Have you ever looked at your insurance policy and wondered just exactly what it is you are paying for?
Everyone knows that they are legally required to carry liability insurance. But many people don’t really understand what that means or how it works.
In simple terms, liability insurance pays to fix damage that you cause to someone else.
On your auto insurance policy, this is split into three pieces. Here is an example:
Bodily Injury: 50/100
Personal Property: 50
Let’s say that this was your coverage amount and you hit another car in an accident. Your insurance would pay up to $50,000 per person for injuries up to a total cap of $100,000. And it would pay up to $50,000 in property damage to fix the other car.
Remember, liability only covers the person that you hit. It doesn’t cover your vehicle or anyone inside your car.
There are many different amounts of liability coverage. We work directly with our clients to determine how much you need. This will vary based on factors like how many assets you have, your income, and home value.
Not having enough liability insurance is one of the biggest financial mistakes you can make! Carrying only the state minimum could leave you open to a lawsuit. Think about those cars you’ve seen on the road worth easily over $40,000! If you don’t have enough property damage coverage, then you are at risk.
There is also liability coverage on your homeowners or renters insurance. It pays if someone is injured on your property due to your negligence. One common example is a dog bite. This is another time when it’s good to have enough liability insurance!
Hopefully this clears up any questions you have about how liability insurance works. If you need help determining the right amount of coverage for your family, give us a call for a no obligation review and quote.
Each month in 2015, we’ll be sharing a short list of tasks that you can do to help take care of your home, vehicle, and family. Consider them a helpful reminder of what needs to get accomplished throughout the month to keep your important items protected.
Here’s what’s on the list for January:
Make A Home Inventory - January is all about getting organized, right? So what better time to document what you own in case you were to suffer a serious insurance loss (like a fire). Grab your cell phone and make a short video of each room in your home, focusing on big ticket items. Many times, it’s difficult for our clients to remember every little possession after the shock of a large claim. You’ll be glad you took the time to make the videos if you ever need them.
Deep Clean Your Dryer Vent - A large percentage of home fires begin in the clothes dryer! Lint builds up in the vent and hose which can spark a fire. Unhook the hose and vacuum the area well on a regular basis to keep your home protected.
Organize Your Warranties - Do you have a big pile of warranties, product documents, and receipts stuffed in your desk drawer? Do you even own those items anymore? These days, many owners manuals can be found online without taking up valuable drawer storage. Also consider scanning and keeping a digital file of your receipts and warranties for easy storage and retrieval if needed.
Check Your Circuit Breakers - How often do you actually look in the breaker box? Open it up and make sure the labels are correct and readable. Also stash a spare flashlight (with working batteries) close by in case of a power outage.
Gather Your Tax Documents - It won’t be long until you’re filing your 2014 taxes. Start gathering up all the documents you or your accountant will need.
Know Your Deductibles - When was the last time you reviewed your deductibles? This is what you would pay out of pocket in the event of an insurance claim. It’s a good idea to keep this amount in your savings account so it’s available when you need it. Feel free to give us a call to review all of your insurance policies in detail.
January is a great time to get organized for the new year! Let us know if we can help in any way!
Happy New Year!
Today I’m answering a question I hear all the time - “Are my personal belongings covered if someone breaks into my car?”
Unfortunately, they typically are NOT covered! Your auto insurance covers your car from damage and accidents, but not the items inside from theft.
But there are still ways to protect yourself. First, and most obvious, avoid keeping high-ticket items in your car in the first place. This includes things like your laptop, iPad, purse, etc.
If you’re out shopping, keep your doors locked and lock most items away in the trunk.
But this isn’t always possible. And so you also want to make sure you’re covered by carrying Renters or Homeowners insurance for your personal belongings. These policies include a certain amount of coverage for property off premises. These are subject to your deductible so make sure to discuss with your agent to see what kind of coverage you have currently.
With a little bit of prevention and great insurance, you’ve won’t have to worry about items being stolen from your car. Have questions? Give us a call to discuss them anytime!
2015 has arrived! And with it come resolutions and goals for a fresh start over the coming months.
If one of your resolutions for this year was to get organized, then here are some tips on how to get financially “fit” in 2015! At least as far as your insurance goes...
1. Set up a meeting with us! Each year, we like to do a policy review with every client. We look at all of your policies and update your information. Insurance needs tend to change with major life events so if you got married, had a baby, changed jobs, retired, or anything else in 2014, you probably need a review. Many times you qualify for new discounts or we can point out ways to help you save (like getting a multi-policy discount!)
We can schedule this meeting over the phone or in the office, whichever is easier.
2. Get a life insurance quote. For some reason, life insurance is one of those things that gets neglected. People know deep down that they need it, but often never get around to actually purchasing any.
Many times you can get a basic term life insurance policy for $30 a month or less. (Depending on age and health status, it varies for everyone!)
3. Organize your insurance documents. Keep a file with a copy of your current auto, home, and life policies in one easy-to-find place. When your renewal comes in the mail, you can throw out the old copies. Some people also like to keep a copy of their life insurance with their attorney or in a fire safe. We can always help you get a copy if you need it!
4. Put a current insurance card in your glove box and throw out the six old ones that are likely crumbled up in there. :)
That’s it! Take care of these items and you’re on your way to being organized and properly covered in 2015!