Account snapshot
- Risk type
- Multifamily property with Section 8 participation after a fire loss
- Coverage placed
- Commercial property
A fire loss changed the renewal options
A retail agent brought Nomos an older multifamily property with Section 8 participation after a substantial fire loss. The fire had damaged part of the building, and the existing property insurer had advised that it would not renew.
The owner had completed repairs, but the account still carried a recent major loss. The admitted options the agent approached would not offer terms for the property’s combination of loss history, age and building characteristics.
The immediate need was a replacement property placement. Section 8 participation was part of the account description; the obstacle was the property’s loss history and underwriting profile, not an assumption about tenants or the housing program.
Establish the property’s condition after repairs
Nomos worked with the agent to establish the fire circumstances, scope of repairs and current property condition. The owner supplied repair records, current photographs and information about changes made during the restoration.
We distinguished completed work from continuing recommendations or maintenance items. Underwriters needed the actual repair status, rather than a description that treated the start of construction as evidence of a fully restored property.
We also worked through the property values and requested coverage with the agent. The submission presented the building in its current condition while disclosing the loss that had made it difficult to place. Completed repairs were part of that account, not a reason to omit the fire from the underwriting discussion.
Develop an E&S property option
Nomos approached E&S property markets with the loss explanation and supporting information about the completed repairs. The discussions focused on the building being offered for insurance, the recent fire and the requirements under which a market would consider the account.
When a proposal developed, we helped the agent review the limits, deductibles, valuation terms, exclusions and outstanding requirements. Those terms were part of the placement decision, not details to leave until after the owner selected an option.
The owner accepted an E&S property placement after reviewing the terms and completing the remaining requirements. The replacement did not transfer the earlier fire loss to the new insurer. Nor did the outcome establish that the policy duplicated the expiring coverage or satisfied every lender or housing-program requirement.
Repairs did not erase the insurance history
The agent came to Nomos because a large loss had changed the renewal conversation. Restoring the building addressed its physical condition, but the recent fire remained part of the risk presented to insurers.
The placement required an underwriter willing to evaluate both the loss and the property’s current condition. Nomos brought those elements together in the market discussion and helped the agent work through the resulting terms.
Have a similar housing account?
Start with the loss history, repair status, property information and coverage deadline. Explore our affordable and subsidized housing specialty and commercial property coverage. If program requirements are part of the request, see our HUD insurance-schedule guide.
