10 Insurance Tips for Newlyweds
Facts about insurance that, surprisingly, aren't boring.
1. Location
Homes close to fire hydrants and fire stations cost less to insure.
2. Lucky Sevens
Not sure how much life insurance coverage you really need? According to some experts, start by multiplying your annual salary by seven (but talk to an agent about your specific situation). Why this much? Experts figure that this is the minimum amount your spouse should get in the event you check out early.
3. Retiring on "Permanent Life"
A permanent life insurance policy is a kind of long-term insurance that accrues value over time. You sock a certain amount into the policy every year, it builds and builds, and you can cash it out if you need it. Just know it's expensive and is structured to avoid taxes.
4. Save the Music
You can add cassette tape and CD coverage to your car insurance policy so that if your music is stolen from your car, you can replace what you lost. This extra coverage is an inexpensive no-brainer if you just can't drive without your entire Neil Diamond collection.
5. Potential Flood Zones
In recent years, almost 25 percent of all flood insurance claims came from areas that weren't considered high risk. The fact is pretty much everybody lives in a potential flood zone. But keep in mind that most home insurance policies don't cover damage or losses due to floods -- it's an extra policy you have to buy separately. (We're talking about natural-disaster-type flooding here; home insurance policies do cover damage caused by plumbing overflows or washing machine freak-outs.) Costs vary depending on where you live, but flood policies start at around $120 a year.
6. The High Cost of Huskies
While the official position of dog lovers is "judge a dog by his deeds, not by his breed," many insurers take a different view. Some companies will not insure your home (or will charge you more) if you own certain breeds of dogs -- including pit bulls, rottweilers, and huskies. Why? In recent years, dog bites have accounted for about one-quarter of all home insurance liability claims.
7. Little Taupe Corvette
It's a myth that auto insurance companies charge higher premiums for red cars. What does impact premiums? Your age, your claims history, and the age and model of the car you drive.
8. Weighty Matters
Because extremely overweight people are more likely to develop health problems as they grow older, life insurance companies often charge them higher premiums.
9. If You Can Sell It, Insure It
If your home is damaged by a fire, you don't want to find out after the fact that your homeowners insurance doesn't cover your computer, your garage, or the 1,300 still-in-the-box Star Wars figurines you were planning to sell online for a profit, because they're all considered "business assets." If you run any kind of business from your home, large or small, make sure to cover your assets with a rider or a separate policy (shop around to see which is more economical).
10. New Kids on the Block
Homes that are less than 10 years old or have been completely renovated within the last 10 years cost less to insure. And if your home is made of fire-resistant materials, like brick and masonry, you can save even more money.
This story is an independent product of the editorial team at The Nest. Our writers and editors have not been influenced by advertisers in any way in the creation of this content, which was developed independent of any sponsor.