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Procurement Market Intelligence Report

Building & Contents Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Building & Contents Insurance?

What is the average price of Building & Contents Insurance?

This procurement report includes pricing information to help you purchase Building & Contents Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Building & Contents Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Building & Contents Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Building & Contents Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Building & Contents Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

About 63,250 providers operate in the building and contents insurance market, including direct insurance carriers, agents and brokers. Market share concentration is low, with the top four providers accounting for less than 30.0% of total revenue. As a result, no single firm controls the majority of the market and competition... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Customer Service

What is the average wait time for a customer service representative to answer a question or concern?

What type of online customer services do you offer?

Can clients pay bills or change insurance coverage, limits and deductibles online?

What type of customer service do you provide after hours?

Is customer service included in the premium, or do I pay an additional fee for any consultations, e-mails, phone calls and other interactions with customer service representatives, agents and other employees?

What type of system do you use to service client accounts?

Experience & Quality

How long have you been offering insurance to my industry?

How often do you communicate with clients during the policy period? What method do you primarily use to communicate with clients?

How do you assess customer satisfaction? What have you changed as a result of customer satisfaction assessments?

What type of advantage does your level of experience and knowledge give you in the market?

Amid widespread health concerns, what contingency plans are in place to mitigate the risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions or premium credits?

Claims & Policies

Do you process claims reported more quickly over the phone or over the internet? Do you process them in the order they arrive or in order of importance?

What is the average turnaround for processing a claim?

Do you provide a paper copy or digital copy of the policy? Is the cost to mail and print the policy included in the premium price?

What are the different policy structures that you offer?

If my business size and needs change, can I update the deductible and premium amount at any time?

Do you recommend an indemnity or replace-as-new insurance policy based on my business?

Competition

Have you completed any acquisitions in the past three years? If so, how did these affect your business? Do you plan on completing any acquisitions in the next three years?

How do you differentiate your services to attract and retain buyers?

How have you developed your reputation?

What is your client turnover rate? What policies do you have in place to reduce client turnover?

What strategies do you use to take advantage of the growing number of businesses?

Are you experiencing fluctuations in demand as a result of the coronavirus pandemic? What measures are you taking to handle increased or reduced demand?

Value-Added Services

If I bundle insurance policies together, what type of discounts am I eligible for?

Do you recommend I purchase an umbrella policy? How will it benefit me in the long term? How much would this cost me?

What other policies do you recommend based on my business size and industry? Why?

What type of value-added services do you offer, if any?

What partnerships do you have, and how do your clients benefit from these partnerships?

What services are included in the basic price I pay for the insurance policy?

What new products, solutions and services have you introduced to address issues brought on by the coronavirus pandemic?

Financial Strength

What are your credit ratings from A.M. Best, Standard & Poor’s and Moody’s?

Have your ratings changed in the past three years? If so, how has this change affected your pricing?

Have you ever failed to pay benefits to a policyholder due to poor financial health?

How do you reduce your risk of bankruptcy?

Do you rely on reinsurers to pay your obligations? If so, what are their financial strength ratings?

Regulation

How do you stay informed about regulatory changes?

How have you had to change your business model to account for regulatory changes?

What regulatory changes do you expect will impact your business in the next three years?

If regulatory changes have increased costs, how are you managing this increase?

Do you have any pending litigation, complaints, violation notices or suspensions filed against your business? How are you dealing with such filings?

Can you provide proof of your state licenses?

How familiar are you with the regulations and laws in my city and state?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should explain what their preferred premium is.

Buyers should include their preferred deductible and limit amounts.

Buyers need to detail what their expectations for payment schedules are.

Buyers can consult the pricing information in the Benchmark Price section of this report to determine about how much they should pay to insure their property.

Selection Criteria

Buyers should evaluate vendors based on their financial strength.

Buyers should consider the experience and qualifications of vendors.

Buyers should evaluate the customer service support provided by vendors.

Buyers should assess vendors based on their references.

For a detailed outline of the key criteria buyers should consider when evaluating potential providers, see the Buying-Decision Scorecard section of this report.

Buyers may consider including an evaluation matrix to score potential providers.

Project Schedule

Buyers need to include the exact dates that they expect coverage under the policy to begin.

Buyers should include the preferred renewal schedule for coverage.

Buyers should indicate their preferred contract length.

Buyers should provide a list of all relevant solicitation milestones, such as submission deadlines and notification dates.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk for building and contents insurance is moderate. Providers in this market often rely heavily on portfolio management firms and reinsurance carriers, which give them the financial resources to cover claims for clients. When providers receive premiums from policyholders, insurance providers allocate a large portion of the premiums... Subscribe to learn more.

HIGH

MEDIUM

LOW