Question

A customer service representative (CSR) receives a call from a customer who is considering purchasing a house in the country that has been converted from a century-old general store. The customer has rented apartments in the city her entire life, and this new retirement home would be her first homeownership experience. The customer requests a quote for whatever insurance coverage is normal. Which one of the following would be the CSR's best option for identifying and resolving potential problems that might result from ownership of this home and the coverage required to adequately insure it?

A. Insure the home as requested, advising the customer that a property inspection will be required
B. Explain that specialty policies with coverage limitations might be the only option for this older home
C. Refer the customer to an agency specializing in insuring old and unique properties
D. Research loss exposures that might exist in an old converted commercial building, and give the customer a list of questions to ask before the purchase

Answer 1

The CSR's best option is to research loss exposures for an old converted commercial building and provide the customer with relevant questions to ensure appropriate insurance coverage. An informed approach that considers unique property risks is essential for adequate homeowner's insurance.

Step-by-step explanation:

The best option for a Customer Service Representative (CSR) to identify and resolve potential problems that might result from ownership of a home that has been converted from a century-old general store and the coverage required to adequately insure it would be to research loss exposures that might exist in an old converted commercial building and give the customer a list of questions to ask before the purchase. This approach helps in understanding the specific risks associated with the property and enables the CSR to provide a more tailored insurance quote that covers these risks. Option D suggests a proactive approach which includes research and customer education, leading to an informed decision by the customer.

An insurance premium is the amount a customer pays for an insurance policy, and it reflects the risk profile and the coverage provided. Insurance companies often require a property inspection, especially for older homes, to assess the risks and determine the appropriate coverage, which may involve specialty policies with possible limitations.