Document coverage rejections. A majority of the agencies reviewed do not have evidence in their files when insureds reject offers of higher limits or other coverages. It is extremely important to document when broader coverage, higher limits, or increased values are rejected by having the insured sign and date an acknowledgement of the offering. Without this documentation, insureds frequently develop amnesia on the witness stand following an uninsured or underinsured loss. Document UM and UIM coverage decisions.
Most agencies keep no evidence that insureds have rejected higher limits.
Also, some companies would not write higher limits, but there is usually no documentation that the insured has been so advised and has accepted the lower limits. Document the source of property values. On many occasions our analysts found that the agencies have accepted the insured's estimates for values on buildings or contents. Ninety-five percent of the agencies studied fail to note in the insured's file when the insured establishes the property values to be insured. Inspect insured properties.