Renee Pike’s 10 Ways to Lower Home Insurance Costs
1. Raise your deductible.
Deductibles are the amount of money you have to pay toward a loss before your policy coverage begins. Deductibles on homeowners policies typically start at $500. By increasing your deductible to $1,000, you could save up to 24 percent; $2,500, up to 30 percent; and $5,000, up to 37 percent, depending, of course, on your insurance company.
To paraphrase Shakespeare, “To purchase the CDW or not to purchase the CDW, that is the question.” It has been debated for years whether or not a person renting a vehicle should purchase the Collision (or Loss) Damage Waiver from the rental company. Our recommendation is that consumers, in general, SHOULD purchase
the CDW/LDW, at least for short-term rentals. Our reasons are given below.
1. Loss Valuation. The Personal Auto Policy (PAP) covers the lesser of the “actual cash value” of the vehicle or the amount “necessary” to repair or replace the damaged property. The rental agreement may very well contractually obligate you to reimburse the rental company for the “full value” of the vehicle. The PAP also does not pay for any “betterment” (increased value of new parts replacing old ones) of the vehicle, nor any “diminution” of value (if the market value of the vehicle after repairs is less than that before the accident).
What’s a PUP?
“PUP” stands for Personal Umbrella Policy, which provides an extra layer of very affordable liability protection for your personal assets and future earnings.
ACCIDENTS HAPPEN. That’s why people have insurance. However, if you aren’t protected by a personal umbrella policy, you could be putting your house or your financial assets at risk.
A personal umbrella policy substantially increases your overall liability coverage beyond the basic coverage provided under your homeowners and auto insurance policies. This low-cost policy is designed to protect you and your family against a catastrophic lawsuit or judgment.