Are Your Renewal Policies Complacently Bound without Change Considerations in Your Property Values?
By Mike Liguzinski, Divisional President, Specialty Human Services
Renewing property “as is” compounds over time. You might think that property insurance premiums or property limits should never go up – especially if you did not have a loss. This is a misconception. The truth is that the cost of underlying components, which make up the insurance property limit, continue to increase – it is a financial law of gravity. Renewing a policy “as is” year after year could prove to be detrimental to your coverage and leave you grossly underinsured. Real property and contents need to be adjusted annually for inflation, and policyholders and agents need to be aware of this.
When it comes to catastrophic events, the “it could never happen to me” mindset can lead to misidentification of true threats to the organization, and an underestimation of just how much those threats could cost.
The appropriate valuation of your property and its contents is critical to the strength of your policy. Upon renewal, spend a bit of time evaluating your coverage. In the event of a loss, you’ll be glad you did.
Are you ready to take control of your property insurance? Our 5 Steps to Taking Control can help you have a conversation with your agent.