Casualty Risks in Habitational Market

As you prepare to deal with property owners concerning the risks that threaten their financial and reputational success, it is imperative to understand the predicted trends in the habitational market. The real estate industry is changing, emphasizing tenant safety and risk mitigation strategies in both commercial and residential ventures.

As an insurance broker, clients will expect you to know their exposures and provide comprehensive solutions through habitational insurance.

Presenting Habitational Insurance Programs

The insurance industry is impacted by economic situations, natural disasters, and civil unrest. While troubling times often lead to a pricing environment that scares off potential clients, these situations necessitate purchasing adequate loss protection. As you prepare to address the habitational risks that your clients could encounter, you must have enough information to recommend coverage adequately. This requires taking a more data-driven approach to underwriting.

Discuss Valuation

Recent events have put more of a spotlight on valuation, as losses from the catastrophes of civil unrest and a global pandemic continue to climb upward. With habitational properties, tenants have become less reliable for timely payment of fees or rent. Additionally, there has been an increased risk of property damage and continual business interruption threats. Clients may not be able to prioritize their risks, leaving the decision to your advice. Know how to best value the properties in your area if you want to protect your clients.

Discuss Risk Improvements

In light of the challenges property owners have faced over the last year, it is important to discuss the need for risk improvements or management strategies. As premium rates continue to climb, taking proactive measures to protect a property from evident risks benefits both the insured and the insurer. When exposures and potential liabilities are reduced, it adds financial stability to the underwriting and premium costs. Habitational improvements include fire prevention programs, security camera installation, or increased lighting in public spaces.

Facing the Challenges of the Market

The habitational market has become more challenging to navigate. As such, many insurers have abandoned covering habitational properties. It can be harder to find a company willing to assume the risks of your client. In casualty coverage, crime claims and plaintiff-friendly judgments have become significant concerns. Insurance carriers have also doubled down on the restrictions and exclusions of basic policies. Weather-related coverage, such as wind and hail for Midwest states, is becoming harder to find.

These challenges can make it difficult for you to do your job, but it isn’t impossible. In addition to securing a habitational policy, you may also need to educate your clients on the additional support an umbrella or excess program policy could bring. You will need to develop a strong relationship with your clients and a deep understanding of the insurance trends if you are going to navigate through the risks of habitational property ownership.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.