PRODUCT: CondoPak condominium coverages
COMPANY: HDI-Gerling America Insurance Co.
BEST RATING: A XV (Excellent)
AVAILABILITY: Available to select agents in 26 states.
FOCUS: After 15 years of experience offering umbrella coverage for condominiums, New Empire has launched CondoPak in 26 Eastern states, aiming to capture business in high-end condominiums, cooperatives and other community associations with building values up to $25 million.
New Empire, a nationally licensed program administrator, seeks retail agents with significant books or a niche business in condos. “We want agents who work in the condo field, specialize in the coverages and don’t necessarily have to be taught,” says Robert Mackoul, senior vice president and chief underwriting officer of New Empire. “We want to work with agents who work with condos every day, who know the ins and outs of the condo and the industry itself.”
Because condo umbrella coverage has been the group’s specialty for years, “we have the foundation after the house, so to speak,” Mackoul says. “It’s been a niche we’ve carved for ourselves over many years. It’s what we know.” The firm also has programs in commercial umbrella, property manager E&O, cyber, storage tank and site pollution, commercial inland marine and D&O for community associations—most of which are national programs that focus on apartments, retail strips, warehouses and office buildings. Mackoul says the company also has plans to make the condo program national.
Although it’s only two years old, the program has already developed its first enhancement, now offered in six states. The original filing remains available in the other 20.
The appointment application for agents “asks a lot of the questions that a carrier would ask: Who do you place your coverage with? What is the size of your book? How much of it is condos? We make a judgment based on what we see there,” Mackoul says. “It would probably be difficult for us to appoint anyone who has a small book or has a very small percentage in condos compared to the rest of their agency.”
UNDERWRITING: Coverage limits are up to $25 million for CondoPak, and the “sweet spot” of the program is “just about anything up to low $20s—the $21-$22-million range, Mackoul says. “We’re extremely competitive on any of the smaller and medium-sized buildings.”—adding the program is for agents who write for higher-end condos.
Coverages include: earthquake, ordinance or law coverage, backup of sewage and drains/water damage, flood (New York and Pennsylvania only), employee dishonesty and equipment breakdown. Qualifying buildings have joisted masonry or better construction and have been updated and/or renovated within 25 years. The package is written “coastal x-wind” (excluding wind risk) or with a wind deductible. An ACORD application with a CondoPak supplemental application and loss history with a three-year minimum are required for submission.
MINIMUM PREMIUM: None.
TARGET: Small- to mid-sized community associations.
COVERAGE TERRITORY: AL, CT, DC, DE, GA, IL, IN, KY, ME, MD, MA, MI, MS, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV and WI.
CONTACT: Robert Mackoul, senior vice president and chief underwriting officer; New Empire Group, 214 West Park Avenue, Long Beach, NY 11561; 516-690-8116.
Ronimarie Acord is an IA contributor.
