Insurance

What’s Under Your Policy’s Hood?

So your homeowner’s policy is very likely to cover a bit more than just your home. Therefore, it’s important to understand exactly what’s covered and for how much. Most policies typically offer the following types of coverage:

• Dwelling
• Other structures
• Personal possessions
• Loss of use
• Personal liability
• Medical payments

Dwelling – More than Just Your Mortgage

One common mistake homeowners often make is to only get enough insurance coverage to cover the cost of their mortgage. Your mortgage, however, does not represent the actual value of your home, or the cost to replace the home as is. Ultimately, what you want is enough insurance to completely rebuild your home in a worst case scenario. Your best bet would be to hire a builder to assess your house and provide an estimate for current replacement costs. Insurance agencies also sell “guaranteed replacement cost” insurance, which – as the title implies – guarantees that you’d be covered for the full cost of replacement, but those policies are costly and hard to come by.

Alternately, you can get “extended replacement coverage”, which in most cases means the insurer will pay out up to 125 percent of your policy limit towards rebuilding your home. Some insurers offer an “inflation guarantee”, which increases to cover changing costs over time. Otherwise, you’d be wise to routinely review your dwelling coverage against the actual cost to replace – materials and services are likely to increase in cost over time, meaning total replacement may require a higher policy limit.

Special Circumstances

Depending on where you live and what hazards your house faces, you may need to purchase additional types of coverage. The most common type of supplemental insurance is flood insurance. In many locations, flood insurance may actually be required by your lender before closing on a mortgage.

Unfortunately, the reason flood insurance exists is because most regular homeowner’s policies don’t cover damages related to flooding. If you’re unsure about whether or not you need flood insurance, you can visit FloodSmart.gov, which is the National Flood Insurance Program’s website.

Other Structures and Personal Possessions

Coverage for “other structures” generally refers to unattached buildings (like a shed) or fences on your property. As with dwelling coverage, ideally you should have a policy limit high enough to fully replace these structures should they be destroyed.

Personal possessions, as a category, can be a little trickier. A popular rule of thumb is to insure your possessions for about 50 to 75 percent of your dwelling coverage, and then purchase additional coverage for any possessions of exceptional value (like expensive pieces of jewelry). If you’d like to be a little more accurate, you can use an app or a program like KnowYourStuff to create a complete catalog of all of your possessions.

Loss of Use, Personal Liability, and Medical Payments

Loss of use coverage represents money that would be available to you if you were temporarily displaced from your home and needed to stay somewhere else. It’s a bit like the rental car coverage you may have included in your car insurance.

Personal liability and medical payment coverage are there to protect you in the event someone is hurt or injured on your property. Medical payment coverage specifically covers medical bills for you or anyone else who suffers an injury on your property, while personal liability kicks in if you’re sued for injuries or damages occurring on your property.

Without adequate personal liability coverage, your savings and other accumulated assets could be at risk if an incident occurs. It’s hard to know exactly how much personal liability coverage is the right amount, but you should definitely consider the relative risk factors (Do you have a swimming pool? Is your home more than one floor? Etc.) when deciding on an amount.

Your Deductible

Finally, while homeowner’s insurance is expensive to have, it’s also expensive to use. Like most forms of insurance, if the cost of a repair is low enough to handle out-of-pocket, it’s usually in your best interests to do so. That’s why it’s often preferable to choose a policy with a high deductible, since a higher deductible usually means a lower premium, which can represent a significant savings over time. It’s a good idea to earmark a portion of your savings for out-of-pocket repairs or covering your deductible so you’ll be prepared if something goes wrong.

Need a little more help? MMI offers homebuyer education courses for anyone looking to buy a new home. Whether you're a first-time homebuyer looking to learn the basics or current owner in need of an education certificate for a specialized loan program, these online courses are thorough, informative, and easy-to-use.

Pets Best Has Three Types of Plans

1. BestBenefit Accident and Illness Plan
2. Accident-Only Plan
3. Wellness Routine Care Plan

What Does Each Plan Cover?

1. BestBenefit Accident and Illness Plan
   This is the most popular and comprehensive plan offering coverage for accidents and illnesses. Examples of accidents include a broken bone, laceration, and eating a toy or sock. Examples of illnesses include cancer, allergies, ear infections, and diabetes.


2. Accident-Only Plan
   This budget-friendly plan has coverage for accidents only. It does not cover illnesses.


3. Wellness Routine Care Plan
   Wellness routine care plans cover include coverage for items such as vaccinations, teeth cleaning, and flea & tick prevention. This can be added on to either of the above two plans.

What’s Not Covered?

No pet insurance company covers pre-existing conditions. But, if your pet has a pre-existing condition (for example allergies) there are still thousands of other future health issues that pet insurance covers. Additionally, it’s not liability insurance and it’s not life insurance for pets.

How Much Does Pet Insurance Cost?

1. BestBenefit Accident and Illness Plan
   The cost is based on the pet’s age, breed and location. So you have to get a quote to see how much a plan will cost. However, a common monthly price range is $30-$65.


2. Accident-Only Plan
   This is a flat rate plan. It only costs $6 per month for cats and $9 per month for dogs.


3. Wellness Routine Care
   Plan Pets Best offers two routine care plans. The EssentialWellness plan is $16 per month and the BestWellness plan is $26 per month. (The price only varies in Washington state where EssentialWellness is $14 per month and the BestWellness is $30 per month).

What is Pet Insurance?

Pet health insurance reimburses pet owners on veterinary bills when their pet gets sick or injured. Pets Best also offers a routine care plan (for vaccinations, flea and tick preventatives, and more).

Dogs and cats of any breed can be enrolled in a pet insurance plan starting at 7 weeks old, up to any age. Pets Best plans are available in all 50 states & D.C.

Why Do Pet Parents Need It?

• 1 in 3 pets will have an unexpected veterinary visit this year.¹
• Veterinary care is more sophisticated than ever, therefore costs have gone up (pets can have MRIs, chemo, etc.).
• For peace of mind.² So you can go back to enjoying your pet, rather than worrying about what might happen & the cost.

Here’s How Pet Insurance Works, In 4 Easy Steps

1. Get an Instant Quote & Sign Up
   Get a pet insurance quote for your pet(s) in three minutes or less. You can enroll immediately if you’d like. You don’t need your pet’s medical records to enroll and Pets Best offers a 30- day money back guarantee.
    
2. Get Treatment
   When your pet becomes ill or injured, take them to the veterinarian.
    
3. File a Claim
   Pay your veterinarian, and then submit the claim to Pets Best.
    
4. Get Reimbursed
   Pets Best processes most claims within 5 days, then reimburses you on that veterinary bill. You can add your direct deposit account information for free, so you’ll get your money back even faster.

It’s a good idea to think about flood insurance in advance of an event, because standard homeowners policies exclude flood coverage. You can find out whether your property is in a low-, moderate- or high-risk flood area by entering your address into the Federal Emergency Management Agency (FEMA) database. Keep in mind, however, that 25 percent of all flood claims are from people who don’t live in high-risk areas. And because of the recent boom in new housing developments, the land’s natural runoff pattern might have changed from what a 10-year-old flood map shows.

MetLife Auto & Home is proud to offer our customers flood insurance through the National Flood Insurance Program (NFIP) and Federal Emergency Management Agency (FEMA), and it covers more than just the structure of your home. It also covers debris removal, damage to your contents and more. Contact your local MetLife Auto & Home representative or call one of our flood specialists toll free at 855-666-5797.

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Here are five steps to take now, while you’re still working:

1. Schedule your annual checkups and recommended screenings.
   Regular screening can help you avoid health problems in retirement. Early detection can identify health problems at the onset — and either eliminate them or make them more manageable. Talk to your doctor about recommended screenings, based on your age and health history.
2. Eat healthy and exercise.
   Staying active and eating right as you age reduces your risk of many chronic diseases. And it can improve your mood and boost your energy. Focus on eating nutrient-dense foods such as vegetables, fruits, legumes and whole grains. Limit your intake of saturated fats, added sugars and sodium. If you haven’t exercised in awhile, schedule your physical before your begin.
3. Choose your health care providers.
   Take the time to find health care providers with whom you feel comfortable. Select a primary care physician, specialist for any existing conditions or special needs, an urgent care provider, and a full service hospital. Ask your friends and relatives for recommendations. Then see if the physicians and facilities you select will accept the insurance you’ll have when you retire. Planning up front lets you control the quality of care you receive — and manage you costs.
4. Understand your health insurance options.
   Health care in retirement is expensive — even with Medicare and private insurance. A study by Fidelity Investments estimates a 65-year old couple will need $240,000 to cover their out-of-pocket health care costs if they spend 20 years in retirement.
   
   Take the time to understand how Medicare works. Medicare covers a lot of your expenses, but it doesn’t cover them all. So in addition to the cost of your Medicare coverage, you’ll probably want to purchase supplement insurance to fill in the gaps.
   
   If you plan to retire before age 65, you’ll need to look for health insurance outside of Medicare. You may be able to continue your current employer coverage under COBRA. If married, switching to your spouse’s plan may be an option. Or you could purchase a policy on your own through your local broker on the healthcare exchange.
5. Don’t wait to replace your life insurance.
   Once you stop working, it’s likely you’ll lose the life insurance benefits your employer provides. The longer you wait to replace them, the more difficult it may be — especially if you develop health problems. The cash payment life insurance provides can help your family get by without your financial support or help a child you love with the cost of a good education. It can help a spouse offset Social Security and pension payments that reduce at the death of a husband or wife.

Here are a Few Reasons to Consider Life Insurance:

• Estate Taxes
  Many consider life insurance as an estate planning tool. Benefits can be used to pay estate taxes rather than selling assets. If your liquid assets aren't enough to pay your estate taxes, consider purchasing a life insurance policy to cover them. Federal Estate taxes kick in for estates above $2 million.
• Final Expenses
  Some people buy a small life insurance policy, just to cover their final expenses. Funeral costs alone average now more than $8,300, according to the National Funeral Directors Association. And you may leave some medical expenses not covered by health insurance.
• Pension Replacement
  Many traditional pension plans pay benefits that are based on the life of the participant only. So when that participant dies, the surviving spouse no longer collects pension payments. Consider, too, that Social Security benefits will reduce at the death of a spouse.
• Outstanding Debts
  For married retirees, having enough coverage to pay off large debts, such as a mortgage balance, can ensure the surviving spouse can stay in the home they love.
• Gift for a Loved One or Charity
  Life insurance is a way to leave a legacy for a special person or charity. If you intend to leave a small sum of cash to either, consider using that cash to purchase a much larger amount of life insurance instead. Take the amount you plan to leave and use it to pay premiums. This could result in a much more generous gift over their lifetime.
• Dependent Children
  If you had children later in life or have a child with special needs, ongoing support or medical care may become costly and last many years. If you have children who will be attending college, consider life insurance to help with tuition. In 2014, average public in-state academic institution tuition was $9,913, while out-of-state tuition was $22,958. Average private college tuition was a whopping $31,231.*
• Still Working?
  If you continue to work after retirement – and your family relies on your income – consider life insurance for income replacement. Make sure your dependents are able to stay afloat financially without your salary.

If it makes sense to make life insurance part of your overall retirement strategy, it makes sense to purchase coverage now. The younger you are, the less it will cost and the less likely you are to be turned down for purchase due to health conditions.

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There’s nothing good about being in a car accident. Unless you happen to live in a romantic comedy, and manage to meet the love of your life in a cutesy fender-bender, there’s not much positive to say about hitting something with your car, or having another car or inanimate object hit your car.

One of the biggest headaches coming out of an accident: what’s this going to do to my insurance?

We all know that accidents of any kind aren’t good for our insurance premiums. On the one hand it makes sense — if you get into an accident, insurance agencies tend to think that you’re likely to get into another one, which means providing you with insurance is riskier, which means they need to charge you more.

On the other hand, that’s what you have insurance for in the first place. It seems like, for insurance companies, an ideal customer is one who pays a monthly fee and never uses their insurance.

But then you do get into an accident. Repairs are required. And you ask yourself, “Should I let my insurance pay for this?”

Single Car Accident

Let’s say no one else is involved. Only your car has been damaged. A few years ago, in the middle of a snowstorm, I spun out on an exit ramp and cracked up the front, right edge of my vehicle. (I say “cracked” instead of “crumpled” because it was the kind of car that cracked instead of crumpled, unfortunately.) The car was perfectly drivable, it just looked off. I decided to leave it be.

But let’s say you can’t leave it be. It needs to be fixed. Should you use your insurance or pay out of pocket? Well, let’s consider the following:

Your Deductible

Before your insurance company pays for any repairs, you’re going to have to pay a deductible. The amount is usually fixed and generally pretty high if you pay a low premium (conversely, the higher your premium, the lower your deductible — it’s one of the ways that insurance companies manage risk). If the repairs are less than your deductible, pay out of pocket. If they’re slightly higher, you might still want to pay out of pocket.

Your Policy

Not all insurance policies are created equal. It’s difficult to say what an insurance claim will do to your premiums without understanding what your policy looks like. Some policies forgive accidents under a certain dollar amount. Some policies forgive your first accident, whatever the cost. Some consider your full driver history before making a potential rate increase. Speak with your insurance agent to fully understand all of the ramifications of your potential insurance claim.

Your Demographics

In order to control risk, insurance companies make a lot educated assumptions about drivers. Your demographics – your gender, your age, your education level, your credit score — all factor into your insurance policy.

Historical data shows that women are less likely to be involved in accidents than men, so their insurance rates are lower. Young drivers and seniors pay higher rates than middle-aged drivers. A poor credit rating can also net you a higher monthly premium. So when considering whether or not to file a claim, consider your driving record and your demographics. If you’re a highly desirable customer, your insurance company is less likely to raise your rates for fear of losing you to another insurance agent.

Multiple Car Accident

So now let’s say you get into an accident with another car, and the other driver says, “Let’s not bring the insurance companies into this.” They want to work something out directly. If you’re at fault, they want you to give them cash for the repairs. If they’re at fault, they promise to pay your costs out-of-pocket.

Unless you’re dealing with a friend or a family member, the safest way to handle any accident is to let the insurance companies work it out. It’s not necessarily that you should never trust strangers, but you’re going to have a very hard time finding a happy compromise.

If you’re paying for their repairs, you’re going to want a say in who does those repairs. Your interest will be in limiting costs — their interest will be in getting the best possible service, independent of cost.

Also, just because you pay for someone’s repairs out-of-pocket doesn’t necessarily mean they won’t still go ahead and file an insurance claim anyway.

So stay out of that particular quagmire. Let your insurance company sort it out.

After all, that’s what you’re paying them for.

Understanding Coverage Limits

Coverage limits protect your assets and represent the amount of money your insurance will pay to cover losses after an at-fault accident (an accident that you're responsible for). If costs from an accident go above the limits you choose, you're typically responsible for paying them.

So why doesn't everyone just get high coverage limits? Well, while choosing higher limits does give you more protection, it's usually more expensive, because you're asking your insurance provider to cover more damages. So, if you pick higher coverage limits, and you're at fault in an accident, your insurance provider would pay for more damages, but you'd pay more in premiums for that coverage.

Alternatively, choosing lower coverage limits may save you money on your premiums, but you have to assume a larger financial responsibility if you're found at-fault in an accident, and that can be very expensive.

It sounds like a balancing act, but if you follow these rules, you'll confidently find coverage limits that fit your lifestyle and budget comfortably:

Rule #1: Choose Coverage Limits That Reflect Your Needs

When you're deciding on coverage limits, ask yourself:

• Who am I covering on my policy?
  Who you cover under your policy can have a big impact on the limits you need. For example, if you're covering yourself, your spouse and your two teenagers, you may want to consider higher limits, since the risk of being involved in an accident tends to increase as more drivers are added to a policy. You may also have more assets to cover with a larger family. However, if it's just yourself on the policy, take into account your personal needs and choose coverage limits you're comfortable with.

Rule #2: Choose Coverage Limits That Protect You and Your Property

When you decide on coverage limits, you want enough coverage to protect you and your assets if you cause an accident. Choosing limits that are too high may be out of your budget, but limits that are too low can expose you to serious financial risks. So ask yourself:

• What financial assets do I have?
  Without sufficient coverage, you can put yourself in real financial danger! For example, if you're found at fault for an accident but don't have enough coverage to pay for the damages, the other party can legally go after your savings and your property to recoup money. So you should consider your financial picture, your budget, and the value of your assets to choose the coverage limits that can best protect you.

Rule #3: Choose Coverage Limits That You Can Comfortably Afford

Budgeting is important for every union worker. So before choosing your coverage limits, ask yourself:

• Is this limit in my budget?
  Everyone's financial situation is different, and everyone budgets differently. So it's important to make sure you can comfortably afford to pay for your auto insurance, and know how much you could afford to pay out of pocket if you got into an accident.
• Can I pay my premiums with this limit and still cover all my monthly expenses?
  Having proper coverage shouldn't keep you from paying bills, making car payments or keeping a little money every month for "just in case" moments. Thankfully, as a union member you get access to great insurance discounts from Union Plus Auto Insurance.

Rule #4: Update Your Coverage Limits When Life Changes

Life can change quickly, so when it does, make sure your auto insurance is still sufficient to cover you, your loved ones, and your assets.

Recently get married? Add a new teen driver to your policy? Get a new car? Move to a new area? All of these life changes can affect your budget, your property values, your risk levels, and your needs. So after a big life change, make sure to contact your insurance provider to reassess and update your coverage limits.

Now that you've seen the rules for choosing coverage limits, see how much you can save with great coverage and special union discounts with a quote from Union Plus Auto Insurance.