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... . I'd suggest something like, I know you're concerned about the cost of your Homeowners coverage, especially with the price going up this year. But can I ask you a question? If your home were totally destroyed by fire, would the cost of your insurance be your primary concern? ' Of course not. Then discuss what would happen in the unlikely event of a total loss, perhaps using specific examples from high-profile situations. This is indeed a disturbing situation, and not an isolated example. Unfortunately, the hard market (combined with insurer concerns over mold and other issues) has a tendency to bring out the dark side' in some agents. FACULTY RESPONSE The Oakland-Berkeley Hills, CA firestorm of 1991 resulted in 3,236 total and 2,892 partial Homeowner, Renter, Condominium, Dwelling and Apartment unit losses. Several agents were undervaluing building replacement cost estimates and relying on the guaranteed replacement cost provisions to cover the difference. The practice became evident quickly as the losses were being adjusted. The increased cost to 34 insurance companies who upgraded and reformed policies following the loss was $274,017,306. This was the sum paid in addition to benefits within their previous policy limits. This practice might also violate the agent's contract with their company. A number of insurers reformed their agent agreements following the Oakland-Berkeley Hills fire. I suggest that the concerned agent document these practices and take the information to the national (not the local) office of the insurance company. I've done this several times and found that reporting a pattern of abusive practices can stop it on ...