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Case Studies

 

Premium Reduction Service Increases Industrial Property’s Value By $71,300

by Susieon April 26, 2017 in Case Studies tagged , , with no comments

Our client, a large commercial real estate company, owned a single structure multi-tenant industrial building. The insured was maintaining one NFIP policy that was coming up for renewal. The lender’s flood zone determinations showed that the building was in a Special Flood Hazard Area (SFHA: zones beginning with the letter A or V). The client was concerned over the rapidly increasing flood insurance premium and was looking for ways to reduce it.

The Solution

Our industry-leading flood team quickly determined that there were more favorable rates available for this building. We obtained elevation certificate for this building that  enabled us to re-rate the flood policy using the lower cost rate structure available through the NFIP. By leveraging our flood expertise, we delivered substantial future savings and increased property values.

The Results

  • Reduced total annual NFIP costs by $5,000 (86%);
  • Increased property value by $71,300, based on the application of a 7% capitalization rate;

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Flood Zone Correction Reduces Multifamily Property Annual NFIP Costs by $16,750

by Susieon April 24, 2017 in Case Studies tagged , , with no comments

Our client, a retail insurance agency, had an insured with a portfolio of multifamily properties in Florida. The insured was maintaining NFIP flood insurance policies on 21 buildings. 20 of the buildings were located in Special Flood Hazard Areas (SFHA: flood zones beginning with letter A or V). The client was concerned over the rapidly increasing flood insurance premiums and was looking for ways to reduce them.

The Solution

We performed a thorough flood risk analysis and found that 18 buildings were not at high risk of flooding during 100-year flood events. Therefore, they had been wrongly included in the SFHA. We worked with FEMA to successfully remove these properties from the high-risk flood zones and to reclassify them into the correct low-risk flood zones, where they should have been in the first place.

The Results

  • 85% of the buildings were removed from the SFHA (18 out of 21);
  • $16,750 reduction in annual NFIP costs;
  • $240,000 increase in property values, based on the application of a 7% capitalization rate.

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A Regional Retail Chain Saves 50% on Annual NFIP Costs

by Susieon April 18, 2017 in Case Studies tagged , , with no comments

Our client, a national insurance agency, asked us to help them find a way to reduce the NFIP flood insurance premiums for one of their clients – a regional retail chain with five stores located in Special Flood Hazard Areas (SFHA: flood zones beginning with letter A or V). The NFIP flood insurance premiums totaled $39,475 for the 5 NFIP policies. The company has maintained NFIP flood insurance on these five stores for many years. However, as the NFIP rates were rapidly increasing year by year, the insured was looking for ways to reduce their flood insurance costs.

The Solution

Our industry-leading flood team quickly determined that there were more favorable rates available for these buildings. This enabled us to re-rate the flood policies using the lower cost rate structure available through the NFIP. As a result, our Premium Reduction Service reduced annual flood insurance premiums, delivered substantial future savings, and captured a large flood insurance refund.

The Results

Our Premium Reduction Service delivered following valuable benefits to the client:

  • Reduced annual NFIP flood premiums by almost $20,000;
  • Delivered 50% in annual savings;
  • Procured a $80,000 flood insurance refund for the last five years;

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A Multifamily Company Saves $135,000 on Annual NFIP Costs

by Susieon January 30, 2017 in Case Studies tagged , , , , with no comments

A retail agent had an insured with a portfolio of multifamily properties. The insured was maintaining NFIP flood insurance policies on 42 buildings at 4 locations. The lender’s flood zone determinations showed that the buildings were in Special Flood Hazard Areas (SFHA: zones beginning with the letter A). The client was concerned over the high flood insurance premiums and was looking for ways to reduce them. The retail agent was looking for savings opportunities and asked us for help.

THE SOLUTION
We completed a comprehensive flood risk analysis and determined that 7 buildings on two properties were not at high risk of flooding during 100-year storms. These 7 buildings had been incorrectly classified in the SFHA. We worked with FEMA to successfully remove all 7 buildings from the high-risk flood zone and to reclassify them into a low-risk flood zone, where they should have been in the first place. By leveraging our flood zone correction expertise and capabilities, we delivered five valuable benefits to the insured: (1) eliminated lender’s flood insurance requirement, (2) maximized the flood coverage afforded under the insured’s master property insurance policy, (3) delivered substantial future savings, (4) captured a large insurance refund, and (5) increased the value of the property.

In addition, through the flood risk analysis process we were able to identify more favorable rating options for buildings on two other properties. This allowed us to deliver three valuable benefits: (1) future savings by greatly reducing the annual NFIP premiums, (2) a large insurance refund, and (3) an increase to property values.

THE RESULTS
• Successfully removed 7 buildings from the SFHA;
• Reduced total annual NFIP costs by $135,191 (71%);
• Procured a $94,674 flood insurance refund;
• Increased property values by $1.9 million, based on the application of a 7% capitalization rate.

Click here to download this case study in .pdf.

 

Private Market Flood Insurance Win – Office Properties

by Susieon November 11, 2016 in Case Studies tagged , , , with no comments

A retail agent has an insured with a large portfolio of office properties. The insured was maintaining NFIP flood insurance policies on 21 buildings at 17 locations, because the buildings are located in a Special Flood Hazard Area (SFHA: zones beginning with the letter A). The NFIP flood insurance did not satisfy the insured’s needs due to having multiple policies, scattered renewal dates, actual cash value (ACV) building coverage and no business income coverage. The insured’s master property insurance policy includes flood coverage with an SFHA flood deductible of $250,000 per location per occurrence for building, contents and business interruption combined. The insured asked the retail agent to find a better solution in the private flood market and the retail agent asked us for help.

The Solution

We were able to leverage our strong relationships with private flood insurance markets to develop a custom solution for the client. The solution was one private market flood insurance policy to replace all 21 NFIP flood insurance policies at the 17 SFHA locations, which has a per location per occurrence limit that fits perfectly with the insured’s SFHA flood deductible. This private market flood policy will renew concurrent with the insured’s master property insurance policy, provide a per location per occurrence limit of $250,000 for building, contents and business interruption combined, provide replacement cost value (RCV) building coverage and business income coverage. This custom solution reduces the administrative burden of managing primary layer flood insurance, provides far better coverage and satisfies all of the needs of the insured.

The Benefits

  • 1 master policy instead of 21 NFIP policies;
  • 1 renewal date instead of 17 different NFIP renewal dates;
  • A per occurrence limit that was tailored to fit perfectly with the insured’s master property insurance program’s flood deductible;
  • Replacement cost value (RCV) building coverage instead of NFIP’s actual cash value (ACV) building coverage;
  • Includes business interruption coverage instead of NFIP excluding business interruption coverage;
  • Insured was able to choose a renewal date that is concurrent with the insured’s property insurance program renewal date;
  • The premium may renew flat or decrease instead of NFIP’s guaranteed increase every year;
  • Completely eliminates any potential for a coverage gap.

Click here to download this case study in .pdf.

Contact us today to take advantage of our flood insurance expertise and capabilities to offer winning flood insurance solutions to your clients.

 

Private Market Flood Program Delivers a Winning Solution to a National Outlet Store Company

by Susieon February 29, 2016 in Case Studies tagged , with no comments

Our client, a national outlet store owner and operator, was looking for a private market flood insurance solution that would satisfy their needs for primary layer flood coverage better than NFIP flood insurance. Our client has outlet stores in 28 buildings at 19 locations that are in FEMA-designated Special Flood Hazard Areas (SFHA: flood zones beginning with letters A and V). NFIP flood insurance did not satisfy their needs due to having multiple policies, scattered renewal dates, limits that would not adequately cover their merchandise and improvements and betterments, and the 10% annual cost increase that is expected for many years to come.

We used our exclusive private market flood insurance program to deliver a solution that was customized to their specific needs. Our winning solution simplifies the administration of primary layer flood insurance, reduces their flood insurance costs, delivers limits and coverage terms that perfectly match their needs to eliminate gaps in coverage.

Download this case study (.pdf) to view the comparison of the benefits of our program compared to NFIP flood insurance.

Do you have commercial lines clients who fit this criteria? If so, call us today to take advantage of our private market flood program to offer winning flood insurance solutions to your clients.

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Premium Reduction Service Increases Self-Storage Property Value By More Than $625,000

by Susieon February 1, 2016 in Case Studies tagged , with no comments

One of the nation’s leading self-storage companies owns a property in Texas with 8 buildings, where the NFIP flood insurance premiums were $52,014 for the 8 NFIP policies. The client desperately sought a solution that would decrease its flood insurance costs while allowing it to maintain the same coverage in order to satisfy its lender’s flood insurance requirement.

The Solution

Our industry-leading flood team quickly determined that there were more favorable rates available for these buildings. This enabled us to re-rate the flood policies using the lower cost rate structure available through the NFIP. As a result, our Premium Reduction Service captured a large insurance refund, delivered substantial future savings, and increased the value of this property.

The Results

Our Premium Reduction Service delivered following valuable benefits:

  • Reduced annual flood premiums by $43,938 (84%).
  • Increased property value by more than $625,000 by capitalizing the annual savings at a 7% capitalization rate.
  • Procured a $43,938 insurance refund.

Download this case study in .pdf.

Contact us today to learn how our Premium Reduction Service can deliver valuable benefits to your clients.

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Flood Zone Correction Saves Outlet Mall $50,158 on Annual NFIP Premiums

by Susieon January 19, 2016 in Case Studies tagged , , with no comments

The client is a real estate development company that holds a portfolio of internationally-recognized residential and commercial properties in the United States and Canada. Last year, the client built an outlet mall with 23 buildings. Prior to beginning construction, the construction lender pulled a flood zone determination on the main address of the property, which showed a low risk flood zone. Therefore, the construction lender did not require NFIP flood insurance. As they finished construction and went to secure permanent financing, the lender pulled a flood zone determination showing that 18 of the buildings were located within a FEMA-designated Special Flood Hazard Area (SFHA: AE Zone). In accordance with Federal Law, the lender required them to buy NFIP flood insurance on the 18 buildings, which cost approximately $50,000. The client did not factor into their projections the cost of NFIP flood insurance and were concerned they would have increase the CAM charges paid by all of their tenants.

The Solution

We did a thorough flood risk analysis and found that all 18 buildings were constructed in a flood safe manner according to FEMA’s rules and regulations, which means the buildings should not suffer damage during a 100-year flood event. We worked with FEMA to successfully remove all 18 buildings from the high-risk flood zone and to reclassify them into the appropriate low-risk flood zone.

The Results

Our Flood Zone Correction service delivered following valuable benefits:

  • Successfully removed all 18 buildings from the SFHA;
  • Eliminated the lender’s flood insurance requirement;
  • Delivered $50,158 of annual savings;
  • Prevented an increase to CAM charges passed through to tenants.

Download this Case Study in .pdf

Do your clients have properties in SFHA (flood zones beginning with the letters A and V)? If so, contact us today to learn how our Flood Zone Correction service can deliver valuable benefits to your clients.

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Premium Reduction Service Helps Insurance Agency Win a New All-Lines Property and Casualty Account

by Susieon December 28, 2015 in Case Studies tagged , with no comments

Our client, a leading regional insurance agency, was trying to win a new all lines property and casualty account by taking it over with a mid-term broker of record (BOR) letter. Their prospect was a large condominium association, where the NFIP flood insurance premium on the 48 buildings was approximately $160,000. This was 45% of the condominium association’s total insurance budget of $350,000. While the agent had demonstrated to the association that he could reduce their total insurance budget by about 10% by saving money on a few lines of coverage, the association did not think 10% was enough to fire the incumbent broker.

The Solution

We used our research-driven underwriting process to procure data that enabled us to re-rate the flood policies using an alternative rate structure available through the NFIP. As a result, we were able to reduce the annual NFIP premium by approximately $55,000 (34%) and reduce total insurance expenses by an additional 15%. Combined with the agent’s other ideas for reducing insurance costs, our Premium Reduction Service helped the agent get the BOR letter and win the new account, by helping the agent deliver total insurance savings of 25%.

The Results

  • Reduced annual NFIP flood premiums by $55,000 (34%).
  • Reduced total insurance expenses by an additional 15%.
  • Helped the agent to get the BOR letter and win a new account.

Download this Case Study (.pdf)

Contact us today to learn how we can help you win new business!

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Premium Reduction Service Increases a Multifamily Property’s Value by $2.4 Million

by Susieon December 9, 2015 in Case Studies tagged , with no comments

The Challenge

One of the nation’s leading multifamily companies owned a large apartment complex with 29 buildings, where the NFIP flood insurance premiums were $222,434 for 29 flood insurance policies. The high cost of flood insurance resulted in the property operating with a negative cash flow for several years, which substantially decreased the value of the property. The client desperately sought a solution that would decrease its flood insurance costs while allowing it to maintain the same coverage in order to satisfy its lender’s flood insurance requirement.

The Solution

We used our research-driven underwriting process to procure data that enabled us to re-rate the flood policies using an alternative rate structure available through the NFIP. As a result, our Premium Reduction Service captured a large insurance refund, delivered substantial future savings, and increased property values.

The Results

  • Reduced annual flood premiums by $166,825 (75%) while maintaining the same exact coverage.
  • Increased property value by $2.4 million by capitalizing the annual savings at a 7% capitalization rate.
  • Procured a $295,280 insurance refund.

Download this Case Study (.pdf)

Contact us today to learn how we can help you increase property values.

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