Category Archives: Insurance
What We Don’t Know About Liability Insurance
Today, it is almost impossible to find cheap liability insurance. Even though risks may be infinitesimally small each premium carries with it the additional burden of ‘wild optimism’ cited by former Federal Reserve chief, Alan Greenspan.
The biggest bail out of recent times wasn’t for a bank. AIG, an insurer in the US with thousands of dodgy mortgages on its books, was bailed out for $182 billion dollars. A week after the firm received the bail-out employees blew nearly half a million dollars on spa treatments and champagne at a weekend getaway to discuss ‘strategy.’
We’re the schmucks who pay for all this of course. As well covering the actual cost of risk we end up paying the bonuses of bankers and brokers and traders. They have managed to get to the top of the pyramid and cash out. We’re still stuck lower down watching our money, pensions and life savings burn.
The idea of offsetting risk has been around a long time. Liability insurance has existed in one form or another since Roman times. Merchants in the middle ages would share risks in order to minimise the effects of inclement weather or erratic navigation.
Time was when there was no Fire Brigade as such. Insurance companies each had their own fire services who would rush to fires only to watch uninsured homes burn to the ground.
Today we’d think it absurd for the Fire Brigade to be forced to make a profit but this is exactly what happens in other areas, like insurance against burglary. Far simpler, surely, to indemnify everyone in an area through a local taxation system and use profits to improve policing.
Public liability insurance helps businesses cover themselves against the growing compensation culture in Britain. Of course it’s reasonable for negligence to be punished and those who have suffered injury or loss to be compensated. Problems arise when over-zealous lawyers put a price on everything and insist that we’re all ‘owed’.
The insurance industry skims billions from the economy each year and has bet even more.
Tips on getting the best home insurance quotes
When gathering and comparing home insurance quotes, it is important to make sure you are getting the lowest quotes available. Of course, be sure to carefully examine your own insurance needs regarding the amount of coverage before deciding on a home insurance policy.
To save money, start by shopping around. There is a lot of variety between homeowner’s insurance rates at different companies. After a major life change or every couple of years, check the premiums for your policy with a couple of different companies.
While gathering quotes, ask about combining all of your insurance policies with the same insurance company. Several companies offer good discounts to their customers who hold more than one policy with them. If you don’t have more than one home to insure, ask if there are discounts offered for purchasing homeowner’s, auto, and life insurance policies from the same company.
Next, inquire if increasing your deductible can save any money. According to a recent survey of insurance rates, increasing the deductible from $2000 to $4000 on a homeowner’s insurance policy can save nearly $200 a year from a policy’s principle. The majority of homeowners choose not to claim small amounts of damage, choosing instead to pay for small disasters out of pocket. This means that increasing the deductible should not have a great impact on an individual or family’s finances.
Next, try to eliminate unnecessary coverage. As the size of a household is increased or decreased many consumers discover riders and higher coverage amounts on their policies are no longer necessary. Ask about how much you could save by cutting coverage on expensive jewellery, appliances, electronics, furniture or recreational vehicles that you or your family no longer owns.
While making these policy changes, go ahead and eliminate coverage for items that can be replaced on your own. When a person has relatively few assets that can be sold in the case of an emergency, paying for insurance riders to cover damage to costly items can be a good idea. If you have the ability to cover the loss of the items on your own, however, you can drop these extra riders. Getting rid of these extra policies can potentially save a hundred dollars a year.
As a final resort, ask about discounts on things or behaviours you already do or could start doing. For example, a few homeowner’s insurance companies offer discounts on premiums for projects such as installing storm shutters, storm windows or a security system. Insurance companies have also offered discounts for policy holders who are part of a neighbourhood watch program or who agree to a security or energy audit of their home.
Homeowner’s insurance can take up a large part of any individual’s or family’s budget. Hopefully, these suggestions can help you and your family to cut back without noticing any ill effects.
