In Florida and across the nation the loss leader for residential policyholders is water damage. In all its’ forms, whether the bursting of pipes or overflow of sinks, drains and toilets or from a breach in the roof or walls, non-hurricane related water losses occur more than any other peril.
In Florida water can reach 55% of the total policy payout, meaning it costs more than all other perils combined. Helping agents manage water losses is, therefore, very much a part of FAIA’s mission statement.
Often a substantial portion of an “independent” agents compensation arrives via commissions that are “contingent”–paid based on the profitability of business the agent put with the carrier. While formula’s vary, the greatest single factor in measuring profitability is loss costs. Keeping losses low, helps agents make more money while keeping premiums lower for agency clients.
That’s where FAIA’s partnership with Rytech comes in.
Typically FAIA recommends that agents not endorse or specifically refer any 3rd party vendor to their clients. There can be exposure and unnecessary risk in doing so. So, when clients call asking who to call agents often just provide a list of phone numbers rather than recommend a specific water firm. In reality though a “list of numbers to call” doesn’t materially reduce the potential liability. If a firm on the agents list is negligent and damages the clients property or worse, the agent provided the list that lead to that bad result.
This, and the frequency of water losses, is why the FAIA/Rytech partnership is so important. Agents need to recommend firms that will treat their customers and their carriers fairly, but the due diligence required to make certain it’s the right firm is almost impossible for an agent to conduct.
To feel safe in referring a water vendor the agency would need to know the firm’s track record, both financially and in terms of customer satisfaction. Does it operate in a manner carriers require or appreciate? Is it licensed, insured, certified, and able to perform remediation work for both personal and commercial losses in every Florida zip code? These questions and many more need to be answered before making any 3rd party recommendations.
Fortunately agents don’t have to suffer the time and expense of exhaustive due diligence when it comes to water and mold remediation. FAIA has already done the work for them and recommends Rytech. It’s a partnership that makes a difference to agents in terms of peace of mind, client satisfaction and financially via bonus commissions from lower loss ratios.
To learn more about the FAIA/Rytech partnership and why Rytech is FAIA’s preferred vendor for water and mold losses, go to https://www.faia.com/rytech. You’ll also learn about the VIP Agency Program and can view a video introducing Rytech and its unique approach to water and mold remediation.
About Dave Newell-Dave Newell graduated from the University of North Florida in 1984 and began his insurance career in 1987, as a claim representative with a large property and casualty insurance carrier. In 1990, Dave moved to Tallahassee to continue his career as a field claim representative. In 1997, Dave obtained his property & casualty license and became a producer with a large local independent insurance agency. July of 2008, Dave joined FAIA being the Citizens’ Liaison for FAIA and September 2011 added director of education to his slate of responsibilities. In May of 2017, he added responsibility for workforce development and the Good Works Fund.
About FAIA–Created more than a century ago in 1904 as the Florida Local Underwriters Association, the Florida Association of Insurance Agents adopted its current name in 1941. FAIA was first based in Jacksonville, and then Tampa, before moving to Tallahassee in 1971 to improve the effectiveness of the association’s lobbying efforts and communications with state insurance regulators on behalf of independent agents. Learn more at: www.faia.com/rytech.