Why Treat Your Personal Insurance as an Asset rather than Expense?

By Kellie Klein

Williams & Co. Insurance / Arroyo Insurance Services

Today’s marketing schemes by large direct insurance carriers and TV commercials does not accurately reflect your current lifestyle.   When we think of insurance, the first thing to come to mind is, how we can get the cheapest price?   Sure, we are all looking for a competitive edge and cost savings in our day-to-day life, but when you really think about it, why would you want the cheapest product to cover your life’s work and hard-earned money?

I always ask our clients, “do you always stay in the cheapest hotel or buy the cheapest car when you are looking for a purchase?”  Sometimes the higher quality and concierge services of a hotel, or leather interior and sound system of a new car is worth the extra money. What if you can pay the same amount, or perhaps a little more, to sleep better at night knowing that your personal assets and life’s work will be covered in the event of a horrible loss?  Most people don’t sit down and review their annual expenses for their overall personal insurance programs combined, but instead just look at the bottom line of each policy.  With that being one of your largest expenses in your household annually, wouldn’t you prefer the best quality and coverage you can buy or afford?

Not all insurance companies are the same. Not all carriers offer the same coverage on your home, valuables, auto, or liability coverages.  Not all insurance companies respond to a fire or water damage claim the same way.  Not every insurance agent is the same, and that is why you need to properly interview the correct firm and carriers you work with.  Wouldn’t you rather have a carrier looking over how to pay your claim in the best way to restore your life vs. settling the claim the quickest, least-cost way?

Five items to consider while interviewing your existing insurance provider or carrier may be:

• Expertise
• Risk management process
• Consider your lifestyle first, with solutions second
• Number of insurers represented
• Are their service levels in line with your expectations?
• Ability to customize recommendations and carriers, as no two households or individuals are the same.

If you want a premier service or higher quality in anything, it may and can cost more.  Insurance can be the same, but by utilizing the right trusted independent agent, you are provided more options, better service, broader coverage, and higher quality.

Certainly, no claim is exactly the same, but your trusted insurance agent can be your advocate because that is our job.  Every independent agent plays a role in helping build a robust and comprehensive insurance plan for you specifically.  Your lifestyle, assets, and family are unique to only you.  Therefore, your insurance coverages need to be evaluated regularly to make sure you are insured properly with different limits of coverage and ongoing changes in your life.

Do you know that most replacement costs on a homeowner’s policy that has not been reviewed over the last five years are most likely underinsured?  Statistics show that nationally, two out of three of homes are underinsured by 25% through a recent Chubb survey.  43% of families with a net worth greater than $5 million buy less than a $5 million umbrella/liability coverage, and 21% buy none at all.  It is important to be with an independent agent who knows how to review your comprehensive coverage on a regular basis and coordinate with you and your family accordingly.

How might you consider an insurance program as an asset vs. an expense?  The answer is in making sure you have the proper coverage with the best advisor to tailor to your lifestyle.  Our goal is to review your insurance program and make the most analytical and comprehensive recommendation for our clients.

Like many of Bridge Advisory’s strategic relationships, we are a value-add in their holistic approach to wealth management. We educate and advise clients to ensure that they are properly protecting everything they are building.  Sometimes that may include staying with a competing carrier but advising to increase a coverage item on a homeowners or umbrella policy if that is the best fit.  Life changes and so do circumstances.  We would be happy to take the time to review your current expense of insurance and make sure it is working for you and turn your insurance into an asset!

If you have questions or would like to discuss, please reach me at:

Office: 818-541-1832 / Email: kelliek@arroyoins.com