source : insurancecompared.com.au/
There are different branches of entertainment insurance. As a producer of entertainment you may want to protect yourself and your budget against a multitude of events that could occur. You want your cast to be able to appear, you want all your equipment to work, you want the sets and wardrobe to be protected from damage; you basically want everything to run smoothly. Entertainment insurance protects you, as the producer, from all these things.
Entertainment insurance also protects you from the public. You may have a claim against you that states that you have infringed copyright or accidentally made libelous remarks in your entertainment. A member of the public may be injured at a special launch event you are running or live event you have organized. Entertainment insurance can cover you, and that’s good as some lawsuits in this industry run into the millions.
Who needs entertainment insurance?
Any producer, contractor or entertainment event organizer should cover themselves with entertainment insurance before they embark on any project. Considering the fickle nature of the entertainment industry, insurance can be comprehensive and cover a multitude of possible problems. The cost of solving these problems is normally many times the cost of the insurance premium. This is why entertainment insurance is an essential part of a media budget.
What typically does an entertainment insurance policy cover?
Entertainment insurance is much like other workplace insurance policies in that it covers basic liability, covers all workplace equipment (including film) from damage, loss, fire and theft. You are usually covered for any kind of worker’s compensation in the event of injury to an onsite employee or contractor.
You can also be insured against the illness and injury of cast members that are critical to the continuing production of your project. Insurance will normally cover the running cost of the production until the cast member can return to finish the production. Essentially, the insurance company acts as a guarantor for the smooth running of the production.
What typically does an entertainment insurance policy not cover?
Delayed production because of weather is not normally covered unless you have a weather clause built into your policy. A pre-existing issue with a venue or production member will also void the insurance policy.
Additional insurance products that policy holders might need in this area
Entertainment insurance is a niche insurance product that covers the majority of potential issues that can arise during an entertainment event. The only insurance products that you would need to give you extra cover would be extra public liability insurance in the event of numerous people being affecting by an issue or weather insurance if you are holding a one-off public event.
Additional coverage for an entertainment insurance policy
If your entertainment project last longer than one month, or is ongoing, you will need to specify this to your insurer. Many policies assume that the project is short-term with a predetermined end date. If you over-run on production you will have to check to see if you are covered for this period. You will need to apply for additional coverage in this area
What will entertainment insurance typically cost?
Entertainment insurance is usually a percentage of your total production budget. The size of the percentage is wholly dependant to the scope of the project at hand. You may find that a small audio project may be around 1% of your total cover whereas a film production event may be over 5%. The exact percentages are then determined by the level of coverage required and the insurer you choose to go with.
Wednesday, February 18, 2009
Entertainment Insurance Explained
Farmer Insurance Explained
Farmer insurance takes into account the difference in each farm and the needs of each farmer and provides a comprehensive policy that allows a farm to operate efficiently without having to divert much needed funds to repairs, medical costs or legal costs. Crop farms, river farming, ranches and any other style of farm can receive farmer insurance.
Unsurprisingly, farmers need farmer insurance. Any primary industry professional that owns land that relies on income from crops and livestock can be covered by farmer insurance. An entire year’s production can be devastated by one single event. This is why all farmers need farmer insurance.
What typically does a farmer insurance policy cover?
A standard farmer insurance policy is normally very comprehensive. Liability and medical expenses from any incident that arises from the farm is covered. This covers all your employees as well as any visitors or contractors to your farm. Theft of property and property damage caused by fire, adverse weather and vandalism is covered. Property generally includes any farm buildings, equipment and crops.
What typically does a farmer insurance policy not cover?
You will need extended coverage for certain events as a basic farmer insurance plan typically does not cover, damage to personal property of any employee working on the farm; loss of crops or livestock through accidents or damage caused by other animals; and damage to crops that have not been sprayed by insecticide are rarely covered. In farming there are so many eventualities that may occur you should check with your insurer if you are covered for events that are common to your particular farm.
Additional insurance products that policy holders might need in this area
As farms are very particular operations, other basic insurance policies are normally voided in the context of a farm. Standard home, contents, even health policies are inadequate for farmers as farmers fall into a much higher risk category than the average citizen. If you require further coverage, look for it within your farmer insurance policy and not through an additional policy.
Even though a standard farm insurance policy is quite comprehensive you need to see what exclusions exist. These exclusions can end up costing you a lot of money. You may find that farm equipment is covered but specific items such as guns, vehicles above a certain value and custom farming equipment are not covered. Ask for additional coverage in areas you know you are lacking if you want full piece of mind.
What will farmer insurance typically cost?
Farmer insurance is usually a percentage of your total insured cover. The size of the percentage is wholly dependant on the risk factors the insurance company believes to be true for your farmer. Typically, farmer insurance can demand a premium of up to 7% of the total cover. The exact percentages are determined by the exact level of coverage and the insurer you choose to go with. Some premiums can be vastly reduced if you have taken steps to minimize the insurance companies exposure or have a risk management plan in place.
Wednesday, February 11, 2009
Why most sickness and unemployment insurance is a waste of your money
This article is taken from Merryn Somerset Webb's free weekly personal finance email, Money Sense. Click here to sign up now: Money Sense
“You can buy yourself insurance against almost any conceivable risk – even alien abduction,” says Claudia Dyer of consumer group Which?. While most of us are probably not covered against extraterrestrial kidnapping, it is likely that we have more cover than we need in some areas, and less or none at all in more important ones.
Given the pressure that rising food and energy prices are putting on household budgets right now and the need therefore to cut out non-essential expenditure, this is a great time to review what you are spending and cancel any useless and often expensive cover.
The truth is, the only insurance products that are, “must haves” are car, home and, for anyone with dependents, life cover. Beyond that it’s all optional, and in many cases unnecessary, no matter what your financial adviser – often hoping to earn a commission - may say to the contrary.
This week, I’ll look at three types that all deal with the problem of how to maintain your income during an absence from work; payment protection insurance, critical illness cover and income protection. Most people couldn’t survive on state benefits alone - at just £75.40 a week (from this month), statutory sick pay barely covers the weekly food shopping for one, which is why Andrew Merricks of Skerritt Consultants comments that, “you need to build your own little welfare state because no-one else is going to do it for you”.
However, before rushing off to buy tons of extra cover, consider what you already get through work – your employer may offer up to say three months’ salary at full pay should you fall ill. That’s not great for long-term illnesses, but if you also have significant savings set aside, sufficient to cover at least six months of your essential net monthly outgoings (the mortgage being the biggest one for most people), extra cover may be a waste of money.
Accident, sickness and unemployment insurance
Confusingly this is also known as “mortgage payment insurance” and “payment protection insurance”, the objective being to cover your mortgage and loan repayments (which can include credit card balance cover) should you fall ill, get injured or lose your job. Given the wide range of unfortunate circumstances covered are these policies too good to be true?
I’m afraid so. The fact that the FSA fined HFC, an HSBC subsidiary, over £1m in January for mis-selling this type of product, coupled with a wider two-year investigation of the whole area by the Office of Fair trading, should be sufficient warning – typical PPI policies are expensive and riddled with small print and exclusions.
For example, a typical policy will only kick in after anywhere between two and four months after the accident or illness, and then run for a limited term, often no more than twelve months. Most will also only let you claim after a year in the same permanent employment. Most tellingly, an unimpressive 20% of claims are paid out on these policies according to the Telegraph. Avoid.
Critical illness cover (CIC)
Nothing if not popular, last year we bought 583,900 policies according to Swiss Re, largely because they appear, on first sight, to be fairly straightforward. Alas that’s often not true but CIC remains a lucrative commission earner for financial advisers.
The premise is deceptively simple – you pay a monthly premium so that should you be unlucky enough to contract one of the specified “critical illnesses”, the plan pays a predetermined lump sum, say £200,000, to be spent as you see fit, perhaps on paying down a mortgage or buying private treatment.
So, what’s the problem? As ever with insurance, it’s the small print. To ensure you are covered you need to scour the contract pretty thoroughly. That’s because certain common medical conditions may be excluded altogether – a classic for men is prostate cancer – and many plans also disallow pre-existing conditions, often a grey area when it comes to settling claims.
Also, as you get older premiums can climb steeply – for example, according to godirect.co.uk a 45-year-old female non-smoker can expect to pay well over £100 a month for £200,000 of cover. Finally if you already have significant cash savings, CIC is pointless since you could simply spend those instead, should the worst happen. All in all, whilst a better bet than payment protection, CIC is far from perfect for many buyers.
Income protection
The best of the bunch, the product favoured by Which? and, says consultancy Defaqto, “the only one that comprehensively protects against the consequences of incapacity”. Yet, oddly, UK sales last year were only around one quarter of CIC products with many consumers still seemingly unaware of its existence, according to Lifesearch.
Income protection is designed to pay out up to 75% of your gross monthly salary tax free (50% is more usual and sufficient in many cases to match after-tax income) should you be unable to work because of sickness or injury but not, it’s worth noting, unemployment. The payments usually last until you return to work, or should that not be possible, your retirement date. Usefully, unlike either of the other plans, income protection will often cover problems such as back pain or stress, the two biggest causes of absence from work.
Be aware that there are two rather different types of plan – the more flexible, “own occupation” type which pays out until you can return to your specific job, and the “any occupation” type that only pays out in the (less likely) event that you are unable to return to any kind of employment.
Premiums can be high – however, whether that’s the case depends on several factors. First off, the longer the “deferral period” before the plan starts to pay out after you are forced to leave work, the less you pay each month, so always review how long your cash savings would last before deciding on this and go for the longest period you can.
For example, a three-month deferred start can reduce monthly premiums by 30-40% compared to an immediate start, according to Lifesearch. Then there’s the job you do – manual workers pay more per month for cover than office workers – and your age and lifestyle, with premiums rising for older employees and, somewhat predictably, smokers.
In short then, as times get tight, no one wants to be shelling out money needlessly on expensive insurance. Therefore, say no to, or cancel, any form of payment protection cover and, if it’s illness cover you need, don’t follow the crowd - take a look at income protection ahead of critical illness plans. Even then, a little time spent understanding the product and shopping around for a competitive premium using a site such as moneysupermarket.com or your financial adviser is time well spent.
Merryn Somerset Webb is away.
This article is taken from Merryn Somerset Webb's free weekly personal finance email, Money Sense. Click here to sign up now: Money Sense
How to save on travel insurance
As life expectancy increases, so has the age at which 'life begins' – with many people supporting the idea that 'life begins at 50'. Unfortunately, travel insurance companies disagree. Or at least that is how it seems, considering how rapidly premiums rocket for those who are 50 or over. And as for those who are over 70, many "are shocked to find travel insurers unwilling to provide cover at prices they can afford", says Kara Gammell in The Daily Telegraph. So how do you find affordable travel insurance that won't leave you high and dry if you fall ill on holiday?
Consumers need to think of travel insurance as something they should tailor to their own needs, rather than an off-the-shelf product, says The Daily Telegraph. So one of the simplest ways of reducing the premium is to look carefully at the level of cover you are being offered and then decide whether you actually need it all within the policy. For example, if you are travelling to Europe, opt for European cover rather than worldwide cover, as the latter includes America, where litigation and medical costs can push up the cost of cover. Also, consider covering personal possessions under your home insurance – and, as always, shop around for the best deal.
Eat your greens. Food inflation is forcing the weekly shopping bill to new heights, but broccoli is proving the exception, says The Guardian. It is one of the few vegetables that is falling in price, due to plentiful current supplies. The average price is now £1.38 per kilo – down 27% from this time last year. So stock up on broccoli. But forget the cheese sauce. Cheddar prices rose 10% last week alone, according to The Grocer.
Choose your pets carefully. A Great Dane will cost its owner an average of £669.64 in damages over a lifetime, says eSure, and small dogs aren't much better. Chihuahuas cause an average carnage bill of £638.41 during their lives. Add in medical bills and food, and dogs are expensive members of the family. But there are ways to cut the costs.
Save on vet's bills. If you haven't bought a dog yet, then opt for a mongrel. "They tend to be less prone to disease and cheaper to insure," says Ali Taylor from Battersea Dogs & Cats Home in The Independent on Sunday. What if you already have a pet? You could consider pet insurance to cover emergency vet bills, but do shop around and check the small print carefully: pet insurance is notorious for exclusions based on age and other factors. A better route is prevention – take your dog for regular walks and cut back on the treats. A healthy, fit canine is far less likely to get ill than a fat one.
Save money on clothes. You can currently get 30% off at Gap. Just go to moneysavingexpert.com, fill in the form and you can print off a voucher giving you 30% off in Gap until Sunday 28 September.
Beware of dodgy insurance
"A huge victory for consumers" is how Peter Vicary-Smith, head of Which?, hailed the latest payment protection insurance (PPI) proposals from the Competition Commission. No wonder. As Thisismoney.co.uk notes, the "charge sheet against PPI" (which is meant to insure you against being unable to repay a loan or credit-card balance if you fall ill or lose your job) is long. Complaints about Britain's 13 million policies include that it's "overpriced, sold to people who can never claim on it, sold with no cancellation clause, and often ineffective". It's also often "forced on customers by pushy sales staff".
The statistics are grim. Only 14% of PPI premiums are returned to customers as a result of successful claims – that's compared to 78% for car insurance and 54% for home insurance. And as Caroline Binham reports on Bloomberg, the regulator found in June that PPI providers overcharge customers by £1.4bn a year, against annual sales of £5.5bn. So what's changing? The Competition Commission stopped short of banning PPI altogether. But it is banning "single premium policies", where the premium is paid up front and often added to the original loan as a lump sum. Providers will also be stopped from pushing customers to take PPI immediately. They will have to wait 14 days and tailor any quote to ensure the policy is suitable.
Fine, say the banks – but loan rates will rise because the income from PPI sales often subsidises interest charges. And the changes come just as people need cover going into a recession. This is "nonsense", as The Independent's Julian Knight puts it. There's "never a good time to be mis-sold a policy". The extra transparency should stop millions from buying cover they either don't need, or that doesn't do what they expect. If you think you may have been sold an unsuitable PPI plan – some campaigners reckon there's a problem with up to half of them – you can complain to the Financial Ombudsman
Friday, February 6, 2009
Tips To Reduce Your Car Insurance Costs
With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it is possible to find cheap car insurance, the question remains, is it worth buying?
Everyone knows that car insurance companies are not all equal. Cheap car insurance is wonderful when paying the bill, but make a mistake on the company you select and you could find that the cheap car insurance policy that you found may turn into a nightmare. Cheap car insurance may not turn out to be so attractive when making a claim.
So if you have found a discount car insurance broker don't just take the cheapest quote that you get. You need to find out a little about the insurance company that is offering the cheap car insurance rates.
And there's ways to reduce the cost of your car insurance even with the best of companies. Here are some tips for those looking for cheap car insurance to help reduce the cost of car insurance without compromising other things.
7 Cheap Car Insurance Tips
1.Look at your deductible amount. This is the amount that you pay first out of any claim. The cost of your policy is directly related to this amount. Many people, particularly those who have had their insurance policy for a long time, have never considered whether they ought to vary their deductible. If you have a good driving record and are prepared to increase the risk of paying a larger amount in the event of a (hopefully unlikely) claim you can save money by increasing your deductible.
2.Have a look at the type of car you drive. Certain types of cars attract higher car insurance rates. Cars such as sports cars and also certain makes and models that are prime theft candidates cost more to insure. If you are buying a car then find out which makes and models these are before you buy.
3.Drive carefully. Although it sounds a little trite to say it, your car insurance cost is a factor of your risk profile. You won't get cheap car insurance if you have had 3 speeding fines and 2 accidents in the last year. These things are all taken into account and you should take care with how you drive. It all adds up onto your bill. There are big safe driver discounts available.
4.Considering installing safety and anti theft devices in your car. Again these affect your risk profile. If you have a car that is safer and less at risk of theft it should be cheaper to insure. And if you have a car with certain safety devices now check that your insurance company is aware of these, if not tell them.
5.Look at your policy when it comes to renewal time, don't just pay. There are some things that you can vary in your policy that will affect the cost. Often there are some things there which duplicate other insurance that you may have that can be eliminated. Be critical, look carefully and ask questions about all these before you renew your policy.
6.Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.
7.Find a good online discount car insurance broker before renewing. The internet is a fabulous resource. Use it. There are all sorts of discount insurance brokers online where you can get fast quotes from a wide range of companies. Don't just settle for the same company you always use. Car insurance rates vary all the time. Always get comparable quotes before renewing any policy.
So if you're in the market for cheap car insurance there's some ideas for you. Don't just accept that car insurance is always prohibitively expensive, get out there and do something about it.
Save Money On Car Insurance
(NAPSI)-When it comes to car insurance, a little research + the right questions = money in your pocket.
Rates can differ widely from company to company, so it pays to shop around. Independent insurance agents represent more than one insurance company, so they can compare multiple carriers and policies to find the one that's right for you.
If you're a do-it-yourselfer, Web sites such as www.progressive.com will help you compare its rates with other insurers.
In addition to shopping around, there are other steps you can take to lower your insurance rate:
Is your policy up to date? If you've moved, gotten married or if it has been at least three years since your last driving violation, check with your insurance company. You may be eligible for a rate reduction.
Is your coverage right for your car? Owners of older or inexpensive cars should consider dropping comprehensive and collision coverages. That can often save hundreds of dollars each year.
Know before you buy. Before you buy a new car, research what it will cost to insure. Generally, smaller cars with lower horsepower are less expensive to insure.
Do you carry excess coverage? Many auto insurers give you the option to add rental coverage to your policy, which pays for a rental car while your vehicle is being repaired. While conditions and costs vary from company to company, it may be unnecessary if you can find other transportation.
Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive costs by 15 to 20 percent. Your agent can show you how raising your deductible can lower your premium.
Do you qualify for any discounts? Ask your independent agent whether any of the carriers he or she represents offer reduced premiums for certain car features such as anti-lock brakes.
Are your policies all "bundled" with the same company? This may not be best for you. Your independent agent is uniquely qualified to quote your policies with "best-in-class" carriers that offer specialized coverages and services. "Unbundling" your policies might save you a bundle.
Thursday, February 5, 2009
Valuing and Protecting your Family: Affordable Health Insurance Quotes for Family
Accidents may happen at any time. Nobody knows when and where it will be. Nobody knows how it will happen. And no one knows to whom it can happen. It can happen to anyone � from a beggar living on the street to the people living in a nice mansion.
Accidents are unpredictable. Wise people know exactly how to prepare themselves when this happen. How? They get a health insurance for them and the entire family. They use the health insurance to cover each member of the family from sudden accidents.
Health insurance can really be helpful. If you do not have it yet, it�s not yet late. Health insurance quotes can be found almost anywhere. It can give peace of mind and financial coverage whenever accident happens.
Affordable health insurance quotes for family come in different packages. You can find the one that best meet the needs of your family through online. Choosing from these packages is really a necessity for everybody today. Affordable health insurance quotes for family will surely help you save more money for both upfront and unexpected medical emergencies.
The very main reason why most people get health insurance quotes is for them to be able to pay their medical needs whenever necessary. There will definitely be a moment in your life that you or any from your family will need medical support, may it be for medical check up or hospitalization.
Medical assistance is really very expensive. Most people are not able to pay for these even if they want. Health insurance quotes will help them pay the fees for them to get the medical support they need.
Getting health insurance quotes become very important especially to those who have family. With it you are able to give the suitable protection to your loved ones. Nobody wants to get their children sick and later on not able to give the medical assistance they need for them to get better.
Most people think that the cost of getting health insurance quotes is high. What these people do not know is that they are able to save more than the expenses they will incur when serious accidents happen and pay for hospitalization without the help of health insurance.
In addition to that, affordable health insurance quotes also exist. It is just as simpler to acquire as the ordinary or the high-priced insurance. It is also very easy to get it especially when the insurance companies believe that every member of your family is in good health. It is also important that everybody of your family do not possess any harmful habits like smoking or too much drinking of alcohol. So, you must present a health certificate whenever you decide to get health insurance quotes in order to lower the fee you will pay for the family�s health insurance coverage.
If you think you do not have time to get it by yourself, ask the help of your insurance agent. At any given time, your agent will be able to present you the quotes you and your family need.
Affordable health insurance for family is important especially if you want to assure the protection and security of your family. Never hesitate to get it. Anyway, it can really be a great help to you� soon.
Cheap Car Insurance Quotes And Low Cost Auto Rates Can Save You Money
source : globalsofa.com
Today if you're a smart consumer, you'll search for the best low cost auto insurance or cheap car insurance rate especially now when insurance rates are not as low as they used to be. It's not only smart but absolutely necessary to seek out the lowest possible vehicle or car insurance quote. Most car or auto insurance companies offer a wide range of policies and plans to their policyholders and therefore can offer discounts and free online cheap car insurance quotes.
If you're just starting to look for cheap car insurance quotes, you'll want to compare both long established and newer insurance companies for cheaper rates. The new auto insurance companies are competing for your business, but of course they don't have a long term history to back them up.
Auto or car insurance rates and quotes are never going to be identical for each company. There are many variables in insurance plans. Make sure to find out all you can about the company you've selected. Check online for customer car insurance reviews and ratings but keep in mind that negative reviews can happen with any auto insurance company. You want to make sure you find out exactly how much your deductibles will be and any conditions attached to them.
Keep in mind that insurance companies change their rates from time to time so the quote you got yesterday may not be good today. Many insurance companies will offer lower or cheaper insurance rates or more affordable budget rates than others with the same type of policies. You'll want to make sure that you have full quality coverage or at least the coverage you basically need in your insurance policy. Make sure the insurance agents will be easy to contact at their office or home. If buying insurance online, find out how easy it will be to contact your agent over the Internet.
You want to make sure to compare all the cheap car insurance quotes that you do get; some may be very similar to each other but some of the quotes could be quite a bit different. In the U.S. many insurers offer a good-grade discount to students who have a good academic record. They may also have resident, student discounts to those who live away from their home. And senior drivers are often eligible for retirement discounts reflecting the lower average miles that are driven by this group. Women drivers can get discounts from some companies.
Make sure to check out the online, discount car insurance brokers who can give you fast online cheap car insurance quotes to compare from several different companies. Of course, avoiding accidents will keep your insurance costs down, so keep the kids quiet so you can concentrate on your driving. You can keep them busy with quiet car games kept solely for this purpose and give rewards for good behavior. In general, insurance premiums tend to become much lower at the age of 25.
If you don't have a very good driving record you might not be able to get the insurance deductible you want. Make an attempt to focus on trying to turn your driving record around to further lower your insurance costs. And if you've always been with one company, don't assume you're getting the best insurance rate; compare the features and get quotes from other several companies. But sometimes longevity will play a part so make sure that you aren't giving up the long history you may have with a good workable insurance company rather than going with the cheapest quotes.
If you haven't had any automobile accidents that were your fault and you're a good driver, then consider a higher deductible. You would pay out a larger sum of money in the event you have an accident that's your fault but you would save on your monthly or quarterly insurance premium. Several car insurance policies or plans are based on a reasonable estimation of the annual average projected distance expected to be driven with figures provided by the insured. This low mileage discount benefits drivers who only drive their cars now and then.
Make sure the car insurance company you select offers excellent, quality low cost and cheap rates of auto insurance and a high level of customer service. These are just a few of the best tips that can help you understand discounts, save money on your auto insurance and give you an idea what to look for when you're getting a cheap car insurance quote.
Save money with free online cheap car insurance quotes and for finding the best auto insurance visit http://www.Cheap-Car-Insurance-Quotes.info specializing in cheap car insurance advice, resources and auto insurance discounts including tips on how to save money on your car insurance quotes
Wednesday, February 4, 2009
Obama signs kids' health insurance bill
President Barack Obama on Wednesday signed a bill extending health coverage to 4 million uninsured children, a move he called a first step toward fulfilling a campaign pledge to provide insurance for all Americans. It was a victory for Obama a day after his nominee to shepherd his broad health care agenda stepped aside amid tax problems.
Obama used an ebullient East Room signing ceremony to continue his push for his plan that would provide universal health insurance, even as he spent much of the previous day admitting he "screwed up" in naming former Sen. Tom Daschle to spearhead the health care overhaul. He wrapped the signing event in another pitch for his separate $819 billion economic plan that now is under consideration in the Senate and faces Republican opposition.
"As I think everybody here will agree, this is only the first step," Obama said of the bill that reauthorizes the State Children's Health Insurance Program.
"Because the way I see it, providing coverage to 11 million children through CHIP is a down payment on my commitment to cover every single American," he said to applause before turning to the economic recovery bill.
"It won't be easy; it won't happen all at once," Obama said. "But this bill that I'm about to sign, that wasn't easy either."
Obama and his advisers see the economic crisis as his window to push through many of his campaign pledges. Renewable energy, financial regulation and even rural Internet access all have been tied to repairing the nation's fractured economy. In the process, Obama has exposed his plan to criticism and questions that threaten to jettison the first major legislation his team has assembled.
"I refuse to accept that millions of our children fail to reach their full potential because we fail to meet their basic needs. In a decent society, there are certain obligations that are not subject to trade-offs or negotiations, and health care for our children is one of those obligations," Obama said, signaling he was readying for a fight.
Obama has faced a difficult week, his second full one in office. Daschle, the former Senate Democratic leader, withdrew his nomination as secretary of health and human services after acknowledging he failed to pay taxes on a car and driver provided by a Democratic fundraiser. His departure also left in the president's team a large gap for someone to usher through sweeping reform Obama has promised.
The children's health bill calls for spending an additional $32.8 billion on SCHIPI, which now enrolls an estimated 7 million children. Lawmakers generated that revenue by raising the federal tobacco tax.
Health officials project that there are about 8 million to 9 million uninsured children in the United States.
The bill went to the White House fresh from passage in the Democratic-controlled House, on a vote of 290-135. Forty Republicans joined in approval.
Most Republicans, though, criticized the cost of the legislation. They also said it will mean an estimated 2.4 million children who otherwise would have access to private insurance will join the State Children's Health Insurance Program instead.
"The Democrats continue to push their government-run health care agenda _ universal coverage, as they call it," said Rep. Pete Sessions, R-Texas.
The bill's passages has long been a top priority of Democratic lawmakers. In late 2007, President George W. Bush twice vetoed similar bills. The Senate passed the same bill last week. Obama made it a top priority in his first 100 days and one step in his push for universal coverage by the end of his first term.
"President Obama and Congress are demonstrating that change has come to Washington, and we are moving forward to improve the quality of life for American families struggling during these hard times," said Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee.
SCHIP was created more than a decade ago to help children in families with incomes too high to qualify for Medicaid but too low to afford private coverage.
Federal money for the program was set to expire March 31, barring action by Congress. To cover the increase in spending, the bill would boost the federal excise tax on a pack of cigarettes by 62 cents, to $1.01 a pack.
Opponents of the bill complained that the tobacco tax increase hits the poor the hardest, because they are more likely to smoke than wealthier people. Many also took exception to expanding the program and Medicaid to children of newly arrived legal immigrants.
Republicans said that they supported SCHIP and providing additional money for the program. However, they argued that Democrats were taking the program beyond its original intent and encouraging states to cover middle-class families who otherwise could get private insurance.
"This debate is about, do we want a children's health insurance program that covers every child in America with state and federal dollars regardless of their ability to pay?" said Rep. Joe Barton, R-Texas. "Do we want to freeze out the private sector for health insurance?"
But supporters said that ensuring children had access to adequate health care was a matter of priorities. Rep. Frank Pallone, D-N.J., said an estimated 4 million people have lost employer-sponsored insurance in the past year.
"Do they keep their families' health insurance or do they put food on the table at night? During this economic recession, these kinds of decisions are unfortunately becoming more common," Pallone said.
Tuesday, February 3, 2009
How to Buy the Best Motor Trade Insurance Policy
A Rough Idea of the Types of Life Insurance Policies Availale
General Insurance Policies, Providing You a Sound Base to Carry Your Business Operations
Monday, February 2, 2009
Do You Know the Auto Insurance Basics?
source : insurance.com
Do You Know the Auto Insurance Basics?
You're a driver, so you know how crazy it gets on the road. Between distractions and the rush to get somewhere on time, accidents can and do happen. Fenders get bent, and sometimes people get hurt. Even if you're just parked in your driveway, a tree limb can crash through your windshield, or someone can steal your car. When the worst happens, auto insurance is there to protect you.
Why buy auto insurance?
Auto insurance can protect you against the financial risk associated with personal injuries and property damage caused by auto accidents, theft, vandalism, or natural disasters.
All states require you to purchase at least a minimum amount of liability coverage. Other types of auto insurance coverage may be optional or required, depending on state regulations. If you have a car loan or lease, the lender will also generally require that you purchase coverage for the car itself.
Liability coverage
This is the state-mandated legal coverage you'll be required to have (learn more):
- Bodily injury liability: Protects your assets if you are held liable for an auto accident in which other people are injured or killed.
- Property damage liability: Covers repairing or replacing the autos or other property of other people.
This coverage will also pay for the legal costs associated with defending you against lawsuits related to accidents. To adequately protect your assets, you probably want to purchase much more than the minimum amount of coverage required in your state.
Collision, comprehensive, uninsured and underinsured motorist, and medical payments coverages
Although these coverages are optional in most states, it often makes sense to purchase them, unless you can afford to pay for losses yourself.
- Collision: Pays to repair or replace your car if it's damaged in an accident. (Learn more.)
- Comprehensive: Insures your car against damage caused by something other than an auto accident (e.g., theft, fire, flood, vandalism). It is also called other-than-collision. (Learn more.)
- Uninsured/underinsured motorist coverage: Unless you live in a "no-fault" state (where your own insurance will cover your losses), this coverage insures you against certain losses caused by other drivers with little (underinsured) or no (uninsured) auto insurance. It can cover things like lost wages as well, and provides coverage to your passengers, and those listed on your policy while riding in other cars or as pedestrians. (Learn more.)
- Medical payments coverage or personal injury protection (PIP): Covers various medical and/or funeral expenses for you and your passengers, as well as those listed on your policy while riding in other cars or as pedestrians. (Learn more about: medical payments coverage and PIP coverage.)
Additional coverages
Most of these coverages are optional, relatively cheap, and provide a lot of protection, although they may not be helpful in all circumstances.
- Gap coverage: Pays the difference between the actual cash value of your car and the amount you owe on your loan or lease if your car is totaled in a covered accident. It is sometimes called loan/lease coverage. (Learn more.)
- Towing and labor or roadside assistance: Towing and labor usually covers the cost to tow your car to a repair facility or make minor repairs after a covered accident. Roadside assistance usually covers towing, minor repairs, and fuel delivery, even if there was no accident.
- Rental reimbursement: Pays the cost of renting a replacement car if yours is not drivable due to a covered accident. Some auto insurance companies will send you a check for part of the allowed amount if you don't rent a replacement car. (Learn more.)
And then the insurance company pays for everything, right?
That would be nice, but it's not always true. Here are some things you'll always need to cover yourself:
- Deductibles: The amount of money that you've agreed to pay out of your own pocket before your insurance coverage kicks in. You can have different deductibles for different coverages, and liability coverage never has a deductible.
- Exclusions: Events or situations your policy specifically omits from coverage, such as property damage or personal injury you intentionally cause, or damage to your own car due to mechanical failure or wear-and-tear.
- Costs above policy limits: Any expenses that exceed the caps on the dollar amounts of coverage you're entitled to receive under your policy.
Driving a good bargain
Many factors affect your auto insurance premium, including your age, the state in which you live, the make and model of your car, where your car is parked at night, and your driving record. Although you can't do much about some of these factors, here are some things you can do to help lower your premiums:
- Increase your insurance deductible.
- Eliminate optional coverages if you don't need them (e.g., rental reimbursement if you have other means of transportation).
- Eliminate collision and comprehensive coverage if you drive an older car that wouldn't cost much to replace, and if you could afford to pay for repairs if necessary.
- Ask about available discounts (e.g., low-mileage discounts, discounts for safety or antitheft devices) for your auto insurance (if applicable in your situation).
- Avoid buying a vehicle prone to theft or expensive to repair.
- Drive safely to establish a good driving record.
- Maintain good credit.
Shop around
It's important to shop around for auto insurance coverage. Insurance premiums for the same coverage on the same car can vary widely among different insurers. A particularly good time to investigate your alternatives is when your current insurance policy is up for renewal, but you can shop and change policies at any time. Get quotes from several reputable companies, but don't let price be your only consideration. Make sure the coverage offered by each insurer meets your needs, and find out if the insurer has a solid financial strength rating.
Do you have any questions or comments? Please let us know.
Commercial Insurance - What exactly is it?
Commercial Insurance or Business Insurance is something that nearly all businesses (however big or small) need. And yet despite being purchased by so many people who (apart from those insurance people) actually understand it? And if not, do they need to? This article has been written to explain the myths behind Commercial Insurance.
Seems like a pretty straightforward question so here goes:
Put very simply, Commercial Insurance is protection for your business. From new start businesses to those well established; an unexpected event could destroy your business if adequate cover isn’t in place.
With so many insurance products and providers, it would be easy to think Commercial Insurance was a complicated matter. It doesn’t however need to be this way. Commercial Insurance can easily be broken down into 3 keys areas:
1.Keep it legal
2.Protection
3.How to buy
Keep it legal
Certain types of cover are required by law. Employers Liability insurance, which covers claims from employees for accidents and sickness they may suffer as a result of working for your business, is one type of cover that must be purchased. You will also need to purchase at least third-party motor insurance for all motor vehicles used by the company.
Protection
Ensuring you have the right cover and protection is vital so time should be taken to ensure you find a policy (or policies) that give you exactly the level of cover you require. This again need not be a complicated task if you break down your requirements:
A. Insure your people – many firms are often dependent on the people they employ. Insurance is available which will protect the business in the event of employees being unable to work. Types of cover available include Keyman insurance, income protection, directors & officers insurance and private health & critical illness cover.
B. Insure the common risks – certain risks are common to all businesses. These include fire, theft and equipment failure. It is worth investigating (or getting someone to investigate for you) whether common risks such as buildings and contents insurance, cover for money and goods in transit and business interruption insurance can be covered under an all-risks type policy. This may save your business time as well as money.
C. Specialist cover – depending on your industry and requirements, policies can often be packaged together with some even being industry specific with packages tailored to cover specialist sectors like engineering or manufacturing. Other specialist cover available includes public and product liability and professional indemnity cover.
How to buy
Commercial Insurance is more often than not purchased using an Insurance Broker. The benefit of using an Insurance Broker as opposed to buying Business Insurance direct is that they are insurance professionals who can recommend policies to you whilst searching the market to find you the best possible deal.
A good Insurance Broker will offer a personalized service and will understand your needs and that of your business. When looking for an insurance provider it is often worth checking to see if they are well established, have schemes with the leading insurance companies and whether they offer a local and personalized service.
This guide was compiled by Northern Counties Insurance Brokers. As one of the UK's Leading Insurance Brokers Northern Counties have been providing Commercial Insurance and Business Insurance to companies since 1928.
Northern Counties Insurance Brokers - The UK's Insurance Broker
For all your Commercial Insurance needs
Saturday, January 31, 2009
The 5 Step Guide to Considering Insurance Offered by Credit Card Companies
1.Become knowledgeable about what credit insurance is:
If you own a credit card you have probably been asked by the company if you would like to add credit insurance. Most are unfamiliar with this type of insurance and either decline it or accept it automatically without knowing if it is the right type of insurance for their needs. As with all insurance, determining need is different from person to person because of our different lifestyles and obligations. Credit insurance may be beneficial to some but just an unneeded cost for others depending on one's situation. Knowing what credit insurance is and the different types can help you make an informed decision.
Credit insurance can come in a variety of forms. The four main types are credit life, disability, unemployment, and property:
- I.Credit life insurance pays off the debt you owe if you die. The beneficiary of the policy has to be the company that the debt is owed to.
II.Credit disability insurance protects your credit rating by making your monthly minimum payment if you become medically disabled. Usually there is a set time period that payments will be made and additional purchases after the disability will not be included.
III.Involuntary unemployment credit insurance will make your minimum monthly payment if you are laid-off or downsized, and again, purchases after the involuntary unemployment would not be covered.
IV.Credit property insurance usually will completely cancel debt on items you purchased with the credit if the items are completely destroyed by specific incidents listed in the policy and a deductible would not apply for the damages to be paid.
2.Know how credit insurance is marketed:
Now that you know a little more about credit insurance it is important to understand how it is marketed or sold to consumers. Usually companies will ask you to purchase it when you sign-up for the credit or in a later telemarketing solicitation. When credit insurance is purchased it is offered free for a specific time and sometimes the company will give you a check to cash into your bank account as an incentive to try out the credit insurance. By cashing the check you are enrolling in the program.
Unlike a lot of insurance plans, credit insurance can start by a verbal "yes" and does not necessarily require a signature so make sure you pay attention to what you are agreeing to or filling out on your credit application.
3.Decide if credit insurance is for you:
Considering your current and future financial needs is the first step in determining if you might benefit from credit insurance. If you already have substantial life and disability insurance policies, it may be possible that you will have enough coverage in those policies to cover your credit accounts due to your death or disability. But, on the other hand, if you don't have any type of life and disability policies that does not necessarily mean credit insurance is the best choice for you.
Credit insurance may not be as cost effective and is certainly not as flexible as traditional life and disability policies. For example, if you have a lot of credit cards you would have to take out a policy on each of those accounts. With all those monthly policies, you may be able to purchase a traditional life and/or disability policy for less and get more coverage, not to mention after your credit balance is paid with a traditional policy your dependants would receive the remaining amount. And, as previously mentioned, with disability and unemployment insurance only the minimum payment is covered and only for a specified amount of time. It is possible that after interest is accumulated from only minimum payments being made that the balance could be larger after the specified time allowed in the policy for payments.
4.Inquire about the credit insurance policies being offered to you:
If you decide that credit insurance is for you it is important to know about the policy your are getting. You will want to ask about what is excluded in the policy. And remember that if you purchase a credit insurance policy that encompasses all 4 types of credit insurance (life, disability, unemployment, and property), make sure you are not paying for something you don’t need. For example, if you are not employed at the time of getting the unemployment insurance you are paying for a coverage that you will not use. Another example would be with credit life insurance. Some policies are limited to age restrictions and the credit insurance sales person will often not ask your age but instead just sign you up for the insurance. Make sure you research all the requirements carefully before accepting the policy.
5.Find out if you can easily cancel credit insurance:
As stated earlier, most credit insurance is on a beginning free trial basis. After the free trial is over you would need to decide if you would want to keep the policy or not. Unfortunately, after the free trial period it may become more difficult to cancel a credit insurance policy. In some cases it is hard to locate the correct phone number to cancel the policy. Contacting the credit card company may not be helpful either since they may not be sure what insurance company may have offered you the credit insurance.
If you do decide to purchase a credit insurance policy make sure when you are purchasing it you get all the information you would need in order to cancel it, and keep that information stored in a safe place with the accompanying credit card information.
Monday, January 26, 2009
15 Insurance Policies You Don't Need
Fear of the future sells insurance. Because we can't predict the future, we want to be ready to cover our financial needs if, or when, something bad happens. Insurance companies understand this fear and offer a variety of insurance policies designed to protect us from a host of calamities that range from disability to disease and everything in between. While none of us wants anything bad to happen, many of the potential catastrophes that happen in our lives are not worth insuring against. In this article, we'll take you through 15 policies that you're probably better off without. (To learn about the basics of insurance, see Understand Your Insurance Contract and Exploring Advanced Insurance Contract Fundamentals.)
1. Private Mortgage Insurance
The infamous private mortgage insurance (PMI) is well known to homeowners because it increases the amount of their monthly mortgage payments. PMI is an insurance policy that protects the lender against loss when lending to a higher-risk borrower. The borrower pays for this insurance but derives no benefit. Fortunately, there are several ways to avoid paying for this unnecessary policy. PMI is required if you purchase a home with a down payment of less than 20% of the home's value. The small down payment is viewed as putting you at risk of defaulting on the loan. Put down at least 20% and the PMI requirement goes away. Alternatively, you can put down 10% and take out two loans, one for 80% of the sale price of the property and one for 10%, although interests rates can prevent the economics of this maneuver from working out in the homeowner's favor. (To read more about mortgages, see Understanding the Mortgage Payment Structure, To Rent or Buy? The Financial Issues - Part 1 and Part 2.)
2. Extended Warranties
Extended warranties are available on a host of appliances and electronics. From a consumer's perspective, they are rarely used, particularly on small items such as DVD players and radios. If you purchase a reputable, brand-name product, you can be fairly certain it will work as advertised and that the extended warranty is statistically likely to be unnecessary. If you spend $5,000 on a giant, flat-screen television, the policy is still unlikely to pay off, but might make you feel better. For everything else, forget it. (To learn more, read Extended Warranties: Should You Take The Bait?)
3. Automobile Collision
Collision insurance is designed to cover the cost of repairs to your vehicle if you are involved in an accident. If you have a loan out on the car, the loan issuer is likely to require that you have collision insurance. If your car is paid off, collision is optional; therefore, if you have enough money in the bank to cover the cost of a new car, collision insurance may be an unnecessary expense. This is particularly true if you are driving an old car, because cars depreciate so quickly that many vehicles are worth only a fraction of their purchase price by the time the loan is paid in full. (To find out more about car insurance, read Shopping For Car Insurance.)
4. Rental Car Insurance
Most auto insurance policies offer additional coverage for the cost of car rentals, touting it as a useful feature if your car is ever involved in an accident and needs to spend some time in the repair shop. This may sound like a good idea, but in reality, most people rarely rent a car, and when they do, the cost is relatively low and hardly worth insuring against. Although rental car insurance is relatively inexpensive, amortized over the course of a lifetime you are still likely to spend far more than you will benefit.
5. Car Rental Damage Insurance
Many auto insurance policies already cover rentals, so there's no need to pay for this twice. Check your policy before you pay. Depending on where you rent the vehicle, you may also be able to pay a small fee for insurance on your rental when you pick it up at the rental center. If this fee is less than what you'd pay for a year in your old policy, choose the fee over the policy. (To read more, see Travel Tips For Keeping You And Your Money Safe.)
6. Flight Insurance
Flight insurance coverage is completely unnecessary. Despite media portrayal, airline accidents are relatively rare, and your life insurance policy should already provide coverage in the event of a catastrophe. (For more information on life insurance, see How Much Life Insurance Should You Carry?, Life Insurance Distribution And Benefits and Life Insurance Clauses Determine Your Coverage.)
7. Water Line Coverage
Water companies have made an aggressive push to sell policies that cover the repair of the water line that runs from the street to your house. The odds are in your favor that you will never use this coverage, particularly if you live in a newer home. If you live an average suburban neighborhood and you do need to repair the water line, the distance to the street is short, the likelihood of a problem is low and repair costs are a few thousand dollars or less. The same goes for policies offered by other utility companies.
8. Life Insurance for Children
Life insurance is designed to provide a safety net for your heirs/dependents. Because children don't have heirs to worry about and, statistically speaking, most kids will grow up safe and healthy, most parents should not purchase life insurance for their kids. Instead, use the money that you would have spent on life insurance to fund an education plan or an individual retirement account (IRA). (To read more on saving money for your kids, see Investing In Your Child's Education, Teaching Your Child To Be Financially Savvy and Don't Forget The Kids: Save For Their Education And Retirement.)
9. Flood Insurance
Unless you live in a flood plain or an area with a history of water problems, don't even bother buying flood insurance. If none of the homes in the area has ever been flooded, yours is unlikely to be the first.
10. Credit Card Insurance
Purchasing coverage to pay your credit card bill in the event you cannot pay it is a waste of money. A far better idea is to avoid running up your credit cards in the first place, so you won't need to worry about the bills. Not only do you not save on the insurance premiums, you'll also save the interest on your debt. (To learn more about credit, see Take Control Of Your Credit Cards, Credit, Debit And Charge: Sizing Up The Cards In Your Wallet and Understanding Credit Card Interest.)
11. Credit Card Loss Insurance
Federal law limits your liability if your credit card is stolen. Your out-of-pocket costs are limited to $50 per card and not a penny more. In fact, many credit card companies don't even try to collect the $50.
12. Mortgage Life Insurance
Mortgage life insurance pays off your house in the event of your death. Rather than add another policy - and another bill - to your list of insurance plans, it makes more sense to get a term-life policy instead. A good life insurance policy will provide enough money to pay off the mortgage and to cover other expenses as well. After all, the mortgage isn't the only bill your survivors will need to pay. (To read more, see Buying Life Insurance: Term Versus Permanent.)
13. Unemployment Insurance
This coverage makes minimum payments on your bills if you are out of work, which sounds like an attractive proposition. A better plan is to save your money and build up an emergency fund instead. You won't have to cover the cost of the insurance policy and, if you are never out of work, you won't spend any money at all. (Find out how to create an emergency fund in Build Yourself An Emergency Fund.)
14. Disease Insurance
Policies are available to cover cancer, heart disease and other maladies. Instead of trying to identify every possible disease that you may encounter, get a good medical coverage policy instead. This way, your medical bills will be covered regardless of the problem you face. (For related reading, see Fighting The High Costs Of Healthcare.)
15. Accidental-Death Insurance
Unless you are extraordinarily accident prone, an accident is unlikely. Major catastrophes such as car wrecks and fires are covered under other policies, as is any harm that comes to you while at work. Accidental-death policies are often fraught with stipulations that make them difficult to collect on, so skip the hassles and get life insurance instead.
When Choosing Insurance
There are so many policies to chose from, and they all cost money. While a certain amount of insurance coverage is necessary and prudent, you need to choose carefully. In general, broad policies that offer coverage for a multitude of potential events are a better choice than limited-scope policies that focus on specific diseases or potential incidents. Before you buy any policy, read it carefully to make sure that you understand the terms, coverage and costs. Don't sign on the dotted line until you are comfortable with the coverage and are sure that you need it.
To read more, see Five Insurance Policies Everyone Should Have.
Insurance Tips For Homeowners
Homeowners' insurance isn't a luxury, it's a necessity. In fact, most mortgage companies won't make a loan or finance a residential real estate transaction unless the buyer provides proof of coverage for the full or fair value of the property (most of the time this is the purchase price). In this article, we'll show you some simple actions you can take to make sure your homeowners' insurance is sufficient for your needs. (To learn more about insurance, see Understand Your Insurance Contract, Exploring Advanced Insurance Contract Fundamentals and Fifteen Insurance Policies You Don't Need.)
Homeowners' insurance can be very expensive. Those that live in high-risk areas such as close to major waterways, known earthquake fault lines or other high claims areas will pay the most for coverage. In fact, those in high-risk areas are often forced to pay annual premiums in the many thousands of dollars. But even homeowners in relatively sedate, suburban neighborhoods (with property values around the national average of $210,000) could pay between $500 and $1,000 a year for a basic policy.
In Pictures: 10 Insurance Tips For Homeowners
The good news is that although you can't (and shouldn't) avoid purchasing homeowners' insurance, there are ways to minimize the cost. (To find out more about homeownership, see A Tax Primer For Homeowners, Fix It And Flip It: The Value of Remodeling and Mortgages: How Much Can You Afford?)
Here are six ways to make sure you get the right coverage and consequent compensation for your home:
1) Maintain a Security System and Smoke Alarms: A burglar alarm that is monitored by a central station, or that is tied directly to a local police station, will help lower the homeowner's annual premiums, perhaps by 5% or more. In order to obtain the discount, the homeowner must typically provide proof of central monitoring in the form of a bill or a contract to the insurance company.
Smoke alarms are another biggie. While standard in most modern houses, installing them in older homes can save the homeowner 10% or more in annual premiums. Of course, even more importantly, in case of fire, they could save your life!
2) Raise Your Deductible: Like health insurance or car insurance, the higher the deductible the homeowner chooses, the lower the annual premiums. However, the problem with selecting a high deductible is that smaller claims/problems such as broken windows or damaged sheetrock from a leaky pipe, which typically will cost only a few hundred dollars to fix, will most likely be absorbed by the homeowner. (To read more about deductibles, see Shopping For Car Insurance, Fighting The High Costs Of Healthcare and Tax Deductions For Rental Property Owners.)
3) Look for Multiple Policy Discounts: Many insurance companies give a discount of 10% or more to their customers that maintain other insurance contracts under the same roof (such as auto or health insurance). Consider obtaining a quote for other types of insurance from the same company that provides your homeowners' insurance. You may end up saving on two annual policy premiums.
4) Plan Ahead for Construction: If the homeowner plans to build an addition to the home or another structure adjacent to the home, he or she should consider the materials that will be used. Typically, wood-framed structures (because they are highly flammable) will cost more to insure. Conversely, cement- or steel-framed structures will cost less because it is less likely to succumb to fire or adverse weather conditions.
Another thing that most homeowners should, but often don't, consider is the insurance costs associated with building a swimming pool. In fact, items such as pools and/or other potentially injurious devices (like trampolines) can drive annual homeowners' insurance costs up by 10% or more. This may seem like a small price to pay given the joy these items bring, but it is still something that should be considered by the homeowner prior to purchase or construction.
5) Pay Off Your Mortgage: Obviously this is easier said than done, but homeowners that pay off their mortgage debts will most likely see their premiums drop. Why? The simple reason is that the insurance company figures that if you own the home outright, you'll take better care of it.
6) Make Regular Policy Reviews and Comparisons: Investors should, at least once per year, compare the costs of other insurance policies to their own. In addition, they should review their existing policy and make note of any changes that might have occurred that could lower their premiums.
For example, perhaps the homeowner has disassembled the trampoline, paid off the mortgage, installed a burglar alarm or installed a sophisticated sprinkler system inside his or her home. If this is the case, simply notifying the insurance company of the change(s) and providing proofs in the form of pictures and/or receipts could significantly lower insurance premiums.
Look for changes in the neighborhood that could reduce rates as well. For example, the installation of a fire hydrant within 100 feet of the home, or the erection of a fire substation within close proximity to the property may lower the homeowner's annual premiums.
Additional Items
The following are characteristics that all homeowners' insurance policies should carry:
- Guaranteed Replacement Value Insurance: All homeowners should buy "guaranteed replacement value" homeowners insurance. This means that their home will be rebuilt in the event of a disaster - no matter what the cost. Of course, many of you may be thinking that this is what would happen anyway, right? Wrong. Because home values have increased substantially in recent years, it probably costs more to build a house than when you originally purchased your home and your insurance policy. The good news is that guaranteed replacement value policies will absorb the increased costs and provide the homeowner with a cushion if construction prices increase.
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- Endorsements: Legally speaking, an endorsement is an amendment to the basic homeowner's policy. Practically speaking, it is a way for homeowners to ensure that their high-priced possessions will be insured in the event of a disaster.For example, a woman wanting to insure her diamond engagement ring would obtain an endorsement to her homeowners' policy in order to prove not only that she owned the ring, but also its value. She would do this by obtaining a formal appraisal of the ring from a jeweler, and then sending the appraisal to the insurance carrier for special notation on the insurance contract. Formal endorsements such as these will help in the claims process and ensure that the homeowner gets the full dollar value of the item if it is lost, stolen or damaged in a disaster. Typical items that are endorsed in addition to jewelry include furs, antiques and collectibles.
To avoid any discrepancies and any delays in receiving your insurance money for your home, make sure you document everything. Photograph and videotape the entire contents of your home and the home itself. Then store these photos and videotapes in a fireproof box. In addition, consider storing a copy of the photos at a relative's house, and/or in a safety deposit box. Doing this will help homeowners compile an inventory of their possessions (which is what the insurance company will demand) after a disaster. It will also, by extension, dramatically shorten the length of the claims process if a disaster does occur.
Homeowners' insurance is a necessity. There are ways to save money, but there are also some features that homeowners shouldn't skimp on. Make sure you know the difference.
