Using the 80% rule to determine the adequacy of an individuals liability coverage is extremely advantageous for homeowners because approximately 2 out of every 3 homes in the U.S. are underinsured. When assessing a home owner's policy, the 80% rule is used to determine and verify whether of not a certain policy limit is sufficient enough to provide full replacement/reimbursement when a major loss occurs. At the time of loss, if the amount of coverage is greater or equal to 80% of the replacement costs, the individual will be able to receive full payment for the portion that has been damaged, up to the limit minus the deductible (and no depreciation reduction). If the homeowner does not follow the 80% rule, they will be subject to the coinsurance clause when the loss is paid out. In terms of Auto Insurance, reducing premiums with discounts is an easy way for clients to save through a variety of potentially applicable scenarios.

 For example, an older client that doesn't drive very often can be eligible for some type of low-mileage discount while a relatively newer driver in high school or college could be eligible for discounts related to "good student" status. It is important for individuals to inquire about these types of discounts because there are many simple qualifying scenarios that can ultimately reduce premiums quite a bit.

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