Most individuals don’t assume a lot about their insurance coverage insurance policies after they purchase them. A invoice reveals up, they pay it, and life strikes on. Insurance coverage turns into virtually invisible—till one thing occurs. A catchy TV advert may remind them to buy round for a greater price, however in any other case, the main points of their protection keep buried in paperwork or forgotten electronic mail inboxes.
Sadly, insurance coverage isn’t a “set it and neglect it” product. Individuals transfer, repay mortgages, change banks, get married, retire, or in any other case shift the bottom underneath their insurance coverage wants. When that occurs, insurance policies can lapse with out anybody noticing. Renewal notices can get misplaced. Premium refunds can get mistakenly cashed with out understanding what they imply. And by the point somebody realizes there’s an issue, it’s normally after they want the protection most—solely to search out it’s not there.
The current case of Pamela Mott Duff is a real-world instance. 1 Duff had a renter’s insurance coverage coverage with State Farm protecting her belongings. After she moved, there was confusion about whether or not she canceled her coverage or if it merely expired. She thought she nonetheless had protection when her former residence burned down in 2022. However by then, the coverage had lengthy since been canceled or allowed to run out. The courtroom dismissed her declare as a result of there was no insurance coverage in place on the time of her loss. Whether or not it was poor communication, misplaced notices, or misunderstandings about refunds, the end result was the identical: no protection when she wanted it most.
One of the simplest ways to keep away from a state of affairs like that is easy however usually ignored—construct a relationship with a trusted insurance coverage agent. Consider it like having an everyday checkup along with your physician. You wouldn’t go years with out checking in your well being, so why would you deal with your monetary safety in a different way? A very good agent will assist you to maintain your insurance policies present, clarify what’s altering, and be sure you aren’t left uncovered with out realizing it. Life strikes quick, and small modifications can have huge penalties relating to insurance coverage.
Whether or not individually or as a enterprise, having an agent you may discuss to recurrently helps you be certain your insurance policies match your present wants, all of your contact data is updated, and the insurance policies are in place. It additionally offers you somebody to show to while you transfer, repay a mortgage, or expertise a significant life occasion. Insurance coverage solely works if it’s there while you want it. Don’t go away it to probability.
Thought For The Day
“Within the insurance coverage enterprise, there isn’t a statute of limitations on stupidity.”
— Warren Buffett
1 Duff v. State Farm Fireplace & Cas. Co., No. 3:24-cv-00050 (W.D. La. Apr. 8, 2025).