More than half of Independent Insurance Agents of Texas members report that limitations on new HO-B policies is having a “very significant effect” on their business. The “very significant effect” option was the most serious of five offered in a recent survey conducted by the IIAT.
Members are quickly losing their ability to meet customers’ needs for new HO-B coverage due to company restrictions in reaction to skyrocketing mold claims, says the IIAT in a statement published on their Website, iiat.org.
A survey sent to IIAT’s 1,500 member agencies Sept. 28 shows 57 percent reported a “very significant effect.” Renewal of HO-B policies, however, is not seen as a major problem yet-only 36 percent of the survey respondents said they were seeing a”significant effect” or a “very significant effect” on HO-B renewals from companies’ underwriting changes.
Thiryt-nine percent of agents responding indicated they are resorting to the HO-A option to meet customers’ needs for new coverage. Forty percent are using surplus lines markets to purchase an HO-B with mold coverage excluded. One-fourth are simply turning away new business, according to the IIAT. A detailed report is available on the association’s website.
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