Courtesy of iii.org How gap insurance works When you buy or lease a new car or truck, the vehicle starts to depreciate in value the moment it leaves the car lot. In fact, most cars lose 20 percent of their value within a year. Standard auto insurance policies cover the depreciated value of a car—in other words, a standard policy pays the current market value of the vehicle at the time of a claim. If, when you finance the purchase of a new car and put down only a small deposit, in the early years of the vehicle's ownership the amount of the loan may exceed the market value of the vehicle itself. In the event of an accident in which you've badly damaged or totaled your car, gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount you actually owe on it. When you might need gap insurance It’s a good idea to consider buying gap insurance for your new car or truck purchase if you: Made less than a 20 …
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It’s Lightning Season
Courtesy of iii.org “When thunder roars, go indoors!” is a truism that actually holds up. But much of what we think we know about lightning is fiction. Here are some common myths, along with the facts that will keep you and your loved ones safe in a storm. At any given time on our planet Earth, there are 1,800 thunderstorms in progress—and with them comes lightning. Property damage from lightning is covered by standard homeowners insurance for your home, and the comprehensive portion of an auto policy for your car—but bodily harm from lightning isn't easily remedied. During a thunderstorm, it's best to take shelter in a house, other structure or a hard-topped, fully enclosed vehicle. But as one of these options may not be available to you, your safety and wellbeing may depend on knowing the difference between these lightning myths and the facts. Myth #1 – Lightning never strikes twice in the same place. Fact: Lightning often strikes the same place repeatedly, …
Hurricane Checklist for Renters
Courtesy of iii.org RENTERS INSURANCE If you rent, rather than own, your home, have you bought renters insurance? While your landlord may provide insurance coverage for the structure of your home, as a renter you are responsible for your own belongings. Renters insurance covers the loss or destruction of your possessions if they are damaged by a hurricane or other disaster listed in the policy. A standard renters insurance policy also includes ALE coverage if you are unable to live in your house or apartment due to damage caused by a hurricane. Flood insurance is also available for renters. However, as for homeowners, the NFIP flood insurance policies for renters do not include ALE coverage. Don’t wait to review and update your insurance until after you have a loss—there are few things worse than finding out you did not have the right kind of coverage when you are already filing a claim. So before hurricane season kicks off, make sure you’ve reviewed home or renters …