Adulting… you probably saw 10 memes about adulting already today. We laugh about it, sometimes lament about it… but adulting is what we are “supposed to” be doing (I write this just feet away from my guinea pigs, so at least we can say we have our own brands of adulting).
Of the many things that people feel confused about when it comes to adulting is insurance: what to get, how to get it, even what it truly is! So, my loyal readers, I present to you some insights from one of the leading insurance executives on Long Island, Ashley Smit of Borg Insurance Group. Take it away, Ashley:
Someone once asked what I did for a living and I replied I am an insurance broker, and they said they were so sorry for me. In turn I was taken back because I love what I do. The thrill of helping someone save a ton of money while securing the right coverage is a thrill for me. Or helping someone understand the complexities of insurance while purchasing their first home.
When it comes to insurance, everyone is always an expert at the price. Generally, all customers care about is getting the cheapest policy possible. However, price is not something you should base your whole decision on. You want to make sure you have the right coverage. I always recommend purchasing an umbrella policy. This is one of the most overlooked policies. This policy protects your assets. An umbrella policy provides additional liability coverage beyond your underlying home, auto, or boat policies. For example, let’s say someone trips and falls at your home and sues you for $1 million. Your homeowner’s policy most likely has a $500,000 limit. Once that is exhausted the umbrella policy steps in to provide an additional $1M in liability.
Another commonly overlooked coverage is flood insurance. Flooding is the number one natural disaster in the U.S. Everyone is in a flood zone no matter where your home is located. It just depends whether your home is in a low risk or a high-risk zone. Flood insurance is NOT covered on a homeowner’s policy. It is a separate policy. A flood policy covers damage to your building and contents from overflow of water, but also damage from heavy rainfall. For low risk zones, an average policy costs around $500 for the year.
Have you ever filed a claim without really understanding the process? While a homeowner’s policy may cover relatively minor expenses, it is really intended for catastrophic losses. So while a claim may be filed, it may not always be wise to file it. Also, it does not make sense to file a claim if the deductible is more than the cost of simply making the repair. Insurance carriers review the CLUE report (Comprehensive Loss Underwriting Exchange) which keeps a record of all claims made against a property. Always call your broker first to seek their advice whether or not to put the claim in. Anytime you call the company direct, you are filing the claim.
Feel free to contact me with any questions! AshleyS@borgborg.com