Tennessee Living

About the Author - Anthony Kimbrough

Family Security columnist Anthony Kimbrough is vice president, government relations for Tennessee Farmers Insurance Cos.

Five years ago, I found a note on my desk. Drawn on office stationary, it was a child’s unsteady sketching of a heart with red-inked words: to daddy. i love u.

More recently, the message came again to the office, but this time in high-tech fashion: hey. i now have a new e-mail. i would like some mail to go in it. please send. thanks, McKenzie.

The work of my youngest daughter, both notes are now saved in my “Daddy” file – a large manila envelope packed full of colorings, drawings, notes, letters and e-mails created over the years by my two daughters.

The most rudimentary pencil marks of an infant gave way to the imperfect drawing of a red heart and then to instant messages and e-mails from a teenager. Each is just as special as the one before, but all represent memorable markers in my children’s lives. Perusing through that folder has reminded me time and time again that life is a whirlwind of changing circumstances.

Many of these circumstances, like those involving our children, are forever etched in our memories, whether for the whole world
to see and know or just for our eyes and ears only. They are priceless because of their sentimental value, and we need do nothing with them except enjoy.

But some changing circumstances in our lives are the more practical, daily kind of stuff. They aren’t the memories we store in manila folders or, for that matter, even try to commit to memory at all. We might even call them the “business” side of life. We put these tasks and important considerations on our to-do list, check them off and then forget they ever happened. Usually, that’s good enough.

Occasionally, though, it’s not. Sometimes when our circumstances change, we need to see our accountant, banker, attorney or register of deeds. That’s often the case when
it involves a change in ownership of property, a circumstance I’ve seen often with our Farm Bureau members.

One of the basic principles of property insurance is that there must be an insurable interest. In other words, you must have a legal ownership interest in a property to insure it.

When you purchase homeowners insurance – hopefully through the help of your local Farm Bureau Insurance agent – that policy is subject to certain contractual definitions, one being that it is a residence owned by you. So what can happen if certain circumstances change?

“It’s a real issue that I’ve seen,” admits Bill Sinclair, a Farm Bureau Insurance agent for nearly two decades. “An elderly couple deeds their property to their children – they built it, owned it for 50 years and want to keep it in the family. But they don’t bother to tell us. It’s certainly not their intent, but they no longer own it and therefore their policy is null and void. They don’t have insurance on that property.”

When property is deeded to someone else or to a trust, the ownership interest has changed and the original insurance policy is of no effect. The fix, however, is simple: A new policy should be purchased, consistent with the ownership interest and occupancy of the home.

“The bottom line should be that when you add children as owners of your property, or you buy an automobile for a child or someone else, please bring your insurance agent into the loop,” Sinclair says. “Insure the property the way it’s owned, then if (or when) circumstances change, let us know.”

Although not as memorable as a child’s journey from crayons to cell phones, notifying your Farm Bureau agent when your circumstances change can protect the valuable things you’ve worked for and insured. 

Email to a Friend
Please enter the following information:

Your Name:

Your Email:

Recipient Name:

Recipient Email:

Notes:

Please enter the word you see in
the image below:

Information being sent:

Magazine:
Tennessee Home & Farm, Summer 2010 Edition Edition

Headline:
Dear Daddy

Summary:
A Child's note makes way for a business epiphany.

This article brought to you by: