Insurance stinks Until You Need It!

Here is another entry in the insurance stinks until you need series. This is a true story but I will use no names.

Client came into the office with a renters policy. He was complaining that the premium was too high after all there was no way that he had contents that exceeded $10,000 and we had given him $40,000 of coverage. Ok, we can make that change but let me give you an example of a training I went through. The Idea was to take one room and guess the contents. Well I that I would be a smart alec and I chose the bathroom. After all how much can you miss by in the bathroom. Well from the classroom I made my guess, a few towels some paper products etc. I got home and completed the assignment and found that by replacement value I was 50%, I had missed so many little things like razors and a bottle of Aspirin. That was the same story with the whole class, the best guesses were 50% off.

I completed my story and the client said he would leave it there for another year, but he still thought I was wrong. Two weeks to the day a fire broke out in the house he was renting and it burned to the ground. I went out to the scene and made sure he was Ok and found out that his son was going to put him up for a while. So for the moment all was as good as it could be, no one hurt and other than the photos everything could be replaced.

The client only wanted $10,000 of coverage and we insisted he stay at $40,000. What do you think happened with the claim? Well the company paid the full $40,000 and there were still items on the list that were not paid. The final tally came in at something over $50,000. One happy but unhappy client, He was grateful that we kept him at the $40,000 and wishing that he had taken the time for a better inventory.

As Paul Harvey used to say, the rest of the story goes like this. We do our best to get the right amount of coverage and want each insured to be protected completely. A rough inventory as we have shown will get you half way there. So take stock and protect yourself from fire, theft and all the other reasons of loss from which a insurance contract can provide protection. Try the assignment  and pick a room, see how close you can get.

Give us a call for more information on protecting your home and contents


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