by Louisiana P and C Agent » Tue Mar 01, 2011 02:34 pm
I need to explain to a person the difference in which perils are covered by a DP1 compared to a DP3. They understand the replacement cost but are more concerned about actual perils.
Posted: Wed Mar 02, 2011 03:05 am Post Subject:
Explain the benefits of an open peril policy -- anything not excluded is covered -- and use a broad form peril, such as falling objects, or weight of ice and snow, to give an example of something not covered by a DP1.
Posted: Fri Mar 04, 2011 02:50 am Post Subject:
So if a person had a DP1 and during a hurricane a tree fell on it they would not have any coverage?? Only if the "wind" blew the roof off, etc??
Posted: Fri Mar 04, 2011 03:02 am Post Subject:
I would not use the hurricane/tree example, since it may be covered if the hurricane was the proximate cause of loss.
Simply, a tree falling and crashing into the house, or a plane drops an engine on the house (ever see Donnie Darko?), or a meteorite. These events may sound remote to yuor customer.
You should be able to call your claims department and get actual claims paid out that were not covered by DP1 perils.
Posted: Fri Mar 04, 2011 03:32 am Post Subject:
Thanks for your advice. I have had several customers who can't afford DP3 coverage but wanted more than just "fire coverage". They were wanting to know what else they would be covered by if they had just a DP1 and we live in hurricane prone country.
Posted: Fri Mar 04, 2011 08:16 pm Post Subject:
Oh, I thought you were trying to convince them to buy a DP3 over a DP1.
If they are buying a DP1, stick to explaining the perils as described in the policy. I would have them sign they declined a DP3, too.
Posted: Fri Mar 04, 2011 10:29 pm Post Subject:
Since we are independent and have quite a few companies to write for I think I reallly need to get a copy of each one's policies so we can have it on hand to describe the difference in the coverage. I want to be very careful with what I tell a customer as we are in a small town and word of mouth could ruin a biz reputation.
Posted: Sat Mar 05, 2011 01:41 am Post Subject:
Good idea. I imagine your companies use the ISO forms, and do not file their own forms. Even if some of your companies file their own form, I would be very surprised if they do not cover the exact same perils on the DP1.
I often refer to the exact language of the policy, so I agree you should have copies of the policy contracts.
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