Challenge

Nobody likes unwelcome surprises. Yet this real estate developer’s insurance broker never contacted him before renewals to discuss or strategize about likely premium increases. The broker simply provided quotes without offering insights into the cost drivers or suggesting alternatives.

Further, the developer’s business model called for the use of exterior insulation and finish systems (EIFS). The company’s insurance policy specifically excluded this risk.

Something needed to change to protect the operation’s continued viability.

Solution

The Hylant team took time to analyze the developer’s business and consider creative ways of addressing the client’s needs. Ultimately, using a specially designed indemnification agreement, CAT modeling and an optimization study, the team secured a property policy that combined appropriate levels of coverage at an acceptable cost in exchange for a higher deductible. The policy satisfied the lender’s requirements and, importantly, did not exclude using EIFS.

Today, and for the first time, the developer understands his insurance spend and terms. He is more confident that the business is appropriately protected and has greater control over his expenses.

If your broker fails to keep you informed or offer fresh ideas, it’s time for a better broker.