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Where are your important papers?
Stuffed in a box on a closet shelf, in a desk drawer, in a pile on top of a file cabinet, or maybe you don’t know where they are—many of us need to organize important documents and keep copies of them in safe places.
If something happens to your home, will you have the necessary paperwork?
Fireproof boxes and safes are good for this. Also good are bank safety deposit boxes. Another possibility is copying important documents and storing them at a friend’s or relative’s home. You could return the favor and also store their important papers.
What records should you keep?
There are many from birth certificates to passports, but here are some that particularly relate to financial assets:
Insurance polices — copies of auto, homeowners, personal umbrella, health, dental, mobile home—all types of insurance policies.
Home inventory — an inventory of all your valuable possessions. Go through each room of your home and list everything of value from furniture to electronics to jewelry. Copies of receipts for each are helpful to determine actual value. Warrantee information is helpful also.
Take photos of each room or video each to show condition of items.
Real-estate records — Your deed, mortgage, settlement papers, title insurance, receipts for improvements or repairs, previous mortgages (sometimes you need those to show payment because records often are not filed properly by institutions), lien discharges—anything that you may need to show ownership or past payment.
Tax returns — you never know when you might need these. Keep copies for at least three years.
Investment records — broker statements, transaction confirmations, 401-K statements, banks statements—keep these for as long as needed.
Computer storage — it’s a good idea to scan and store many of these important documents on your computer’s hard drive. But, if you have a fire, your computer may be destroyed. Store a data disk in another location.
“Never leave that to tomorrow which you can do today.” — Benjamin Franklin
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Homeowners rates see minimal increase
From AI Magazine
Homeowners insurance rates are expected to increase by a minimal 2.5% in 2005, the smallest increase in six years.
According to a new Insurance Information Institute study, 2005’s average cost of homeowners insurance will be $677, a $17 increase over 2004’s $660. See the chart below for a review of the past decade’s rates.
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The anticipated moderation is due to “small decreases in the frequency and cost of claims (that) have helped improved insurer financial performance,” says Robert Hartwig, I.I.I. senior vice president and chief economist.
The increase — although small — is driven in part by consumer behavior. If you pop by your local Home Depot or Lowe’s, you’re bound to see hordes of homeowners embroiled in the current home improvement craze. The I.I.I. study says that between 2001 and 2002, approximately 41 million homeowners have added to or otherwise improved their homes.
“Over the past several years, millions of families took advantage of near-record low interest rates, purchased larger homes or made additions and improvements to their existing homes in record numbers,” Hartwig says. “Bigger, newer and upgraded homes cost more to insure simply because they’re more expensive to rebuild or repair.”
The report also addresses insurance’s cost drivers, singling out losses as the most important influence on homeowners’ insurance premiums. Between 1990 and 2002, home insurers paid out about $1.17 in losses and expenses for every $1 earned in premiums, the I.I.I. says. This number improved in 2003, with insurers paying out about $0.98 for every $1 earned. However, 2004’s series of hurricanes pushed losses up to about $1.01 for every $1 earned.
Catastrophes also contribute to rate increases. The study says that 2004’s four hurricanes inflicted $22.5 billion in losses, contributing 83% of 2004’s record $27.3 billion natural disaster losses.
“Homeowners insurance rates in some parts of the country continue to rise because of the extraordinary costs associated with paying these catastrophic claims,” Hartwig says. “In fact, virtually every part of the country is either at risk or has experienced a billion-dollar disaster.”
New Jersey is not in top 10 for most expensive
According to Forbes Magazine, Texas is the most expensive state for homeowners’ coverage. For an additional article and a listing of the 10 highest states click here.
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Do you have proper homeowners’ coverage? It’s time to review and we will be glad to help you determine the best protection for your most valuable asset. Please contact us.
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Rental car coverage—Should you buy it?
The question is often asked at a car rental agency's counter: "Would you like to buy additional insurance coverage for the car you're renting?"
Before making that decision, there are some things you should know. Most personal auto insurance policies sold in New Jersey provide you with some coverages for a rental car: They are:
- Liability coverage for damage or injury you cause;
- Comprehensive and collision coverage (if you have them on your own vehicle);
- Personal injury protection for your injuries or those of your passengers: and Uninsured motorists’ coverage in case of an accident with an uninsured motorist.
- (These coverage's do not apply if you rent a pickup or van for business use.)
What's not covered under your auto policy for rentals are charges the rental agency might hold you responsible for while the vehicle is out of use. Generally, this is a daily charge and can be up to $200 per day!
And, you can be held liable for damage to the car even if it's not your fault. These two issues would be taken care of if you bought the additional rental insurance.
Here’s a typical rental insurance information page from Avis.
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We're ready to advise you on how to protect yourself from financial loss. Please just give us a call.
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Are you using these dangerous products?
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Martha on the hot seat again? — Well, Martha Stewart Everyday “sunny meadow” votive candle sets are. The candles sold at Kmart stores have a “high” flame posing possible burn injuries. Return to Kmart for refund or contact cservice@lavaenterprises.com |
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Sharp Electronics TV — Power button can break allowing youngster to insert objects which man cause fire. There have been 23 reports of such fires. Models recalled are 27-inch Sharp TV’s model #’s 27RS50, 27RS100, and CSR5027. Contact Sharp at www.sharpusa.com/tv |
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Honda 2004-2005 FourTrax ATVs — The steering rods can separate causing driver to lose control leading to possible crash and serious injury. A variety of models are recalled including Rancher, Foreman, Recon, etc. Click here.! |
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