You can pay less by being loyal to an insurer. but not always. In fact, there are times when you’ll save a bundle by being disloyal to an insurance company. So, when does it pay to be loyal and when does it not pay. Knowing when to switch and when not to could save you a few hundred dollars.
Take inventory of your and your family’s personal possessions. A video recording is the easiest thing to do, but an item by item list with your estimated values is even better. (Store these off of the premises in a safety deposit box or something similar.
Did you know that if the seller lives out of state and he breaches the contract, that you can file a lawsuit in the county and state you dwell in but you would have to transfer the lawsuit to the state the seller resides in because you have to file a lawsuit in the sellers domain, and this can be very costly.
Become a respected source enabling them to get what they want. For example if your target market is convenience stores and your niche is http://floodinsure.wordpress.com what makes that attractive to a convenience store owner? You want to become the recognized expert for preventing catastrophic gaps in coverage that puts owners out of business. You have experience working with small business owners like them. You know their requirements, and you know what to look for to make sure they are neither over nor under insured.
Next, I changed my car insurance to the new company that I just purchased home insurance through. I went from paying $112 a month to $82 a month, so now I’m saving $30 a month to pay toward my credit card debt, but that’s no where close to paying off the amount that I owe in the time frame that I want to do it in, but I was starting to feel some power and hope. Total savings a month is now $71.
Gentle readers, this is not an isolated incident in the claims process for property claims. Insurance companies are serious about holding down their claims cost. And it is YOUR responsibility to prove your claim.
Several things change in home ownership such as real estate taxes, insurance changes from renters to homeowner’s coverage, and repairs to the roof or replacement of the water heater. The net cost can be close to your rent but the cash flow is different. The best way to buy a home is to be able to put 20% down for conventional loan. There are many ways to finance mortgage but the loan cost increases as the down payment decreases. The accumulation account could be used to pay the down payment and help with cash flow.
Carrying a higher deductible also discourages making too many smaller claims which can impact rates by losing claims free discounts and making it difficult to switch carriers. However, once you go past a $1000 deductible, the point of diminishing return starts to apply and the savings is usually not worth the risk. You want to manage your risk wisely.
Albert Einstein (1879 – 1955) called compounding interest the 8th wonder. It can work for you, or against you. When you invest it works for you. When you borrow it works against you! There is a reason God told Noah to take a male and female of each species aboard the ark.to multiply. That is what compounding interest does for you and your financial ark. Creating a wisdom-based financial plan can help you put the 8th wonder to work for you.