I believe some of other carriers already provide free checklist to their insured. However, the problem is those agents who cares about only commissions. Also, those who doesn’t have enough knowledge due to lack of training on property coverage issues. They gather many update information on auto, but, not on property until recent brush fire and hurricane.
Unfortunately, the fact that a majority of consumers are woefully underinsured has been the standard for years, mostly because of the practice of writing policies based on percentages of the bricks-and-mortar coverage, which is also sometimes too low. While the AM checklist brings up many good points, it is not going to solve this problem. Consumers just don’t understand the responsibility they must assume in knowing and reporting their contents so they can correctly inform their insurance agents, enabling them to write appropriate policies. Checklists, including those that offer spaces for people to complete their own inventories, are largely ineffectual because the vast majority of people can’t or won’t take the time to inventory everything in their properties and, more importantly, they can’t supply current insurance replacement values on every item. This is why my company, Asset Verification, Inc., exists – to provide people with a viable, legitimate, and comprehensive solution to inventory and valuate the contents of their homes, businesses, and houses of worship. In the past eight years, we have found that 70% of our clients are underinsured by a minimum of 40%. With a solution such as ours, the guessing game is eliminated, policies are written based on fact not fiction, clients are protected appropriately, insurance agents increase revenues, and E&O exposure is vastly decreased. Regardless of the inventory solution one chooses, it is key to remember that a checklist in and of itself cannot really solve the epidemic of underinsured consumers.
Excellent article. In my work I am constantly reviewing policies for customers that are woefully underinsured. Although our work focuses on Class C coverage, the Class A numbers are most often well below baseline market construction costs.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
The industry has needed this for years! We see insurers suffering from under insured risks just like the insureds are. Way to go!
I believe some of other carriers already provide free checklist to their insured. However, the problem is those agents who cares about only commissions. Also, those who doesn’t have enough knowledge due to lack of training on property coverage issues. They gather many update information on auto, but, not on property until recent brush fire and hurricane.
Unfortunately, the fact that a majority of consumers are woefully underinsured has been the standard for years, mostly because of the practice of writing policies based on percentages of the bricks-and-mortar coverage, which is also sometimes too low. While the AM checklist brings up many good points, it is not going to solve this problem. Consumers just don’t understand the responsibility they must assume in knowing and reporting their contents so they can correctly inform their insurance agents, enabling them to write appropriate policies. Checklists, including those that offer spaces for people to complete their own inventories, are largely ineffectual because the vast majority of people can’t or won’t take the time to inventory everything in their properties and, more importantly, they can’t supply current insurance replacement values on every item. This is why my company, Asset Verification, Inc., exists – to provide people with a viable, legitimate, and comprehensive solution to inventory and valuate the contents of their homes, businesses, and houses of worship. In the past eight years, we have found that 70% of our clients are underinsured by a minimum of 40%. With a solution such as ours, the guessing game is eliminated, policies are written based on fact not fiction, clients are protected appropriately, insurance agents increase revenues, and E&O exposure is vastly decreased. Regardless of the inventory solution one chooses, it is key to remember that a checklist in and of itself cannot really solve the epidemic of underinsured consumers.
Excellent article. In my work I am constantly reviewing policies for customers that are woefully underinsured. Although our work focuses on Class C coverage, the Class A numbers are most often well below baseline market construction costs.