The devastation that has ensued since the recent wildfires in California has changed the lives of homeowners who live there forever. While we cannot help with the grief of everything that was lost, our industry stands ready to help rebuild.

Policyholders may get sticker shock when they find out the cost to rebuild their home, particularly when it doesn’t match insurance policy replacement value estimates. Our guide outlines what factors go into replacement assessments, plus gives 5 reasons why a difference could occur. Underwriters should consider these issues when doing property evaluations.

Nationwide has estimated nearly two-thirds of homes in the United States are underinsured. The insurance and financial services company reported that the average underinsurance amount is 22% but that properties could be underinsured for as much as 60% or more. It’s important insurance personnel…

Drip. Drip. Drip. That bothersome sound that can keep your policyholders up at night may be the least of their concerns when it comes to water leaks. Out of sight, moisture from a seeping roof could be creating a haven for mold and mildew to grow in the vents, which could trigger health concerns, or the water trickling from a pipe could slowly be creating structural damage where the wet wood is rotting.

Wildfires decreased in number in 2019 compared to that of the previous year, but they still neared 50,500, according to the Insurance Information Institute. With those fires come risks to homes and businesses.

Structural diagrams can depict essential information needed during the underwriting process such as building shape and square footage. Sketching has been a traditional element underwriters take into consideration; however, the property insurance industry is trending that these drawings may not be as useful during the data-gathering procedures to decide whether to underwrite a policy.

The fields and trees that once surrounded the home of your insurance carrier’s potential new client have recently been replaced by a school on one side and a shopping center on the other. How does what’s next door affect someone looking to change their property insurance policy? Property loss and liability exposures caused by what’s adjacently located can sometimes be forgotten during the underwriting process both for new policies and renewals.

Sure, you know how old the house is, but did someone take note of those broken wooden steps in the backyard? The outside of the structure is in good condition, but those indoor pipes have seen better days. When evaluating a potential new policy or examining one that’s up for renewal, there’s myriad factors underwriters consider.

Your insured may be an ambitious Do-It-Yourselfer ready to tackle an at-home project or could be an experienced contractor on another day at the job. Regardless, the possible outcomes of a ladder-related incident are the same. The Center for Disease Control and Prevention reported 452 deaths from falls off a ladder in 2018, though thousands of injuries are sustained annually.

While reviewing insurance applications or policy updates, companies must consider a variety of factors to analyze the risk and decide whether they should accept the policy, and at what cost and conditions. With so many variables, it’s important to seek recommendations from an unbiased third-party vendor that can offer comprehensive insight about risk potential, while staying within the applicable underwriting window.

Ice dams are a common threat in northern states during the colder months, and they can result in sizeable property damage claims. Homeowners and building maintenance crews continue to be the front line against this threat. However, insurance professionals should also be knowledgeable in this area so that agents can provide informed coverage advice, underwriters can accurately assess risk, and adjusters can accurately evaluate claims.