Call Your Insurance Company

I've previously posted about all the different kinds of insurance it is possible to obtain.  Now I want to talk about important things you should know about the insurance you already have.  When something changes that could affect items covered by an insurance policy, or when you or your company is faced with a claim that could eventually involve an insurance policy, the best thing you can do is call your insurance company as soon as possible.

After I graduated from college, I took a job working as a customer service representative for a home warranty company.  When something went wrong in someone's home—such as pipes leaking, air conditioner breaking, etc.—the customers would contact us.  My job was to then find a company that we contracted with (plumbers, electricians, and so on) to go out and fix the problem within 48 hours.  The only time there was ever a hiccup was when I had to tell a homeowner either that what was broken wasn't covered under their warranty or that we would not reimburse them for repairmen they hired without contacting us.  What I took away from the whole experience was to read every thing I ever signed very carefully and to always call a warranty or insurance company before doing anything myself.

Turns out that this is pretty standard operating procedure for any type of insurance coverage.  If you get into a wreck, call your insurance company before you have the car fixed.  If someone is suing you because they fell in your house, call your insurance company before calling anyone else.  The reasons for doing so are many:

The insurance company may have a specific way they want things handled.  This could be anything from the procedure they want you to follow when getting auto mechanic quotes to whether or not they will have a company lawyer defend you against a claim.

The insurance company likely has more experience than you and will help you understand what you have to do next.  It always helps to have someone step you through something, and when that thing involves money, or injury, or lawsuits, you'll be awfully glad for the insight and assistance.

Finally, and perhaps most crucial, if you don't contact your insurance company first you may void your policy or risk not being reimbursed.  That's right.  For example, imagine a professor sued his university after he was falsely accused of sexual harassment.  The university defended the case without telling their insurance carrier that they were being sued.  The result?  If the professor won, since the insurance carrier was not aware and could not have an opportunity to be part of the defense, the school would have to pay and not the insurance company.

Of course, there are plenty of times you should contact your insurance company besides when things go wrong.  Always make sure to contact your insurance broker when something happens that could alter or amend your policy.  If you get a new car, your teenager gets their driver's license, you make home improvements, you buy a new piece of art, or you hire a new employee, let any applicable agents know.  This way you can get your policy expanded or altered in order to make sure that you are covered in any event.

Many people put off dealing with insurance companies because it can be a hassle.  This is a dangerous attitude.  Instead, partner with your insurance agent to make sure they have your back regardless of what goes wrong in life.  Remember, if something happens, good or bad, that could possibly affect an insurance policy, call the insurance company as soon as possible.

Related Links:

• Get more information about renter's insurance.
• Get answers to frequently asked questions about car insurance.
• Find out more about insurance and how it works.