Why Buy Insurance?

I just read this article and the parts about renters' and homeowners' are spot on.  I had never been to mint.com before, but have heard of them from friends that use them to balance their financial lives.

http://www.mint.com/blog/how-to/rethinking-insurance-06292010/

Let me know what you think.

Tropical Storm Alex

Whenever we see stories about tropical storms and hurricanes we think about Florida, Texas and of course New Orleans, LA.  Those, along with Mississippi and Alabama are the usual suspects of "Named Storm" damage.  Insurance policies in those states are much more complicated and unique than policies we would find in, say, Chicago.

So I wanted to just touch on a few key differences that make insurance in Chicago a whole lot easier than in, Fort Myers, FL, or Galveston, TX.

Buying a New Car

It's not that you should necessarily consider the insurance costs when purchasing a new car, because there are a lot of more important factors to consider, but it's certainly one part of it.  We're going to cover a couple of common scenarios in this post 1) What do you need to insure your first car...and 2) What needs to happen when you're upgrading to a new car.

When you're buying your first car (new or used) to get insurance you're going to need basic facts about the car and driver(s).  On the car; Year, Make, Model, VIN.  If you're leasing it or have a loan, you'll need the bank/finance company's name and address.  On the driver(s): Name, DOB, DL#, up to 5 years of Accident/Ticket history.  Then it's just a matter of picking the right insurance carrier, which we covered here.

If you're upgrading your car, you should notify your insurance carrier right away. New cars (new or used) are sometimes picked up automatically on an existing insurance policy if you buy comprehensive and collision, but that's not guranteed. Your proof of insurance from your old car will suffice to get you off the lot (provided you're not crossing state lines).  Eventually you should notify your agent to have the new car added because if you pass 30 days there may not be coverage in case of an accident or loss.  I usually recommend making the change right away when it's on your mind.

If you have any questions please contact me and I'll be happy to chat.

Moving Apartments? Are you covered?

Most people don't stay in the same apartment year after year, so there is always going to be issues with moving.  Do I rent a truck?  Do I pay a couple of guys with a pickup truck?  Do I volunteer my friends to help me move and pay them with pizza and beer? (Insert Seinfeld reference here.)

Are your belongings and your liability covered when you're either in-between apartments or occupying more than one?  The answer here, as it is with most insurance questions, depends on the circumstances.  We'll cover a couple of those after the jump.

Moving Out!

Hi Dan:
My roommate and I are in the process of moving our apartment. We've basically sprawled out and are living out of 2 places! Is there anything we should do or know, insurance related, to help us with the transition and make sure we are covered?

Protecting Against Water Damage

A lot of questions about water damage come into my mailbox, so I thought I would address a one of the most common. What is the difference between Flood and Sewer/Water Backup? One of them can be included in your policy and one has to be purchased separately.

After the jump we'll examine each one and let you know how to tailor your insurance policy to suit your needs.

Affordable vs. Coverage

A question was posed about the desire to save money, but also have adequate coverage on personal property and belongings.  I have lots of thoughts, and some of them are actually relevant to this topic, I hope.

The balancing act between a quote that includes the coverage you need at the affordability you want is always there.  It comes down to choices like; what deductible can you afford should a loss happen? and what amount of insurance will allow me to rebuy everything that I'll need going forward?

Dan:

I'm trying to cut down on living expenses and am looking for any way to save money on my insurance. When I increase deductibles and lower limits my insurance cost decreases, but I don't know how to determine what limit or deductible I should purchase. I'm worried I won't buy enough insurance! Any advice?

What is my insurance actually covering?

Insurance policies are long...and detailed...and incredibly dry.  Remember some of your textbooks from school? Like that.  Your insurance agent is the best person to talk to about what is covered - and more importantly what isn't.

Here's a pretty comprehensive look at what is covered under most insurance policies and where many of them fall short from Forbes magazine. In the article they speak with an underwriter from MetLife Auto & Home, which is one of the carriers we represent at Gallagher.

http://bit.ly/9kpT4B

As always, contact me if you have more questions.

SOS - Stolen Winter Wardrobe!

Dan:

I'm a girl living in downtown Chicago and, as you can imagine, don't have a ton of closet space. I tried a "spring clean," but simply couldn't part with some of my beloved clothing items.

To try to solve my closet predicament I packed up my winter wardrobe and stored the suitcases in my car. Over the weekend my car was broken into and my entire winter wardrobe was stolen!

I currently purchase Auto and Renter's Insurance. Would any of these policies cover my stolen clothes?!

Do you have insurance questions? We have answers.

Please feel free to post any questions you may have in the comments section of this blog at anytime and the faithful writers of Personal Insurance Answers will get crackin' with a response.

Remember, whatever question you have is probably shared by thousands of other people in similar situation.

Let's throw back the covers on this whole "insurance" thing.

Should you pay for rent-a-car insurance?

Here's are article from MSNBC about the basic do's and don'ts at the car rental counter.

http://bit.ly/9KwxN5

The most important point is to plan ahead.  Find out what you have in place before you leave, because when you've just gotten off the plane, waited 30min for your bags, and you're ears are still numb from the guy in the middle seat telling you about the "shower curtain sales" business, is not the time to be thinking about insurance.

What to do with jewelry?

If you're like me at all after college there wasn't a whole lot that I owned that needed insuring.  I had recently bought some pants, without holes, and shirts for work (though I worked in small-time radio and didn't really care how people saw me at 4am) and I had a TV and stereo.  There was really nothing that stood out to me as being a target for theft.

But then again, I wasn't living in the nicest of neighborhoods and in fact did have my door broken down one day while at work.

I bring this up because there is one class of property that you would be wise to insure.  Jewelry.

Flood Map Changes Are Coming

Flood insurance is probably the most under-purchased property coverage in the homeowners market, but there are changes afoot in the country's flood-mapping from FEMA.  Areas that once were considered low risk (Zone X) are being reclassified after several "100-year floods" in the past couple of years, especially in the midwest.

Check out this article from FloodSmart.gov that talks about the various changes to come and what you can do to prepare.

www.floodsmart.gov/floodsmart/pages/flooding_flood_risks/map_change.jsp

As always, give me a call if you have more questions.

Auto Insurance Basics

Now that you've got the new apartment, used futon, 46" plasma screen and renter's insurance, you're ready to take the next step in protecting yourself.

Auto insurance.

It's not rocket science, but there's a first time to learn everything and you can't rely on your parents to do your laundry and keep you on the auto policy forever.

I Just Got My First Apartment...Now What?

Finished school.  Check.

Found a job.  Check.

Rented an apartment.  Check.

The next step is often overlooked, but is one of the most important in your present situation and your future outlook.  Insurance.