Insurance

Insurance is a broad and confusing topic so we'll cover most of the important things to consider when dealing with coverage for yourself, family, home and/or your estate.

Let's start with basics:

The bottom line is that you need it. If you rent an apartment, you should have it especially in a big city. If you own a home, you need insurance. If you drive a car, you need it.

Most companies will interview you to determine your level of risk. Depending on what type of policy you're pursuing they will ask the following:

What do you do for a living? Do you smoke? Do you drive to work every day? Do you have an alarm system in your home, car? Do you have fire extinguisher? How far away is the fire hydrant from your home? Do you have anti-lock brakes on your car?

The list goes on and on. These types of questions determine the premium or price you'll pay to get the coverage you need. In some cases you may be rejected because you may be a high risk. However, don't give up there are plenty of companies out there, but do your research.

All insurers are different, less expensive is not always better so shop around and make sure you're happy with your policy. Most of all look it over and make sure that everything is in order and correct. Also, make sure you requests discounts depending on how you answered the questions above. Remember it is their job to drill you for answers so be prepared and do your research. The best advice is to speak to friends and family about what insurance companies they use. Having any type of insurance is better than having none at all.

We Americans waste approximately $300 billion a year because we forget to ask for discounts. Make sure you add items to your policy to keep it updated.

Another great suggestion is to video tape your entire house and its contents. Pay special attention to those high priced items, video tape the inside and the outside of your home. Include a list of those items in a nice typed out sheet describing items and their locations. Send your insurer a copy because if anything happens you have proof of your belongings and how much they are worth. It is best to keep this copy of the video tape and list outside of your home. Perhaps your sister Susie can hold on to the copy. Be prepared, we're in a crisis in this country, but this goes out to others around the world. We're all in the same boat. So, protect your family and your home for just a few dollars a month. Check out my "Money Saving Tips" page for excellent ideas to save money.

Remember an insurance company is not your friend especially when something terrrible happens. If you file for a claim the insurer will send a claims adjuster to check things out to verify validity of your claim. They are through, tough and heartless. So the better you're prepared the better you'll be in the long run.

Click on Estate Planning to learn all about estate planning and the documents you need to protect yourself and your family.

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