An Author Wednesday Interview with Jack Hungelmann, author of Insurance for Dummies

Insurance for Dummies is the perfect book for “grown-ups” who want to take responsibility for having a balanced insurance program with all major risk areas well covered. “Grown-ups” who don’t want to be a victim of insurance policy exclusions and limitations. Readers discover what they need to know about every type of personal insurance policy in the marketplace. What coverages to buy. What coverages to avoid. And how to buy insurance smartly. If you heed the advice in the book, you will end up with a much better designed insurance program at an affordable cost.

Q. Thanks for the interview. Can we begin by having you tell us a little bit about yourself and how long you’ve been working in and writing about this topic?
A. My name is Jack Hungelmann. For more than 35 years, I’ve been working as an insurance agent with hundreds of people, helping them choose the right coverages and plug the gaps in their insurance program. The past 15 years, I have also worked as a personal risk manager, helping people identify and manage the personal risks in their lives. I’ve been personally writing a client newsletter for the past 25 years.

Q. What’s your new book about? Why did you write it? What main message will readers take away from it?
A. If readers use the book to buy a particular policy, they will come away with an understanding of what coverages are really important and which ones can be minimized or avoided. They will also be aware of the traps and pitfalls of that policy and how to avoid them. If readers use the book to create a solid well-balanced insurance program for every type of personal insurance policy they have or should have, this book will help them accomplish that. Most importantly, readers will learn how to shop insurance properly by choosing an agent expert first. [Hint: expert agents cost exactly the same as non-experts!]

Q. What inspired you to write this book?
A. I have personally audited scores of insurance programs over the years. With virtually every audit one, I find 20 or more significant pitfalls where coverage is missing, coverage is inadequate, or coverage is inconsistent. Case in point liability limits. Even though lawsuits are one of the five major risk areas that most people face, they might be carrying $100,000 coverage on the boat policy, $300,000 coverage on their home policy, and $50,000 per person coverage on the automobile policy. Not only are these limits grossly inadequate today but one should always have the same pool of money available for lawsuits of any type. I was motivated to write the book to arm consumers with information they needed to know to create a balanced well-designed customized insurance plan for themselves.

Q. What were some of the greatest discoveries, lessons, or findings you came across while doing research and writing this book?
A. I learned how difficult the publishing process was, especially for first-time authors. I learned how valuable an agent can be. (Thank you, Jeanne K. Hansen for all you did to get this book published!) I was surprised and delighted by e-mails I received from agents around the country praising the book and letting me know they were using it in their office as a personal insurance reference for themselves and their staff.

Q. What do you feel sets your book apart from others in the same genre?
A. That’s an easy question! Before we submitted the book to publishers, my agent had me look at every insurance book in print and identify how mine was different. Here’s what I discovered. First, it’s the only insurance book out there that covers every type of personal insurance policy. Automobile, home, umbrella, life, health, disability. Even Medicare and long-term care. Second, it’s the only book written by an insurance agent who has actually worked in the trenches with consumers for years. As a result, the book is full of stories and anecdotes from my files. Other books were written by college professors, former insurance commissioners, consumer advocates, etc..

Q. What are 5 things everyone should know in your area of expertise?

1- Don’t risk more than you can afford to lose– ever.

2- Never shop on price alone. Or you’ll end up with a lower price fot the wrong coverage.

3- When shopping insurance, shop for the agent first. Find one with the most expertise to design the coverage specifications for the policies you need. THen let the agent do the shopping for you.

4- Insurance agents with lots of expertise cost exactly the same as a non-expert. They all get paid the same percentage commission (Typically 10% to 15%)

5- Remember your total cost of insurance includes not only waht you pay on the front end in premiums, but also what you have to pay on the backend at claim time. for uninsured losses.  The latter cost can be huge. Working with an expert agent helps to keep your costs down on both ends.

Q. If someone were a complete newbie when it comes to the topic of your book, what are some steps they could take to dive in and get more educated in this area. (Besides reading your book of course!)
A. Just one step – have someone else read my book to you! (What an oxymoron! An insurance agent with a sense of humor!) One of my favorite quotes about the book was “Jack Hungelmann actually makes insurance interesting!”

Q. If you could write 1 Golden Rule to take away from your book, what would it be and why?
A. Insurance is not a commodity so don’t ever buy it on price alone. [Or the cheap insurance policy you bought might do unto you what you would not want done unto others!]

Q. What other resources in addition to your book would you recommend to people to learn more about this area?
A. When looking for an expert agent, look for designations that convey expertise, like CPCU (Chartered Property Casualty Underwriter) or CIC (Certified Insurance Counselor). Designations not only convey expertise but also are indicative of someone who has spent hundreds of hours of additional training. (Compared to the 40 hours required typically to get an agent license!) Ideally, find someone who has expertise in every type of personal policy they can act as your risk manager to help oversee your entire insurance program.

Q. What are some of your current projects you’ve been working on in this field?
A. Insurance for Dummies was originally published in 2001. The current second edition was published in June of 2009. In addition to that, I’ve been writing quarterly website articles on insurance and personal risk management for the International Risk Management Institute. (Go to www.IRMI.com and enter Jack Hungelmann in the search engine.)

Q. Thank you for the interview , Jack! Where we can find you on the web and how we can buy your book?
A. Insurance for Dummies 2nd edition is available at most bookstores and online at www.Amazon.com . For more information on me and my services, go to www.jackhungelmann.com . The last four or five years of my newsletters are archived there. There is even a place where you can sign up to receive electronic versions of upcoming newsletters. The website also has my contact information, e-mail address etc.

About the Author: Jack Hungelmann’s policy knowledge, problem-solving expertise, and coverage analysis skills were gained through more than 2000 hours of education and 35 years  in the insurance business as a claims adjuster, agent, personal risk manager and consultant.  He has advised individuals and commercial enterprises on their insurance needs and has earned several distinguished designations.  Among these are the Certified Insurance Counselor (CIC), the Chartered Property Casualty Underwriter (CPCU), and the Associate in Reinsurance (ARe).  You can find out more about Jack’s services, sign up to receive future electronic versions of his client newsletter, or contact him with any type of insurance problem at his website www.jackhungelmann.com

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Want to be a featured author or expert? Send me an email at liz@dalesiegel.com and let us know about you and your book, and we will contact you with the guidelines. If you want your interview to coincide with the day your new book drops, let us know in advance. Be aware, we book months in advance, so get on the schedule early.