All Forum Posts by: Cameron Moore

Insurance companies are profit-driven businesses that periodically switch between growth and profit modes. During profit mode, they may increase existing customer rates and raise new business rates to reduce new customer acquisition to optimize their margins. Conversely, during growth mode, they may lower rates and focus on attracting new customers in specific areas to expand their market share. To ensure optimal cash flow, it's crucial to have a broker who can navigate which carriers are in growth mode versus profit mode. This helps to secure competitive rates while ensuring the carrier is financially stable and can meet their obligations in case of claims.

The issue with this, is that they invest your premiums in order to make a profit and have cash on hand to pay claims. Unfortunately, the state of the stock market is making that impossible. The carriers are playing smart and in turn, our premiums are exploding. 

Looks pretty standard. Email me your declaration and I will respond with more in depth evaluation! 

@Jason Bott For sure! 

It is recommended that you secure the necessary coverages through a DP3 policy. To minimize the cost of insurance, it may be advisable to consider increasing the deductible levels. However, it is important to note that this strategy entails assuming a greater degree of financial responsibility in the event of a significant loss and may limit your ability to file claims for medium-sized losses. It is essential to carefully consider this trade-off before making a decision.

With regard to coverages, @Greg Kasmer is dead on. Deductibles are the most influential trade-off for cash flow and those other coverages are immensely important. 

@Troy P. when I began in Insurance 5 years ago, ASI actually offered a premesis only Umbrella that did not cover auto losses. I am unsure if they still do that though. 

Allow me to elaborate on the purpose of an Umbrella policy: it's designed to provide an extra layer of protection once your primary insurance coverage is depleted. From an underwriter's perspective, it wouldn't make sense to offer a $1,000,000 umbrella policy to someone who needs to tap into it after using a mere $25k-$50k from their primary coverage. Therefore, they typically prefer to see a higher primary coverage limit of $250k/$500k, so that the umbrella policy only kicks in after the $500k limit is reached.

The great news is that increasing your primary coverage limit often has a minimal impact on your insurance rate, so you can enjoy the added peace of mind without breaking the bank

As a lot of consumers may not fully comprehend what determines their insurance rates, I'd like to offer a concise explanation of the factors that come into play: 

Insurance companies are profit-driven businesses that periodically switch between growth and profit modes. During profit mode, they may increase existing customer rates and raise new business rates to reduce new customer acquisition to optimize their margins. Conversely, during growth mode, they may lower rates and focus on attracting new customers in specific areas to expand their market share. To ensure optimal cash flow, it's crucial to have a broker who can navigate which carriers are in growth mode versus profit mode. This helps to secure competitive rates while ensuring the carrier is financially stable and can meet their obligations in case of claims.

Whatever you do, hire an insurance broker that can shop multiple carriers year over year. Carriers are businesses, they go into profit mode (higher rates and less new customers) every couple of years and then once they like their margins, they move into growth mode and lower the rates and start attaining more new business in certain areas. Having a broker that can navigate which carriers are in Growth vs profit mode is important to your cash flow. 

Contact an Insurance Broker that can shop multiple carriers. It should be relatively inexpensive because you only have to insure the walls in.