How Much Insurance Do Your Clients Really Need?

In the case of disaster or emergency, insurance can serve as a financial cushion against loss. But as premiums continue to rise, an important question begins to take shape: How much coverage is enough?

When it comes to property insurance, Partner F. Michael Zovistoski said the insurance should cover the true value of what is being protected. "We typically ask our clients to periodically evaluate their insurable property and consider obtaining appraisals," he said. "Our recommendation is always to insure the property for replacement value or appraised value."

Even then, some client don't feel it's enough, and "it becomes a security blanket," Zovistoski said. At that point, he said recommendations to cut back can leave clients feeling "separation anxiety."

Read the full article published by Financial Advisor Magazine.