Coinsurance In Property Insurance

This weekend I spent some time reviewing renewal policies for several clients. An issue jumped out that I have not mentioned in a while.

Coinsurance is a penalty clause in property insurance policies that requires a certain percentage of the property's value to be insured.

Example: A building with a replacement cost of $1,000,000 and an 80% coinsurance clause must be insured for at least $800,000 (80% of the $1,000,000 value), or a penalty is assessed at the time of a loss.

For the insurance buyer, coinsurance is a bad thing. It can only hurt you in a loss.

Coinsurance can be removed from your building and contents coverage - it's called agreed amount. Sometimes you can also add agreed amount to business interruption coverage.

Watch out for coinsurance in other policy sections too. If you have inland marine coverage or a separate section for computer coverage you may find coinsurance penalties "hidden" in the policy language.

Affordable Auto Insurance

By Terry Ross

It’s amazing how much you can save on your auto insurance if you are prepared to shop around and if your are looking for affordable auto insurance then there is no better place to start than on the internet.

A good percentage of motorists are paying auto insurance premiums that are just too high because they fail to get competitive quotes when it comes to renewal time. There are plenty of insurance companies that offer more affordable auto insurance if you are prepared to take a little time to look around.

I know people that have seen nearly a 50% drop in auto insurance premiums just by swapping to a more affordable auto insurance provider.

A lot can change in just a year so just because you believe you got the best possible quote when you took your auto insurance policy out it doesn’t mean that you have the most affordable auto insurance now.

• For a start you have another year’s no claims and you may have changed your car and just used the same auto insurance company for speed and ease. However, even if your auto insurance provider offered you the most affordable solution for one car it doesn’t mean to say that you won’t get a more affordable auto insurance quote if you have changed your car.

• Then there are new auto insurance providers coming into the industry all the time and others may have changed their pricing structure in order to gain a bigger percentage of the auto insurance market.

• Your existing auto insurance company may have decided to increase their premiums at a higher rate than their competitors which could mean that you can get more affordable auto insurance through another auto insurance provider.

• You may have changed the number of named drivers or the youngest driver on your auto insurance policy may have reached a milestone age which will help make your auto insurance more affordable.

• You may have moved house into an area which insurance companies deem safer and will be prepared to offer you a more affordable auto insurance premium.

There is any number of reasons why you should always seek competitive insurance quotes and just because you have been saddled with high car insurance premiums in the past it doesn’t mean to say you shouldn’t seek more affordable auto insurance in the future.

Use the internet as a good starting point prices on the net are getting more and more competitive with discounts being offered if you buy your auto insurance online. If you aren’t sure which companies to get affordable auto insurance quotes from first you might want to try a couple of the larger insurance companies who have been in the auto insurance business for a considerable period of time such as Progressive Insurance or State Farm Insurance.

Happy hunting, go experience the pleasure of snapping up a bargain, your quest for affordable auto insurance could leave you with a lot of spare cash to burn!

For more about auto insurance visit 24-7-insurance.com

Article Source: http://EzineArticles.com/?expert=Terry_Ross

Who Needs Insurance Help

The owner of a high tech company wrote me a note yesterday asking what issues he needs to consider as he moves forward with a plan to utilize contracted consultants. I told him that he has many issues, including:

--Finding the right professional liability insurance
--How will liabilities flow from your consultants?
--What contractual issues arise?
--What insurance should you require of your consultants?
--How will you know if the insurance the consultants buy meets your requirements?
--Are your consultants really employees or contractors?
--How do individual state laws affect your need for workers' compensation?

Insurance Bid Process

I'm urging my clients to bid their insurance. The past few months have proven to me that insurers and agents do a better job of pricing renewals when there is real competition for the business. A few months ago I brought this point out in this newsletter. The September and October renewals have just confirmed that point - in spades!

I had several full bid projects. They resulted in great premium savings for my clients - as much as 40%. Coverage also improved.

I had several clients who renewed coverage with their current agent and insurer without competition. In most of those cases, the incumbent insurer asked for a premium increase. I had to kick and fight to get a renewal at last year's rates. Granted, if the account went to bid last year there may have been less room for movement this year. However, the marketplace clearly reacts to competition by providing better coverage at a better price.

I'm catching some heat from agents on this issue. I don't care. If you want the best coverage at the best price you need to bid your coverage. If you bid last year ask your agent to convince you why you shouldn't bid again.

Traditionally insurance programs are only put out to bid every three years. The insurance companies are taking advantage of accounts that don't go out to bid.

If you have not been out to bid in the past three years you will pay way too much for your insurance if you don't bid this year.

I insist on a fair bid process. I try to limit the competition to two agents - incumbent and one more. Sometimes I'll bring in a direct writer or a special industry program. Nobody gets any special treatment. I do not disclose premiums until the process is over. Incumbent agents should not get the last shot. Almost anyone can hit a stationary target in this market.

Clearly price is not the only issue in insurance. Quality of agent and insurer is important. Quality of coverage is vital. A bid process done correctly can do that.