My Insurance Never Told Me That!
My Insurance Never Told Me That!
My Insurance Never Told Me That! Homeowners and property owners across the nation often find out nasty truths about their insurance policies after the fact. They may hear statements such as "Firearms aren't covered," "Any jewelry over $500 in value isn't covered unless you purchased an endorsement," "Water damage from natural floods isn't covered," "We don't insure against sewage backflows," and "Yes, your regular deductible is $500, but your hurricane deductible is $30,000." Don't become a victim of a catastrophe and a victim of your insurance company! Finding out that your insurance policy isn't adequate after a loss is devastating, both emotionally and financially. Most of what you need to know is written directly in your insurance policy. Unfortunately, reading insurance policies isn't fun, nor is it easy. Your insurance policy is likely loaded with legalese and exclusions. Depending on where you live, your state may have specific requirements and restrictions, too. So, how do you avoid "My insurance never told me that" syndrome? You'll need to spend some time reading the policy, looking up what the terms mean, inventorying your belongings, exploring your state insurance commissioner's site, and asking questions of your insurance company. It's not fun, but it is informative. And, it could save you a lot of grief when a disaster heads your way. Reading the Insurance Policy
Go through your policy and read it. What is specifically covered? What is specifically NOT covered? Write these down on a sheet of paper in columns labeled "covered" and "not covered." For items that are covered, what are the policy's limits? Write these down. Pay special attention to items such as jewelry, furs, firearms, fine art, collections, electronics, and cash because these often have small limits placed on them. For example, your policy may only cover $500 worth of jewelry or $100 in cash. If you're wearing a $24,000 diamond ring and enjoy collecting coins, you'll need to purchase additional coverage for your jewelry, cash, and coin collections. Look at flooding and earth movement coverage. These are most likely not included in your policy. If you live in an area (or even if you don't) that has a history of flooding, earthquakes, landslides, volcanic eruptions, or other hazards specifically excluded by your insurance policy, you may want to consider purchasing flood, earthquake, or supplemental insurance policies. While you're at it, write down your deductible amounts and check to see if you have a different deductible for hurricanes, windstorms, and other catastrophes. Write these down as well so that you're aware of these amounts. Depending on your state, these deductibles may or may not be regulated. Make sure that your policy limits are adequate for rebuilding your home and replacing its contents. Does your policy include an inflation adjustment so that you're covered even when building costs go up? Does your policy replace damaged items based on actual cash value or replacement cost? If your policy replaces items based on actual cash value, your damaged goods will be depreciated. While you may have paid $3,000 for your television, and while it may cost you another $3,000 to replace it, the insurance policy will depreciate it. You may only receive a few hundred dollars to replace it! Opting for replacement cost coverage ensures that you'll have enough money to replace your items with new items. Inventorying Your Belongings
It's impossible to purchase the right amount of insurance if you don't know what you have. Conduct a thorough inventory of all of your belongings and cost to replace those items with your current policy's limits. If your house were to burn down today, turning everything inside it into ash, would you even know what to list as a loss? Take the time now to document everything and estimate its worth. You may find that your existing coverage is more than enough. But then again, you may find that it's nowhere close to where it needs to be. By finding this out now, you can avoid the "My insurance didn't tell me that" blues. Insurance Resources
Your state's insurance department website and your insurance company are excellent resources. Spend time learning about the insurance issues and regulations affecting your state and ask your insurance agent to explain anything that you don't understand. By taking a proactive approach today, you can avoid heartache tomorrow. Watch New York Knicks vs Milwaukee Bucks Online Game Coverage You Do Need Home Insurance Crane, Rigging and Steel Erector Insurance What To Bear In Mind When Looking For Taxi Insurance Oregon Motorcycle Insurance - Quotes Made Easy Buena Vista Colorado Orthopedic Surgeons: Allowing a Treatment beneath Insurance What you need to know about errors and omissions insurance for engineers Insurance Companies in Orange County, CA Why People Need A Disability Insurance Lawyer The Obstacle Using A lot of Local Insurance Agents' Websites Guide to Hotel Insurance What's The Difference Between Insurance And Estate Appraisals? Watch Cameroon vs Denmark Live Streaming FIFA World Cup 2010 Online Broadcast tv coverage, June 19,2010