A wise person once said, “Take care of the downside and the upside will take care of itself”. Having appropriate and adequate Property & Casualty (P&C) insurance is an important way of taking care of the downside. While each person’s lifestyle and how they want to live their lives differ, there are some risks everyone faces. Insurance is a way to hedge against those risks so that your lifestyle is not affected.
I have found that insurance is a neglected part of people’s financial plan because it is an immediate cost with an uncertain benefit. In general, insurance compensates you for losses due to perils that have a small probability of occurring, but if they do occur, the magnitude of loss possible is significant. P&C insurance includes protection for liability which could potentially lead to losses more than the property value. Seen in that light, the best outcome when you purchase insurance is that you never have a claim against it i.e. the premiums paid are ‘wasted’
Periodic review of your P&C insurance (Home/rental and car insurance for most people) is important. You don’t want to be over or under insured. Here is a short checklist of some important issues you should consider when you review your insurance. CLICK HERE.
Please reach out to us you would like to review your insurance or discuss anything else pertaining to your financial situation.