How a Thorough Policy Review Helped a Homeowner Cover $40,000 in Damage

Client Advisor: Jake Ieuter

A long-time Wilmette resident asked us to review several insurance policies he had had in place for quite some time.

During our first meeting, we had a wide-ranging and thorough conversation so I could get a full picture of his life, goals, and needs.

This is part of our discovery process, which goes well beyond the standard intake forms most insurance agencies use and ensures we can unearth the important details that often get overlooked.

Uncovering a Risk that Had Gone Unnoticed

Through our conversation, I learned that this client had a very nice house with a “man cave” type basement that included an expensive sound system. However, his existing home insurance only had a $5,000 water backup limit, which was nowhere close to adequate coverage for a property like his.

We see this often in the policies we don’t write: the water backup limits are way too low and yet the policy holders are not aware of it because nobody has pointed that out to them. This client’s house is not in a flood-risk area, so he had never thought about it as a potential issue either.

Following my recommendation, he switched to a different policy that would provide a $50,000 water backup limit.

Within a year, a torrential downpour hit his area while he was out of town. His sump pump didn’t work and he ended up with two feet of water in the basement. He had to replace most of his things, including drywall and carpeting, for a total of about $40,000.

His old policy would have fallen well short of that while the new one covered all his expenses. I helped him through the claim process and the insurance company did a great job handling it swiftly.

The Takeaway

Make sure you review your homeowners’ insurance with an advisor who can help you understand if your policy provides the coverage that’s right for YOU.

Insurance should not be treated as a commodity. Every policy must be tailored to the individual and looked at periodically to see if the coverage needs to be updated to keep up with the changes in the person’s life. 

The detailed review process we use at Secure Futures helps us spot the gaps between the policy coverage and the client’s risk exposure. This proactive approach allows us to address potential issues before they become problems.