In the good old days, clients rarely had difficulty with homeowners insurance. That has changed. Now, properties with seemingly low risk profiles are being non-renewed. Purchasers are having trouble getting properties covered pre-closing. Fortunately, LandVest clients are supported by our network of experts.
Here are five top strategies for getting and staying insured.
1. Consolidate risk management with one great insurance agent:
In the past, clients often added a different agent each time they bought a property. “This disaggregated approach often results in fewer options, inferior coverage and more expensive overall insurance costs,” advises Barbara Targum, President of Dwight Rudd Insurance, a private insurance brokerage in Boston. “Just as your financial advisor should understand your complete picture to give the best advice, so should your insurance agent. A great agent has the knowledge and experience to structure your insurance program to make sure your needs are being met.”
2. Sweat the small things to protect from big problems:
- Avoid making small claims. “We all learned that it is problematic to make small scratch and dent auto claims; the same holds for homeowner’s policies,” says TJ Reardon of HUB International’s Private Client group. “Avoid making claims for small problems so that you have protection against the big stuff. Frequent claims (especially those that could have been prevented) are more concerning than one large claim that a client couldn’t have avoided with mitigation or routine maintenance.”
- An ounce of prevention: Marie Matterazzo of Intercontinental Brokers emphasizes, “Water claims are frequent and damaging. Small fixes prevent big problem. Get an automatic shutoff for your water supply and replace plastic toilets fittings with metal.”
3. Look for ways to reduce risk:
Cut down trees over the house, reduce flammable brush, and reinforce seawalls. Each property’s risk factors can be managed proactively. Jeff Kaplan of Risk-Strategies is working at a community-wide level with clients in Montana. Watch this space for more news on Jeff’s creative initiatives.
4. Phone a friend – bring in the experts:
LandVest’s Jane Chase and Jim Nadeau recently enlisted the help of Kenneth Wood of Attar Engineering to help a buyer understand the climate risk of a waterfront property. With a detailed look at elevations and flood mapping and a thorough structural review of existing infrastructure, as well as a forward-looking plan for climate resilience, homeowners can enjoy great waterfront locations while managing risk.
5. Don’t worry alone:
Personal decisions about risk are often the most challenging, as we are all better at advising our clients than we are at making our own decisions. Share the problems with a team you trust. Making the process collaborative allows you to sleep better at night.
Everyone is faced with a heightened risk environment, but we can match you with professionals so you can enjoy your special places. Stay tuned on the LandVest blog for more on risk management, as we continue to discuss this important theme in the coming months.
Got questions? Want to be connected with great resources? Contact Ruth Kennedy Sudduth at 617-357-0455 or rkennedy@landvest.com.
