Home Insurance Explained to Help Protect Your Largest Asset

Home insurance is an essential expense, given the exorbitant cost of living in this present world. After having to invest heavily in a new house, it is important for homeowners to plan for any unexpected repairs that may be required to ensure the structural stability and usability of the house. It is also equally important to secure personal possessions at all times. There are several types and levels of home insurance spanning coverage for the structure, contents, utilities, natural disasters and so on. The value of the policy varies and is usually based on the nature and extent of cover opted for. While the responsibility of insuring the building or structure largely lies with the owner of the property, insurance … Read more

Insurance Companies Canceling Policies Might Not Be a Bad Thing

Can a Insurance Company Deny a Claim?

I saw a segment on the news recently that highlighted a family whose insurance company had canceled their renters’ insurance policy. The family in question filed two claims against their policy over the holidays after burglars broke into their home before Christmas and again just before New Year’s. As a result, their insurer dropped them. Of course, the timing was horrible, and the local media covered the story exhaustively. But I’m glad the insurance company canceled their policy, and you should be happy, too. Here’s why: What are the odds of a family having two robberies in such a short span of time? It’s very unlikely. In fact, such unusual circumstances are strong warnings of potential fraud. And while I don’t … 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

5 Reasons Why Your Homeowner’s Insurance Claim Could Be Denied

Understanding the full coverage and limitation of your homeowner’s insurance policy is key in avoiding the possible denial of a claim you might file later. If you’re getting ready to file a claim and don’t want it returned with a big red “DENIED” stamped on the front, then it’s important to go through your contract with a fine tooth comb and ensure that your claim isn’t going to fall into the following denial cases. 1. Your Claim Could Be Marked “Negligent” Let’s say that your home has had a bit of a termite problem that you’ve been meaning to take care of, but unfortunately, the latest monster hurricane decided to take out your roof before you got the chance. When … Read more

What You Need To Know About Parties And Your Homeowners Insurance Policy

What you need to know about house parties
What You Need To Know About Parties And Your Homeowners Insurance Policy
You may need house party insurance when you're the host.

Your house parties can be extremely fun events. You get to have a bunch of friends over, chat about old times, maybe you have a band, and you do some dancing! However, whenever you have events at your home, you open yourself up to more liability. It can come in many forms, but you need to make sure that you protect yourself from liability.

House Parties Increase Your Liability

By having guests in your home, you expose yourself to liability. This can come in many forms. For example, someone could slip and fall and injure themselves at your home. If you have catering, someone could get food poisoning. Finally, if alcohol is served, you could be liable for injuries even if someone gets injured on their way home because they were driving drunk.

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