What you need to know about insurance
Tuesday, October 12, 2010
Home Insurance
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As entrepreneurs, we tend to spend so much time focused on our business that anything not directly related to that gets shoved onto the back burners. But, if paying a little more attention to something on the home front can save us money, doesn’t that help our business as well? This article provides a number of different ways that you can use to save on the cost of your home insurance. It’s expensive, but we all need it, so how can we make the most of our money? Read on.
First of all, it’s important not to simply buy the first package you hear about. Your Uncle Marty who has been working at that insurance company down the road for fifteen years might not actually be offering you the best rate quotes available. Shop around. Check with a number of different companies to see what’s available. Ask your family and friends what policy they have and if they are satisfied with it. Also, check with your auto insurance company; often, companies will offer discounts if you buy more than one package with them.
Second, as most experts will advise you, try to raise your deductible as much as possible. This is the amount of money you can afford to pay yourself toward any losses before your insurance company is forced to step in. While house deductibles typically start at $250, increasing it to upwards of around $5,000 can save you more than 35 percent on your premiums. But, make sure you only go as high as you can afford.
Third, it’s important to keep home insurance in the front of your mind at all times. Even when you first go to buy a house, you need to be thinking about how much coverage it will require. Is the house newer and therefore in better condition? Is it on the coast, which could result in floods or wind damage? These are all the sorts of things you need to keep in mind when buying a house.
Finally, try and look for ways to save wherever you can find them. Will your insurance company offer a discount if you install a sophisticated home security system? Does your company or any associations you may belong to have any deals with insurance companies for group discounts? Will your premiums go down the longer you’ve been with the company? Are discounts offered for senior citizens? If you think there may be a way to save, it never hurts to ask just in case.
Your coverage policy is something you should evaluate on a yearly basis. The protection you had last year might be too much – or not enough – for what you need today. That additional floor you built last year, or that valuable golden statue you recently sold from in the hallway, will no doubt change the amount of coverage you need.
Buying the right home insurance can be a tricky process. One final simple tip: stop smoking. More than 23,000 house fires every year are caused by smoking accidents, and insurance companies know it.
Car Insurance
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Trying to find an alternate route to work when nearly 280,000 other commuters are scrambling to find their way into the city can definitely increase the odds of getting involved in a fender-bender. San Francisco Bay area interstate travelers will be the first to tell you that you cannot predict accidents or catastrophes. Whether you are involved in a natural disaster, auto accident or other catastrophe, insurance plays an important role in securing your funds for the future. Californian or not, it’s always important to see what auto insurance coverage your state suggests or requires.
There’s a long stretch of road between Redding and San Diego, California – which means many opportunities for unexpected auto accidents to occur. The Bay Bridge between Oakland and San Francisco, for example, is a hotbed of confusion and congestion that travelers are trying to navigate and conquer.
Between the excitement of summer and trying to secure your vacation plans, preparing for an auto disaster is probably the last thing on your mind. But the summer heat and unexpected bumps in the road can both wreak havoc on your auto and put you in jeopardy if you’re not prepared. If something happens while you’re driving down that long California interstate, are you covered? Let’s sift through your car insurance policy to consider your options:
What coverages are included in an auto insurance package?
When you purchase auto insurance, you usually have several options – you can purchase medical, liability, property and under/uninsured motorist coverage.
Medical coverage in an auto insurance package will take care of treating injuries to those in the policyholder’s automobile. Medical coverage will be provided if the person is a passenger or hit as a pedestrian.
Liability is your financial responsibility to someone for damage you cause – whether the damage is to another person or to someone’s property. When you purchase liability coverage, the insurance company agrees to defend you in court and/or reimburse the other party for damages you cause.
California state laws require motorists to purchase the following liability insurance amounts.
$15,000 - bodily injury liability for one person injured in an accident
$30,000 – bodily injury liability for all injuries in one accident
$5,000 – property damage liability for one accident
Covering property damage includes comprehensive and collision insurance.
Comprehensive coverage insures accidental damage to the auto including fire, wind, sleet, theft, vandalism and similar damages.
Collision coverage reimburses for damage caused by colliding with another object, regardless of who or what is at fault.
What happens if the person that hits you is uninsured or does not have proper coverage to take care of your entire loss? Purchasing uninsured and/or under insured motorist coverage will cover both of those situations.
If you have not glanced through your auto insurance policy in awhile, it’s time to consider reviewing it. The warm summer weather means your air conditioning will be running longer and your engine will be working harder. It’s important to take time right now and make sure you will be covered if you find yourself stuck on that long stretch of California road between Redding and San Diego.
