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…
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…
Much has been written about trees and homeowners policies but what about commercial lines forms? Do they cover trees differently than personal lines forms? And what about the business income exposure presented by the loss of trees and their removal? This article examines these issues and references related articles from the VU library.
In the event of partial losses, the limit of insurance is usually adequate to include the cost of debris removal. However, in some cases, the limit might not be adequate or the commercial property form’s debris removal sublimit might restrict coverage. That begs the question, “How much debris removal coverage do I need?” For this…
With increased costs in this hard market, many insureds want to reduce their premiums. One way to do that is through the use of deductibles. But, how large a deductible is appropriate for your insureds? In this article, we’ll give you some tips from our faculty and several top risk managers that may help you…
An insured had an open lot business and stored a substantial amount of business personal property (BPP) in an enclosed shed. They did not insure the shed. Thieves stole $5,000 worth of BPP. The adjuster says it isn’t covered because it wasn’t in a DESCRIBED building, but it would have been covered if in the…
This is Part 1 of 2 from my Agent & Broker magazine column that generated the most “fan mail” of any columns I’ve written over the years. If you use “toy” valuation systems like room counts or square footage in determining building values (in either commercial or personal lines), you need to read this two-part…
Your insured buys a building for $250,000. The ACV of the building is closer to $750,000, but the insured only wants to insure the amount of his financial investment. Since coverage is usually based on ACV or replacement cost, underinsurance could result in a huge coinsurance penalty. What can you do?
