Property Insurance – Agreed Amount

I am in the middle of about 150 different insurance bids and one thing is standing out, agreed amount.

First, agreed amount is an endorsement to property insurance that removes the coinsurance penalty. Coinsurance is a penalty. Agreed amount removes the penalty. It is a good thing for insurance buyers.

I am amazed at how many agents deliver proposals with a coinsurance penalty. There are maybe one in 1,000 accounts that should not have agreed amount – from the insureds perspective. I no longer provide bid specifications when I am getting competitive quotes for a client. I let the agent design the insurance program so I can see what kind of insurance brain an agent has.

Proposing a policy with a coinsurance penalty does not impress me. Call your agent. Ask if your property insurance has a coinsurance penalty. If the answer is yes, ask why. This single mistake is so basic as to be almost a litmus test to determine if an agent is looking out for his client.