Why Do Insurance Companies Need So Much Information & Ask So Many Questions?

Insurance companies are at risk when they insure you.  Therefore, they have to be very thorough in the information they capture in order to make the right decisions and to take on the risk.  Questions such as who will be driving the car, where  the vehicle will be garaged, what is the Vin# of the vehicle, how many people are in the household, and is there a fireplace in your home are just a few examples of what insurance companies need to know.  Many times people can’t understand why the question is asked….is there a trampoline on the property or a swimming pool?  Think about it, these are liabilities.  What if a child ran away from his parents and wondered onto a property with a swimming pool, fell in, and drowned, what position does this put the insurance company in?  And a trampoline just invites trouble, somebody comes over, gets on the trampoline, starts jumping, gets caught and really hurts himself, what kind of position does this put the insurance company in…..and what if the insurance company doesn’t even know there is a trampoline or a swimming pool on the premises…then there really is a problem. 

Insurance companies have to have the information and COMPLETE information.  Without it, they have a false statement of what the risk really is.   They also have an application that is misrepresented, in this case, they can reject a claim.  Make sure you give your insurance agent complete details on your request, and don’t be afraid to ask questions.  That is why you have an insurance agent.