We have all seen the end of the world movies. The wasteland of stuff that is not covered – no catastrophic events, no confiscation by government authorities, no radioactive contamination, and no nuclear weapon discharge. Even then, the agent is thinking – how can I get that coverage.
Most likely, if something should occur, the government will step like they did after September 11th, and pass a legislation that encourages the insurance industry to re-evaluate. Further, our government will also help carry the burden as they have done in the aftermath of natural disasters. In the meantime, it is always smart has a workaround in place.
For me those movies allow the real beauty of insurance to shine. Specialty companies allow underwriting to work magic. Underwriters can add/delete coverages to the policy. If your underwriter is going back and forth with you questioning things, don’t knock it, they’re trying to put something together for you.
In fact, if you need something more specific to fit your need, in most cases, you can get it. For instance, the named driver exclusion on automobile policies. If you have a less worthy driver in the household, but the rest of the risk is clean, you may be able to exclude that driver. That means, by signing a document, the insurance company is waived from covering any damage that driver is liable for over the course of the policy.
That excluded driver, he can be placed on a non-standard automobile policy. This offers minimum state limits and coverage for poor drivers and insureds with a bad credit history. This might entail further requirements and state forms like SR-22’s, however, it is still an easy fix.
What about the insured that legally races his vehicles? Yes, there are policies for this type of usage through specialty carriers and many racetracks can direct you and your insured as well. They may even offer additional coverage for the trailer that carries the car to the race.
Generally speaking, in the homeowner’s area, there are different types of policies, basic, broad, or special. Even here, you can add extra coverage for sewer backup, mold, additions, appurtenant structures, or scheduled items. In some states, like California, additional policies exist for earthquake and, like Florida, policies for sinkholes. Maybe your insured has renters, household staff, or a home business. These can be accommodated and linked to the homeowner’s policy through some companies.
In commercial insurance, the options for the good risk are practically limitless. There may be a higher premium involved for such coverages and additions. Different options of payment or coverage are always a plus.
Remember, most insured’s think an insurance policy is a saving account for when bad things happen. They are not thinking about risk, reserves, or premiums. If the agent has done their homework about the insured and gone over all the exclusions with them, when that adjuster arrives, yes, all they should expect is a check.
Exclusions are in place to save premium and reserves. If the risk is good, and the company is willing, the underwriter might be able to remove some exclusions. Maybe there would not be insurance coverage for those end of the world scenarios, but there should be some underwriting magic to help indemnify the good risk for tomorrow’s claim.