Finance and Twisters and Insurance

First off I want to offer my condolences to the folks in Missouri dealing with the terrible aftermath of the twisters. Please consider donating to the Red Cross or some other charity to help them out.

The earthquakes in Japan and New Zealand and the flooding and twisters in the US make the point that you can never completely protect yourself from harm. However you can take some steps to protect yourself and your finances in times of natural disaster.

First off check to be sure that you have home insurance {or rental insurance if you rent} and that you’ve kept the bill current. Then sit down and read the policy they sent you. See what it covers. Most don’t cover floods. Flood insurance has to be bought separately. If your home is in a flood zone you may want flood insurance. Does your insurance cover what you want it to?

Does your insurance pay you what it would cost you to rebuild? Can you afford to up your policy to that level? Could you save some money by raising your deductible? Really these are all personal choices. The time to make them is before disaster strikes. If there is a natural disaster headed your way, such as a hurricane, insurance companies will stop writing new policies in your area prior to the storm. So don’t wait till a disaster is on the weather radar before checking out your insurance coverage!

Next be sure that you are insured if a tree or debris hits and damages or destroys your car. This is very important if you have a car loan or a lease. If the car is destroyed you owe the balance of the lease/loan and will have to pay it in full even if your car is totaled. That’s right you have to keep making monthly payments on a destroyed car!! Can you see how quickly this would wreck your finances? Car insurance usually pays what the car is currently worth, which is ALWAYS less than you paid! Insurance that pays the difference between what the insurance company gives you for your car and the remainder of the loan or lease is called “Gap Insurance”  Check it out, it could save you a bundle.

Of course if you’ve paid off your car or bought it without a lease or loan you won’t need GAP Insurance, saving yourself a bundle in interest fees and insurance.  You would simply take the regular car insurance money and replace the car with one of the same value.

Do yourself and your finances a favor and take a quick look at your insurance coverage and update it if necessary.

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About All Unwound

Knitting, Felting, and Spinning are consuming all of my time! Please FAN All Unwound on Facebook http://www.facebook.com/AllUnwound
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