Health Insurance – Civil Liberties Under State Legislation

This informative guide offers general information only. Don’t depend exclusively about this guide for making medical health insurance choices.

Medical health insurance plans vary broadly, in cost as well as in benefits. Before signing up for any adverse health insurance policy, you need to consult the program sales brochure and browse the insurance policy to get specific details about the advantages and charges and exactly how the program works.

This informative guide was created collectively through the Agency for Health care Research and Quality and America’s Medical Health Insurance Intends to provide customers with general details about medical health insurance options.

Q. I’m 24 and my employer offers healthcare benefits. However I prefer to be on my small father’s plan. Is the fact that possible?

A. This season, you can’t sign up for a parent’s plan in case your employer offers insurance. But starting in The month of january 2014, you are able to. You’ll have the ability to remain on your father’s plan before you turn 26.

AHRQ constantly reviews and updates their prevention materials to supply probably the most current info on preventive services and first care subjects, including women’s and men’s health.

Included in its try to improve the standard of healthcare, AHRQ props up U.S. Preventive Services Task Pressure (USPSTF). The USPSTF examines the scientific evidence and makes recommendations-considered the “defacto standardInch-on services that will help people maintain their own health. These types of services, known as clinical preventive services, include screening for illnesses or risks, counseling, and preventive medications.

Many of the biggest important things about a health insurance are:

Gain Comfort. Because you will never know when disaster strikes or when a major accident can happen, you need to be protected. With an insurance in health, you are able to live daily at its fullest without having to worry of the financial burden that might hit you in the event of any sort of accident.

Common Mistakes to stop While Buying Health Care Insurance

You need to make sure that you well verse on the essential words in your health insurance coverage plan. You need to figure out what it means by out of pocket and deductible amount. If you are not sure about the different between them, you need to ask for clarification.

health insurance
health insurance

Health insurance is confusing. Speak with your agent about changing your policy from what you’ll need, for those who have made changes in your lifetime.

Protect Your Financial Future

Because health coverage is expensive, you have to put away some dough month after month in order to pay for your insurance. However, it’s going to certainly settle that particular day when you will handle unpredictable medical necessities along with huge costs. Your future is protected and you will be financially covered in the case of any sort of accident. Moreover, well being services helps as well you pay for common services, like maintenance or annual check-ups.

Practical & Easy Tips For Purchasing Health plan

You must check your health plan policy for life time maxes. Some health plan business have lifetime optimal amounts they will certainly spend for certain coverage and therapy. You need to see to it you recognize them, and see if you may should get a plan much more matched to your individual needs.

You may sign up for an insurance package instead of buying them separately so that you can save up some money. If you are searching for insurance company that providing decent prices for coverage, you can always try to contact the company by phone. Most of them will attend to you very promptly. You can then make your enquiry to know if they do provide insurance package that bundle your life, automobile, and homeowner’s insurance together.

Things To Know When Finding Health Insurance

Mistake: Ignoring non-covered diseases, ailments, incidences and areas of the body

This can be another common mistake which you might not realize before you suffer no less than one medical condition associate with these items. Any insurance policies features a terms and conditions segment that states what are to be taught in policy. Unfortunately, when it comes to medical health insurance policy, most of people often disregard the core concept of every clause utilized in the stipulations section. Therefore, you must read and understand the covered and non-covered items as there is an incredibly little difference of separation backward and forward.

Practical & Easy Strategy For Buying Health Insurance

When taking a trip from the state or abroad, contact your medical insurance business first to ensure you are covered for disease or injury. Specifically if you count on Health insurance for health plan, you may not need to travel far to be outside your insurance policy business’s network.

Visitor Health Insurance and Visitors Medical Insurance policy

Check up on the exceptions, extra charges and co-pay directions. You should check on areas which aren’t covered and study the risk and chances of incurring such expense. They should check if the quantity proposed as co-pay is feasible and affordable about the situations explained.

Learning A lot more About Health Insurance Policies

If you are under a particular earnings cap, you possibly able to subscribe yourself for a discounted insurance policy. Such policy is typically provided by the state you stay in only. To figure out if you are qualify for this type of policy, you should check out what your state and get to know the offer that you are entitled for.

It is advisable for you to begin with a Health Savings Account where it enables you to save your pre-taxed earning. The account allows you to put your money into it for the purpose of any kind of medical expenses. By doing so, you will no need to worry about the medical expense as you can use the money you save in the Health Savings Account. Besides, you can also use this funding to settle high deductible insurance policies.

Useful Car Insurance Guide

Our Temporary Car Insurance Guide!

If you drive in the United Kingdom then to have temporary car insurance is a must. There are many reasons to have this kind of insurance cover and every driver should be aware of their options. This article will go through a few different types of temporary car insurance to explain why you might need it, and what to be aware of with this type of slightly-more-unusual cover.

car insurance
car insurance

Courtesy Car Insurance

Courtesy car insurance is a must when you rent a car or van. Whether it is for your own car or van that is being repaired or a car rental for a holiday; courtesy car insurance steps in and takes care of you if you have an accident.

Drive Away Insurance

Drive away insurance is for those that want insurance before they pick up a vehicle. It can be used for a newly purchased vehicle from a car supermarket, a car that has been in storage or one that has been bought through a private or Internet sale. This type of cover is immediate and works to ensure you are taken care of as soon as you have the vehicle in your possession.

Temporary Additional Driver

Whether you are loaning your vehicle to a family member or friend or you plan to drive a long distance and need someone to help you out whilst driving; temporary additional driver cover is perfect for those moments. This is also sometimes used for young people or students if they don’t yet own a car but want to borrow one temporarily.

Temporary Car or Van Insurance

This type of cover is an excellent choice for those that plan to drive for a short period of time. For instance, if you have your vehicle for sale and plan to move it to different locations or if you plan to drive a friend or family member’s car that they have loaned you. Even short term driving can cause accidents so ensure that you are in the clear with temporary car or van insurance.

Everything You Need to Know About Performance Car Insurance

Is there any activity as exciting and invigorating as driving that speedy sports car on the motorway with the top down? The wind rushes over the windbreak and tussles your hair as the tires on your sports car scream along the road. This is the life. But, it is a motoring life that can be costly. High performance automobiles such as sports cars typically cost much more to insure than a plain, four-door family sedan. There are many reasons an insurance provider charges top premiums for high performance vehicle cover.

Risk Causes High Premiums

The very top reason insurers charge top money for cover on high performance automobiles is they possess a record of high accident incidence. Another reason is that most high performance vehicles have been modified with third-party parts that when necessary can be quite costly to replace or repair. Furthermore, many people purchasing high performance vehicles usually are risk takers in and of themselves and, according to readily available statistics, typically file more claims than other driver categories. In fact, more young men die in crashes involving high performance vehicles than any other age according to a report in the Telegraph – Driving young men sane.

Age Does Matter

This is the very reason insurance companies take into consideration the driver’s age when determining the premium rate for a high performance vehicle. The driver’s record also plays in the mix determining rates. So will any engine modifications or any other parts installed that make the vehicle faster. An older driver with a clean record stands a greater chance obtaining lower rates than even a young male with a clean record could attract.

Which Car Should We Steal?

Thieves target high performance vehicles for theft because, when stripped, these vehicles produce a storehouse of parts that are extremely profitable when re-sold. Plus, this inherent value also means that they will be more expensive to replace requiring providers to increase policy rates. The actual statistics showing high performance cars are more likely to be stolen make these types of vehicles doubly expensive. They usually cost much more than most vehicles and because they are such high cover risks, insurance policies hit the wallet making the operating costs for driving such vehicles rather costly as well.

High Performance Car Specialty Insurance

Since a high performance vehicle carries increased value, writing the car off sometimes is the better method than paying for replacement costs. Insurance companies always treat high performance cars believing these vehicles are more likely to be driven by thrill seekers looking to go faster, longer, louder and whatever else gets their blood flowing. Unfortunately, often the blood flows due to crashes. Therefore, purchasing cover to protect against financial loss may direct individuals toward specialty insurance cover.

Why Specialty Insurance?

Specialty insurance companies are in business seeking to attract a specific segment of the automobile insurance buying public. Therefore, these companies take into consideration the type of vehicle a high performance car is and how it will be driven. Often, premiums can be discounted through limited mileage cover. The provider agrees to issue cover where the policyholder maintains a certain amount of mileage limited per year. It’s almost similar to HGV insurance – if a vehicle is particularly unsual, premiums will vary massively from one insurer to another because they’ve got limited data on which to base their decisions, which means you, the driver, can get a real bargain if you shop around and compare car insurance carefully.

The reasoning is that if the vehicle is driven less, the chances for an accident occurring are reduced.

Learning About HGV and Large Vehicle Insurance

It is important for businesses transporting large quantities of heavy goods to understand the particulars when it comes to proper insurance cover. HGV insurance policies are designed to protect companies hauling not only expensive goods, but the vehicles as well. These large lorries are usually very expensive. Proper cover protects the owner from financial liability as well as employee/drivers operating the vehicle. This allows for financial protection for both, since the driver’s well being is at stake and the owner is exposed to financial responsibility.

What Conditions Involve HGV Cover?

Any heavy goods transporter needs up-to-date cover and must employ a qualified, licensed HGV driver that adheres to all government regulations and guidelines to obtain this specialty cover. In the UK, a special license is needed for each driver operating an insured HGV. There are strict rules and regulations applicable to operating an HGV with restrictions concerning prohibiting any drug and alcohol usage that are very serious. Driving a large, heavy vehicle needs special training. It is considered far more risky than driving either a van or smaller automobile. Therefore, obtaining the correct HGV insurance will demand drivers adhere to a list of qualifications. These generally deal with the different types of truck equipment installed (typically different braking systems) meeting a minimum age, having driving experience and maintaining a clean driving record. (https://www.gov.uk/vehicle-tax-hgv)

Types of Cover

There are several aspects to obtaining HGV cover that includes covering but the basics such as damage inflicted on other vehicles. Keep in mind that premiums will raise when more cover is needed. Such expanded cover would include:

Goods and Transit Insurance – covers materials when being transported as well as company assets against any loss, theft or damage. This applies to delivering either company stock or a customer’s goods. It also applies to the vehicle owner’s property when in transit to make sure these are protected from anything that may damage it in transit. The goods cover typically includes loss from theft of goods or any damage resulting from an accident, A popular feature that may be included is earnings cover when transit delays are caused by an accident as well
Additional covers may include special riders protecting any tools carried by a vehicle driver for in-transit use
Covers may depend on the proper protected overnight parking of an HGV in a secured location.

A good consideration when seeking cover is to examine a need for a new-for-old replacement. Check to see if the cover accounts for depreciation.

Always ask for a breakdown of just what the provider offers in order to determine what is and is not protected. This will also help making comparisons of quotes received from several companies that are applicable for specific needs. The value for the goods transported also determines premiums to be paid when choosing cover levels

Most HGV insurance cover will not extend to dangerous goods transported. This requires special cover for transporting such as chemicals, explosives or other volatile, potentially threatening materials on roadways in the UK. It’s also important to check the age of the driver – young drivers may not be insured very easily.

Choosing Best Business or Fleet Insurance

The recent economic downturn has forced many business owners to examine expenditures where cost savings may be found. The tough economic times has a decidedly negative impact upon businesses small and large. In order to compete in today’s market as well as simply survive, business managers need to look across the board at expenditures causing great impact on the bottom line. Even everyday people are spending a lot of time reading up tips on how to cut their car insurance costs.

Insurance Premiums Need Exploration

One area that business managers are taking a serious look at is insurance covers. This is especially true for those organisations operating vehicle fleets such as businesses with a delivery component to operations. Examining current commercial fleet insurance policies is one method toward finding possible savings. This might be an area that considerable savings could be found before drastic measures such as employee layoffs become the only alternative to economise.

Locating Correct Commercial Fleet Insurance May Be a Daunting Chore

When times were exceptionally good, most business went about operations day-to-day, month-to-month and even year-to-year never giving a conscious thought to examining current fleet cover. In fact, insurance was one of those expenditures most businesses just simply automatically continued when the policy renewal date arrived. Many business owners and managers in the UK never understand that options are available when seeking commercial fleet insurance. A little amount of self education might “steer” commercial fleet insurance buyers in the proper direction.

Insurance Information is a Money-Saving Tool

The goal is premium reduction. Therefore, fleet owners need to realize that there are several factors determining how rates are set including:

– Number of vehicles insured
– Age of vehicle drivers
– Contents carried
– Operating locations
– Vehicle safety/security features

…also fleet owners need to decide the level of cover that meets the organisation’s specific needs including choosing:

– Full Comprehensive Cover
– Third-party theft and fire
– Third-party Only Cover

Obtaining just ordinary motor cover choosing one of the above is necessary to put a fleet of vehicles on the road. Basic cover is mandatory. Most commercial fleet policies usually are comprehensive – this means that the policy covers company-owned vehicle damage. This type cover also protects the fleet owner from any legal liability concerning injury to people or property caused by one of the company’s vehicles.

Do Not Go It Alone

The daunting task for finding the best fleet insurance may put off busy owners. Do not worry. Turn to the services of a broker. This is an insurance professional who has the experience and knowledge needed to guide you to a money-saving deal. Brokers can present a number of quotes from varying companies while helping make good comparisons so an informed buying decision can be made. Many broker services can easily be found online (Internet). Make sure any insurance broker you consider is clearly authorised and is listed by the Financial services Authority or is a representative of a company that is listed (http://www.fsa.gov.uk/) and is a member of the British Insurance Brokers Association (http://www.biba.org.uk/).

When dealing either with a broker or directly with a provider, make sure to prepare by gathering detailed company information that is completely current and correct. This is important so an adequate cover proposal is prepared.

10 Things To Consider When Buying Home Insurance

Do you want to protect your dream house from any disaster and danger? Take a home insurance that covers your most valuable possessions.

home insurance
home insurance

 

Following 10 tips should be considered thoroughly when purchasing a home insurance:

1.     Maintain a good credit record: Most of the insurance providers check your credit history before offering insurance.  Make sure you have a good credit record to get the best home insurance without any trouble.

2.      Increasing deductibles:  Increasing deductibles may decrease the premium rates of your policy. Pay deductibles with saved amount or emergency fund.

3.      Claim less:  A history of trivial claims may increase your premium rates. So try to decrease frivolous claims to get the maximum benefits.

4.      Discounts and deals: Many insurance companies offer discounts on polices, unless you ask they will not reveal the discount rates. Ensure you get the best discount on your policy. Also make sure your insurer is providing payment protection policy on your home insurance policy. If you are unable to pay you monthly payments ppi make the payments and you can make ppi claims through claiming companies to get a refund.

5.      Compare rates:  There are so many companies in the insurance market which are offering insurance with various rates. Compare the insurance policy rates with different insurers to get an initial idea. You may get the same policy for lower rates when compared to other company insurance policy that provide with higher rates. Grab the lowest among the different home insurances.

6.      Pay annually: If you want to save money on your premium, pay annually on your policy rather than paying monthly.  Premiums are frequently subject to administration and finance fees, if you pay monthly.

7.      Purchase online: Many insurance providers offer discounts rates for online purchasers.  Some may reduce overall costs when you purchase home insurance online. So try to purchase your insurance online to save little extra money.

8.      Purchase umbrella policy: Plan to take other type of insurances like health insurance, general insurance and auto insurance from the same providers to get the discounts. Some companies reduce premium rates when you buy other polices from them.

9.      Stay with the same insurer:  If you are holding an insurance policy for longer periods in the same insurance company, you may get special discount offer on your coverage. Some companies may decrease 5 % of premium, if you are with them for three to five years and some companies my decrease 10 % of premium, if you are with them for six years.  So stay with the same insurance to get maximum benefits.

10.  Improve home security:  Increase your home security with burglar alarm, smoke detector and dead-bolt locks. Install your home with sophisticated sprinkler system to protect your home from fire. Make sure your home is fitted with fire and burglar alarm that rings at the fire, police and other monitoring stations.  Because most of the insurance companies give discounts of up to 5 % for smoke and fire detectors and reduce your premium up to 15 to 20 % for security system.  Install your home with strong security system that protects your home and saves your money.

 

5 Tips for Lowering Your Homeowners Insurance Costs

Your monthly homeowner’s insurance policy premium can add a notable chunk of money to your house payment. No matter who you are or what your budget, every penny counts if you are conscious of your fiscal affairs. After all, who likes to throw money away on things that aren’t necessary? Did you know that your homeowner’s insurance policy could be costing you more than what you need, and that there are ways to lower the cost of that insurance without risking your home? Here are five tips for lowering your homeowner’s insurance cost:

house insurance
house insurance

Comparison shop. Just as with any other type of insurance, you can save a lot of money by shopping around with different providers before committing. That is because different providers offer different coverage, and use different factors to determine your premium.

Safeguard your home. You can drastically lower your homeowner’s insurance premium by making sure your home has the best and most safety features possible. For example, by placing new fire/smoke detectors around the house, dead-bolting the doors, and installing an alarm, you can decrease your insurance obligation by as much as fifteen or twenty percent

Raise your deductible. The deductible is the amount of money you agree to come out of pocket when you make an insurance claim, before the insurance company must come out of pocket. For example, you may have to pay a deductible of $2000 for smoke damage to your home, and the insurance company would pay the rest. By raising the deductible, you offset the insurance company’s risk, and your premium will be lower to reflect that.

One-stop shopping. Most insurance companies offer discounts for having multiple policies with them. Therefore, it is in your best interest to look into placing your health insurance, life insurance, auto insurance, and homeowner’s insurance policies all with the same provider.

Home versus land insurance. Don’t make the mistake of purchasing insurance for the land your home is on. Remember that your home is “property,” which can be damaged and destroyed, but your land will most likely stay the same regardless of the circumstances covered by a homeowner’s insurance policy. When you are getting homeowner’s insurance quotes, use the rebuilding cost of the property itself, not what you paid for the property (which includes the land).

As you can see, there are very simple things you can do to make sure you are paying as little as possible for your necessary homeowner’s insurance. If you take each of these examples into consideration, you could dramatically reduce your homeowner’s insurance obligation, without putting any unnecessary risk on your property’s security.

About the Author: Donald Laumbach is an insurance specialist who enjoys helping homeowners keep their costs low. He also works with parents to make sure they are saving properly for college expenses, looking for grants for college, and ensuring the financial futures of their children.

 

Why is it Important to Buy a Health Insurance Policy?

It is very important to buy insurance policies so that you can secure your future in case any mishap suddenly occurs. It is equally important to purchase the required coverage that you may need. When you are planning to buy a health insurance policy, you should shop around very carefully so that you may be able to get the required coverage that you are looking for in your policy.

health insurance
health insurance

4 Tips to buy a health insurance policy

Buying a suitable health insurance policy entirely depends on your own responsibility. Read on to know 4 tips when you are planning to purchase a health insurance policy.

Make sure the policy satisfies your needs – It is very important that you buy a health insurance policy that will satisfy all your needs. Unless the policy fulfills all your desired needs, it will be of no use in buying it. If your family members entirely depend upon you, you should make it a point to buy a policy that will satisfy the medical needs of your family members.

Cost depends on the coverage you buy – The cost of the health insurance policy depends upon the type of coverage that you want to buy. Different states have different medical tests that are done without any cost. You need to know about the coverage that your policy may offer you so that your cost does not go in waste with the policy.

Do not buy cheap health insurance policy – It is advisable that when you’re planning to buy a health insurance policy, you should never look for the cost of the policy. This is because the policy may be cheap in price but. in that case, you may not be able to enjoy all the benefits that you’re actually looking for in your policy. Try to keep in mind that the health insurance policy that you want to buy should fulfill all the health benefits that you want to have in your policy.

Read the terms and conditions very carefully – Before buying a health insurance policy, it is very important that you read the terms and conditions of the policy very carefully. It may happen that the insurance company may tell you about some of the benefits that are not included in the policy. As such, you should read the terms and conditions in order to avoid any unnecessary problem.

It is advisable that you keep in mind about the required benefits and coverage that you want to have in your health insurance policy so that you can fulfill your as well as your family members need. Thus, you should buy a health insurance policy from before hand so that you can live a peaceful and healthy life.

Key Elements In Any Good Auto Insurance Policy

Auto insurance is meant to protect owners and operators of motor vehicles from financial loss. Cars, trucks, motorcycles and other vehicles are big investments. In low to moderate median income communities, their value represents a substantial part of a family’s assets. Drivers should be covered against damage to their own vehicle and against their medical expenses, and also against damage to other property and possible claims resulting from injury to others. To do its job, an insurance policy must address certain key elements.

auto insurance

Liability to others

As a matter of public policy, most jurisdictions require drivers to be covered by a minimum amount of liability insurance . Liability can include damage to someone else’s property, whether a vehicle or something else like a mailbox or a window. It can also include medical bills that are the result of an accident, and in some places even lost wages or other amounts. Some drivers choose to cover liability insurance well in excess of the minimum.

Medical payments coverage is an auto insurance option that covers payment for bodily injuries due to an accident covered under the policy. These are usually injuries to persons in the policy holder’s car. This coverage usually has no limit, but does have a cap on total payout.

Costs to the driver

Financial loss resulting from damage to an automobile that is not the result of a collision can also be devastating. This includes a tree falling on the car, damage from a flying rock or even hitting an animal. It also covers fire damage and theft. The cost of comprehensive insurance to cover these expenses depends on the level of deductible the policy holder chooses as well as other factors that influence the price of the policy as a whole. This type of auto insurance is optional in most places, but quite desirable for vehicles of any value.

Collision or accident insurance covers costs from damages to the policy holder’s vehicle that result from an auto accident. Like comprehensive insurance, collision coverage is optional in most jurisdictions, but it is a very good idea if the cost of replacing a vehicle would present a financial strain. Also like comprehensive coverage, collision insurance costs vary according to a number of factors, one of which is the level of auto insurance deductible that the purchaser selects.

Gap insurance

Another possible problem for auto owners occurs when a relatively new car is totaled. Since the value of a new vehicle plummets as soon as it leaves the lot, the car may not be worth what is owed on it, and the payment may not equal the replacement cost. To protect owners from such situations, gap insurance covers the difference between the value of the vehicle and the amount remaining on the loan.

Choosing the right combination of auto insurance features means balancing several elements. Determining which is crucial to a driver’s particular situation and which would represent an extravagance involves careful thinking, followed by comparison shopping to find the most economical policy that includes the key elements required.

Insurance for your Gadgets: Get a Credit Report

Did you know that gadgets and technology like TV’s need to be insured? That is why Apple Inc. offers Apple Care and countless other companies, such as Hewlett-Packard, Dell, and Samsung offer insurance policies for their electronics.

But why do I need a credit report? And what else should I do when I buy a gadget?

Credit report: Monthly payments

Credit reports show your credit score, something that you usually use to buy houses, cars, get credit cards, and sometimes appliances. However, some large electronics might be paid for with a monthly payment plan, such as a large big screen HD television. But why would I need a credit report for a TV purchase, even if I have financing that I am paying back

Zombie apocalypse

Pretend for a second that there is a plague of mutant rabies that turns people into flesh-eating monsters, and each time someone is bitten they die and come back to life as one of these monsters. Now let’s say that a zombie breaks into your house. You bludgeon him with a cricket bat and he crashes into your TV, smashing it to pieces…

…Okay, hopefully there won’t be a zombie apocalypse, but what if your living room floods and your TV gets ruined? Or what if you drop your iPad? If it is an expensive gadget with financing you will need a credit report to get the financing, and then you will need insurance to insure your gadget.

This is a guest post by Murray Newlands, the CEO and Founder of Influence People. Murray and his company do blog outreach for a variety of clients.

What to do Before Buying Health Insurance

Although the health insurance industry removed the public health insurance option from the Patient Protection and Affordable Care Act, the law still added a myriad of consumer protections. Among them are preventing companies from denying people coverage for having pre-existing condition, letting young adult children stay on their parents’ or a parent’s healthcare plan until the adult is 25 years old, and giving states funding for providing healthcare to people who cannot afford it.

health insurance

Despite this, you still need to be a smart consumer when picking a health insurance company, and you should do some things before buying health insurance.

Get an up-to-date credit report

Medical bills can be high so insurance companies will be going through your credit report to see your credit score. If you have a low credit score, they might not want to offer you as good of a plan since they might be worried that you will not be able to pay things like co-pays.

Don’t have gaps in your insurance coverage

Some people try to “save money” by not being insured for a bit, but this actually makes you more expensive to insure afterward because the insurance companies will worry that something may have happened to you while you were off coverage. Also, even though they are not allowed to deny coverage for pre-existing conditions, they might still try to not pay for it and ignore the law altogether, or claim that it is the responsibility of a prior insurer.

About the Author: Murray Newlands and his company Influence People do blogger outreach for a variety of clients.

How Your Homeowners Insurance Company Uses Your Premiums

One of the most common misconceptions is that insurance companies collect premiums and just spend all of the money. They must have pretty high profit margins, right? All they do is take peoples’ money and they almost never pay out a dime. Well, you might be surprised to learn that insurance companies have razor-thin profit margins. Most of the money they collect goes right back out the door. What do they do with all that money?

Taxes and Overhead
taxes

Insurance companies pay taxes just like everyone else. Of course, they only pay tax on profits – which are surprisingly small. Still, it’s a cost that insurers bear every year.

Another expense is overhead. You would think that insurers would be raking in the dough and cutting employees fat pay checks. While some executives do make a lot of money, most people working for the insurer are paid a modest salary. This salary is part of the overhead expenses of the company.

Other overhead expenses include utility bills and company benefits like retirement and health insurance plans.

Investments

Homeowner’s insurance companies make a lot of investments. That’s how they’re able to pay insurance claims. In fact, this is where most of the money goes. Insurance companies have to conservatively manage the money they collect and protect it for the benefit of policyholders.

A substantial portion of the investments in an insurer’s portfolio include government bonds, but they also invest in corporate bonds, high-value common stock, real estate, precious metals, and even some speculative investments (though these represent a very small portion of the insurer’s portfolio).

They’re so good at managing risk that there hasn’t ever been a single year when an insurer has lost money. There may be years when they don’t make a lot, but they always profit. They are considered by some to be the best investors in the world because of this.

Claims

When you have to file a claim with your Calgary home insurance company, the money has to come from somewhere – the insurer’s cash reserves. This is where a good chunk of money goes that the insurer takes in. While insurance companies try to be conservative in their claim payments, they still have to abide by the contracts that they issue.

Most people pay their premiums faithfully every month, and then forget about the money. Some people pay in for 10, 20, even 30 years and never collect. Sometimes, these same people feel that it’s unfair that they never receive any money from the insurer.

However, this is the nature of insurance – it gathers together a large group of people with the explicit goal of spreading out the risk of financial loss associated with a house fire, theft, or act of God. It’s explicit in every contract that you may never get a return on your premiums. The only way to collect is to hae something catastrophic happen to your home.

But then, that’s why we buy insurance – not because it’s an investment for us, but because we want to be protected from the “what if’s” in life.

 

Do You Know What Your Home Insurance Covers?

Home insurance is a safety net homeowners need to protect their property and finances from damage and loss. Most homeowners know it’s required, but not everyone knows what their coverage includes. Standard home policies cover interior and exterior damage to the house from things such as fire, hurricanes, lightning and vandalism. Are you fully covered? Brush up on your home insurance coverage knowledge with these tips.

What Home Insurance Covers

A standard basic policy, a HO-3 policy, provides the following coverage at no additional cost:

  • ordinance coverage for costs to bring a property to code after a loss such as a fire
  • refrigerated item coverage to replace spoiled food after a power outage
  • liability coverage that protects homeowners from things like being sued for libel or slander
  • dog-bite protection that pays if homeowners are sued when their dogs bite someone
  • coverage for damage caused by falling objects like satellite debris
  • snow damage and damage from burst pipes
  • personal property coverage for members of homeowners’ families such as college students living in a college dorm

What Home Insurance Does Not Cover

Many homeowners may not realize that their standard home insurance doesn’t cover flood damage. Flood insurance is a separate policy from homeowners insurance under the National Flood Insurance Program.

Some other things that standard home insurance doesn’t cover include:

  • earthquake damage
  • maintenance, replacement, or repairs, even for major home systems such as furnace and central air conditioning
  • damages from a break in water or sewer lines
  • damages from mold
  • damages from termites or other insect or vermin infestations
  • pets stolen from or injured on the homeowners property

Tip: According to Realtor.com, depending on your provide, many home insurance companies offer an average of 5 to 15 percent discount off your insurance policy cost for having a home security system installed.

Other Things to Know About Home Insurance

While searching for legitimate and trustworthy home insurance providers, make sure to do the following three things:

  1. Check their licenses with your state’s insurance department.
  2. Check their financials with top credit agencies such as Moody’s or Standard & Poor’s.
  3. Ask for referrals from family and friends who can tell you about their experience with the insurance provider.

Different types of home insurance include:

  • Actual Cash Value: Actual cash value policies replace the current market value of your house and belongings after depreciation, not their actual purchase price.
  • Replacement: Replacement value policies cover actual cash value without deducting for depreciation.
  • Guaranteed Replacement Cost: Guaranteed replacement cost policies are comprehensive policies that pay for repairs or rebuilding costs at current costs even if it goes over the policy limit.