Paying Attention

Have you ever done something, thinking that you were really paying attention to what you were doing, then later come back to it and found that what you had done was really wrong?  You realize, as you look at the mistake you’ve made, that you weren’t thinking at all!  I did that last night.  I used a dish and put it in the sink.  I ran a little water in so it could soak, and then left to do something else.  I kept hearing water running but thought it was just the dishwasher.  I eventually went back to the kitchen only to discover that I had never turned the water off and it had been running for an hour!  Luckily it was just running down the drain (and not flooding my kitchen), but I couldn’t help but think about all the people around the world who don’t have clean water, and I felt guilty.

It can be that way with insurance.  You think you know what you’re doing when you set up your insurance coverage, but later you take a look at it and realize that you don’t have the coverage you thought you had.  I recently helped a husband and wife with an insurance review.  They owned a condominium, but we discovered that their insurance coverage was a Homeowners Policy and not a Condominium Policy.  They thought they were doing the right thing at the time (they had purchased insurance for their “home!”)--but they weren’t.

Because of the variety of ways condominium ownership can be defined and set up, purchasing insurance for a condominium is not as straightforward as purchasing insurance for a single family home.  Condos require some specific coverages that a regular Homeowners Policy does not include—so it is important to use a Condominium Policy. 

The moral of the story?  Even if you think you know what you’re doing, make sure you are aware of what you are purchasing by consulting with an agent or broker that you trust.  Working with an experienced agent or broker will give you the peace of mind that comes from having an expert review your insurance needs and make solid recommendations.  However, I can’t promise that the broker will always remember to turn off the water...