Saving Up and Planning For Unexpected Expenses

Oct 06, 18 Saving Up and Planning For Unexpected Expenses

“All days are not same. Save for a rainy day. When you don’t work, savings will work for you.”

M.K. Soni

The hurricane season last year left many households in wreck, not just on their properties but also in their finances. The destruction left by the inclement weather forced many people to spend more on unexpected expenses.

Over the past few years, destructive weather disturbances have become common. But while these phenomena are not new nowadays, the sad fact is that only very few American households actually save up for these ‘unexpected’ expenses.

Come to think of it, many of us make budget plans every year (some do it monthly). Some even write their financial plans on creative planners, such as those reviewed at https://getlifeyoudesire.com/. We allot budget for basic necessities, transportation, mortgage, vacation, insurance, etc. But not all of us actually allot money for unexpected expenses. As a result, our finances get drained when these unplanned expenses occur.

Preparing for Sudden Expenses

Aside from storm-related costs, there are many other unanticipated expenses that can arise throughout the year. Emergency home repairs, additional power and heat consumption, car repair bills, annual insurance premiums, sports fees, new membership & subscription fees, medical expenses, and other lump sum expenses. This list can go on and on, as there are endless sudden expenses that you can face.

Saving Up For Unexpected Expenses

Unanticipated expenses can eat up a large sum of your daily budget and even savings. That is why, it is vital that you include it in your annual budget management plan. Here’s how to effectively prepare for these sudden costs.

  1. Identify the common unexpected expenses. Usually, these expenses are seasonal in nature so you can actually foresee them. Some examples of sudden expenses include car repairs, Christmas gifts, car insurance, winter season, dental bills, property taxes, etc.
  2. Review your previous year’s credit card and bank statements. See any irregular expenses or withdrawals. This should help you better identify the sudden expenses you’ve accrued.
  3. Sum up all the amounts paid for unexpected costs that are beyond your monthly paycheck. Divide the sum with your total annual paychecks. So, if you incurred $3,000 for sudden expenses, divide by 24 (if you receive bi-monthly paychecks), then you’ll need to allot $125 for unexpected costs.
  4. Consider it as a recurring expense and pay it up every time you receive your paycheck. For a more organized financial management, you can use the best goal planners that you can find at Get Life You Desire.
  5. Be ready to adjust with your budget and spending habits. You can also start saving small then move up until you reach the target savings. This should help avoid hurting your spending on basic necessities.
  6. Set up electronic transfers that will automatically fund another savings account intended for unexpected expenses. This will help you manage your money better and avoid forgetting your savings.

Once your savings begin to grow, you might be tempted to spend on unnecessary buys. Avoid this itch by thinking of your goals for the savings. Just think that if you spend it now, you’ll end up paying more on debts in case sudden expenses come your way.

 

 

 

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Do You Need Coverage for Antique and Vintage Collections?

Antiques and vintage collections are fast becoming popular. Aside from being great home interior pieces, these timeless pieces are also great investments. Unlike other assets, antique pieces get pricier as they age.

Almost every household will have a special collection of antiques or heirlooms. Probably you have a collection of intricate jewelries or perfectly carved furniture items, as if they were done with high quality wood router. Considering their price or market value, it’s difficult to imagine if anything bad happens to these priceless belongings. Unfortunately, not all home insurance cover loss or damage of these hard-to-replace valuables. So, if you have a collection of priceless belongings it is best to check with your insurance agent whether your policy covers loss of antique items.

One of the misconceptions is that regular homeowners insurance covers all high value items such as collectibles, vintage, antiques, and family heirlooms. In most of these policies, the coverage is very limited and is often not even enough to cover the actual price of the lost item. For instance, some policies may put a cap of $3,000 for antiques, collectibles and art. If you’re a serial vintage collector, then this meager coverage is definitely not enough to cover your collection’s actual value.

If you think you need additional, specific coverage for these belongings, you can either work with your insurer so that you can add a rider to your current homeowner insurance policy for items that are valued over the standard coverage of your home policy OR you can also take out a different insurance floater for every vintage collection you have in your home.  Talk with your agent to see which approach will benefit you most.

Some people aren’t sure whether they really need to take out a collectible insurance. Here let’s take a look at some scenarios where a collectible insurance could save you:

  • Your vintage furniture pieces gets destroyed by fire
  • Fine art pieces get stolen
  • Autographed memorabilia get drenched in flood water
  • Delicate figurine pieces breaks after an earthquake
  • Catastrophe damages your wine collection

These are just a few unwarranted scenarios where you could lose your prized belongings. Since these possessions are valued in the thousands or may have special connections with your family, it is just wise to protect them by taking out the right insurance policies. An insurance will give you peace of mind while knowing that your treasured possessions are protected from sudden loss.

A lot of vintage and antique collectors are unsure about the worth of their collections. And this is the reason why many do not bother to take out specific insurance. It would be helpful to have your vintage items, collectibles and antiques appraised every now and them. An antiques appraiser can help you determine the worth of your items so you can get the right insurance protection you need.

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Protect yourself and your home with flood insurance

If you live in a flood prone area, having flood insurance helps a great deal in preventing financial loss due to flooding. Even a few inches of floodwater can lead to enormous damage. In the US, between 2010 and 2014, the damage claim involved due to flood alone was over $39,000 in an average residential flood situation. And the premium paid annually for flood insurance was around $700 in a year.

Flood insurance is provided for renters, homeowners, and commercial and condominium owners. The cost varies based on the insurance amount purchased, the area covered, and the flood risk of the concerned property.

While considering flood insurance policy, you should discuss about insuring personal property as contents are mostly given optional coverage only. Since it is vital to protect your home along with its contents from floods, you need to consider the right coverage. Depending on the level of flood risk your home is subject to, the insurance premium would vary.

Low risk

If you live in a moderate or low risk locality, you can avail low premium insurance. Low risk areas are automatically eligible for preferred risk coverage, but if your home doesn’t qualify, you need to opt for the standard rates.

While flood insurance is not mandatory, any home can be vulnerable to a flood situation. Even those who do not come under the high-risk areas have claimed flood insurance and received assistance for damage from flooding.

Basement cover

The flood insurance policies generally cover the foundation elements of the house and the equipment needed to provide support to the building such as circuit breakers, water heaters, furnace etc. While the circuit breakers, water heaters, and furnace come under building cover, the freezer, dryer, and washers come under contents cover. To protect the basement from major damage due to floods having a proper SUMPPUMP is must.

Flood insurance does not however cover improvements done on basement such as ceilings, floors, finished walls, or other personal belongings.  To know a more detailed list, you should look into the flood insurance policy forms of your insurance policy provider, so you are not faced with any unpleasant surprises during a claim.

High risk

In case you reside in an area that has high flood risk, the only option available is the standard rate policy, which offers separate cover for contents and building.

Premiums

The flood insurance premiums are calculated based on the year of construction of the building, location of contents, number of floors, building occupancy and location of the floor present at the lowest level for newer buildings, the deductibles you opt for and the coverage value you choose for the contents and building. In case of high flood risk locations, you should have flood insurance, especially if you have a mortgage for your home through an insured lender or federally controlled lender.

Other than homeowners, renters too are eligible for flood coverage at preferred rates. This ensures a low cost premium, while providing cover for the building and contents.

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4 Terrorism Insurance Cover

Sep 10, 15 4 Terrorism Insurance Cover

With the raise of mass terrorist global events ever since the terrible events of September  11, 2001; many business and property owners have seen the need to cover their property against loss through terrorism. As we can see, maybe this type of insurance wouldn’t cross most people’s minds, but it is actually becoming increasingly popular all over the world.

People are becoming more and more scared of losing their health, lives or property due to some form of terror attack and the market for this started emerging. This fear people have has prompted the insurance fraternity to devise a cover for this market need. However this is a tricky cover given that the chances of their occurrence are very low while they have huge potential losses.

We all know how important it is to have good insurance coverage. Most people have basic home, business or personal insurance which covers domestic and business injuries. Most injuries happen at home or in the workplace and are a result of falls or improper handling of tools such as framing nailers, or tools that malfunction (a good way to prevent this is to learn how to handle tools with care and, for example, look at a good framing nailer review site before making a purchase).

But, terrorism insurance is an important insurance cover especially to regions most exposed to terrorism activities. In fact it is the only way for any business to protect itself from losses arising from terrorism activities. In regions most vulnerable to attacks and violent extremism such as Africa, insurance companies have tailored the terrorism cover into various marketable insurance cover which benefit both the insurer and the insured.  But don’t think that this market exists in developing countries only – it is also very prominent in the US. Some of the available insurance covers in the most insurance markets are:

  • Property Terrorism and Sabotage cover
  • Political Violence property cover

However the main challenge facing these covers is the potential massive losses expected from the occurrence of these loses coupled with inadequate accumulation control. This makes most insurance companies to turn to overseas re-insurance, since the locally available re-insurers don’t have the capacity to cover them.

Insurance policies will compensate or have already compensated owners of the several businesses for property damage and business Interruption. It is therefore important to be safe rather than sorry by having your business covered against terrorism-related loss. For business  situated in regions susceptible to terror attacks, this cover is more of an essential than a luxury and everyone would be well advised to have their property covered.

On the part of the insurers, it is important to have the available terrorism covers to be tailored to suit everybody and cover broad geographic and financial spectrums.

All in all, the terrorism insurance is the next best thing after anti-terrorism measures; since not everybody can contribute in fighting extremist terror activities they can be prepared to combat the property losses arising from terrorism activities, by being covered against losses from terrorism events.

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Insuring Against Tool Accidents

Aug 18, 15 Insuring Against Tool Accidents

Any mechanic or machinist who has invested thousands of dollars or more into a quality set of tools knows the value of those items and understands the need to keep them insured against events like loss, damage or theft. But what some of them may not consider is that accidents can happen to the one wielding the tools just as easily as they could happen to the tools themselves. Insuring yourself against accidents and injuries caused by your tools is important if you work with them often, especially if you use those tools to maintain a livelihood for yourself.

To be frank, if you already have a health insurance policy, you may have coverage against the accidents described here. However, that’s something you’ll probably want to check before you try completing any dangerous projects – better to know you’ve got it and not need it than end up needing it and not being sure you actually have it. It’s unfortunate how few people actually read the fine print to their policies and understand exactly what type of coverage they have. Don’t be one of those people; if you have health insurance then be sure you understand it in and out.

On the other hand, if you have no coverage at all, you might do well to consider establishing a policy specifically for tool-related accidents. This will undoubtedly cost less than a general health policy, since the coverage is very specific and limited to only a number of accidents or occurrences. If the only thing you’re worried about is getting hurt by your tools, this is a perfect answer to your lack of insurance coverage. Some tools can cause a lot of damage to the user; for example good quality reciprocating saws can take fingers right off the user’s hand if they aren’t careful, and that’s just the start of what could go wrong.

Other tools can be much more dangerous than a standard reciprocating saw though. Belt sanders could literally kill a person if their hair gets caught in the machine. Nail guns have killed people before and they probably will again in the future. Naturally, the best way to deal with these hazards isn’t through insurance, but rather by making sure you handle all of your power tools and equipment while following the proper safety protocols in the first place. These can usually be found in the owner’s manual, though some things are just common sense.

For instance, if you have long hair and you’re going to be working with heavy equipment, it would be wise to tie it back and keep it out of the way. The same thing goes for loose-fitting clothing; that could be just as bad if it gets caught in spinning wheels or interlocking gears. At the end of the day, even with taking all proper precautions, accidents can still happen. With that in mind, take a good look at your current coverage if you have any to see if it suits your needs – or consider getting some if you have none right now.

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Workplace injuries and the right insurance cover

Jul 24, 15 Workplace injuries and the right insurance cover

The mention of workplace injury may make you think of huge scale manufacturing units or construction sites. But in reality employees who work in environments that are considered not as risky are more prone to illness or injury.

A study done by the United States Department of Labor cites that over 3 million Americans suffered injuries of non-fatal nature while on job in 2013. And a majority of these injuries were in service providing industries alone.

Common injuries

The injuries that are frequently reported at workplace include

  • Injuries caused by repetitive motion, which is common to many jobs. When the exposure to repetitive motion is over a long term, it can cause strain on tendons and muscles.
  • Overexertion injury is another commonly reported injury and the causes include throwing, carrying pushing, pulling, or lifting.
  • Tripping or slipping injuries, which result due to slippery or wet floors or because of debris being left in walkways
  • Violence on the job due to employee disagreements
  • Falling from considerable heights results, when faulty equipment is used or if a worker slips by accident.
  • Vehicle accidents sustained while employee is performing job duties.
  • Injury while handling or operating heavy machinery is also a cause when a body part, clothing, or hair gets caught in the equipment. While cutting timber for instance, workers are prone to injury because of the heavy equipment and force needed. This can be averted mostly by the use of log splitters you can find at http://logsplitterpro.com

Most often workplace injuries are due to bodily reaction or overexertion to the usually office tasks. It is the responsibility of the employer to ensure best practices, so such injuries and the insurance liabilities that follow are avoided.

Preventing workplace injuries

Business Insurance companies estimate the premium level based on the claims history, existing safety, and health care processes. When a company ensures an established and solid risk management framework, the insurers will take on a more favorable approach at the risk involved. Some of the ways to prevent injuries at workplace include proper training of employees, advanced planning and good communication.

Proper systems in place for operation, first aid and safety procedures help in maintaining a high safety standard.  If needed employees should have easy access to the right safety tools, clothing, and equipment.

Maintaining the right work environment by clearing the workplace of mess, clutter, and spills helps in better safety. Proper storage space helps to alleviate most of the clutter you see in offices and work spaces.

Most injuries at workplace are due to carelessness of employees, their distracted mindset or overexertion. Sick employees have higher risk of being injured. Ensuring a comprehensive benefit plan is in place for employees will help them feel supported and take care of their health properly. Insurance companies, which offer a blend of disability, life, medical, and other products should be chosen. An insurance company that has a customized plan, which can help benefit the needs of your employees, is an ideal company you should consider.

 

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