What 6 Common Property Insurance Mistake?

Monday, October 4, 2010

What 6 Common Property Insurance Mistake?

Insurance laws vary from state to state, require different features specialized care and art collections, vintage and other unique items can be difficult to protect completely.
Get the right property and casualty insurance in their list of financial priorities are included. Compared to investment decisions and issues of succession planning, questions on language in its policy owners, for example, may be difficult to imagine. However, the more successful the more complex your needs for asset protection, and most to lose. Take, for example, that in addition one of their main residence, a historic house, a beach house and a condo in the city. The properties are located in three different states. The value of his collection of paintings by the abstract expressionism has increased enormously. And all volunteer to serve on the board of a charitable organization.

Almost every aspect of this situation could costs. Insurance laws vary from state to different types of products require specialist cover and art collections, vintage and other unique items can be difficult to protect completely. In the meantime, can sit on the board of a nonprofit organization to submit additional personal responsibility.

Safeguard may mean you and your family an extra insurance, but insurance is not necessarily the solution. Instead, it is important to consider all your needs, consider trade policies or policy options and coordinate coverage with other aspects of your financial situation. Here are 6 different constraints that could get expensive.

1. Leaving gaps in coverage for homeowners. All coverage owner must check regularly to cope with rising replacement costs. But the securitization of various types of housing in different locations provides additional challenges. If you buy more than one insurance that is contrary to rules, boundaries and the date of the renewal policy. For example, the liability limit, fall into the policy a second home under the minimum of an insurance liability insurance to supplement your main residence. You could be responsible for the difference.

2. Ignoring the unique characteristics. Another advantage of the wealth is the way for the owners of exception, a disadvantage is that it can be difficult to set properly. Owner of standard cover will not be required for material and labor costs to the street in the 19th Century, which has been lovingly restored to pay again. Coastal homes could face damage of the hurricane, so that his place may be restricted in the mountains of California earthquakes or forest fires. Meanwhile, the city cooperatives or condominiums require appropriate policies to cover their buildings or associations.

3. After securing the arts and collectibles. Standard homeowner policies limit coverage for the loss of antiques, furs and other valuables. And while you can program additional coverage, so the real value of a collection of contemporary art and vintage muscle cars will probably need a specialist policy address several key issues. What is the value of this collection? (You need a professional evaluation if the policy is developed, with regular updates as to assess the items.) Damaged or destroyed an item is paid in cash, or they must be replaced or repaired? Additions to your collection automatically insured?

4. Remember to provide to domestic workers. If anyone of you or your family as a nanny, gardener, PDA or other works on paper, you may be liable for medical expenses and lost wages when a worker injured at work. Several states require employers to a household compensation fund to pay for the workers, while optional in other states, but offers such insurance is required to secure your financial well-being. If an employee his car, so make sure he or she is included in your contract.

5. The neglect of her responsibility as a board member. Additional liability insurance can protect, if you are a director of a board are suing not for profit. Or for a more comprehensive protection, you can consider specific management and liability insurance for directors.

6. A lack of commentary, politics, and frequent updates. Your financial life is not static, nor are their insurance needs. The value of a collection can grow to home repairs could cause a sharp rise in the value of your property and plan to re-titling assets in your estate or divorce, demand a death in the family or the birth of a child can change politically. There are still big events, you must have a complete overview of all your insurance at least every two years.

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