Recommended Phoenix-area Insurance Agencies

[James McCreary]

Hello everyone,

After some research, I couldn't find much info on recommendations for commercial insurance providers. I am working on (LOI/PSA stage) for two properties in the Phoenix MSA. Property #1 is 11 units, Property #2 is a 100+ unit repurposement deal.

I have two specific questions:
1. Would you recommend going through an insurance broker? Or just contact agencies directly?
2. Would you have any recommended insurance brokers and insurance agencies that cover the Phoenix area?

I have two agencies on my list, but I'm curious to hear from others. Nothing like your own head to blind you to other options =).

Thank you all!

[Jason Bott]

Originally posted by @James McCreary:

Hello everyone,

After some research, I couldn't find much info on recommendations for commercial insurance providers. I am working on (LOI/PSA stage) for two properties in the Phoenix MSA. Property #1 is 11 units, Property #2 is a 100+ unit repurposement deal.

I have two specific questions:
1. Would you recommend going through an insurance broker? Or just contact agencies directly?
2. Would you have any recommended insurance brokers and insurance agencies that cover the Phoenix area?

I have two agencies on my list, but I'm curious to hear from others. Nothing like your own head to blind you to other options =).

Thank you all!

 James, a few comments, 

1)  In regards to #1, an insurance broker will work at an agency, so basically they are one in the same.

What you want to zero in on is a commercial broker who is an Independent Agent, not a personal lines agent who occasionally does commercial insurance.

2)  When working with 2 or more agencies, you need to be aware of the "Blocking the market" phenomenon in the insurance biz.  

Let's say you call agent #1 and ask him to give you quotes.  He sends applications to his top 10 companies on Monday.  Tuesday you call agent #2 and ask that she provide you some quotes.  If agent #2 represents the same 10 companies as agent #1, she will be "Blocked" from getting quotes from any of those 10 companies as agent #1 was "1st in".

Solution - after starting the quoting process with agent #1, ask for the companies they will be getting quotes from.  Once you have that list, you can call other agents, give them the list and ask if they have any additional companies that can provide competitive quotes for your 100 unit deal.  Once you talk with 3-4 agents, you will get a feel know when you have covered the market.

3)  If you have your loan secured, ask the loan officer for the Insurance Requirements, which you will almost certainly have for the 100 unit deal.  These requirements should be shared with all of the agents so the agents are quoting the same coverage limits and coverage forms.