This winter brought us some of the most severe weather we have seen in a very long time. Heavy snowfall came especially early this year. To illustrate the point, I skied in the Northeast in mid-November for the first time in my life after skiing more than 40 years. In addition to heavy snowfall, we also experienced extremely cold temperatures, strong winds, sleet and icy rain; all causing significant property damage. Every day, the news is filled with stories about the havoc created this winter for homeowners, motorists and businesses. Collapsed roofs and burst pipes, as well as stranded cars and trucks, also make the daily headlines. And, there’s the increased risk of fires due to space heaters, electric blankets, fireplaces and other means to keep warm.

For insurance agents and brokers, severe weather means more claims reported by customers. With large numbers of claims a result of extreme winter conditions, New York insurance agents and brokers should be certain they are following good claims handling procedures. However, even before a claim is reported, concerned homeowners, tenants and businesses might question their coverage in view of news stories suggesting they should review their insurance policies and address any questions with their agents and brokers.

Since insurance companies ultimately make the determination of whether or not to pay a claim, the question of coverage for a particular type of loss is most appropriately answered by the insurance company, not the agent or broker. If you are faced with a customer who inquires about coverage for a particular type of claim, it is a good practice to ask the customer to put the specific inquiry in writing. This also is true whether the question comes from a customer, a mortgagee, other interested party or even another broker. Having the request in writing will help avoid any confusion as to what information is being sought and will provide an easier means for transmitting an inquiry to the insurance company. The quickest and most efficient way to transmit the request is by e-mail or fax. As a general rule, do not summarize or editorialize the inquiry. While your comments might be submitted with all the best intentions, in our experience it can lead to an inaccurate translation of the question or possible confusion.

Keep in mind that the more specific the inquiry, the more likely it is that an accurate response can be provided. For example, if the customer asks “what is covered under my policy,” it would be almost impossible for an insurance company or anyone else to provide a complete and proper response. Similarly, if the question is whether “collapse” is covered, the question might still generate confusion as to what type of collapse or what damages the customer is seeking to cover. On the other hand, if homeowners ask more specifically whether they are covered for water damage if pipes burst as a result of freezing temperatures, they are likely to get more accurate responses.

After providing a written inquiry to the insurance company, you should then request the company provide its response back to your agency or brokerage in writing. If a request for a written response is rejected by the insurance company, some red flags should be raised. Nonetheless, in order to exercise caution, it might be wise to confirm in writing any conversations regarding the coverage question and save the writing as documentation of what occurred. It is also wise to forward the verbatim response from the insurance company back to the person who asked the coverage question. Doing so will help avoid any miscommunication or information getting lost in translation.

As with any communication that concerns issues of coverage, the agency or brokerage should retain the written inquiry, along with the transmittal email or telefax and the response from the insurance company, in the customer’s file so information is available in the event an issue arises.

Careful handling of coverage inquiries can provide good customer service and help put customers at ease. In addition, the careful handling of customer coverage questions will better enable clients to understand and address any gaps that might exist in their coverage. Finally, allowing insurance companies to respond to inquiries will help agencies or brokerages protect themselves against possible errors and omissions claims and lawsuits that could arise in connection with the coverage in question. The prudent insurance agency or brokerage handling coverage questions in this manner will not only protect its customers but itself in the process.