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

The Fine Line Between Too Much Insurance and Not Enough

You need to protect yourself with umbrella insurance.

A few weeks ago I wrote a guest post on one of the biggest personal finance blogs around, Free Money Finance, about the ten insurance policies that everyone should own. There is a fine line with having too much insurance. I took some heat in the comment section of the post from people who said that the ten different types of policies I listed would leave me insurance poor. Maybe they would do that, but maybe they wouldn’t. How many policies are too many? How Many Policies Do You Need? Do you need ten different insurance policies? Maybe you do need them, and maybe you don’t need that many. One commenter actually listed a few policies that you should have that … Read more