Insurance and Financial Stability
All month we have been talking about resolutions, but I’m not sure we have really touched on just how hard they are to keep. As we get to the end of January, many of us have already broken ours. I told myself I would eat better; go to the gym more, and save money. Truthfully, I figured if I gave myself three, I’d at least have to keep one, right?
While my health is important, I already am pretty good about what I eat and my exercising so if I’m being honest, the most important resolution I can keep this year is to save money. It may also be the most difficult. Many of us do not have a lot of disposable income and the little we have we need for things that aren’t so disposable.
Are there any tricks to saving money? One of the areas where most people tend to complain about their bills is when it comes to their insurance. Especially when it comes to insurance, I think it is important to think about financial stability and saving in the long run, not just saving right now.
First, it’s easy to complain about something when you aren’t using it. The minute a car accident or break-in or any other incident takes place, that bill seems a little smaller as it is. Second, as your agent we encourage you to contact your agent and ask about any discounts you may be eligible for that you are not currently receiving.
This blog is to help you become more financially stable, but also to keep the right coverage and enough coverage for the things you care about, whether that is your home, car, boat, etc.
Ways to Become More Financial Stability:
- Renters Insurance
- Specialty policies
One of the buzz words in insurance advertising today is “bundling”. While most advertisements talk about money you can save there are also other benefits. In general bundling auto and home insurance can save you as much as 20% to 30% on your insurance, and that is a good thing.
Another very good reason to bundle your insurance is to avoid a gap in coverage. Having all your insurance with one company can help to balance the coverage from home to auto, and protect you for liability whether it is in your personal pursuits in life or driving your car. In some cases if your home and auto insurance are with the same company and you have a loss involving both the home and auto, for example: you hit your garage while backing out, you may only have to pay one deductible even though one loss is a homeowner’s loss and one is an auto loss.
Another bundle to consider that could end up saving you a lot of money in the long run is an umbrella insurance policy. No matter what your situation in life is, chances are you could use one. Recently, my mother asked about an umbrella insurance policy because she has a young driver. She heard from a friend that if my younger sister got into an accident and someone was injured or worse, they could sue her and go after my parents. She was right; this was a great example of someone who may not think of themselves as having a lot of assets, but really needing an umbrella insurance policy.
Renting? Get Renters Insurance
One of the most affordable insurance policies is a renters insurance policy. In many cases for less than $200 a year you get coverage for your personal property, expenses to relocate if your apartment becomes uninhabitable due to a loss, liability coverage for your personal pursuits in life and medical payments to others if they get injured on your property. Many people believe their landlord’s insurance policy will cover them, this is not the case. The landlord’s insurance policy only covers property owned by the landlord and his legal liability.
Need another reason to get renters insurance? It could save you money on your car insurance. That bundling benefit isn’t just for homeowners and renters can really benefit for it. In fact, your car insurance bill could possibly go down when you combine your renters insurance and car insurance with the same company. If you are renting an apartment, home, or whatever the situation may be and you don’t have renters insurance, call 888.865.1244 and at least get a quote. The cost may really surprise you and the discounts on your car insurance may surprise you even more.
Remember above when I mentioned focusing on financial stability and saving money in the long run and not just right now? Specialty policies are a perfect example of that. Recently, there have been earthquakes in Massachusetts and Connecticut. They have not been significant and did not cause damage. If they did, you wouldn’t be covered by your home insurance. Many people do not know that until it is too late.
If you are in an area at low risk for an earthquake, an earthquake insurance policy is extremely affordable. It is also very easy to get. It is not even its own policy, it is added on to your current home insurance policy. Even if it is about $20 a month, doesn’t that seem worth it for the peace of mind that coverage can bring.
The same can be said for flood insurance. Your home insurance will not cover flooding so if your home or furniture suffers flooding damage you would have to pay out of pocket. Water damage can become very costly very quickly. Some people think if they do not live near water they are not at risk for flooding. This is simply not true, in fact 1/3 of all flood insurance claims come from areas outside of “high risk” areas. A heavy rain storm or snow storm can cause flooding and all areas are equally at risk for things of that nature.
The above are just a couple of ways insurance and insurance discounts can help you on the road to financial stability. As we always remind you, if you have questions about your insurance policy or need a quote, give us a call at 888.865.1244.Read More