This year, resolve to get the right types of insurance. We often meet with good people who have been impacted by the effects of improper or inadequate insurance. Don't let another day go by without the peace of mind that comes with knowing you've protected yourself and your family. These easy and affordable steps can help you avoid a financially devastating situation.
Home Owners or Renter’s Insurance
If you carry a mortgage on your home, you are required by law to have insurance on that residence. So what should you do if you’re a renter, or if you have paid off your mortgage? It’s vital to remember that if you rent and something happens to your property (fire, burglary, flood) the landlord is NOT responsible for reimbursing you or replacing your items. For just $10-$20 a month in renter’s insurance, the things you’ve worked hard for can be fully protected. The same goes for homeowner’s insurance on a paid-for house. If you leave yourself uninsured in an effort to save a few hundred dollars a year, you must be prepared to pay cash for anything you lose in the event of a fire, burglary, tornado, flood, etc. Is it worth the risk?
Obviously, you should have auto insurance because it’s the law. However, as attorneys, we see the other consequences of uninsured or underinsured drivers. Crashes happen every single day. If you are underinsured and you or someone in your vehicle is injured, it will bankrupt you quickly. If you cause a crash that injures someone else, the consequences could be even worse. Check with an insurance agent once a year to make sure you have the best plan for your circumstances.
Many people think that an Umbrella policy only applies to wealthy folks or business owners. Not true! Umbrella coverage is a type of back-up insurance plan. If you get into a bad crash or have a major incident at your home, your regular liability coverages could easily be exhausted. For instance, if you have adequate auto insurance of $1 million, but you have a deadly crash and have a $2 million judgement levied against you, an umbrella policy would cover the additional $1 million. Without this policy, the injured party could attempt to seize your assets to cover the damages. Umbrella policies are typically very affordable even for those on a tight budget.
Long-Term Care Insurance
In our firm, we have seen some devastating injuries occur at nursing homes. As simple as it sounds, you often get what you pay for in a nursing home, as in so many other areas of life. You and your family will feel more secure as you age if everyone knows that you can afford to go to the best long-term care facility in your area. Without long-term care insurance, nursing home costs can become financially devastating very quickly at around $200 per day. If you rely solely on Medicaid to pay these costs, you get little choice in the type of home in which you or your loved one will reside.
We know this isn’t technically insurance. However, one of the benefits of insurance is the peace of mind it provides you and your family. An estate plan is no different. If something happens to you, who will take care of your children? How will they pay for the care of your special need child? What will happen to the employees at your business? Who will take care of your pets? Will your home be sold? Regardless of the size of your estate, you NEED a basic estate plan. On-line legal sites cannot provide you with specific advice and recommendations for your particular situation. We can help you form a plan that will protect your family and the things for which you’ve worked so hard.