Update on our recent fire incident.
As mentioned in a previous post, our building was severely damaged, and it looks like it will be a total loss. Unfortunately, we discovered that we were underinsured by approximately $200,000, as we hadn’t updated our coverage in the past 15 years.
This raises a question: who is responsible for ensuring our coverage is adequate? Shouldn’t our insurance agent have prompted us to increase our policy? After all, that’s part of their role, isn’t it? If not, then what is the value of having an agent?
Or maybe this oversight falls entirely on us?
I’m really sorry to hear about the fire and the situation with your insurance coverage. It’s a tough spot to be in.
In terms of responsibility for updating coverage, it can be a bit of a grey area. While insurance agents do have a duty to provide guidance and ensure clients have adequate coverage, it’s also the policyholder’s responsibility to review their coverage needs over time. Often, factors like inflation, renovations, and changes in property value can impact coverage needs.
That said, a good agent should be proactive about reaching out periodically to discuss coverage, especially after significant life events or changes to the property. It might be worth having a conversation with your agent about what happened here to better understand their role and whether there was a gap in communication.
Ultimately, it’s a joint responsibility, but it’s definitely frustrating when you find out about such a significant oversight. Going forward, you might want to set a regular schedule to review your coverage and adjust as needed. Hang in there!