AN AGENT
UNDERINSURANCE BY: BILL WILSON, INSURANCECOMMENTARY.COM I know, I know. I’ve been remiss in blogging and I’ll work on that. I try to only blog when it’s something important and/or of high value, so that limits how often I ‘bother’ you. In addition, I am working feverishly on my newest book about the history, evolution, and meaning of the property damage exclusions in the industry standard CGL policy dating back to at least 1941. I’ve spent well over a year researching this and I have amassed a great deal of source material, from “bureau” filings and circulars to drafting committee minutes. Perhaps for the first time, how and why these exclusions evolved over the decades will be revealed.
In May, I will be attending a conference in New Orleans of industry consultants and serving on a panel discussion of all of the associated issues involved in underinsurance. At the same time, the actions of other groups are addressing potential solutions with valuation system vendors, agents, insurers, and regulators. Perhaps later this year (if I ever get this book written), I’ll focus my attention on a white paper that outlines the issues and possible solutions. In the meantime, below is John’s article….
Is it time to re-visit the methodology used by agents to determine replacement costs and/or reIn the meantime, today I’m posting a guest article from construction costs? How confident are you that John Putnam, CPCU, a Colorado insurance consultant the real property replacement values that you and former agent who has spent years doing pro bono develop are sufficient to either replace or rebuild? work with consumers and business owners following If a natural catastrophe hit your community, several high profile wildfires in the state. A HUGE issue would you have the same confidence in your following these catastrophes is the degree of replacement or rebuild figures? As the increasing underinsurance of properties. Not only are many of frequency and severity of natural disasters occur, them underinsured for even an isolated fire or one of the first questions in their aftermath is why windstorm claim, but when you compound that with does underinsurance one of the first issues. the almost simultaneous destruction of hundreds or thousands of properties, supply and demand issues In the aftermath of the Marshall Wildfire in greatly enhance the underinsurance situation. Boulder County, Colorado, the Denver press has
