IMAGINE that after dutifully paying your auto or homeowners insurance premium for years you finally try to make a claim, only to get a nightmare answer: Your insurer won’t pay for all the damages or, even worse, won’t cover you at all.
It’s a situation that happens more often than you may think. “People usually discover this shortage only when they’re filing a claim,” says Mary Parsons, executive vice president of personal risk services at Chubb. “By then, it’s too late.”
Auto and homeowners insurance policies limit how much they’ll pay for damage and other losses. These policies also have exclusions that catch people off-guard. For that reason, it’s important to understand how well you’re protected and whether there are any gaps you should fill before you run into an insurance issue.
Property damage is a hot topic these days, as climate change has led to unpredictable and damaging weather patterns and more-intense natural disasters, ranging from wildfires in California to blizzards in the Midwest to hurricanes in the Southeast. Nearly one-third of homeowners say they’ve been negatively impacted by a harmful weather event over the past five years. The vast majority of those affected expect it will happen again soon, according to a 2023 survey from the Insurance Information Institute (III).
The risk of weather damage is so high in some areas that major insurers are rethinking whether to provide coverage. For example, Allstate and State Farm recently decided to stop selling new property insurance policies in California. Auto insurers, meanwhile, have their own concerns. There’s been a post-pandemic surge in dangerous behavior, such as speeding and impaired driving, and traffic fatalities are at a 16-year high.
Bu hikaye Kiplinger's Personal Finance dergisinin September 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Kiplinger's Personal Finance dergisinin September 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
FREE HELP FOR COLLEGEBOUND STUDENTS
This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.
Strategies for Novice Investors
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
ANSWERS TO YOUR 529 PLAN QUESTIONS
Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.
Rate-Cut Winners and Losers
NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.
SHOULD YOU BUY THESE RED-HOT FUNDS?
Covered-call ETFs are popular but come with plenty of caveats.
DIVIDEND STOCKS ARE READY TO REBOUND
Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.
IS A 55+ COMMUNITY RIGHT FOR YOU?
These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.
AT LONG LAST, RATES ARE DROPPING
Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.