PRODUCT: Executive Classic™ & Executive Capstone™ products for high net-worth clients
COMPANY: Cincinnati Insurance Co.
BEST RATING: A+ (Superior)
AVAILABILITY: Coverage is available through appointed agents.
FOCUS: Cincinnati Insurance Co., which sells personal lines in 31 states through 1,100 independent agents and already has a $1.1 billion personal lines book in the middle market, has announced plans to expand in the high net-worth personal lines sector.
The company’s first move was to increase capacity to cover homes valued up to $10 million through its existing Executive Classic homeowner policy. That policy series now offers coverage for valuable articles up to $10 million; high-value autos and classic vehicles; watercraft, including yachts; and up to $25 million in excess coverages. Cincinnati is also adding a new product, Executive Capstone, as a successor product to Classic, with four key coverage expansions.
Will Van Den Heuvel, senior vice president of personal insurance, says the carrier’s financial strength, agent relationships, claims response and personal lines coverages make it a match for the high net-worth market, where the “focus is more on providing value and solving coverage needs.” The firm’s Diamond system encompasses underwriting, processing and billing and enables agency proposals and consolidated billing for multiple policies. The move is a response in part to “commoditization of personal lines in the middle-market space where the focus becomes, increasingly, price—which is driven by the comparative-rater model,” Van Den Heuvel explains.
UNDERWRITING: Van Den Heuvel says key coverage expansions with the Capstone line include: excess flood coverage on homeowners, including a difference in conditions component allowing for first-dollar flood coverage in certain situations; employment practices liability insurance under umbrella coverage, with liability limit options up to $1 million; agreed-value coverage as an auto policy option, with increased loss-of-use limits and no per-day cap; and valuable articles market appreciation coverage, with a provision for claim settlement up to 150% of the agreed amount if value has appreciated.
The existing Executive Classic homeowners form is available in 30 states for homes valued $500,000 and above, offering guaranteed replacement cost as well as a cash-out option for total loss. The form includes policy limits coverage for sump pump overflow and failure, water back-up and hydrostatic water pressure. Earthquake and landslide are included in most states, as well as identity theft.
Cincinnati can insure valuable article schedules up to $10 million, high-valued and classic vehicles up to $1 million and watercraft up to $1 million. Excess liability limits up to $25 million are available. New York is the first state to approve the brand-new Capstone policy, but Cincinnati Insurance Co. plans to expand the program over five years. The Capstone line will renew existing policies as state approvals allow.
MINIMUM PREMIUM: None.
TARGET: Homeowners with homes valued $1-$10 million who seek to minimize potential coverage gaps by protecting all their personal lines risks with one carrier or policy, including homes, autos, valuable articles, watercraft and excess liability coverage.
Executive Classic targets homes valued $500,000 or higher.
COVERAGE TERRITORY: Executive Classic: AL, AZ, AR, CT, GA, ID, IL, ID, IA, KS, KY, MD, MI, MN, MO, MT, NE, NH, NC, ND, OH, OR, PA, SC, TN, UT, VT, VA, WV and WI. Executive Capstone: NY.
CONTACT: John Sence, vice president, personal lines; Cincinnati Insurance Co., 6200 S. Gilmore Rd., Fairfield, OH 45014; 513-371-7650;. To discuss appointments: 800-955-2463.
Ronimarie Acord is an IA contributor.
