Showing posts from April, 2022

Low insurance deductibles often cost more than they are worth

Credit: The National Association of Insurance Commissioners defines “deductible” as “Portionof the insured loss (in dollars) paid by the policy holder.” Low deductibles may well be costing you more than they are worth in two ways: 1) The difference between a $500 and a $1000 deductible is, well, $500. If you go several years without filing a claim, you might pay more than $500 in premium to save yourself that $500 at claim time. 2) Raising your car deductibles from $500 to $1000 and your liability & uninsured motorists’coverage from 100k/300k to 250k/500k oftentimes results in an absolutely negligible difference in premium. Sometimes it even SAVES you money. That same amount of premium can buy you either $500 in coverage or $250,000 in coverage. Which is a more prudent use of your money? You may not like me for a few days after a hailstorm or a fender bender in a parking lot. However, as an attorney friend of mine likes to say, you should insur

When you shop for car insurance ALWAYS look at house insurance and vice versa

Car and house insurance are never standalone products. When shopping for one you ALWAYS want to shop for the other. There are three reasons for this. 1)       1. Bundling auto and home insurance almost always saves money. 2)       2. Car insurance IS house insurance. Most people don’t know – and too many find out the hard way – that if you are ever in a serious accident and your liability limits are insufficient, you WILL be sued personally. You could very well lose your house. And if you don’t own a home, your wages could be garnished for years. 3)       3. Most people also have no idea what uninsured and underinsured motorists’ coverage means. And if you are ever hit by such a driver and, for instance, can’t work for two years, you could be left high and dry financially ... even though you are not at fault . Again, you could wind up liquidating assets – e.g., your house – in order to stay afloat. Car insurance is one of the most important components of your financial pictur

If you're even THINKING of doing something new, DISCUSS IT WITH YOUR INSURANCE AGENT

  A few weeks ago, a client and a long-time friend called to let me know about a slight modification he had made to his house. While I recommended that we leave things the same on his policy, I am glad he called. Had the details been different, I might have recommended that we make appropriate policy changes. Just the other day, I was talking with a remodeler and handyman. We were looking at a really cool outdoor playground equipment set similar to the one pictured below. I told him to check with his insurance agent because, to the best of my knowledge, insurance to cover his liability was both very pricey and hard to obtain. Credit: If you’re even THINKING about doing something differently than before, you NEED to call your insurance agent. Failure to do so might result in the denial of a claim and/or cancellation of your policy. Are you considering: ·          Doing a significant remodel on your home? ·          Adding solar panels? ·          Renting out a r