Entries Tagged 'Personal Insurance' ↓

A photographic inventory is helpful in the event of an insurance claim, but it’s important to get it right.
 
A photographic inventory does more than simply jog the memory and prove you actually owned the product. It also provides important information about condition and value and even helps in establishing replacement value in the event an updated appraisal is required.
 
Learn how to show it rather than blow it, with the following quick tips:
 
1. Plan Ahead: Keeping good records is critical to a good inventory, and the more the merrier. If possible, obtain a copy of the blueprints to your home along with receipts for major appliances, improvements and other additions. Permits, bid sheets and photographs all assist in documenting the condition of the home or belongings at the time of the claim. Be sure to include general photographs of the home as well as close-up pictures of personal belongings, including jewelry, electronics and other valuables.
 
2. Light Up Your Life: Photographs are a great idea, but only if the quality of the pictures is adequate. Take photographs during daylight or invest in a good flash to ensure that enough detail is visible. It’s also a good idea to take several photos from various angles.
 
3. Share and Save: Make copies of the photographs and store them in a safe location. Safe-deposit boxes and online storage are popular options. Send a copy to your insurance agent for safekeeping, but be sure to revise and update annually in order to ensure the latest acquisitions are included.

Prevention really is the best policy when it comes to reducing the risk and cost of household-related insurance claims. Fortunately, thanks to new technology and the help of a few tried-and-true old-timer tricks, it’s easier than ever to prevent a small problem from growing into a major catastrophe. Following is a checklist to get you started:
 
1. Security and Surveillance: Security comes in all shapes and sizes, including dead bolts, entry alarms, complete electronic household security systems, and even motion-activated lighting and recording devices that can be remotely controlled. Perform a quick review of the house and surrounding yard to ensure secure access at every entry point.
 
2. Alarms and Alerts: Fire alarms are fairly standard in most homes, but far fewer people have taken the time to install other valuable alarms or alert systems that can save property and even lives. Carbon dioxide and natural gas detectors, radon detectors, water/moisture leak detectors, and even thermal leak detectors provide early notification of common household problems.
 
3. Prepare and Practice: Flashlights, battery backups, automatic shutoff valves and other basic emergency equipment contribute little if members of the household don’t know how to use them. Have a process in place and practice age-appropriate responses for commonly encountered situations. Not only does having a procedure in place help ensure an orderly response during times of trouble, but it reduces the possibility of accidental injury and further property damage.
 
4. Quick Fixes: The final step in reducing the risk of household claims is to ensure the safety and security of visitors and household members by doing a quarterly evaluation of property maintenance and quick fixes. Remove clutter and provide nonslip surfaces for steps and walkways, evaluate plumbing and electrical systems to ensure proper performance, and take care of any areas of the home that show signs of excessive wear or deterioration. Not only will proper maintenance reduce the risk of many common claims, but it keeps your home looking its best throughout the year.

Perhaps one of the most frequently misunderstood aspects of auto insurance is the difference between actual value and a total loss.

A total loss is when the cost to return the vehicle to pre-accident condition would be as much – or more – than the value of the automobile. It’s important to learn how total loss is determined, in order to make sure you obtain the proper protection when purchasing your next auto policy.

It’s also important before purchasing a policy to understand actual cash value (ACV) as it’s related to a total loss. Otherwise, you might find yourself underinsured in the event of a major claim.

Many auto owners mistakenly believe the insurance will pay off the existing loan or cover the entire cost of purchasing a new car, but that is rarely the case. Instead, insurance underwriters estimate the value based upon the Kelley Blue Book, Edmunds or National Automobile Dealers Association guides, then modify the quote to reflect the mileage, condition and other options for the vehicle. In most instances, this is significantly less than the cost to purchase a new vehicle or even pay off an existing loan.

Most new vehicles lose a significant amount of value as soon as they are driven off the lot. The trade-in value would be substantially less, even if you only owned the vehicle for a short period of time. Likewise, the actual cash value of a vehicle is often much less than the amount owed or even the cost to purchase a similar car.

Now that market values of many homes throughout the nation have dropped, it’s more important than ever to obtain reliable replacement valuations when purchasing insurance.

The following tips can help you estimate replacement costs and obtain the right level of protection for your family and financial future:

1. Don’t Confuse Market Valuation and Appraised Valuation With Replacement Cost

Undoubtedly this has led to a great deal of confusion, especially in markets that have experienced significant numbers of short sales and foreclosures.

Market values in many areas have dropped below the cost required to rebuild the home.

While it might sound like a quick way to save some money, dropping replacement coverage is often costly in the long run. Remember, replacement coverage provides the protection required in the event you must rebuild or replace the home rather than the actual depreciated value of the property or item in question.

2. Overages

Most policies stipulate you must have at least 80% or greater coverage in order for the replacement value to go into effect, but during rapidly changing conditions, inflation or tight labor markets it’s not unusual for repairs to become more costly than originally anticipated.

It’s possible to purchase an additional rider that provides enhanced protection against any overages.  Used in combination with replacement coverage, it helps ensure that you have the protection needed in the event of a claim.

3. Zoning and Ordinances

Replacement value alone may not be sufficient, especially if you live in an older home or an area that has implemented new zoning or ordinance changes.

Standard replacement value covers the original item but may not include zoning, ordinance or other regulatory changes required to rebuild.

Call my offfice about a zoning and ordinance policy to make sure you are completely covered.

Many Americans have medical issues that insurance companies define as pre-existing conditions.

A pre-existing condition is a health problem that existed before the individual applied for a health insurance policy.

These health issues are taken into consideration by the insurance company regardless of whether the applicant sought treatment.

Minor conditions such as high blood pressure or high cholesterol have generally been handled in one of two ways.

The applicant may be accepted on the basis that a higher premium is paid in order to cover the minor condition.

Or the insurance company may accept an applicant by placing a rider on the policy that excludes coverage for the specific condition, usually for a set period of time.

Most major health conditions such as heart disease, cancer and diabetes have been cause for the decline in of health insurance policy applications.

For those with pre-existing conditions, however, President Barack Obama’s health care reform may offer some peace of mind. Insurance companies will be barred from denying coverage to children with pre-existing conditions.

At the same time, adults with medical conditions will be able to buy coverage through a temporary, subsidized high-risk insurance pool.

And starting in 2014, insurance companies will not be allowed to deny coverage to anyone with pre-existing conditions.

For those without health insurance, this could signal hope of soon being insured.

For the time being, those without pre-existing conditions should consider obtaining a policy or, if currently covered, keep their health insurance in force.

One of the best ways to safeguard against pre-existing condition issues is to have coverage already in place.

Having continuous coverage is a sure way to stay out of a potential health insurance crisis.

Contact my office if you would like a timeline of the new healthcare law. Beware, not all provisions of the law come into play immediately.

Many people are unaware their credit history may strongly influence the cost of homeowners and auto insurance. A poor credit score can result not only in higher insurance premiums but also in a denial of coverage altogether.
As credit lending standards continue to tighten, experts agree that it is more important than ever to keep a close eye on your credit score in order to avoid insurance rate increases or non-renewal of policies.
Why It Counts
The most commonly cited reason behind charging higher insurance premiums to those with lower credit scores is the belief that people who do not properly manage their finances are at greater risk of submitting a claim.
Useful Tips
Visit www.annualcreditreport.com to order your free annual credit report. Review the information for accuracy and immediately dispute any errors in writing. Not only will it help save money on the cost of obtaining a new loan, but it might help keep your  insurance rates low.
Keep an eye on credit limits, late payments and other common credit problems. Lenders throughout the nation are reducing credit lines, increasing minimum payments and requiring higher credit scores. Smart consumers should make a point of keeping an eye on available credit and avoiding late payments, over the credit limits or other common problems.

Summer is a time for fun with the family. 

It’s also a time to get the recreational vehicle (RV) out of the driveway and onto the open highway.
 
Whether you’re heading out on a multistate tour in a full-size RV or on a weekend retreat with a tiny pop-up camper, learn how to stay safe and have fun at the same time by following some simple tips on properly insuring a recreational vehicle.
 
1. Keep It Clean, in Good Repair and Legal: RVs require a tag and title before they can be taken on the road. Routine maintenance not only helps reduce operating costs, but also ensures a safe and worry-free trip. Remember, lack of maintenance can lead to dangerous situations, ranging from blown tires to side-of-the-road breakdowns.
 
2. Check Your Current Insurance: Before setting out on a road trip, be sure to verify the limits of your existing automobile policy, especially if you intend to tow a smaller RV with your regular automobile or rent an RV. Don’t assume the RV is covered under a traditional plan. It’s also a good idea to double-check liability limits, coverage for personal belongings and geographic limitations before heading out on the highway.

3. Ask About Options: RV owners often find optional insurance riders more affordable when purchased through their primary plan. Ask about total loss replacement, roadside assistance, emergency expense coverage, vacation liability, attached accessories and other options. It’s a small price to pay for the peace of mind in knowing you are protected in the event of an accident or emergency, especially when far from home.
 
4. Consult With a Specialist for Full-Time RV Living: Full-timer coverage, hail, flood, fire, theft and other issues for those who consider their RV a home away from home are especially important. Be sure to speak with my office to select the best options for your individual situation while taking into account other means of transportation, total investment in the RV and lifestyle choices.

If you are in between jobs, one of the most important decisions you can make is how to obtain short-term insurance.
Many people make the mistake of thinking they can skip health insurance for a few months until landing another position. Unfortunately, it often makes a bad situation worse. Accidents, illness and other emergencies tend to crop up when you least expect them.  Fortunately, short-term health insurance options are available if you know where to look.
Compare Individual Coverage with COBRA: If you had health insurance through your employer, chances are you qualify for COBRA coverage. However, many people are surprised to find short-term health insurance for individuals to be more cost effective than COBRA, especially if they are in relatively good health without major pre-existing conditions. Don’t delay. Put in a call to my office right away to determine the most cost-effective policy for your needs.
Select a Term: Short-term health insurance is typically sold in one-, three- and six-month increments, but there may be a limit on how many times you can renew the policy. It’s often a good idea to purchase for a longer period of time just to be on the safe side. You can always cancel the remainder of the policy if desired.
HSA: Depending upon your situation, it may also benefit you to consider a HSA, or Health Savings Account policy. Although not specifically short-term health insurance, these high-deductible policies are often quite affordable. They tend to benefit those in relatively good health who are able to afford the large out-of-pocket deductibles, as well as those with chronic health conditions who would normally experience large annual co-payments.
Additional Coverage: Don’t neglect add-on coverage just because you are in between jobs.  In fact, it might be more important than ever to make sure that you are covered against accidents or have available vision, dental and prescription drug benefits to rely upon.

Most people make it a priority to purchase adequate levels of home, auto and even life insurance, but few make the same commitment for disability coverage.

Unfortunately, research shows disability insurance is one of the most urgently needed forms of coverage available. It is vital to ensuring financial stability, though, as nearly 80% of people are likely to experience at least six months of disability during their lifetime.

Disability insurance provides financial protection in the event of an accident, illness or injury. Even those with a hefty emergency fund in place may find their accounts insufficient to meet the additional demands of child care, home health services, medication or other needs during a disability.

Long-term disability is one of the leading causes of bankruptcy and poverty in the nation, affecting not just the ill or injured person, but the entire family. Even short periods of disability can have a dramatic impact on the finances of an entire family.

Unfortunately, government-sponsored forms of disability coverage often have extensive waiting periods and other limitations that may result in a devastating financial crisis, especially if a family is dependent upon a primary wage-earner for support.

Disability insurance ensures that the household is able to meet basic obligations whether the situation lasts a few months or several years. Like most forms of insurance, though, it’s most affordable when you are still healthy.

Millions of dollars are spent each year for online insurance quote advertising. While shopping online for insurance is fast and convenient, there are a few dirty little secrets that might end up making it cost more than you realize. Find out why using an agent or broker beats shopping online for insurance.

Only advertisers: Online insurance quotes compare only the rates of companies that advertise on their website. Although it can be convenient to shop online for insurance, online insurance websites make money by selling advertising space. Insurance providers that don’t participate won’t show up in search results. Since brokers make money only when they sell policies – not when they sell advertising space – you can be sure to obtain the most competitive rates the broker has available.

No spam or solicitation: Not only do online insurance quote sites sell advertising space but many collect personal information for re-sell to other agents or companies. Carefully read the terms of use for the website prior to supplying personal information; in most instances you will discover the website requires users to “opt in” or release information in order to obtain a quote. Avoid spam and telephone solicitation by using a broker who provides an instant quote at your convenience rather than a website that makes money by selling contact information.

Personal service: Insurance is complex, so it should come as no surprise that terminology and other contractual situations can be confusing. Work with a broker who is able to inform you about available options that could impact your coverage or cost.