As every self-respecting Insurance Geek knows, one word in an insurance policy (in fact, even a punctuation mark…but that’s another story) can make all the difference in coverage or lack thereof. So, with apologies to Bill Clinton for the title of this article, let’s take a look at an actual claim that boiled down to a…
If you insure the tenant of a building and they install improvements and betterments, you certainly want to make sure they’re adequately insured, particularly if the lease makes the tenant responsible for damages. However, if you insure the building owner, they must be just as vigilant in updating their coverage. Here’s why….
An agent asks, “I’m quoting a tank fabrication operation. They manufacture large metal tanks at their facility, transport the tanks to the customer’s location, and install them. The current agent includes business income coverage, but I think there is still a gap if these very expensive completed tanks are destroyed while still at the insured’s…
Sometimes a third party wants to be added as a named insured on a property policy, but the insurer refuses. As an alternative, the party elects to be named as a loss payee. ISO and carriers may have options for naming such parties as loss payees or covering them under a lenders loss payable clause.…
Blanket insurance is often the most effective and safest way to write property insurance on risks with multiple locations. Since the limit can be applied to any location, it lessens the likelihood of inadequate insurance due to fluctuating values. However, there appears to be an increasing use of margin clauses that limit coverage at a…
As we all know, insurance seminars and articles can be a little on the “dry” side. So, every now and then, when you select an article from the Research Library, you may get the unexpected. We want the Virtual University to be more than some stale, stoic repository of insurance technica…hey, let’s have a little…
Question: I have always understood Agreed Value to do away with the coinsurance clause. I have also understood it to stand alone, meaning no ACV or RC noted on the Dec. page for the particular item showing agreed value. Am I correct or mistaken? If I am correct in both instances, is it correct for…
One of the toughest tasks facing insurance agents involves how to go about explaining coinsurance…why it exists, what’s its purpose, and how it works. Below is an explanation that you might find of value in discussing the purpose of coinsurance with your clients, along with a deposition excerpt from an agent who couldn’t explain it.
One of the greatest myths in commercial property (and homeowners) insurance is that, in order to recover on a replacement cost basis, not only must the building be replaced, but it must be replaced on the same premises. The policy language has often been misinterpreted to say this, but as demonstrated below, this isn’t what…
One of the most difficult insurance concepts to explain to insureds is coinsurance. To assist you, there are several VU articles listed below that should be helpful. In addition, John Wheeler, CPCU, an agent in Lake City, Florida has come up with a graphical Excel spreadsheet that visually displays how the coinsurance penalty works. John…
