Assets and liabilities: Insurance needs differ throughout life

When it comes to insurance, no two people have precisely the same needs. But one thing is common to everyone.

“I can honestly say I’ve never met anybody in my entire career who was just happy to pay the bill,” Gary Chapman, an agent with Coeur d’Alene Insurance, said with a laugh. “Nobody likes it.” 

Chapman has more than 50 years of experience selling insurance. These days, he mostly handles personal and commercial property and liability insurance. 

To put it simply, insurance is a contract between an individual or entity and an insurance company that protects against financial losses from unexpected events. The insurer takes on the financial risk in exchange for a fee, while the policyholder receives financial assistance in the event of a covered loss. 

“I have assets and I have liabilities,” Chapman said. “Some of those, I want to protect, if I can afford it. That’s basically what insurance is.”

Policies exist for virtually any asset or situation. For example, there’s standard auto insurance for the cars people rely on from day to day, but classic car owners may want to consider a specialized policy that protects their unique asset.

The kind of insurance a person or entity needs can vary greatly. 

“Everybody’s different,” said Gary Louie, owner of Gary Louie Insurance Agency, based in Hayden. “People that are starting a new business don’t know what kind of insurance they need until they talk to someone. It’s the same thing for their personal needs.” 

Those needs tend to change throughout a person’s lifetime. For example, a young adult just embarking on a career is likely to have different needs and priorities than a homeowner with a family or a person approaching retirement. 

“Life insurance doesn’t usually come into play until we have commitments to family members,” Chapman said. “We want to make sure that, if we’re not here, we have some cash to support them.” 

Whatever a person rents or owns a home, Chapman said it’s wise to consider insurance for personal property and liability coverage. 

“Most people don’t make mistakes that cause them to go through a lawsuit on their homeowner’s policy, but I’ve seen it over the years,” he said. 

Insurance agents and agencies can help guide individuals and business owners as they search for the right coverage and make sure they understand their policies. 

“Insurance is a financial tool to hedge risk,” Chapman said. “I’ve met people that have had homes insured for decades and have never seen their policy. A lot of people don’t care to. That’s when a good independent agent can be of real value to them. 

When shopping for insurance, Louie said it’s important to choose an agent who is the right fit. 

“It’s like with a doctor,” he said. “You’re going to have to feel comfortable being open with them and talking about your insurance. You have to figure out what’s important to you and ask the agent or agency to see if it matches.” 

Taking into consideration the client’s needs, priorities and lifestyle, the agent can connect the client with the insurer that best suits them. 

“There’s not going to be one company that is always the cheapest or the most expensive,” he said. “The key factor is which company is going to be there if there’s a claim. Make sure whatever company you’re going with is reputable.” 

Chapman shared the same sentiment. 

“You have access to so many different companies and you have access to professional people who work on the inside, day in and day out, and know which companies fit the bill best, the unique character profile for the insurance that you want,” he said. 

    Louie