WEBVTT
1
00:00:00.540 --> 00:00:04.110
This is West Michigan's Morning News. Good morning. It's Steve Kelly, Wednesday,
2
00:00:04.139 --> 00:00:09.810
October 7th. So here's what Google says about insurance. Insurance
3
00:00:09.910 --> 00:00:13.250
is a legal contract where you pay a small regular fee,
4
00:00:13.449 --> 00:00:17.370
a premium, to a company in exchange for financial protection
5
00:00:17.469 --> 00:00:21.390
against unexpected losses or accidents. I think we've all pretty
6
00:00:21.429 --> 00:00:24.050
much got that figured out, but what about in today's climate?
7
00:00:25.469 --> 00:00:29.320
insurance advisor at Lake Michigan Credit Union also known as
8
00:00:29.539 --> 00:00:32.079
Lake Michigan Insurance Agency Tom Klaus on the live line
9
00:00:32.119 --> 00:00:34.539
with us this morning Tom thanks for doing this today.
10
00:00:35.060 --> 00:00:36.340
Hi Steve thanks for having me.
11
00:00:36.740 --> 00:00:39.640
So what's the biggest mistake people are making when they
12
00:00:39.679 --> 00:00:42.039
buy insurance right now I would.
13
00:00:41.939 --> 00:00:45.119
Say the number one is shopping for price instead of
14
00:00:45.159 --> 00:00:49.090
just protection and value you know you don't want to
15
00:00:49.100 --> 00:00:52.630
put your insurance on autopilot without at least a professional
16
00:00:52.689 --> 00:00:58.049
reviewing that occasionally And finally, waiting until there's a claim
17
00:00:58.170 --> 00:01:00.890
to understand your policy. It's the worst time to find
18
00:01:00.929 --> 00:01:03.670
out that you're unprotected, but we find that happens all
19
00:01:03.710 --> 00:01:06.709
the time. People have a misconception of what their policy is.
20
00:01:07.409 --> 00:01:10.409
It's better to take a little time before that happens
21
00:01:10.489 --> 00:01:12.609
to find out what you actually have. Oh, boy.
22
00:01:13.109 --> 00:01:17.159
What's the biggest insurance issue your customers are talking about
23
00:01:17.310 --> 00:01:17.750
right now?
24
00:01:18.420 --> 00:01:22.349
Well, in one word, I would say affordability, especially when
25
00:01:22.370 --> 00:01:25.390
you have not had a claim. Lately, cars cost more
26
00:01:25.409 --> 00:01:30.730
to repair, all the sensors, the tech, the cameras. Homes
27
00:01:30.769 --> 00:01:34.890
are costing more to rebuild and buildings, materials, and also
28
00:01:34.969 --> 00:01:41.209
skilled labor. And then hurricanes, wildfires, severe storms, that's been
29
00:01:41.250 --> 00:01:44.879
raising property rates not just in Michigan but across the nation.
30
00:01:46.099 --> 00:01:50.079
Insurance companies pay reinsurance taxes. And that affects everybody. It
31
00:01:50.099 --> 00:01:53.680
doesn't matter where you live. And then larger litigation costs
32
00:01:53.739 --> 00:01:58.819
and jury awards, especially auto-related. We've been seeing attorneys not
33
00:01:58.879 --> 00:02:01.340
settling claims as often, but taking them all the way
34
00:02:01.379 --> 00:02:03.280
to court. So that's raising it for everybody.
35
00:02:03.500 --> 00:02:08.969
Interesting. What about the most crucial overlooked insurance coverage and
36
00:02:09.060 --> 00:02:10.280
why on top of that?
37
00:02:10.810 --> 00:02:13.330
First to mind would be umbrella. You know, people tend
38
00:02:13.370 --> 00:02:15.810
to insure the things that they own, like their vehicles,
39
00:02:15.830 --> 00:02:19.539
their homes, boats. But then they overlook the protection from
40
00:02:19.580 --> 00:02:24.900
a large liability claim. An umbrella is extra liability protection
41
00:02:24.939 --> 00:02:28.030
that goes on top of those policies. It doesn't replace them.
42
00:02:28.610 --> 00:02:32.409
But you can sometimes buy a $ 1 million or $ 2
43
00:02:32.150 --> 00:02:35.389
million policy for as little as $ 200 to $ 400 a year.
44
00:02:36.550 --> 00:02:41.610
So that's great for everybody. Water and sewer backups, another endorsement.
45
00:02:42.189 --> 00:02:46.270
On a homeowner policy, water... is only covered if it's
46
00:02:46.449 --> 00:02:50.030
a broken pipe or freezing. If water just backs up
47
00:02:50.090 --> 00:02:52.090
out of a sewer drain, or we see that with
48
00:02:52.150 --> 00:02:56.719
sump pumps, especially for people with basements, that can be devastating.
49
00:02:57.479 --> 00:03:01.240
And there's no coverage for your dwelling, so for your drywall,
50
00:03:01.259 --> 00:03:03.960
your carpet, or your contents. So that's something that people
51
00:03:03.979 --> 00:03:08.360
should always look at and think about. Another one, uninsured
52
00:03:08.400 --> 00:03:11.860
and underinsured motorist protection on your auto is We always
53
00:03:11.879 --> 00:03:13.960
try to at least match that to what you have
54
00:03:14.020 --> 00:03:18.039
on your own policy. We buy liability insurance if we
55
00:03:18.080 --> 00:03:20.659
injure somebody else, but sometimes we forget to buy that
56
00:03:20.680 --> 00:03:23.939
for ourselves. What that can do is if you or
57
00:03:23.979 --> 00:03:27.819
your family are injured in an auto accident and the
58
00:03:27.860 --> 00:03:30.680
driver is either a hit and run, doesn't have insurance,
59
00:03:30.879 --> 00:03:34.849
or has lower protection, and you're able to get a judgment,
60
00:03:35.430 --> 00:03:39.090
you can collect that from your own policy. So that's
61
00:03:39.129 --> 00:03:42.930
something to think about as well. Another one that I see,
62
00:03:43.430 --> 00:03:47.870
renter's insurance, so inexpensive. And that's not just for your contents,
63
00:03:48.349 --> 00:03:51.280
but more importantly, the liability that follows you that comes
64
00:03:51.349 --> 00:03:54.719
with that. Where I've seen a problem is when a
65
00:03:55.800 --> 00:03:59.439
tenant accidentally starts a fire, the landlord's policy is going
66
00:03:59.460 --> 00:04:02.979
to respond to the landlord, but then that gives the
67
00:04:03.020 --> 00:04:07.849
landlord's policy a insurance carrier the right to subrogate. Insurance
68
00:04:07.889 --> 00:04:11.669
companies don't sue. They subrogate against you or your insurance company.
69
00:04:11.710 --> 00:04:14.069
So if you don't have protection for that, you're going
70
00:04:14.090 --> 00:04:14.770
to be on the hook.
71
00:04:14.930 --> 00:04:17.529
We had to get that from my mother moving to
72
00:04:17.589 --> 00:04:21.920
an independent center after she left her home. Let me
73
00:04:22.040 --> 00:04:26.060
ask finally about AI. It's everywhere these days, Tom, but
74
00:04:26.100 --> 00:04:29.680
how is it changing insurance maybe for the average person?
75
00:04:30.060 --> 00:04:34.000
Well, AI is already changing insurance in ways customers may
76
00:04:34.060 --> 00:04:37.819
not even realize our carriers and insurance carriers across the
77
00:04:37.860 --> 00:04:42.360
nation are using it to help with underwriting, pricing, customer service,
78
00:04:42.540 --> 00:04:47.720
and then fraud. For example, AI can also analyze damage
79
00:04:47.740 --> 00:04:51.660
from photos or estimate repairs for a claim. You know,
80
00:04:51.740 --> 00:04:54.100
for the customer, one of the biggest benefits is going
81
00:04:54.120 --> 00:04:56.500
to be it speeds up the process and makes it
82
00:04:56.540 --> 00:05:00.079
more efficient. but it's going to be changing. We don't
83
00:05:00.100 --> 00:05:02.029
even know the ways it's going to change going forward.
84
00:05:02.050 --> 00:05:07.610
That is Tom Klaus, insurance advisor at Lake Michigan Credit Union.
85
00:05:08.269 --> 00:05:09.899
Great stuff. Thanks for your time today.
86
00:05:10.519 --> 00:05:11.420
You bet. Thanks for having me.
1
00:00:00.540 --> 00:00:04.110
This is West Michigan's Morning News. Good morning. It's Steve Kelly, Wednesday,
2
00:00:04.139 --> 00:00:09.810
October 7th. So here's what Google says about insurance. Insurance
3
00:00:09.910 --> 00:00:13.250
is a legal contract where you pay a small regular fee,
4
00:00:13.449 --> 00:00:17.370
a premium, to a company in exchange for financial protection
5
00:00:17.469 --> 00:00:21.390
against unexpected losses or accidents. I think we've all pretty
6
00:00:21.429 --> 00:00:24.050
much got that figured out, but what about in today's climate?
7
00:00:25.469 --> 00:00:29.320
insurance advisor at Lake Michigan Credit Union also known as
8
00:00:29.539 --> 00:00:32.079
Lake Michigan Insurance Agency Tom Klaus on the live line
9
00:00:32.119 --> 00:00:34.539
with us this morning Tom thanks for doing this today.
10
00:00:35.060 --> 00:00:36.340
Hi Steve thanks for having me.
11
00:00:36.740 --> 00:00:39.640
So what's the biggest mistake people are making when they
12
00:00:39.679 --> 00:00:42.039
buy insurance right now I would.
13
00:00:41.939 --> 00:00:45.119
Say the number one is shopping for price instead of
14
00:00:45.159 --> 00:00:49.090
just protection and value you know you don't want to
15
00:00:49.100 --> 00:00:52.630
put your insurance on autopilot without at least a professional
16
00:00:52.689 --> 00:00:58.049
reviewing that occasionally And finally, waiting until there's a claim
17
00:00:58.170 --> 00:01:00.890
to understand your policy. It's the worst time to find
18
00:01:00.929 --> 00:01:03.670
out that you're unprotected, but we find that happens all
19
00:01:03.710 --> 00:01:06.709
the time. People have a misconception of what their policy is.
20
00:01:07.409 --> 00:01:10.409
It's better to take a little time before that happens
21
00:01:10.489 --> 00:01:12.609
to find out what you actually have. Oh, boy.
22
00:01:13.109 --> 00:01:17.159
What's the biggest insurance issue your customers are talking about
23
00:01:17.310 --> 00:01:17.750
right now?
24
00:01:18.420 --> 00:01:22.349
Well, in one word, I would say affordability, especially when
25
00:01:22.370 --> 00:01:25.390
you have not had a claim. Lately, cars cost more
26
00:01:25.409 --> 00:01:30.730
to repair, all the sensors, the tech, the cameras. Homes
27
00:01:30.769 --> 00:01:34.890
are costing more to rebuild and buildings, materials, and also
28
00:01:34.969 --> 00:01:41.209
skilled labor. And then hurricanes, wildfires, severe storms, that's been
29
00:01:41.250 --> 00:01:44.879
raising property rates not just in Michigan but across the nation.
30
00:01:46.099 --> 00:01:50.079
Insurance companies pay reinsurance taxes. And that affects everybody. It
31
00:01:50.099 --> 00:01:53.680
doesn't matter where you live. And then larger litigation costs
32
00:01:53.739 --> 00:01:58.819
and jury awards, especially auto-related. We've been seeing attorneys not
33
00:01:58.879 --> 00:02:01.340
settling claims as often, but taking them all the way
34
00:02:01.379 --> 00:02:03.280
to court. So that's raising it for everybody.
35
00:02:03.500 --> 00:02:08.969
Interesting. What about the most crucial overlooked insurance coverage and
36
00:02:09.060 --> 00:02:10.280
why on top of that?
37
00:02:10.810 --> 00:02:13.330
First to mind would be umbrella. You know, people tend
38
00:02:13.370 --> 00:02:15.810
to insure the things that they own, like their vehicles,
39
00:02:15.830 --> 00:02:19.539
their homes, boats. But then they overlook the protection from
40
00:02:19.580 --> 00:02:24.900
a large liability claim. An umbrella is extra liability protection
41
00:02:24.939 --> 00:02:28.030
that goes on top of those policies. It doesn't replace them.
42
00:02:28.610 --> 00:02:32.409
But you can sometimes buy a $ 1 million or $ 2
43
00:02:32.150 --> 00:02:35.389
million policy for as little as $ 200 to $ 400 a year.
44
00:02:36.550 --> 00:02:41.610
So that's great for everybody. Water and sewer backups, another endorsement.
45
00:02:42.189 --> 00:02:46.270
On a homeowner policy, water... is only covered if it's
46
00:02:46.449 --> 00:02:50.030
a broken pipe or freezing. If water just backs up
47
00:02:50.090 --> 00:02:52.090
out of a sewer drain, or we see that with
48
00:02:52.150 --> 00:02:56.719
sump pumps, especially for people with basements, that can be devastating.
49
00:02:57.479 --> 00:03:01.240
And there's no coverage for your dwelling, so for your drywall,
50
00:03:01.259 --> 00:03:03.960
your carpet, or your contents. So that's something that people
51
00:03:03.979 --> 00:03:08.360
should always look at and think about. Another one, uninsured
52
00:03:08.400 --> 00:03:11.860
and underinsured motorist protection on your auto is We always
53
00:03:11.879 --> 00:03:13.960
try to at least match that to what you have
54
00:03:14.020 --> 00:03:18.039
on your own policy. We buy liability insurance if we
55
00:03:18.080 --> 00:03:20.659
injure somebody else, but sometimes we forget to buy that
56
00:03:20.680 --> 00:03:23.939
for ourselves. What that can do is if you or
57
00:03:23.979 --> 00:03:27.819
your family are injured in an auto accident and the
58
00:03:27.860 --> 00:03:30.680
driver is either a hit and run, doesn't have insurance,
59
00:03:30.879 --> 00:03:34.849
or has lower protection, and you're able to get a judgment,
60
00:03:35.430 --> 00:03:39.090
you can collect that from your own policy. So that's
61
00:03:39.129 --> 00:03:42.930
something to think about as well. Another one that I see,
62
00:03:43.430 --> 00:03:47.870
renter's insurance, so inexpensive. And that's not just for your contents,
63
00:03:48.349 --> 00:03:51.280
but more importantly, the liability that follows you that comes
64
00:03:51.349 --> 00:03:54.719
with that. Where I've seen a problem is when a
65
00:03:55.800 --> 00:03:59.439
tenant accidentally starts a fire, the landlord's policy is going
66
00:03:59.460 --> 00:04:02.979
to respond to the landlord, but then that gives the
67
00:04:03.020 --> 00:04:07.849
landlord's policy a insurance carrier the right to subrogate. Insurance
68
00:04:07.889 --> 00:04:11.669
companies don't sue. They subrogate against you or your insurance company.
69
00:04:11.710 --> 00:04:14.069
So if you don't have protection for that, you're going
70
00:04:14.090 --> 00:04:14.770
to be on the hook.
71
00:04:14.930 --> 00:04:17.529
We had to get that from my mother moving to
72
00:04:17.589 --> 00:04:21.920
an independent center after she left her home. Let me
73
00:04:22.040 --> 00:04:26.060
ask finally about AI. It's everywhere these days, Tom, but
74
00:04:26.100 --> 00:04:29.680
how is it changing insurance maybe for the average person?
75
00:04:30.060 --> 00:04:34.000
Well, AI is already changing insurance in ways customers may
76
00:04:34.060 --> 00:04:37.819
not even realize our carriers and insurance carriers across the
77
00:04:37.860 --> 00:04:42.360
nation are using it to help with underwriting, pricing, customer service,
78
00:04:42.540 --> 00:04:47.720
and then fraud. For example, AI can also analyze damage
79
00:04:47.740 --> 00:04:51.660
from photos or estimate repairs for a claim. You know,
80
00:04:51.740 --> 00:04:54.100
for the customer, one of the biggest benefits is going
81
00:04:54.120 --> 00:04:56.500
to be it speeds up the process and makes it
82
00:04:56.540 --> 00:05:00.079
more efficient. but it's going to be changing. We don't
83
00:05:00.100 --> 00:05:02.029
even know the ways it's going to change going forward.
84
00:05:02.050 --> 00:05:07.610
That is Tom Klaus, insurance advisor at Lake Michigan Credit Union.
85
00:05:08.269 --> 00:05:09.899
Great stuff. Thanks for your time today.
86
00:05:10.519 --> 00:05:11.420
You bet. Thanks for having me.
