In this recent episode of Law and Financial Order, Warner Wealth advisor Robyn Wolcott, CFP®, estate planning attorney Erin Duques sit down with insurance specialist Morgan Krause from Anderson Krause Insurance. This episode focuses on the importance of insurance planning. This episode aims to explain insurance concepts in plain language and discuss practical ways people can protect their homes, vehicles, belongings, and overall financial well-being.
The episode opens with humorous examples of celebrity insurance policies, including Bruce Springsteen insuring his voice and Heidi Klum insuring her legs, to illustrate the broader purpose of insurance: protecting valuable assets and income.
Homeowners Insurance
Morgan explains that homeowners insurance is based on a home's replacement cost, not its market value. Insurance companies calculate what it would cost to rebuild the home using factors like:
- Square footage
- Construction materials
- Labor costs
Claims and Documentation
It is important to note that insurance claims are much easier when you've documented your property before loss happens. Without records, people often underestimate what they owned or struggle to prove value. After a major event (fire, flood, theft, etc.), people typically:
- Forget items they owned
- Misremember quantities (furniture, kitchen items, clothing)
- Lack of proof of value for reimbursement
- Lose receipts or purchase records
Liability and Umbrella Insurance
Umbrella insurance provides extra liability protection beyond home and auto policies. Morgan recommends that most people carry at least: $1 million in umbrella coverage. Umbrella policies can extend over: Homes, cars, rental properties, boats and recreational vehicles.
The episode’s core message is that insurance may not be exciting, but it is essential for protecting the assets and financial stability people work hard to build. Regularly reviewing coverage and ensuring adequate liability protection are very important.
If you're curious to hear more, you can listen here. Law and Financial Order - Podcast - Apple Podcasts
*Erin Duques is not affiliated with or endorsed by LPL Financial and Warner Wealth.
**Robyn Wolcott, James Warner, Warner Wealth and LPL Financial do not provide legal advice or services. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
***Morgan Krause of Anderson Krause Insurance is not affiliated with or endorsed by LPL Financial and Warner Wealth. This material contains only general descriptions and is not a solicitation to sell any insurance product. For information about specific insurance needs or situations, contact your insurance agent. Guarantees are based on the claims paying ability of the issuing company.