Since when do you have to buy a different flood policy to cover contents? Once an again, an attorney that has no idea what he’s talking about. I guarantee the customer told the agent not to cover contents because they were complaining about the premium.
We have been through a lot here…just in the Nashville area alone more than 11,000 properties affected. Damage in only Nashville and only to residential & commercial property (not roads, governmental property, etc) estimated at nearly $2 billion. FEMA says we are farther along than NO was after a year. We are not waiting for gov’t & handouts, we are helping each other. Check out the Tennessean website for pictures.
The agents are in a no win situation. Since we had the flood, lawyers say agents should have advised clients to purchase flood insurance. If we had not had the flood, lawyers would be saying that the agents were wrongfully pushing flood insurance to boost their commissions.
That’s right….Selective memory sets in all the time when there’s a flood loss or any other loss. We P&C agents are exposed to this constantly but in the end it’s the insureds responsibility to READ the friggin policy. To offer every possible endorsement or additional coverage to a home policy would take all week, 8 hours a day to explain to some of these people. I have a sticker saying “NO FLOOD COVERAGE” to every application for home or property. If it’s not flood it will be something else like, “you didn’t tell me my Pit Bull wasn’t covered for theft”.
It would be really nice to have flood as an option on all homeowner applications. If in doubt on a coverage add it to the policy and have the insured sign an endorsement to remove coverage after issue. I wonder if such attorneys have flood on their policy and if not are they suing their agent and company as well. If so the future cancellation could read “due to a measureable increase in the risk”. The insured is an… you fill the blank.
It would be really nice to have flood as an option on all homeowner applications. If in doubt on a coverage add it to the policy and have the insured sign an endorsement to remove coverage after issue. I wonder if such attorneys have flood on their policy and if not are they suing their agent and company as well. If so the future cancellation could read “due to a measureable increase in the risk”. The insured is an… you fill the blank.
On the other hand, didn’t the people buying insurance learn anything from that catastrophe?
I’ve a sign in my office that says “North Carolina’s flood zone shown in red”, with the entire state colored red. People read that and giggle, ask about the price then say that they’ll think about it. Outside of those in a flood zone that are required to maintain flood insurance no-body wants to buy it, and think that they will never require it.
One of the most common things I hear is “I’m the highest point in my neighborhood”
Only one way to solve this problem, Obamma health care, If you are in a flood zone and do not purchase folood coverage, then you can be fined not having coverage PERIOD
If you want insurance advice, go to an insurance professional, not an attorney. You don’t have to buy a separate flood policy for contents coverage.
The Nashville TV stations were telling people that they couldn’t buy flood insurance if they live outside a “flood plain.” Where does all of this bad information come from? Doesn’t anyone pay attention to all of these FEMA TV ads?
It doesn’t help when Insurance Journal is posting incorrect insurance advice.
One very large Nashville insurance agency sent out a flood insurance solicitation to all of their personal lines clients months before the flooding. Know how many responses they got back? TWO. Not sales, just inquiries.
People think, “It’s not going to happen to me.” When it does, they look for someone to blame then claim their insurance agent told them they didn’t NEED it. That’s why it’s so important for agents to have written procedures to offer the coverage and documentation that it’s been offered and declined.
I agree that Flood should be covered under the homeowners but without the option to remove it. Price it accordingly just like any other non removable coverage from the homeowners. This way, no more finger pointing and no one is left “out in the rain” after a water damage or flood loss.
Agents can’t practice law without a law license. Why should attorneys be able to provide insurance advice without an insurance license?
“Nashville attorney David Raybin said he is considering a lawsuit challenging insurance agents, who have a duty to explain coverage options to their clients.”
There is ample case law that insurance agents, in general, DON’T have a duty to offer specific types of insurance to their clients.
Also, what’s with this guy saying you need a separate policy for flood coverage on your contents? Before he starts suing agents, he should learn something about the coverage and the duties of insurance agents.
Food For Thought
Everyone lives in a Flood Zone.
Some people live in Flood Zones that are much more likely to flood than others.
Those that choose to live in the designated Special Flood Hazard Area (1% Chance) or also known as the “100 Year flood zone have a 26% chance of flooding in a year’s time. What about the other 99% chance????
Everyone has Flood Insurance!
It just depends on how you want to handle your risk. Buy Flood Insurance and pay per year cost or self-insure and when you have the flood, go to the bank, take out a loan to make your repairs, and then buy a Flood Insurance Policy because the bank will want their interests covered from losses during future similar flood events.
I think maybe the TV stations are confusing “flood plan” and “flood plain”. Nat’l flood insurance (FEMA sponsored)is available only to owners of property located in communities that have met the requirements established by the Nat’l Flood Insurance Program. One of those requirements is to have a “flood plan” for the floodplain. Small wonder the public gets confused! I’m waiting for the day that HO3’s just cover everything that’s not maintenance related.
I completely agree. Document, document, document. But then you get people that get angry with you because you “require so many signatures” or “Can’t I just get the policy over the phone?”
Even with the documentation, they sometimes try and say that you “slid” that signature in there while they were siging other paperwork, or you told them it said something different. They will almost always try and point the finger elsewhere.
Heck, for every single auto policy I write, I have them sign a checklist that shows what coverage they are rejecting and which ones they are getting. It has massivly lowered the calls that go “I wanted ‘x’ coverage and you said I had it!” “Well insured, right here is the paper you signed when you signed up for the policy that says you didn’t want it”. That shuts it down pretty quickly. Is it any wonder that auto seems to be the only P&C policy insured’s and “quote, bind, and print” right away? Imagine if there were homeowner companies did that as well. Watch the flood gate of fraudulent homeowners claims come in.
Since when do you have to buy a different flood policy to cover contents? Once an again, an attorney that has no idea what he’s talking about. I guarantee the customer told the agent not to cover contents because they were complaining about the premium.
We have been through a lot here…just in the Nashville area alone more than 11,000 properties affected. Damage in only Nashville and only to residential & commercial property (not roads, governmental property, etc) estimated at nearly $2 billion. FEMA says we are farther along than NO was after a year. We are not waiting for gov’t & handouts, we are helping each other. Check out the Tennessean website for pictures.
The agents are in a no win situation. Since we had the flood, lawyers say agents should have advised clients to purchase flood insurance. If we had not had the flood, lawyers would be saying that the agents were wrongfully pushing flood insurance to boost their commissions.
That’s right….Selective memory sets in all the time when there’s a flood loss or any other loss. We P&C agents are exposed to this constantly but in the end it’s the insureds responsibility to READ the friggin policy. To offer every possible endorsement or additional coverage to a home policy would take all week, 8 hours a day to explain to some of these people. I have a sticker saying “NO FLOOD COVERAGE” to every application for home or property. If it’s not flood it will be something else like, “you didn’t tell me my Pit Bull wasn’t covered for theft”.
Sounds like “Katrina” all over again. Didn’t the insurance companies learn anything from that catastrophe?
It would be really nice to have flood as an option on all homeowner applications. If in doubt on a coverage add it to the policy and have the insured sign an endorsement to remove coverage after issue. I wonder if such attorneys have flood on their policy and if not are they suing their agent and company as well. If so the future cancellation could read “due to a measureable increase in the risk”. The insured is an… you fill the blank.
It would be really nice to have flood as an option on all homeowner applications. If in doubt on a coverage add it to the policy and have the insured sign an endorsement to remove coverage after issue. I wonder if such attorneys have flood on their policy and if not are they suing their agent and company as well. If so the future cancellation could read “due to a measureable increase in the risk”. The insured is an… you fill the blank.
On the other hand, didn’t the people buying insurance learn anything from that catastrophe?
I’ve a sign in my office that says “North Carolina’s flood zone shown in red”, with the entire state colored red. People read that and giggle, ask about the price then say that they’ll think about it. Outside of those in a flood zone that are required to maintain flood insurance no-body wants to buy it, and think that they will never require it.
One of the most common things I hear is “I’m the highest point in my neighborhood”
Only one way to solve this problem, Obamma health care, If you are in a flood zone and do not purchase folood coverage, then you can be fined not having coverage PERIOD
If you want insurance advice, go to an insurance professional, not an attorney. You don’t have to buy a separate flood policy for contents coverage.
The Nashville TV stations were telling people that they couldn’t buy flood insurance if they live outside a “flood plain.” Where does all of this bad information come from? Doesn’t anyone pay attention to all of these FEMA TV ads?
It doesn’t help when Insurance Journal is posting incorrect insurance advice.
One very large Nashville insurance agency sent out a flood insurance solicitation to all of their personal lines clients months before the flooding. Know how many responses they got back? TWO. Not sales, just inquiries.
People think, “It’s not going to happen to me.” When it does, they look for someone to blame then claim their insurance agent told them they didn’t NEED it. That’s why it’s so important for agents to have written procedures to offer the coverage and documentation that it’s been offered and declined.
I agree that Flood should be covered under the homeowners but without the option to remove it. Price it accordingly just like any other non removable coverage from the homeowners. This way, no more finger pointing and no one is left “out in the rain” after a water damage or flood loss.
Agents can’t practice law without a law license. Why should attorneys be able to provide insurance advice without an insurance license?
“Nashville attorney David Raybin said he is considering a lawsuit challenging insurance agents, who have a duty to explain coverage options to their clients.”
There is ample case law that insurance agents, in general, DON’T have a duty to offer specific types of insurance to their clients.
Also, what’s with this guy saying you need a separate policy for flood coverage on your contents? Before he starts suing agents, he should learn something about the coverage and the duties of insurance agents.
Shame on IJ for quoting this stuff.
Food For Thought
Everyone lives in a Flood Zone.
Some people live in Flood Zones that are much more likely to flood than others.
Those that choose to live in the designated Special Flood Hazard Area (1% Chance) or also known as the “100 Year flood zone have a 26% chance of flooding in a year’s time. What about the other 99% chance????
Everyone has Flood Insurance!
It just depends on how you want to handle your risk. Buy Flood Insurance and pay per year cost or self-insure and when you have the flood, go to the bank, take out a loan to make your repairs, and then buy a Flood Insurance Policy because the bank will want their interests covered from losses during future similar flood events.
I think maybe the TV stations are confusing “flood plan” and “flood plain”. Nat’l flood insurance (FEMA sponsored)is available only to owners of property located in communities that have met the requirements established by the Nat’l Flood Insurance Program. One of those requirements is to have a “flood plan” for the floodplain. Small wonder the public gets confused! I’m waiting for the day that HO3’s just cover everything that’s not maintenance related.
I completely agree. Document, document, document. But then you get people that get angry with you because you “require so many signatures” or “Can’t I just get the policy over the phone?”
Even with the documentation, they sometimes try and say that you “slid” that signature in there while they were siging other paperwork, or you told them it said something different. They will almost always try and point the finger elsewhere.
Heck, for every single auto policy I write, I have them sign a checklist that shows what coverage they are rejecting and which ones they are getting. It has massivly lowered the calls that go “I wanted ‘x’ coverage and you said I had it!” “Well insured, right here is the paper you signed when you signed up for the policy that says you didn’t want it”. That shuts it down pretty quickly. Is it any wonder that auto seems to be the only P&C policy insured’s and “quote, bind, and print” right away? Imagine if there were homeowner companies did that as well. Watch the flood gate of fraudulent homeowners claims come in.