Insurance World

Does this sound familiar? You’ve saved and saved for that perfect vacation you’ve always dreamt about. You’re in the travel agent’s office, you’ve just purchased your very expensive ticket and she’s saying that you should buy some international travel insurance too. You roll your eyes because you’re sure all this international travel insurance business is nonsense and she’s just trying to get some more of your money. You say no thanks. While on your vacation, you crash your car and get hurt. Guess what? You’ve got to foot all the expenses yourself and because you didn’t want to get international travel insurance.

For those of you who aren’t familiar with it, international travel insurance is a must have if you intend to travel out of your own country. Since you’re not familiar, right about now you’re probably asking what international travel insurance is. Simply put, it is a temporary insurance policy which you buy before you leave on your trip. Typically, coverage lasts the full duration of your trip but, depending on who you’re insured with, your international travel insurance can be extended for up to 12 months.

A lot of people couldn’t be bothered with the added expense but there is always the small possibility that something can happen. A good international travel insurance policy will provide three things: good coverage at a reasonable price, readily available emergency assistance and efficient claims processing. It should also cover most circumstances. Your international travel insurance isn’t adequate if it doesn’t cover medical expenses, medical evacuation, travel cancellation and deferment costs, loss of luggage, rental vehicle expenses, death expenses, personal liability and legal expenses.

There is most often a need for international travel health insurance, to cover medical expenses. This can include hospital stays, medication and doctor’s fees. However, international travel health insurance is a godsend in more critical situations as it also covers ambulance services and emergency-related travel expenses, which is especially important in third world countries where supplies are limited and you may need to be transported to another country.

While you may not think that the cost of such international travel health insurance coverage is justified for a short, weekend trip, if you’re going to be hiking through malaria infested forests over those two days, you might want to think again. Use your discretion. It’s much better to be prepared for a possible emergency than to fall ill or get injured and not have any international travel health insurance coverage.

Whether you’re a homeowner or renter, insurance provides critical protection.

Homeowner’s insurance protects your home’s physical structure and your personal property. In contrast, renter’s insurance only protects your personal property. Everyone-homeowners and renters-needs liability coverage to provide financial protection in case others are injured on your property or by your actions.

You have the option to insure your home and belongings for either their replacement cost or their actual cash value. Actual cash value is the amount it would take to repair your home or replace damaged possessions after factoring in depreciation. Replacement cost is the amount it would take to repair your home with materials of similar kind and quality, or to purchase new possessions without deducting for depreciation.

It’s a good idea to make an inventory of all of your personal belongings and save receipts for major items, along with a photograph or video of each room. Store copies of the documentation in a safe-deposit box or another off-site secure location in case your home is destroyed.

Following are some helpful considerations provided by The National Association of Insurance Commissioners (NAIC), a voluntary organization of state insurance regulatory officials:

Important Considerations

If you have expensive valuables -such as jewelry, antiques or art-you’ll probably want to purchase a “rider” to your policy, as these items are subject to coverage limitations in basic policies.

Damage to your home or belongings caused by flooding is NOT typically included in a homeowner’s policy. If you live in an area prone to flooding, inquire about flood insurance through the federal government’s National Flood Insurance Program (NFIP). Your insurance agent can help you obtain flood insurance.

Insurance Tips for Different Life Stages

At different stages, you’re likely to have different insurance needs. For instance:

• Young singles who are sharing an apartment with unrelated roommates each need their own individual renter’s policy to protect their own possessions.

• Young families that add a swing set or trampoline for their kids should consider additional liability insurance.

• Established families that may be remodeling or building an addition should update their homeowner’s policy to reflect these enhancements.

• Seniors should ask if they are eligible for discounts. And if you’ve just paid off your mortgage -and your homeowner’s insurance was previously paid through your mortgage company-be sure to assume direct responsibility for the premiums so that your policy doesn’t lapse.

Remember, before you sign an application for insurance, take a few minutes to stop, call your state insurance department and confirm that the company is legitimate and authorized to sell insurance in your state.