History says companies will lack pricing discipline; however, with interest rates declining and low returns in stock market companies will need underwriting profits to attain ROE. Also, predictive models will allow companies to better segment profit pockets from loss leaders. I’d wager a cup of coffee that underwriting profits will deteriorate, but will stop short of being “wiped out completely.”
I quoted on a VACANT FRAME HOTEL. Had been vacant and uninsured for two years. Also had been condemned. Local legend says it’s haunted, too. $4,000,000 in values property, about 20,000 sq. ft.
I was getting numbers from $34,000 to $75,000 for a six month vacant package from my E&S markets, those who did not head for the nearest exit when I approached them.
Lo and behold, someone quoted the darn thing for $4800 – in Lloyds!
How can a building that has been condemned have an insurable value? You’re putting up $200 a square foot on a building that is going to be torn down? Makes no sense? What are you insuring? Theft of copper pipes? Debris Removal? Pretty good incentive for an “accidential” fire to happen – even vandalistic arson would be covered – Insurance is supposed to restore you to the same place you were before the loss – this place sounds like a dump – Being in the E&S market myself – I’d have to know where they came up with their values to justify the coverage – Appraisal of salvagable items? Including the land?
History says companies will lack pricing discipline; however, with interest rates declining and low returns in stock market companies will need underwriting profits to attain ROE. Also, predictive models will allow companies to better segment profit pockets from loss leaders. I’d wager a cup of coffee that underwriting profits will deteriorate, but will stop short of being “wiped out completely.”
I quoted on a VACANT FRAME HOTEL. Had been vacant and uninsured for two years. Also had been condemned. Local legend says it’s haunted, too. $4,000,000 in values property, about 20,000 sq. ft.
I was getting numbers from $34,000 to $75,000 for a six month vacant package from my E&S markets, those who did not head for the nearest exit when I approached them.
Lo and behold, someone quoted the darn thing for $4800 – in Lloyds!
It is a warzone out here!!!
How can a building that has been condemned have an insurable value? You’re putting up $200 a square foot on a building that is going to be torn down? Makes no sense? What are you insuring? Theft of copper pipes? Debris Removal? Pretty good incentive for an “accidential” fire to happen – even vandalistic arson would be covered – Insurance is supposed to restore you to the same place you were before the loss – this place sounds like a dump – Being in the E&S market myself – I’d have to know where they came up with their values to justify the coverage – Appraisal of salvagable items? Including the land?
The restaurant on the first floor was closing. Roomers living upstairs did not want to leave. The boro shut off the water to get them out.