Navigating Insurance in Today's Market: Insights from Lotfey Dennett Insurance Brokers
During our September Company-Wide meeting, we held a Q&A session with Evan Wood and Kristen Poussard of Lotfey Dennett Insurance Brokers. They provided our agents with valuable insights into navigating the complexities of the industry and how we can best serve our clients.
What recent changes in the insurance industry are affecting property closings?
The shift to a hard market has tightened insurance underwriting guidelines, increased premiums, and made property insurability more challenging due to the rising cost of claims. This requires more information and time to insure properties effectively. Working with an informed agent can keep you ahead of the curve and ensure you have the time to accomplish insurance needs.
What are common issues flagged by insurance companies?
Issues often relate to property conditions such as roof wear and delayed general maintenance. Insurers are particularly cautious about roofs, preferring newer ones to reduce risk potential.
How can agents determine the necessity of flood insurance?
Updated flood maps are available on Maine.gov, which can help determine if parts of a property are in a flood zone. This information is crucial even if the building itself isn't directly at risk, as lenders may still require flood insurance. An agent can help you pull necessary flood maps and interpret what they mean for you.
What solutions exist for properties that face challenges in qualifying for flood insurance?
All properties qualify for flood insurance. Options include private flood insurance for inland properties and the National Flood Program for coastal properties. Policies can always be tailored to meet lender requirements. This is another key step, where agents are able to keep you informed of potential costs, well before the insurance process starts.
What should sellers do to prevent unexpected insurance issues?
Sellers should contact insurance providers early, particularly after obtaining a building inspection, as some insurers require this before underwriting a property. Communicating early with insurance agencies can prevent last-minute closing issues. Agents can help with these communications and understanding the intricacies of each step.
If you have questions about buying, selling, or what the insurance process looks like for you, reach out to a Portsider!
Footer Social Links