How Does Insurance Benefit Society?

Jessica Weaver, CIC

A new year and a new outlook. I welcome 2023 differently. Not only to reflect on pitfalls that I fell into last year, some industry struggles but, rather focus on the greater good. And that's what I plan to do. Let me explain.

2023... will be my mission to educate the public that insurance serves a greater good even through the pain of increasing rates. And It indeed does. I have some first-hand stories that you might find interesting if you have not had to use your insurance.

For example, the wind storms in 2020 knocked down massive trees in the county. Some collapsing structures have been around for almost a century. Homeowners having their entire lives rearranged ended up having $100,000's + in claim sums of money to rebuild the structures and remove the downed trees (some as wide as a dining table). Can you believe it was well over $15,000 for the tree removal? There were other expenses to fix the property, but the bulk was the tree and structure costs. The out-of-pocket was significantly minimized with the help of an insurance policy.

Have you noticed the cost of repairing a vehicle after striking a deer? A bumper replacement, headlights, cameras, etc that is quickly pushing $5,000 +.

My flood damage to my home in 2019 was another large claim that without the Private flood program to assist me in the rebuild, I would be going to my lender to get a loan to rebuild. I paid $800 for my premium that year and was paid in return over $130,000 to rebuild. The 8 tons of building materials and personal belongings that went to the landfill was a hefty bill. I was very thankful for my excellent flood insurance program (and agent!). I do not wish anyone to experience a flood loss as I did. It wasn't very good. But less awful with the insurance.

Let's also not forget the cost of defending us. Litigation costs are insanely high. Some lawsuits take months and sometimes years to battle. Our insurance policies have a duty to defend until a settlement has been made. (Obviously there are exclusions to that statement, intentional acts are not covered!). That protection alone is worth every premium penny spent! After serving time on the board with the Local Government Liability Pool, I had first-hand experience with the cost of a lawsuit. As the average person with a family, I am not sure we could afford not to have a good liability insurance program.

According to NAMIC Issue Analysis "Why your insurance costs what it does: A risk-based pricing primer," Insurance plays an important role in society, allowing businesses and individuals to live their lives and move forward with peace of mind.

• Reduces risks people may encounter, which means people can start businesses, hire employees, manufacture products, and buy homes, cars, and other consumer goods;

• Promotes improved safety for individuals and businesses with loss control and risk management;

• Assists in community recovery following natural disasters;

• Contributes trillions of dollars in taxes, funding, and investments in the economy; and

• It helps keep the economy moving forward by providing peace of mind in an uncertain world

With all that being said, I wish you a claim free 2023. I pray for you and your family or business. I pray for our ranchers and farmers. Here's to robust, reliable insurance policies, and the knowledgeable agent is at your side. Please take the time to consider purchasing added layers of litigation protection, flood insurance, and life insurance. I welcome you to contact our office for details on what that looks like.

Thanks for reading, and as always, you are my favorite!

Jessica J Weaver, CIC

Agency Owner