Why You Should Always Be Upfront with Your Broker

Ever heard the phrase, “honesty is the best policy?” It applies to most aspects of life, but it’s also something that should be taken seriously when dealing with your insurance broker.

If you work with an insurance broker, you’re probably already aware of the advantages. Insurance brokers help you shop around in a market they know the ins and outs of like the backs of their hands, can help you obtain quotes from carriers not available on the general market, and can give you advice based on the information they gather from cultivating a personal relationship with you. The best part? They can save you hundreds on your insurance policies – whether home, car, commercial, or otherwise – by helping you find the most affordable rates with the best protection.

Insurance brokers work for you. They have your best interests at heart. When you’re dealing out information about whatever you’re looking to have insured, it’s better to be honest. Here’s why.

Lying isn’t saving you any money.

If you have recently made any renovations to your home, changed your address, or otherwise “altered” your circumstances somehow enough that you believe your insurance rates might be impacted negatively, it can be tempting to omit information to your insurance broker and avoid the rate increase altogether. After all, why go through all that effort only to have your rates increase?

Because if something goes wrong, your assets will be exposed. That recently renovated kitchen that you didn’t close to your broker because you didn’t want the new replacement value of your home to be reflected in your premiums? If a fire burns down your home, you won’t be getting the money back from the renovations you made. Lies that are uncovered in emergencies, where a lot of damage needs to be paid for – whether medical, liability, or property – means that compensation won’t come from your insurance company. You’ll have to cover the damage that was done out-of-pocket.

All that money could be saved simply by being true to your insurance broker and updating them on any new modifications to your home. The same goes for when you apply for a policy. If you omit information like the year that your home’s major systems – electrical, plumbing, etc. – were updated, you could find yourself dealing with the repercussions of an unforeseen issue later down the line.

Because you might get rejected.

No one likes being lied to. Insurance companies won’t appreciate it, either. Best case scenario when being found out? A claim gets denied. However, some insurance companies won’t just deny your claims – they could cancel your coverage entirely and reject any attempt to have the policy made viable again.

Although this might sound like a small blip, having your insurance cancelled can act as a black mark on your insurance history and make it more difficult for you to get insured again in the future. If a prospect insurer discovers that you have been cancelled for dishonesty, they may be hesitant to accept you. Many insurance companies will even offer discounts for policyholders that have had a continuous insurance history, even with other companies. When you have your coverage terminated for such a reason as dishonesty, it’s a bad look on you.

The bottom line

It’s tempting – we get it. Lying on your application or failing to keep your insurance provider in the loop about any modifications you make can seem like the better choice to keep your rates as low as possible. Your broker will do their best to help you keep your coverage affordable, so it pays to let them know about all the details of your home, car, or business, and any modifications or changes you make thereafter. Some renovations and updates may even qualify you for an insurance discount. It’s better to be safe than sorry in the end, and definitely far better to pay a little extra for the coverage you need than to experience a weather calamity and have to rebuild from scratch.