Insurance

You may have a vague idea of what your homeowner's insurance covers, but it's time to get educated on its proper coverage to make full use of it. Of course, every insurance policy is different, but there are some similarities among them. Here are some things you may be surprised to see covered in many homeowners' insurance policies:

• Student property: The homeowner's insurance covers property belonging to all members of the household, even if they go away for college. Most likely, the student will have to be housed in a college-owned property, like a dorm, to qualify for coverage. Expensive property like laptops and cell phones can be covered by the insurance plans.
• Pet bites: If Fido gets you into legal trouble by biting one of your neighbors, your home insurance may take care of everything if you meet some of their requirements, such as the breed of the dog.
• Fraud: Chances are, if you accidentally received counterfeit money or were a victim of check or credit card fraud, you might be able to get some of it back from your insurer. You may not get much back, but every bit counts!
• Garden damage: If any of your plants, such as trees and shrubs, have been damaged unintentionally, you may be covered for it under your insurance.
• Spoiled food: If a power outage caused your fridge to break down, you may be entitled to get some of your money back on the food that spoiled.
• Missing luggage: Many homeowners' insurance policies cover belongings you bring outside of the home, so check to see how much of your lost baggage your insurer will cover.
• Injuries outside the home: Many policies provide coverage on accidents and injuries, even ones that occur outside of the home.

Your commitment is what matters, but you'd still be pretty upset if you lost your engagement ring, right? Before you get too caught up in showing off your bling like Carrie Underwood, make sure to protect your prized possession with jewelry insurance.

A good personal-article insurance policy will cover your engagement ring, wedding ring, or other jewelry — up to whatever amount you choose — in the case of theft, loss, fire, or something crazy, like the diamond falling out during a water-ski excursion. Policies vary depending on your coverage and the value of your ring, but there are some general rules. Now that you've found the perfect ring, here's what you need to know about ring insurance.

Getting a traffic ticket can be a real bummer. Not only are you faced with the penalty costs, but you might also fret about your insurance rates shooting up. Well, you can rest a little easier. Turns out, only 31 percent of people polled had their insurance rates go up as a result of getting a traffic ticket, according to a recent survey by InsuranceQuotes.com.

Contrary to popular opinion, your insurance company isn't big brother and is not constantly checking your driving records once you're over the age of 25, according to traffic expert Walter Meyer. But drivers between 16 to 25 are the exception as they are monitored more. So don't fret too much about your premiums when you get a traffic ticket, chances are, your provider may not notice.

Here are some tips to prevent your insurance rates from rising after a traffic ticket from InsuranceQuotes:

• Wait on it. A traffic ticket affects your insurance premiums if you shop for a new policy a few years after receiving one, because the provider will always obtain a driving report when evaluating you.
• Good driving record. If you seem to have a fairly good driving record and haven't filed any previous insurance claims, your rates might not go up even if you do get a ticket.
• Clean your record. Do your best to remove dings from your traffic record. Some states let you remove traffic violations from your record if you take driving classes.
• Bundle it up. Some insurers are more forgiving of your traffic violations if you purchase other forms of insurance, like life insurance, with the same provider.

It's always better to be safe than sorry, and insurance policies can sure make you feel well protected. However, buying your peace of mind can be quite expensive, so you want to make sure that you're spending money on the right insurance policies. Here are insurance policies you should consider forgoing:

• Pet insurance: If you total the medical costs incurred in a pet's lifetime versus the cost of pet insurance coverage, the policies are often found to be unnecessary, Bob Hunter, the director of insurance at Consumer Federation of America tells SmartMoney. Unlike human insurance, you also have to pay all the costs up front and wait for the providers to reimburse you because there isn't a co-pay system.
• Trip cancellation: If you can't make it to a flight because something came up at work or a pre-existing medical condition, you won't get your money back if you bought a trip cancellation policy. On most of the trip cancellation policies, the reasons that will get you a refund are pretty extreme — you or a family member has to suffer from an illness, injury, death, natural disaster. Unless you invested a lot of money in the trip, you might want to skip this policy.
• Divorce or wedding insurance: If you've been paying for divorce or wedding insurance, you'll be covered if you have the misfortune of canceling your wedding or getting a divorce. This option isn't favored by a lot of the people because of the negative image it, and financial planners aren't fans as well. Glenn Daily, an insurance consultant, tells the WSJ that a good emergency fund would easily foot the expenses that divorce or wedding insurance would cover and describes it as "insurance you could live without."
• Extended warranties: Extended warranties on products are generally something you can do without. In fact, you are probably already protected with the manufacturer's warranty or your credit card company. Consumer Reports found that appliances generally don't break during their warranty period and if it does break down, the price it takes to repair the product will cost the same as warranty.

Read on for more insurance policies you don't need.

I think I actually sleep better since getting renter's insurance. If you're a renter, then it's really a must have, but don't stop at the policy. In addition to the basic considerations about renter's insurance, here are four more things you should do to protect yourself and your stuff. After you check these off your to-do list, you can really rest easy. Sleep in — you deserve it.

• Create an inventory: To come up with the most accurate estimate for the value of your stuff, do a thorough inventory of everything in your apartment and list the estimated cost for replacing each item. Add it all up and make sure your renter's insurance covers that amount. It sounds daunting, but it's really not: just devote a rainy afternoon to hanging around your apartment, making a note of all the major items. It also helps to go through your receipts or email confirmations of online purchases. Save it all in a spreadsheet or whatever format you prefer.

For four more must-dos, keep reading.

Unforeseen events occur when you are least expecting them, such as when my toilet cracked into two pieces while I was away at work. Water gushed all over my closet and into my downstairs neighbor's unit, and we both ended up with some ruined expensive items. While my landlord paid for the toilet to be replaced and my neighbor's ceiling to be fixed, she urged us to buy renters insurance so that next time an accident occurred, our belongings would be covered. Renters insurance protects you from horrible surprises, from fires to robberies. Consider these basic things before you decide to purchase renters insurance. Read up on renters insurance policies.

When you have to make monthly payments on something, you better make sure you're doing everything right. Kiplinger shares insurance mistakes that are draining your wallet.

Insurance can help protect your finances in case of an emergency. But you shouldn't pay more than you have to for this protection. Whether you're buying a policy for the first time or have had coverage for years, you can keep insurance costs under control by avoiding these 10 common mistakes.

Setting Low Deductibles

With low auto and homeowners insurance deductibles, you often pay more in premiums than you can recover in claims. Low deductibles also encourage you to make small claims, which could cost you a claims-free discount or prompt your insurer to drop you. Boosting your homeowners deductible from $500 to $1,000 could reduce your premiums by 25 percent; increasing your car insurance deductible from $200 to $1,000 could save you 40 percent. Add some of that savings to your emergency fund to cover the extra out-of-pocket expense.

Failing to Ask For Discounts

You won't get credit for some discounts unless you let your insurer know that you qualify. The list varies from company to company but often includes installing a home alarm system, adding storm-proof shutters, taking a job with a shorter commute (or not commuting anymore), carpooling and even working in certain occupations.

Read on for more.

Your special wedding season Ask Savvy questions will be answered by SavvySugar and a very savvy bride. Submit your questions in our Ask Savvy group.

Dear Savvy,

I just got engaged to the love of my life and I'm ecstatic! My ring is blinging and I adore it. It's everything I've ever hoped for and I never want to take it off. My best friend is hounding me to get ring insurance, but I'm worried about the cost because I don't have any extra funds. My fiancé saved up for a long time for the ring, and though I don't know how much he spent, he's admitted he wiped his savings. Can I wait a while until we have more cushion cash to get ring insurance, or should I get it now no matter the cost?

Best,
Blinging-but-budgeted-to-be

See what the savvy bride has to say about this after the jump.

We're thrilled to present this smart Bundle story here on Savvy!

You're a good grownup. You have health insurance, life insurance, car insurance, and homeowner's insurance. Life can throw anything your way, and you'll be covered! Well, not anything. Each of the insurance plans that you pay premiums for every month have caveats and asterisks and fine print. Here are ten surprising things that you insurance probably doesn't cover.

• Stuff in your car. If your car is broken into, your comprehensive coverage will replace the broken window. What it won't replace is anything that got jacked. The property in your car is covered instead by your homeowner's or renter's insurance, if you have it.
• Nuclear disaster. If you live near a nuclear power plant and it has a meltdown and you are forced to abandon your house, your homeowner's insurance will not cover it.

  Your shrink. Some health insurance policies have mental health coverage, but many do not. Before you get too comfortable on the therapist's couch, double check to see who will be paying for it.

Read on for more.

You can be wealthy beyond your wildest dreams, but money can't buy you health. Your physical and mental well-being is the most important thing in life, according to Suze Orman. The money expert says:

"In most cases, your health goes down the drain when you have wealth problems. You don't go to a doctor because you don't have the money. You don't eat the right food because you don't have money. You worry all the time because you don't have money. Your blood pressure is high because you don't have money, and on and on. This is why your health must be your priority. You can have all the money in the world. You can be a multi-billionaire, but if you do not have your health it means nothing. Your health is the No. 1 important thing in your life."

Bad health in turn leads to more money problems because of expensive medical bills, which can be avoided if you do your homework on insurance and pick the right one for your needs. And for those struggling to pay for health care for their children, there are "state programs that will allow you to insure your children for pennies on the dollar."