Then there's the fear of being wrong on any coverage estimates for B and C. Why are agents afraid of OLC estimates when they seem perfectly comfortable making what are basically similar “wild guesses” at building values? Why do percentages of underinsurance applicable to commercial buildings run upwards of 40%? And those are direct losses—add the missing or minimal OLC, and commercial insureds are in for a very rude awaking come claims time. Yet agents who guess at building values suddenly develop high anxiety when confronting OLC.

I think agents should be very afraid of being wrong on any estimate of needed property coverage. And the solution in both situations is the same: hire an outside expert to get it right. Any reputable contractor involved in local construction can provide a more accurate replacement cost estimate. Let's stick to insurance and risk management, and add to our team those who do well what we don't—like determining proper replacement/reconstruction costs, direct or OLC.

Perhaps this summer, growing season should include your team of professional resources. It may be that the bloom of your insurance harvest—increased proper coverage with decreased E&O—will rival those May flowers.

Who says insurance can't be beautiful?

Outside Experts at Work

We once owned an old home with two electrical meters. The original well was once shared by several neighbors, who installed their own meters over the years. Ours was the only house on the obsolete meter—at a cost of $15 a month. But before the utility would disconnect it, an electrician had to connect the well power line to our house meter, a job I estimated at around $150. But under new county zoning requirements, new power lines had to be buried, which would involve tunneling under our concrete driveway. We ended up paying the $15 a month.