MX Commercial case study: Overcoming structural challenges for a Grade II listed property
The Challenge
The MX Commercial team was recently approached with a unique and challenging situation. A broker, with whom MX Commercial was in the process of building a relationship, had a client with a small property that required coverage. The property in question was Grade II listed and had a relatively low sum insured of less than £1 million.
During a structural survey undertaken by the insured, it was discovered that the property required significant repairs to one area. These major structural works typically lead to a decline in coverage due to the increased risk. However, considering the property's low sum insured and the ongoing relationship with the broker, MX Commercial were determined to find a way to continue providing coverage despite the potential risks involved.
The Specialist Solution
MX Commercial prides itself on its ability to offer tailored and flexible insurance solutions, even in challenging circumstances. Recognising the importance of maintaining the relationship with the broker and supporting the insured, MX Commercial took a proactive approach.
Firstly, the team thoroughly assessed the situation, considering the details of the structural survey and the extent of the required repairs. Although major structural works often result in a declined coverage, MX Commercial identified several mitigating factors. The property's low sum insured and the limited extent of the necessary repairs provided a basis for a more nuanced decision.
MX Commercial engaged in detailed discussions with its insurance partners, presenting a comprehensive analysis of the risk. Through effective communication and a strong understanding of the property’s specifics, MX Commercial successfully obtained the insurer's agreement to continue coverage. To balance the increased risk, it was decided to maintain the coverage at a slightly reduced level until the completion of the structural repairs. This solution ensured that the insured remained protected while addressing the insurer's concerns about potential risks.
The Outcome
The decision to continue coverage, albeit at a reduced level, was well-received by both the broker and the insured. The broker appreciated MX Commercial's willingness to find a workable solution, which strengthened the developing relationship. The insured felt reassured knowing that their property remained covered during the period of repair.
By securing the insurer's agreement to maintain coverage, MX Commercial demonstrated its commitment to providing specialist and client-focused solutions. The successful resolution of this case highlighted MX Commercial's flexibility and expertise in managing unique and challenging insurance situations.
In the end, the structural repairs were completed successfully, and the property's insurance coverage was reinstated to its original level. This positive outcome not only solidified MX Commercial’s relationship with the broker but also enhanced its reputation as a reliable and adaptive MGA in the property insurance market.
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