by onlinefinancialnewsletters | Sep 8, 2015 | Personal Protection
Why do you have homeowners insurance? If you’re like many American homeowners, it’s not because you believe anything bad will ever happen to your property but because your mortgage lender or landlord says you must. You signed up for the policy and never gave it another thought. This is extremely dangerous.
Disasters can strike at any time. According to the National Fire Protection Association, U.S. fire departments respond to more than 360,000 home structure fires each year. Flood insurance claims average nearly $4 billion per year according to the National Flood Insurance Program. And Federal Bureau of Investigation statistics show there are more than 5,400 burglaries per day, 74 percent of which occur on residential properties.
Why You Need a Home Inventory
In the event of a theft, fire, flood or other natural disaster, your homeowners insurance may be all that stands between you and financial ruin. Protect your investments — don’t over look the home inventory. This detailed record of everything you own will come in handy should you ever need to file a claim, apply for disaster relief or document losses for tax purposes. Unfortunately, according to the National Association of Insurance Commissioners, 59 percent of U.S. consumers do not have one.
Creating your home inventory will take time, but the difference it can make in the event of a disaster is worth it. The actual process isn’t that difficult, especially if you follow these tips.
- Decide on an approach. You can conduct your home inventory room by room, by category of item, from newest to oldest purchase, or from most to least expensive belongings.
- Create your list. Spreadsheets are particularly effective for this purpose. You can customize columns as you wish, but make sure you include all information an insurance adjuster will need. This includes a description of each item, when you purchased it, the purchase price, and the brand and model or serial number. You can also use Know Your Stuff, free software available both online and as an app, from the Insurance Information Institute.
- Augment your documentation. If you have receipts or canceled checks to prove what you paid for your belongings, keep them. You can scan them if you’d prefer to store these items digitally. Photographs of important items may also prove helpful down the line. You can even make a video tour of your home, showing all of your belongings, to accompany your inventory list.
- Make sure you include everything of value. This includes items you use less regularly such as tools, sporting goods, holiday decorations and formalwear. Go through every closet, drawer and box in your home as well as your attic, basement and garage.
- Store your inventory in a safe place. Keep copies of the list and other documentation outside your home. Locations you may want to consider include a friend or relative’s house, your office or a safe deposit box. For even better protection, store copies in two locations.
- Update your list regularly. At minimum, update your home inventory annually. However, some homeowners find it easier to update their list as they make new purchases and the information and supporting documentation needed is readily available.
Once you’ve created your home inventory, review your insurance policy with your insurance agent to ensure you have adequate coverage. You should understand whether your belongings are insured for cash value (replacement or repair costs minus deprecation) or for replacement cost (replacement or repair without an adjustment for depreciation). Rare or valuable items may benefit from additional insurance riders.
by onlinefinancialnewsletters | Aug 24, 2015 | Personal Protection
When driving down a street at night looking at houses, you are most likely drawn to the house with exterior lighting, neatly trimmed landscaping, and lights on inside. That’s because the house looks inviting and well cared for. Now imagine a burglar is driving down the same street. The things that drew you to the previous house are the same things that will turn that burglar away, looking for better opportunities. A property with no exterior lighting, overgrown landscaping, and possibly no one at home, invites criminal activity.
It is important to note that burglary is a preventable crime. Common sense dictates some of the steps you can take toward making your home safer and less attractive to burglars. The following are some general tips you should incorporate into your routine that can make the difference between the burglar stopping at your house or passing it up for another one further down the road.
The first line of defense between you and a burglar is to properly secure your home.
Make sure your yard, driveway, and all entrances to your home are well-lit. Consider the use of lights on a timer or photocell, which turns lights on automatically at dusk and shuts them off at dawn. Trees and shrubs around windows should be cut back so you don’t give a burglar a place to hide while preparing to enter your home.
If you are going to be away from home for a period of time, leave a light on. Lights left on indoors, especially those on a timer that turn on when it gets dark and shut off at bed time, can be a large deterrent to a burglar. The goal is to make it look as if you are home. Ask a neighbor to pick up your newspapers and bring in your mail.
Along the same lines, if you will be gone for an extended period, arrange for your lawn to be maintained. Permitting your grass to grow high or get dry is a sign of neglect and can invite unwanted attention. If you have a garage – use it. Parking inside your garage on a regular basis makes it more difficult for a burglar casing your home to know whether or not you are really there.
Burglars will usually spend about five minutes trying to get inside your home. Make that task as difficult as possible by doing the obvious – lock your doors and windows! If you forget to lock your back door, this can be viewed as an invitation by a burglar looking to get in to your home quickly. In addition to the obvious, avoid spring bolt locks. It takes only a credit card to push open the bolt and allow access to the inside. Deadbolt locks should be installed on all exterior doors. The American National Standards Institute (ANSI) has established testing and ratings for deadbolt locks. Grade 1 locks are the best, with Grade 3 locks being easier to penetrate. Look for Grade 1 locks when shopping for a deadbolt. A key lock or pin-type lock work best for patio door, or any door with glass that could be easily broken to access a knob on a deadbolt. Heavy-duty strike plates should also be used to prevent a burglar from successfully kicking in your door.
When purchasing a new home, make sure all locks have been changed. Also, think about calling a reputable locksmith who can advise you on proper locks for doors and windows. Carefully preparing your home, including adequate locks, lighting, and regular maintenance, can make the difference between a burglar deciding to make a stop at your house or to keep driving.
by onlinefinancialnewsletters | Aug 10, 2015 | Personal Protection
Summer is a lovely time to get outdoors and bike with your family, but before you go, you’ll want to consider protecting the investment you’ve made in recreation vehicles. Bikes are much easier to steal than cars, as even heavy duty locks can be compromised with the right equipment. The FBI estimates that 1.5 million bicycles are stolen each year in the United States — odds are, yours might be next. Purchasing bicycle insurance could give you peace of mind.
Note: since bikes are considered to be personal property, they are already be insured if you have homeowners or renters insurance. These types of insurance will cover your bicycle if it is stolen or damaged during a house fire or natural disaster. However, if your bike is a high-end model, you may want to purchase an additional rider. You’ll want to check if your insurance will cover your bike if it is stolen when you are away from home — many policies do provide for such a scenario, but it’s worth inquiring.
Your insurance needs may go beyond replacing your bicycle. If you are involved in a crash that totals your bicycle, your wheels might not be the only thing that is hurt. In other words, you may wish that you had personal injury protection.
Your car insurance may cover this unfortunate event if you drive, but cyclists who either cycle or take public transportation may have a need for individualized insurance that addresses this specific need.
If you are taking the time to protect your two-wheeled asset, ask about replacement insurance. Otherwise, your policy could pay the actual cash value of your bike, which if it is eight years old, may be considerably less than you would need to replace your ride.
Find out if your existing coverage is adequate by talking to your insurance agent. If not, she can help you to add the rider or connect you with a carrier who can provide the coverage you need. Doing so will give you the peace of mind you need to enjoy riding your bike free of worry.
by onlinefinancialnewsletters | Jul 27, 2015 | Personal Protection
Whether you’ve just graduated from college or are the parent of a recent college grad, here’s a fact you need to know: only 37 percent of today’s renters have rental insurance. This means millions are only one fire, natural disaster or burglary away from the financial losses renters insurance was created to protect them from.
Why do they take this unnecessary risk? It’s possibly because they are misinformed or otherwise unknowledgeable about this valuable insurance product. Consider the following rental insurance myths and the basics every renter needs to know.
Myth: I don’t need insurance because my landlord has insurance.
This is a common misconception, and many renters have paid its price. While your landlord’s insurance policies cover the building and any unattached property he or she has stored there, they do not cover your belongings. Should they be stolen or destroyed by a fire, hurricane or tornado, you’ll have to replace them yourself. You’re also liable for your own temporary living expenses if the building is deemed uninhabitable.
Myth: I don’t own anything important so insurance isn’t worth it.
This statement is rarely true, and a look around your home is all you need to prove it false. Just imagine what it would cost to replace your computer, television, stereo, electronics, books, movies, furniture, clothing and other belongings. Even buying used, you’re talking about thousands of dollars. Additionally, rental insurance includes liability protection against lawsuits should a visitor become injured while at your home.
Myth: Rental insurance is too expensive.
Again, this statement is false. Renter’s insurance—and homeowner’s insurance—policies are surprisingly affordable. Depending on the amount of coverage you purchase, premiums can be as low as few hundred dollars a year, or less than $20 a month. Talk to your insurance agent about the amount of rental insurance you need and current rates in your state.
Myth: Rental insurance is too confusing.
Understanding most insurance products does take a little time—but it’s always easier with the help of an insurance agent. Give us a call to learn more about rental insurance variables including actual cost versus replacement value, deductibles and policy add-ons (such as floaters to cover valuables above the coverage limits of a standard policy) available to you. We can provide you with quotes from a number of insurers and may even be able to get you a discount.
Whether you’re purchasing rental insurance for yourself or your college graduate, we’re here to help make sure you’re protected from losses due to fire, smoke, lightning, explosions, windstorms, vandalism and theft. Give us a call today.
by onlinefinancialnewsletters | Jul 10, 2015 | Personal Protection
America’s poison help lines received over 3.1 million calls in 2013 alone. While accidental poison exposure of children younger than the age of 6 accounted for nearly 50 percent of incidents, kids weren’t the only ones in harm’s way. Ninety-two percent of reported poison-related deaths were of adults. More than 90 percent of poisonings occurred in the home.
Whether your family includes young children and teens or is comprised of adults alone, consider the American Association of Poison Control Centers’ tips to prevent accidental poisoning in your home.
- Learn to recognize potential poisons – A poison is anything that can harm someone if it is used in the wrong way, by the wrong person or in the wrong amount. Even products you might consider safe—such as vitamin C tablets, mouthwash or hair spray—can become a poison. Additionally:
- Some poisons may be harmful if they touch your eyes or skin.
- Others may be toxic if you breathe or swallow them.
- They can by solids, liquids, sprays or gases.
- Prescription and over-the-counter drugs and medicines are among the most common household poisons.
- Never take larger or more frequent doses than prescribed by your doctor or recommended on OTC drug labels.
- Read all warning labels before taking any medication. Some may become poisons when taken with other drugs or alcohol.
- Turn on a light before taking medications at night to ensure you have the correct bottle and are taking the right amount.
- Keep medicines in their original bottles and containers. Pill sorters may be convenient, but they can also increase your chance of accidental poisoning.
- Dispose of unused, unneeded and expired prescription drugs at National Drug Take Back days. You can find a DEA authorized collection location in your area at this website.
- Household chemical products (cleaning, personal care, pesticides, etc.) are also common household poisons.
- Read the label completely before using any household or personal care product.
- Keep all chemical and personal care products in their original bottles and containers.
- Never mix cleaning products together or you may create toxic gases.
- Turn on fans and open windows before using chemical household cleaners.
- Never apply pesticides or other chemicals without wearing protective clothing.
- Proper storage of potential poisons is essential.
- If you have children—or if youngsters sometimes visit your home—store all medications and household products in a secure cabinet out of sight or out of children’s reach.
- Always secure child safety caps every time you use a medication.
- Put medications and household products away as soon as you are done with them.
- Ask guests to your home to keep their medications out of the sight and access of children as well. They should not leave drugs in their purses, backpacks or coat pockets.
- Remain calm if a poisoning occurs.
- Prepare for such a situation by programming 1-800-222-1222 (the Poison Control Center) into your family’s cell phones.
- Call the poison control center number if the exposure victim is awake and alert. If he or she is not, call 911.
- You’ll need the victim’s age and weight as well as the time of poison exposure and the type of chemical (medication, household product, etc.).
- The emergency operator or poison control center will provide you with further instruction.
by onlinefinancialnewsletters | Jun 24, 2015 | Personal Protection
What would happen if you were permanently injured or became too ill to work? You might qualify for disability payments from Social Security, but would you be able to survive on the average payout ($1,165/month as of April 2015)? Maybe you have some savings, but would they be adequate to cover your living expenses until you’re old enough to collect retirement benefits? If you answered “no” to either of these questions, you should consider buying disability insurance.
Like every other type of insurance, a disability policy is designed to protect something. You buy homeowners insurance to protect your home and the personal property within it. You buy life insurance to protect your family when you eventually pass away. Disability insurance basically protects your income—something that’s especially important during your peak earning years (now defined as age 40 to 55.) Not only do most professionals earn their highest salary during this time, they actively use it to pay down debt and save for retirement.
As most insurers won’t offer disability policies to individuals over the age of 59, now is likely your best time to buy one that will carry you through to full retirement age. As with health and life insurance, the older you are, the more expensive obtaining disability insurance will become. Less than perfect health can make it more difficult, though not impossible. You may still be offered a policy, but it may include exclusions for health issues—such as back problems—for which you’ve regularly sought treatment.
Before you pursue an individual disability insurance policy, check with your employer about group policies. If the company you work for offers one, you may be able to obtain coverage without going through medical underwriting. This can make the process easier and save you money. If your employer does not offer supplemental disability insurance, you’ll want to find a provider who offers guaranteed renewable policies with fixed costs and terms.
In general, experts recommend a disability insurance policy that will replace 60 to 70 percent of your salary. Women are often charged more for the same amount of coverage as men because they are 35 percent more likely to become disabled. Increasing the waiting period on the policy—from 90 days to 180 days, for example—can decrease the price. So can choosing a shorter term. If you and your partner buy policies together, you may also score a discount.
When you apply for a disability insurance policy, the underwriter will look at your health (unless you’re getting insurance through your employer), occupation and finances. You may need to provide tax returns as proof of income. It can be an invasive process, but when you consider the peace of mind disability insurance affords—especially during those peak earning years we mentioned earlier—it’s more than worth any minor hassle. Contact us to discuss the benefits of disability insurance further and explore your options.
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