When an individual purchases a home and they have a mortgage to pay, the lender will require the homeowner to purchase house insurance. Which means, in addition to each months’ mortgage payments, the owner of the new home will have to pay for home insurance.
The home insurance policy that the homeowner purchases must cover the value of the home. This is a staple in the home buying process and it is there to protect both the owner of the home and the mortgage company from a total loss.
Home insurance coverage is essential when it comes to fires, floods, and other types of disasters. In fact, most home insurance policies will cover fires along with other types of disastrous events. However, the amount of coverage required is often based on the actual area that the person lives in.
For instance, in some areas of the country, the potential for having a flood is much higher than others. This means, in these parts of the country, the lender will require mandatory flood insurance in their policies. On the other hand, if the potential for floods is rare, the homeowner may purchase a policy that covers fires for their peace of mind only.
Post Mortgage and Home Insurance Coverage
Once the owner of the home has paid for the house, mandatory home insurance is not a requirement. Continuing the homeowner insurance is left up to the owner of the home. In these cases, the owner of the home may choose to drop the coverage entirely.
However, before making a move, the owner should consider the initial reasoning for requiring insurance. The original purpose of buying and continuing the insurance was to protect the lender’s interest in the home and the owner of the home. Although the mortgage company no longer has an interest in the home or the property, protection from fires and other disasters is still needed by the homeowner.
With this in mind, the owner will have to make their decision based on what could happen if the unthinkable does occur. Which means, dropping the insurance may be great for saving money but it could cause financial devastation if the house is destroyed by fire.
However, if the owner of the home is still concerned about saving money, there are at least two viable options that can help. These options will not eliminate the payments or drop the house insurance policy, but it can help with saving extra money. These two options include reducing the coverage on the home and shopping around for lower rates.
Reducing the Coverage
Reducing the coverage on the home does not have to be tricky or risky, since the homeowner may already have more coverage on the home than they actually need.
For instance, if the value of the home has decreased in a declining market, the owner can reduce the policy to only include the present value of the home. If this is not the case, the owner can proceed to option two.
Shopping Online for Better Rates
Option two includes shopping online for reduced rates. Today, shopping online makes the process much easier. However, to make sure the new policy has the same features with a better rate, it may take a little time.
Read also: Sears Credit Card Payment Online
When Insurance Claims Go Wrong
Insurance is not the sort of topic you that has you turning pages or clicking ‘read more’ at the end of an excerpt, but there are times when insurance can be extremely entertaining. This is especially true when you learn about some of the funnier people insurance company employees have encountered in the normal operations of their business.
You Can’t Make it Up
When you hear some of the claims, it’s easy to think that the story can’t be true, but the saying truth is stranger than fiction is never more fitting than with insurance claims. Here’s a selection of the more believable of the unbelievable:
It Was the Copper’s Fault
One driver blamed the police for pulling him over to the hard shoulder when he was driving over the speed limit in the middle lane. His statement read, “I saw the blue lights of the police car in my rearview mirror and decided to pull over, but I accidentally hit the police car to the side of me.”
Obviously, the claim was denied because he should not have been speeding in the first place and the fact that he hit a car because he pulled over without looking is his own fault.
It’s All About the Timing
The copper excuse is nothing compared to the driver who pulled out of his drive and collided with a bus. His excuse was that the bus was early and should not have been there at the time he pulled out of his drive.
Needless to say, that was another denied claim, but the funniest part of the claim was when the claimant had to fill in the section that asked what could have been done to avoid the accident. In response, he wrote that he could have traveled by bus. At least he did not say that the buses should run at the correct time.
When the strange becomes ordinary, it’s sometimes hard to distinguish the real pearls of wisdom on the claim forms, but these next few stand out even among the most strange statements.
- “I thought the speed limit didn’t apply on Sundays”
- “We were waiting at the lights when the car reversed into us”
- Question – What caused the skid marks leading up to your tires? Answer – They must have been there before.
- I know I said I had no injuries at the scene of the accident, but I found I had a broken ankle when I woke the next morning.
- The pedestrian ran in the wrong direction, otherwise, I would not have hit him.
- I did hit the car with my bumper in the location specified, but I remember seeing the car already had impact damage in the same place.
- I didn’t see the lamppost because there were people in the way.
- I did collide with the stationary car, but it was going in the wrong direction (???).
- The man I knocked down admitted he had a history of being knocked down, so it was his fault.
- I locked eyes with the other driver more than once and that should have given her plenty of time to get out of the way.
While not all insurance claims are such open and shut cases, there are more than enough to keep claim investigators busy no matter what line of insurance they are in. Driving is one of the most common forms of insurance and the rising number of ambulance chasers are fuelling the claim stories from the true to the absurd.
5 Things to Consider Before Making a Personal Injury Claim
If you have suffered from a personal injury and would like to make a claim for compensation, then this is your right. However, there are a number of things that you may want to consider before you actually make your claim. Here are some of the most important considerations that you should think about before you go ahead.
1. Your Chances of Winning
The first thing that you really need to consider is whether you have a good chance of winning when you make your claim. If you do not stand much of a chance when the case goes to court, it could end up being a waste of your time, and it could also be a stressful and unnecessary experience to go through.
You will not know what your chances are until you speak to a lawyer with experience of personal injury claims, who will be able to tell you fairly early on whether you have a good case.
2. No-Win, No-Fee?
If you are thinking about making a claim, you may want to consider a ‘no-win, no-fee’ arrangement. This is where you hire a lawyer on the basis that if you do not win the case, you do not have to pay their fee.
However, whereas this can be a good way to make a claim because it can help to save you money if you lose, you may still have costs to pay. You should, therefore, find out exactly how much you could end up paying before you agree to the arrangement.
Because it can sometimes prove to be expensive if you lose your claim, it is generally advised that you take out after-the-event insurance. This will cover any costs that you have to pay to the winning party and reduces your financial risk involved in going to court.
4. How Long the Claim will Take
You may also want to find out how long it will take for your claim to be processed. It may take longer than you think, and you may not be willing to wait for that long. As a result, it is always worth finding out from a specialist what you can expect when the case goes to court.
5. Who to Hire to Help You Make the Claim
One of the most important considerations of all is who you should hire to help you make your claim. It is not generally advised that you make your claim without any professional help, and you will probably be much better off hiring a professional lawyer.
Make sure that you look for someone who has experience with personal injuries, however, as they will know the system and will be able to answer your questions with greater accuracy.
Keep These Considerations in Mind
These are some of the main things to consider before you make a claim for compensation as a result of a personal injury that you have suffered.
Going to court is a decision that should never be taken lightly, so spend some time going through the above factors to help you to decide whether it is the right course of action, and try to speak to a lawyer if you can because they may be able to provide you with answers to your most important questions.