Understanding the Insurance Price Hike: A Perspective from a Property and Casualty Agent
As a property and casualty agent, I’ve been on the receiving end of numerous conversations about rising insurance costs, particularly for home and auto coverage. It’s undeniable that many individuals are expressing their frustrations, and it’s hard not to sympathize—some clients are facing premium increases of up to 50%. It’s a situation that can leave anyone feeling upset and under pressure.
However, there’s a certain type of complaint that I find hard to empathize with. Take, for example, a client who owns multiple homes valued at over $1.7 million, drives several luxury cars, and expects me to work around his busy schedule—he’s out on the golf course, after all.
Yes, it’s true that insuring a home worth $1.7 million may lead to a premium around $5,000. But let’s put that into perspective. My clients with more modest homes, valued at $300,000, often face premiums of approximately $3,000. When you look at these figures as a percentage of the home’s value, it’s clear that those with higher-valued properties are actually paying relatively less in terms of risk coverage.
So, here’s the bottom line: if the cost of insurance is making you uneasy, perhaps it’s worth reassessing your financial choices. Owning multiple luxury properties and vehicles may come with its own set of responsibilities, including the cost of insuring them. If insurance premiums are a significant concern, consider the option of selling some of those assets.
In the end, managing expenses is part of the territory when it comes to wealth. If you find yourself distraught over insurance costs, take a moment to reflect on whether the vast collection of possessions is worth the financial commitment. After all, it’s all about finding balance—between enjoying the luxuries of life and managing the costs that come with them.
