COMPARE BEFORE YOU SHOP, Part 4 ~ Renter's/Tenant's Insurance

Do Your Homework - RENTER'S/TENANT POLICIES

Ever stop to think just how much the stuff you've accumulated would actually cost to replace?  Go "shopping" around your apartment or rental home/condo one day and you would be surprised.  Ever stop to think about someone slipping and falling on your stairs or in your kitchen and you being sued?  What if you're cooking a fabulous meal for you and your significant other and the kitchen goes up in flames?  Do you have coverage if the neighbor (either upstairs or next door) causes a water leak that leads to your apartment being flooded and they have no renter's insurance?  

These scenarios are very real and could happen to anyone, yet could be avoided for merely pennies a day.  Most renter's insurance policies (depending on the amount of personal property you insure) run about $15-$25 per month and usually cover a minimum of $100,000 for your personal liability should you damage your rental unit due to negligence on your part.  Your liability coverage would also cover you should someone injure themselves at your residence and attempt to collect damages from you.  Most renter's insurance policies also provide you with some minimum coverages for jewelry, furs, computer items, silverware, etc. as well as basic medical expense coverage (usually $1,000) should you need it.  

Be sure you compare products and get the best possible liability coverage to protect your personal assets.

COMPARE BEFORE YOU SHOP, Part 3 ~ Condo Unit Owner's Insurance

Do Your Homework - CONDO INSURANCE POLICIES

When insuring your condo, make sure you know exactly what your Home Owners Association (HOA) Master Policy covers.  Coverages may vary from association to association, but typically the owner of the unit is covered in one of three ways: 

1. Coverage for the basic building, which includes walls, roof, floors, etc., but the unit owner is responsible for the appliances, carpeting, cabinets, wall coverings, and other items in their unit, including the interior walls in some instances.  
2. Coverage for both the basic building as well as items within each unit, other than the personal property of the unit owner. 
3. Coverage for both the basic building as well as the unit owner's fixtures and improvements. 

When the HOA Master Policy covers the structure, a condo unit owner policy is usually written to cover items that are the responsibility of the individual owner/tenant such as:

• The value of building additions/upgrades made at the expense of the unit owner.
• Value enhancements like an upgraded quality of carpeting.
• Damage to the unit that might not otherwise be covered because of the master policy deductible.

Doing your homework is critical.  Be sure to ask about additional endorsements 

for situations your master policy may not cover. The endorsement for water 

damage is a must add! 

WHAT'S YOUR AUTO INSURANCE SCORE?

KNOW YOUR SCORE! 

"Why is my quote so high?"  If I had a dime for every time I heard that ... Your auto insurance score is quite similar to a credit score.  It is calculated by analyzing your credit file. Auto insurance scores can vary by credit reporting bureau, and factors heavily in determining your auto insurance rate.

Usually there is a direct correlation between people with good credit scores and good auto insurance scores. Just as a low credit score indicates a risk to creditors, a low auto insurance score pretty much says you're more likely to file an insurance claim, resulting in losses for an insurance company. 

Credit Karma provides both scores (auto insurance and credit) directly from TransUnion, one of the three major credit reporting agencies. Like the other scores available through Credit Karma, the auto insurance score is completely free to members.

COMPARE BEFORE YOU SHOP, Part 2 ~ Homeowner's Insurance

Do Your Homework - HOMEOWNER'S POLICIES, TX

Many times when I'm quoting homeowner's policies, the cost of the premium scares people away. Buying a home is a very tedious process; takes time, money, patience, and more money.  Why should insuring a home be any different?  

When insuring your family's lifelong memories, one must consider more than what it costs to insure the home, but what it would cost to rebuild in the event of a total loss? Of course nobody wants to think of losing "everything" to a fire or natural disaster, but insurance exists for a reason.  

It's never as simple as choosing the lowest bidder.  What is the insurance policy actually insuring? Are you getting dwelling foundation and water damage endorsements or not?  Most companies (and I'm speaking of Texas) allow you to choose those options when you start your insurance plan (at an additional cost of course), but you can't add it on later should you decide you want it.  

Is your home being insured to value (100%) or just to 80% where you are responsible for the other 20% under the co-insurance provision? Do you have replacement cost or actual cash value coverage?  What about your loss of use coverage?  

All of these are things you definitely need to discover by doing your due diligence, asking questions, and taking your time while deciding on home insurance provider.  Price alone is not enough. 

COMPARE BEFORE YOU SHOP, Part 1 ~ Auto Insurance

Do Your Homework - AUTO POLICIES, TX

Ask ten friends what they want in an insurance company and more than half will say "good price!" One or two will say "best company!"  There may be a loner or two that chime in with "best customer service and availability!"  You see, we all value different things when it comes to our own personal, customized needs. 

Some folks like to be left alone to the research online, then enter payment info and go about their merry way.  Others like to "shop" their coverage yearly or every policy period, looking for the best possible price.  Then you have the "relationship seekers" who literally want to know exactly who is taking care of them, their needs, and their assets.  Once you get 'em, you got 'em as long as you continue to serve their needs.  

Regardless of which of those customer segments you fall into, be sure you do some research prior to getting online, making those calls, or visiting your local insurance agent's office.  The most awkward moment is usually when I ask my potential customers "What amount would you like for us to pay in the event you caused a major accident with injury and perhaps death?"  Silence fills the room or the other end of the phone for a brief moment, and then I get "Well, what do you mean?"  

If you do your comparisons up front, you'll have an idea of what the legal limits of liability coverage are in your state and why it is you may want to purchase more than that, depending on what you stand to lose in an at-fault accident.  You will know more about how each company stacks up against others and which ones you should stay away from; which ones have the best claims departments and customer service centers after hours. 

Not everything should be solely based on how inexpensive it is for you to purchase.  #yougetwhatyoupayfor

AUTO INSURANCE 101: TO FILE OR NOT TO FILE

AUTO INSURANCE FOR DUMMIES

I get it all of the time ... "Why is my quote so high?  Why did my premium increase?"  The answer is fairly simple, though most things are often easier said then done.

Consistency is the key!!! If you want lower insurance rates, be consistent; pay your bills on time, don't cause accidents, don't get moving violations, don't settle for the limits of liability just to "get off cheap," and most importantly STOP SWITCHING COMPANIES EVERY SIX MONTHS!!!

When getting an auto insurance quote, there is "soft pull" on your credit to access your consumer history report, which can quickly identify trends in timely bill paying, accident or loss history report (claims filed) and previous insurance companies and coverages you've had on your current or past vehicles.

While we can't control reckless drivers, we can certainly control whether or not we follow simple, daily laws/rules to keep our own costs down.  Also, before you submit a claim keep in mind that insurance companies frown on drivers with multiple claims on their consumer history report.

Consider getting a few estimates, then determining if it is better to settle a claim on your own or between you and the other driver, without involving your insurance company.

LIFE INSURANCE ON THE JOB: My two or three cents

IS YOUR FAMILY PROTECTED?

At least five to ten times per day, I have a conversation (albeit usually very brief) with someone regarding life insurance and the potential need their family would have in the event they suddenly don't make it home for dinner. 

I totally understand that most people cringe at the thought that one day they will no longer live and breathe as they currently do, but one thing is for certain we all get a "certain" amount of time here and that time can't be figured out by any algorithm I've ever been privy to.  

The name of the game is making sure your family can continue their same lifestyle should either of the main bread winners make an early, unexpected exit from this life.  Having life insurance at work is a GREAT start! You usually get a pretty good price (if not free) on the coverage and usually one to two times your yearly salary.  

Sounds like a sweet deal on the surface, but the moment you leave that position you no longer have coverage and if you stayed three to five years, you are now that much older when it comes time to rate you for your next life insurance plan. 

How do you combat this issue?  Make sure you have permanent life insurance outside of your employer and make sure you begin that coverage as early as you can to take advantage of the best possible monthly premiums.  Also, be sure you speak to an insurance agent about your options for coverage: term, whole, universal, term vs. whole, whole vs. universal, etc.

PROTECT YOUR ASSETS!

HOW'S YOUR COVERAGE?

How many are currently aware of the amount of money your auto insurance company would pay out in the event that you caused a multiple car accident with injuries or fatalities? 

Your limits of liability (and they vary from state to state) determine the amount of damages (both property and bodily) your insurance company would pay in the event you are at fault in an accident.  

Think about that the next time you look at your insurance ID cards or policy, then think about what your net worth is and/or how much you and/or your spouse bring home each year in salary.  

If your liability limits are not at the point of protecting your net income, you may want to schedule an insurance and financial review with your insurance agent ASAP!  Don't have one, then it's time to re-think that as well.  When it comes to insurance, cheaper usually doesn't mean better and having a local agent is much more beneficial than spinning your wheels speaking to an insurance novice at a 1-800 call center.