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The Importance of Reviewing Your Home Owners Insurance

Downsizing (or upsizing) your home and relocating are key financial planning issues, and there are a lot of moving parts.  If you are my client, I know where you live, about how long you plan on staying there, and where you may be going.   We know the amount of your mortgage outstanding and your current home related costs.We are as clear as we can be on the market value, the expected cost of your destination and the anticipated costs of a move.  The former is a fact; the amount outstanding on your mortgage is non-negotiable, measurable.   The latter is, what I would call, a variable.  Not quite a “what-if”, because we have control over it.  Well, mostly..

During a recent  conversation with my friends and colleagues, Pat and Tiffany Olmert, (link to video here:   https://www.youtube.com/watch?v=5W6IScUBoiw&t=144s), I was reminded of how important it is to regularly review your home owners policy.  

To quote our conversation from the Zoom video referenced above “..our job is to keep things moving forward, and to provide wisdom where we can, and guidance where we can, and help keep our folks out of the ditches.”  

Here is Tiffany Swain’s experience. 

Tiffany: 

“just a few weekends ago, I went to show a house and unfortunately when I got there, the house was on fire, literally a homeowner's worst nightmare.”

Kristine:

“I can't imagine it getting much worse.”

Tiffany:

“Well, luckily the fire department came, and they were able to put the fire out with minimal damage.” 

“But like you said, you worry”.

My commentary as I write this blogMe, worry?  Overthink?   Yes, all of it.  Maya Angelou said “Do the best you can until you know better. Then when you know better, do better.”  And gang, we need to focus on your homeowner’s coverage.  If you haven’t in the past, we are motivating on it in 2021, so get ready.

I digress, back to the Zoom call….

Tiffany:

“Well, I called the fire department and I called the listing agent. And she contacted the clients to say ‘your house is on fire.’ But like you and Pat said, they probably need to make sure that they had enough coverage because they weren't living in the home full time.”

My blog commentary:  Ugh….too late for that.  The horse has already left the barn.  And the barn is ON FIRE.  I repeat; we need to focus on your homeowners coverage.

Pat:

“You’ve got to communicate. I worry that people think ‘It's going to cost me more money.’ I don't think anybody here is trying to sell you a darn thing. We just want to make sure that whatever money you're spending on that policy, when you need it, and rubber hits the pavement, it's going to do what you are expecting it to do.” 

Point taken, Pat!

When it comes to your financial plan, the real work is solving for the unexpected. You’ve heard me say one hundred times; “it’s the unknowns that will get you.”  We identify the what-ifs as best we can, and then solve for them.   I can’t promise you that there won’t be bumps, the bumps are unavoidable.  But with communication, careful consideration and planning, we’ll keep you out of the ditches!

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