Ask Our Experts: What You Should Know About Insurance

Why
Is Insurance Important? NYCM Experts Explain Why We Insure Our Vehicles, Homes,
And Businesses

Insurance is often regarded as a necessary
but inconvenient expense; something that we tend not to think about until the
time comes to file a claim or make a payment.
In some cases, insurance may be mandatory, like when you are registering a
vehicle in New York State. In other cases, insurance can be an additional
safety net, like coverage for food spoilage in the event of a power outage in
your home.

In any case, insurance exists to offer
you peace of mind and a financial promise for when life throws one of its many
curveballs at you. Without insurance, something as common as a fallen
tree branch or a fender bender could lead to serious financial losses.

For National Insurance Awareness Day, we
sat down with some of our industry experts to discuss why we have
insurance, common insurance misconceptions, and general advice to remember when
reviewing your policies this year.

Protecting What Matters Most to You

President & CEO Cheryl Robinson has
served in a number of roles within NYCM Insurance since joining in 2001 and has
unique insight into the insurance experience, including the perspectives of agents, customers,
and employees.

“Most of us see insurance as a necessary
evil; something we are forced to purchase in order to drive or buy a house,”
said Robinson. “And since we have to buy it, we often don’t take the time to
understand what we are actually buying—but it is very important to understand the coverage you have and the
coverage you do not have. The most impactful experience
you will have with your insurance company is at the time of an actual loss.
Learning after something has happened that you don’t have the right coverage −
or enough coverage − is too late and, quite frankly, a hard lesson to learn.”

When it comes to understanding the many
options available in purchasing insurance, it can feel like a daunting and
overwhelming task. Luckily it is not a journey you have to face alone, and
there are many agents and industry professionals who can help you make informed
decisions along the way. By taking the time to fully review your options when
you first purchase or renew insurance, you may save yourself both time and money
in the event of a claim.

“The claims experience can be emotional for a lot of reasons, but the
financial burden you may be facing doesn’t have to be one of those reasons if
you spend a little more time when you are going through the purchase process,”
said Robinson. “A cheaper product may mean you are actually just getting less
coverage than you may want.”

A One-of-a-Kind
Industry

When many people think of insurance
companies, the first thing that comes to mind are the many commercials and
company mascots that are advertised on our TVs and phones every day. And, in
addition to all the marketing strategies insurance companies have carried out,
each insurer also creates and offers unique products and services.

NYCM Senior Vice President of Claims Tim
Trueworthy explained, “Unlike many other consumer purchases, the decision to
buy insurance is often compulsory and mandated by law or as the result of risk
mitigation efforts of financial institutions. But very much like other consumer
purchases, insurers do make strategic decisions to differentiate themselves
from the competition. Understanding the broad range of choices and competitive
offerings personal lines insurers have at any given time can be very daunting
and intimidating.”

During a time of inflation when most products and
services are becoming more expensive, many people are looking for opportunities
to save money anywhere they can. And while it’s
great to maintain an optimistic attitude, it’s important to remember to be
realistic about your coverage needs when purchasing insurance to avoid leaving
yourself underinsured.

“While the path of least resistance to
reach a short-term goal of obtaining a car or house might seem to be the most
appealing, long-term considerations — including the impact to one’s financial
future should unforeseen accidents or disasters occur — also need to be a part
of the equation,” added Trueworthy. “Seeking expertise and advice from
professionals should not be overlooked or avoided.”

Learning
to Prepare for the Unexpected

Having the right insurance coverage can
enable you to breathe a sigh of relief, even in the aftermath of a crisis.

Put simply by NYCM Senior Vice President
of Technology Kevin Plows, “When you have worked hard for everything you own,
having insurance gives you peace of mind knowing that the people and things
that matter most in your life can be protected if the unexpected happens. And
when the unexpected happens, insurance reduces stress during those difficult
times because you know you have a trusted advisor to guide you.”

Accidents happen, and while no one is excited
about filing a claim, having the right coverage can make all the difference in
ensuring that your property and livelihood are secure.

Robinson said in closing, “Insurance is
complex and each individual has different needs. There is no ‘one size fits
all,’ so be sure to reach out to an expert to find the size that is just right
for you! It will provide you with an insurance experience that provides
confidence and peace of mind from start to finish.”