Money & Career | Insurance 411
KNOW YOUR POLICY
A Little Time Now May Save a Lot Later by Christine Fisher
Being insured isn’t all-inclusive in protecting you from all disasters. Insurance has changed a lot in the past 10 to 20 years. Just because you have insurance doesn’t mean you’re fully covered.
Stephen Lyons, owner of Lyons Insurance, says, “Many people think their policies from 20 years ago are the same, and they are not. Insurance has changed; understanding your current policy is critical for being certain of your insurance coverage.” He says taking just one or two hours a year to review your policy will benefit policyholders greatly. “It’s good to know what you have, and more important to know what you don’t have or what is excluded. You may think you’re covered for certain things, but you’re not,” he says. For example, many homeowners’ policies do not automatically include loss of use, or they may have a different deductible for wind damage or named storm damage.
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Thrive Magazine for Better Living • October 2021
“In the last 16 years, since Hurricanes Rita and Katrina, the insurance landscape in South Louisiana has changed drastically as far as the carriers are concerned,” Lyons explains. “Insurance companies who are willing to write policies are becoming less generous when it comes to including coverages that previously were automatic.” During your review process, make a list of your contents. “Businesses and individuals generally come out ahead if they are able to submit a list of contents; it is well worth the time it takes to create this list. Once you have it, just review it annually and update as needed,” Lyons says. “The more accurate the list, the more money you will collect in general. Taking pictures of your contents to accompany the list is also recommended.” If you should have to make a claim, it helps to know what is expected. “This also has changed quite a bit in the last several years,” Lyons says. “Years ago, many agents like me had draft authority, or the ability to help the insured at claim time, and in some cases, make the payment. Now, the insurance companies do not want the agent involved in any of the claim’s process. It is between the insured and the adjustor.”
If your home receives damage, whether from a lightning strike, a storm, or a hurricane, most insurance companies expect the homeowner to make all necessary repairs to prevent further damage until an adjuster can arrive to review the situation. This process often requires the policyholder to spend money before they see an adjustor. When repairs are needed, Lyons says it is helpful to use a local contractor, if possible. “If you need them to return for additional damage, you know who to call, and if your insurance company has a question about the cost, you are able to reach your local contractor for clarification,” he says. “It may take a little longer to wait for a local contractor to get to you, but it’s usually worth it.” When you just don’t have the time to devote to your claim, Lyons suggests hiring a public adjustor, one that works for you, not the insurance company. “They will start from scratch and value the claim and deal with your insurance company on your behalf. They are licensed by the state and can charge no more than 10 percent of what they collect on your behalf,” he explains.
