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10 Things Your Insurance Won't Cover

Bundle — Thu, 27 Oct 2011 00:15:28 PDT

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.

7 Insurance Policies You Can Live Without

Emily Co — Fri, 16 Sep 2011 15:00:02 PDT

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.

Renters Insurance: to Do or Not to Do?

Anna Monette Roberts — Fri, 19 Aug 2011 03:05:54 PDT

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.

Suze Orman Reveals the Most Important Thing in Life

Emily Co — Fri, 22 Jul 2011 13:00:27 PDT

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."

2 Good Ways (and 1 Not-So-Good Option) to Protect You and Your Money in a Relationship

Emily Co — Mon, 20 Jun 2011 13:34:56 PDT

You might think preparing for divorce will be jinxing yourself, but it's actually very practical and highly recommended by financial planners, according to the Wall Street Journal. Here are some options from the WSJ

Have a well-padded emergency fund: Treat divorce as an emergency expense and set aside some money that will buffer you through those times. Terry Headley, president of the National Association of Insurance and Financial Advisors, advises to set aside "four to six months' worth of the household income in pooled cash reserves to cover both spouses' costs."
Cohabitation agreements: This is becoming a more popular option for couples who are living together. The cohabitation agreements mirror prenups, but they are for those who aren't married. Some couples use these legal agreements to state who's paying for what in the relationship (such as groceries and cable bills), the consequences for cheating on your partner, and how to split the property after a separation. There are apparently a lot of same-sex couples who add in clauses to the cohabitation agreements that grant legal rights that traditionally come with marriages, such as hospital visitation rights.
Divorce and 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 presents, and financial planners aren't fans as well. Glenn Daily, an insurance consultant, says the divorce fund or a good emergency fund would easily foot the expenses that the divorce or wedding insurance would cover and describes it as "insurance you could live without."

Do You Have Renters Insurance?

Emily Co — Thu, 09 Jun 2011 14:24:01 PDT

Although I've never had anything happen to me in my home that would warrant using my renters insurance (knock on wood), I think that my low-cost investment is quite valuable. If disaster strikes, my possessions will be protected, which the landlords insurance won't cover.

The average renters insurance costs between $15 and $30 monthly, according to the National Association of Insurance Commissioners. Compare that with the costly possibility of having to replace your damaged priceless possessions. Being insured covers a wide range of items, from electronics to jewelry to clothing.

I'm wondering - do you have renters insurance?

Applying Makeup While Driving Can Raise Your Insurance Rates

LearnVest — Wed, 08 Jun 2011 03:05:37 PDT

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

It’s not that insurance companies are sexist.

Or that they expect all of their female customers to go barefaced and disheveled.

But if you use your commute as makeup application time, you’re a crash risk. In fact, applying makeup is actually more dangerous than dialing a cell phone–it’s the fifth likeliest task to increase crash risk.

Talk about a dangerous tube of MAC lipstick.

About 3% of female drivers have had an auto accident while applying makeup, and 75% of those women are under 27 years of age, says Kevin Alsup, vice president of insurance at Foundation Financial Group in Florida. “We hear a lot about the dangers of driving and texting,” says David Miller, CEO of Florida-based Brightway Insurance, “but applying makeup while driving is just as dangerous.”

Whether You’re A Little Or A Lot At Fault

According to Nancy Germond, an insurance expert from Phoenix, AZ, an insurance company might “forgive” your first auto offense if you have a good driving record. Otherwise, if the accident is deemed to be your fault, you can expect your rate to take an upward hike.

Germond says, “If you are at fault in an auto accident and your insurance carrier pays more than a small amount, your rates will undoubtedly increase,” says Germond. Although some companies forgive the first accident, most will charge you “whether you’re 1% or 100% at fault.”

Find out how to lower your rates when you read on.

Ask a Savvy Bride: Should I Get Ring Insurance Now or Wait?

SavvySugar — Fri, 13 May 2011 09:55:05 PDT

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.

Rent Cars From Strangers to Save Money

Emily Co — Thu, 03 Feb 2011 13:45:45 PST

Introducing . . . another new wave of startups that will help you save on car rentals. Bay area companies like Getaround, RelayRides, and Spride Share, are providing a cheaper zipcar-like alternative, according to the New York Times. However, instead of renting cars from a company, you'll be able to get your car from an individual who has decided to rent his car out.

This online peer-to-peer lending service is a bonus for both parties, because as a car owner, you'll be able to earn money on the side when you're not using your car, and as a renter you might be able to fork out less if the stranger decides to charge a lower rate. This new trend in car lending has come about due to the new changes in California's auto law, which fully insures both drivers and owners who participate in car-sharing services. What do you think - is this a service you would use?

Toxic Shocked! Pets in Peril From These 5 Poisons

PetSugar — Wed, 11 Aug 2010 12:30:52 PDT

There's safety in numbers but these stats are more on the shocking side! Veterinary Pet Insurance received nearly 20,000 pet poisoning claims from 2005 to 2009 - do you know what type topped the list? I've covered each and every one in the past so refresh your memory on the dangers when starting this slideshow!