Nonparticipating Insurance Definition
The policyowner does not receive a dividend with this type of policy.
The January edition of the CPCU Society's eJournal, entitled "Hurricanes, Fires and Other Catastrophes: Are You Underinsured?" examines some of the fundamentals for homeowners to consider when purchasing insurance. The CPCU eJournal, a monthly electronic publication available to CPCU Society members, provides a medium for the expression of opinion and the presentation of pertinent articles on subjects of interest to financial services and property and casualty insurance professionals.
Hartan Brokerage Inc.
Greg Nelson, CPCU, AIM, gives sound advice, including the following six tips, that even the most financially savvy homeowners may not have considered:
First Americans Insurance Service, Inc.1) Take interest in identifying the proper amount of coverage for your home. Don't rely on your agent or your mortgage lender to pick the right amount of coverage.
The Wood Insurance Group, Inc.
2) Check your home's replacement cost amount at least once a year.
Norman-Spencer Agency, Inc.
3) Update your policy. Make sure you have building code and ordinance coverage on your policy.
NetRate Systems, Inc.
4) Be overly conservative in your estimate of the replacement value. It's better to have more coverage than you need than to end up short.
5) Get an appraisal or inspection if you can afford it.
6) Don't let your voluntary policy expire. If you fail to renew your voluntary policy, your mortgage company will probably buy a policy for your property, which could be very expensive without providing the same broad coverage as most voluntary policies.
"A major catastrophe is not necessary for a homeowner to find out they are grossly underinsured. Anyone who suffers a major fire, water or other loss may discover that they do not have enough coverage on their home. If the loss is serious enough to require major reconstruction of the home, the owner may find that because of inflation, building code changes, location of the property and other factors, that they simply have not bought enough coverage to rebuild their home," writes Nelson.
The CPCU Society's eJournal has a new editor, David C. Marlett, Ph.D., CPCU, who is the director of the Brantley Risk and Insurance Center at Appalachian State University. He previously served as assistant editor of the eJournal, and has authored articles in the CPCU Journal, eJournal, and other industry publications. For more information, or for a copy of this article, please contact the CPCU Society at (800) 932-2728, ext. 2738.