E & O RISK REDUCTION
BEYOND THE APPLICATION
BUILDING A BETTER HOMEOWNERS ASSESSMENT by Dave Hulcher, KAIA
For many insurance agents, the homeowners application has become increasingly automated. Data prefill, aerial imagery, public records, and predictive analytics can provide significant information about a property before a conversation ever takes place. Yet one truth remains unchanged: the most effective risk management tool available to an agent is still a thorough conversation with the customer.
A comprehensive homeowners exposure review is about much more than gathering underwriting information. It is an opportunity to identify uninsured exposures, uncover coverage gaps, improve account rounding, and demonstrate professional expertise. Just as importantly, a documented risk review can support an agency ' s E & O risk management efforts by showing that important coverage discussions occurred and recommendations were made.
START WITH OWNERSHIP AND OCCUPANCY
Many coverage issues begin with a misunderstanding of who owns the property and who actually lives there.
Agents should verify whether all named insureds reside in the household, whether the home is owneroccupied, and whether there are any non-occupant owners with an insurable interest.
Situations involving divorced spouses, inherited properties, family-owned homes, or trust ownership frequently create coverage concerns.
Trust-owned homes continue to become more common as clients engage in estate planning. Agents should determine whether the property is titled in an individual name, LLC, trust, or other legal entity. Depending on the carrier, forms such as the Trust Endorsement( HO 05 43) may be needed to properly address trust ownership interests.
Occupancy is equally important. Seasonal homes, secondary residences, and properties that remain vacant or unoccupied for extended periods may require specialized underwriting treatment. A home that sits empty for several months each year presents a very different exposure than a primary residence occupied year-round.
20 KANSAS INSURANCE AGENT & BROKER