Insurance

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3 What is Insurance ? An agreement that states something is protected if it is damaged, hurt, or stolen. Essentially, when you purchase insurance on something it can protect your investment. If anything happens that is covered by the policy you can receive funds from the insurance company to have it replaced, fixed or receive a cash settlement.

4 What types of insurance are there? Health Insurance Automobile Insurance Renter’s Insurance Property Insurance Umbrella Policies Life Insurance

5 What types of insurance do I need ? Health: This includes, vision, medial and dental insurance. Health insurance is a must. If you don’t get sick often, there are cheaper forms of insurance that will protect you in case of a major medical emergency. Automobile: Insures you and your vehicle Automobile insurance is a must. Talk to your insurance agent and make sure you have enough coverage.

6 What types of insurance do I need ? Cont… Renter’s Insurance: Covers your personal belongings in the place that you rent. Renters insurance is important for those with nicer things. If have a 20 year old TV and a couch you found in the alley–this insurance may not be so important.

7 What types of insurance do I need ? Cont…. Property Insurance: Covers any properties that you own. Umbrella Policies: Provides additional coverage on the insurance policies you have and additional protection that covers accidents and other issues that medical, property and auto insurance policies don’t. Life Insurance: Provides your loved ones coverage in case of death.  Will or trust – although not insurance per say these will help your family avoid probate.

8 Steps to ensure you have enough Insurance Coverage: Contact the companies you currently have your insurance with and 2 other companies and make comparisons. Ask a lot of questions and take good notes. Consult with a trusted, knowledgeable, friend that may help you sort through the information you received. Make a decision to keep your policies the same or make changes so you are better protected. A knowledgeable agent can help you pick the best insurance to protect you and save you money.

9 Insurance information …. All insurance policies are made up of an actual policy and a premium. This defines that coverage in the policy and the amount you will pay for the coverage.

10 Commonly used Insurance definitions: Insurance policy: An insurance contract that describes the type and amount of coverage, as well as the premiums and deductibles included in the policy Insurance premium : The payment made to an insurance company in exchange for an insurance policy guaranteeing protection or coverage on what you insure. Deductible: The amount of the loss you pay out of pocket to the insurance company on the damaged good.  For example: If you get in a car accident and have $4,000 in damage and a $500  deductible, the insurance company will pay everything but $500. The $500 is your responsibility..

11 Commonly used Insurance definitions: Cont…. Coverage limits: The maximum amount paid by an insurance company.  Example: Your insurance covers only $50,000 in damages and you have $60,000 in damages, they will only pay up to the coverage limit. Insurance policy: An insurance contract that describes the type and amount of coverage, as well as the premiums and deductibles included in the policy.

12 What is an Insurance claim ? This is the paper request for reimbursement of damages or a request for payment of damages to the insurance company. When a claim is made to an insurance company, the insurer or person filing the statement must make a written or verbal statement to the company. This statement included details about the incident that occurred and why they need the insurance company to get involved with the payment process. This is a crucial part as many companies use this statement to determine eligibility for payment within the claim.

13 What is an Insurance claim: Cont… This is a crucial part as many companies use this statement to determine eligibility for payment within the claim.  Some companies are in the business of paying as little claims as possible. The insured person must submit in writing all records of financial expenses involved with the claim.  This means that you must submit all receipts for the items when you purchased them or bids/estimates of how much the work will cost to repair the item  If this is done incorrectly the insurance company will find a reason to pa you less or not at all. Be truthful at all times.

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