Dec 17
adminInsurances Acts Of God, Adequate Cause, Auto Insurance Policy, Car Accidents, Collision Coverage, Collision Insurance, Collisions, Deductible, Deductible Amount, Deductible Amounts, Deductible Reimbursement, Homeowners Insurance, Insurance, Insurance Company, Insurance Coverage, Insurance Deductibles, Insurer, Object Collision, Reimbursement Policies, Supplemental Coverage, Vandalism, Viceversa
A deductible is the amount of that the insured must pay out of pocket before an insurer will pay any expenses. Typically, a general rule is: the higher the deductible, the lower the premium, and viceversa. Depending on the policy, the deductible may apply per covered incident, or per year. A deductible will apply to claims arising from damage to or loss of the policy holder’s property, whether this damage/loss is caused byaccidents for which the holder is responsible, vandalism/theft or “acts of God”.
For example, a person might have an auto insurance policy with a 0 deductible on collision coverage. If this person were in an accident that did 0 worth of damage to the car, then the insurance company would pay him or her 0. The insured is responsible for the first 0. Insurance deductibles can also differ depending on the cause of the claim.
As an example the typical auto insurance policy contains two deductible amounts one for comprehensive claims and one for collision claims.
Comprehensive and Collision claims
It is a notorious fact that most car accidents happen due to collisions. This is in itself an adequate cause why you should consider purchasing Collision Insurance, a type of Auto Insurance that, less the insurance deductible, covers the damages of the car resulting from a collision with another car or object. Collision coverage reimburses you, less the deductible, for the repairs or replacement costs of your car after an accident. Comprehensive Auto Insurance includes almost everything that might go wrong with your vehicle except collision. This is the reason why Comprehensive plans are sometimes called “Other than Collision” insurance coverage.
Deductible reimbursement policies
There are also policies available called deductible reimbursement policies. A deductible reimbursement or zero deductible policy works as a supplemental coverage to your primary auto, boat or homeowners insurance policy and will reimburse the insured the entire deductible amount in case of a paid claim. A deductible reimbursement or zero deductible policy is usually a good thing to have as most insurance claims are small or partial losses and the deductible limit has been put in place by the insurance companies to prevent the insured from filing these type of claims. The insurance company saves money by not having to administer and pay claims that otherwise would have been covered under the insured’s primary insurance policy. The premium for a deductible reimbursement policy is usually much less than trying to get the same coverage with primary insurer. Check with your insurance agent for details.
Jun 20
adminArticles Bad Water, Bodies Of Water, Cigarette Butt, Dry Leaves, Fire Fire, Fire Flood, Flood Damage, Front Yard, Home Appliance, Home Insurance, Homeowners Insurance, Insurance Coverage, Insurance Policies, Insurance Policy, Insurance Scam, Little Chance, Necessary Addition, Personal Belongings, Typical Events, Water Pipes
How can you tell that you really need home insurance? Well, if you’re not planning any illegal things like insurance scam (which is definitely not a good idea, especially these days), it will be really hard to predict any situation when you will actually need some insurance coverage for protecting your house. Until, of course something bad happens and you will need the money to pay for the damage. However, there’s a range of circumstances that make an insurance policy for your house a really welcome if not necessary addition to your paperwork portfolio.
The following are the most typical events that will make having home insurance a necessity unless you have a lot of money and can rebuild your home from scratch without worrying about finances.
Fire
Fire is definitely one of the most hazardous of perils that can happen to a house. It has the potential to completely destroy an entire building within minutes and there’s a very little chance that any of your personal belongings will survive it. Fire is very hard to control and it can happen any time, with most cases of fire being reported when the home owner is actually away. It can be a spark from a malfunctioning home appliance or a cigarette butt that lights up a pile of dry leaves that you’ve left in your front yard. And the moment you arrive home you find nothing but a pile of ashes instead of all of your belongings. A standard homeowners insurance policy provides protection against any forms of fire.
Flood
Living in an area with no large bodies of water nearby doesn’t mean that you don’t have the risk of having flood damage in your house. Things like heavy showers, bad water pipes and even a broken washing machine can flood your house and damage a large part of your belongings beyond repair and restore. Sometimes, the damage from flood can be much worse that that caused by fire. Standard homeowners insurance policies do not carry coverage against flood damage and you will have to purchase such a policy as a weaver to your current one or buy it separately.
Earthquake
Earthquakes are certainly the hardest to predict and hardest to protect against of all natural disasters. An earthquake can destroy an entire town or city within just a few minutes, turning even the most durable of constructions into a pile of dust. And the best thing you can do during an earthquake is to stay away from your house that can collapse over you. Standard insurance policies include coverage against earthquakes, too. However, in order to make sure you will also be paid for the lost belongings you should have an inventory of all the items (especially valuables and electronics) with detailed information on every piece that can further be used for reimbursing the cost of all the lost belongings.
There are other circumstances that can also be a threat to your house and you want to have coverage against them. Having tornado insurance in an area where they are common is definitely a must. However, keep in mind that no one is imposing you to have home insurance, It’s a decision choice that can save you a lot of money and time in case something bad happens to your house.
Apr 30
adminArticles Burglary, Construction Companies, Construction Costs, Firestorms, Homeowners Insurance, Insurance Basics, Insurance Buyers, Insurance Costs, Insurance Coverage, Insurance Policy, Insuring Your Home, Lightning Strikes, Living Expenses, Local Construction, Medical Costs, Other Perils, Peace Of Mind, Plumbing Leaks, Square Footage, Windstorms
It’s clear that insuring your home is a must if you are worried about your house and want to protect your property against different situations. Getting your home insured gives you some peace of mind and certainty that is particularly welcome in situations like fires, storms, floods, theft and other unpleasant accidents. However, most insurance buyers don’t quite know what exactly their policy covers, how much coverage they can expect and how to cut their insurance costs if they feel that the policy is too expensive for their wallet.
How much insurance coverage do I really need?
There are two main factors you have to consider when trying to answer this question:
- Replacement costs of your house. This is the amount of money you would need to restore or rebuild your house if it were damaged or destroyed. The best way to learn this is to multiply your square footage over the current local construction costs. Try asking different construction companies to determine the latter.
- Replacement costs of your property. The most effective way to learn the exact replacement costs of your belongings is to make an inventory of all the items in your house with the exact purchase value of each item. This inventory will be particularly useful when filing a claim, so try to make it as accurate and detailed as possible.
What does homeowners insurance cover?
A standard homeowners insurance policy carries coverage against damage delivered in situations like:
- Hail and windstorms
- Explosions
- Firestorms and lightning strikes
- Burglary and acts of vandalism
- Smoke and plumbing leaks
The policy will also pay for the medical costs if someone other than you or your family member is injured on your territory. And it will cover your living expenses if you have to move to another place while your house is being repaired or rebuilt.
Homeowners insurance may provide coverage against other perils such as floods or tornadoes, but you will have to buy a separate policy in order to get this type of coverage for your house.
How to economize on home insurance?
There are different methods you can use in order to cut down your costs:
- Improve your credit rating and try to keep the record as clean as possible. Those who have poor credit scores pay higher premiums for all types of insurance and homeowners insurance is no exception.
- Opt for discounts. It never hurts to ask your insurance provider about discounts, but it may turn out that they are quite easy to obtain. Most insurance companies provide incentives to those who install security features, fire and smoke alarms, or improve the safety of their houses.
- Raise your deductibles to the amount you can afford to pay upfront. Deductible is the amount of money you have to pay out of pocket before insurance coverage kicks in. The higher the amount of deductible the lower is your premiums. However, make sure you can afford to pay the specified deductible if something happens to your house.
- Shop around to get a competitive offer. Insurance rates for the same house can vary dramatically from one company to another. Try to get as any quotes from different providers as possible before purchasing the actual policy. You will be surprised to learn how different the rates may be sometimes.
Apr 17
adminArticles Burglary, Different Places, Flood Coverage, Flood Damage, Health Insurance, Health Insurance Plans, Home Insurance, Homeowners Insurance, Insurance Agent, Insurance Companies, Insurance Company, Insurance Policies, Insurance Policy, Medical Costs, Myth, Payment Coverage, Serial Numbers, Standard Insurance, Valuables, Weaver
Myth: Standard policies will pay for flood damage.
Fact: None of standard insurance policies will cover any damage resulted from a flood. In case you have the need for flood coverage you should purchase it separately or include it as a weaver to your standard policy.
Myth: The medical payment coverage included in the insurance policy will pay for my and my family’s medical costs.
Fact: This type of coverage will pay for the injuries that someone other than you or your family members (guests, neighbors, visitors, etc.) had sustained while being on your property. However, your homeowners coverage won’t take effect if it’s you or someone else from your family. In such a case standard health insurance plans are employed.
Myth: In case my house is devastated the insurance company will pay as much money as I tell them my house was worth.
Fact: If it occurs that your house gets devastated due to a various reasons (explosion, fire, tornado, etc.) the insurance company will only cover your lost items and the house itself if you provide all the necessary information such as purchase price and serial numbers of all the items that were lost. Of course, it’s impossible to provide such information from memory after the house was destroyed. That’s why your insurance agent is likely to recommend you having an inventory of all the items (especially valuable ones or equipment) stored in your house, and having a copy of it in different places. This way you make sure that you will be covered to the right extent and the insurance company assures that there is no fraud with your claim.
Myth: If my house gets robed things like jewelry will also be paid for.
Fact: It is true that such valuables like jewelry are covered with your homeowners insurance. However there are limits to the amounts the policy will cover such things, with most insurance companies putting a cap of $1500 on all the valuables that are lost due to fire or burglary. In case you think that it’s too little to cover the actual value of your jewelry or furs you should buy additional coverage for such items.
Myth: I should lower my coverage if I want to get cheap home insurance.
Fact: Saving money doesn’t necessarily imply that you have to cut down the most important aspects of insurance coverage. The whole purpose of having an insurance policy is to be adequately covered in case of damage delivered to your house. You can use other more effective methods of cutting your insurance costs such as installing security and fire alarm systems in your house, or getting your home insurance from the same provider as auto or health insurance. This will usually give you great discounts.
Myth: Can I use the purchase value of my house as the dwelling coverage amount when defining the amount of insurance coverage for my policy?
Fact: It’s the most common mistake the homeowners make when purchasing insurance for their house. The main catch is that the purchase value of your home is comprised of both the value of the house and the land it’s built on. And it’s evident that in case of a fire, storm or any other even that might destroy your house, the value of the land should not be reimbursed. That is why you should use the replacement value of your house as the dwelling coverage for the insurance policy. The easiest way to calculate the replacement value is to multiply the square footage by the construction costs in your area.
Apr 12
adminArticles Absolute Nonsense, Belongings, Damages, Fairy Tale, Family Member, Flood Damage, Home Insurance, Homeowners Insurance, Insurance, Insurance Company, Insurance Cover, Insurance Plan, Insurances, Myth, Payment Portion, Photos, Premiums, Standard Insurance, Things That Matter, Untrue Myths
People like to spear rumors they invent. This is a commonly known fact. Sometimes it gets to the point that rumors turn into myths that haunt people and get stuck in their head for ages. In order to get rid of these untrue myths one has to dig deeper into situation and try to find the truth. But we don’t think we need this. It is easier to believe what others say and what we hear around. Here in this article we will discuss the most famous and commonly- spread rumors on insurances related to homes.
They say that the standard home insurance will cover the damages your house will suffer after the flood. This is an absolute nonsense. This doesn’t have any ground underneath it because the flood damage is never covered under the standard insurance plan. When you feel the necessity to cover yourself from the flood damage, you get additional coverage.
Homeowners insurance plan with its medical payment part will pay for the injuries me and my family will suffer.
This is not true. The Medical payment portion of the insurance is meant to protect you in the case when someone other than you or any members of your family gets hurt on your property and they don’t want to take you to court. If it is you or some family member that gets hurt there, the insurance company or the coverage doesn’t protect you from anything.
There is a myth that the company will reimburse anything you tell them you lost if this occurs. This is a fairy-tale to believe in and it is not true. What will happen is the company will tell you to make a list of what you owned at the moment of the loss, but they will make you do it very precisely. They will need pictures of your belongings to make sure you owner those things. So you need to have photos taken of everything you have in your house in case anything like this ever happens to you.
People think that when they file a claim, it raises their premiums. But people don’t always consider that claims are not the only things that matter. It doesn’t always happen so that the premium goes up. Sometimes it takes years. You should always take your deductible into consideration. Also try to find out if there are any discounts that you can apply for. Maybe you get lucky.
Jewelry and furs have limitations. There is a particular sum that they company will give you to reimburse those things in case of burglary. If you own too many of those, please get additional coverage.
Sometimes we think that if we live in a non-flood zone, we can’t have flood ever happening. It can happen to anyone just like earthquakes that can’t be predicted. Flood insurance generally is a nice idea that most home owners should go for.
We think that we are obliged to get some insurance plan when in reality we are not. Nobody forces us to make certain steps. They are totally up to us. Another thing is that it would be wiser to make them in order to avoid some unpleasant and unwanted trouble later.
You should get yourself insured so that you know it and feel protected. Cheap home insurance can be found by those who want to look up and find it. But don’t rush into it. Cheap home insurance plans can be tricky so watch out and don’t listen to gossip on the street. Figure out for yourself. This is the only truth there is.
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