Your insurance policies probably
include coverage you've never thought about. In order for you to get
the most value from your policy, check out these things that may
already be included for your premium payments:
Americans
have a 10 percent chance of being sued in any given year and a 33
percent chance of being sued in their lifetimes, according to IFG Trust
Services Inc., an international investment firm. Both your home and car insurance
will provide you with legal defense if you're sued for an incident
that's covered by your policy. For example, your home insurance company
will provide a lawyer if you are sued because someone is injured on
your property -- whether it's inside your home or outside on the
sidewalk.
If a court finds you negligent
and awards damages to the other party, your insurance will pay up to
the liability limits defined by your policy. If you have assets to
protect, such as a house, savings or investments, consider buying an
umbrella policy. Umbrella coverage, which provides liability coverage
above and beyond your home and car insurance, typically starts at $1 million. Read how umbrella policies extend your coverage.
Say
your normally mild-mannered tail-wagger has a bad day. One of your
neighbor's children wants to play but your pooch isn't in the mood and
responds negatively. The bite causes the child an injury that requires
hospitalization. Your neighbor sues you, seeking reimbursement for the
child's medical bills. Depending on what breed of dog you own, where
you live and your insurance company, home insurance may have you
covered. Some home insurers have lists of breeds and crossbreeds they
will not insure; other insurers consider such breeds on a case-by-case
basis, or charge more for certain “biting” breeds such as pit bulls.
Check your policy or call to see if you have coverage. For more, read home insurance for dog lovers.
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11. Flat tires, lockouts and more
A
number of things can go wrong with your car. Maybe you hit a pothole on
your way to work and suffer a flat tire. Perhaps you mindlessly locked
your keys inside your car. It's possible that your gas gauge
malfunctioned and you ran out of gas. If you added roadside assistance
coverage to your car insurance policy, you're covered for most of these
things. For example, Progressive's Emergency Roadside Assistance
coverage includes towing, flat-tire changes, battery jumpstarts,
emergency fuel and fluid delivery and locksmith service. Roadside
assistance coverage is optional and relatively cheap.
12. Bad checks, fake cash and other fraud
If
someone writes you a bogus check, your credit card is stolen or you
unknowingly accepted counterfeit cash, you could be covered. According
to the Insurance Information Institute (III), home insurance coverage
can include unauthorized use of credit cards, forged checks and
counterfeit cash. However, policy limits are generally very low, such
as $500.
13. Family grave markers
If
a grave monument on a family plot has been vandalized or otherwise
damaged, such as struck by lightning, it may be covered, depending on
your insurance company. Many companies provide up to $5,000 for damage
to a grave marker, including headstones, monuments and urns, according
to III. However, policies generally exclude damage resulting from a
catastrophe, such as a hurricane. There's no additional charge for this
coverage.
14. Trees, plants & your lawn
Many
home insurance policies automatically cover damage to trees, shrubs,
plants and lawns on your property. Damage can be the result of theft,
vandalism, an aircraft crash, riot, explosion, fire or lightning.
Generally, there's a $500 limit for any one tree, shrub, plant or
re-sodding a lawn.
15. Spoiled Food
If
the food in your refrigerator spoils due to a power outage from a
covered peril, you may be covered — depending on your insurer and where
you live. However, the power outage must be the result of a covered
peril such as windstorm, lightning, fire or hail. Some companies
automatically include this under your homeowners policy. Others sell
food spoiler coverage as a separate endorsement.
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Car
accidents are dangerous not only for people but also the pets riding
with them. And because pets don't have the benefit of seat belts, even
a minor collision can result in pet injuries and major veterinary bills.
Depending
on your insurance company and where you live, your car insurance could
pick up the bill. For example, Farmer's Insurance will pay for pet
medical costs up to $600 if you have comprehensive and collision
coverage — in some states. You don't pay extra for this coverage.
Coverage applies in the event of your pet's death or injury in a car
accident, hijacking or theft (exotic animals not included). Here's more
about insurance coverage for pets in car accidents.
If
a group like Al-Qaeda bombs your neighborhood, your property is covered
under both your home and car insurance policies. Standard homeowners
insurance policies include coverage for damage to property and personal
possessions resulting from an act of terrorism. If your car is damaged
or destroyed in a terrorist attack, your car insurance policy will
cover the damage if you have purchased comprehensive coverage. But if
you carry only liability coverage, your car would not be covered.
While
terrorism is covered, acts of war are excluded. After an attack, the
government would declare whether it is terrorism or war and your
insurance will respond accordingly. Note that biological and nuclear
attacks are not covered. Here's how insurance takes cover from war and biological attacks.
Say
your teen invites a few friends to your home and later you discover
that your .40 caliber semiautomatic handgun is missing. You would
report the theft and your home insurance will likely cover it. Most
standard policies cover theft of firearms for up to $1,500. If you own
an extensive collection of guns, consider purchasing extra coverage.
If
you've just hosted a rollicking party but one of your guests left drunk
and caused an accident, the finger of blame could point at you. In most
states, you can be held responsible for his actions and find yourself
in court. If a civil claim is filed against you, your home insurance
pays for your legal representation and any damages the court awards —
up to the limits of your policy. See where you could be held liable under "social host liability" laws.
It's important to have adequate liability coverage. Most insurance
agents recommend buying liability coverage between $300,000 and
$500,000.
If
you loan your car to a friend for a few hours and he crashes it, your
own insurance policy will come to your rescue. (It doesn't matter
whether or not your friend is insured, because your policy kicks in on
your car.) Your policy insures your vehicle plus “you, any relative and
anyone else using your car if the use is with your permission.” Even if
your friend has his own car insurance, your insurance will pay for
damage caused to others and, if you carry collision insurance, for
damage to your car. However, you'll have to pay your deductible for any
collision claim. For more, read about what happens when your friend crashes your car.
We've
all stashed purchases in our car in a mall parking lot and gone back in
for more shopping. But car insurance does not cover personal
possessions that are stolen from your vehicle. Fortunately, theft of
personal property is covered under your home insurance. You'll need to
file a police report and pay a deductible to make a theft-related
insurance claim. If your receipts are stolen along with your gifts, you
will need to document your purchases, perhaps by obtaining duplicate
receipts from the stores.
Any
trip can turn sour if your luggage does not return with you.
Fortunately, many home insurance policies will reimburse you for lost
or stolen luggage. Loretta Worters of the Insurance Information
Institute says that this falls under "off-premises coverage" in some
home insurance policies. Sometimes coverage is automatic, but some
insurance companies may charge extra, she says.
If
you made expensive purchases while on vacation that are gone with your
luggage, you won't recoup your expenses. Generally, you will be
reimbursed only up to $500 for loss of personal property in luggage. If
you know you will be making expensive purchases, you should probably
have certain items insured separately.
If
a thief robs your child's college dorm, your home insurance policy
should have you covered. Most home insurance policies will extend
coverage to theft of personal belongings in your child's dorm. However,
coverage does not extend to an off-campus apartment rented by your
child; for that you'll need renter's insurance. Also, your child must
be a full-time student and be considered your dependent for coverage to
apply.
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