UNITED STATES—When it comes to managing your investment portfolio, you need a thorough evaluation, a solid strategy, and routine monitoring to make any necessary adjustments. Your insurance portfolio is an integral part of your overall asset management, and financial planning. Underestimating your portfolio by leaving your assets unsecured, and being underinsured are far too common, despite the ample opportunities and available resources to resolve these missteps.

As a homeowner, your house is an important financial asset and part of your net worth. Yet it has been widely recognized that underinsurance is a national problem. A study conducted between 2002 to 2006 revealed that 58% and 73% of homes in the United States were underinsured. And more recently and closer to home, it was discovered that 80 percent of homes affected by 2018 California wildfires were underinsured.

Here are some of the most common reasons why homeowners are underinsured:

• The cost of home construction materials has increased 35.4% and labor has increased 30% since 2020.

• Just 30% of homeowners have updated their Homeowners insurance policies to reflect the increased costs.

• Only 40% of homeowners who renovated their homes during the COVID pandemic updated their insurance to account for the changes.

• Many have failed to conduct an updated valuation of their property, as well as the contents housed within.

• Underestimating your risks for catastrophe. According to Veridesk’s Wildfire Analysis Report, over two million homes in California are in areas or high or extreme risk for wildfires.

 

Complicating these challenges for homebuyers has been the well documented disruption in the insurance industry, which has resulted in many insurers in California to cease writing new Homeowners insurance policies. And in many instances, policy holders have been notified by their carriers that existing policies will not be renewed.

Navigating the every-changing landscape of Homeowners insurance can be a difficult undertaking and high-value homes, investment properties such as rentals, and secondary or vacation homes require expertise and foresight to secure specialty coverages. And considerations should also extend beyond your property structures by securing your personal possessions. Valuables, high-ticket items, and collections should be insured via Personal Articles Floater (PAF) policies which extend coverages beyond the coverage limits of any existing Homeowners or Condo policies. Items such as: jewelry, designer handbags, watches, electronics, cameras and video equipment, musical instruments, antiques, fine art, sporting equipment, and collections of coins, stamps, or vinyl records. It’s vitally important that a home inventory be performed annually and provided to your Insurance Advisor so adjustments can be made to updated your coverages accordingly.

High-net worth individuals and families with significant assets also need additional protections when it comes to personal liability. Umbrella policies provides liability protection which can help cover the cost of damage to another person’s property or if they’re injured while on your property. Settlements from lawsuits can be financially draining, and when the average dog bite claim is $80,000, and “slip and fall” payouts can range from $20,000-$60,000, but go well beyond $200,000, it’s easy to see why this coverage is so essential. And Personal Excess Liability policies can provide increased coverage limits beyond your existing Home or Auto policies. This additional coverage limit can help protect you from the unexpected and can prevent you from needing to rely on your valuable assets to pay for judgments above your policies’ underlying limits. Personal excess liability policies also provide coverage for non-business liability claims, such as defamation of character, libel, slander, and false arrest.

And while you’re making decisions regarding protecting your loves one and your family’s financial future, Life insurance is one of the most important considerations. It’s estimated that 40% of Americans will leave behind a financial burden to a loved one in the event of their death, yet only 60% of Americans have some sort of life insurance policy. Life insurance provides financial security by helping to pay off debts, pay for living expenses, and can help to pay any medical or final expenses. As income replacement, it can pay the mortgage, tuition expenses, childcare or healthcare, and eliminate household debt. It’s also tax-free, as the benefits of a life insurance policy are generally passed along federal income tax free.

As with all financial management, the key to successful portfolio management is securing a high-level advisor. By partnering with a licensed, experienced, and skilled Insurance Advisor well established in your community, you’ll ensure that you receive the best guidance on managing your policies. All aspects of your financial portfolio will be reviewed, and a wide range of customizable solutions for security and protection of your assets, savings, and investments will be available. You’ll receive professional account
management that offers personalized services and support, routine policy reviews, claims advocacy, and much more.

As “California’s Insurance Experts,” and award-winning Licensed Insurance Advisor, The Mark Newman-Kuzel Agency is uniquely poised to provide expert consultations, concierge-level service, and customized insurance solutions for you, your family, and your investments.

The Mark Newman-Kuzel Agency
CA License # 0I93043
Website: http://themmnkagency.com
Call: 323-660-0076
Email: mark@themarknewmankuzelagency.com

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Written by Mark Newman-Kuzel