Home Owner's

Miscellaneous Home Coverage

There are several different types of additional home coverage that you may wish to investigate. First, there is what's termed Umbrella Liability insurance. With the large number of lawsuits being filed today, and the high amounts that many courts are awarding, for many families, conventional coverage is not longer sufficient. Umbrella coverage takes over where one's homeowners' coverage leaves off. It can be used to increase your coverage to $1 million dollars or more. Another type of insurance coverage that is also available is earthquake coverage. Earthquake coverage is generally not included in the standard protection policy. It's usually available, however, for an additional cost from your homeowners' insurance company. The cost will differ depending upon the area in which you live and the corresponding risk that the insurance company will have to assume. The last type of additional coverage that you, as a homeowner might want to look into is flood insurance. Compensation for losses resulting from flood are also not included within the basic homeowners' policy. Depending upon the area that you live, this coverage may or may not be sold by your homeowners' insurance company. For those outside coverage areas, the government does provide federal flood insurance, and your agent should be able to provide details on how to obtain information on this program. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Injury Coverage

Suppose your dog was to bite the child next door, or one of your neighbor's was to trip and fall down your stairs. Do you know that you would be responsible for the damages and any and all medical expenses incurred? Your homeowners' insurance provides coverage for occurrences such as these with personal liability insurance. This coverage will pay any legal fees in the event of a lawsuit up to the state limit written into the policy for damages assessed against you or another family member. The minimum liability coverage is usually $35,000 but larger amounts are available. Your homeowners' policy also covers medical payments for minor injuries, usually up to a $500 limit which may occur either on or off your property. This insurance is good regardless of which party is at fault. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Property Coverage for House and Property

The most complete property coverage for your house is a form of replacement coverage. This coverage is usually equal to the cost of completely rebuilding your home in the event of a total loss. This should not be confused with the market value of your home. This coverage is preferable to homeowners' insurance which reimburses for losses only on the basis of actual cash value. The problem with the actual cash value basis is that it takes into account the mount of depreciation on the damaged item from the time it was new. In other words, you would receive less than it would cost to rebuild your home. Your home should be insured up to 80 percent of its replacement value or the cost of rebuilding it. You only need to insure 80 percent because it is unnecessary to insure the land or foundation which is typically 20 percent of the total property value. It is important to understand that under most policies, the coverage you have on your home directly affects the amount of protection you have on your contents. Usually, your personal property is covered up to half the value for what your home is insured for. One last item you should discuss with your insurance agent is whether or not your policy has a clause which will allow for inflation. Over a period of time, inflation can considerably add to your homes' replacement cost and although you will pay more to include this in your policy, the increase coverage is well worth the expense. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Property Coverage for Content

The amount of coverage you have on your home is usually directly proportional to the amount of protection you have on its contents. Typically, your contents are covered up to half of the value for which your home is insured. For example: if your home is insured for $100,000, your contents would be covered up to $50,000. When deciding how much coverage you need on your contents, it is important to first take an inventory of all your household items. Start a room at a time and record the name of the item, the approximate value and the purchase date. Be as specific as possible, especially on the more valuable items. You would also prove beneficial to take pictures or even videotape individual pieces of particular value. Be sure to get an appraisal of any items which may appreciate. Total the value of your items on your inventory list. This should be a relatively good assessment of the value of your household belongings. Don't forget to check your list occasionally and update any new purchases. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Why Have Homeowner Insurance

For most individuals, the purchase of a home is the single biggest investment of their lifetime. Accordingly, it only makes sense to protect that investment and the contents thereof, which usually are at least sentimentally, if not, also monetarily valuable. Actually, one would probably be very surprised to find out the total worth of their possessions. It is usually more than one might imagine. Homeowner insurance generally protects against loss due to fire, theft, smoke, vandalism, and/or accident for which the insured is responsible. Depending on the form of homeowner coverage you purchased, and there are basically only three different types, you could be protected for up to 18 different perils recognized by the insurance industry. These would include nearly every disaster except flood, earthquake or nuclear war. All individuals need to protect themselves against property loss, few of us could financially afford the loss or severe damage of our home. Homeowner insurance can protect you against this possibility. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Business

General Business Coverage

General Liability Coverage provides protection for the legal fees and judgements against your business due to negligence which may have caused bodily injury or property damage. The losses could be the result of someone's injuries using your product or product you sold or property damage caused by your services or completed job. The cost of this coverage is based on the type of product or service you provide, the amount of your sale, or payroll.

Property and Equipment

If you own or lease equipment or own a building, insurance helps to protect you in the event of a loss. Property and equipment coverage can provide protection for your building, inventory and equipment that you own or lease in the event of a loss caused by such things as wind, theft, lightning, or collapse, your building or equipment will be replaced or repaired. This coverage can be expanded to include the property of others. The cost of the insurance is generally based on the amount of coverage you need and the kind of protection against loss that you have in place, such as burglar alarms and sprinkler systems.

Benefits for Business Insurance

Financial loss to your business can occur from many sources including such things as natural disaster, fire, debt or injury to an employee or customer. What can be done to protect your business from these disasters is to develop a business insurance program just for your business. Business insurance protects your investments in buildings, equipment, inventory and your employees too. In an event of a loss, your insurance helps you to recover the cost or keep in business. It provides you with peace of mind so you can concentrate on the important things, like operating your business.

Employer Health Insurance

Today, it is very hard to attract and maintain a good qualified work force in any business when your consider that an employee is as much of an investment as the other assets of your business. It becomes evident that you should provide them with the protection that they and their family need and deserve. Most insurance companies will be more than happy to sit down with your and discuss the various types of life and medical options that suit your particular business needs. Remember, consideration of your business needs is not a subject to take lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

Worker's Compensation

Operating a business is a tough job, but operating without the proper insurance coverage is not only risky, but may be against the law. Worker's compensation is required by most states. It provides the medical treatment costs, and partial lost wages to your employees if injured on the job. The coverage must be provided for everyone on your payroll. The cost of the coverage is based on the type of work performed and the amount of the payroll. There may be sever penalties for employers who may operate without this coverage.

Liability Coverage

Nobody likes to think about them, but accidents do occur at most businesses, regardless of the safety precautions taken. Suppose a customer falls down the stairs, or a crate falls on an employee's head. Would your company be in a position to pay for medical expenses and the judgement awarded by the court? Liability insurance is the only way to avoid the unnecessary risks associated with unforeseen incidents. Also, the liability coverage will cover you for suits filed for liable or slander. Talk to your insurance agent about designing a policy that will address your particular needs.

Health

Types of Health Insurance

There are many different types of health insurance programs, but they can be divided into basically three types of medical expense protection. The first type of protection is called conventional health insurance and generally provides for hospital, surgical, medical, major medical, comprehensive, catastrophic and dental plans. This insurance is provided by commercial insurance companies, independent organizations, Blue Cross and Blue Shield. Rates depend on which plan you buy into, the level of coverage you and your employer chooses, and whether you purchase individual or family protection. The second basic type of health protection is the prepaid health care plans. The major providers consist of HMOs or Health Maintenance Organizations, and PPOs or Preferred Provider Organizations. These are groups of doctors, hospitals and other health care professionals who have joined together to provide members with prepaid medical care. Instead of paying a premium, each member pays a flat monthly or quarterly fee. The last type of health insurance available is government health plans. These include Medicare and Medicaid. They are both federally funded, while the latter is administered by the state. Check with your local offices to see if you qualify. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

Employer Requirements

Most families don't have much choice in the medical plan they purchase. Many subscribe to whatever plan is offered by the wage earner's company. This is usually the easiest and least expensive form of protection. Where both spouses work, it's to your benefit to examine both plans before making a decision. Your employer, however, may choose the level of coverage you may receive. Several advantages to this type of coverage are that the premiums are often deducted directly from your paycheck, and your coverage can not be terminated regardless of the number of claims you file. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

How to Check Your Coverage

There are several questions which you must answer when checking your health insurance coverage: Does your insurance provide coverage for only a specified amount per day, or does it cover usual customary costs? Does the plan cover pregnancy? For the unmarried, or only insured and/or spouse? Does it cover newborns from birth? Does it cover hospital costs for as long as the injured needs treatment? Does it exclude coverage for specified illness or accidents? How long does it cover the insured's children? Does it pay for outpatient treatment and/or emergency treatment? Is there a time limit on submitting claims? There are many other questions in addition to these basic ones that you should check into when evaluating your insurance coverage. Check with your insurance agent or company office if you need any of these or other questions answered. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

Social Security and Disability

Social Security Health coverage consists of several parts of the Medicare Health Insurance program. Part A is for the hospital insurance and is financed through social security taxes. It's available at no cost to those eligible for social security. Part B is voluntary supplemental medical insurance. It is deducted in monthly premiums from your social security check, and all social security recipients are automatically enrolled until such time as they officially withdraw from the program. For additional information on Medicare coverage, contact your local social security office. A good rule is to contact your local office at least two or three months before you turn age 65 to apply for Part A. For most individuals, the loss of a paycheck either permanently, or for an extended period of time, would be financially devastating. In addition to this, when you become unable to work because of an injury or illness, very often you will require expensive medical care. It becomes very important that you have disability income insurance. There are several things to look for in a good disability insurance policy. The monthly benefit should equal approximately 60 to 70 percent of your gross pay. Choose a waiting period as long as you can afford to wait for the benefits to begin. This will substantially cut your premiums, and a good plan will pay when you are unable to work at your regular occupation, as opposed to any occupation. Make sure that you are covered for both accident and sickness. Choose non-cancelable renewal. There are other questions on types of disability insurance that you will find helpful to discuss with your insurance agent. Remember, this information is not a substitute for the advice of an insurance professional.

Supplemental Insurance

Part B of Medicare provides for supplemental medical insurance. It provides for doctor services, inpatient and outpatient services and supplies, home health care, physical and speech therapy, ambulance services, and unlimited home visits by skills nurses. You are automatically enrolled in the program unless you officially withdraw and the monthly premiums are deducted from your social security check. Although you must pay the difference between the 80 percent of Medicare Supplemental Insurance coverage and what you are charged, many doctors agree to accept the amount approved as paid in full. You may also be able to purchase supplemental insurance from your own insurance company depending on your age and physical health. For details, check with your insurance agent about your company and what it has to offer. Accordingly, this information is not a substitute for the advice of an insurance professional.

Do You Need Long-Term Health Insurance

Long-term health insurance provides coverage for nursing home care and in-home care. There are currently around 100 companies nationally that offer this type of insurance. Premiums and benefits vary widely. Some policies only pay for care that is medically necessary. A good policy will not only cover nursing home care, but also home care and community services. Some policies will only pay if the patient comes directly out of the hospital to the nursing home or home care. In this case, Alzheimer's and dementia persons might not be covered. Since these disabilities also leave people unable to care for themselves, it's important that the policy cover their needs without an immediately preceding hospital stay. The policy should also provide for inflation protection. These policies are not inexpensive, however, the earlier you start, the lower your rate will be. According to the Health Insurance Association of America, the average age that the most people buy long-term insurance is 69. The average annual premium for a policy is $1,500. Before your purchase a policy, check with your attorney or financial advisor. You might also check with AARP to see what they offer. And, you can also consult the United Seniors Health Cooperative, 1311 "H" Street NW, Washington, D.C. 20005-4706.

Life

Who Needs Life Insurance?

Many people need life insurance for many different reasons. Life insurance is a unique asset which is used to solve many of life's perplexing problems. It can be used to create an estate, when time or other circumstances have kept the owner from accumulating sufficient assets for his or her loved ones. Today's death taxes and other estate settlement costs to fund a business transfer, often business owners agree to buy a deceased owner's share from his or her estate after death. Create a college fund for children or grandchildren, as cash value increases on a policy on the life of a minor. It can be used as funds for college. Many people would like to pass the family residence to their spouse or children free of any mortgage, retirement fund. Current insurance products provide an excellent return on one's investments and are a prudent way of accumulating necessary funds for the retirement years. Because there are so many types of life insurance policies, it may be wise to consult with your agent to decide which bests suits you.

How Much Insurance Do You Need?

When you buy insurance you want a policy that fits your needs without costing too much. Your first step is to decide how much you need, how much you can afford to pay, and the kind that you want, then find out what various companies charge for that kind of policy. If you're going to make a good choice when you buy life insurance, you need to understand which kinds are available. If one kind doesn't seem to fit your needs, ask about the other kinds available. One way to decide how much life insurance that you might need is to figure out how much cash and income your dependents would need if you should die. Life insurance is a source of cash needed for expenses of final illnesses, paying taxes, mortgages, or other debts. It can also provide income for your family's living expenses. Your new policy should come in pro cause you can't afford to, making up the difference between what your dependents would have if you were to die now and what they would actually need.

Term Insurance

Term Insurance is death insurance for a term of one or more years. Death benefits will only be paid if you die within the term of years specified within the terms of your policy. Term insurance generally provides the largest immediate death protection for your premium dollar. Some term policies are renewable for one or more additional terms, even if your health has changed. As a rule, each time you renew the policy for a new term, your premiums will be higher. You should check the premium at older ages and the length of time that your policy can be renewed. Some term policies are often convertible. This means that before the end of the conversion period, you can trade the term policy for a whole life policy or endowment policy, even if you're not in good health.

Whole Life or Cash Value Policies

Whole Life Insurance provides death protection for as long as you live. The most common type is called straight life or ordinary life insurance for which you pay the same premiums for as long as you live. These premiums can be several times higher than you would initially pay for the same amount of term insurance but they are smaller than you would eventually pay if you were to keep renewing a term insurance policy until later years, although you pay higher premiums to begin with for whole life insurance than for term insurance. Whole life policies develop cash values which you may have if you stop paying premiums. You can generally take the cash or use it to buy continuing insurance coverage. The amount of the cash value benefits, depends on the type of policy that you have, its size, and how long you've owned it.

Universal Life Policies

Our changing financial climate has set the stage for many new insurance products due to intense competition for investment dollars and fluctuating inflation and interest rates. Flexible death benefits and premiums have made their appearance. Universal Life Insurance should not be thought of as being right for a combination of other coverages. It's a contract in its own right, with its own advantages and disadvantages. Universal Life is a flexible premium adjustable benefit Life Insurance contract that accumulates cash values. Universal Life allows an insured party to increase or decrease premiums and death benefits without having to buy another policy. However, when increasing the death benefits, he or she might have to prove insurability.

Single Premium Life Insurance

Single Premium Life Insurance can be paid for with only one premium that's the term single premium life insurance. The premium for such a policy may be thousands of dollars, but in spite of the cost, many persons prefer this method for the same reasons that they prefer to pay for other major purchases all at once and up front. The advantage offered by a Single Premium Policy is that the policy owner will pay less for the policy than if the premiums were stretched out over a period of several years.

Re-evaluate Your Life Insurance

When is it important to re-evaluate your life insurance? When you've purchased your current life insurance policy, it was because the insurance would provide funds to fulfill a specific need. But as we all know, our need change. Have you had any additions to your family? Are you currently living a higher standard of living than you were when you bought your policy? Has inflation eroded your life insurance protection? If you have questions on whether or not this may apply to you, it may be a good idea to evaluate whether the plan that you are paying for now currently serves the needs of you and your family. Make sure that your family receives the advice needed to get the maximum benefits from your policy in the event of your death.

Automobile

Reasons for Automobile Insurance

There are several reasons, if you own or drive a car, for you to have automobile insurance. First, with the average cost of a vehicle being as expensive as they are today, few people can afford to replace one without some financial difficulty. Secondly, cost beyond replacement of one's own automobile can also be very expensive. If you are found liable in an accident, the burden that you may become responsible for could include repair of any other auto involved in the accident, any other property damage, as well as the medical care of anyone injured. In addition to this, if someone were to be permanently injured or killed because of your carelessness, you could also be sued by the injured party or their family. If you were to lose the judgement, you would be responsible for paying legal costs as well as any damages awarded by the court without consideration of it, and how much liability coverage you carry. Finally, most states now have some form of compulsory insurance laws. These laws require drivers to prove they can pay up to a certain amount in case of an accident, typically $25,000 per person and $50,000 per accident. Many sates will not even issue license plates if a car owner does not have liability insurance. If you are involved in an accident without insurance, and can not pay the minimum, punishment in most states is loss of your driving privilege. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Coverages Required by Law

Most states have financial responsibility or compulsory insurance laws. These usually require a driver to prove he can pay up to a certain amount in case of an accident. Typically, these amounts are $25,000 per person and $50,000 per accident. Most people can guarantee payment only if they have insurance coverage. It is important to note that even if your state requires a minimum amount of personal injury liability insurance, it is probably too low to cover all of your potential losses. Insurance experts recommend the average driver to carry $100,000 per person and $300,000 per accident. If you have much to lose, you should consider getting even more insurance and possibly checking into an Umbrella Liability policy. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Personal Property Coverage

Personal Property coverage is insurance which pays for the repair of damages caused by your car to another's property, and for the legal fees you incur as a result. Another's property usually turns out to be another automobile. This coverage, though, also applies to public and private property such as road signs, bridges or building, up to the limit written into the policy. Most experts in the insurance industry agree that you should have at least $50,000 worth of coverage for personal property. However, expenses could easily approach or surpass this limit when one considers the high cost of replacing an automobile and the costs associated with replacing or repairing road structures or buildings. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Coverage for Third Parties

Injuries to a person, or their property, caused by another individual driving your automobile with your permission is included in most personal injury, personal property coverage. There are, though, several things to keep in mind: First -- regardless of the driver, the insurance will still only cover up to the limits written into the policy. The insured driver of the automobile will become personally liable for any injuries or damages as a result of judgements above these limits. Second -- accidents caused by third parties still could against the insured driver's record. You then become more of a risk to the insurance company, and in order to keep the cost of coverage down for everyone, you will in all probability end up paying more for your insurance at renewal. Third -- it is also within the companies' rights to cancel the coverage of a person who becomes too great of a risk. And last -- there are several exceptions to the coverage of third parties. The declaration portion of your policy will be more specific, but generally damages caused when your automobile is being used as a public or delivery vehicle, or damages caused while your automobile is being driven by employees of a garage, parking lot or auto sales agency, are not covered.

How to Buy Insurance

There are basically three steps in buying automobile insurance: First -- you should shop around. Not all insurance rates are the same. Before you shop, however, you should already have some idea about what kind and amount of coverage you need. Liability protection should be the highest priority. Most experts agree that you should carry at least $100,000 per person and $300,000 per accident, and $50,000 worth of property damage. You should be aware that doubling your liability will result in only slightly higher premiums, so don't be afraid to protect yourself. If you finance your car, the lending institution will probably require that you have both collision and comprehensive coverage. If they include this cost in your payment, be sure to find out exactly what kind of coverage you have before you have an accident. Also, be aware that you have the right to purchase your insurance from an outside agent of your own choice.

How is Your Insurance Rate Determined

Insurance rates depend on many factors. In fact, the cost of identical car insurance can vary as much as 100% in the same state. Insurance companies charge applicants according to an assessment of the potential degree of risk that an individual presents. In most states, the following are considered: * Your age, sex and marital status play a very important part. If you are between the ages of 16 and 25, you will pay more than older drivers because that age group tends to have more accidents. The same is true of males as opposed to female drivers, and unmarried as opposed to a married driver. * Your driving record also plays a big part in determining costs. Drivers who have had more than an average number of accidents or traffic violations will definitely pay a higher premium than drivers with a clean record. * What kind of car you drive; the make, model and year are additional factors which can affect premiums. The more it will cost the insurance company to repair or replace your vehicle, the more they will have to charge you. Sports cars will also require increased premiums because they are more often stolen, and frequently sustain more damage in accidents. * The last major factor that determines how much you will pay includes where, how often and how far you will drive your automobile. City drivers will pay more than drivers in rural areas. Every day drivers will pay more than those who use their cars strictly for pleasure, along with those who can substantially decrease their annual miles driven. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for advice of an insurance professional.