When Replacement Cost Doesn’t (Replace)

Posted by on Jul 18, 2013 in Underwriting |

If you said your policy provided replacement cost coverage for all your stuff, it might not stop conversation at a cocktail party, but it would give you a warm and fuzzy feeling.  After all, it certainly sounds better than actual cash value (ACV).  Let’s check a few things and then get back to that feeling. The HO3 policy Section I Conditions, #3 Loss Settlement clause says personal property, awnings, carpet, household appliances (even if...

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The Often Neglected Coverage B

Posted by on May 31, 2013 in Underwriting |

Coverage B (Other Structures) is just “out there.” It’s semi-ignored like your annoying second cousin.  Insureds assume everything is covered, and the HO3 policy throws some coverage at them and hopes it will all be OK.  On this subject a little attention could go a long way to making claim day a happy day, so let’s look at the Coverage B pitfalls. Other Structures – wait, stop right there.  The generally accepted definition of...

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An “Insured” by any other name . . .

Posted by on Apr 22, 2013 in Underwriting | 2 comments

. . . may or may not be just as sweet. I have to sometimes wonder if the people who write insurance policies are just trying to confuse us. I bet they’re sitting back and laughing, “Wait ‘til they try and figure out this one!” Well, today we’re going to figure out “Insureds.” Let’s start with Named Insured(s) who are the person, people, or entity named on the Declarations page. In the HO3 policy, they’re referred to as...

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Residence Employees

Posted by on Mar 4, 2013 in Underwriting |

In the world of personal lines insurance, a residence employee is “an employee of the policyholder whose duties are related to the maintenance or use of the residence premises, including household or domestic services”. They can also “perform similar duties elsewhere not related to the business of an policyholder”. The word “residence” here has nothing to do with where the employee lives. They can either live at the...

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When is a “Condo” not a Condo?

Posted by on Jan 10, 2013 in Underwriting |

I think Insurance is the center of the universe, but apparently most of the world does not agree with me.  I’m constantly amazed at the ever-changing ways attorneys and tax accountants come up with to title property or transfer risk via a contract.  They either don’t consider the ramifications to the insurance program, or think we can just change our contract to match their latest gimmick.  As you well know, it’s often not that...

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