What’s Not Covered – Property Insurance

Every property insurance policy has exclusions. Review your policy and talk with your insurance adviser about what exclusions are in your policy.Here are some common property insurance exclusions:Earthquake/earth movementFlood/water/mudslide/water backupDamage by insects and animalsDamage by high pressure vessels (steam boilers)Ordinance or … [Read more...]

Debris Removal Insurance After a Fire

After a fire or other insured damage to your building, there will likely be debris that needs to be removed. Coverage for this is usually limited to 25 percent of the loss. The amounts paid for debris removal do not increase the total limit of coverage for the whole claim. It is therefore possible that you can run out of coverage.To help, insurers … [Read more...]

Coinsurance Hole In Coverage

I've just started the review of a new client's coverage. There, on the first page was a glaring error - a coinsurance penalty. It may be the most common problem I see - aside from named insured issues...Coinsurance is a penalty assessed at the time of a loss. It is the way insurers assure that insureds buy adequate limits of coverage.The penalty … [Read more...]

Wall St Journal Letter

From the letter to the editor by me published in today's WSJ, commenting on a prior article on the problems with Flood Insurance in Mississippi and Louisiana.Well said Mr. Wilson. (Real Insurance Fraud 11/16/07) Nationwide, only about 1 in 20 households have flood insurance. As Mr. Wilson pointed out, traditional property insurance does not … [Read more...]

Problems with Computer Insurance Coverage

In years past many business owners and their insurance agents added specific computer coverage to their insurance plans. That may have been the right path at the time - it may not be right now. A separate coverage part means a separate limit of coverage that may or may not be correct. A company that has $575,000 of coverage for business personal … [Read more...]

Flood Insurance

I got another call a few weeks ago from someone wondering if it is common for an insurance company to exclude damage by flood. Answer: yes, quite common. In fact, few property insurance policies cover flood damage. Coverage can be added if you ask your agent for it. Some insurers will add it right to your commercial property insurance. Others will … [Read more...]

Coinsurance In Property Insurance

This weekend I spent some time reviewing renewal policies for several clients. An issue jumped out that I have not mentioned in a while.Coinsurance is a penalty clause in property insurance policies that requires a certain percentage of the property's value to be insured.Example: A building with a replacement cost of $1,000,000 and an 80% … [Read more...]

Exclusions in Property Insurance Policies

The rain continues in the northeast! The stories are all over the news about the low percentage of businesses and homeowners who have flood insurance. Here are the perils commonly excluded by property insurance:FloodEarthquake / LandslideNuclearDamage Caused By Insects & AnimalsPollutionRain Without Damage To The Building FirstSettlingMold, … [Read more...]