7 Smart Tips for Buying the Right Insurance in 2013: Home, Life and Car Insurance

Buying insurance the wrong way can land you in trouble. You may get the money when you need it the most. To avert such situations you need to spare a thought or two before committing yourself to any kind of insurance. You need to spare a thought to ensure that you don’t overbuy in some areas and under buy in others. This can ensure that your insurance doesn’t fail you at your hour of need.

Follow These Tips before Buying Homeowners insurance

Tip 1: Buying home insurance does not safeguard your home from floods. Instead of discovering this late, check out with your insurance agent before you buy this insurance.  The government flood insurance website also provides ample information on this`                                                        .

Tip 2: Adding the “incidental occupancy endorsement” to your home insurance can be very useful. With this endorsement you can cover injuries that might happen to visitors at your home. If you are running a business at home, this can be extremely useful. Even if you don’t having one can prove its worth anytime. You shouldn’t grudge this as it would cost you just $30 a year.

Tip 3: While buying a policy make sure you standardize your liability limits on all your policies — home, boats, auto, etc. This is because if you injure someone you will have to shell out for medical bills, as well as lost wages. If you have any income or assets that may be at stake in a lawsuit, you can go for the umbrella policy –to safeguard it. A $1 million would policy costs about $200 annually.

Before buying the Life insurance follow these tips..

Tip 8: Raise your life insurance policy to ensure that your family gets at least 10 times the income in case something happens to you. Though experts believe 7.5% would suffice, but that, I believe, isn’t adequate. Remember the better your cushion your family the lesser hours will the surviving spouse have to work to earn for the family.

Tip 9: A term life insurance is the most cost-effective insurance policy. You get good returns for very low investment If you started on investments, and then don’t miss out on this.  Be determined to lock in the price for at least 20 years. After 20 years, extend it, if possible, to 30 years.  Always go for a convertible policy. This will ensure that you can qualify for the life insurance even if aren’t medically fit.

Tips before buying Car insurance

Tip 4: if you have any income or property or other asset to protect your minimum liability coverage should be $500,000 to $1 million or more. Raise it if it is low as raising liability comes at minimal cost.

Tip 5: When you upgrade your liability limits on your car insurance, make sure you cover your home, boats, cabin, etc., to the same amount. And that’s because a lawsuit may be slapped on you from any direction. This would ensure you are protected by the same amount of money in all circumstances.

Tip 6: If you raise your liability coverage, also raise your uninsured and underinsured motorist coverage. It is advisable to keep the two same.

Tip 7: If you are running an old vehicle you can do away with the collision and comprehensive coverage, more so if you have enough money to make it worth the risk.

About the Author

I am working as Editor in Chief for Financeninvestments.com. Writing on Financial Topics is my passion. You can find me on , Seeking Alpha Instablogs or join our Facebook Community, s. FNI is a great Community for financial bloggers and writers. Get everything you wanted to know about your finance and investment related matters such as mutual funds, banking, retirement, economics and much more.

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