Types of Coverage

The types of coverage required vary from state to state but it is important to know the difference.  Although insurance companies within each state have various policy coverages, it is good familiarize yourself with the language.  It is hard to remember what each of the different types of coverage means.  I hope that you will find this little cheat sheet helpful.  Next time an insurance agent starts talking to you, you might be able to follow.  Check out your prospective insurance company website for more information.

Collision – This portion covers your vehicle in case of an auto accident.

Comprehensive – This covers your vehicle in case of certain other incidents not related to auto collisions.

Liability – This covers bodily injury of others that occurs during a collision.

Medical coverage – This covers auto accident related medical expenses no matter who is at fault.

PIP – This covers medical expenses for insured driver.

Rental Reimbursement – This covers car rental expenses in case of an accident.

Uninsured Motorist – This covers car damages in case of an auto accident with a motorist without liability insurance.

Underinsured Motorist – This covers car damages in case of an auto accident with a motorist without full liability insurance.

The Wonders of Home Insurance

Home insurance can cover so many things, including covering you if you get hurt in an auto accident.  If you currently own your home, chances are good that you are either paying too much or not enough.  The direction usually depends on a few factors, like the age of your policy.  If you bought your policy five years ago, it is time to look again.  Here are some common factors that can cost you thousands either today or tomorrow.

Inflation

Has your real estate property climbed in value, or perhaps construction costs have risen since your last policy?  Chances are it will cost you more to replace or rebuild your home today than it did 10 or even 5 years ago.

Renovation

Doing any type of major home renovation can increase the value of your home.  This is great if you are selling but will you be sufficiently covered in case of fire? Revisit your policy if you have done any renovations

Hazard insurance

If even an inch of your home lies within a flood zone, you have to pay extra for hazard insurance.  But zones can change over time and it is your responsibility to check on your home’s status.

Natural Disaster

You may think flood, wind or earthquake damage is covered in your policy but did you ever ask?

Choosing Home Insurance

Most people say that since different companies have different options, you should find a good company and then pick from the options available.  Your insurance company will be with you for the life of your loan so choosing the right one is important.  Nevertheless, it is just as important to identify your needs before you compare insurance companies.

Ask yourself 5 questions before pricing policies:

1. How much money can I afford a month?

Before seeing what is out there, see what is in your budget.

2. How much money do I have saved for deductibles?

If you do not have savings, then do not try to save money by getting a high deductible you will not be able to meet.

3. What valuables do I have?

The more you list, the higher the cost.  Write down the material goods you would want replaced.

4. How much are they worth?

Take the time to do research and get an accurate account.

5. What other insurance do I need/want?

Before outside forces push you into something you do not need or want, take the time to think about it.  Getting other insurance can only save you money if you were going to buy it anyway.