Atlantic Mutual Offers Free Checklist To Help Consumers See If Home Is Properly Insured

Two of Three Homes Underinsured in U.S.; Recent Hurricanes and Wildfires Point Out Deficiencies

NEW YORK, NY, September 15, 2004 -- Atlantic Mutual Insurance Co., a specialist in providing personal lines insurance to affluent consumers, announced it is offering a free checklist to help homeowners determine if their homes have the proper amount of insurance. The checklist is available at http://www.atlanticmutual.com/individuals/ITV_Checklist.pdf

Recent hurricanes and wildfires have led some homeowners to discover that they must pay more out-of-pocket to replace or repair their homes, according to published reports. The New York Times recently noted: "[The] woeful shortfall in insurance coverage, experts say, is a plight shared unknowingly by millions of American homeowners."

Some 64% of homes are underinsured, according to the 2003 insurance-to-value quality index compiled by Marshall & Swift / Boeckh, a construction information firm. That means millions of homeowners lack enough insurance coverage to fully replace their homes in the event of a total loss.

Dan Olmsted, president of Atlantic Mutual, urges homeowners to discuss with an independent agent the factors that determine the proper amount of coverage for their home and its contents. Four of the key factors are:

  1. The purchase price or market value of a home is not reliable as an estimate of replacement cost. Mortgage lenders require insurance coverage based on the purchase price. But the cost of rebuilding a home can differ significantly from the purchase price or market value.
  2. Improvements to the home have a direct impact on replacement cost. Adding a room or finishing a basement increases the replacement cost of a home. But homeowners sometimes forget to let their agent or insurance company know about such improvements.
  3. The size of the home should not be based upon inside measurements or a real estate listing. Proper square footage estimates are based on outside measurements. Real estate ads often use inside measurements, and don't account for porches or features like vaulted ceilings and bay windows.
  4. A homeowners policy may not cover all contents. Homeowners policies insure the contents of a home as well as its structure. But it's easy to exceed contents limits when there is a collection of fine arts, jewelry, or other valuables. A separate valuables policy may be needed.

Atlantic Mutual's checklist covers seven key factors and can guide consumers when working with their insurance agent when their policy nears renewal.

About The Atlantic Companies

The Atlantic Companies, also known as Atlantic Mutual, is a group of diversified financial services companies with a Wall Street heritage dating back to 1842. The group is widely known for the Atlantic Master Plan insurance program, which is designed specifically for affluent individuals and sold through a select group of independent agents. The Atlantic Companies acts as a property-casualty insurer, manages claims for commercial insurance, and helps other business partners target profitable niches in the insurance marketplace. Additional information about The Atlantic Companies and the Atlantic Master Plan can be found at www.atlanticmasterplan.com.


Contact: Peter G. Scott
Corporate Marketing & Communications
973-408-6044