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 take a look at several insurance policies he had had with Allstate for a while.

On our first meeting, I took him through the checklist we use with both renewal and first-time clients.

This process goes well beyond the standard intake forms most insurance agencies use. It allows us to have a wide-ranging conversation about what’s going on in the client’s life and unearth anything that might impact their insurance needs.

Uncovering A Risk That Had Gone Unnoticed

In this client’s case, he had a very nice house with a “man cave” type basement that included an expensive sound system. I quickly noticed his Allstate home insurance only had a $5,000 water backup limit, which was nowhere close to adequate coverage for a property like his.

This kind of lower water backup limits are pretty standard for Allstate policies but it had never been pointed out to the client. His house was not in a flood-risk area, so he had never thought about it either.

Following my recommendation, he switched to an Hanover policy that would up the water backup limit to $50,000 with only a slight premium increase.

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

Never treat your insurance policies as a set-and-forget.

Most people take their policies for granted, especially if they have never had to file a claim.

At Secure Futures, we don’t wait for our clients to inform us of what’s new in their life that might increase their risk exposure. We check in periodically with them and talk them through examples of life situations and owned assets they might not even know they should bring to our attention.

This proactive approach helps us spot issues before they become problems.