What if the Worst Thing Happens?

No one wants to create a worst-case scenario. Least of all me.

However, I work in insurance. It’s part of life in my world. I hear the horror stories of new clients that were looking for a new insurance agent because they weren’t covered or didn’t understand the insurance they had.

So, here it is. My list of what-ifs. These have grown over the years to include scenarios – some real and some imagined – from folks who just didn’t understand what their insurance policies could do for them.

What if my house is robbed?

15% of robberies in Texas are done at homes or residences. When you consider the personal property of value that you store at home, this can be scary. Most standard property insurance have a coverage limit for personal property that prevents you from being able to replace high value property. What you need to know is that within your property limit, there may be sublimits. I know. It sounds ridiculous, but insurance companies are generally designing policies that work for the average household. If you find yourself in the high-net-worth category or if you are a collector of fine art/jewelry/etc., you need to know this!

A standard property insurance policy may cover $50,000 in personal property and only cover $1,500 in each category under personal property, for example jewelry, art, technology, designer clothes,or other collectibles are capped at $1,500 each.

What if there is a flood?

You might have flood insurance, but what about the in-home flooding that could be caused by a backed-up drain or faulty hot water heater?? Imagine a backed-up drain causes flooding in your home. This type of coverage is not necessarily included with standard property insurance. And keep in mind whether you want the coverage to be Actual Cash Value, which considers the depreciation of what the damaged property is worth versus Replacement Cost Value, which considers the cost to replace the damaged property.

What if I renovate my kitchen?

When a new client tells me they’ve remodeled portions of their house without updating their property insurance, it’s a red flag. Whether it’s a master bathroom upgrade, a kitchen remodel, or adding square footage to your home, your current property coverage might not be enough. Making enhancements to your home can work against you in the case of a home disaster where you do not have the right coverage to protect your newly remodeled home.

Many minor updates to your home do not impact your property insurance. Changes in updated flooring or outdoor landscaping are areas that are unlikely to impact your insurance policy.

What if I work from home?

If you work from home or run a business out of your home, there is good news! Business property coverage can be added to a homeowner’s insurance policy to protect you and your business. Most property insurance alone does not cover your business property, so looking into this insurance can help protect your business technology resources as well as any products you sell that can be found in your home.

What if my identity is stolen?

What many of my clients did not realize before I worked with them is that their identity is more at risk than their physical property. Texas is just behind New York as one of the states that is at risk for identity theft and fraud. ? You will spend a lot of time and money to recover your identity if you suffer from identity theft. Legal fees, lost wages, and new debt are some of the liabilities on your finances, while communication with credit card companies, credit reporting agencies, banks, and government agencies cause a strain on your time.

Identity restoration coverage provides clients a way to reimburse them for some or all the costs associated with identity theft.

Like I said, I hope nothing bad happens to you in your own home. In my role in the insurance world, I have a front row seat to some of the worst-case scenarios that can happen to you. I hope that you will take this information as a warning and make sure you, your identity, and your property are covered.??

#Insurance #C1Insurance #WhatIf