To Insure or Self-Insure, that is the question?

As an insurance professional for over 30 years, I have had countless conversations with clients.  When it comes to insurance,  you are either covered or not.  You either decide to secure insurance or not.  An insurance policy is a contract between you and the insurance company.  Insurance companies want to include terms that benefit them and you need to make sure that the terms benefit you.  At the time of a loss,  the terms and conditions of your coverage will dictate how the claim is settled and what the outcome will be.

 

With this in mind, every individual and business’s needs are different.  Each one of us is different and our needs differ in so many ways.  Therefore, one should consider insurance that is customized to best suit his or her individual lifestyles.  In my opinion, what is most important to insure are those things that you cannot afford to replace and losses that would have a devastating effect on your family.  If you can replace something without it affecting you or causing you any type of anxiety,  that you can self-insure.  Here in the Berkshires, having the proper insurance on your home or property and everything in it makes great sense.  Having the proper liability insurance when you have grown up toys, a business or building is critical.  Umbrella coverage can provide an extra layer on top of everything else.  Insuring for physical damage on your older vehicles,  ATV or snowmobile, might not be as critical, depending upon the values of those items.  Knowing and having great medical insurance is also key and having the proper life and disability insurance to protect yourself and your family’s financial future is also very important.

 

When speaking to clients, I try to put things into perspective in such a way that they can relate to it.  Like the Berkshires,  I love my profession and how I help clients better understand coverages.  If you have an insurance challenge, an insurance professional can perhaps help you.  There is never a problem until the problem occurs.  My suggestion is to be prepared for anything as best as possible and insurance can play a huge role, if properly obtained.  You should choose your insurance professional like you choose any other professional.  Take the time and you will be rewarded with knowledge and the ability to make great decisions.  To insure or self-insure, that is the question?

-As seen in the April 2019 issue of the Otis Gazette, Massachusetts

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