A changing market
Homeowners coverage was long the best value in insurance. A run of large windstorm, flood and fire catastrophes changed that. In many coastal areas, companies have canceled or non-renewed long-time policyholders, or raised rates while scaling back coverage and imposing high deductibles.
What agents should be doing
- Tell clients in writing when a company non-renews or significantly limits coverage
- Look for new companies that can replace or supplement coverage
- Review each policy periodically so limits reflect changes and additions to the property, possibly recommending an independent appraisal of rebuilding cost
- Offer flood and earthquake coverage in writing where those exposures exist
- Offer personal liability limits that fit the policyholder’s financial condition
Agents who ignore these duties can expect E&O litigation, and after a major catastrophe, agents exposed in these areas can be sued out of business.
Mr. Sapourn is available as an errors and omissions consultant to policyholders, E&O insurance carriers and agents, and has testified in underinsured homeowners loss cases.
Mr. Sapourn is retained by both plaintiff and defense counsel for case analysis, opinion reports, affidavits, depositions and trial testimony. Request his CV and Rule 26 disclosure through the contact form.