain it. This means the longer you stay with Socher, the less you have to do.
*Do you have a question for Charlotte? No topic is off limits. Please submit your questions to askcharlotte@hoainsurance.net *
