Resources & Insights

Case Study: The Importance of Bridging Coverage Gaps

July 18, 2017

THE CHALLENGE: A half-dozen insurance companies. More than a dozen renewal dates. Five agents. In short, a paperwork /administrative nightmare. That was the situation our client was dealing with when we sat down for our first meeting. The scenario was one we’ve seen repeatedly, especially with clients with homes in more than one state. The lack of a clear picture was the least of the challenges this particular client faced. Discounts were being lost. The answer to the simplest question often required she make multiple calls. Worst of all, none of the insurance agents who earned thousands of dollars in annual commissions was acting as her advocate. There was no communication,  and no one was willing to step up and take the lead.

OUR SOLUTION: There are plenty of insurance carriers who do a great job with the everyday affairs of most Americans. There are few insurers, however, that are properly equipped to address and cover the possessions of high-net-worth individuals and families. Moving this client to a carrier with the wherewithal  to handle a complicated account was our first step. For starters, that meant one policy effective date and one bill. Just as importantly, it meant that analyzing our client’s needs at renewal each year would become a much more streamlined process – and any potential gaps could and would be quickly identified.

THE OUTCOME:  Our review of the client’s existing policies uncovered a number of deficiencies, or coverage gaps, not the least of which was the lack of an umbrella policy. Adding an umbrella cost relatively little and immediately meant she’d be covered against any claims that might have quickly depleted the limits of her base policy. Moreover, we shifted her auto coverage from “actual cash value” to “agreed value.” The difference? With actual cash value, her previous insurer would have paid her the market value at the time of a claim. With agreed value, the insurance company covers whatever value was agreed upon at the time the policy was written, regardless of the age of the vehicle or number of miles on the odometer. That’s especially important for anyone who owns an antique or just an expensive car. The end result? We created a coverage plan significantly more robust than what our client had been paying for. Not only was she able to secure broader coverage, but now just one carrier and one agent handles most of her insurance needs and she enjoys worldwide coverage. Her premiums, which had been about $18,000, did go up. By a touch more than the price of a nice lunch.

Want to learn more? Contact CCIG Private Client Advisor Mike Rosser 720-212-2068 or

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