Many of my clients still believe they should get as many bids as possible from insurance agents for their flood and wind coverage. During my site visits and inspections I hear this discussion over and over again. Therefore it is time to set the record straight and explain how the “bid process” really works.
Here in Florida we have a limited market for both, wind and flood insurance. When you call three agents today and submit the data for your association to them at the very same time they will submit the application to the same market. The one with the quickest computer and the quickest fingers will lock in the rate and with that lock out the other two.
With that move you possibly lock out the one or two agents who could have given you better service and/or a better bundle of overall insurance policies and much more.
What you should do, instead of bidding out your insurance needs, is the following:
Talk to your management, your insurance appraiser, and other associations and inquire about good insurance agencies. Invite at least three agents to come to your association to review your existing insurance portfolio of Wind, Flood, Liability, D&O, Glass, Umbrella, Ordinance of Law, and Workers Comp (if any).
And as you would for your private insurance services, you should try bundling the required policies for your association in the same way.
A good insurance agent will visit your building and will discuss in detail your existing insurance policy with you. He/she might make suggestions, which could save you money; but he/she might also discover discrepancies and recommend a new valuation or an ISO inspection. Due diligence is the key word in this process and you will recognize easily which agent is the one who is the most thorough.
The agent who provides you with the best bundle of discounts, services and trust is the agent you should chose and who you should contract with as your “agent of record.” And only this agent then will be authorized to bid out your insurance applications.
If you are in need of a recommendation for an insurance agent, please feel free to call or email and I will provide you with a list of my trusted partners.
