Commentary: Your insurance and the recession

By Bart DeLio

It happens to me all of the time. My clients are having financial issues. Maybe they lost their job, maybe they are getting a work “furlough” once a week or once a month, or maybe their credit cards are getting out of hand. “I need to cancel my insurance,” Mr. Client will say to me. “Let’s talk,” I say.
Talking to your agent is the best thing you can do when a situation like this comes up— taking a few moments to see how you can cut corners without cutting out the protection you have for your property. You’ve worked hard for what you have, and leaving yourself exposed at a time when you can least afford to absorb an insurance loss is a risky proposition.
So what are your options? Well, in addition to calling to see if the plan you have now is right for you, taking a look at the deductibles is a good start. If you’ve had your insurance plan for many years, you may have a low deductible. By raising the deductible you can still maintain the bulk of your insurance protection and, if you need to scrap up the money for the deductible, it will be much easier than having to take on the burden of repairing or replacing your car or home.
In times of stress, you may be more inclined to have an insurance claim, so find out what you can do to take off some of the financial burden without leaving yourself out in the cold. While you’re at it, be sure to review your life insurance as well.

Bart J. DeLio is an independent agent with the Farmers Insurance group of companies. Find out more about him at