Giving Thanks for Insurance

By Diane Tait

Image courtesy of Pixabay

As Thanksgiving Day draws ever nearer this month, I thought I’d take the time to point out several reasons why policyholders should be thankful for insurance.  Without sounding self-serving, it’s important to acknowledge that were it not for insurance, our homes would be at greater risk, our businesses would be more likely to fail and our lives would be less fulfilled. You heard me right, it’s because of insurance that every American can feel free to take risks that they would otherwise not entertain, for fear of the consequences.  Allow me to elaborate.

1.      Do you own a business? – They say that 2 out of every 3 businesses fail in the first two years.  Just as there are many ways to go into business, there are even more ways to get forced out of one.  Most of them have nothing to do with your ability to close clients and sell goods or services.  What happens if a client or prospect slips and falls when they visit your office.  Who are they likely to sue?  How about if your consulting business provides advice to an individual that causes them a financial loss?  What happens if your place of business burns down or is burglarized?  Could you afford to replace all the contents of your business should either of these occur?  Think of how a ransomware attack or a hacker rifling through or destroying your business’ digital infrastructure would affect your ability to do business. This is why there’s an entire suite of business insurance products that are designed to help you weather any of these losses without losing your business.

Image courtesy of Pixabay

2.      Can you seas the day? – In Florida, it’s possible to boat year around.   That’s the good news.  The bad news is that Florida is also visited by more hurricanes and thunderstorms than any other state.  If you own a boat, you realize that were it not for boat insurance, the risks you face on the water could sink you faster than a boat that has struck a reef.  Just as when you drive a car, if you own a boat, you face a myriad of risks that could prove ruinous should your boat be involved in a collision, a sinking, or a loss of life.  Just as with a vehicle, anything that your boat damages, be it another vessel, a fixed structure, or any person injured by or on your boat represents liability to you.  Not to mention that many boats today cost as much as a house.   That being said, your house is never likely to break its moorings only to drift down the street to damage your neighbor’s homes.  Your boat can.

3.      How often do you take a vacation? – If you take at least one vacation per year, then you know that missed connections, lost luggage or cancelled reservations can turn a dream trip into a nightmare.  So can being injured or taking ill in a foreign land.  What if the country in which you’ve booked a trip were suddenly plunged into civil war?  Until the advent of travel insurance, all these risks and more were dumped squarely on the shoulders of the traveling public.  For a fraction of the cost of your trip, every American can purchase a travel insurance policy that could save them thousands of dollars were any of these calamities to occur. 

Image courtesy of flickr

4.      Do you own your own home? – Since your home is one of the biggest investments you will ever make, think of how much more you would have to invest to keep all sorts of calamities from putting you out on the street.   Have you ever had a windstorm peel the shingles from your roof, or had a fire break out in your home?  What do you suppose you’d do if you came back from a vacation to find out that thieves had backed a moving truck up to pilfer all your belongings?  If you’ve ever entertained the notion of doing a kitchen makeover or adding a new room onto your house, aren’t you glad that for a few dollars more you can acquire additional coverage that will pay you should the contractor accidentally damage or destroy your home?  Speaking of entertaining, what do you think would happen if one of your guests injured themselves on your property during your next party?  Since injuries of these types can result in awards of $50,000 or more, aren’t you thankful your homeowner’s policy contains liability coverage?

Image courtesy of flickr

5.      Would your son or daughter agree to wait until they were 30 to start driving? - While driving in this country is a privilege, it can prove an expensive one.  Especially to young, inexperienced drivers who are more prone to have accidents than more mature drivers.  While we were all young once, when we learned to drive, most vehicles weren’t almost as expensive as a house.  With the average cost of a car being $33,560, were it not for the availability of auto insurance for youthful drivers, would you be willing to give your son or daughter a car for their birthday or give the keys to your car to your 16-year-old?  Far from only being liable for damage to your vehicle, should your teenager get into an accident, it could open you up to a can of worms including damage to other vehicles and property, bodily injury, medical expenses and the possibility of being taken to court. 

6.     Here’s to your health! – While most Americans fret over the cost of health insurance, think of how much more it would cost if you had none.  When you consider the average cost of a 3-day hospital stay is more than $30,000 and cancer or coronary care can set you back hundreds of thousands of dollars, how many Americans could afford a hospital stay were it not for health insurance?  While by no means perfect, having a healthcare plan with a $3,000 deductible means once you pay $3,000 in deductibles and co-payments, the plan pays for covered care for the rest of the year.  Sure, you still have to pay your monthly premiums, but that’s a far cry from what you’d be forced to pay if you had no health care insurance at all.

Diane Tait owns and operates A&B Insurance.  To find out more about how you can save money on renter’s insurance, go to her site or fill out the form at right.