Capital District Association of Rental Property Owners

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• Capital District Association of Rental Property
  Owners

HELPFUL HINTS TO MANAGING YOUR INSURANCE COST
Joseph M. Place, CIC Associates of Glens Falls,
Inc. [phone] / 588-0625 (cell)
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• What is a Hard Market and how does it impact my
  insurance premium?
• Should I seek alternative quotes? Can I rely on
  my current agent to find the best solution for
  me?
• Do I know what Insurance Companies underwrite
  Apartments and Commercial Property Owners?
• How do I find the insurance companies that want
  to write my business?
• How much of my time will it take to get
  alternative quotes for my insurance? What does
  the process involve?

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Insurance Companies that Underwrite Apartment
Owners

• Acadia Insurance
• Harleysville Insurance
• Travelers Insurance
• Philadelphia Insurance
• Cincinnati Insurance
• Middle Oak Insurance
• Hanover Group
• Erie Niagara
• Great American Insurance
• Hartford Insurance
• Central Insurance
• Chartis Group
• Erie Insurance
• NY Central Mutual
• Sterling Insurance

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What does an Insurance Company Consider When
Underwriting a Rental Property Owner?

• Age of the building (s) and total square feet of
  the building (ITV)
• Maintenance Updates especially wiring, roof,
  hvac, windows
• Condition of the building, including sidewalks
  parking lots
• Condition of the buildings next to your building
• At least 2 means of egress
• Measures taken to control prevent losses i.e.
  alarms, sprinkler systems, lighting, night
  watchman, owner on premises, hard wire smoke
  detectors
• Your Credit Report Payment History
• Occupancy rate
• Vacancy
• Vacancy of your building and surrounding
  buildings
• Demographics of your tenants
• Loss Experience frequency of claims vs.
  severity of claims
• Amenities offered pool, spa, workout facility
• How many insurance companies have you been with
  in the last 5 years
• Fill out the supplemental application accurately
  it impacts your premium!!!

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HELPFUL HINTS TO MANAGING YOUR INSURANCE
COST

• Make sure you have a combined package or bop
  policy vs. stand alone property general
  liability policies.
• What is the right deductible for your policy and
  how much money will I save using higher
  deductible?
• How does coinsurance s affect my premium?
• Actual Cash Value (ACV) vs. Replacement Cost (RC)
  how does this impact my premium?
• Am I getting all the premium credits that are
  available to me? (exterior lighting, local alarm
  credit, central station credit, night watchman
  credit, hard wire smoke heat detectors,
  sprinkler system credit)
• Is there a savings advantage to combining all of
  my apartment policies to one master policy?
• Is it more cost effective to carry higher limits
  on my GL policy as opposed to getting a separate
  umbrella?
• Why should I advise my current agent of any
  updates or improvements that I have made to my
  properties?
• Your Credit Rating impacts your premium (the
  better your score, the more competitive your
  rates). Pay your premiums on time. Lazy bill
  payers, pay higher premium.
• Ask if there are loss prevention recommendations
  you can implement that'll lower your premiums

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Coverages to Consider

• Boiler (aka systems power pack)
• Flood
• Blanket Agreed Amount for multiple locations
• Building Ordinance Coverage is my limit high
  enough to accommodate ADA and city ordinance /
  law
• Do I have the proper Business Income (or Loss of
  Rents) coverage
• Am I requiring my tenants to carry insurance and
  can I be added to their insurance policy as an
  additional insured and can I have them waive the
  right of recovery against me (the building owner)
  for a tenants personal property loss
• Tenant Discrimination Liability Insurance
• Am I susceptible to a Coinsurance Penalty ?
• Labor Law Section 240 Am I at Risk?