EVALUATE WATER, FLOOD, AND EARTHQUAKE EXPOSURES
Every risk review should include discussions regarding flood exposure, sewer backup exposure, sump pump systems, foundation drainage concerns, and utility line vulnerabilities.
Many homeowners mistakenly assume flood damage is covered by their homeowners policy. Identifying flood exposures and discussing available flood insurance options should be standard practice. Depending on the client ' s needs, this may include National Flood Insurance Program coverage or private flood insurance alternatives. In Kansas, it is a 60 %/ 40 % split federal vs. private flood.
Likewise, sewer backup and sump overflow losses continue to generate substantial claims. Water Backup and Sump Overflow endorsements often represent some of the most valuable coverage enhancements available to homeowners. We continue to see E & O claims related to sewer and backup coverage.
While earthquake exposure may seem less relevant in some regions, agents should still understand local seismic exposures and discuss available coverage where appropriate.
CONDUCT A THOROUGH PERSONAL PROPERTY REVIEW
Personal property discussions often receive less attention than dwelling coverage reviews, yet many coverage disputes arise from personal property limitations. Ask about jewelry, firearms, collectibles, fine art, silverware, musical instruments, memorabilia, and high-value electronics. Many of these items are subject to special limits within the homeowners policy. Clients frequently assume they have full coverage only to discover limitations after a loss.
Coverage solutions may include the Scheduled Personal Property Endorsement( HO 04 61), increased special limits endorsements, or valuable articles programs. Clients with significant collections should understand the difference between blanket coverage, scheduled coverage, agreed value provisions, and appraisal requirements.
EXPLORE LIABILITY EXPOSURES IN DETAIL
A thorough liability review should include questions regarding swimming pools, hot tubs, trampolines, playground equipment, and treehouses.
Pet ownership remains another critical discussion. Agents should document breeds, ownership history, and any changes that occur during the policy term. New pets acquired between renewals can create underwriting issues if not disclosed.
Agents should also discuss personal injury exposures and determine whether Personal Injury Coverage should be added when available. This endorsement may provide protection for claims involving libel, slander, defamation, invasion of privacy, and related exposures.
PAY ATTENTION TO HOUSEHOLD COMPOSITION
Coverage questions frequently arise when adult children, elderly parents, roommates, domestic partners, caregivers, or non-relatives reside in the home.
Many clients assume everyone living in the household automatically receives coverage. However, policy definitions may not extend property and liability protection to certain residents unless appropriate endorsements are added.
Questions about resident relatives and non-relative household members should be part of every annual review. Particular attention should be given to the children as they become of driving age to be sure coverage is appropriately included.
22 KANSAS INSURANCE AGENT & BROKER