We know how much people are trying to cut costs out of their budgets- but nothing is more important than having adequate coverage in your Auto Insurance. Comprehensive coverage can be added to your policy without having collision on your Auto Insurance. It is important to have an in depth conversation with your insurance agent regarding your policy.

Comprehensive Coverage pays for your vehicle if it is ever stolen or damaged by causes other than collision. That means that if you walk out of your front door to head to work and your car is gone, you will have coverage for your vehicle. For example, with Comprehensive Coverage on your policy you are protected against damages caused by fire, wind, hail, flood, theft vandalism, or hitting a deer are all covered. Comprehensive Coverage will also pay for a substitute vehicle expense of up to $25/day or $750/total, if your car is stolen. Almost all policies have deductibles that will apply to the loss. The most common deductible is $500, but you can have almost any deductible you want, ranging from $0 to $5000.

Filing the claim:

If you are a victim of a stolen vehicle, call the police immediately to have a theft report filed. The police need to be able to put your vehicle identification number (VIN) in their data base as a stolen vehicle. Next call your insurance company to file the claim. On most policies there is a waiting period for filing your stolen vehicle claim. The standard wait is 48 hours from the time of theft. Many cars have additional damage if recovered. This damage is covered but subject to your comprehensive deductible. If the car is found and the damage is under your deductible the insurance will close the claim. You will have to pay for the damage under your deductible amount. Theft claims are typically not chargeable claims, and have little or no effect on your premium. If your vehicle has caused damage to anyone else’s property, the property damage section of your liability would cover this part of the claim. Property damage rarely has a deductible associated with it. You will need to consult with your agent to verify your policy.

Most cars that are retrieved by the police are found within the first 3 days. Joy riding is the most common reason for car theft. Many cars are found in different states abandoned on the side of the road. The laws change for the assailant if they are caught after crossing state lines.

If you have liability cover now and would like to know what it would cost to add Comprehensive Coverage on to your policy then contact our office, or get a free Louisville Auto Insurance quote online today.

• · Option 1: Determining Expenses (-) Assets: Figure a rough estimate of your annual family budget. This would include your mortgage, child care, insurance, food, basic living expenses, as well as extra expenses including vacations, and future education plans such as private school and college. Next, estimate a figure for your assets such as savings, social security benefits, or any other income that will be there such as the income of a surviving spouse. Remember, stay-at-home spouses contribute a lot to the family income by by-passing child care, travel, cleaning, cooking and associated costs, therefore would need to be insured also.
• · Option 2: Salary Estimate: Another quick, but more general way, would be to take your current annual salary and multiply that by 7. For example, if you make 60,000/per year then I would recommend buying a minimum of $420,000($60,000 X 7= $420,000).

If your estimate is high, good, it’s probably right. If you are worried about the premium cost, I would recommend choosing term life insurance. You can get a policy for the time you would need it (the amount of time your kids would depend on you) for a lower premium than other insurance options.

When do I Need Life Insurance?

1. Considering starting a family: If you are considering starting a family you should consider purchasing life insurance. Your rates will be cheaper now than when you get older and your future children will be depending on your income.

3. Established Families: You need life insurance now if you have a family that depends on you.

I am a stay-at-home-mom and I don’t bring any income into our household, so why would we need life insurance on me? The cost of replacing someone to do domestic chores, home budgeting, and childcare should always be considered if you die, it can cause significant financial problems for the surviving family.  Funeral expenses can also be very costly if they are not already budgeted.

4. Young Single Adults: The reason a single adult would typically need life insurance would be to pay for their own funeral costs or if they help support an elderly parent or other person they may care for financially.

5. Couples without Children: Both persons in this situation would need to decide if they would want life insurance. If both persons are bringing in an income that they feel comfortable living on alone if their partner should pass away, then life insurance would not be necessary except if they wanted to cover their funeral costs. But, maybe in some instances one working spouse contributes more to the income or would want to leave their significant other in a better financial position, then as long as purchasing a life insurance policy would not be a financial burden, it could be an option.

6. Elderly: As long as you do not have people depending on your income for support, life insurance at this stage in your life would not be necessary, unless again, you do not have any other means to pay for your funeral expenses. But, be aware that purchasing a life insurance policy at this age can be very expensive. Before doing so, first talk to a financial advisor or accountant about looking into other saving options to pay for your funeral costs before considering life insurance.

Find out more about life insurance by calling our office, or get a free Louisville Life Insurance quote online today.

What doesn’t my home insurance policy cover?

Most home insurance policies do not provide much coverage for expensive jewelry, antiques, collectibles or art. You may have to purchase a “floater” or “endorsement” to achieve adequate protection for your valuable possessions. There may also be a limit on reimbursement for stolen or destroyed computers.

Standard home insurance policies provide coverage for loss or damage due to theft, fire, lightning, hail, and explosions; they do not cover damage from floods or earthquakes, or damage caused by lack of routine maintenance.

Flood insurance is available from the federal government (Visit Federal Emergency Management Agency web site). If you live in a flood zone you should discuss the need for an additional flood insurance policy. Earthquake coverage is available as a separate policy which you will also need to discuss with your agent.

You may have difficulty finding coverage for certain other disasters, such as hurricanes and wildfires.

How do I know if I need federal flood insurance?

If you are located in a flood zone, your lender will most likely require you to carry flood insurance. Both the U.S. Geological Survey and the Federal Emergency Management Agency (FEMA) offer maps showing earthquake and flood risks.  To find out how much flood insurance costs in your area, click here to obtain a free flood insurance quote.

How can I reduce my home insurance premium?

There are numerous ways to reduce your home insurance premium:

• install smoke detectors
• install and give proof of an alarm system
• install fire extinguishers
• increase your deductible

Keep in mind when you increase your deductible you will pay more of the amount of any claim out of your own pocket. For instance, if you have a $500 deductible, you would have to pay the first $500 of damages. Your insurance coverage would not kick in unless your loss was greater than $500.

If you currently have a low deductible of $100 or $250, and you increase it to, say, $500, $1,000, or $2,500, be sure you can handle the increased risk. In other words, only increase your deductible if you set aside that amount of money so it will be available if you need it.  If you want to know how much you’ll have to pay for home insurance, fill out one of our Louisville  Home Insurance Quotes online.

The amount of home insurance coverage you need depends on many factors, and it varies from homeowner to homeowner. In order to determine how much coverage you need is to talk to your insurance agent.  This can be discussed over the phone or by making an appointment to come in to speak with your agent.

Making sure you have enough home insurance to cover the cost of rebuilding your home at current construction costs is the key. That cost could be more or less than you paid for the home or what you could sell it for today.

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The cost is based on:

• local construction costs
• building codes
• square footage of your home
• features and materials of your home

The coverage for personal property is usually a set percentage of the dwelling coverage, say 40%, 50% or 60%. To determine if you have enough coverage, conduct a home inventory. Write down everything you own and figure out how much it would cost to replace it all. Keeping photos or a video of all of your personal property, along with receipts, can serve as an excellent form of evidence of your possessions.  Don’t keep these records in your home.

Any time you think you need more coverage, contact your insurance agent.  Be sure you have coverage that guarantees the replacement of personal items, and doesn’t just pay their value at the time of loss.

Coverage for living expenses can vary depending upon your insurance company. Many policies provide coverage for about 20% of the insurance on your house. Some companies offer a policy that provides unlimited coverage for a limited length of time. If you rent out part of your house, this coverage reimburses you for loss of rent while your home is not fit to live in.  If you think you need more coverage, talk to your agent.

Liability coverage is part of most home insurance, but the standard amount may not be enough to protect your property in case of a lawsuit. You should have enough liability insurance to cover at least two times the value of your assets including your home. If your assets are greater than your liability protection under your homeowner’s policy, you may want to consider purchasing an excess liability—or “umbrella”—policy.  Ask your agent what would be best to suit your needs or get a free Louisville Home Insurance Quote online.