1. Personal Insurance Practice – Best Practices Study, 2010
1. Primary Property
Our carrier programs with Chubb, ACE Private Risk Services and Fireman’s Fund Insurance
specialize in properties of $750,000+
Our markets with The Hartford, Safeco and The Republic Group specialize in properties from
$300,000+
We have international specialty carriers such as Lloyds of London, and many other options.
Direct insurance companies are typically less competitive in providing broad policy
endorsements and specialty coverage options
Property insurance is typically the key part of any insurance program, and many insurance
carriers offer companion credits and premium discounts when combining auto, watercraft
and other personally-owned policies as part of that portfolio.
Primary property can be defined as a single-family home, condominium or apartment.
1. Condominiums & Town homes
Condominiums are set up for the unit-owner to insure all personally owned contents (similar
to an apartment or co-op policy) and will be responsible for any alterations or additions to
the unit’s features (including cabinetry, flooring, wall covering, appliances and fixtures.)
It is of key importance that the policy holder be familiar with the terms and the bylaws, with
specific details of what is the insuring responsibility of the condo owner.
Become familiar with common area assessment rules in the event of a group liability claim.
Condominium insurance is one of the most affordable based upon the lesser chance of a
weather related claim. The largest risk is water damage from adjacent units, theft and fire.
2. Secondary or Investment Properties
Our agency is licensed in all 50 United States, and every Territory & Province of Canada.
We have appointed and specialty markets for seasonal properties, investment properties,
and capabilities to offer worldwide programs for our clients.
Most insurance carriers have a limit on investment properties that are personally owned
before they consider them to be a true business exposure, in which case business insurance
can be sourced through our agency.
2. 3. Watercraft
Our agency has programs available for personal watercraft, hobby-craft, cruisers, and other
boats that are typically less than 36 feet in length.
Our agency also has specialty programs for Yacht, and watercraft in excess of 50 feet in
length.
We can place yacht and personal watercraft slipped in ocean-bound marinas, insure yachts
that hire full crews, and even write policies on high performance and classic watercraft.
4. Auto
The minimum auto single-limits I recommend that our clients carry are $250K/$500K/$100K;
this means $250K payout per person, $500K payout per accident, $100K payout in property
damage. This is traditionally the minimum policy limit to qualify for the personal umbrella.
I suggest combined-single-limits as opposed to traditional single limits, so there are lesser
restrictions in the event of a more serious loss that may exceed the per-accident policy limit.
o For example: If you carry $500K combined-single-limits on your auto, you will have
$500,000 per accident aggregate limit, no separate limits on property damage or
per person limits.
Be familiar with the difference between Actual Cash Value, Agreed Value and Stated Value
and how your auto policy responds. If your auto is worth $100K+, I suggest Agreed Value, so
you know exactly what your auto is insured for in the event of a loss, and there will be no
actual cash value and depreciation cost debate in salvage or a claims payment.
5. Personal Liability
An ‘umbrella policy’ is utilized when your liability limits have been reached on your property,
auto or watercraft policies.
o For Example: In the event a policy holder has split limits on their auto policy of
250/500/100, and a claim and subsequent lawsuit exceeds $500,000 –the umbrella,
at that point, would initiate extended coverage when the policy limits are reached.
Umbrellas can cover specific liability risks for policy holders such as investment and seasonal
property, jet skis, recreational vehicles, and other factors that could produce a higher level
of risk and liability. The umbrella policy also provides coverage for legal defense and counsel.
6. Jewelry Collections / Fine Art / Antiquities
Both Chubb and ACE Private Risk Services have the broadest jewelry coverage available.
o Chubb’s rate is typically $2 per $100 of value; ACE is typically $1.30 per $100 of
value. Mid-market carriers such as Safeco can offer a rate of $.90 per $100 of value.
Special coverage for breakage, theft, pair/set loss and mysterious disappearance.
We suggest individually scheduling jewelry items that are valued over $5,000, and other
sentimentally important items that you want specifically scheduled. We insure items based
upon full replacement cost, and we suggest that re-appraisals on significant collections to be
conducted every 5-7 years.
Insurance carriers have corporate and independent regional resources for policy holders that
request fine arts appraisals, jewelry collection appraisals, and personal inventory services.
3. 7. Yacht & Aviation
Yachts and Personal Aviation requiring navigational and operating crews belong on a
specialized policy –which we have markets for.
Yachts and Aviation can be written in the name of a Limited Partnership, Trust or a business
name, as there are ways to evaluate if it is more appropriate for a personal or business use
policy.
8. Commercial or Business Exposures
Our agency has the largest, independently-owned property & casualty commercial
operations in Dallas/Ft. Worth. My commercial colleagues work with me as a holistic team
and offer our clients a significant resource to address their business needs and keep
everything appropriately managed with one agency.
9. Complete Family Office Insurance & Consultation
The Personal Risk Management Practice at Swingle Collins & Associates offers a specialized
program appropriate for the complexities of insuring asset-rich individuals and families. Such
clients typically employ the services of private counsel or a family office manager to address
all aspects of risk avoidance and policy management to adequately protect the family
assets.
10. Swingle Collins & Associates’ - Comprehensive Risk Management Analysis
Our experienced team of specialists will provide a comprehensive risk management review for each client.
Here are the steps we take in the referral or prospective client review process:
Gathering of basic underwriting information (DOB, SSN, DL#, Address, Contact Info)
Request a current copy of the insurance declarations page for all personal insurance policies.
o A declaration page is a summary document that shows policy limits, deductibles,
endorsements, credits, issuing companies, renewal dates, etc.
Perform an analysis of the current insurance policies, evaluate the exposures, and draft out a
risk management plan specifically for the prospective client.
Market the prospective client with two or more appropriately selected insurance programs.
Complete a client summary and analysis of the current insurance program; produce a side-
by-side comparison, along with any other recommendations or policy language clarifications.
Should the prospective client wish to proceed with a proposal, a proposal and payment
options plan will be provided as a formal offer.
Upon request, at policy renewals or at any time, my team will manage the insurance
program, personally; because when you work with us, you work with us.
4. As entrepreneurial Risk Management specialists with expertise in all personal property
and casualty products, the team at Swingle Collins is ideally positioned to address your
unique family office because of a number of important advantages.
When financial planners, estate planners, CPAs and family office managers expand the
range of services they provide, they are also increasing their exposure to errors and
omission liability. Although a client’s private counsel or advisor may enjoy a relationship
of mutual trust with the families they serve, they may find themselves having to defend
against claims made by their own clients. Family office exposure can include breach of
fiduciary duty or professional malpractice. Potential settlements in such cases could be
devastating – unless the family office and those who provide its services are
appropriately protected with commercial insurance coverage.
Swingle Collins & Associates provides access to a comprehensive Wealth Managers
Insurance Program that is tailored to meet the unique insurance needs of family offices
and planning teams, including:
Professional liability, and Director & Officer Liability
Family trust and trustee liability
Employment practices liability
Private fund coverage for investment entities
Generational family wealth may be jeopardized without access to experienced
specialists in the area of insurance and risk management; we both recognize and
appreciate that consultative responsibility.
My dedication to my business partners is to become a trusted and invaluable part of the
client review process, and to reflect the same professionalism that you employ in your
own business practices. JMP
Jason M. Pond
Swingle Collins & Associates
13760 Noel Road, Suite 600 Dallas, TX 75240
Direct Line (972)715-8703
Mobile (972) 342-8645
Fax (972)387-3808
Jason.pond@swinglecollins.com