Insurance Premiums: Reduce Coverage for Other Structures If There Aren't Any.
Most standard home insurance policies provide a separate limit of coverage for losses to structures on the residence property that are not premanently attached to the Dwelling. Normally granted as 10% of the Dwelling limit, this limit can pay for covered losses to fences, sheds, gazebos, detached garages, etc.
But if your client doesn't have any detached structures, see if the amount of coverage for Other Structures on their home insurance policy can be reduced in exchange for a premium credit. Be careful not to leave your client underinsured, of course, but if your client's home is insured for $750,000 and they don't have any detached structure on the property, reducing the standard $75,000 limit for Other Structures to something that is more appropriate makes a lot of sense because it saves money on wasted premium that can be better allocated toward increasing liability limits, raising the Dwelling limit, or something more relevant.
Mechelsen, Inc. Darren McGraw, MBA, CIC mechelseninc.com
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