Insurance Companies Can Easily Spot Fraudulent Insurance Claims

Fraudulent Insurance Claims Are Easily Spotted

Spotting fraudulent insurance claims is an important job for most insurance companies. The mounting losses from false and fraudulent insurance claims reported by customers can reach into the billions of dollars each year. Money lost from fraudulent insurance claims comes directly out of the insurance companies’ coffers and results in an overall insurance cost increase for honest customers. Many people mistakenly think that they can get away with filing a false claim, but the insurance industry watches claims meticulously. Insurance companies in the United States watch for suspicious indicators in order to help them prevent losses from fraudulent insurance claims cases. For example, an insurance company may conduct additional investigations before paying out a suspicious claim if the policyholder has a high debt … Read more

How to Prepare Your Finances and Home for Hurricane Season

How To Prepare Your Finances And Home For Hurricane Season

The Atlantic hurricane season runs from June through November. August and September see the worst of hurricane season. According to the Weather Channel, August sees more than three times the number of storms as July, and it keeps building in September. September is the peak time of the year for hurricane season in the United States. And, most insurance companies require you to have homeowner’s, renter’s, or flood insurance for at least 30 days before your coverage kicks in and you can make a claim. So, now is the time to look at your home and insurance and prepare your finances for hurricane season. I grew up in Charleston, South Carolina. I lived through Hurricane Hugo in 1989 that ripped … Read more

Affordable Home Insurance Checklist – Are You Paying too Much?

Home Insurance ChecklistPeriodic review of our personal finances extends to many areas. Portfolio rebalancing helps your investments match changing time horizons and risk tolerances. As our families grow or coverage options change, we must review our health insurance for the best choices.

Home insurance is an essential cost that may not receive the same attention. Houses are not as dynamic in comparison to investments or healthcare. Unless moving, many homeowners rarely check their home policies.

However, checking your home insurance coverage for overlaps or excess coverage can yield instant savings. The process is also simple and time efficient with a potentially big ROI.

First time buyers and existing homeowners alike can benefit from a few practical steps.

Here is a home insurance checklist to get started:

Choose a Sensible Deductible

A sensible deductible results in month over month savings that is leverage for:

  • Investing
  • College Savings
  • Debt Reduction
  • Meeting Monthly Expenses

You can speak with an agent to discuss the impact of raising deductibles on premiums. A practical deductible protects homes yet leverages savings to improve personal finances. Even in the instance of a small claim, the time value of money may pay for itself.

The time value of money as leverage: A dollar is more valuable today than at some date in the future, which is seen in inflation or other economic concepts. The monthly savings from a higher deductible are leverage to increase investment contributions or chip away at principal on debt.

Investment Manager Elliott Broidy is among the money managers known to consider money’s time value when making portfolio decisions. The same approach has everyday value to consumers, as well.

Savings on interest expense from credit cards or compounding investment returns can exceed out of pocket costs on home insurance claims.

Each situation is unique, but you may consider working with an agent to discuss the value of each insurance rider beyond catastrophes.

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Understanding and Saving Money on Homeowners’ Insurance

The following is a guest post from Pete Briger. Pete serves as a Principal and Co-Chairman of the Board of Directors at Fortress Investment Group LLC. Fortress has become one of the preeminent investment management firms in the world and currently oversees more than $50 billion in assets. If you would like to write an article for Money Q&A, please visit our Guest Posting Guidelines page. It pays to fully understand the types of homeowners’ insurance out there so that you can decide on the policy that is right for you and your family. By understanding the structure and terminology that goes along with the insurance industry, you’ll be in a better position not only to select the best policy for your needs but … Read more

Filing Too Many Small Claims Can Hurt You

You purchase home insurance to protect yourself if something major goes wrong such as a pipe that bursts, there is a fire, or some other peril.  In fact, most mortgage companies require you to have homeowner’s insurance if you have a mortgage on your house to protect their stake in your home as well. However, insurance companies are not in business to pay out too many claims. They would quickly find themselves out of business if they did that, and they take a negative view on customers filing too many claims in a short period of time as well. This is considered a red flag, and you can quickly find your insurance premiums going up or worse. What Is Considered … Read more

Not Living At Home? You May Need Vacant Home Insurance

You May Need Vacant Home Insurance

You may need vacant home insuranceI didn’t realize that my wife and I may need vacant home insurance after deciding to become landlords until a family member mentioned it. You are at risk of violating your homeowner’s insurance policy if you move out, no one is living in your home, and you do not have the right insurance coverage.

You run the risk of having a claim denied because you did not keep your insurance company informed of changes to your situation.

What Is Vacant Home Insurance?

Vacant home insurance is just what it sounds like. When you move out of your home and it has been vacant for over 30 days in most cases (60 days with some insurers), you need to have a different type of homeowner’s insurance policy protecting your structure.

Vacant homes are often the target of vandals, thieves, and other criminals. And, vacant homes are also subject to burst pipes, flooding, and possibly fire without you realizing it because you are not there to check on your property.

Vacant home insurance is often a higher cost than your typical homeowner’s insurance that you have been paying while actually living in the home. Do not make the mistake of not informing your insurance company of the change.

Doing so can be grounds for denying a claim if you have to file one. Or, you could even face a cancelation of your homeowner’s insurance policy.

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