Selecting an insurance agent may be one of the most important things you do. Every family needs a good accountant, financial planner, and insurance agent to look after their interests. However, in today’s world, it may be hard to move your thinking away from the idea that the lowest price is best, to getting the best value for your dollar.
We want to offer you a fun way to learn why your agent is more important than your policy. We do this in the “Dear Abby” format—except it is “Dear PIA.”
Dear PIA: What does an insurance agent do? In addition, is one really needed? Thanks from - Wondering Will.
Dear Will: A good insurance agent will help you understand what kind of insurance you need by educating you, and then offering solutions specifically designed for your family. An agent asks you questions like, “What keeps you up at night,” or “Tell me about your lifestyle?” Without an agent, there is no one looking out after your needs. Your agent will be there for you in the event of a claim. Your agent can provide valuable advice during a claim to make sure you get the full value of your policy.
Dear PIA: Aren’t all insurance agents the same? From- All the same Sam.
Dear Sam: No, insurance agents come in many different forms. I recommend independent agents who do not work for any one particular insurance company. Captive agents from the big insurers are paid by the company. So, for whom are they working? Independent agents are not employed by insurance companies and work for their clients. This is very important, especially during a claim.
Dear PIA: Our family has been blessed with great jobs that have allowed us to afford many luxury items. Do I need any special kinds of insurance? From - Very blessed Brian.
Dear Brian: There are some very specific kinds of insurance we might recommend to people who have a high net worth. Of course, we would want to meet with you to ask a series of questions in order to educate you and create a personal insurance portfolio just for you. However, here are a few ideas to get you thinking about your insurance needs.
Have you considered:
1. A personal umbrella policy. This coverage offers higher limits for people who desire to protect wealth in the event of a serious claim.
2. Insurance for collections. Many people have wine collections, art, jewelry, and other high-end items that need to be insured.
3. Insurance for a second home. If you own a vacation or rental home it is important to have that insured.
4. Loss of use coverage. In the event your home is damaged, and you need to move out during restoration, you need coverage for a hotel, food, and other expenses. These can be covered under your homeowner’s insurance.
These are just a few thoughts we have regarding the importance of your insurance agent. We view insurance as a relationship where there is trust and honesty in every aspect.