It's Too Hot To Go Out--Why Not Check Your Insurance

The "Dog Days" of summer are upon us--it's too hot to spend much time outside, so why not use the time you spend inside to check on your insurance coverage? Most of us get our vehicles and homes/belongings covered and then just pay the bill every six months without looking through the mounds of papers which are sent with the bill. We never check to see if our coverage meets our needs five years later and don't bother thinking about it until we need to make a claim. We should however, check our policies at least once a year--after all, we have the insurance to reduce our financial risk if something were to happen--but if we don't have coverage, for example, on the jewelery we've accumulated over time, then it won't pay a dime when that jewelery is stolen or lost.

Check on:

• Does your homeowner's insurance cover the value of rebuilding your home--don't rely solely on the insurance company's estimate--check with a reputable, licensed contractor to see what the cost would be to rebuild.
• Should you have rider, or additional, policies for jewelery, collectibles, electronic equipment, firearms etc?
• Consider flood insurance--seriously. It's not just for those who live in "flood" zones. Homeowner's policies exclude damage from floods. According to FEMA--"a flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall" so it's possible for your house to be flooded by a major rainstorm and you won't get any help from your insurance company. Check on www.floodsmart.gov for more info.
• Depending on where you live, consider earthquake insurance ( as someone who felt that earthquake in Maryland last week, I could rest a little easier knowing that I had earthquake insurance).
• Do you have a need for an umbrella insurance policy--one that covers your assets more broadly than the homeowner's or auto policies? Definitely something to consider if you have teens driving in your household.
• Do you have a college student who is living in a dorm and does your homeowner's insurance cover their belongings at school? If you student is living off campus in an apartment, get them renter's insurance.
• Do you have replacement value for the belongings in the house--if not, you'll get pennies on the dollar to replace the items.
• What is your deductible for homeowners or car insurance? We like to raise the deductibles since it lowers our yearly payments--but can you really handle that deductible if you needed to make a claim?
• Many states permit the insurance company to check your credit report when determining the premium for you auto insurance--check your credit report yourself first at www.annualcreditreport.com 

For more information on making sure your insurance is meeting your needs, check the federal government's www.mymoney.gov pages on insurance. Take 30 minutes now and protect your financial future from risk.

Where’s my Car?*!

Heading out to shops and restaurant this summer? If you are parking in tight metropolitan areas, be sure to look for signs all around the parking lot where you are thinking of parking. If you could be towed from that lot, there will be signs saying “parking only for customers of……” or something similar to let you know what are the conditions for parking there. You need to take these signs seriously. The businesses which operate the lot are--rightfully so--trying to make sure their customers can park there.

If you come back to find your car missing, call the non-emergency number for the local police-most areas require the tower to log the tow in with them so they can direct you on where to locate your car. If you are towed without your permission, there are maximum rates in most of the metropolitan areas which should be posted by the tower. In addition, many, but not all, towers must accept payment by either credit card—Visa or Mastercard-or personal check. Keep in mind that the tower has the right to choose between these two methods of payment.

Be sure to inspect your car before you leave the tower’s lot—note any damage on the towing receipt. Usually a towing company may not tow a car which has a valid handicap registration plate or disable permit—unless a police officer authorizes the tow or the vehicle is blocking a clearly marked fire lane or access to another vehicle.

Avoiding a distressing situation like this is the best course of action—don’t have the attitude that “no one cares if I park here” or “hey, my car can fit here, so I’m taking this spot”. Look carefully where you put your car to make sure it’s there when you get back after that great dinner/shopping trip!