6 Property Insurance Common Mistakes - You Can Lose Everything

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Getting the right property and casualty insurance coverage may not rank high on the priority list of your finances. Compared with investment decisions and estate planning issues, the question of the language in your homeowner's policy, say, may seem not worth considering. But the more successful you become, the more complicated asset protection needs tend to be - and the more you have to lose. Suppose, for example, that in addition to your primary residence - a historic house - you also have a house on the beach and a condo in the city. Property in three different countries. Value collection of abstract expressionist painting has grown rapidly. And you just volunteered to serve on the Board of Directors of charitable organizations.
6 Property Insurance Common Mistakes - You Can Lose Everything

Almost every aspect of this situation could cost expensive. Insurance laws can vary a lot from country to country, various property types require special protection, and a collection of art, antique cars and other unique items may be difficult to protect completely. Meanwhile, serve on nonprofit boards may incur additional personal responsibility.

Protect yourself and your family may mean purchasing additional protection, but rather insurance is not always the solution. Instead, it is important to review all of your needs, consider specific policy or policy choices and coordinate your coverage with the other aspects of your financial situation. Here are 6 distinct shortage which could prove costly.

1. Leave gaps in coverage homeowners. Every homeowner needs to review the range regularly to keep up with the rising cost of replacement. But insuring different types of homes in locales pose additional challenges. If you buy insurance from more than one operator, you may face contrasting rules, limitations, and the policy renewal date. For example, the limit of liability policies for second homes may fall below the minimum excess liability policy designed to supplement your primary home insurance. You could wind up to be responsible for the difference.

2. Ignore the nature of its unique characteristics. One perk of prosperity is a privileged means to house themselves; one drawback is that they may be difficult to ensure adequate. Standard homeowner’s coverage will not pay for materials and expertise necessary to rebuild the Showplace of the 19th century that you have been painstakingly restored. Beach houses may face hurricane damage, while a place in the mountains of California to earthquakes or forest fires. Meanwhile, the city may require a cooperative or condominium policies designed for their coverage of the building or association.

3. under insuring art and collectibles. Standard homeowner’s policies limit coverage for losses antiques, furs and other valuables. And while you can schedule additional protection, insuring the real value of contemporary art collection or vintage muscle cars will likely require a specific policy addressing some important issues. How is the specified collection? (You will need a professional judgment when policies are designed, with frequent updates as item appreciate.) It would be damaged or destroyed items paid for with cash, or will you be required to have it replaced or restored? Will increase your collection will automatically be discussed?

4. Remember to ensure household employees. When someone who works for you or your family, as a nanny, landscaper, personal assistant, or in another role, you could be liable for medical expenses and lost wages if sick workers in the workplace. Some states require household employers to pay into workers' compensation fund, while in other countries optional, but providing such insurance may be required to ensure the financial well-being. If an employee drives your car, also made sure he included on your policy.

5. Ignore your obligations as a member of the Board. Excess liability coverage can help protect you if you are sued as a director of a nonprofit board. Or for more comprehensive protection, you may want to consider a special director and officer liability insurance.

6. Fails to get a policy often review and update. Your financial life is not static, and both of your insurance needs. Collection value can increase; home renovation could mean a sharp increase in the value of your property; and re-certification of assets as part of your estate plan - or because of divorce, death in the family, or birth of a child - can require changes in policy. Even the lack of big events, you may need a comprehensive review of all of your insurance coverage at least every two years.