How to Adopt an Underwriter Mindset for Insurance

If the only number you know is your 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗽𝗿𝗲𝗺𝗶𝘂𝗺, we’ve got a problem. Business owners can recite their premium like it’s their birthday. But ask them their loss ratio, and suddenly it’s crickets. The truth is: your premium is the least strategic number in your insurance program. It’s a 𝗹𝗮𝗴𝗴𝗶𝗻𝗴 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿. It’s what you pay, not why you pay it. If you want real control over your insurance outcomes, start measuring the numbers that give you leverage: • Loss Ratio – Are you profitable or unprofitable to the carrier? This is how underwriters judge your risk and price you accordingly. • Rate – No, not your premium. Your rate per unit (per $1000 in payroll, sales, or TIV) tells you how you stack up against peers in your industry. • Broker Compensation – Don’t look away. If you don’t know how your broker is paid, you can’t truly evaluate the value they bring or whose interests they’re prioritizing. Premiums don’t tell a story. These numbers do. Because you can’t improve what you don’t measure and you can’t negotiate what you don’t understand. Do you know your numbers? Or just your premium?

Not too long ago, many real estate investors treated insurance as a formality. I just spent an hour learning why that’s a big mistake. Every week, I meet with 3 business partners to evaluate investment opportunities. Lately, we’ve started inviting experts to join our calls — to stress-test our thinking and learn from people in the know. Two weeks ago, we spoke with Chip Burtner from USI Insurance Services. He walked us through what underwriting actually looks like from an insurer’s perspective. And it completely reframed how we think about risk. Here are my 3 key takeaways: 𝟭. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗵𝗼𝘄 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗶𝘀 𝘂𝗻𝗱𝗲𝗿𝘄𝗿𝗶𝘁𝘁𝗲𝗻 Carriers look beyond the rent roll. They assess loss runs, income, insurable value, property age and square footage. Older assets often need surplus lines carriers - higher premiums, fewer options. If you don’t account for the risks they prioritize like building age, claim history, and system obsolescence you risk surprises in coverage or pricing ___ 𝟮. 𝗦𝗺𝗮𝗹𝗹 𝗶𝘀𝘀𝘂𝗲𝘀 𝗰𝗮𝗻 𝘁𝗿𝗶𝗴𝗴𝗲𝗿 𝗯𝗶𝗴 𝗰𝗼𝗻𝘀𝗲𝗾𝘂𝗲𝗻𝗰𝗲𝘀 Flood coverage doesn’t just apply to units in FEMA zones, it applies to the entire property. A single pipe burst can cause $100K+ in damages, even on top floors. Older systems like Stab-Lok electrical panels can spike your premiums or make you uninsurable. Lenders typically require general liability insurance, but for larger deals or higher-risk properties, many also require umbrella coverage. Umbrella coverage acts as a second layer of protection and often cost 30–80% more than your base liability premium, depending on limits, property type, and perceived risk. ___ 𝟯. 𝗧𝗿𝗲𝗮𝘁 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗮𝘀 𝗮 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼-𝘄𝗶𝗱𝗲 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 If you own multiple properties with separate policies, engage your insurance broker to assess master policy options. Aligning them under a master policy based on vintage, size, and geography can secure better terms. But if you deviate too much: say, with a one-off property that doesn’t match your portfolio profile, your premiums across the board can go up. Insurance strategy should scale with your acquisitions. 𝗕𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: Done right, insurance becomes a strategic lever: → Shields you from downside risk by shifting catastrophic risk off your balance sheet → Satisfies lender requirements → Supports scalable growth by reducing administrative complexity and allowing you to forecast insurance costs more accurately P.S. We’re planning to bring in more experts in the coming weeks. Would you like to connect over a call? send me a message, and let’s set it up.

Underwriters - Don't make this rookie mistake: Don't ask the "I'm gonna quote it" list of questions if there are one or two kill switch questions that will make or break it. Ask. Those. Few. First. Nothing will piss off a producer like spending an hour combing through information, and going back and forth with the client to answer your laundry list of 25 questions detailing everything about the account, only to have you respond with an obvious declination like: "We must decline because the building isn't sprinkled". 🙄 Also... ✅ Read application/narrative provided thoroughly before asking questions to be sure the information wasn't already provided ✅ Remember, there's a difference between "need to know" and "nice to know" ✅ A phone call can often be a less painful way to collect your data and comes across less harsh than a novel-length email ✅ If you're consistently working on the same types of accounts because your company has a strong appetite for them, consider providing the producer with the company questionnaire supplemented by questions that you know you always need so that they have that when they meet with the client. Trust me, I've been on both sides of this. Putting yourself in the other person's shoes will create a better working relationship and get you better results - it's a two way street! #underwriter #underwriting #underwritingsubmission #producer #relationship #insurance