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Insurance Business | 11 Aug 2017, 11:49 AM Agree 0
Not enough clients truly understand the coverage they need
  • not that hard | 11 Aug 2017, 02:46 PM Agree 0
    NO excuse to be that ignorant. Honestly how could your condo have any idea what contents each unit owner has. of course you need to insure that seperatly. The finer points about loss assessments and where exactly teh line is drawn between condo master and unit owner fair enough as is quite a complex issue.
  • Frank Cain | 11 Aug 2017, 04:18 PM Agree 0
    Coombe's comment re the contractual outline of coverage to the client from their lawyer is key. The first question the adjuster will have, or a lawyer if the claim goes that far is, what does the contract say. It is no different than a client signing a rental or lease agreement for property. What terms and agreements are contained in a contact between the landlord and the tenant relevant to coverage? However, what you will likely hit a brick wall with is expecting the your client's lawyer to explain to your client the coverages he should contractually have. That will be turned back to a matter between the broker and the client. And don't expect an insurer to play the part of a lawyer - their liability stops upon the receipt of an application.

    I am reminded of my first major account written that involved a principal candy manufacturer in Toronto with 26 stores between here and in Quebec. I secured from the client the lease agreements of all 26 stores and after reading that every agreement was different regarding terms of coverage, I visited the client's lawyer looking for advice. His advice? "Sell your client the broadest coverage available for each store".

    As a broker, while you may not be a lawyer, you are dealing with a legal contract every day of your insurance life. A contractual agreement can be pretty basic concerning the coverage a party to the contract requires. Follow it and remember to add to it in every way you can to protect your client as much as possible. Have him sign off anything he won't pay for.
  • Mike Wild | 13 Aug 2017, 05:37 AM Agree 0
    As with the special assessment for a shortfall in liability insurance look to buy the same product to cover you in case of a shortfall in the condo's property insurance.
  • Andrew | 14 Aug 2017, 05:17 PM Agree 0
    Insurers cannot charge enough to cover the costs of the losses and the revenues are no where near sufficient for a brokerage to make Condos a core product offering. I would suggest that the way condos are rated today requires a complete rethink when it comes to balancing risk, coverage, and pricing. While condo coverage is generally misunderstood by the consumer, the complexities of the coverage in relation to the strata policy makes this coverage a frustrating product for consumers.
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