Archive for March, 2009

6 Common Property Insurance Mistakes Which You May Lose You Everything

Finding the right home insurance coverage may not come very high up on your list of financial priorities and, compared with things like investment decisions and estate planning issues, questions concerning the language in your homeowners policy might seem barely worth considering. However, the more successful you are, the more complicated your asset-protection needs are likely to be—and the more you have to lose. Suppose, for example, that in addition to your primary residence—a historic home—you also own a house at the beach and a condo in the city.

For illustration, let us assume that you own properties in three states, the value of your collection of Expressionist paintings has grown quickly and you just volunteered to serve on the board of directors of a charity. Nearly every aspect of this situation could cost you dearly.

Insurance laws vary widely from state to state, different kinds of property demand specialized coverage and collections of art and other unique items might be difficult to fully protect. As if this were not enough, serving on the board of a non-profit organization might land you with additional personal liability.

Protecting yourself, your family and your property could mean having to purchase extra coverage, but additional insurance isn’t necessarily the solution. Instead, it is vital to review your needs, consider specialized policies and coordinate your coverage with other aspects of your financial situation.

Listed below are 6 shortcoming which could turn out to be extremely costly.

1.  Having gaps in your homeowner’s coverage.

Homeowners need to review their cover on a regular basis so that they can keep up with increasing replacement costs. However, insuring different kinds of property in different locations presents special challenges. If you take insurance from more than one insurer then you may be faced with several different rules, limitations, and policy renewal dates. For example, the limit of liability on the plan for a second home could fall below the minimum on an excess liability policy intended to complement the insurance on your primary home and you may well end up up being responsible for coming up with the difference.

2.  Ignoring your property’s unique characteristics.

One of the perks of affluence is having the means to own exceptional homes but one of the drawbacks is that they could be hard to insure adequately. Ordinary homeowner’s coverage won’t pay for the hard-to-find materials and craftsmanship needed to rebuild that late 19th century property you have lovingly restored. Coastal properties could face hurricane damage, while a place in the mountains of California might be exposed to wildfires or earthquakes.

3.  Under insuring collectibles and art.

Ordinary homeowner’s policies limit coverage for the loss of such things as furs, antiques, and other valuables. And although you could arrange additional cover, insuring for the real value of an art collection will generally mean buying a specialized policy which addresses several critical issues.

4.  Forgetting to organize insurance for household employees.

When an individual works for you as, for instance, a nanny, landscaper or personal assistant you might have a liability for lost wages and medical expenses if the individual is hurt on the job. Several states require household employers to contribute to a workers compensation fund while in other states this is optional. Nonetheless, providing such insurance cover may be obligatory for ensuring your financial well being.

5.  Neglecting your liability as a member of a board of directors.

Excess liability coverage might help to protect you if you are sued as a director of a charity or, if you prefer to have more comprehensive protection, you might want to consider taking out special directors and officers liability insurance.

6.  Failing to get frequent policy reviews and updates.

Your finances are not static and neither are your requirements for insurance. The value of your art collection may rise, home renovations could mean an increase in the value of your home and the re-titling of assets as part of your estate plan or as a result of divorce, a death in the family, or the birth of a child could require changes to your plan. Even lacking any significant events, you will almost certainly need a review of your insurance cover at least every two years.

Whatever the level of homeowner insurance you need equip yourself with the best no obligation homeowners insurance quotes today.

Is Moving Insurance Necessary?

When moving long distance a lot of people hire professional moving companies to assist them with the relocation to a different state or country. But not many consider covering their household goods with moving insurance. We hear quite often: “If I have employed the “professionals”, is there any need in buying moving insurance?”

Your material possessions should be ensured during the state-to-state or international move against any unexpected conditions. Your homeowners or rental insurance might encompass your goods in transit. The problem is they normally cover 10% of the value of your personal items. If your insurance supplier doesn’t cover goods while in transit or in somebody else’s vehicle, or if they merely underwrite against big catastrophes vs small damages to single items, you must unquestionably buy moving insurance.

Buying the insurance directly from a moving company poses some issues, though. Based on the valuation method, movers are just responsible to cover your household goods and personal items for 60 cents per pound. In the case of damage, loss or theft, the whole sum you’ll be eligible to reclaim is $.60 per pound per item. For instance, if a china vase that weighs 10 pounds is broken, the most you’ll be able to recoup is $6.00, irrespective of the value of the vase. This usually doesn’t furnish full security for your assets.

As for the total sum of coverage you want to purchase, majority of moving providers assure the items as a whole, and do not check for the individual items. Thus, you must regard the total value of your household goods and buy sufficient moving insurance to encompass all of the contents of your household.

In addition, you had better research other moving insurance alternatives. You may check into private moving insurance, which you can purchase from specialized insurance agents or moving insurance brokers. If you want to acquire full-value coverage for your personal property being relocated nationwide or worldwide, we advise utilizing a specialized insurance agency. We advocate checking with Shipping-Insurance.com (www.shipping-insurance.com). Not only this company specializes in moving insurance for private parties, but they provide the very finest full replacement policies available, and have claims agents everywhere in the USA and the world.

Myths And Facts About Household Fires

Fire is a deadly threat to every household. It can strike without warning. There were over 380,000 residential fires in 2005 in the U.S. annually results in some 16,000 injuries and deaths as reported by the NFPA. Everyone should be familiar with the use of fire extinguishers, carbon monoxide detectors, smoke alarms and escape ladders for fire safety and protection.

Smoke alarms provide early warning when fire happens. Smoke alarms are best, most efficient way to alert your family of a fire in its beginning stages. The greater number of smoke alarms you have placed throughout you home the better the likelihood you and your family will be alerted to a fire.

Your fire extinguisher is a tool that should only be used to extinguish small contained fires. Strategically positioning fire extinguishers throughout your home will greatly increase the chances of keeping a small fire from getting out of control and causing major damage, injury or even death.

Fire extinguishers are categorized by Underwriters Laboratories ratings. The size and type of fire extinguisher determines the type of fire it should be used on. Types of fires are divided into three categories: A, B, or C.”A” class fires consist of mainly wood paper and or fabric as the fuel source. Type “B” fires consist of flammable liquids or oils. Lastly, “C” fire extinguishers are for electrical fires.

The number preceding the A, B, or C rating determines the size fire the extinguisher has been tested to be effective on. As an example, a 10-B:C extinguisher has been tested and shown to put out a 25 square foot flammable liquid or electrical fire. A 5-B:C extinguisher could handle a 12.5 square foot fire that is flammable liquid or electrical based.

Being ready by using both smoke alarms and fire extinguishers in your home, having a prepared, rehearsed escape plan and knowing what to do in case of fire, can help save your home and your family.Tragedies caused by fire can be prevented!

It is recommended that homeowners install a minimum of one smoke detector on each floor of your house most importantly near sleeping areas. Also, place an emergency escape ladder in each second or third level bedroom of your home. It is also smart to install a fire extinguisher in a convenient location on each level. You may want to consider more than one fire extinguisher per floor if you own a large home

For most homes the minimum recommended number of fire safety devices is one smoke alarm and one fire extinguisher on every level. However, check your local building code for detailed smoke alarm and CO alarm requirements.

Recession-Proofing Your Holiday Plans: Second Homes

Perhaps it’s something to do with all the money troubles, not to mention weather troubles, here in the UK. But more people are looking at buying a second home that they can use for credit-crunched domestic holidays and to generate some additional revenue for the other 11 months of the year. Others still have chosen to leave the UK altogether and find that piece of heaven they have been looking for by moving abroad.

Following this route is becoming easier for everyday people, it doesn’t matter what age you are, you can always invest in new property, however, whether your new home is in the UK or abroad, you will still have to protect it. Finding a company that will give cost effective cover for second home insurance and overseas property insurance isn’t as easy and can often be more costly than you might imagine.

Searching for second home insurance that suits your needs can be an expensive and tiring chore. This is because insurance companies know that second homes are generally left unoccupied for lengthy periods of time, because of this, the home can face weather damage like burst pipes. If you manage to get through all of those problems, there can still be worries when it comes to damage to the property by guests.

If you do obtain cover you will probably find that most holiday home or buy to let insurance policies have restrictions in the small print. Because of this, unless you make sure you comply with every requirement, you can get a shock when you insurance is invalid next time you make a claim. There are some providers who understand that most holiday home and second home owners only use their property occasionally.  

Because of this reason, there are some policies available that won’t end up leaving you with no water or electricity as they have no restrictions or exclusions in the small print. Also, with these policies, there are some advantages when it comes to renting out the house, for example, protection of your content if it gets damaged by the current guests.