Episode 1: Repudiation of Personal Lines short term claims
Make sure you cover all your basis at renewal of your client’s policies.
I have mentioned in previous posts that there is a duty on you as broker to highlight areas where your clients can pick up problems with claims. The renewal date on your client’s policies is an opportunity to discuss
these with them and make sure you are aware of any changes that might have an influence on claims later.
If you do not do this you can pick up liability and problems when claims are repudiated.
I will be sharing the top reasons why claims are repudiated on personal lines policies over the next couple of weeks. Make this part of your renewal process and document your discussion carefully. Always a good idea to tape these discussions and have them on record.
General Conditions of the policy:
Property insured on the policy is vacant vs. occupied. Make sure that the client knows that he/she needs to inform you if any of their properties are vacant or going to be vacant for more than 30 days.
Leaving a property vacant is a material fact and needs to be disclosed to the insurer. It brings about a change in the risk that is insured and depending on the policy wording of the insurer can lead to problems.