Twice this week, a current/prospective client has contacted me to tell me that State Farm has sent a Non-renewal Notice for two separate apartment building risks. I have loss runs - they are absolutely clean. One building just had a new roof installed. I have toured the buildings - beautiful, sprinkler systems, in a good neighborhood. Nothing has changed for these properties during the policy term, so that leads me to believe that State Farm is re-examining their books.
Is anyone else seeing State Farm or any of the other captives get out of the apartment/dwelling market? Any State Farm folks on here care to refute this rumor?
I am a producer/broker for a large, regional agency, and the apartment market is my bread 'n butter. State Farm and American Family always seem to be competitive, but much less so lately. Time to hit the phones even harder!
State Farm: Getting out of Dwelling Risks?
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jimmyr1978
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Re: State Farm: Getting out of Dwelling Risks?
Well, one thing has changed from last year to this year. The Property is now one year older.. for many companies this could mean the difference between renewal and non-renewal.. Although I am not sure how State Farm works but I am sure that this could easily disqualify a potential/current client. There are a number of variables, that could have caused State Farm to cancel said dwelling..
JD
JD
Re: State Farm: Getting out of Dwelling Risks?
In What State is this going on? Have not heard of this practice in Ill.
Only thing making head lines here is Gov Rod, leader of the most Crooked State in the nation!
Only thing making head lines here is Gov Rod, leader of the most Crooked State in the nation!
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jimmyr1978
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Re: State Farm: Getting out of Dwelling Risks?
I spoke with a State Farm guy here and got my answer. They have a new inspector in my area, who, unlike the past inspector, may be doing his/her job and actually looks at these properties! The State Farms folks are up in arms about it, as I guess going "by the book" has resulted in quite a few loss control recommendations that are forcing their clients to look elsewhere. The non-compliance is creating the non-renewal notices.
That said, it sometimes amazes me what some of the captive agents can slip through, at least in the habitation market (apartments/condo complexes). Our carriers always inspect new accounts, and then once every 3 years after that. Recently, one of my new accounts told me his previous carrier, American Family, hadn't inspected his properties in 11 years. And that was for several hundred apartment units!
That said, it sometimes amazes me what some of the captive agents can slip through, at least in the habitation market (apartments/condo complexes). Our carriers always inspect new accounts, and then once every 3 years after that. Recently, one of my new accounts told me his previous carrier, American Family, hadn't inspected his properties in 11 years. And that was for several hundred apartment units!