Agents must educate their clients regarding the scope of coverage as well as fundamental exclusions in a policy, so that these insureds will understand and be willing to accept additional coverage options. If a client rejects these coverages, it is important to obtain a "not wanted" statement, initialed by the insured. Large commercial and institutional insureds are familiar with loss of income insurance and include it in their insurance programs. But many smaller buyers, although they are protected for property loss, either are not familiar with loss of income protection or, for some reason, do not carry it. They are the ones who may not survive a devastating loss. Widespread flooding also calls attention to the scope of the problem. Adjusters hear many complaints from insureds whose homeowners policies do not cover damage caused by flooding. Communication with insureds can bring about better understanding of policy coverage and can reveal exposures that require additional coverage or policy modification.
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