Your clients, Tom and Jan Smith, have a net worth of $3.4 million and own three cars and a home. Their autos are insured with XYZ Insurance Company and their home is insured with ABC Insurance Company. These are the only property and casualty policies the Smiths own. They have also provided you with a recent appraisal of their home, which shows the value to be $1.4 million with a mortgage of $975,000. The appraisal states that the value of the land is estimated to be $300,000. Their unendorsed HO-3 homeowners policy has $100,000 in liability coverage. With the information provided, which one of the following should be addressed first?

A)

Change the homeowners policy to an HO-5 policy in order to get better coverage for personal property

B)

Change the homeowners policy to an HO-8 policy since it is a high value home

C)

Increase the liability coverage

D)

Combine the auto and homeowners insurance with the same company to provide discounts and no overlapping coverage