We all have visions of our ideal retirement. However, our financial plans can quickly veer off course if we haven’t appropriately managed our risks.
On this episode of Financial Symmetry, Greg Suggs from Greg Suggs Insurance joins me to discuss how to manage common risks that could negatively affect your wealth. You won’t want to miss out on these easy-to-implement pieces to your insurance puzzle that could save your assets.
Don’t take the set-it-and-forget-it mindset
Greg helps our clients with their insurance needs and regularly updates us on major industry changes. Today, he helps us understand risks that we may not have considered before.
With insurance, we often adopt a set-it-and-forget-it mindset. However, periodically, we need to review our insurance needs. While this topic may not be as fun as exploring high-performing stocks, it is just as important–and maybe even more important–when it comes to protecting your wealth.
Be careful of day-to-day disasters that could derail your ideal retirement
North Carolina is considered a high-growth state when it comes to the insurance industry. There is a population boom, but at the same time, hurricanes wreak more damage inland than they have before which is causing larger losses. This means the smaller insurance companies have begun to pull out of the state, but the larger ones remain.
While many people think of the giant catastrophes as the ones causing the majority of insurance losses, it’s actually the day-to-day catastrophes–fires, burst water pipes, etc–that cause the most damage.
Understand your policy coverage
When it comes to filing an insurance claim, you want to think, “Is this worth it?” Since insurance companies are looking for profitability, too many claims can lead to nonrenewals.
It’s important to understand your coverage before a major event happens. Each year, you renew your policy, so that’s a good time to study your coverage. If you have trouble understanding the material, take a minute to call your insurance agent. The biggest insurance mistakes come from inattention. It pays to be informed about what your insurance can do.
If you are considering purchasing a second home you won’t want to miss hearing what you should be paying attention to in your insurance policy. Listen in to discover the biggest risks to your financial independence and what you can do about them.
Outline of This Episode
- [1:23] A bit about Greg
- [2:09] Biggest changes in insurance over the past 30 years
- [5:12] The biggest risks for homeowners
- [11:11] Common mistakes homeowners make
- [14:33] What to think about if you are considering a second home
- [17:21] What to consider if you own a rental property
- [19:00] Automobile insurance for young drivers
- [23:22] What about insurance for gig work?
- [25:37] How to lower your insurance needs
Resources & People Mentioned
Connect with Allison
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