Updating Your Insurance—An Obligation Which Is Often Overlooked
Do you remember this post, The Theft Peril—What You Can Learn About Insurance From Cows, which portrayed my three cows?
Orlando Perry, Katy Perry, and Daisy Perry
I sold Orlando, but Katy Perry and Daisy Perry had two calves this spring. My herd is up to four with new calves Margo Perry and Cali Perry. My big Texas hat, boots, and more than enough cattle are starting to worry the Dallas city slickering and insurance company cigar-smoking attorney Steve Badger as the Merlin Law Group presence is growing into Texas.
As I was thinking about the changes of my good fortune to have an increasing herd, I thought about the obligations of policyholders to update their insurance policies to reflect changes in property ownership and characteristics. Updating your property insurance policy to reflect new acquisitions, improvements, or significant changes in your property’s value is not just a matter of good practice—it’s an essential step to ensure that you are adequately protected in the event of a loss. This obligation, often overlooked by policyholders, can have significant implications for coverage.
When you acquire new property or make improvements that increase the value of your existing property, it’s crucial to inform your insurance agent and update your policy. Insurance policies are designed to cover the value of your property at the time the policy is issued or renewed. If the value of your property increases due to new acquisitions or improvements, the original policy may not provide sufficient coverage to replace or repair the property in the event of a loss. It could lead to penalties because you did not update the new property values.
Many insurance policies include clauses that require policyholders to inform the insurer of any significant changes that could affect the coverage. Not adhering to these terms can lead to disputes or denial of claims merely because you failed to notify the insurance company about changes and improvements to the policy.
While I am making fun of my small growing Texas herd, the point is important. The obligation to update your property insurance policy is a critical aspect of maintaining adequate coverage and protecting your financial interests. Overlooking this responsibility can lead to underinsurance and potential financial hardship in the event of a loss. By regularly reviewing your policy and communicating with your insurance agent about any changes, you can ensure that your property is fully protected from loss.
Thought For The Day
I stand for honesty, equality, kindness, compassion, treating people the way you want to be treated, and helping those in need. To me, those are traditional values.
—Katy Perry
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