What is Gap Insurance?
If you have recently purchased or are planning to purchase a new or used vehicle you may want to consider purchasing Gap Insurance.
When you drive your new or used car off the dealer's lot your car has most likely lost 20% of its value and you need Gap Insurance.
If you put less than a 20% down payment on your car you need Gap Insurance.
If your car is stolen or declared a total, your insurance company will pay the actual cash value of the car. The actual cash value can be a lot different from what you still owe on your loan. Without Gap Insurance your lender will hold you responsible for paying the difference between the actual cash value and the amount left on the loan.
Dealers charge between $500 and $600 for this coverage.
Not everyone needs Gap Insurance but if you think you should have it and would like more information on how it works, please give us a call and we will be happy to discuss it with you.
Why do I need a Personal Umbrella policy?
Jury awards and out-of-court settlements routinely run into hundreds of thousands or even millions of dollars. Add to this the cost of legal fees, and the expense becomes staggering. An unexpected catastrophe could result in a large judgment against you. Without adequate protection, your current assets could be placed in serious jeopardy.
A Personal Umbrella policy could protect you against excess liability judgments for loss, injury, or even death caused by negligent acts. It is designed to provide liability protection over and above the insurance policies you currently have.
Consider the following example:
One evening a 17-year old took his parent's car out for a drive. He crossed over a median and collided head-on with another vehicle. Two passengers in the other car were killed, and a third was seriously injured. The 17-year old driver was found negligent and ordered to pay $1.5 million to settle the injury claims. The parents had an auto policy with a $300,000 per claim liability limit. Fortunately the parents carried a Personal Umbrella policy. The auto policy paid $300,000, and the Personal Umbrella policy paid the remaining $1.2 million.
With a Personal Umbrella policy, you are covered if the limits under your primary policy are used up. Your assets, as well as your future earnings, are protected.
In today's society, lawsuits are occurring with alarming frequency. Moreover, the monetary awards can be staggering. Your current insurance will protect you against a minor misfortune - but it probably would not give you the needed protection against a catastrophic loss.
Because of the high incidence of Identity Theft you can now obtain coverage on your homeowner's policy to protect yourself from the high cost of restoring your name and credit.
Each year millions of Americans fall victim to Identity Theft and may spend months - even years - and their hard-earned money restoring their good names and credit records. Your doors and windows may be carefully locked, but identity thieves know no bounds.
For comprehensive tips on how to protect your good name and credit record, refer to the Federal Trade Commission's Web site by clicking on: http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/about-identity-theft.html
What is a flood?
Flooding is defined as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties from the following:
* Overflow of inland or tidal waters
* Unusual and rapid accumulation or runoff of surface waters from any source
* Collapse or subsidence of land along the shore of a lake or other body of water, as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood.
What does a Flood Policy cover?
Residential Building Coverage
Building coverage insures a house or dwelling, attached and detached garages, as well as certain permanently installed fixtures such as built-in dishwashers, permanent shelving and cabinetry, furnaces and radiators, hot-water heaters, plumbing fixtures, stoves, ovens and refrigerators.
Residential Contents Coverage
Contents coverage insures most of your personal property and belongings, including:
* Furniture, housewares, bedding
* Decorative items, lamps and lighting fixtures
* Books, home electronics
* Area rugs and draperies
* Clothes washers and dryers
* Air conditioners
* Food freezers and the food in them
* Portable microwave ovens
Coverage in Basements
Flood insurance covers structural elements, essential equipment and other basic items normally located in a basement, such as:
* Unfinished drywall for walls and ceilings, including non-
* Electrical junction and circuit breaker boxes, and required utility connections
* Central air-conditioning units
* Furnaces, hot-water heaters, fuel tanks and the fuel inside them, and heat pumps
* Light fixtures
* Foundation elements
However, flood insurance does not cover basement improvements such as finished walls, floors or ceilings or personal belongings that may be left in a basement such as furniture and other contents.
Everyone lives in a flood zone - floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure, etc.
* Flooding can happen anywhere - about 25% of flood insurance claims come from low to moderate-risk areas
* Flood damage is not covered by homeowners policies
* Flood insurance is affordable
* Flood insurance is available to homeowners, renters, and business owners
* There is a 30-day waiting period unless you are purchasing at the same time you are writing a mortgage
* Federal disaster assistance is not insurance coverage - it is a loan that must be paid back
* There is also an inexpensive preferred rate policy available if your flood zone qualifies.
Parent Prakop & Associates
Insurance Agency, Inc. Stoughton, MA 02072