Let me share a story with you about a friend of mine. Let’s call him “Brandon.” Recently, Brandon bought a new car, but opted out of certain coverages like gap insurance to save a little money on his monthly premium.
Unfortunately, he got into an accident and his car was deemed a total loss, less than a year after he bought it. He owed more than the car was worth and had to actually pay money to get out of his loan. Had Brandon been properly insured, his coverage would have helped him out so that he could have been less financially impacted.
Moral of the story? Being properly insured is something that everyone—even young adults—should think about. Here are three reasons why:
Peace of mind
No one ever wants anything bad to happen to them. However, sometimes not-so-great things come when we are least expecting it. The right amount of insurance coverage can help get you through tough times.
For me, the peace of mind that insurance brings helps me worry less about unexpected large bills.
You may say to yourself, “I’m young … what could I possibly have to insure at this point in my life?”
The answer is “a lot.” You have yourself (think liability insurance for when you drive, life, health, etc.), your car if you have one, your home or apartment–even your belongings that you’ve worked hard for, like your electronics, clothing, furniture and more.
Just because you can’t see the benefits of insurance right away like you can a tangible object, if you gamble and go without insurance, you could cost yourself more in the long run. By paying smaller amounts now through your insurance premium, you protect yourself from higher costs that may happen in the future. Think of it as a way to budget for the tougher times in life.
When you buy insurance, you’re also getting an advocate to help you through a trying time.
An insurance company may be able to help you get the money related to an accident, find a mechanic, get through a travel problem, and more. Insurance professionals are experts in helping people through difficult situations.
Insurance is there to help you manage whatever life may throw at you in the future. Think of it as a way to budget for the tougher times that inevitably find us all at certain times.
By: Michelle Schroeder-Gardner, Progressive InsuranceRead more
A vacation home can be a wonderful luxury and sometimes even a good investment, but there are some important factors to consider before making the leap into second-home ownership—such as insurance costs. Just like your primary home, you’ll need to insure your vacation home against burglary, fire, weather damage, liability and other risks. Because insurance can add significantly to the price of buying and owning a vacation home, you may want to consider the likely insurance costs before deciding on a specific property.
Key Factors Impacting Vacation Home Insurance Costs
For a number of reasons, insurance for a vacation home can be more expensive than the coverage on your primary residence. Notably, your second home may often be unoccupied, putting it at greater risk for theft, vandalism and undetected damage, like burst water pipes. When you shop for a vacation home, it’s important to recognize that the following factors will impact your insurance costs:
Location—The location of any home is always a factor in pricing insurance policies, but it can be especially significant for vacation homes. The very location that makes a vacation home desirable may also make it more expensive to insure. For instance, a ski house or hunting lodge in a remote or mountainous area could be at greater risk for damage due to wildfire. A beach house may be more exposed to wind damage or storm surge from a hurricane. These location-based risks will impact the price of coverage, and in some cases may even incur higher deductibles.
In addition, if the home is located in a flood zone, you’ll be required to purchase a separate flood insurance policy. Flood damage is not covered by standard homeowners insurance policies, but coverage is available from the National Flood Insurance Program (NFIP) and from some private insurance companies (like Boizelle Insurance). The cost of NFIP flood insurance for second homes has been increasing and there are also special surcharges that you will be required to pay. You can check the cost of flood insurance for a specific location by going to www.floodsmart.gov. You can also lower your insurance costs by choosing a location with less risk—for instance, further from the beach, down the mountain or in a gated community where there is security.
Type of Property—As is the case with any house, a vacation home’s age and types of building materials used will impact the cost of insurance. In addition, these costs will vary depending on whether your second home is a single-occupancy house, a condominium or a townhouse. A condominium, for instance, may have lower insurance costs because the homeowners association maintains and insures the exterior of the property and may provide security. Generally, the cost of insuring the structure of the unit will be included in the monthly maintenance fees. Your personal condo insurance will cover your belongings and specific areas of the unit listed in the policy.
Amenities—If your vacation home has a pool, hot tub or other special amenity that adds risk, you may pay a higher insurance premium. You may also want to purchase more liability protection as these items are considered “attractive nuisances” that lead to a higher probability of liability claims being filed.
Ways to Save on Second Home Insurance Costs
While the price of insurance will increase the total cost of ownership of a second home, there are steps that you can take to help make insurance more affordable:
Will You Rent Your Property?
If you plan to rent your vacation home to others, your homeowners insurance costs will likely increase, and you may need to purchase additional coverage. Your insurance needs will depend on how often you rent out the property and for how long. For a one-time short-term rental, you may be able to add a simple extension (an “endorsement”) to your existing homeowners policy. On the other hand, if you plan to regularly rent out your second home, you may need separate business coverage or a landlord policy. While some rental services, such as Airbnb and VRBO, offer coverage for homeowners, it’s important to read the fine print to determine limits and exclusions.
Because renting your second home entails additional, more complex risks, it’s a good idea to consult with your insurance professional. Call Boizelle Insurance today!
Originally posted by: Insurance Information InstituteRead more
Writing a check for car insurance isn’t your favorite thing in the world. We get it. Here are a few tips to help you get great auto insurance coverage—while paying less:
At Erie Insurance, it’s our job to keep you safe and covered—but great coverage doesn’t have to break the bank.
Contact Boizelle Insurance to find out how you can reduce your premiums while keeping the level of protection you have learned to expect.
Originally Posted by: Erie InsuranceRead more
Do you know how much it takes to raise a child these days? Are you sitting down?
That would be almost a quarter of a million dollars.
It costs $245,000 to raise a child born in 2013 until they hit 18, according to the U.S. Dept. of Agriculture.
This is not about a luxury upbringing. This is no Kardashian-esque baby outfitted in cashmere onesies. This is not about a privileged college education, because these numbers do not include the cost of college. That’s extra. Add on about $18,000 a year for public and $41,000 a year for private college.
This number—$245,000—is a place to live, food, clothes, health care…the basics.
You’re here to take care of these expenses now. But what happens if something were to happen to you? If an average middle-income family is spending around $13,000 a year on their child, that money would have to come from somewhere.
That’s where life insurance comes in. If you take between one and two percent of what you already spend on your child each year—or about $200—it could pay the yearly premium for $250,000 in term life insurance coverage. If something happens to you, your child would be okay financially.
We’ve used a healthy 30-year-old dad or mom (who doesn’t smoke!) who gets a 20-year level term policy for the above example. Age and health will vary the amount of your premium—as your age increases or health decreases, the price goes up.
But the truth is, setting aside one to two percent of what you’re already spending on your child is a small price to pay to protect them. There’s no reason to wait. To help you figure out how much life insurance you might need, contact Boizelle Insurance. We can help you decide the amount and type of protection is right for you, and how affordable life insurance can be to protect the ones you love most.
By: Erie InsuranceRead more