Becki Patterson, Business Writer

Insure the roof of your house only - if that is what you want.

Globe Insurance Company, one month ahead of the hurricane season, has launched a policy product that gives homeowners the choice of covering the risk they associate with their homes, and not necessarily the entire property for its full value.

Affordable choices

"What we found is that homeowners want insurance that is affordable, covers their risk and works the way that it is supposed to - that is, pays their loss," Evan Thwaites, managing director of Globe said Tuesday at the launch of the product, which the company has named 'Choices Home Insurance'.

The policy comes with a no-average clause, and lowers the catastrophe deductible, that is, the portion of a loss that the insured would have to finance when claiming for damage against property insurance.

Choices also allows the homeowner to choose the sum insured, within the five-30 per cent of property value criteria set by Globe; and determine the liability to be covered, for example, whether to insure the roof or swimming pool alone.

The policy essentially allows homeowners to purchase insurance that they can afford, but with the option to add more benefits.

It covers home, outbuildings, paved areas and swimming pools against catastrophe and non-catastrophe perils.

But it also "allows for a number of useful extensions, such as debris-removal cost, the professional fees that the homeowner may incur when rebuilding, alternative accommodation costs or rental income that might be lost if the property is uninhabitable following a loss," said a product flyer.

Gordon Arnold, general manager for marketing, said Friday that given the design of the policy, it would be difficult to estimate what the average premium would be.

Home inspection

As an introductory offer, "We will inspect your home, free of cost," said marketing officer Nadia Mitchell. But if a current valuation, that is, one no older than three years is in place, and no inspection is necessary, then Globe will also offer clients a 10 per cent discount on the first year's premium.

Where a valuation is needed, the company says arrangements are in place for a three business-day turn-around on inspections.

The insurance company, which claims pole position in the property-insurance market, says Choices is meant to offer alternatives to that 70 per cent of the home market that Globe estimates as having little or no property insurance.

Thwaites has identified the introduction of the 'average clause' on home insurance after Hurricane Gilbert in 1988 as a primary reason for homeowners either underinsuring their property or not purchasing insurance at all, the company said.

Globe's market research showed that too much of the burden of insurance was on the homeowner and the price of the policy products on the market had become prohibitive over time.

It also showed that of those who had home insurance, securing a mortgage was the primary motivation.

Both Thwaites and Mitchell touted the policy's integration of technology. Applications and communication can be effected via the Internet. But the product will also be available through brokerages and at Globe's own offices.

beckipatterson@hotmail.com