The KM Insurance Real Estate Coverage Guide
Part 4: Process for Purchase
By Parker Cox
Disclaimer – The information contained in this writing is not guaranteed to be accurate. The information provided is general in nature, broad in scope, attributed solely to its individual author’s personal understanding, and cannot be relied upon to substitute for specialized consultation or legal advice pertaining to any particular situation or type of situation. We urge you to consult your own agents and attorneys in determining what is best for your particular needs and interests.
When working with an agent to get insurance (especially an independent agent), getting a policy bound is more complicated than most people understand.
First, your agent will gather generalized information to the best of their knowledge (and yours) to get access to rates for certain levels of coverage. This can be simple in many cases and quite difficult in others.
Depending on how common the risk is, the agent may be able to quote “in-house” and will know exactly what to ask and can process the information immediately to get you a quote.
In more specialized circumstances, or when a broker is involved, it can be harder to find the best carriers, particularly with varying information requirements and accessibility, so it can take multiple days to get the applications submitted.
From there it typically it takes between 3 and 10 business days to get an underwriter-approved quote ready to be bound. And in many cases, the underwriter may require further information that will push the process out further.
For unique coverage, it is rarely easy to determine the exact information necessary, gather it, and get the best quote; particularly with the whims of underwriters at different companies being highly variable and difficult. However, it is almost always worth the time. Prepare for a lengthy process.
24 hrs-3 weeks, depending on carriers and coverages is typical. Plan on at least a two-week process; for a unique project, play it safe and plan on a month.
Find a good agent, build a good relationship by including him or her in your business and projects so they can learn about and understand what you are doing to find the best coverage for your needs. It is important that they can access the brokers and carriers that can provide the protection you require. Most importantly, make sure you’ve found someone who will bend over backward for you every single day and jump through hoops of fire in a pinch. At KM Insurance, we’re here to do just that. We know REI. Give us a callat (619) 667-2880, and we’ll get you covered.