Common Insurance Mistakes We All Make
By Steven D. Brett, Managing Director, Partner, Marcum Wealth
Crazy weather is not just a domestic problem. In Russia droughts destroyed 40% of the grain crop, sparking an attendant rise in grain prices. The same drought caused 30 foot deep cracks to appear in the farmlands north of China’s Inner Mongolia Autonomous Region, keeping farmers out of the fields. Meanwhile, other parts of China have been experiencing floods and mudslides. In addition, in this country certain regions have seen 100-year floods, while places like Texas have had 100+ degree temperatures for months with no rain. I could go on, but you get the idea — the weather has turned undeniably weird and at times it has proven to be fatal.
Catastrophe modeler AIR Worldwide estimates Irene’s insured losses at $3 billion to $6 billion, with some direct and indirect cost estimates topping $40 billion. The death toll from Hurricane Irene hit a sobering 44 peoplethat were reportedly killed by thestorm. These numbers and fatalities prove that weather and life is sometimes dangerous and often unpredictable.
With that backdrop we all know we need insurance; but, it is not usually at the top of our priority list. Insurance is a valuable tool to protect our families from unforeseen events that can severely damage their financial futures, but it does not often get much of our attention. So, we compiled a list of common insurance mistakes to help you determine if you are properly insured as well as avoid before it is too late.
The recent devastation caused by Hurricane Irene underscores the need and reminds us all that we must have an emergency contingency plan for ourselves and our families. Many people have begun to think about what they would do if caught on the wrong side of a natural or family disaster. The time is ripe for you to sit down and review insurance needs, emergency planning, and some of the common mistakes and overlooked issues associated with insurance.
This material was prepared by Raymond James for use by Steven D. Brett, President of Marcum Financial Services LLC., and Branch Manager of Raymond James Financial Services, Inc. Member FINRA/SIPC.
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