Choosing the right insurance policy for one's particular needs, age and lifestyle can be daunting. Here, Parks Pennington, president of Tigrett & Pennington Insurance in Brentwood, helps others understand the many facets of the insurance industry.
How should people go about determining the best coverage for their needs?
Speak with a good insurance agent. Homes are now more expensive to build, cars cost more to fix, and there is much more of a legal atmosphere. Therefore, buying adequate limits of liability is important and everyone should consider a personal liability umbrella policy. Also, with respect to homeowners, each person should be taking a close look at the replacement value on their policy and also their contents coverage.
What are some common mistakes people make when selecting insurance?
People sometimes look to cut costs by sacrificing coverage, which I would never advise. Having low limits of liability on auto coverage does not get you very far in today’s world if you are involved in an accident, particularly if you cause bodily injury. Another mistake is not having adequate replacement cost on your dwelling or having actual cash value settlement on your contents or roof. Basically, if you have actual cash value settlement, the insurance company is going to depreciate every item in your home or your roof and you’ll be left paying the difference.
Why is it so important to have an expert assist with choosing the right insurance for one's self and family?
Insurance is here to protect you and your assets and make you whole in the event of a loss. Having a professional who understands your particular needs can be the difference when you have a claim. I also recommend using an independent insurance agent, who normally represents many different companies and cannot only shop your coverage with various companies but also have many more options than those dedicated to only one company.
What are some misconceptions about insurance and the insurance industry?
I think a major misconception about insurance is people think the insurance companies collect all the premiums and never pay claims. I bet the average person does not know that most insurance companies, overall, payout claim expenses at or sometimes above the amount of premium they collect.
What attracted you to the insurance business? What do you like about it?
My father has been in the insurance industry for almost 40 years. I enjoy being able to help people by advising them on the correct coverages and fixing issues with their current insurance policies. I enjoy knowing that we provide a promise to our customers that when they have a major event, and potentially lose everything they have built, we are there to make them whole again.
Tell us more about you.
I live in Brentwood with my wife Lauren. We don’t have children yet, but we have two dogs (Lily and Lenna). Lily is a 10-year-old Aussie mix and Lenna is a 5-year-old Cavapoo. My wife and I enjoy taking vacations, spending time with our family and friends, and entertaining at our home. I personally enjoy golfing any chance I get and watching the Tennessee Vols.