Archive for July, 2011
If you ever heard the term “dwelling fire” and wondered what it means – the most basic explanation is that it’s an insurance policy for landlords who do not live in the property they own. If you are renting your home to others, you might want to learn more about the above mentioned policy. Even though judging by the name you may assume it’s insurance against fire, it actually covers you against a number of other perils – lightning, wind, hail, explosion, smoke, vandalism, etc. In most cases, a dwelling fire insurance policy covers the home itself, its contents (limited coverage), and liability. It’s different from a renters policy, which protects against a loss in a renter’s personal property.
Dwelling fire insurance doesn’t just cover the house but also some of the surrounding structures such as a shed, garage or fence. It will also cover repair or replacement of the landlord’s furnishings and appliances, provided the damage resulted from a cause included in the policy. Another example of what gets covered by the dwelling fire insurance is the Fire Department Service Charge: if the fire department bills you for the emergency visit to your home, the policy will partially pay for it (usually up to $500).
If a bodily injury occurs to one of your tenants, your dwelling fire policy will protect you against a claim or a lawsuit, as long as there is no negligence on your part that was the direct cause of the injury. Medical payments for the treatment of the tenant’s injury will also get covered even though there could be a limit per person applied.
It’s commonly accepted that women-drivers pay lower rates for their car insurance policy. There’s a number of reasons or, in some cases, speculations why this is happening.
-         Women are safer drivers. They are not as likely as men to be involved in DUI (but whether it is because they drink less is a whole different study). According to BBC News, hormone estrogen positively influences women’s driving skills by making it easier for them to shift attention from one task to another and focus more on the road. Studies also suggest that women practice caution and avoid risk whereas men are more of sensation-seeking type.
-         Women prefer midsized or compact cars. A model of the car is an important variable in the premium-determining formula: men are more likely to drive SUVs  or sports cars and the price they pay for the car of their choice is usually higher.
-Â Â Â Â Â Â Â Â Â Women take better care of their cars. Keeping their vehicle in order and not skipping auto-shop maintenance visits allows most women to keep their cars in the best working condition, which prevents accidents cause by the vehicle malfunction.
-Â Â Â Â Â Â Â Â Â Women spend more time shopping around. Almost any woman today prides herself in finding good deals or promotional rates. Women are just more frugal in nature: they tend to be the guard of the family budget. Hours of comparison-shopping and review research often results in purchasing an auto insurance policy at more favorable rates.
Regardless of gender, practicing safe driving should be mandatory for everyone – a clean driving record is a sure way to keep your car insurance cost to a reasonable minimum.
If you are shopping around to find an adequate term life insurance policy at a rate you can afford, you should be prepared to ask insurance agents a few important questions that will clarify the policy and prevent any unpleasant surprises in the future:
- Are the premium rates fixed? Some insurance companies will sell you a policy with variable premium rates that are likely to increase after the initial low-rate period is over. If the price you were quoted looks too good to be true, make sure to check if it will stay the same for the entire duration of the policy.
- Are there any exclusions in the policy? Among the most common life insurance policy exclusions are Suicide Clause (no payout if the policyholder commits suicide), Dangerous Activity Clause (if the policyholder dies in an accident while participating in a dangerous activity such as rock-climbing or auto racing), Act-of-War Exclusion (often applied to the military personnel).
- Can You Renew Your Policy? Since you will be investing a lot of money into your life insurance policy, make sure you will be able to renew it at the end of the term. Another important factor to check is whether a medical examination is required for policy renewal.
With unemployment on the rise and unpredictable stock market movement, many households are looking for ways to cut down their expenses. The economic downturn affected people in various ways: If some can’t afford to dine out twice a week or choose to switch from Starbucks to Dunkin Donuts, others are struggling to pay for their mortgage or renew their automobile insurance policy. According to Insurance Research Council, about 1 in 7 drivers is now driving without auto insurance coverage.
The consequences of driving without car insurance can be severe: from driver’s license suspension and fines to arrest and vehicle seizure. Some motorists succumb to the fallacy that they are saving money: in fact when their financial affairs improve and they are ready to purchase a new auto insurance policy, they will be charged much higher premiums or even rejected by some insurance companies. And that’s without mentioning the financial hardships should the accident happen: the driver will be responsible for covering the damages out-of-pocket.
There are a few ways to save money without canceling your car insurance policy entirely:
- Reduce your coverage. Even though it’s somewhat risky because in the event of a major accident, the driver will not be fully covered, it will still provide some protection and is definitely a more acceptable option than carrying no policy at all. Find out about your state-required minimum for automobile insurance and adjust your current policy accordingly.
 - Look for discounts: if you are a senior citizen, a new car owner, a good student or a safe driver you qualify for lower insurance rates.
 -Find a new insurer: auto insurance industry is highly competitive and insurance companies come up with various money-saving pricing packages to attract new customers. Shop around and compare rates to find the cheapest insurance policy with adequate coverage.
The incidents of disastrous flooding are reported every year across the United States. The range of damage varies from a few flooded basements to a massive area, where multiple neighborhoods and even towns get submerged in water.  The definition provided by Wikipedia states that “a flood is a temporary covering by water of land not normally covered by water”. Flooding can result from many conditions: hurricanes, tropical storms, river overflows, excessive rainfalls and seasonal weather conditions. It’s more typical for coastal areas to get submerged underwater but flooding can also occur far from the coast line – for instance when it is caused by clogged drainage systems.
Many homeowners face a financial hardship due to the damage to their property resulted from a flood. Some people don’t pay enough attention to the risk due to lack of flooding history in the area, or because they think that they are covered by their homeowner’s insurance should the worse happen. Little do they know that the majority of standard homeowners insurance policies exclude flood damage and a purchase of separate flood policy is required. If you live in a high-risk area (1% annual chance of flooding), getting a flood insurance should be a must for you.
The cost of flooding could be tremendous: even a few inches of water can cause significant damage to your home and its contents. And let’s not forget how whole houses get washed away by fast flood waters. Recovering from this kind of disaster is both a psychological and financial challenge, and carrying an adequate insurance policy will help mitigate the impact and cover any repair cost you might incur.
With multiple insurance policies that one person carries at a time (auto, health, life, liability, homeowner’s), it’s easy to get confused as to which insurer covers what.
Imagine a situation when someone breaks into your car and steals a number of valuable possessions that you carelessly left there. You estimate the total value of the lost personal items at $2,400. Your next step is to contact your insurance company and ask them to cover the loss. The only question is what insurer you will be calling. Your common sense would tell you to call your car insurance company since the property was stolen from the vehicle they issued the insurance policy for. Right? Well, not really… As it turns out personal property is not covered by an auto insurance policy. All items in your car are covered by your homeowner’s policy under the Personal Property coverage (also known as Contents Coverage).
If you are not sure which insurance company should get involved with a claim in a particular situation, rather then trying to find information online contact you insurance agent directly – he will clarify any questions pertaining your policy and coverage and help you file a claim.
Buying a life insurance policy should be approached as a long-term investment. You want to make sure that the life insurance company you select is both reputable and stable and it will be there for the financial needs of your family a number of years from now. So before you invest in a policy that will provide protection for you and your dependents, do a thorough research of the potential companies and make the choice that will relieve any future worries.
As a rule, insurance companies are given financial strength ratings by independent organizations – S&P (Standard & Poor’s), A.M. Best Company, Moody’s. But even if you select an insurer with the best ratings, it’s important to monitor the financial condition of the company you purchased your life insurance policy from – things change rapidly and the overall stability of the financial market can never be fully trusted.
Your next step should be to check with the Better Business Bureau: how many claims were filed for a given insurer, what’s the nature of complaints and how promptly the company resolved them. The BBB can also provide the information on the length of time that the company has been operating as well as any additional details regarding the company’s background. You want to go for BBB Accredited businesses because they comply with the BBB regulations and are monitored consistently for their performance. Beware of the companies that fail to respond to complaints filed against them – you could be one of those unhappy clients that is seeking justice but is being ignored.
One more thing to do is to check consumer-generated reviews and see if there are potential issues that you may also encounter as a customer – hidden charges, poor coverage or unclear policy, bad customer service, etc. Unfortunately these days it’s easy to publish fake positive reviews: if it sounds too good to be true, or too “salesey” with promotional adjectives in abundance, it could be written by one of the company’s employee or a search reputation agency that was hired for the purpose.
Making the right selection will ensure that your money is safe and there will be no issue to cash in your life insurance policy, when the time comes.
Any professional who performs work for a fee can be sued. If a client claims that the work you have performed was inaccurate, incomplete, or mishandled and that client has suffered a financial loss as a result, then you are liable to pay for that loss. A liability is an obligation that legally binds an individual or a company to settle a debt.
Many of these disputes between clients and professionals can end up in court creating a huge financial burden for a company or the professional who performed the work. You don’t only have to worry about covering the legal and court costs to defend your case, but also about the settlement and financial claims resulting from the lawsuit.
Doctors, lawyers, and architects are regularly sued for errors and incomplete work while performing services for clients. In addition, a number of other professionals deal with this issue including consultants, accountants, surveyors, and employees in the IT industry.
The courts have recently taken a broader view of who can be classified as a “professional” so the list continues to expand. If you are a designer, a real estate agent, an advertising agent, a tax agent, a private investigator, or a translator, then you are considered a “professional” who can be sued due to incomplete, inaccurate, or mishandled work that causes a client to have a financial loss.
Unfortunately, lawsuits can be extremely expensive to defend even in cases where the allegations are completely false. There have been a number of businesses that have gone bankrupt due to these lawsuits. This is why business owners and professionals who work with clients should buy a professional liability insurance policy to protect their assets and their business.
