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 Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall" so it's possible for your house to be flooded by a major rainstorm and you won't get any help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!

Airport Shuttle Companies

Many consumers travel via air over the summer and don’t want to leave their car at the airport. One option is using an airport shuttle company.  However, some consumers have experienced problems with those companies, such as the shuttle not showing up at all or showing up so late that the consumer misses their flight. Consumers considering using an airport shuttle service should:

• Plan ahead. Take the time to check out different companies to ensure you are dealing with a reputable and reliable company.
•  Check out the company’s complaint record with local consumer protection agencies or their local Better Business Bureau.
• Research various methods of getting to the airport.  If you have several people traveling together, it may be less expensive, and reduce the travel time to the airport, to hire a private sedan service.
• Realize that if you use an airport shuttle service, you probably will be sharing the van with other passengers.  Make sure you request to be picked up in plenty of time so you can arrive at the airport within the required time before your flight leaves. Depending on the number of passengers the van will be picking up, you may need to be picked up two to three hours before you are supposed to be at the airport.
• Get a receipt for each ride on the shuttle.  If you have a problem with the service, record the reservation number, company number of the van and license number of the van before it leaves.
• When using a shuttle service for a trip from the airport to your home, make sure you are using the service you contracted with.  Many different shuttle services visit the airport and the vans often tend to look alike, especially in the dark.  If you have prepaid for the service and you accidentally get into the wrong van, you will end up paying twice.
• Make sure you take all your possessions when leaving the van.  It is often difficult to recover items left on the van.

Is a Move in Your Near Future?

Summer is without a doubt the busiest time for moving.  If you have ever moved, you know it is stressful—even when things go well.  However, there are several steps you can take to have a successful move and minimize your stress.

• Get several written estimates, based upon on-site inspections. Telephone estimates are seldom accurate and often result in higher prices on the day of the move. Know your rights if the mover tries to increase the price on the day of the move—some states have laws prohibiting the mover from engaging in the age-old practice of loading your goods on the truck, raising the price and then refusing to unload your goods unless you pay the higher price—in these states, the mover must unload your goods and then take the dispute to court.
• Don't choose on the basis of price alone.  Check out the company—how long it’s been in business, and if there are any complaints against it with either local consumer protection agencies, online consumer complaint sites or the BBB. Make sure there is a physical office for the company and that it has the proper licenses and insurance.
• Read and be sure you understand the terms of the Bill of Lading (moving contract) and in what form (check, cash, cashier's check, etc.) the mover will require payment.
• Get everything in writing, including the mover's liability in case of breakage or loss of your possessions. Most movers limit their liability for damage or loss to only 30 or 60 cents per pound. Therefore, give careful consideration to buying additional full replacement insurance to cover loss or damage. Keep accurate records or an inventory of all items shipped and their condition. Check items as they arrive.
• If it’s a local move, consider packing and moving rare or fragile things yourself. You don’t have to pay for boxes—just go to your local grocery store in the morning after they’ve stocked the shelves—they usually have lots of great boxes that they are willing to give away.
• Write "Subject to further inspection for concealed loss or damage" on the moving contract to allow for damage you may discover after you've had more time to check your possessions.
• Check to see if the mover is a member of a trade association—which often tries to screen out unreliable movers and will arbitrate complaints.

If you spend the necessary time to select a reputable mover and get all details in writing, it will help to make your move smoother. You’ll notice I didn’t say it would be rosy—any move is tough, so do your homework, and have lots of patience on the actual moving day. For more information, see this

 Washington Post article.

MD CASH Academy

Looking to build your financial IQ? If you live in Maryland, you have a great new resource--a client of mine--The Maryland CASH (Creating Assets, Savings and Hope) Campaign just launched a new website, the Maryland CASH Academy, www.mdcashacademy.org, which lists free or low cost financial education. The MD CASH Campaign is a statewide non-profit, that assists low- and moderate- income working families by offering financial education and asset building programs.

Whether you are planning to purchase a new home, start a small business, or you need help understanding your credit or managing your money, the Maryland CASH Academy offers free classes taught by screened educators to meet your needs. No products or services will be promoted during the classes--they will be fact-based educational classes. You can sort through the classes by Topic; Location; Educator or Date and register online.

Check out the website for the Maryland CASH Academy today to join our mailing list and get up to date information on classes and trainings!

If you live in Delaware or Connecticut, you’re in luck too—those states also have online calendars of financial education courses:
www.ctmoney.org
www.delawaremoneyschool.com