Insurance should not be boxed and sold as a standardized commodity. Why? Because it protects individuals, and just as each person is unique, so is their need for insurance. As alluring as the idea of cookie cutter coverages may be to more easily shop and compare, they will never meet everyone’s needs. One client may be renovating a portion of their home and need protection for work in process. Another may use the family van to drive their child’s class on a field trip. Still another may run a business from their house. Life is beautiful and gives us such opportunities, but each client must know their coverages and take responsibility for their personal insurance.
“But isn’t that why I have an insurance agent, to know what is covered?” Yes, an insurance agent is a trusted advisor who can help explain insurance needs and provide coverage options. But each client must educate themselves to gain a basic understanding of their insurance policies, what is protected, and what their requirements are. Coverage choices are always up to the client and cannot be delegated to others.*
Each client must know their coverages and take responsibility for their personal insurance.”
Dangers of Price-Centric Shopping
Price is driven into our heads daily by tiny reptiles with national advertising budgets and football celebrities with humorous endorsements. If insurance won’t protect when needed, it shouldn’t be purchased no matter how low the price. Today, the most frequent question our agents are asked is, “How much is my insurance going to cost?” But for clients who want to ensure they are protected, there is no substitute for taking ownership of their coverages and educating themselves.
At Bankers Insurance, we help clients look beyond cost and understand the importance of coverage that matches their requirements…at the right price. We listen to our clients, identify needs, and offer means to guard against claims, all while sharing ways to better protect what is most important to them. Protecting clients from paying claims out of their pocket is just as important as saving on insurance expenses. In fact, inadequate protection can cost families their livelihood and life savings.
What is At Risk
“How do home and auto insurance protect my livelihood and life savings?” Personal insurance coverages protect not only the “things”, but also cover the liability that can result from using those things. For example, the vehicle on an auto policy may cost $20,000, but the damage and injury it can cause if involved in a multi-vehicle accident can be many times greater. Personal insurance policies offer protection against this liability to pay for damage to other’s property or injuries to other people. If no coverage exists or if the policy limits are reached, courts make up the rest by going after personal savings, assets, and levying garnishments. Thus, these coverages protect much more than the house or car themselves.
Devil in the Details
The value of insurance lies not only in the main coverage levels, but also in the sublimits and add-ons – in the details. For example, equipment breakdown coverage is a protection that is typically excluded on a standard homeowners policy. It must be added for a small fee to fill in the gap that these policies don’t cover. It protects against the mechanical or electrical breakdown of nearly any type of equipment in and around a home such as stoves, refrigerators, washers, driers, water heaters, heating and cooling, and more. We receive claims for this coverage often.
Another common example is water backup coverage which protects against overflow through drains or sump pumps. Water claims cause more damage than any other, creating high-cost repairs. We see these caused by freezing pipes that burst, washing machines or toilets overflowing, tree roots clogging septic lines, and even municipality sewer lines failing. Reference Extra Home Insurance Coverages.
So, educate yourself and take ownership of personal insurance policies. A standard-off-the-shelf homeowners insurance policy does not cover everything in the amounts one might imagine.** Knowing proper coverage is in place gives clients freedom to enjoy life; to sleep well knowing what they’ve worked so hard to build is protected. To educate yourself on your personal insurance policies, reference Personal Insurance as well as all our Personal Insurance Articles. Further, we encourage everyone to speak with their Bankers insurance agent to discuss their coverages in detail. We will help determine your risks and advise how to best cover them. Not a client of ours? Let us earn your business! Each client is assigned a personal insurance agent and provided their email address as well as a phone number that rings right on their desk.
