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Posts Tagged ‘Insurance Policy’

There are a lot of different names associated with Payment Protection Insurance; PPI and Loan Protection Insurance are just a few. Many people get confused by this term, but it is simply an insurance policy that will protect the policyholder if they are in debt and cannot work because of health reasons, or they have been made redundant. All these policies are going to be very different, and the positives and negatives that they can offer will vary greatly, too. It is not uncommon for Payment Protection Insurance to be sold alongside a credit card or a loan. If a person wishes to buy PPI on its own then this is still an option.

There are a few issues with PPI, and one of the most worrisome is the fact that is has been mis-sold to millions of people. This includes things like the policy holder being unaware that they have actually paid to have a Payment Protection Insurance policy, or being pushed into a policy that they did not fully understand. Because of the many issues surrounding the sales of payment protection insurance, the Office of Fair Trading have opened an investigation.

However, as mentioned above, there are positive sides to balance the argument out. One of these is that if you have a lot of debt that needs to be paid off then this type of plan could be that extra reassurance that you need. For those in debt, PPI can be a great way of making sure that you are fully covered in the event of accident, illness or redundancy. The most obvious advantage to having PPI is that you only have to make small payments in order to be protected.

It is important to keep a few different things in mind when thinking about taking out a Payment Protection Insurance policy. For example, as with all insurance providers, the competition is fierce, so it would be wise to consider all options. Because of this, each policy provider will be able to offer you something different in terms of benefits. So you see, considering all of the different PPI providers is important. By doing some thorough research you can make sure that you are not only getting a good deal, but also that you are not being mis-sold a policy that you do not want, and do not need. It is not worth simply throwing your money away.

1. Earthquake damage is not covered by a standard homeowners insurance policy.

Too many people find out the hard way that earthquake damage is not covered by their homeowners insurance policy. A standard homeowners insurance policy will cover your dwelling and your personal property against many perils. Things such as damage from hail or wind during a storm, theft or vandalism, even a car crashing into your house would be covered by a standard homeowners insurance policy.

But some things such as floods and earthquakes are not covered. To be covered for earthquake damage requires that you purchase additional insurance. The premiums for this type of insurance are generally pretty small but the deductibles can be high. If you choose to get earthquake insurance shop around for the best deal. Try to find a policy that offers the most coverage for a reasonable price and be sure to ask about how much the deductible will be.

2. California is not the only place that has earthquakes.

When you hear the word earthquake the first thing that pops into your mind may be California. But California is not the only place that gets earthquakes. Since 1900, 39 of the 50 states have had earthquakes and all 50 states have sustained damage due to earthquakes. Approximately 90% of Americans live in areas considered to be seismically active but a very small percentage of people actually care your earthquake insurance. Even in California where earthquakes are most likely to occur only about 12% of homeowners carry earthquake insurance.

3. Some easy things you can do to prepare for earthquakes.

Many times, especially in a small earthquake, there may be no structural damage to your house but some of your personal property inside the house may be damaged. In addition to property damage people can be seriously injured or killed by large pieces of furniture or other objects falling on top of them should an earthquake occur. It’s a good idea to secure large pieces of furniture such as a bookshelf to the wall that they are up against. A few dollars worth of hardware and a few minutes of your time could save your life.

It’s also a good idea to have some bottled water, flash lights, canned food, and first aid supplies on hand. If there is an earthquake there could be power outages and plumbing damage and it’s good to be prepared for those possibilities.

A house is usually the largest asset / investment the average person will ever own during their lifetime and protecting this asset should therefore be a priority in order to maintain any individual’s financial and personal stability.

Would you really be able to afford the cost of replacing your house and all its contents on your own if unforeseen circumstances like fire, flood, burglary or storm were to destroy it? Without home insurance, not only could you be rendered homeless, you stand to lose everything that you have bought to equip your house.

Besides losing your belongings through the natural calamities stated above, you can potentially lose them as a result of theft and without home insurance you may find it hard to replace them.

While you may hate paying the premiums each month, home insurance – also known as hazard insurance or homeowners insurance – is a necessary evil, whether you live in a small house that is all paid for or a huge mansion that you carry a great mortgage on.

A home insurance policy can cover you during the construction of your house but in such cases you need to have the insurance in place before the basement or slab is poured. You will similarly be covered should you decide to carry out renovations on your home.

If you have a mortgaged property, most lenders actually insist that you have a home insurance policy to make sure that their collateral is protected in case something happens to it. You might have no choice in this matter as the mortgage may include a term which requires compulsory home insurance coverage to be effected.

Additionally, home insurance can help protect you from any lawsuits or personal injury claims that may arise if someone were to be injured on your property.

Home insurance is actually a generic term which refers to 2 separate products, contents insurance and buildings insurance.

Standard home insurance policies may not always cover all damages associated with some natural disasters, so getting an endorsement or separate insurance policy in the form of flood insurance or earthquake insurance, etc, might actually be a good idea especially if you live in areas prone to such natural calamities. In any event, it is important to get your home appraised every few years to make sure you have adequate insurance for all the insured perils you envisage or intend to cover.