Am I Covered?

How to Talk to Your Insurance Company or Agent

We all rely on our insurance agents to help us through the maze of legalize in any insurance policy, but there is no substitute for reading, understanding and asking questions. All insurance agents carry Errors and Omissions Insurance to cover problems arising from issuing inappropriate policies or wrong advice but you really don't want to go there.

Don't assume because you have a casual conversation with your agent about a change in your circumstances, that your insurance coverage is adequate. I know of one case where a recently widowed women was visiting with her agent and casually mentioned that she was taking in borders to help with the upkeep and expense of her home. Some time later one of her tenants had an enemy who set fire to the house. The insurance company declined to pay because she did not have the more expensive home insurance policy which is required for rentals or boarding houses. The woman sued the agent and the court ruled in her favor. The whole court case could have been avoided if she had simply asked if she was covered.

When you are discussing your insurance, explain any changes and ask the question, "Am I covered?" If you are in an insurance agent's office,the agent should have your file out and be making notes. A conversation at a local coffee shop isn't good enough. A good agent will ask you to drop by the office so he or she can refer to your file.

Don't assume that you have special circumstances and the insurance company will understand, They will only pay claims as outlined by your insurance contract. Another example, a friend needed back surgery to prevent nerve damage. Her doctor said that it had to be done within 24 hours. So, she phoned the insurance company and notified them that she needed the surgery within 24 hours although the policy required 48 hours notice. The company took her report. The insurance company refused payment because in their view it was not emergency surgery and their insurance contract specified 48 hours notice. The woman's question to the company should have been - again, "Am I Covered?"

If you phone any insurance company representative for coverage confirmation, record the full name of the representative, date, and time of the conversation. That evidence will hold up in a court case because phone records can be subpoenaed

Changing Values of Real Estate and Personal Items

Another area requiring review on an annual basis with your insurance agent is the current values of your assets. Depending on the type of policy, value changes could have a big impact on the amount to be paid out should you have a loss. Real estate values constantly shift up or down. You don't want to be over or under insured. Many home insurance policies have penalties for under-insurance and you certainly don't want to pay more than is required.

If you acquire paintings, antiques, and some electronic equipment, they may not be fully covered without an addition to your policy called a rider. Often an appraisal by a certified expert is required for paintings, antiques and jewelry. If you wish to have these items fully covered by insurance you should contact your insurance agent immediately.

A good agent will ask you if you have any changes, but often you will only receive a renewal notice. That is the time you need to think about your current real estate values or changes to the usage of real estate or vehicles. There may also be significant increases to the value of paintings, antiques or jewelry.. At the moment, if you have insured gold jewelry and coins, they may be undervalued.

M Eslnger, Insta-Health Quote and Wellness Guide