Why a good relationship with your Agent or Broker is nessassary.

Insurance limits and coverage’s are a fuzzy topic for most people. The question “do I really need this coverage or line of insurance?” is common, although not always spoken.

Most people are aware of the need for insurance coverage, yet have little or no idea as to what is a “covered event” and what is not. A bank will not loan money on a property without the proper insurance coverage. It is illegal to drive on the public road systems without auto-insurance. Yet most of us don’t understand our policies, what they cover, when to make or not make a claim, or most importantly what they don’t cover.

Many of us have heard a story about someone who had insurance coverage for an “event” and didn’t know it until an agent or adjustor showed up with a check. Sadly this is the exception to the rule. More than a few have had a negative experience with an insurance company. Frequently we hear horror stories about accidents, claims, and the litigation involved. As well as confusion on the part of the client as to what is covered and what is not covered.

Working with an insurance professional that works with long standing carriers who have written a certain line of coverage for a good period of time; (typically many, many years) is going to be a much better proposition than the temporary placement of a policy with a carrier that is new to that specific line of insurance. The coverage’s offered by these companies are often broader and more comprehensive, thus helping to eliminate gaps in coverage.

This can be temporary in the possible event of a future non-renewal, forcing you to move a policy or not even have access to one at all. In other words, sometimes you pay a little more in the short term, but it’s a much better value in the long-run; especially if an “event” happens and it is not covered due to a reduction of coverage.

This type of long-term view of our needs is not very common in our society today. Thus the thrill of a lowered premium, or even reducing coverage to make a policy more affordable in the short-term, can be a ticking time-bomb, as time and unforeseen occurrences befall us all. This further outlines the need for doing business with an agent or broker you can trust and feel comfortable to ask questions of.

Good insurance brokers will shop the coverage’s with multiple carriers that meet the above criteria, to get a competitive premium. Although price should not be the final consideration, a broker will endeavor to get the best premium available through a reputable insurer. Agents for large direct companies have less flexibility in this arena due to the exclusivity of their insurance company’s offerings. However the axiom “shop around” holds true in insurance as in most other fields.

This highlights the need for everyone to select an agent based on longevity, professionalism, and a genuine desire to spend the time to understand your specific needs and risks. Thus assuring you will be able to discuss and better comprehend the coverage’s you have, make sound choices about those coverage’s, and most importantly, know what is not covered.