How to save a ton of money and avoid financial disaster

Friday, March 24, 2006 | 07:33 AM

I'm gonna save you a ton of bucks right now, and maybe if you are really unlucky, a few $100,000.

In one of those odd confluences of fate, I heard two really awful insurance related stories yesterday, neither of which had to be so painful.

Learn from them.

Ugly Story One:
A relative has her condo up for sale. Long story short, jewelry was stolen during one of the showings. A few specific expensive pieces were pilfered.

Here's the insurance info you may not know:  Unless you specifically have a rider for individual items on your Home Owner's policy, you are likely looking at a $3,000 limit (it varies by policy). 

Not per piece -- without a rider, that may be the total limit on personal items. EVEN IF $50K IN GOODS IS STOLEN (Ouch)

Important Lesson:  Buy a rider for specific items worth more than $3k in value: Rings, Bracelets, Earrings, Watches, even Plasma Screens. I assume the same applies to any Art items -- paintings, lithos, etc. Of course, save reciepts and place copies in a duplicate locations.

Also, one can never go wrong with an Umbrella Liability Insurance policy; $3 Million is actually prettty cheap coverage.


Ugly Story Two:  You have fire insurance, which you assume covers rebuilding your home in the event of a total loss. Not true. As one of my neighbors discovered, their insurance is for a specific dollar amount -- NOT REPLACEMENT VALUE.

So if you bought a house 10 years ago for $300k, your insurance today (likely $150k -- it covers the home, not the land) is likely totally inadequate to replace the home in the event of a total loss.

Important Lesson:    Periodically review the replacement cost of your home(s). Get builder/contractors estimates of a total rebuild costs; Upgrade your coverage to full replacement cost.


Pay attention:  I declare today CALL YOUR INSURANCE AGENT AND COVER YOUR ASS day.


Feel free to share insurance horror stories -- as well as good coverage tales -- in the comments below.


Friday, March 24, 2006 | 07:33 AM | Permalink | Comments (21) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference How to save a ton of money and avoid financial disaster:


Always buy replacement value insurance.

I had a house fire in 1988 and believe me, it was worth it.

Posted by: spencer | Mar 24, 2006 8:31:17 AM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™