Insurance Agents - Trust But Verify (In Writing)

INSURANCE AGENTS - TRUST THEM BUT PLEASE GET IT IN WRITING!

We all know insurance agents, from high-pressure "what if you die, then what happens" type of guilt-laden sales tactics, to some of the friendliest and most helpful people in our communities, and everything in between.

If you already have a great insurance agent that you trust, that is an ideal relationship, but the "trust"' can be an issue if you ever have an insurance claim and only know about your coverage based on what your agent told you.

The Internet is filled with horror stories about homeowners that believed what they were told or maybe thought they were told, and never took the time to read and fully understand their insurance coverage, limitations, and even their deductible value.

One thing is certain --- what you are told by your agent means nothing, it only matters what is IN your policy.   As an example, if your agent tells you that you have "wind and hail coverage," but this is not in your policy, you do not have coverage, and your claim will be denied.

Understanding a lengthy insurance policy can be quite a challenge - some of the language is difficult for even a seasoned lawyer to understand without serious study, so do not feel alone in this area.

What are you to do?

One suggestion I heard recently from a retired insurance agent - write down your questions about various types of issues and concerns, from water damage to theft or fire, and items on your property, then ask your agent to respond in writing, and also to show you exactly where in the policy you can find the answers to your specific questions.

Another idea that was shared with me recently that is similar to the previous example - a list of "What If" type questions that you can put to your agent (in writing) and ask for written responses.

What if I have a house fire and lose everything, how much would my insurance pay?   What would I have to provide to substantiate my total loss?

What if a storm damaged my roof, would this be covered, and about how much would I be paid to replace my entire roof?

What if I have a claim for damage to my home, where does it say in my policy that I have to get three bids for the repairs?

Okay, the last one was a trick question.   The myth of having to "get three bids" is just plain silly, and your agent will be unable to show you where this is a requirement in any policy, but it is something that agents and others tell homeowners far too often.

You most likely purchased a replacement cost value ("RCV") coverage policy, so estimating the value of the loss is the insurance carrier's responsibility, and not left for you to decide.    Your attention needs to remain focused on having your property returned to its pre-event state, and how much of this costs is for your insurance carrier to determine.

Summary - please take the time to review your insurance policies, and do get all of your questions answered in writing, just to be sure you never hear the words "not covered" after your home has been damaged.