Risk & Business Magazine Lovitt & Touché Spring 2016 | Page 26

Fifteen Minutes or Less?
How “Saving” Money Can Cost You in the End
BY: LAURIE HAAS, CAPI, PRIVATE RISK SERVICES MANAGER

S

pend just 15 minutes or less and
you could save 15% or more on your
insurance – sounds great, right? Perhaps
you can take only seven minutes and save
20%!

Making sense of the barrage of ads touting
insurance savings with just a small
investment of your time can make your
head spin. Yet if you pay close enough
attention, you may notice that nowhere
in these ads are the type and amount of
coverage addressed. Sure, you can save
money when you simply reduce coverage,
but is that really the right move for you
and your family? When it comes to buying
your personal insurance – an important
decision impacting your short- and longterm financial wellbeing – it would be
prudent to spend more than 15 minutes
reviewing your options.
The true value of your insurance
policy rests not in the premium paid,
but in the features, benefits and loss
settlement provisions. Discovering you’re
underinsured at the time of a loss can
be devastating. The amount of premium
you pay is correlated with the amount of
coverage you receive. Low premiums may
also mean very little payment from the
insurance company in the event of a claim.

“The true value of your insurance policy rests
not in the premium paid, but in the features,
benefits and loss settlement provisions.”
There is a lot to consider when you buy personal
insurance. Total losses can and do happen all the time –
and they typically occur when you least expect it. Does
your homeowner’s insurance policy provide guaranteed
replacement cost with no cap on the limit? If not, you
may be paying out of pocket to cover the difference. What
if you couldn’t reside in your home after a covered loss?
Does your policy provide loss of use without time or dollar
limits to cover additional expenses incurred while you live
in a temporary residence while your house is repaired?
While many people have a contingency plan in place to
cover emergencies, in most cases that does not include
the unexpected expense of covering a shortfall in your
insurance program.

agent won’t simply sell you a policy; they will help you make an
informed buying decision. While cost certainly becomes part
of the conversation, it should not be the sole basis on which a
purchasing choice is made. Completing a thorough risk analysis
with your agent can identify gaps and deficiencies to be sure your
insurance program not only meets your current needs but also
keeps pace with whatever life throws your way. So, the next time
you find yourself with an extra 15 minutes to spare, grab another
cup of coffee and the n call your insurance agent to schedule an
appointment for a complete review of your policies. Yes, it will
take longer than 15 minutes, but an investment of time upfront
may preserve your peace of mind and financial wellbeing in the
future.

What if you decide not to rebuild in the same location or
simply choose not to rebuild at all? A few select insurance
companies such as Cincinnati, Chubb, Nationwide Private
Client Group and PURE allow you to cash out without
depreciation in the event of a total loss of your house
and your contents. If you own a home with exposure to
catastrophic losses such as a wildfire, or you are ready to
downsize, this might be an appealing benefit.
Preserving your financial future and peace of mind are of
equal importance. If you have assets to protect, including
your revenue stream, it is imperative you have the proper
amount of coverage to defend a lawsuit or judgment
resulting from an auto accident or an injury sustained
on your property. In addition to your underlying limit
of liability, consider buying a personal umbrella policy,
particularly one that allows you to purchase excess
uninsured/underinsured coverage that protects yourself
and family members if you are injured by a party without
insurance or insufficient limits of coverage. Further, in
the age of social media, an umbrella policy that includes
personal injury could be your first and best line of defense
from a party who feels they were damaged by something
posted online.
Navigating the landscape of personal insurance can be
tricky and you shouldn’t go it alone. A qualified insurance

Laurie Haas, is a Private Risk Services Manager and a
Certified Advisor of Personal Insurance. She leads a dynamic
and solution-oriented team whose focus is tailoring
customized insurance programs for private clients.

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