BACKGROUND: In 2014, a leading company in high-end multifamily development, construction, and property management came to RMC with concerns about the cost and administration of its builders risk portfolio. Prior to RMC involvement, the Company had been placing stand alone builders risks policies for each construction project it had undertaken. As a result, the Company was seeing its insurance costs steadily rise in conjunction with its development efforts.
After gathering all pertinent information, we informed the Client that it would be more beneficial to build a rolling master builders risk program. After implementation, the Client realized significant cost savings and coverage enhancements, particularly in locations with high wind CAT exposure. The RMC program freed up almost $1.8M in funds for the Client to reallocate to business development projects. In all, this amounted to a 47% reduction in insurance premium costs based on the Client’s insurance budget. With RMC’s involvement (the "RMC Process") it’s estimated the Client has added $25.6M of value back into its investments.