The Benefit of Boutique: MHC Lender compliance

Client:  Multi-State Manufactured Housing Community Owner

Line of Coverage:  All Lines

Issue

MHC owner was referred to Tartan after struggling with insurance costs, limited coverage, and terms that were non-compliant with lenders.

Action

Tartan created a comprehensive profile of the portfolio, including significant CAPEX investments, updated lease language, low turnover, and plans for additional upgrades. The profile was presented to key carrier partners to encourage more competitive underwriting.

Outcome

By communicating a more thorough profile of the communities, Tartan was able to consolidate coverage through two carrier partners, cut the W/H deductible in half to meet lender requirements, double the umbrella limits, and lower all underlying rates.

Commentary

Underwriters can only work with the information they are provided.  When that information only tells part of the story, underwriters are left to fill in the blanks.  Typically, that means taking a very conservative approach to assessing the risk.  When insureds and clients work together to build an accurate, thorough risk profile, and present it in a meaningful way, underwriters are more likely to provide favorable terms.