AOAO HURRICANES & FLOODS
Tips For Securing AOAO Coverage
BY : BRIAN FUJIKANE ATLAS INSURANCE
If you are responsible for procuring insurance for your AOAO , you may be tempted to just choose the plan with the lowest-priced insurance premium . From a fiduciary perspective , this may be best , but we want to educate you how to secure a policy that provides not just optimal pricing but also proper coverage and maximum support .
There are many factors that drive the cost of your property insurance . One factor is the construction type of your building . Wood-framed buildings are more susceptible to fire and wind damage , so they have the highest rates . On the other side of the spectrum , if you have a newer building that is fire-resistive , windresistive , and sprinklered , you may fall into a “ Highly Protected Risk ” ( HPR ) category and receive the lowest rates available .
After the construction type is determined , other factors are also taken into consideration , but the biggest determinant of risk is always loss history . You can have a building that is considered an HPR , but if your loss history is bad , your rates will be too . In many ways , it ’ s like applying for a loan , because to a certain extent , it doesn ’ t matter who your bank is if your credit score is bad . In the insurance market , some agencies will help you review losses , and some may have specialized resources to help stabilize your losses and close out your claims . If your losses are high , consider what agency will provide the best service for your association and select an agent that has the time and resources you need
to best move forward .
If your losses are mounting , the carrier may choose not to renew your policy or even cancel mid-term . The question then becomes , who is keeping your best interest at heart and advocating for you ? It ’ s important to realize that there is a difference between carrier-provided and agency-provided services . A large agency will have an independent claims manager that can be an advocate on your behalf in settling your claim without the potential bias of an insurance carrier . Your claims manager can go a long way in assisting in completing paperwork , representing your interests and reducing stress too !
When it comes to AOAO ’ s in Hawaii , there are only five major insurance carriers : Allianz , Dongbu , First Insurance Company of Hawaii ( FICOH ), Lexington , and Lloyd ’ s . However , it ’ s important to realize that not all agencies have access to all carriers , so be sure to choose an agency that has a broad selection of options to best represent your association .
In a competitive bid situation , your agent must provide the carrier with your loss history from the previous five years to obtain pricing . If your current agent is hesitant to share this information , they are effectively blocking the market from competitors . While it may look like your agent is more capable than others in this situation , in reality , your agent may have simply locked out their opponents from obtaining a competitive bid .
To avoid this problem , choose the best two agents that specialize in AOAO and ensure that they work with a range of different carriers . We advise working with no more than two agents ; the situation can quickly become unwieldy in comparing prices , limits , deductibles and coverage details over multiple policies . It can quickly become overwhelming to compare three policies from three different agencies with three different carriers .
Obtaining the optimal price involves many factors such as construction type , previous loss history , and choosing the right agent . With the right guidance , we believe you will find the best insurance program that best fits your AOAO . The dedicated Atlas AOAO team is here to answer any questions for you , even if you ’ re not a current client . Please call us at 808-628- 5320 . +
Brian Fujikane commands over 15 years of sales & account management experience , which has been instrumental in his ability to develop relationships with his clients and allows him to gain a deeper understanding of his client ’ s needs . Coming up on 3 years at Atlas Insurance , Brian specializes in condominiums as an AOAO Insurance consultant . He oversees all aspects of insurance for his clients , including : obtaining robust insurance quotes , administering claims , and determining coverage to best fit each client ’ s needs .
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