Tips for common coverage issues and claims handling

Posted on February 12, 2019

As we settle into 2019, here are some tips Aspera Insurance learned in 2018 – especially with regard to Hurricane Michael. These range from common coverage issues to our claims handling process.

Please consider reviewing policies with your clients prior to renewal or at the point of sale.

Dwelling Coverage

  • Many homeowners hit by Hurricane Michael were under-insured in terms of the limit of coverage for the dwelling.
  • One unique feature of our product is no co-insurance clause nor a mandate to purchase coverage for full replacement cost. Many budget conscious homeowners opt for a lower level of coverage that has a lower premium. In the event of a total loss, their coverage may not provide for the full cost of replacement and they lack the funds needed to replace their home.

Deductibles

  • Explain to your clients how the Wind/Hail deductible works prior to issuing the policy. Most homeowners don’t fully understand the Wind/Hail deductible – the higher the percentage, the higher the deductible.

Insureds don’t like to find out what their deductible is after an event.

Personal Property Limits

  • Review our special limits of liability with your clients for certain classes of personal property such as firearms, computers, musical instruments, etc. These special limits differ from that included in a typical HO-3 policy.
  • Discuss scheduled coverage options for items homeowners feel require more coverage.

Select scheduled personal property coverage in the next to last question on the application; find scheduled personal property rates in our underwriting guidelines.

Other Structures Coverage

  • Review Coverage B options with your clients. Dwellings may hold up well in the storm, but the detached structures (sheds, detached garages/carports, fences, etc.) end up taking the brunt of the damage from the storm.
  • Explain the exposure to a significant loss if your clients are underinsured. Higher rates for Coverage B may lead them to select a lower level of coverage, but they need to be aware of the risks.

We appreciate all you have done to ease the concerns of your insureds through these events.

Thanks for all that you do!