WHEN I RENT A CAR, DO I NEED TO BUY INSURANCE SOLD BY THE RENTAL COMPANY?

If you're not currently insured, you'll need to at least buy liability coverage from the rental company before you hit the road. Otherwise, rental insurance isn't legally required — which is not to say it can't help. If any of the following scenarios apply, the extra protection provided by rental insurance is worth considering:


  • Your current policy doesn't have comprehensive and collision coverage
  • You're only insured under a commercial car insurance policy
  • You don't want to risk paying a high deductible


And if you're driving abroad (apart from Canada), your current car insurance probably won't cover you. Check your policy's declarations to find out.

 
HOW MUCH INSURANCE COVERAGE SHOULD I BUY FOR MY HOUSE?

You need enough insurance to cover the following:

  • The structure of your home.
  • Your personal possessions.
  • The cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs.
  • Your liability to others


Factors that will determine the cost of rebuilding your home:

  • Local construction costs
  • The square footage of the structure
  • The type of exterior wall construction–frame, masonry (brick or stone) or veneer
  • The style of the house (ranch, colonial)
  • The number of bathrooms and other rooms
  • The type of roof and materials used
  • Other structures on the premises such as garages, sheds
  • Fireplaces, exterior trim and other special features like arched windows
  • Whether the house, or parts of it like the kitchen, was custom built
  • Improvement to your home–adding a second bathroom, enlarging the kitchen or other additions that have added value to your home


Contact Us for more information and a free quote.

 

IS MY SON’S PROPERTY COVERED WHILE HE’S AWAY AT COLLEGE?

Your homeowners insurance will generally cover him if he’s living in a dorm. He’ll have the same liability limits as if he was in your home, but the coverage for his belongings may be limited to 10% of your total possessions coverage (the rules vary by insurer). Many homeowners’ insurance policies cover possessions up to 70% of the home-coverage limits -- so if you have a $200,000 homeowners’ insurance policy, you’d have up to $140,000 in coverage for your possessions in your home, and up to $14,000 in coverage for items that are off-premises, such as in a dorm room. Add up the value of your son’s stuff and make sure you have enough coverage -- you may want to buy some extra coverage if he has an expensive computer system and other valuable electronics.

For more detail information Contact Us

 

DO I NEED LIABILITY INSURANCE FOR MY BUSINESS?

YEEEESSSS….. Even if you don't think your business has enough assets to be sued, or if you believe because your business in incorporated, you're shielded from personal liability through the so-called "corporate veil," you still need business insurance. Why?

Because absolutely anyone can be sued, judgments can be collected through wage garnishments and bank account seizures, and even corporate veils can be pierced under certain circumstances; indeed, the smaller your business is, the more likely that you can be held personally liable for debts through your personal assets.

Your business needs business insurance because of the many risks and potential threats to its successful and continued operation; good, tailored business insurance policies can help protect you and your venture as much as possible.

 

HOW MUCH LIFE INSURANCE DO I NEED?

You can’t pinpoint the ideal amount of life insurance you should buy down to the penny. But you can make a sound estimate if you consider your current financial situation and imagine what your loved ones will need in the coming years.

In general, you should find your ideal life insurance policy amount by calculating your long-term financial obligations and then subtracting your assets. The remainder is the gap that life insurance will have to fill. But it can be difficult to know what to include in your calculations, so there are several widely circulated rules of thumb meant to help you decide the right coverage amount. Let’s look at a few of them.

 

Rule of thumb No. 1: Multiply your income by 10.

“It’s not a bad rule, but based on our economy today and interest rates, it’s an outdated rule,” If you ask me.

The “10 times income” rule doesn’t take a detailed look at your family’s needs, nor does it take into account your savings or existing life insurance policies. And it doesn’t provide a coverage amount for stay-at-home parents.

Both parents should be insured. That’s because the value provided by the stay-at-home parent needs to be replaced if he or she dies. At a bare minimum, the remaining parent would have to pay someone to provide the services, such as child care, that the stay-at-home parent provided for free.

Rule of thumb No. 2: Buy 10 times your income, plus $100,000 per child for college expenses

Education expenses are an important component of your life insurance calculation if you have kids. This formula adds another layer to the “10 times income” rule, but it still doesn’t take a deep look at all of your family’s needs, assets or any life insurance coverage already in place.

Rule of thumb No. 3:
The DIME formula

This formula encourages you to take a more detailed look at your finances than the other two. DIME stands for debt, income, mortgage and education, four areas that you should consider when calculating your life insurance needs

  • Debt and final expenses: Add up your debts, other than your mortgage, plus an estimate of your funeral expenses.
  • Income: Decide for how many years your family would need support, and multiply your annual income by that number. The multiplier might be the number of years before your youngest child graduates from high school.
  • Mortgage: Calculate the amount you need to pay off your mortgage.
  • Education: Estimate the cost of sending your kids to college.

  • The formula is more comprehensive, but it doesn’t account for the life insurance coverage and savings you already have, and it doesn’t consider the unpaid contributions a stay-at-home parent makes.


How to find your best number

Follow this general philosophy to find your own target coverage amount: financial obligations minus liquid assets.

Calculate obligations: Add your annual salary (times the number of years that you want to replace income) + your mortgage balance + your other debts + future needs such as college and funeral costs. If you’re a stay-at-home parent, include the cost to replace the services that you provide, such as child care.

From that, subtract liquid assets such as: savings + existing college funds + current life insurance.

Whatever you decide to do… You shouldn’t do it on your own, let us help you… ClickHEREto contact one of our experts to give you some guidance and make a knowledgeable decision. 

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