This last week on the new TV show Buried Treasure, we viewed a sad story about a small business owner who was about to lose her business, and it’s real estate, due to an under insured fire. The proprietor raised horses successfully for many years.
The story told us about a lighting strike to a large barn that housed the owner’s horses, and other valuable assets, that burned to the ground. Fortunately, the horses were saved, but the valuable horse semen and other assets were a total loss.
The amount of insurance covering this event did not provide enough funds to reimburse the owner for her lost assets and did not provide on going funds to cover the continuing expenses and the loss in profit created by the fire. Also at risk was the debt service for the real estate where the business was located.
The Keno Brothers, legionary antique appraisers who frequently appear on the PBS Antique Road Show, came to the rescue. After going through the business owner’s home, they located several valuables to more than offset the fire loss and more. How fortunate for the owner to have this opportunity to meet the brothers – most folks are not so lucky.
In fact, in the last few days, JD Power reported a survey that stated that a large percentage of homeowners are dramatically under insured.
Under insurance has become a National issue and potential tragedies for many unsuspecting consumers. This issue demands the attention and action by all stakeholders: homeowners; insurance companies; insurance agents.
Why the insurance community has allowed this to occur is beyond me.
The insurance companies and insurance agents have the tools to help consumers estimate appropriate values. So why are this service not being provided or used to inform consumers to make better decisions?
I would welcome your comments.
Listen – Learn – Call Into “Insurance Matters” every Tuesday 8 a.m. on Sacramento’s Money 105.5 FM, phone 866-576-1055; plus the first Saturday of the month at 9:30 a.m. on 1380 AM KTKZ, phone 888-923-1380 – Online at Small Biz Talk Radio