A McGriff client in the hotel management industry purchased a new location to add to their portfolio. The client was unsure how to establish an adequate valuation necessary to properly insure the property. In order to include a replacement cost coverage valuation on their policy, they would need to meet the policy coinsurance requirements. Their lender required $50M in building coverage, including a separate policy providing earthquake protection. The client felt this limit was excessive based on values placed on their similar properties and decided to reach out to their McGriff representative for assistance.
The McGriff representative contacted a risk control consultant with the McGriff Risk Services team to help determine the proper valuation for the new location. Using a software program developed for this activity, the risk control consultant determined $35M would meet the coinsurance requirements to purchase replacement cost coverage on the policies for the newly purchased property. The detailed valuation was shared with the client’s lender.
The lender agreed to the revised valuation and accepted coverage reflecting a building limit of $35M. Revising the limits on the property and earthquake policies resulted in a premium savings of almost $89,000. The client was grateful for the expertise provided by their McGriff team and the premium dollars they were able to save.
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Insurance products and services offered through McGriff Insurance Services, LLC, a subsidiary of Truist Insurance Holdings, Inc., are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may go down in value.
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