There is often discrepency in the level of cover provided by different insurers. It would be of great assistance if there was an industry wide, or Government approved, agreement as to the standard level of cover to be provided and any policy that met that standard or exceeded it could be clearly marked as such in a readily recognised manner. Also any variations to the standard could be swiftly be brought to the public's attention in a part of the policy marked solely for that purpose. This could also be used as a method for swiftly ensuring that a certain policy would be sufficient for its intended purpose e.g.to satisfy a mortgage lender that a policy will provide appropriate cover as it has already been shown to come up to a recognised standard. This will avoid unnecessary and time consuming checking of policies. Have the policy checked in great detail once but why do the same job again and again when not necessary?
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That sort of exists today. There are computerized models for determining premiums, but from a lending standpoint, all we look for is repacement coverage. That is, we look to see that the structure can be rebuilt to a similar condition as before. The land is not destroyed by fire or flood, so no coverage on the land is required. aquick check of the declarations page will show the coverage amounts and the replacement coverage feature, and all that is checked is the coverage amounts to ensure they are reasonable to the property. This is done in seconds by comparing the replacement coverage with the appraisal. Since property values change over time, a policy needs to be adjusted with each new purchase, so one standard may not be useful.