Dejections

July 3rd, 2008

Theft Prone Items: In And Around The Home

Posted in Insurance Savvy

Although many homeowners go about purchasing a Homeowners insurance policy to protect their home and their belongings inside the home, most don’t give that insurance coverage another thought until something happens such as fire, hurricane damage, or theft.

While many homeowners like to believe that they live in safe neighborhoods that would never be affected by crime, it is tough to completely rule out whether or not the home will ever be affected by theft. For this reason it is essential to consider the theft prone items inside and outside of the home, so that you can ensure those items are properly insured, properly inventoried, and properly looked after as well.

Almost all good Homeowners insurance companies will recommend taking a careful inventory of household belongings and updating that list at least once a year to ensure that you are fully covered by the amount of insurance you have.

This also will help ensure that you will receive full replacement cost for those damaged or stolen possessions. In addition, some Homeowners insurance companies will even want to lump possessions into categories of theft prone and none theft prone. This is something many homeowners have never considered. What inside the home is theft prone?

One of the first categories that every insurance company will look for in the theft prone area of household goods is electronics. Unfortunately, many thieves know that electronics can easily be pawned or sold since they are a hot commodity in most parts of the world. Electronics can range from a television set, a DVD player, a personal computer or laptop, to an IPOD, or a CD player stereo system.

It is important to note to insurance agents any large or extremely expensive pieces of electronics equipment that may be in the home, and it is equally important to take adequate pictures and record dates of purchase, place of purchase and model numbers in case of theft. Manufacturers and model numbers can actually help in tracking down stolen goods as well.

Another major category for theft prone items is jewelry and furs. While some Homeowners insurance policies will cover the theft of jewelry or furs, many will require you to have a separate policy or a separate clause on the policy that will cost extra money, since furs and jewelry are special possessions.

Insurance policies will allow you to cover all jewelry in a lump sum, but often this means you will only be paid back a certain amount, like $2,500 for any one piece of jewelry. If you have any pieces of jewelry that cost over this amount, such as an engagement ring or diamond necklace, you may want to get a specific policy for that one item.

Note that this will require an appraiser’s description of the item and cost assessment. Don’t forget to always take pictures of the jewelry and furs, so that an insurance company can review the pictures for replacement value.

Many homeowners’ completely forget about collector’s items as a potential theft prone category, but many thieves will take notice of such a prized collection. Collector’s items could include artwork, baseball cards, antiques, or even figurines and are unfortunately extremely popular in the home invasion category.

With the advent of online programs like EBay, thieves can easily market these collector’s items to other collectors and make their money off of your prized possessions. It is important to inventory and take pictures of these household goods as well as report them to your insurance company.

Remember not to count out household items that thieves may consider taking from the exterior of your home. During the daytime or early evening hours, especially during the summertime, when families are out mowing the lawn and walking the dog many people leave the garage door open and this is an easy target for preying thieves.

Valuables in the garage can include tool sets, large power tools, sports equipment from scuba gear to summer or winter skis and even bicycles, workout equipment, a summertime grill, and electronics. When inventorying a home or speaking with an insurance agent, don’t forget to include those items that are in the garage but can still be covered by your Homeowners insurance policy.

Credit: Ian W Anderson of homeownersinsurance.cc, the homeowners insurance information site. For more homeowners insurance information and articles like this one visit: Homeowners Insurance

April 10th, 2008

Types of Motorcycle Insurance Coverage

Posted in Insurance Savvy

Similar to automobiles, there are a few different types of
motorcycle insurance coverage available. Some of the types of
coverage are required by law, and some that you have to
determine if you think you need. As stated before, insurance is
statistics and odds. You may not think you need a certain type
of coverage to save money. And you may never use that coverage.
But if just one incident happens that you do not have protection
by a certain type of coverage, it can cost you big time.

Bodily Injury/Property Damage Liability Insurance

Bodily injury liability is another type of motorcycle insurance
coverage that you are required by law to carry in most states.
Legal minimum in many states is as little as $10,000 per person,
per accident. Your coverage pays for injury to others when the
accident is your fault. Most insurance experts recommend that
you purchase as much as three times the minimum in this day of
litigation and lawsuits.

If you are legally liable for an accident, your insurance will
pay for the following:

1. The cost to repair or replace damaged property

2. Medical bills incurred by injured parties (may include
coverage for guest passengers)

3. Lost wages of injured parties

4. Other damages you are legally obligated to pay as a result of
an accident.

If you are involved in a motorcycle accident and the other
driver is at fault, then the other driver’s property damage
liability coverage pays for your motorcycle damage. Property
damage liability insurance is required by law, but the legal
minimum amount for this coverage in some states is only $5,000
per accident. So, if a driver with the $5,000 minimum totals out
your $15,000 bike, his insurance company will pay you only
$5,000. How will you get the other $10,000? If the other driver
files for bankruptcy, you end up with nothing.

Explanation of Bodily Injury and Property Damage Liability
limits:

If you select 15/30/10 limits, your liability coverage will pay
up to $15,000 per person and no more than $30,000 per accident
for Bodily Injury and up to $10,000 per accident for Property
Damage.

Guest Passenger Liability

This type of coverage provides protection for legal liability in
the event that a guest passenger is injured on the insured
motorcycle.

Underinsured/Uninsured Motorist

If you purchased underinsured property damage coverage, you may
be able to collect the other $10,000 to fix your bike. This
insurance is used to “fill the gap” between the actual amount of
damages and what the other driver’s insurance paid, but only if
the other driver caused the accident and only if you purchased
limits high enough to cover all of the remaining damage. In
other words, if the legal minimum requirement in your state is
$5,000 for property damage liability, and you drive a $15,000
bike, you should have at least $10,000 limits on you
underinsured property damage.

Underinsured motorist coverage picks up where the other driver’s
insurance runs out. This type of insurance is very important. If
you are injured in a motorcycle accident, break you leg, spend a
week in the hospital and are off work for six months and
experience a great deal of pain and suffering. You need coverage
high enough to pay for your damages. The other driver only has a
minimum policy of insurance (i.e.) $15,000. You will be left
holding the bag. It is common that the injured persons medical
expenses and wage losses are higher than the other persons
insurance. Also nothing is left for pain and suffering or
permanent disability.

Therefore, you need underinsured motorist coverage to pick up
the difference. This type of coverage is strongly recommended
because of its importance. It is suggested that you carry a
minimum of 100/300 coverage (100 per person/300 per accident)
this will also protect your passenger.

Uninsured motorist coverage is the most important insurance you
can buy. In many metropolitan areas the other drivers are
uninsured. These uninsured drivers can make up as high as 40% of
the drivers on the road! As you know, the motorcycle driver is
not at fault in most accidents. Therefore, you have a high
probability of being hit and injured by a driver who has no
insurance. The only way you can protect yourself is to purchase
uninsured motorist coverage. Uninsured motorist coverage pays
for medical expenses, property damage, and pain and suffering
(however, there are limitations in no-fault states). I strongly
recommend that you purchase this insurance and do not drive
without it. Many riders mistakenly believe uninsured motorist
coverage pays only for medical bills, and that they do not need
it because they carry health insurance. WRONG!– it pays for
medical expenses, as well as loss of earnings, and pain and
suffering.

It is a good idea to talk to your agent, or talk to several
agents, to determine the best coverage that will provide the
most protection against loss. You need to remember that
different insurance companies have different exclusions to their
insurance policies. The most common for motorcycle policies is
the passenger exclusion, which means that your insurance company
will not pay for injuries to, your passenger under your bodily
injury liability coverage if you were at fault. There are other
types of exclusions that, unless you ask, you may never know
about until it is too late. Therefore, the most important thing
you can do is to fully understand you entire coverage.

In a nutshell: Underinsured coverage is coverage that protects
you if the person who hit you does not have enough insurance to
cover all of your damages.

Uninsured coverage is coverage that protects you if the person
who hit you does not have any insurance at all. This type of
coverage covers your medical bills and any lost income you would
incur while you are out of action.

NOTE: This coverage can be argued to be the most important
coverage for a motorcycle rider and passenger. This is the only
type of coverage that you can purchase that protects you. Most
motorcycle insurance protects someone else or someone’s
property, or your bike for damage. This is the coverage you
collect from if you are injured by, a person who has no
insurance or a person who does not carry enough bodily iniury
(BI) to cover your claim. This coverage can pay your medical
bills, lost wages, pain and suffering, and even future damages.

What to buy: as much as you can afford. Riding without this
coverage is about as dumb as riding without a helmet, in a
bathing suit, with no shoes.

Collision/Comprehensive Coverage

Comprehensive and Collision coverage covers the cost to repair
or replace your motorcycle if it is stolen or damaged in an
accident, regardless of who is at fault. You select a deductible
for each coverage, and once the deductible is met, the insurance
company pays for the remaining damage. The higher the deductible
the lower the premium. Hint: On smaller bikes the difference
between deductibles is not as great as on larger more expensive
models.

Collision coverage will pay for damages to your bike, less your
deductible. This coverage applies without regard to fault. Even
if the damage is your fault the coverage will apply. You also
can use this coverage when you have been hit by another person
and they are at fault. Note: Coverage extends only to the
factory parts of your bike. If you get fancy and add anything
extra–like nifty chrome accessories - additional coverage will
be required for compensation.

Comprehensive coverage will pay for theft, fire and vandalism.
This coverage is subject to a deductible.

The time to find out about coverage and exclusions on any
policies is before you buy it. Before you sign anything, ask
your insurance agent if there are any exclusions or notice
requirements in the policy. Always ask to have all exclusions
and notice requirements explained to you before you buy any
insurance.

Medical Payments

Medical Payments coverage pays the cost of necessary medical
care you receive as a result of a motorcycle accident and can be
used regardless of who is at fault. The coverage often is
limited to medical treatment received within the first three
years after an accident and is limited to a specific dollar
amount. In some states, Medical Payments only applies after
other medical insurance is exhausted.

Very few motorcycle riders buy this insurance. My guess is that
they have great hospital coverage from their employer or
purchased their own coverage and feel that this is a duplication
of coverage. If you do not have hospital insurance buy as much
of this coverage as you can afford.

Hint: If you do not have hospital insurance and are injured in
an accident that is your fault this is the only coverage you
will collect on for your medical expenses. If you carry your own
medical and have a deductible or co-pay plan you need this
coverage to fill in the gaps. Limits of $500.00 to $10,000.00
are available, a small deductible may apply varies by company.

Custom Parts and Equipment (CPE)

When Physical Damage Liability coverage is purchased, $1,000 of
Custom Parts and Equipment (CPE) coverage is included.
Additional CPE coverage can be purchased to cover equipment, up
to $30,000 in value.

CPE covers equipment, devices, accessories, enhancements and
changes, other than those that the manufacturer originally
installs, that alter the appearance or performance of the
motorcycle or ATV. This includes, but is not limited to:

Any electronic equipment, antennas and other devices used
exclusively to send or receive audio, visual or data signals or
play back recorded media, other than those that the manufacturer
originally installs, that are permanently installed on the
motorcycle using bolts or brackets, including slide-out brackets

Sidecars

Trailers designed to be pulled behind a motorcycle or ATV

Trike conversion kits

Custom paint, custom plating or custom exhaust

Mower blades, plow blades or winches

Safety riding apparel, including helmets. (Coverage is provided
in the event of a Collision loss. Theft is not covered.)

Note: You should retain photos of the motorcycle and all
receipts for custom parts.

Roadside Assistance

Roadside Assistance coverage provides towing to the nearest
qualified repair facility and necessary labor at the place of
disablement when your motorcycle is disabled due to any of the
following:

Mechanical or electrical breakdown

Dead battery

Flat tire

Lockout

Insufficient supply of fuel, oil, water or other fluids

Entrapment in snow, mud, water or sand within 100 feet of the
roadway

Roadside Assistance is available 24 hours a day, 7 days a week.

April 3rd, 2008

How Can I Save Money on My Homeowners Insurance Rates?

Posted in Insurance Savvy

Why should your homeowner’s insurance carrier receive any more of your hard earned money than they should? Here are a few pointers to help you to reduce your premiums and put that money right back into your pocket.

1. Raise your deductible: Depending on the state in which you live and your insurance carrier, raising your deductibles from $250 to $5,000 per claim could save anywhere from 5 to 25% of your premium.

2. Buy your policies from the same insurance company: Insurance companies offer a discount if you purchase two or more policies from them, so get your homeowners and automobile policy from the same company.

3. Insurance companies prefer to insure new homes: When looking for a home, keep this in mind. However, if you do buy an older home, updating systems like the electrical, heating and plumbing may serve to earn premium credits.

4. Install smoke detectors: In new York, smoke detectors are the law. This might not be so in other states. Having a smoke detector, a burglar alarm, and functioning fire extinguishers may earn additional premium credits.

5. Stay with the same insurance company: Insurance companies like long term relationships with their policy holders and they tend to reward them accordingly. Some companies offer 5% premium discounts if you remain with them for 3 to 5 years, and 10% discount for 6 years or longer.

6. Avoid negative impact: Some insurance companies will not provide coverage if you have certain dog breeds. Other carriers will insure your home, but will charge an additional premium. In general breeds such as Presa Canario, Pit Bulls and Rotweilers are not looked upon favorably. Check with your insurer before getting a dog to see how it will impact your premium.

7. Shop around: The internet makes it easy. Always get more than one quote and compare overages and premiums.

View our recommended source for insurance quotes http://www.ezquoteguide.com

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