Do You Need Rental Car Insurance?

The cost of rental car insurance continues to increase each year. While, understandably, you may feel compelled to decline this coverage from the rental car agency, make sure you consider the following points first.

If you have an auto policy in place, you may be covered for collision damage and a certain amount of rental car liability. However, it is essential to understand exactly what your policy offers because the coverage may contain exclusions or restrictions.

If your credit card company offers rental car coverage as part of its membership benefits, you also need to understand the specific terms of that coverage. Although most standard credit cards do not provide any protection, many of the more preferred credit cards, such as "platinum" or "gold" cards, provide secondary rental car collision-damage coverage.

If you still find you have insufficient coverage through these sources, you may want to consider purchasing additional insurance offered by the rental company. Insurance purchased through a rental car company provides the following important protections:

• Collision Damage Waiver (CDW). Sometimes called a Loss Damage Waiver (LDW), this coverage provides protection if your rental car is damaged or stolen.
  
• Liability Coverage. Rental companies are required by law to offer the minimum level of liability insurance required by your state; however, this may not be enough to cover the damages resulting from a serious accident.
  
• Loss of Use. If you are in an accident, the rental company may charge you for the amount of money and time it lost since the vehicle could not be rented to other customers. Most personal insurance does not cover this portion of a loss, though it may be provided as a part of the CDW or through credit cards.
  

Making sure you have all the facts regarding the coverage options for rental car insurance is imperative. Before your next trip, please give us a call, so we can evaluate your situation to make your decision easier.

Learn More
about Disasters

Try When it comes to preparing for a disaster, a good offense is the best defense. For more information on how to better prepare for all types of disaster, visit the Federal Emergency Management Agency (FEMA) online at www.fema.gov. You’ll find valuable resources on disasters ranging from hurricanes and floods to wildfires and terrorism, with pages dedicated to planning ahead, applying for assistance, and recovering and rebuilding.

Another helpful resource is the National Hurricane Center’s website, www.nhc.noaa.gov. Their hurricane preparedness tools can help you develop a family disaster plan applicable to any emergency situation, including guidelines for taking care of pets. In addition, you’ll find tips for creating a disaster supply kit with a checklist you can print and use.

While disasters are often sudden and unpredictable, there are steps you can take to prevent damage and protect your family.

Does Your Homeowners
Insurance Need a Check-Up?

When was the last time you evaluated your homeowners insurance? Chances are your needs have changed since you initially purchased your homeowners policy, which may mean that there are gaps in your insurance coverage. For example, you may have acquired expensive possessions that require extra coverage, or you may have made some home improvements that have increased your home’s value. How would this affect your financial health in the event that you need to replace your home and its contents after a disaster? Here are some tips on how to keep your insurance current with changes in your home and possessions:

Be familiar with your homeowners policy. Read your policy’s provisions, limits, and exclusions, and contact your insurance professional with any questions. Set up a meeting to analyze any potential homeowner risks that may be applicable to your particular situation.

Assess your home's cost to rebuild regularly. If you had to rebuild your home and replace its contents in today’s marketplace due to a disaster, would you have enough insurance to cover the rebuilding and replacement costs? Be sure to regularly assess your home's cost to rebuild, including your personal possessions, so you can adjust your insurance coverage for appreciation, rising construction costs, and home improvements.

Check community building codes. Sometimes, a damaged home can’t be reconstructed exactly as it was without violating current building codes. For instance, the home may need electrical rewiring or special windows due to updated safety or energy codes. Knowing about these expenses in advance can give you time to obtain the necessary insurance protection to cover the extra expense.

Keep an updated home inventory. Documenting your possessions, both on videotape and on paper, may prove invaluable in the event that you need to file a claim or replace your home’s contents after a disaster. Update this inventory yearly to include all new possessions. Also, be sure to store extra copies in a safe place outside your home, in case something happens to the original.

Evaluate your liability exposure. Does your homeowners policy offer enough liability coverage for your needs? A personal umbrella policy may be a worthwhile consideration. Umbrella policies provide excess liability coverage in $1,000,000 increments and apply to situations that your current policies might not cover.

Parting Thoughts. . .

A homeowners insurance policy can help protect you and your family from suffering a devastating financial loss as a result of damage to your property. It offers you protection against expenses you otherwise might not be able to afford. Keep your policy current and sufficient to cover home improvements or the acquisition of high-value possessions. Failure to maintain proper coverage may result in your sharing a greater portion of a loss than you had expected in the event of a disaster. Regularly review your insurance coverage to help ensure it continues to meet your needs.

There are many resources that can provide you with more information about identity theft prevention and protection, as well as offer you guidance should you unfortunately become a victim. The following are some useful phone numbers and websites:

• The Federal Trade Commssion:877-IDTHEFT, www.ftc.gov or www.consumer.gov/idtheft.
  
• The Social Security AdministrationOffice of Inspector General (Fraud Hotline): 800-267-0271, www.ssa.gov.
  
• Internal Revenue Service: 800-829-0433, www.irs.gov.
  
• Federal Communications Commission:888-CALL-FCC, www.fcc.gov.
  

Remember that taking a few, simple, preventive measures can help you deter potential identity crimes against you.