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Insurance is a Scam

Do you realize that there are people out there living in the United States during the 21st Century that honestly believe insurance is some big conspiracy scam created to steal the average American’s money?

insurance is a scamThese people believe that insurance is a scam.

I’ve had people sit in my office and tell me, right to my face, insurance is a scam.  No joke…

It usually sounds something like this,

“Now…. I just want to be upfront with you… But I just think that, ummm, insurance is just a big scam.  Insurance is a waste of money…”

Be honest with yourself, there is a good chance you feel the same way.

You may not come out and tell your independent insurance agent that you think his/her livelihood is a big scam, but deep down you probably think you pay way too much for something that you never use (in this case insurance).  Its OK.

Its natural to think that way.  There is nothing wrong with you.

The problem, as I see it, is NOT in you, but rather in the perpetuation of Insurance as a Commodity constantly broadcast at you by direct writers. (Thanks a lot cough Lizard, cough, obnoxious frumpy woman, cough, former TV president on 24…).

You think that Insurance is a Scam because you don’t believe in the value proposition that insurance provides.

The Force Is Strong With This One…

I know it shows a lack of class to blast the competition, but to be completely honest, (My wife hates that phrase because it insinuates I was not telling the truth before, but I try to write these posts conversationally and well… sorry dear…), I don’t consider the before mentioned insurance carriers competition.

Not because their people are dumb, (Which they are not), and not because their product is bad, (Which it is not), but because these insurance carriers market insurance products as if they are all the same and price is the only thing that matters.

My hope upon hope is that over the course of the last 170+ posts on this blog I’ve enlightened you to the fact that insurance is not a commodity and the insurance carrier you do business with and coverage you purchase from that insurance carrier matter… a lot!

Insurance Jedi Mind Tricks

I know what you are saying to yourself right now,

“Ryan, I’m a great driver, I never get tickets and I never get into accidents.  I take care of my home and have never had a claim.  All the dollars I’ve spent on Insurance have been wasted.  Where the hell is the Value in that?”

Good question my young Padawan…

Let me tell you an insurance story:

I have a client who spun me a similar tale of paying too much and getting nothing in return during the process of reviewing his ny home insurance policy.

He was a stand-up guy who seemed to always do the right thing and was very proud of his family’s insurance history.  He also always bought the proper coverage, 100% replacement cost on his home, maxed out his liability insurance on every vehicle, etc.  He protected his family.  He was also very meticulous with his house.  When I went by to take pictures the place was immaculate.  He did everything himself or was involved first hand and felt very good about the condition of the house.

So every time I would meet with him about his insurance he gave me the Insurance is a Scam routine.  Because he had been paying $500 a year for the last 10 years for his NY home insurance and had never even come close to a claim.  That’s $5,000 with what was in his mind Zero return…

That does sound like a scam.

However, about a year ago the plot would thicken.  My client and his buddy were up on the roof of my client’s house fixing some shingles that were damaged after a really bad Ice Storm that rolled through Albany, NY in the middle of July.  Hail the size of golf balls, no joke.

Well, my client climbed off the roof to grab a new batch of shingles, in the moment of down time his buddy lit up a cigarette.  Just as the new batch of shingles hit the top of roof the cigarette was finished.  The cigarette was flicked off the roof and my client and his buddy went on to finish the roof repairs.

Unfortunately the cigarette did not make it off the roof.  It got caught on the edge of the roof between the gutter and sat there smoldering until some wind and the heat started the house on fire (Everyone got out safe, Thank goodness!).

The total loss figure between the fire and water damage from the Fire Department was ~$50,000 and because my client had secured proper and adequate NY home insurance coverage he was reimbursed his full need.

The Rub

Think about that for a second.

My client paid $5,000 over the course of 10 years as a Homeowner and in his time of need was given $50,000 to put his home and family back together.

How is that a Scam?

This is the VALUE of persistence and diligence to maintaining proper insurance coverage.  He could have gotten fed up and left our agency for a company offering a “Cheaper” price and less coverage…

Today he’s glad he didn’t.

This isn’t the 1700’s people, if you don’t have proper NY home insurance the village folk are not going to rally around you and have a house raising.  Insurance is what is going to put your house back together.

Needless to say I don’t get the Insurance is a Scam routine anymore…

If you would like to find out if your home has the proper insurance call us at (518) 456-6688 or click here to email us and speak to one of our NY home insurance specialists.