National Insurance Awareness Day was held on June 28 as a reminder for individuals, families and businesses to review their insurance policies and take steps to prevent being underinsured. But shouldn’t we all think about this topic every day, or at least prior to our insurance policies renewing?
Insurance review should include windstorm and flood insurance coverages, according to the American Property Casualty Insurance Association (APCIA). Flood insurance in particular is an area that many property owners who do not live or work in flood zones fail to consider.
Underinsurance is also an important consideration for property owners. Many properties are insured for market value, which is what it can be sold for, instead of the cost to repair or replace the structure, which can often be higher than market value.
“The issue of underinsurance can arise after a major catastrophe when building costs skyrocket and consumers find they do not have enough coverage to rebuild,” said Jeff Brewer, vice president of public affairs for APCIA. “A national shortage of construction materials, including lumber and computer chips used in smart appliances, could result in delays and higher costs, making recovery and rebuilding more challenging if widespread losses occur.”
Brewer urged policyholders to create home inventories to help make sure they are fully covered.
AmTrust Financial recognized the day as a timely reminder for nonprofits in particular as July 1 is one of the biggest days on the calendar year for nonprofit and human service businesses to renew their insurance policies.
The “awareness” day was also a time to consider insurance careers. According to the U.S. Chamber of Commerce, over the next 15 years, 50% of the current insurance workforce will retire, opening up more than 400,000 positions, in an industry where less than 25% of the workforce is under the age of 35.
“As the business of assessing risk, underwriting, and selling insurance becomes more dependent on technology, insurers must find ways to attract tech-savvy talent across all departments, not just for historically back-office I.T. roles,” the Chamber said in a workforce report.
The Tennessee Department of Commerce and Insurance (TDCI) used this year’s Insurance Awareness Day to highlight consumer claims mediation efforts that have resulted in $4,027,014 in denied claims being overturned in favor of policyholders so far in 2021. Mediation is a process where TDCI insurance investigators intercede between insurance companies and policyholders to get wrongfully denied claims paid for policyholders. More than $10.2 million was returned in all of 2020.
While the National Insurance Awareness Day has been observed for several years, one of the earliest references appeared in an insurance agency post in 2013, it is truly a day that should be recognized every day.
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