While most of the biggest companies operating in the financial services sector started out as specialists in a certain segment of the financial services market, the momentum they gather often affords them the unique opportunity to branch out into many different services within the financial services sector. That’s why you can have what is even a multinational financial services provider offering everything to do with financial services, from banking to all your insurance needs.
That’s precisely where the phrase “umbrella insurance” came from, where you essentially get insurance coverage from one financial service provider, be it your household goods insurance, business insurance, auto insurance and even life insurance. Look, there’s nothing wrong with using multiple services from the same service provider because that usually happens on the back of a relationship of trust built up between the service provider and client, but there’s perhaps a much stronger argument for rather choosing to go with a specialised service provider for certain financial services.
If you insist on the so-called umbrella or cluster financial products, it’ll have to be for the sole reason that your insurer views your affairs as one bundled account and so one part of what you pay for helps cover everything else, to a certain extent. It’s still a bit of a risk I’d say because if you look at specialist services provided by single-discipline specialists in any industry, not just in the financial industry, what you’ll notice is that nine out of ten times that is indeed the best service available when compared to so-called umbrella services.
An insurance company which offers coverage across the board is focused on balancing out the scales, so to say, whereas if you sought your tailored insurance for something like your boiler from a specialist provider like COGI HomePlan, for instance, it’s all about that specific area in which you need coverage and nothing else.
So I guess the keyword is specialisation…
Beyond going with a specialist service provider, it’s important to ensure the arrangement is tailored to your specific needs as well, taking into account all the dynamics which could include considerations such as what the maximum amount of coverage you can get is on the budget you have to work with. There are times when the temptation to go with the cheapest option available proves a bit too irresistible, but that’s a major risk of which the actual consequences can only truly be gauged when something happens, like a burst or faulty boiler emergency. You do not want to find yourself in limbo as such situations make for the worst possible time during which to find out that you do not have adequate coverage.
Think about it a bit, particularly with regards to something like your boiler, which is a very important part of your everyday life you probably take for granted. The truth is even though they just don’t make anything like they used to in the past, boiler emergencies have always been a common occurrence — an occurrence which many people just aren’t prepared enough for.