Ideas and Opinions from Donald Trump and TrumpU Faculty.
Insurance Coverage. Are You Really Covered?
Just having gotten back from a continuing education conference for my insurance license, I realized that many consumers don’t understand what their insurance covers and as important, they are not aware that they have insufficient insurance coverage.
I guess not all insurance agents are created equal. Agents that are only selling “price”, tend to leave out important endorsements that their customers need in order to compete for the business. This leaves the insured in quite a predicament when the unexpected need for a claim arises. The insured initially purchased what they thought to be a full coverage insurance policy to protect themselves against any unforeseen loss and get extremely angry when they find out they weren’t covered. The obvious solution to this problem is for agents to slow down for a moment and explain what the policy is designed to cover. By fully doing so, they can make recommendations for additional endorsements that will best protect the insured and identify the additional cost associated with doing so. If the insured chooses to decline the additional coverages, the agent should have them sign a “declination of coverages” to show that they were offered. This will keep the agent and insured out of court later when no one can remember or prove what level of service was offered.
On the flip side, insureds that only care about price are asking for trouble. They tend to overlook the coverages and policy limits and not appropriately assess what their actual needs are. They think that those endorsements are being proposed to get the agent a bigger commission. If they would stop and really evaluate their own situation and picture themselves in a loss situation, they might be more inclined to spend a few more dollars protecting themselves more thoroughly. So insureds, read your policies and make sure your agent answers your questions about what is or isn’t covered.
Have any of my readers suffered a loss and inaccurately thought they were covered for it by their insurance policy? If so, please share!
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4 Comments
Most, are concerened only about the policy cost and it's policy deductables. To overlook key mistakes in the poliicy. Insurance is not just a person or business at risk... it's a business. The legal is very costly and the loss can ruin a business or life. The coverages is key!
Great article...and thank you for the advice!!
I wonder if it is possible for a foreigner to be your apprentice.(Of cause,the answer is YES.isn't it,I can't wait to answer in my mind!)
Insurance is such a crock! It could be a good thing, if it were a bit more fairly run. You talk about insureds being more educated, and learning which endorsements they should have added to their policies, and such. How about the insurance companies giving people more coverage for the outrageous premiums that they are forcing people to pay? Insurance companies nickel and dime people to death... knowingly change things up on the policies every five minutes...and, then, they cry poor when claims must be paid!
It's a fricken scam! I was being groomed as a commercial insurance underwriter, twenty years ago, and, I'd be a multi-millionaire right now, had I stayed the course. But, I couldn't do it. Ethically, it was not my cup 'o tea. I watched the fat-cat agency owners get fatter and richer, while they were out playing - sport-fishing, poker runs on their cigarette boats, driving pace cars at the Indy 500...with their loyal employees minding the store - making them look good, at the expense of their insureds. Insurance isn't exactly a science. It could be much more simplified! The people I worked for were not that bright, but, they were certainly rich...ridiculously rich hill-billys who were condescending and racists, to boot.
The insurance industry should stop complicating things so much. Stop so many "endorsements" that they don't bother to explain to the insureds, anyway. And, then, they have the audacity to raise the rates whenever they feel like it, but, they still roll out the red tape when it comes to paying claims.
GEICO, Warren Buffett's company, seems to be trying to simplify things for insureds. However, the industry, as a whole - SUCKS! Talk about being in need of a correction! The entire world of insurance needs to go back to the drawing board, stop being so greedy, and figure out something that actually benefits the insureds instead of the con-artists who sell it. It's disgusting and sad! You have people who have paid their premiums, religiously, for 50 years, then, a hurricane comes along and the insurance company takes their sweet time to pay the claim -- if they pay it at all. A lot of times, they'll find those loopholes - lack of endorsements, insufficient coverage, etc. - and never pay a damn dime. Shouldn't 50 years of premiums paid - on time - get a person something? Forget about it, though, if the agency owner's mansion gets a nick in the driveway, made out of gold flecks - Sha-zam! A check from the insurance company for $100,000. Gimme a break! How are these people lesser criminals than those that we refer to as "mobsters?" They strong-arm people, only it's legal. How nice. They're actually worse than mobsters, because they can virtually make off with your money, and you get zilcho protection in return. And, we just have to sit here and let them do it because it's just one of those things that we HAVE to do. Don't even get me started with Health Care insurance & Physician's Liability insurance, etc. And, we wonder why we don't have more dedicated physicians? They can't afford to practice!
One thing I found out about Admin problem of Trump Blog is classifying the documents by. So, it would be kind if you could tell the administrator to classify these posts by date because at the end of the page there are words " New post" and " Old post " .
Please accept my highest respect.
God bless you.
Sincerely yours,
Dany