Property Deductibles: Subtracted from the Limit or the Loss
A concept as common as the application of a “property deductible” is rarely taught or even considered, it is simply “understood.” The problem is we tend towards the belief that…
Personal Lines
Replacement Cost and the 180-Day Limitation Myth
Carriers seem to believe that a property loss must be discovered within 180 days of the event causing the damage for the policy to respond on a replacement cost basis;…
When Insurance Strikes (Out): Underestimating Replacement Cost
Underinsurance is still a problem. According to CoreLogic approximately 60 percent of homes are underinsured by 20 percent on average. Obviously, this leads to devastating results for the insured, and…
Can Home Repair Costs be Depreciated?
After a fire damaged an insured’s home, the HO adjuster offered to pay only part of the repair bill, stating that he was taking depreciation off the total. The agent…
Homeowners Functional Replacement Cost
Our “Ask an Expert” service got a question this week from an agent who represents an insurer who has begun using a Functional Replacement Cost Loss Settlement endorsement on older…
Insurable Interest in Personal Property
A critical element in the principle of indemnity is that an insured can only collect for a loss in an amount equal to his or her insurable interest in the…
The HO Undervaluation Problem
According to the experts, a majority of homes are undervalued by at least 25% on average. Magazines and newspapers are replete with articles about insureds who suffered major losses only…
