TheInsuranceBill

My guess is you are likely overpaying.  What’s the difference?  Overpaying can be thought of as allowing your policy, regardless of type, to renew year after year after year without checking in with your agent or company.  In that case most companies gradually allow an unchecked policy to go up in rate and likely not keep up with the needs of the owner.

Overpaying can also happen if you, for whatever reason, are “loyal” to your company.  I am not sure I understand this it is sort of like the political debate of whether or not corporations are people.  Loyalty is earned, typically by other human beings not companies.  Now if humans at the company treat you well or have provided great experiences I get it.  On the other hand if your rates have gone up year to year and your policy has not improved I do not understand why you are so loyal.

When else?  It is nearly impossible to say you are “overinsured” however it is possible to have coverage you do not need.  It is also possible to maintain physical damage coverage on vehicles that you may not be concerned over the status of.

Overcharged can likely only happen if a mistake was made.  Of course mistakes happen although it is fairly rare.  Now if you check on your policy annually and have even a basic relationship with your agent you should be  able to avoid this scenario.

Are they both avoidable?  Well overpaying certainly is.  How do you avoid it?

1. Hire a good if not great agent
2. Review your plans once a year
3. Reserve loyalty for people that earn it

Thanks for reading.

Yes I do, one at home and one in a nice space in Wappingers Falls.  Do I need an office? That is debatable.  Do you need me to have an office? Not really.  How often have you gone to your insurance company or agent’s office?  My guess is not often since there is no need to go.

This is not me advocating for the Internet just me trying to make a point.  The Internet is a wonderful thing, meeting people in person is even more wonderful.  Does the meeting have to take place in an office?  NO!

Heck if  you go into an office and it is full of file cabinets and desktop computers I might become a bit concerned.

You may want to read this.

So supposedly a Nor’Easter is making it’s way up the east coast bringing 3 inches of rain and maybe some snow.  So in the event it gets here and you or a friend has some problems that may mean an insurance claim here are some tips:

1. It is your job to try and limit the loss once it occurs.  Do the best you can to tarp over any damaged parts of your home.

2. The coverage you have is for your house and other buildings and structures.  If trees and branches fall in your yard you will likely not have coverage for the clean up.

3. Know a good tree person?  If the damage is sever things can get busy, better to call sooner rather than later.

4. DOCUMENT the damage before fixing it.  Emailing photos to your claims adjuster will be greatly appreciated

5. Should water get into the basement or other area of your home be sure to dry it as quickly as possible.

Just some thoughts, hopefully they do not need to be used.

Maybe it’s just me but my mailbox, inbox, tweet-stream, radio-stations and T.V. are not flooded with companies pitching a savings on my oil bill, electric bill, health insurance, lawn care and even my mortgage is not overrun with advertisements about lowering my bill.  Yet we review these annually if not sooner to make sure our rate is consistent.

Now compare that to the amount of insurance advertising you hear about “saving” money. The problem is none of it actually tells you how to consistently save.  The hope is you will call and provide your personal information and they will hope you fit into the rate structure they have available.  The odds of you getting some actually useful information about your coverage and adjustments you can make to customize your policy is pretty slim.  That’s a shame.

See your personal characteristics factor really heavily into your rate.  As important as they are you also need to adjust your attitude towards insurance.  It is a CRITICAL piece of your financial plan, give it the attention it deserves.  ONCE A YEAR, that’s it.  Maybe 30 minutes of your time.  Well worth keeping a consistent rate and protecting EVERYTHING you do the rest of the year.

questions?  To put it simply if you want a quote you do not need that many questions.  If however you want a policy that actually does something the more questions you are asked the better.  Most people prefer a plan that is customized to their situation as opposed to buying what everyone else has.  Every company has at least a dozen separate endorsements you can add to your policy.  Each household has something that makes them unique, why shouldn’t there policies also be unique to them?

Had a random encounter with a Tony nominated actress in a very popular Broadway show this weekend.  The thing is I did not know she was famous until I looked her up.  So she was a well regarded actress in a very popular show yet acted as polite and unassuming as anyone else on that street.

So many things to take away from this encounter beyond it being a cool moment in time.  The one that comes most to mind is if you really are that great, famous, have the best service, the best prices, the best features, etc.  It is ALWAYS better to have other people provide these comments and compliments than it is for you to advertise them.

That is what I think when I think of an insurance agent.  See when you sign up through an agent you essentially hire a resource, an advocate, a personal shopper, a friend, a source of funds for your charity, a referral source, a new connection, etc.  You also spend locally and help strengthen your local economy.  Yet you do not pay for any of this the insurance company providing the coverage does.  Why would you not want to hire all those people for no additional money than what you already spend on insurance?  I have no idea.

That’s right if you have tenants make sure they get renters insurance!!  So why do you insist that your tenants get renters insurance TO PROTECT YOU.  That is right renters insurance actually protects you as the landlord.  Look at it as another layer of protection for you, your business and your assets and unlike your policy your tenant(s) pay for this one.

So your tenant is having guests over and these guests happen to hurt themselves.  Whose fault is it?  Since you do not get to decide and any attorney will name all possible parties you better make sure your tenant has money to pay for their share of a possible lawsuit.  What if there was damage to your property and the tenant was found liable.  Would you want them to have money to pay for damage to your property?

Also, one of my favorite parts about renters insurance is rarely talked about.  So there is a fire or water damage or something weather related and you cannot live in the home/apartment, now what?  It’s called “loss of use” coverage and is built into a renters policy.  This coverage will actually pay for your temporary living expenses while your home is being repaired or while you look for a new place to live.  Heck your landlord has coverage so he can collect the rent when you cannot live there why wouldn’t you want money to pay the rent as well?

How about you have them get it just because you know it is in their best interest?  Yes, very diplomatic of you however not as useful as writing it into the lease.  Although it is logical for a renter to spend $8-$20 a month for a basic plan many choose not to take this step.  So help them protect themselves and while your at it enjoy the extra layer of coverage you will get as a result.

Bottom line is why wouldn’t you want your tenants to have all the benefits that renters insurance provides for both of you?  MAKE IT PART OF THE LEASE YOU ARE DOING EVERYONE A SERVICE

**Feel free to check with your attorney**