29
Oct
2015

What is the best type of insurance policy?

October 29th, 2015

Q: What’s the best type of insurance that I can get for my needs?

A: The one that will give you coverage when you need it!

If insurance was a commodity like apples or oranges then the comparison shopping would be fairly easy to do. There are not too many differences and the perceived value to the consumer is readily apparent.

However, insurance products are as varied as the individual needs of the customer. There is no simple solution for a one- size- fits- all approach. While costs of insurance or the premium paid for a policy is an important consideration, the underlying reason for insurance is to protect you from a potentially catastrophic financial loss. There is no benefit in paying for a policy that only partially responds to a loss or worse, not at all.

Insuring your home, boat, vehicle or business venture all have their own underwriting requirements. This supports the earlier point that insurance is not a commodity and there are many differences between certain types of insurance products and the people who need the insurance coverage. Don’t be fooled with claims of great coverage at great prices.

Basic underwriting information gets the quoting process started and this can be done on our website. This is often a great starting point for the conversation to begin.   Many times, an insurance solution can be agreed upon easily, depending on how risk averse the customer may be. Or put another way, how much of the loss they are willing to accept personally.   By purchasing an insurance policy, you are transferring the loss exposure from yourself to the insurance company. The premium charged for the policy is partly based on this transfer of responsibility. Another consideration is balancing the likelihood of a claim happening versus the severity of the loss.

In consultation with our clients, we offer choices of coverages, tailored to their individual needs. If you are unsure of what your present insurance policy covers, please contact your current broker. We cannot interpret others’ policies wordings. However, if you would like to review your current situation with us, we would be happy meet with you and offer you suggestions and hopefully a policy that you’ll be comfortable with.