E&O Tip: Using a Homeowners Disclaimer on Proposals & Renewal Corresp.

When writing Homeowners policies that include terms that change as the property ages, it’s suggested to use a disclaimer on proposals and renewal correspondence. This will bring to the client’s attention that they should review their terms as the home ages. It is not recommended to point out specific policy provisions as this can be problematic if some are noted and others are not. The following is sample disclaimer language: 

Keep in mind that the age and condition of your home can affect how your coverage applies in the event of a loss. Older homes may be subject to special limitations or may be covered on an actual cash value basis rather than replacement cost. Additionally, as your home continues to age, coverage terms or eligibility may change over time. It is important to regularly review your policy and consult with your insurance representative to ensure your coverage keeps pace with the condition and needs of your property.