Upgrade Your Home, Insurance Policy Before Spring Storms Hit

Mother Nature's forces of wind, water and hail account for more than half of all homeowners insurance losses.


Standard homeowners and renters policies cover the damage wreaked by wind, hail, falling water or wind-driven rain, but not from rising water from any source, including a sewer or drain backup or sump-pump failure. The cost can be substantial: Mother Nature's forces of wind, water and hail accounted for more than half of all homeowners insurance losses between 2009 and 2013, with an average claim amount of $7,610, according to the Insurance Information Institute.


If you live in a federally designated flood zone, or if your house could be flooded by melting snow, an overflowing creek, or water or mud running down a steep hill, you can buy flood insurance from the National Flood Insurance Program (www.floodsmart.gov) by calling your insurance agent. The program covers homes for up to $250,000 of the cost to rebuild and insures contents for up to $100,000. The average premium is $700 per year, but rates depend on a home’s features and location.

Prevention pays. You can take steps to minimize the risk. Visually inspect your roof for damage, clean your gutters, and attach extensions to downspouts and regrade soil to divert water away from your home’s foundation. Test your sump pump and recharge its battery.


To avoid coming home and finding that a deluge has created a sodden (or worse, moldy) mess, install a remote alarm system, such as the Samsung Smart-Things Hub (about $300 with five water-leak sensors). It will notify you when the sensors—-placed where leaks or overflow are most likely to occur—detect water. Home insurers usually offer their biggest discount for a combination of approved protective devices, which may include a water-leak detection system. State Farm offers discounts of 10% on the ADT Pulse home-monitoring system ($636 a year) and the Comfort and Control Kit for the Iris by Lowe’s smart-home system ($339). Plus, State Farm offers customers a premium discount of up to 10% to 15% for the ADT system and up to 2% to 7% for the Iris.

If your home (or neighbors' homes) experience sewer backups, hire a plumber to install a sewer-backflow valve ($600 to $1,400) to keep pure nastiness from backing up through toilets and drainpipes into your home. The valve allows waste to flow out but closes when the flow reverses. You can also add, say, $5,000 of sewer-backup coverage to your homeowners policy for about $50 annually.

Fortify your home. Your roof is your home’s first line of defense against the elements. When it's time to replace it, strengthen it. You can install impact-resistant shingles that are rated for superior resistance to hail damage, and you may earn a premium discount.


Four coastal states—Alabama, Georgia, Mississippi and North Carolina—require insurers to give homeowners a premium discount of 5% to 35% for retrofitting a roof to meet the “Fortified” standards of hurricane resistance developed by the Insurance Institute for Business & Home Safety (see www.smarthomeamerica.org). Florida, Louisiana, South Carolina and Texas have similar programs.

Also consider storm shutters ($9 to $30 per square foot of openings) or impact-resistant windows ($50 to $70 per square foot). Florida requires insurers to discount premiums by 35% to 44% for storm shutters that meet code.

Wherever you live, check with your insurance agent or state department of insurance to learn about incentives for preventing storm damage.

source: kiplinger.com

Six Scenarios Where Buying Insurance Is A Must

There are some seven billion people on the planet, and it’s safe to say that for each of them, life represents something different. One thing, though, is universally certain: Life is unpredictable. While the vagaries of existence usually don’t veer into emergency territory, there are those times when they do. When that happens, the gambler who skated by without ever giving a thought to insurance may find himself or herself very sad indeed. The following scenarios represent just six of the many situations for which insurance is an absolute necessity.

1). LIFE INSURANCE

Nobody likes thinking about their own mortality. Sure, it might inspire some folks to great heights of creativity or world-altering action, but for the vast majority, all it does is make them anxious. Still, death is a part of life, and ignoring that fact is foolish. Leaving one’s survivors behind with a load of debt for no reason is not only foolish, it’s cruel. To that end, the necessity of a comprehensive life insurance policy cannot be overstated. Individual policies differ widely in what they cover, the cost of their associated premiums, the duration of coverage (“term” and “whole life” are the most popular and best known options), so those who would be insured should contact a lawyer, insurance agent, or similar professional to help them negotiate the often labyrinthine process of getting covered.

2). TRAVEL INSURANCE

Are you looking to study abroad? Perhaps you’re the sort of person who’s always looking for a new horizon, bored with the sedentary lifestyle. Maybe your job just requires frequent travel. Whatever the case, a good travel insurance policy is a must-have for anyone whose life involves even infrequent moves. Good policies like those from Travel Guard will usually cover a wide variety of travel related costs, including some you may have overlooked. Covered expenses include protection against unscheduled interruptions or early returns from a trip, reimbursement in the event your luggage is lost, stolen, or damaged/destroyed, certain medical expenses and / or emergency evacuation, and so on. As with any type of insurance, coverage levels and premiums will vary. Nevertheless, travel, especially long-term travel to far off lands, shouldn’t be undertaken without it. It’s one of those things that seem like an annoyance until you get typhoid or find yourself in the middle of a hurricane.

3). RENTER’S INSURANCE

This one’s simple: Do you like the fruits of your labor? Your clothes, your electronics, and even the very apartment you live in? What happens, do you think, if you’re robbed, or your apartment catches fire or floods, or some similar catastrophe befalls you? There are two possible answers to this question: The first is that you’re uninsured, and thus out of luck (and potentially out of money as a result of the aforementioned misfortune). The second, much happier option, is that your prudent investment in rental insurance saves you thousands of dollars and many sleepless nights, giving you the knowledge that whatever happens, you’re covered. Again, all insurance is different, rental insurance included. Choose carefully.

4). HEALTH INSURANCE

The amount of people who go about their lives with little or no health insurance (to include medical, dental, and so forth), is simply staggering. It’s also quite sad, because a health complication can pop up at any time, and whether it’s just braces for the kids or a life-threatening complication like cancer, the bills can often represent an outlay of many thousands of dollars. Bankruptcies as a result of insurmountable medical expenses are not unheard of. While insurance and healthcare costs are politically charged issues, the fact remains that it is the height of folly to go on without it. Beyond those truly unfortunate few who are truly unable to afford even the most basic of coverage, it is imperative that everyone get covered ASAP. The life you save may be your own.

5.) AUTO INSURANCE

Again, auto insurance is a no-brainer. In addition to the fact that auto insurance will protect you should you find yourself in an accident or stranded on the side of the road in the middle of nowhere (Triple A is great for this!), it is worth pointing out that the vast majority of jurisdictions won’t even let you drive without auto insurance!

6). CONTRACTORS’ INSURANCE

Do you work in a construction setting, or own your own contracting firm? Then this is the policy type for you. Worthwhile policies will cover general liability like accidents, damage, loss, or theft of tools and equipment, workers’ compensation claims and benefits, workflow problems (unforeseen delays and such), and so on. Once more, given the wide variation in policy types, coverage levels, price, and so forth, it is necessary to understand and thoroughly examine every available policy to find the one that best fits your needs.

CONCLUSION

Are there times in one’s life that insurance is less necessary than others? Sure. Still, what’s the point in playing roulette when you don’t need to? Insurance is one of those things that you never need until you do, and when that time comes, the chances are good that you’ll really need it. With that in mind, get covered – you’ll thank yourself later. After all, it’s like they say: Better safe than sorry!

source: 20smoney.com