P&C Insurance Management
Private Wealth—Management of Property and Casualty Insurance (P&C)
At Private Wealth, nearly all our clients need some form of property and casualty insurance. We can also say, without a doubt, that nearly every client dislikes thinking about insurance and dealing with the companies that provide property and casualty coverage. Why is that? First, let’s define the topic.
What is property and casualty insurance? Think about your policies related to automobile insurance, homeowners insurance, condo insurance, renters insurance, toys and power sports insurance, landlord insurance and business insurance. The two parts of property and casualty (P&C) insurance are:
- Property: Refers to insurance policies that cover the things you own—your personal property, whether the property is stolen or damaged due to a covered scenario. Your property could be the structure of your house, the items in your house, your car and your toys. The insurance can be extended, in some cases, to property or assets owned by your business.
Basically, this aspect of property and casualty insurance helps cover repairs and replacement for your own property.
- Casualty: The other half of property and casualty insurance will help cover expenses related to your legal responsibility if found at fault for another party’s losses, including both physical injuries and damages to property. This will typically help cover costs in and out of court, so it will pay for your legal defense fees as well as any restitution you’re required to pay—up to your coverage limits.
Umbrella policies are not considered property and casualty insurance as they only cover liability. These policies are an important part of our clients’ financial planning needs and related to this topic, but it is a separate conversation.
The paperwork can be overwhelming, as understanding and knowing what is covered and not covered seems to be a moving target, and comparing one property and casualty policy against another is difficult. The primary questions our clients ask us are:
“Am I covered?”
“Are the premiums I am paying reasonable?”
“Are there better policies or different policies I should consider?”
“I have owned these policies for a long time, do I still need them all? “
Your Private Wealth team has been helping families like yours simplify property and casualty insurance for a very long time. We understand your balance sheet, can help identify your unique insurance needs and will walk you through the process. This is not a one-time exercise … your balance sheet will change, your insurance needs will change, but our commitment to help you manage this part of your financial planning is steady.
You might be asking—isn’t this what the insurance broker is for? Yes. But which one? Which companies will the broker approach for bids? What is in the fine print of the property and casualty insurance policies recommended by the broker? Are all your assets covered? Are the deductibles appropriate and do they provide you with the best value for dollars spent? Your team at Private Wealth will ask the tough questions and require property and casualty insurance brokers to invest the time with you to discuss all exclusions and provide you with the information to make an informed decision.
Why Is It Important?
One of our client’s neighbors had an elaborate dock with multiple watercrafts stored at that dock on a lake in Iowa. A large storm hit and all was destroyed. The neighbor later found out that his loss was not insured because his property and casualty insurance policy had an exclusion for damage caused by wind. For most anyone that knows Iowa, a leader in wind generation, this policy exclusion should have been rejected. However, the neighbor had not read the fine print and didn't have a business consulting firm, like Private Wealth, managing the broker to make sure that all the policy exclusions were reviewed. The net result was a complete loss for the neighbor.
We are here to make sure our clients’ property and casualty insurance is protected from these kinds of preventable losses. How can we help you?