Best Practices for Managing the Insurance Renewal Process
Managing your association’s insurance renewal can be a long, drawn out, and time consuming ordeal, that always seems to come down to the last minute. Creating a game plan and controlling the process will put you in a better position to obtain quality proposals in a timely fashion, and have your Board of Directors praising your “job well done.” Here are some helpful tips to consider when preparing for your next insurance renewal:
1. Start the Process Early
Even if it seems too soon, 120 days from the date of policy expiration is a good time to begin gathering information, aligning brokers, and building a game plan. Contact your insurance coordinator or FirstService Financial insurance professional to gauge their feedback on renewal strategy. Obtaining multiple quotes doesn’t always require multiple brokers, but starting the process early is the best way to ensure a positive outcome.
2. Set Clear Expectations for your Board of Directors
Insurance carriers are not your typical vendors and it is difficult for board members to understand that the underwriting process can be tedious and drawn out. Many carriers will only issue quotes within 30 days of the policy expiration date, which makes it difficult to schedule board meeting with insurance on the agenda. The reason for the 30 day rule is that their underwriting appetite can change dramatically if a claim occurs during the assessment period. Make your board members aware early in the process that quotes can and do come in last minute.
3. Create a Game Plan and Stick to it
Do not simply send requests to multiple brokers asking for quotes. Rely on your insurance coordinator and subject matter experts to assist with setting a game plan, gathering underwriting information, and instructing brokers on carrier assignments. Set a realistic proposal delivery date for all brokers and hold them accountable.
4. Utilize Subject Matter Experts
From Insurance Coordinators to FirstService Financial Insurance Experts, FirstService Residential equips its property managers with the internal resources to provide enhanced value to the insurance process. Utilize whomever you have at your disposal to assist with keeping brokers accountable, assigning carriers to agents, and assessing which proposals are best for your association.
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