As a property manager for condominium and homeowners associations, you are often asked to provide a currently valued loss run during the insurance renewal or marketing process. A common question we hear is:
“If you are already our insurance broker, why do you still need updated loss runs from the prior agent or carrier?”
This is a reasonable question, and understanding the purpose of a currently valued loss run can help prevent renewal delays, underwriting issues, and unexpected premium changes.
What Is a Currently Valued Loss Run?
A loss run is a report issued by an insurance carrier that details an association’s claims history, typically over the past three to five years. A currently valued loss run reflects the most up-to-date claim information, including open claims with current reserve amounts, recently closed claims with final paid figures, and any adjustments related to ongoing investigations or litigation.
Why Insurance Carriers Require Currently Valued Loss Runs
Underwriters rely on accurate loss history to evaluate risk and determine pricing and coverage terms. Outdated loss runs may not reflect changes in claim reserves or settlement activity, which can lead to pricing discrepancies, coverage restrictions, or last-minute underwriting requests. Currently valued loss runs allow carriers to properly assess claim frequency, severity, and trends such as water damage or liability losses.
Why we request updated loss runs from the client — and the Role of the Broker of Record
When our firm was not the broker of record on prior policy terms, we do not have the authority to request updated loss runs for those periods. A broker of record is the insurance broker formally appointed by the association to represent them with the insurance carrier for a specific policy term. Only the broker of record—or the policyholder—can obtain official loss runs directly from the carrier.
How Currently Valued Loss Runs Benefit the Association
Providing current loss information helps prevent premiums based on outdated or inflated reserves, reduces the risk of underwriting delays, and strengthens negotiations with insurance carriers. Ultimately, accurate loss runs help protect the association’s budget and long-term insurability.
How Property Managers Can Help Ensure a Smooth Renewal
Promptly requesting currently valued loss runs from prior carriers or agents helps keep the renewal process on track. Providing complete and current information allows your insurance broker to present the association accurately to the market and advocate for the most competitive terms available.
We recognize that gathering loss runs can be time-consuming, but they are a critical component of securing appropriate coverage for condominium and homeowners associations.
If you have questions about how to obtain loss runs or why they are being requested, our team is always available to assist.