Hello.
I would like to hear your advice/opinion/suggestions on my proposed business model. I am a Realtor that specializes in selling multifamily homes and apartment buildings. I'm pre-registered to take my state's (Connecticut) P&C license prep course at a local community college this Spring, and later, sit and pass the test.
Would it be possible for me to independantly broker business to my current landlord clientele as an independant insurance broker? I have a vast network of clients and have good problem solving ("sales") skills. I would not need any sort of health benefits, no base salary,etc...would just like to be a 1099 indep contractor and work on commission. I would only write business on multifamily buildings.
Has anyone ever heard of such a apartment building specialist?
Where would I start? I am willing to pay someone to train me (coach or mentor) or would be willing to take a miniscule split in order to learn.
I thank you in advance for your comments and suggestions.
Help: Multifamily Insurance Specialist?
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xenogenetic
- Insurance Journal Fan
- Posts: 4
- Joined: Mon Jan 09, 2006 2:58 am
- Location: Hartford area, CT
I am with an agency in NY. What you want to do sounds like a good idea, but to be an independent agent, not part of an agency, means that you would still have to find an agency willing to broker your accounts. Just by being an independent agent doesn't allow you access to the insurance companies writing this business.
I would first contact some agencies and see if they are willing to broker business for you. If you find one, you would then have to inquire how many markets they have for apartment buildings, etc. I know here my agency has 7 markets for apartments, but they all have their underwriting guidelines (ie. age of building, etc.). There are alos 2 of them we use that would not accept brokered business.
Good idea overall - being right there to offer the coverage as you sell these buildings. You just have to make sure you have the markets/agency available to you so that you can broker the business. Before going through your licensing process, I would make sure you could use that license.
Hope that helps some.
I would first contact some agencies and see if they are willing to broker business for you. If you find one, you would then have to inquire how many markets they have for apartment buildings, etc. I know here my agency has 7 markets for apartments, but they all have their underwriting guidelines (ie. age of building, etc.). There are alos 2 of them we use that would not accept brokered business.
Good idea overall - being right there to offer the coverage as you sell these buildings. You just have to make sure you have the markets/agency available to you so that you can broker the business. Before going through your licensing process, I would make sure you could use that license.
Hope that helps some.
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xenogenetic
- Insurance Journal Fan
- Posts: 4
- Joined: Mon Jan 09, 2006 2:58 am
- Location: Hartford area, CT
Thanks, WildAngel. More questions, if you have some time.
WildAngel,
Thanks so much for the advice! I now have an action plan and am grateful that you took the time to write and help me. I'll be calling around to different agencies soon to find out if they would be receptive to brokering business.
I'm assuming that "markets" means insurers that write policies on apartment buildings, correct?
What can I do right now (aside from calling agencies re: apartment markets and studying to pass my P&C test) that would benefit me in learning more about insuring apartment buildings? Is there any type of association in existence that focuses on providing some type of training materials/discussion forum focusing on the niche of apartment buildings? Trade magazine? How about other discussion forums that you've found helpful regarding P&C in general (does not have to be with an apartment building slant)? I've found out that the more I prepared myself before actually getting licensed for my other client service offerings (real estate + loans) the faster I started producing...so I'm trying to do all that I can.
Just out of curiosity, how are you via your agency allowed to use those 2 markets that don't allow "brokered business"? By definition, are you not a broker when you work for an independent insurance agency (which I am assuming that you do)? Is there another type of insurance agent designation out there?
Judging from other postings here on InsuranceJournal.com I'm getting the impression that insurance for apartment buildings is getting harder and harder to get with many past insurers getting out of the apartment building insurance business, is that true?
Lastly, since I'm always trying to plan things two steps ahead, how would insurers that actively insure apartment buildings view an insurance agent like myself who has aspirations of starting an agency of my own? Do they offer to work with you depending on the total value of the policies that you have already brought them, or do they stipulate that "ok, we'll work with you but you have to bring us XYZ amount of business within the first year of business or otherwise we'll have to drop you"? Or, do they require a certain amount of business across all type of insurance in order to prove yourself to them?
Once again, thank you kindly, WildAngel (and in advance for anyone else that would like to chime in) for responding to my newbie questions. It's a tremendous help to have a forum like this to turn to to investigate career paths/business planning.
Warmest Regards,
-Adam
Thanks so much for the advice! I now have an action plan and am grateful that you took the time to write and help me. I'll be calling around to different agencies soon to find out if they would be receptive to brokering business.
I'm assuming that "markets" means insurers that write policies on apartment buildings, correct?
What can I do right now (aside from calling agencies re: apartment markets and studying to pass my P&C test) that would benefit me in learning more about insuring apartment buildings? Is there any type of association in existence that focuses on providing some type of training materials/discussion forum focusing on the niche of apartment buildings? Trade magazine? How about other discussion forums that you've found helpful regarding P&C in general (does not have to be with an apartment building slant)? I've found out that the more I prepared myself before actually getting licensed for my other client service offerings (real estate + loans) the faster I started producing...so I'm trying to do all that I can.
Just out of curiosity, how are you via your agency allowed to use those 2 markets that don't allow "brokered business"? By definition, are you not a broker when you work for an independent insurance agency (which I am assuming that you do)? Is there another type of insurance agent designation out there?
Judging from other postings here on InsuranceJournal.com I'm getting the impression that insurance for apartment buildings is getting harder and harder to get with many past insurers getting out of the apartment building insurance business, is that true?
Lastly, since I'm always trying to plan things two steps ahead, how would insurers that actively insure apartment buildings view an insurance agent like myself who has aspirations of starting an agency of my own? Do they offer to work with you depending on the total value of the policies that you have already brought them, or do they stipulate that "ok, we'll work with you but you have to bring us XYZ amount of business within the first year of business or otherwise we'll have to drop you"? Or, do they require a certain amount of business across all type of insurance in order to prove yourself to them?
Once again, thank you kindly, WildAngel (and in advance for anyone else that would like to chime in) for responding to my newbie questions. It's a tremendous help to have a forum like this to turn to to investigate career paths/business planning.
Warmest Regards,
-Adam
You are very welcome.
"Markets" do me insurance companies - sorry.
We are and independent agency, appointed with many different insurance companies. We are not captive (which means roughly, licensed with only one company to write insurance with, without the option of being appointed with more companies ie. State Farm, Nationwide, etc.)
When I say the insurance companies won't accept brokered business, it means that another agent coming to us (like you) looking for us to write business, the company won't accept because it directly does not come from and is contolled by our agency.
Unfortunately, I can not point you in a direction for more info. My expericence comes from knowing what the companies look for and what is required to fit within their underwriting guidelines.
Basically, if this helps at all, you need to have markets in which to write the business. Some of my markets will not write buildings built before 1978 (due to lead possibilities). Others will not write if the rents are subsidized. Some will wrtie with and elevator and some won't. It really all depends on that companies guidelines. It has been getting increasingly difficult to write apartment buildings - due to property and liability losses. Slip & falls can cause a large claim as well as a kitchen fire can take out a whole building. Due to these losses, either the insurance companies can write them and like them or they are very limited in what they can write.
If you actually wanted to start an agency, at least in NY, you also have to have an agents license as well as a brokers license. Once you have established the agency you can talk to companies regarding appointments. In NY, the smaller agencies can become cluster agencies. This is where the pool together all of their business to be able to get to and keep the larger insurance companies. When you are appointed with a company, they ask for financials, etc. For a new agent starting out, you would have to find an insurance company willing to take a chance on you. We ara an establised insurance agency that has been in business over 100 years. I don't know how hard the process would be for your first appointment. Being an established agency, to get appointed to a new company, we have to provide detailed financials, and totals of our books of business with other companies. Then we promise them so much business in a year. I think the smallest insurance company we have requires $100,000 of written premium annually. Normally an insurance company wants a nice mix of business. That way, if the apartment section had a large loss ratio that year, they can balance it say with the retail side that may have a good loss ratio. It depends on the company and thei overall appetite.
I think there is alot of info you could gleen from other agents in your area, if they are willing to help.
Hope this works out for you. Good luck.
"Markets" do me insurance companies - sorry.
We are and independent agency, appointed with many different insurance companies. We are not captive (which means roughly, licensed with only one company to write insurance with, without the option of being appointed with more companies ie. State Farm, Nationwide, etc.)
When I say the insurance companies won't accept brokered business, it means that another agent coming to us (like you) looking for us to write business, the company won't accept because it directly does not come from and is contolled by our agency.
Unfortunately, I can not point you in a direction for more info. My expericence comes from knowing what the companies look for and what is required to fit within their underwriting guidelines.
Basically, if this helps at all, you need to have markets in which to write the business. Some of my markets will not write buildings built before 1978 (due to lead possibilities). Others will not write if the rents are subsidized. Some will wrtie with and elevator and some won't. It really all depends on that companies guidelines. It has been getting increasingly difficult to write apartment buildings - due to property and liability losses. Slip & falls can cause a large claim as well as a kitchen fire can take out a whole building. Due to these losses, either the insurance companies can write them and like them or they are very limited in what they can write.
If you actually wanted to start an agency, at least in NY, you also have to have an agents license as well as a brokers license. Once you have established the agency you can talk to companies regarding appointments. In NY, the smaller agencies can become cluster agencies. This is where the pool together all of their business to be able to get to and keep the larger insurance companies. When you are appointed with a company, they ask for financials, etc. For a new agent starting out, you would have to find an insurance company willing to take a chance on you. We ara an establised insurance agency that has been in business over 100 years. I don't know how hard the process would be for your first appointment. Being an established agency, to get appointed to a new company, we have to provide detailed financials, and totals of our books of business with other companies. Then we promise them so much business in a year. I think the smallest insurance company we have requires $100,000 of written premium annually. Normally an insurance company wants a nice mix of business. That way, if the apartment section had a large loss ratio that year, they can balance it say with the retail side that may have a good loss ratio. It depends on the company and thei overall appetite.
I think there is alot of info you could gleen from other agents in your area, if they are willing to help.
Hope this works out for you. Good luck.
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xenogenetic
- Insurance Journal Fan
- Posts: 4
- Joined: Mon Jan 09, 2006 2:58 am
- Location: Hartford area, CT
Thanks.
Thanks again, WildAngel. You're a fountain of information.
One last question, would the principal owner of an agency (the one I am assuming I will be interviewing with) know how many markets they have that will write policies on apartment buildings? Let's say that the owner/HR manager of a large (i.e. 30+ agent office) agency does not personally deal with apartment building insurers...could it be that that agency might have agents/insurers that do apartment buildings and not even know it or be unable to give an exact number? If the agency doesn't, how hard would it be for me to join that agency and start establishing markets on my own using the large agency's size for credibililty?
Thanks so much for your time and sorry for being such a pest! :- )
Warmest Regards,
-Adam
One last question, would the principal owner of an agency (the one I am assuming I will be interviewing with) know how many markets they have that will write policies on apartment buildings? Let's say that the owner/HR manager of a large (i.e. 30+ agent office) agency does not personally deal with apartment building insurers...could it be that that agency might have agents/insurers that do apartment buildings and not even know it or be unable to give an exact number? If the agency doesn't, how hard would it be for me to join that agency and start establishing markets on my own using the large agency's size for credibililty?
Thanks so much for your time and sorry for being such a pest! :- )
Warmest Regards,
-Adam
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Crackeratheart
- Insurance Journal Fan
- Posts: 1
- Joined: Fri Jan 20, 2006 4:50 pm
- Location: Georgia
Personal Developement
Two suggestions on expanding your knowledge.
One is get the agency to send you to a company sponsored school like the one The Harford puts on.
Two, join an agency that is a member of the Independent Agents and Brokers of America and use their Virtual University information source. It is a members only benefit.
In Georgia, you must have at least one direct property and casualty contract and have the ability to have more in order to join the association. You will never get that one contract not knowing the business.
You see, an agent has tremendous authority to bind contracts on behalf of the insurance company. If you do not know what you are doing you can really really cost them a lot of money. They want proof of how you handle your authority before they will grant you the resposibility.
It is a great business. Good luck.
Crackeratheart
One is get the agency to send you to a company sponsored school like the one The Harford puts on.
Two, join an agency that is a member of the Independent Agents and Brokers of America and use their Virtual University information source. It is a members only benefit.
In Georgia, you must have at least one direct property and casualty contract and have the ability to have more in order to join the association. You will never get that one contract not knowing the business.
You see, an agent has tremendous authority to bind contracts on behalf of the insurance company. If you do not know what you are doing you can really really cost them a lot of money. They want proof of how you handle your authority before they will grant you the resposibility.
It is a great business. Good luck.
Crackeratheart
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xenogenetic
- Insurance Journal Fan
- Posts: 4
- Joined: Mon Jan 09, 2006 2:58 am
- Location: Hartford area, CT
Thanks.
Thank you so much for the advice, Crackeratheart.
I'll be looking for those things with regards to training. I'm fortunate to be able to attend my pre-licensing class through the one offered by the Indep. Ins. Agents local office here in CT. I think I'll ask my instructor which local agencies that he recommends in this area that might meet my needs.
The Hartford is very close to me as well here in CT.
I'm definitely going to look to an affiliated agency and then look for that type of training.
Thanks again.
-Adam
I'll be looking for those things with regards to training. I'm fortunate to be able to attend my pre-licensing class through the one offered by the Indep. Ins. Agents local office here in CT. I think I'll ask my instructor which local agencies that he recommends in this area that might meet my needs.
The Hartford is very close to me as well here in CT.
I'm definitely going to look to an affiliated agency and then look for that type of training.
Thanks again.
-Adam
Help with Apartment Insurance
Adam:
I have an Agency in Mass but I have a non-residence licence in Ct and write many policies there. I represent two major markets that love to write apartment buildings and I have several apartment buildings over the years myself.
I'd be happy to talk over the phone or in person about this line of business with you.
Send me an e-mail if you are interested.
Steve
sjoyce@welshparker.com
I have an Agency in Mass but I have a non-residence licence in Ct and write many policies there. I represent two major markets that love to write apartment buildings and I have several apartment buildings over the years myself.
I'd be happy to talk over the phone or in person about this line of business with you.
Send me an e-mail if you are interested.
Steve
sjoyce@welshparker.com
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