Have you ever seen insurance advertisements that talk about not having the right kind of car insurance or homeowner insurance? This usually involves a neglected aspect of the policy that results in expensive repairs or replacements.

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The funny thing about these ads is that they are right. An insurance audit can not only reveal the type of deficiencies in your insurance that "Mayhem" tends to find, but it can also reveal if you are spending too much by having better coverage than necessary.

But there are not only homeowners and auto insurance, and this neglected insurance could result in a significant loss of your assets.

What is this neglected insurance?

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Having insurance, it's protecting your assets and, in the case of Disney, Princess Leia was a major asset in their investment in Star Wars.

Although your movie does not require insurance, you can have artwork, a wine collection, expensive jewelry, collectibles on the shelves of your vacation home and other valuable properties that are not covered by traditional fonts. Although these assets may be irreplaceable if they are stolen or damaged, an insurance policy will allow you to retain the value of an asset.

Another neglected aspect of insurance concerns house employees, such as housekeepers and housekeepers. If you have hired someone to monitor your children, pick them up at school and drop them off at various activities, it is essential to ensure that you are covered appropriately in case of any problem. This in no way necessarily suggests debilitating or fatal accidents, but an event such as a minor car accident where everyone else is away can turn into a very expensive problem.

If you have hired someone who drives your vehicle regularly and that the latter is not registered on the policy, you could be liable for more than what you are negotiating; In fact, the insurance policy might only be a piece of paper in your glove box and nothing more.

Other protections and gaps often overlooked include:

  • Cyber ​​security. Coverage for people protects against computer attacks, cyber-extortion, online fraud and personal information breach involving smart phones, computers and connected home devices.
  • Surplus flood insurance. The National Flood Insurance Program (NFIP) reaches a maximum of $ 250,000 for residential property. Therefore, if coverage is greater than this amount, excess flood insurance is required.
  • Umbrella insurance. It is designed to protect against catastrophic losses. It comes into play when the underlying limits of insurance (home, auto, boat, etc.) are exhausted by the payment of claims. (Use the free Kiplinger.com tool to quickly calculate how much umbrella insurance you should have.)
  • Abduction / ransom. The policyholder would be compensated for amounts paid in ransom form, medical expenses, consultations or for the accidental death of the victim of the kidnapping. It is necessary for people who operate in high risk areas around the world.
  • The insurance of the goods. This protects damaged objects when transported by air, sea or land.

Insure valuables

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You may not have a Picasso, but accidents happen. Water damage caused by misbehavior can lead to a ruined collection of high-priced comics and a fire in the kitchen can spread to the garage where you are staying the car you only take for an event like the cruise Woodward Dream. A minor earthquake or even your child or pet passing in front of a shop window can destroy its contents, whether it is expensive porcelain objects or a vase crystal worth $ 15,000.

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Life insurance deficiencies

Please note that these deficiencies may also exist in your life insurance coverage. In addition, some strategies may provide conversion options and privileges that may be triggered or exercised depending on circumstances or specific situations defined in the strategy. Regardless of the type of policy you have, be sure to review it carefully and discuss it with your agent to see if it has features of your policy that you do not know and may want to address.

The right kind of insurance: avoid excessive fees

The right kind of insurance can help you make sure that you have the appropriate premium for your valuable assets. Cars need insurance, but a collector's vehicle is very different from the all-risk insurance you have with the car you bring to the office. To limit your insurance costs, consider two options:

  • Evaluate your franchise. Franchises are often low, but this can result in higher premiums than the actual difference in the cost of a higher deductible.
  • Weigh your changing needs. Sometimes we find people who have "exceeded" their coverage. For example, a person may take out a large life insurance policy when they have young children. As their assets accumulate and their children become independent, the term becomes excessive or may be a bad product because their goal may now be based on inheritance, which would probably mean a smaller policy. but permanent.

When you talk to an insurance agent, you get valuable information about assets that might require additional insurance. From home staff responsibility to the increased protection of your valuable 1967 Pontiac GTO, a trusted insurance agent will be able to detect any gaps or additional benefits that may be covered by your insurance policy.

The story continues

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Ari Fischman is a Certified Financial Planner who has provided insurance, estate planning and financing solutions to high net worth consumers. He is a financial advisor at Eagle Strategies LLC, a registered investment advisor. The Fischman Insurance Group does not belong to Eagle Straties LLC or its operation.

The information contained in this article is of a general nature and is provided solely for the purpose of information and education. There is no specific offer or solicitation to sell or buy a specific insurance product.

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