Are You Properly Insured..?

Homeowner's insurance policies are based on the value of the structure. It's quite simple to determine what the amount should be for the structure. But how do you know if your contents are properly insured?

Most insurance companies base the personal property (contents or possessions) coverage on a certain percentage of the amount for which your home is covered. That number is typically anywhere from 50% to 75%. So, if you have a home insured for $200,000, and you have coverage at 50% of your structure value, you would be insured for up to $100,000 for all of your personal property.

Is this coverage enough? Unless you have a receipt for everything you own, the best way to determine this is to compile a home inventory. Record your belongings room-by-room, the format preferred by insurance companies. Log the manufacturer, model numbers, serial numbers, cost and when purchase dates. If something is unique, additional descriptions are helpful. Take photos of full room views as well as close-ups of special items. Don't forget the exterior, garage and any other buildings on your property. This seems like a long, detailed process. If it's something you choose not to do, hire a professional inventory service provider. The cost is reasonable; usually approximately the cost of your deductible.

This inventory will give you a list of what you own and the estimated cost to replace the items if you should face a theft, fire or natural disaster. Once everything is listed, you can total the costs to determine the true value of your belongings.

Next, you'll want to check your policy to determine the limits that your policy stipulates. There are quite a few items that limit what the insurance company will pay out unless you purchase a rider. Some of these limits, the common ranges are:

- Jewelry: $1000-$3000 

- Guns: $1000-$3000 

- Silverware: $1000-$3000 

- Business Personal Property: $1000-$2500 

- Sports/Stamp Collections: $1000-$2500 

- Money: $200-$500

Do you have a lot of high-end electronics, expensive furniture or other household items that add up to more than your current policy? It might be in your best interest to purchase additional coverage.

If you have a large amount of jewelry, guns, collectibles, etc., you will want to purchase riders for those special items.

The cost of additional insurance is minimal compared to your potential loss. And if you haven't experienced a disaster after years of paying premiums, you can be thankful for your good fortune. The value of peace of mind cannot have a dollar sign attached to it.

Property Insurance

It is important that you protect your property and the things that you own and one of the best ways to do this is having property insurance. There are many different types of property insurance and usually you can get this type of insurance along with your homeowners insurance.

 You will also save money if you get multiple insurances form one provider so make sure that you ask your agent about any discounts they may offer. You never know when your house may get robbed so you need to get insurance to protect those things that you have worked so hard to get.

You want to make sure that when you are searching for property insurance that you compare the rate that you are going to pay along with the actual policy. It is very important that your policy will cover any items that get damaged or stolen so that you can replace them. Just check the policy and see what the maximum coverages are and what they cover as far as a fire, theft, etc.

Many people feel like spending money on insurance is a waste but if you find yourself in a situation where you stuff is damaged or stolen then it is just pennies because the cost to replace those items will be much higher than what the insurance is going to cost you.

You may want to also talk with an agent and ask them about the different policies and coverage that you can get. If you decide to still search online for the best price it is a good idea to get informed before you make a purchase.

Property Insurance

It is important that you protect your property and the things that you own and one of the best ways to do this is having property insurance. There are many different types of property insurance and usually you can get this type of insurance along with your homeowners insurance.

You will also save money if you get multiple insurances form one provider so make sure that you ask your agent about any discounts they may offer. You never know when your house may get robbed so you need to get insurance to protect those things that you have worked so hard to get.

You want to make sure that when you are searching for property insurance that you compare the rate that you are going to pay along with the actual policy. It is very important that your policy will cover any items that get damaged or stolen so that you can replace them. Just check the policy and see what the maximum coverages are and what they cover as far as a fire, theft, etc.

Many people feel like spending money on insurance is a waste but if you find yourself in a situation where you stuff is damaged or stolen then it is just pennies because the cost to replace those items will be much higher than what the insurance is going to cost you.

You may want to also talk with an agent and ask them about the different policies and coverage that you can get. If you decide to still search online for the best price it is a good idea to get informed before you make a purchase.

Liability Insurance

The present economical crisis is encouraging many to commence new careers especially as beauty practitioners. The growing number of these new small business owners may suggest prosperity to holistic therapies schools and a large variety of professional beauty seminars and colleges. The problem is that it comes with the need to consider the responsibilities and liabilities that come with the new occupation acquired.

On the one hand it is a simple solution, and a good opportunity to make some money in the comfort of one's home, and maybe use the family car for business, but, on the other hand, a customer can perceive you did them wrong, or in a worst-case scenario, treatment may cause actual physical damage or injury to the customer.

Of course, there are insurance solutions and protections that can be acquired, but the beginning practitioner is not very keen on spending any money before actually seeing an income from their new career. Well, those who cannot afford insurance are exactly those who cannot afford exposure. The right time to commence a liability insurance coverage is actually BEFORE the newly-trained practitioner commences activity. The best time to acquire coverage is at the time of training, while still a student, when no previous event may affect future coverage. The risk has not been taken yet, and the coverage will ultimately be upon all future activities.

Another important reason to purchase insurance early is that in many cases, students commence practicing in order to either improve their capabilities, or out of the need to earn money.

The cost of insurance scares many from buying the right coverage. It is not necessarily true in all cases. Insurance costs are closely connected to the exposure and risk the insurance company is taking: 

• The smaller the sum insured, the lower the premium. 
  
• If a higher deductible can be sustained, the premium will go down even more. 
  
• Sometimes when purchasing a comprehensive policy that includes all necessary liability chapters, it is possible to obtain a better premium rate for such a policy. 
  
• Many professional associations either offer or arrange discount rates for their members or include them in their liability cover when they become members. This saves a significant amount of money, as such organizations negotiate with insurers for large groups and obtain better terms, both in costs and terms of coverage than individuals are able to obtain by themselves.
  

Many times you can tailor your own coverage, and find out that coverage can be obtained at quite reasonable cost. There are a number of chapters that are musts in liability coverage:

1. Public (General) Liability: this will cover you against claims made against you resulting from injuries or property damage for which you are legally liable. Remember - even if you have a public liability clause in your household insurance policy, in most cases it will not cover claims that are connected to your business practice. 
   
2. Professional or Malpractice Insurance: this will cover your professional conduct. Combining the two aspects of coverage, professional conduct and malpractice, will provide you with comprehensive cover. Although these claims are also defined as ones to which you are legally liable, it is common practice in the insurance industry to exclude from a policy coverage that can be purchased under another type of policy, therefore, neither public liability nor professional liability policies by themselves will be sufficient to cover general public liability. 
   
3. If you are applying certain products in the course of your practice, you should also be protected against claims resulting from product liability. If you use products that are manufactured by a recognized manufacturer, the coverage you require can be restricted to legal protection and not liability for the product itself.
   

Liability insurance is not compulsory in most cases, but it is a must, especially for new practitioners in any industry, and specifically for those who treat people directly. The cost is a problem in some cases, but the risk of being left alone to deal with a claim is by far more problematic, and in many cases, the resulting cost far higher.

Personal Property Insurance

There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don't know how they are going to recover. For the coverage on the contents of your home or business, the personal property policy outlines what you will need to provide to receive your insurance settlement.There is a standard verbiage in these policies. Under the Duties After Loss heading, you'll discover some statements that might surprise you, and of which you need to be aware.

One statement is that they have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example). You must notify your agent or the insurance company promptly. In the case of theft or loss, you must also notify the police. If there is an investigation of your claim, you will be expected to cooperate fully. You'll be required to prepare an inventory of the damaged items, listing the quantity, description, actual cash value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested.

A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company's request. The proof of loss will state the time and cause of the loss, other insurance that may cover the loss, the inventory of the personal property.Insurance policies vary. Check yours to make sure you understand what will be expected of you when you file a claim.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine trying to complete that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'd be experiencing?