Case Study :: Personal Home Insurance

Challenge:

A family needed to evaluate their existing home insurance program to determine their potential for loss. The strategy was to uncover gaps in their current protection and implement a cost-effective solution.

What We Did:

• We started with an in-depth review of our client's existing home insurance program.
• Special attention was taken to coverage limits and limitations that could burden the family with an unwanted loss.
• An analysis was then taken of the owner's potential loss, reviewing the adequacy of the limits provided for home reconstruction, personal goods and collections.
• Lifestyle and hobbies were reviewed to determine the adequacy and availability of liability protections.

Recommendations:

• Upgrade homeowners policy to contain an 'unlimited' home replacement guarantee, including ordinance upgrades to address building codes that had changed in the past 5 years.
• Implement a strategy to take the best advantage of personal goals protection. This included segmenting their collections and jewelry from the general contents protection. This specifically addressed contents otherwise limited by the policy and took advantage of the best insurance rate.
• Upgrade current protection system to include fire alarms in attic where a fire could start.
• Expand the personal program to address additional liability caused by volunteerism activities for a non-profit board.
• Enhance deductible to minimize rate considerations.

Results:

• Client adopted all of our recommendations. This improved their protection to address their changing lifestyle.
• The program eliminated redundancies in their coverage and non-protects items formally not covered.
• The liability protection enhancement and additional property protection was instigated by a deductible change, utilizing the client's premiums to their best advantage.
• The overall result has been a cost-effective, value-driven alternative to their old program.