“Doctor, thanks for seeing me; this is what you should do to properly treat and cure me.” Can you imagine this scenario? Can you imagine paying a doctor and the doctor expecting that you will order what is needed for you to be cured? Of course not.
Continue Reading The Insurance Industry Knows That Most Policyholders Are Not Properly Insured
Underinsurance gaps are not good for policyholders or insurers. Colorado Insurance Commissioner Michael Conway said a lot during his brief appearance at the Rocky Mountain Association of Public Insurance Adjusters meeting on Thursday. In Colorado Insurance Commissioner Michael Conway Continues Efforts to Help and Assist Policyholders Impacted by the Marshall Fire, we applauded Conway for taking a very transparent and informative role about the insurance issues in Colorado. While stating that there are no easy answers to solve the underinsurance issue, he showed a deep understanding of the issue and promised to do something about it.
Continue Reading Colorado Insurance Commissioner Talks About the Underinsurance Problems in Colorado
The California and Colorado wildfires are the most recent natural disasters to highlight the pervasive underinsurance problem. United Policyholders has been in the forefront pushing an agenda to end this problem. But there continues to be push back from the insurance industry about making products and practices which will correct the problem.
Continue Reading Everybody Recognizes that Underinsurance of Structures is a Systemic Problem. Will the Insurance Industry or its Regulators do Something to Correct It?
The insurance-to-value questions and concerns of underinsurance come up every time an insurance agent selling property insurance makes an application or oversees a renewal of a property insurance policy. Bill Wilson is an experienced insurance agent and insurance agent educator. When he talks insurance, those of us in the insurance business should listen.
Continue Reading The Underinsurance Gap: Who Is Truly in a Better Situation To Determine the Full Amount of Property Insurance Required on a Structure?
Insurance protection gaps can be caused by many different things. One is when insurance agents suggest that a policyholder can save money by purchasing insurance to less than full value. Professor Jay Feinman warns about this and calls this the “underinsurance gap.” He defines this as occurring when “the policyholder has coverage, but in an amount that is less than the extent of actual or potential losses.”
Continue Reading Beware of Insurance Agents Advising To Underinsure
Hurricane Katrina was a huge warning to me about the problem of underinsured homes. We represented hundreds of “slabbed” homes—those where the only thing left was a concrete slab. Virtually all of them were severely underinsured. Some may suggest that this is the most widespread coverage gap.
Continue Reading Do I Have Enough Insurance? Underinsured Homes Are Epidemic
It has been five months since Hurricanes Irma and Maria wreaked widespread havoc on the U.S. Virgin Islands. The Category 5 hurricanes damaged buildings of all shapes and types – residences, businesses, places of worship, warehouses and commercial buildings. Those with insurance coverage filed claims, presumably expecting prompt and fair responses from their insurance companies. Have these policyholders received a timely response?
Continue Reading Additional Review Required of All Virgin Island Hurricane-Related Claims Where Property Determined to be Underinsured
Imagine for a moment your home is severely damaged as a result of a hurricane or tornado. The damage is so bad, you think the damage merits the maximum coverage your insurance policy provides, and it turns out you’re right. Your insurance company pays you the maximum policy limits, and you’re sitting pretty with what looks like an amount sufficient to repair your home. However, you receive bad news when your contractor tells you he will need more than your insurer gave you to fix your home. Turns out you did not have sufficient insurance to protect your home, and according to a recent CNBC article, this problem is more common than you may think.
As we have seen with the Katrina and Wilma litigation, courts will enforce the anticoncurrent causation clause, standard in most all risk and wind insurance policies. Many who suffered total losses could not fully recover because they did not have adequate flood insurance. Generally, policyholders with insufficient flood coverage limits fall into three categories:
Two recurrent issues are keeping policyholders from full recovery following disasters. First, policyholders are not getting flood insurance even though it is available. Second, policyholders are not increasing the limits of coverage to reflect the full costs of construction or replacement. They are exposed to the risk of being significantly under-insured.
Continue Reading No Flood Insurance And Not Enough Insurance