06/24/2026
A word to the wise from someone that's spent 5 decades in the insurance business. I've witnessed a significant increase in the past few months of consumers who are being sold "policies" and not insurance coverage. For a number of reasons including increased insurance costs driven by increases in cost to repair cars, homes, and buildings as well as agents in the insurance business being pressured by their insurance companies to "sell, sell, sell", policies are being sold and purchased that provide woefully inadequate coverages. Its a real shame that agents, many of them newer in the business, are more interested in putting more business on the books than they are about protecting their clients. Recently I was asked to provide advice to a long-time friend and policyholder about a claim for her niece following a house fire that burned her house to the ground after a lightning strike. I was provided a copy of the policy she was sold and the coverages the agent sold will not cover her entire claim in many areas. For a first-time homeowner in her 20's, this will be financially and emotionally devastating. The agent never took the time to explain the coverage and options that could have provided the right coverage. But,.... he sold a policy and got his commission. It's apparent that's what he cared about. Insurance buyers should not be expected to know the intricacies of the insurance business. This is why agents should be well trained and care more about their clients than they do about putting another policy on their production reports. Find an experienced agent, buy insurance based on coverage/not price, and ask lots of questions.
