Why You Should Spend More on Insurance

As an insurance advisor, our primary goals are to ensure that you are protected with a policy that not only fits your budget but also provides reliable coverage in the event of a disaster. Recently, a client inquired about a new insurance carrier which offers cost-effective policies. While the price point was appealing, I wanted to share some insights and considerations about why we veered her in another direction.

The Importance of Experience

In the insurance industry, experience and stability are crucial. Established companies with a long history of stability and reliability provide a level of security that newer companies simply cannot match. For instance, the company my client suggested has been in business for only three years and has assets totaling $87 million, the damages from a single hurricane, like Hurricane Ian, can exceed $7 billion. 2024 alone has seen 14 new property insurance companies enter the market. Can you trust a newer company that has never had to deal with handling large-scale claims effectively?

The Risk of Inexperience

Newer companies often enter the market with lower rates to attract policyholders. However, this strategy can be risky. Without a proven track record, there is no guarantee they can withstand the financial strain of a large-scale disaster. Companies that lack experience handling mass claims might not provide the reliable coverage you need when it matters most.

The Case for Established Insurers

Choosing an established insurer like Universal ensures that you have a dependable partner ready to support you through significant claims. A company like Univeral has a long-standing presence and robust financial health that offers peace of mind that newer companies might not be able to guarantee. When selecting an insurance policy, it’s essential to consider the long-term reliability and stability of the insurer, especially in a state prone to severe weather events.

Peace of Mind Over Cost Savings

While the initial cost of insurance is an important factor, the true value lies in the protection and peace of mind it offers. Opting for a well-established insurer means you can be confident in your coverage when facing the uncertainties of natural disasters.

If you are interested in reviewing the financials of insurance companies, here is a link:

• Demotech Financial Stability Ratings

Ultimately, the choice is the insureds. However, I strongly recommend suggesting the reliability and track record of the insurer to safeguard your home and assets. Please reach out if you have any questions or need further assistance in making your decision.