The RC Battle...Big LRO Building. Need Help

[insurance1822]

Need help. I have an insured w/ a 50% occupied office building LRO. It was built in 1985, is about 60k sq ft & is in great condition. It's currently in E&S and I'm doing his renewal apps.

He only holds 2mm in debt on the building & of course...only wants it insured to 2mm even though the RC is about 5mm. Questions..

1.) Is it unreasonable to ask the E&S wholesaler for NO COINSURANCE and just under insure it for a fee so he can get RC? (on last years quote, they gave this option for about 3k extra.)

2.) Should I just submit a request for agreed value?

3.) How is agreed value different then RC & why wouldn't everybody just do agreed value?

 

[myfakename]

So when he has it paid off is he not going to insure the property at all?

 

[AZDave]

I would just ask him what portion of his building does he want to insure.

 

[Placementkid]

I just placed a 350k sq ft. vacant building with my excess market for well under RC. Granted, my E&S wholesale UW went to inspect the property with me so that he could ask his carrier for a favor, but it can be done.

Is the 2MM that he owes, what he paid for it?

I could see them giving him what he paid + reno's, anything more than that and they might as well send a matchbook out with the policy once they write it.

We also negotiated a 10k water damage deductible, since there were some skylights blown out.

I would make a phone call, let your UW know what you've got and ask them the best way to write it.

 

[nyc2phi]

Why is it on E&S ? Can you move it to an admitted preferred carrier?

2MM on a 61K sqft building in our area wouldn't nearly any of the building.

 

[Placementkid]

Why is it on E&S ? Can you move it to an admitted preferred carrier?

2MM on a 61K sqft building in our area wouldn't nearly any of the building.

nm, I see this was meant for the original author.

I'm guess that due to the 50% vacancy, that's why it's E&S.

 

[insurance1822]

yes because it's vacant. he bought it distressed & rehabbed it.