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Builder’s Risk Insurance –What Is It & Who Needs It?

Builder’s Risk Insurance:

Insurance provides protection against most risks and no doubt that insurance is the most powerful weapon for a risk manager to indemnify the damages and losses. Builder’s risk insurance is such a specialized property insurance which covers a building or other type of structure while that is under construction. It is so crucial that many of the lenders don’t dare to finance a construction project without the presence of builder’s risk insurance. Generally this specialized insurance policy gives protection against the damages or losses resulting from acts of vandalism, fire or wind. If required or needed other types of risks such as terrorism, earthquake and flood may be added to the builder’s risk insurance policy.

As buildings are subject to a number of risks especially while they are under construction, builder’s risk insurance should be given the first priority to ensure the safety and investment guarantee. According to the common law the improvement to land or any new construction becomes the property of the owner of the land. But in the case of damages or losses due to the negligence of the contractor, the contractor will be responsible for that but for most other losses or damages the owner of the land will be responsible. So, the owner of the land is actually responsible to get the builder’s risk insurance but the contractor can also be added as a named insured to the policy.Under this specialized insurance policy the structure or building itself is insured against damages and any supplies or materials will also be covered by the policy while it is in action.

The builder’s risk insurance policy should be managed by a skilled and experienced insurance broker. At times the coverage level of policy may cross several million dollars. So, there is no alternative to assign an experienced insurance broker to get the policy prepared properly so that the owner of the property can get the appropriate level and type of protection from the policy. To do this the broker should be given the exact project details including the value of the completed building, labor and material costs of the building and other necessary information.

Who Needs Builder’s Risk Insurance:

Though the builder’s risk insurance is usually bought by the owner of the building, other persons or parties such as the contractor, sub-contractor, home builders, real estate developers and others with a financial interest in that construction project can buy this policy. Some financial lending corporations or trade associations may also have financial interest in million dollars projects and they may also require such builder’s risk insurance policy. This policy may be needed to comply with the local state, country or city building codes.

But whoever buys this policy the person or party has to provide accurate and reasonable information to the broker to maximize the safety coverage. Some phases of the construction have higher risks and some may have lower risks but it needs to measure the risks effectively for the best result.

 

Source:  http://www.canoninsurance.com/builders-risk-insurance.php

The Risks of Cheap Car Insurance

The cost of car insurance has always been a big headache for all of us. To most of us it seems something like wasting money until we actually need it. Naturally the car owners have a common tendency of finding out cheap insurance for their cars. I am not saying that this is wrong because certainly there is no harm in trying to save money. But, if you focus more on price than the safety and coverage then it may result in serious harm to you in near future. So, you should keep in mind some particular facts while finding or dealing with any cheap car insurance.

It is known to all that the cost of car insurance mainly depends on the type of coverage and safety offered by insurance companies. Depending on the car usage pattern and coverage requirement we may need different types of insurance coverage. However, there are number of companies who offer only basic coverage at a very lower price to attract us. But the wisest decision is to stay away from such policies as they are not effective enough and will not provide enough coverage while needed. I am suggesting this because I believe that coverage should be given equal importance to price, if not more.

As the competition in the market is increasing, the smaller and weaker companies are offering surprisingly cheaper car insurance policies just to survive. But, they are not capable enough to provide quality service and coverage. The problem is that all of them seem the same until you apply for a claim. But once you will face such situation that will be too late and understanding the fact at that time will not bring any good result for you. So, it’s better to be careful in advance. Even if you get coverage to some extent, that will take months to be processed because of the poor quality service. So, my suggestion will be to get coverage from a well-known company which may not offer you such cheaper policy but you will be provided the best possible services and coverage.

Another issue with the cheap car insurance companies is that most of them don’t have 24/7 live customer support. Perhaps they can offer you chat-support because they are always trying to save money by compromising service quality. Always remember that the insurance companies are here to do business, not to help you without interest. So, you will always get what you will pay. If you pay less you will get less. It’s a simple formula.

Remember that the companies offering cheapest deals are also following the same strategy you are.  They want to cut their costs and what they pay out just like you do.  There is the very real risk that they will try to keep the amount they pay out in if you have an accident to the absolute minimum.

So, don’t go for a cheaper policy without having enough understanding. First of all evaluate all the related facts and proceed with caution so that you can ensure the best coverage for your car.   Make sure to choose the most suitable car insurance policy according to your requirements and capability and if you do go with a super cheap company for your automobile insurance make sure that you read the fine print and understand exactly what they will pay out if you have an accident.

The Pros and Cons of PPO and HMO Health Insurance Policies

Health insurance has become a major concern for all and no doubt there are strong reasons behind that. But the effectiveness of insurance directly and indirectly depends on selecting the appropriate policy. So, choosing one among the available options is crucial to ensure the coverage and safety you want to get from your policy. As there are several factors to be considered and number of issues to be fixed it may be a hard task to find out an appropriate health insurance policy for you. Here I am describing the pros and cons of two most common health insurances HMO and PPO so that you can develop a clear idea about them and can select the most suitable one for you.

Preferred Provider Organization (PPO): PPO is one of the most popular health insurance plans. Let’s see what are the advantages and disadvantages you may have to face if you decide to get a PPO policy.

Pros:

  • You will not have to choose and be tied to any particular primary health care physician.
  • You will have access to a large number of facilities and physicians.
  • You will be able to choose whatever physician or doctor to see for medical care.
  • Having a referral to any specialist is not needed at all.
  • While using a participating provider you will be able to fix a negotiated amount which will be less than the amount you would have to pay without the plan.

Cons:

  • Almost always there will be a deductible to be met.
  • There will be a co-insurance amount after the deductible is met which you will have to pay.
  • PPO will cost you more compared to other plans because of the deductible, co-insurance and other out-of-pocket costs.

Health Maintenance Organization (HMO): Being different from PPO plan HMO health insurance plan has some pluses and some minuses which are needed to be considered with importance to determine whether it is appropriate for you or not. Let’s evaluate the pluses and minuses of HMO.

Pros:

  • The premium you will have to pay for the HMO plan is comparatively lower.
  • You will have to pay smaller co-payment for every visit which will fall in the range of $5-$20.
  • Another benefit of HMO policy is that you will not have to pay any deductible which is a great way of going.

Cons: Besides these plus points there are also some minus points which you can’t overlook. The points are-

  • The main disadvantage of HMO is less accessibility. As it offers lower premium you will have to face limitations in accessing doctors.
  • There are also some limitations in services provided by HMO policy.
  • HMO plans are more restrictive than the PPO plans.
  • Lack of privacy is another drawback of HMO plan as the employees of HMO can review your record without your permission.

Choosing an appropriate health insurance plan really matters. So, evaluate all the factors and determine the most effective one to ensure maximum coverage at minimum cost.

The Most Common Types of Health Insurance

Now-a-days people are more health conscious and this is one of the major reasons behind the increasing popularity of health insurance. If you decide to get a health insurance policy you will find a number of options to choose from and there will be some crucial factors which you will have to consider. You will want to choose one which provides you the coverage and care you need at a cost you can afford. Some most basic facts which you will need to consider are your health history, kind of coverage the policy offers, affordability, whether the plan allows the option of choosing your own physician and so many other factors.

However, these factors may differ slightly depending on the types of insurance you will choose. Basically, there four major types of health insurance available in the insurance market. They are –

  • Health Maintenance Organization (HMO)
  • Point of Service (POS)
  • Preferred Provider Organization (PPO) &
  • Traditional
  • Health Maintenance Organization (HMO): HMO insurance provides you the opportunity of choosing your primary physician who will be a part of the HMO network. The primary physician will be there by your side to fulfill all your immediate medical needs. HMO insurance also lowers your hospital visit cost and if you are admitted in that case your deductible will not have any limit. Under this policy if you need more extensive medical service then your primary doctor or physician will be responsible for referring you to another doctor.
  • Point of Service (POS): POS insurance and HMO insurance are very similar. Here you can choose your own primary physician like the HMO insurance policy but the additional benefit you can get from POS insurance is that you will have the right to choose another physician who is out of the network or is not affiliated with the insurance network. The disadvantage of POS insurance is that you will have to pay a part of the physician’s charge from your pocket and this percentage may vary according to your policy rate. Generally the premium for POS insurance is higher than for other health insurance.
  • Preferred Provider Organization (PPO):  A PPO insurance policy is slightly different from the HMO and POS policy as you will not have to choose your primary care physician in PPO and are not required to use only the network’s physicians.  Also, you do not have to get a referral from your primary doctor in order to visit another doctor or specialist.  You are also allowed to visit a physician who is out of the insurance network but in that case you will have to pay an extra amount from your pocket over what your company would pay if you went to one of their providers for the same service.   In PPO you can enjoy the no limit deductible cost. The main benefit of PPO is that if you get involved in a serious accident and taken to a medical service or hospital out of your network, you will not be punished financially rather the PPO will help you to cover your medical cost. But, in HMO and POS you will have to bear the total cost of medical emergency.
  • Traditional: A traditional health insurance policy lets you to customize your plan according to your wishes.  This type of policy costs you a much higher deductible and has higher premium than the other plans. Though this is the most flexible of all plans, you are required to pay service upfront.

Take all of the factors and pros and cons for the different types of insurance plans into effect when choosing the policy that’s best for you.

Life Insurance – Why Everyone Needs It

Life insurance can be said both an investment and an insurance due to its characteristics. A life insurance is also an important part of all our financial planning. When you sign up for the life insurance, you get the financial protection against financial losses caused by the early or unexpected death. The life insurance policy guarantees to pay your beneficiary (spouse or others) the specific amount of money after you die and in exchange you pay premiums on a regular basis.

Reasons to Have Life Insurance:

There are number of reasons why everyone should get a life insurance without wasting time. Consider reading the most important reasons why life insurance is beneficial to you, me and everyone else.

  • Assurance:This is a common fact that rainy days will come and go away in life but are you always ready to meet those days, maybe not. So, what will happen when you will pass away? This is the point why everyone needs life insurance. Because, when you have a life insurance you are assured that the needs of your beloved persons will be cared and your family will not have to face any financial hardship even after your passing away.
  • Saving Your Family from Stress: Funerals requires lots of money and emotional strength. But at that time when your family will lose you forever they may be lacking of both strength and financial capability. So, it’s better if you make all the arrangements earlier by yourself to make them a bit stress free. You can do it with the help of life insurance. So, be practical and help your family while they will be helpless.
  • Ensuring Future Income for Your family: No doubt all of us are afraid of death but the reasons are not the same. There are people who are afraid but not because of the afterlife, they are afraid of thinking what will happen to his or her beloved family after his/her passing away. But if you have a life insurance you are free from this tension. With life insurance you know how much your family will get even after you are gone. You can also arrange investment with your premium according to your own wish to ensure greater profit for your family. So, options are open for you. Make you beloved one’s future secured and get satisfied.
  • Ensuring Permanent Care for the Dependent Family Members: If you have any beloved one in your family who is handicapped or dependent on other, it is obviously a matter of worry for you. But you can ensure his/her permanent care for the rest of the life even after your life leaving enough money for her/him by getting a life insurance.
  • Eliminating Chance of Debt: Death can be expensive as there may have medical expenses, burial and funeral expenses. It means your family may sink into debt if you don’t have enough arrangement for that. Getting a life insurance you can eliminate this chance of your family’s sinking into debt quite easily.

So, what are you waiting for? Go and get your life insurance to secure the future of your beloved one.

Is Travel Insurance Worth It?

You have been dreaming of an adventurous vacation full of excitement and thrill to somewhere far-away for years and finally you are very close to make your dream turn into reality.

What happens if at the last moment an emergency arises and you have to cancel your trip?   At that point you would lose most if not all of your money.  This is the point where travel insurance comes into action. Travel insurance has been around for longer than you might think. Travel insurance helps travelers by covering various last minute emergencies and cancellations.  Be aware though that not all policies are the same.  Checking exactly which areas a particular policy covers is important so you know what exactly is covered under the policy and what isn’t.

Starting from forced-to-work cancellations to medical emergencies there are wide varieties of coverage in travel insurance and these can range from $40 to several hundred dollars. You may be thinking why should you increase your expenses by buying a travel insurance policy when the tour itself is a costly one and you are certain you will be taking it.   That’s common thinking, but travel insurance may be required for a number of reasons such as work interruption, weather, medical and others and the cost of policy varies according to reasons of coverage.   Things happen.  Even fluke events.  Remember a few years ago when that volcano erupted in Europe and all of those people were stuck for weeks?

While purchasing a travel insurance policy read the terms and conditions properly to make sure that you are not paying for getting coverage for those areas which are already covered by other insurances you already have such as that through a credit card provider. You can take help from your insurance agent in this regard so that everything is done perfectly. You can also obtain your policy through your travel provider or travel agent.

When You Need It: Just imagine that you are going overseas to attend an important event but due to some unexpected reasons your flight is delayed and you are going to miss the event totally. It’s really frustrating but if you have travel insurance you can cover the expenses (at least some of them) associated with the delay.

You may also face activity related injuries and rental car damages which are also covered by a travel insurance policy. If you want to cover the rental car damage with your auto insurance it will increase your auto insurance premium. So, it’s better if you pay a bit more for travel insurance to get rental car damage coverage. But, the more areas you will want to cover with the policy the higher the policy will cost you. So, be selective and make logical assumption which areas you should give more importance for coverage.

How to Get Affordable Life Insurance

Can you guarantee that you will be alive tomorrow, next week or even next year? You can’t.  No one can.  None of us know exactly how much time we have left.   Now just think what would happen to those near and dear to you if you are no longer there in their lives.  While it’s true that you can’t escape from death, you can still you can help them without being in this world by making sure that you have life insurance to provide for them when you are gone.   Though life insurance can’t save your life, it can help your family and loved ones in the event of your death – perhaps the insurance will help your family remain in the house or even help your children afford to go to college.

So, no doubt taking life insurance policy is a wise decision, but the question you probably want to know is how can you get an affordable life insurance policy.  Affordable life insurance is readily available everywhere. You just have to understand your basic requirements and then have to select the one which suits you most in terms of both premium expenses and how much coverage you want it to provide.

Here are some tips for you which will help you get affordable life insurance.

  • The world economy has become quite unpredictable. So, it’s important that you choose an insurance company which has been in service for at least 20 years or longer and has proven they have the ability to survive in critical situations.  You don’t want to pay in to a policy and have it not be there when your family needs it to be.
  • Understanding the terms and conditions of the policy is crucial. Don’t hesitate to ask your agent whatever you want to know.  You want to make sure that you understand what is covered under the policy (ex: what causes of death are covered) and what is not.
  • You will find number of insurance companies over and they all sound the same.   Don’t fall into trap of being taken in by a great ad. Compare the details of policies offered by different companies, talk to people personally who have experience of purchasing such policies and carefully analyze the before sales and after sales service quality of those companies. Doing this you will have a clear idea and your own point of view regarding these policies.
  • An issue you should take into consideration that the healthier you will be the more affordable the life insurance policy will be.  So, try to purchase life insurance policy as early as possible. You can also put all your insurance policies in the same company which is also a wonderful way of getting affordable policy with cheaper rate.

So, take a bit stress, do simple research and make a wise decision to ensure your loved ones stress free and secure future. It’s your turn, do it now. Who knows that tomorrow will give you a chance or not.