Insurance Parameters Setup Guide

Did you know that you can adjust the color-code parameters for insights on your clients' Insurance Reviews? You're in the right place to find out how!

Holistiplan realizes that firms have different ideas on what insurance parameters are appropriate for their clients. Firm Admins can customize firm-wide parameters that signal when an item is red (needs immediate attention), yellow (worth a discussion), or green (good to go), along with several other indicators that determine which insights are triggered on a specific Insurance Review.

There are three main sections within Insurance Parameters: General, Home, and Auto. Completing these fields is essential for determining the color-coded insights (red, yellow, or green) that appear in your reports for these specific sections. Each section has default settings that we recommend customizing to fit your firm's specific needs. 

Where to Begin

To set those parameters, Firm Admins can navigate to the homepage and click on Settings, then select Insurance Parameters as seen below.

General

If your firm advises clients on the importance of shopping for insurance, this parameter can be set to the frequency you believe clients should review the market. The insights will update the color based on the 'date last shopped' field completed in the home, auto, and umbrella icons on the review screen. The default age is set to 3 years.

Home Insurance

Lower Limit Warning and Upper Limit Warning:

The lower and upper limit warnings refer to the dwelling's Replacement Cost. This section allows you to set data points to trigger insights based on the rebuild cost listed on the declaration pages and the value shown in the home icon on the report page, which reflects the replacement cost calculated using our CoreLogic tool or entered manually. The default percentages are set to 80% for the lower limit, and 100% for the upper limit.

Home Personal Property Method:

This refers to how “personal property” is handled. There are three ways to trigger the insights and determine which colors will display. The default method is set to the Estimated Personal Property method. Options include:

• Estimated Personal Property: This is entered within the home icon on the insurance review. Which looks like this: 
  
  
  
  
• Percent of Dwelling Adjusted for Spending - This is used only with the 'percent of dwelling adjusted for spending' method in the Home Personal Property Method field. The report will trigger a warning if the property coverage is less than the dwelling coverage multiplied by the warning percentage. The warning percentage can vary based on the client's general spending patterns. The default percentages are set to 50%, 60%, and 75%, respectively for the lower, medium, and higher spending levels.
  
  
  
  
• Percent of Dwelling - This is used only with the 'percent of dwelling' method in the Home Personal Property Method field. The default percentages are set at 70% and 60%. A personal property coverage limit higher than 70% of the dwelling coverage limit will trigger a green-colored insight on the report; a personal property coverage limit between 60% and 70% will trigger a yellow-colored insight; and personal property coverage limits less than 60% of the dwelling coverage limit will trigger a red-colored insight. 
  
  
  
  
  

Believer in Scheduled Items Coverage:

If your firm believes scheduled item coverage is worth having as protection against a material catastrophic loss, you can check the box as seen below. If not, uncheck this box. The default selection is set to "True."



In both cases, a low severity note will appear if scheduled item coverage is encountered, either endorsing the coverage or stating that it may not be material to the financial plan.

Home Water Backup Limit:

Water backup is typically excluded from a homeowners policy but can be added through an endorsement. The selected limit determines the coverage available for removing water from the home, drying the affected area, and replacing damaged property and personal items. The dollar amount chosen here will be compared with the limit listed on the policy declarations to determine whether the insight is marked red, yellow, or green. The default coverage limit is set to $25,000.

Ordinance or Law Suggestion Age:

Ordinance and Law coverage on a homeowners policy helps cover the cost of rebuilding or repairing a home to meet current building codes or regulations after a covered loss. It may include expenses like upgrading electrical, plumbing, or structural systems to comply with updated laws. Select the year you’d like this suggestion to populate on reports for clients. The default age is set to 20 years.

Home Mold and Fungus Limit Warning:

Mold and fungi coverage on a homeowners policy helps cover the cost of repairing or replacing property damaged by mold, fungi, or bacteria resulting from a covered loss. Choose the coverage amount you’d like to see on your client’s policy, and if the limits fall below that, the insights will reflect accordingly. The default coverage limit is set to $5,000.

Auto Insurance

Minimum Auto Coverage:

Here, you can set the minimum auto coverage limits you want all of your clients to maintain. If a client's limits fall below the set amount, a red insight will be generated, recommending that they review their coverage. If the client's limits meet or exceed the set minimum, a green insight will be generated, confirming that they meet the firm's recommendations. The default coverage limits are $100,000 for bodily injury per person, $300,000 for bodily injury per accident, $100,000 for property damage, and $300,000 for a combined single limit.

Deductible Lower Limit:

If your firm has a preferred minimum deductible amount for comprehensive and collision coverage, it can be set here. If a client's deductible is lower than this amount, a yellow insight will appear, suggesting that the client may consider increasing their deductible. The default lower limit deductible is set at $200.

Deductible Upper Limit:

If your firm has a preferred maximum deductible for comprehensive and collision coverage, it can be set here. If a client’s deductible exceeds this amount, a yellow insight will be generated indicating that the deductible is high and the client may want to consider lowering it. The default upper limit deductible is set at $2,000.

Vehicle Value is Too Low for Collision Comprehensive:

At some point, maintaining full coverage (comprehensive and collision) may no longer be cost-effective for a vehicle, depending on the vehicle's value and the cost of insurance. By setting a value threshold, a red insight will appear if the vehicle’s value falls below it, suggesting the client consider dropping coverage since the payout in the event of a total loss may be minimal. If the vehicle's value exceeds the threshold, no insight will appear. Within each client report, there is an auto icon which is where you will fill in the estimated value that triggers this insight. If the value(s) in the icon are left blank an insight will be generated that states limits are unknown. The default vehicle value is set at $1,000.

Buy Rental Car Replacement Coverage (AKA Rental Reimbursement):

After an auto accident, your client may need a rental car while their vehicle is being repaired. If this coverage is selected:

• True: The client will be advised of the coverage being useful.
• False: The report will indicate that the client could manage without it.
  

The default selection is set to "False."

Buy Rental Car Coverage:

When clients rent a vehicle for personal use, they will typically be offered insurance coverage by the rental car company or the option to extend their personal auto policy to cover the rental.

• True: The report will recommend that the client consider purchasing the optional coverage offered by the rental car company.
• False: The report will suggest that the client might not need to purchase the coverage.

The default selection is set to "False."




Considerations:
If the client chooses to extend their personal auto policy to cover the rental vehicle, there are a few things to keep in mind:

• The personal auto deductible will apply in the event of a loss.
• The claim will appear on the client’s claims history for 3 to 5 years.
• If the renter is only listed as an occasional driver and does not live in the household, there may be limitations on the coverage provided for the rental vehicle.

Final Notes

If you choose not to update these settings, the default values will be used, and your report's insights will reflect those default settings.

If you have any questions, please Contact our Support Team!