Insurance-who's pockets get greased? - REO Property Preservation Forum
 
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post #1 of 10 (permalink) Old 02-18-2016, 11:51 PM Thread Starter
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Insurance-who's pockets get greased?

I was contacted by a nat on Wednesday. I negotiated some good prices but, as many nats do, they require I purchase insurance from their preferred provider. I don't like it but it's not a deal breaker. Three quotes came back today and the numbers are ridiculous compared to my current policy.

Current policy through Nationwide;
1 million each occurrence....2 million yearly aggregate....deductible $0.00....premium....$1190.00

Today's "preferred" insurance quote;
1 million each occurrence....1 million yearly aggregate....deductible $2,500....premium....around $2300.00

Now, will somebody tell me who's pockets are getting lined and how is this legal? What's even worse, I gave them an estimated income number about 1/2 of what it should be! Crooked a$$ crooks.
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post #2 of 10 (permalink) Old 02-19-2016, 04:05 AM
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Recomending a carrier is barely legal

requiring a specific carrier, as I understand it, is not.
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post #3 of 10 (permalink) Old 02-19-2016, 04:21 AM
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Not all E$O policies are created equal. Not sure I would want to run down to my local Allstate buddy to get an E$O policy no matter how inexpensive it is. As someone that just recently ended a 4.5 year battle against a suit filed on my E&O, I'm glad I had the proper coverage. I would bet a weeks paycheck that most local Insurance Brokers do not know a thing about what our industry needs are as far as E&O coverage goes. Just make sure you are comparing apples to apples before you pay the premium.

Just my $.02
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post #4 of 10 (permalink) Old 02-19-2016, 08:44 AM
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Quote:
Originally Posted by RichR View Post
Not all E$O policies are created equal. Not sure I would want to run down to my local Allstate buddy to get an E$O policy no matter how inexpensive it is. As someone that just recently ended a 4.5 year battle against a suit filed on my E&O, I'm glad I had the proper coverage. I would bet a weeks paycheck that most local Insurance Brokers do not know a thing about what our industry needs are as far as E&O coverage goes. Just make sure you are comparing apples to apples before you pay the premium.

Just my $.02
Years ago when I was doing anything I could to keep from paying the likes of York Jersey I contacted the carriers for both my business and personal and detailed exactly the type of coverage I wanted. It was like they were on Jeopardy and had to answer questions about North Western Pakastani cuisine for $200. No matter what they were willing to write, the Nationals wouldn't accept it. They do not make a contractor friendly insurance policy for a crooked industry weighted towards the crooks.
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post #5 of 10 (permalink) Old 02-19-2016, 09:20 AM
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Quote:
Originally Posted by safeguard dropout View Post
I was contacted by a nat on Wednesday. I negotiated some good prices but, as many nats do, they require I purchase insurance from their preferred provider. I don't like it but it's not a deal breaker. Three quotes came back today and the numbers are ridiculous compared to my current policy.

Current policy through Nationwide;
1 million each occurrence....2 million yearly aggregate....deductible $0.00....premium....$1190.00

Today's "preferred" insurance quote;
1 million each occurrence....1 million yearly aggregate....deductible $2,500....premium....around $2300.00

Now, will somebody tell me who's pockets are getting lined and how is this legal? What's even worse, I gave them an estimated income number about 1/2 of what it should be! Crooked a$$ crooks.
I was thinking...
Since our pay is heavily discounted, shouldn't our insurance, mandated by the screws, be discounted as well?
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post #6 of 10 (permalink) Old 02-19-2016, 10:10 AM Thread Starter
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Not all E$O policies are created equal.
RichR was spot on. After having my current agent compare the new quote with my current policy, the new "preferred" policy is chuck full of crap I don't need.
All I need is simple grass cut and snow removal coverage, but all these required policies are now "one size fits all", even though the application has a section to list and describe services performed. I suppose it's a lot the same as Obamacare where you have to pay for uncle Tom's Viagra and the preschool teacher's maternity coverage when your own wife's tubes are tied.

Funny GTX mentioned York Jersey. That is exactly who was the most expensive, the most rude, and the slowest by 36 hours getting quotes back to me.
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post #7 of 10 (permalink) Old 02-19-2016, 11:33 AM
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Funny GTX mentioned York Jersey. That is exactly who was the most expensive, the most rude, and the slowest by 36 hours getting quotes back to me.
York Jersey has the worst customer service! They just don't give a sh*t
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post #8 of 10 (permalink) Old 02-19-2016, 03:33 PM
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York Jersey has a good racket going. E&O coverage for P&P is surplus lines with Lloyds Sindicate. If I was mega rich and put up my personal fortune to provide coverage to P&P contractors I would have a HIGH premium and I would tell all the Nationals that EVERY contractor needs to purchase so I could spread the risk as much as possible (law of large numbers).

See why the Nats only have a few "approved" providers?

I'm an odd duck but I love figuring and managing risk.
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post #9 of 10 (permalink) Old 02-19-2016, 06:24 PM
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York jersey

I'm in the same boat right now. York-jersey quote is about 400% more than my current policy with Acadia. I would like to know what is actually covered under "property preservation services" line item. The quote had wints, inspections and other misc stuff listed. Odd thing I didn't see anything listed about snow plowing and roof work?!? When I called them they had to do research and would call me back... Still waiting. Anyone know what is covered?
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post #10 of 10 (permalink) Old 02-19-2016, 07:43 PM
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York Jersey saved my business, not once but twice from bogus claims. They hired a independent agency at their own expense to review and investigate the claim made against me. The claim was for 30k, after the review they concluded that the National was at fault and no pay out. It was so bad that the lawyer and me with the CEO at York had a conference call to discuss the findings of the investigation. In the end the home owner sued the bank and the National and used the findings from the independent audit as evidence.

The bank and national went to court and lost their case. The home owner left the court room with a large sum of cash. I didn't find this out until a year later when the same national asked me to come back to work for them again. Which i did.

The national couldn't charge me back because the case went to court and they lost, plus I put their work on hold as soon as the claim use made against my EO. By the time the investigation was done they had already paid all the money they owed because because of the 30 to 45 day pay scale. The investigation took over 3 months.

Its against federal insurance fraud law, as noted by Consumer Financial Protection Bureau that no company can give kick backs for using a "Preferred Insurance Carrier" These Preferred carries are used because they are top tier carriers for the industry norms. If you think a company like York Jersey will just roll over and pay out your greatly mistaken. The people at York went through extreme lengths to protect my company and my contractor that did the job in question.


When Nationals see my EO carrier is York Jersey I automatically get preferred treatment. Call it a racket or a scam if you will but im here to tell you a real world case that others here are well aware off. I don't pay 18k a year just for some National or Regional to crap my business or push their liability down on me.
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