Lifespan of Modern Home Appliances

 
Homeowners often assume that with an increase in technology comes an improvement of everyday life. So it can come as a surprise that when appliance manufactures add techs, like sensors and displays, they are actually shortening the product’s lifespan.
 

Major home appliances like washers, stoves and even refrigerators have plugged into the digital revolution thanks to the introduction of smart appliances by brands like LG and Samsung. You can now do things like scan food items into your fridge, and it will then make recipe recommendations based off of the current contents — that’s one less excuse for ordering takeout.

Unfortunately, the added bells and whistles have overshadowed the fact that appliances just don’t last as long as they use to. The current average lifespan of major home appliances is around 10-15 years — compared to roughly 20-30 years when appliances were mostly mechanical in nature. That’s why your mom’s avocado-green washing machine lasted so long.

Today, the presence of LCD screens, Wi-Fi, and even load-sensitive sensors have increased the vulnerability of our modern appliances — the more gadgets, the more things that can fail. This, coupled with thinner plastic parts replacing the more durable porcelain and copper parts of the past means more calls to the repairman. Just like our cars, home appliances were once bulky behemoths made of heavier, more resilient materials.

However, there are two simple recommendations on how to avoid premature breakdowns with modern appliances. First, simply reading through the manual and getting a sense of how to properly clean and maintain your appliance is highly recommended to preserve its lifespan. Second, when problems do arise, don’t jump the gun and swap it for a new one. If the appliance has not yet exceeded the average lifespan, chances are fixing the specific problem and keeping it for its full lifespan will save you more in the long-run.


Although the lifespan of major appliances has decreased over the years, the added technology has greatly improved our lives. For what they now lack in years, these modern machines make up for in energy efficiency and technological versatility. It’s a small price to pay for managing more productive lives in our fast-paced digital age.

Owning new, modern appliances are great. But it’s even better knowing that when they fail, you’ll be covered with a Home Warranty Plan from E-exchanger.

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Why You Might Want Wedding Insurance

If you’re busy planning a wedding, you might want to consider insuring it.

Wedding insurance policies are relatively easy to understand, and the two main types are both inexpensive compared with the cost of a ceremony and reception:

  • Liability insurance covers you in case of an injury or property damage at the wedding. Liquor liability, sometimes a separate coverage, pays out if someone drinks too much and causes an injury or damage.
  • Cancellation coverage reimburses you for costs such as deposits and guests’ airfare if you need to cancel or reschedule the wedding for an unforeseen reason. Unfortunately, that doesn’t include a change of heart.

The most common wedding cancellation claims involve:

  • A vendor, such as a venue or a caterer, going out of business or being otherwise unable to fulfill its agreement.
  • Extreme weather, such as a hurricane or tornado.
  • A member of the bridal party or family being too injured or ill to participate.

Costs

Cancellation and liability coverage are sold separately. Prices are based on the number of guests or the wedding’s price tag, depending on the insurer, but each can cost under $200 for a wedding with fewer than 50 guests.

How to buy it

You can buy wedding insurance through an event insurer, such as Wedsafe or WedSure, or large insurers such as Travelers Insurance. Some insurers sell “event insurance,” which can also cover a wedding. Ask your agent if your current insurer has any options.

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How Do Smoking Cessation Products Affect Life Insurance Rates?

Are you using cessation products to quit smoking?  There are ways for you to get great non-smoker prices on life insurance.  There are endless benefits to quitting a smoking habit.  It helps to increase both your lifespan and your wallet.  To quit smoking you need strong will power and sometimes the help of products whether those are gum, lozenges, patches, or e-cigarettes.  These products all contain nicotine and are used to wean your body off cigarettes while supplying you with the nicotine but sparing you from the other chemicals found in tobacco.

Because there is nicotine in these products, some life insurance companies will still classify you as a smoker even if you don’t actually smoke anything.  The use of these products will cause cotinine to show up in your urine test which would be enough for the carrier to classify you in one of the tobacco risk classes and issue you smoker rates.

Have no fear cessation product users!  There are insurance companies that will consider you for the non-tobacco risk classes and therefore be given non-smoker pricing.  To be offered non-smoker rates, you have to be cigarette-free for at least 12 months.  Let’s say you have been using a cessation gum to quit smoking, but you have only been cigarette-free for 5 months.  Even though you currently do not smoke, you will still get the smoker-rate because it has not yet been at least 12 months.  However, if you have been cigarette free for at least a year but still, for example, chew Nicorette Gum daily there are insurance carriers who will offer you non-smoker pricing.

Insurance carriers rate certain tobacco/nicotine uses differently.  While one company may give non-smoker rates to gum and e-cigarettes, another company may only give non-smoker rates to gum.  We asked 20 life insurance carriers if they would consider giving a non-tobacco risk class to an applicant who uses nicotine gum and four carriers said they would consider it.  Of these carriers, three said they would consider giving a non-tobacco risk class to e-cigarette users.

These examples explain why it is very beneficial for you to work with an independent life insurance agency, like Quotacy, who has contracts with multiple carriers.  It also shows how important it is for you to be very detailed about your tobacco and nicotine product use on your life insurance application.  If we have all the correct information we are able to go to the appropriate life insurance carrier to ensure you get the best policy for your individual situation.

You can still protect your loved ones with life insurance even if you use smoking cessation products, and what’s better is that there is even a possibility you can get great non-smoker rates.  No one ever anticipates needing to use life insurance, but the unexpected happens.

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Term Life Insurance for 35 Years

35 years is a long time.

Think about some of the things that happened or were popular in 1981.

  • Raiders of the Lost Ark
  • MTV began
  • Prince Charles and Lady Diana married
  • Hall & Oates
  • The Rubik’s Cube
  • Donkey Kong

A lot can happen in that time of time. The fall of The Soviet Union. The Internet. Mobile phones. Emoji. 35-yr term life insurance.

Yes, you read that right. You can now buy term life insurance with a term period of 35 years from American General Life Insurance Company.

Until now, the longest term period available was 30 years. But with the new term length, you can lock in a low rate up to age 45 and keep it until you are 80 years old.

Will you need term life insurance for 35 years?

Maybe and maybe not. It all depends on your unique circumstances. Things to consider include:

  • How many years until your youngest child leaves home?
  • How many years until all your children (and perhaps grandchildren) graduate college?
  • How many years until you pay off your mortgage?
  • How many years until you retire?

This is a start, but there’s more to it. Thankfully, we’ve written a thorough guide to help you find out how long you will need term life insurance.

It’s important to note that you are never ‘stuck’ in a policy for the entire term length. Meaning, you can always cancel the policy before the term expires without incurring any penalties or fees. Most life insurance companies will refund any unused premiums as well. Just in time for last-minute holiday shopping!

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Fixing the Life Insurance Marketplace

The life insurance market is characterized not only by an absence of reliable price information but also by the presence of deceptive price information...the deceptive sales practices found in the life insurance industry constitute a national scandal.” So testified Professor Joseph Belth, an expert on the life insurance industry, before Congress in 1973. Can this statement, from more than 40 years ago, still be as true today?  And is it possible for such deplorable industry practices to be occurring without being in the spotlight of public attention?

The short answers are yes. To this day the life insurance industry too often relies on inadequate product disclosure, misinformation, and fraudulent practices, thereby costing consumers billions of dollars annually. Industry executives have for years acknowledged that no one would buy many of their companies' products if they were appropriately informed.

The free market economic system is built upon informed buyers making educated decisions. Yet so many life insurance industry chieftains who regularly sing the praise of our economic system fail to acknowledge that their businesses haven't satisfied the system’s prerequisites or played by its rules.

Empirical proof of the life insurance market’s dysfunction is readily apparent by examining the very products life insurers and their agents sell. While a select few cash-value life insurance policies can provide excellent competitive value, perhaps 95% of such policies sold provide value no informed consumer would accept. This marketplace’s dearth of information also afflicts tens of millions of policyholders at annual renewal; if properly informed, millions of them currently could readily obtain much better value. Consumers of the industry’s other main products, annuities and long term care insurance, also face enormous disclosure-related problems.

The root of the age-old problem is the inadequate disclosure of information surrounding cash-value policies, such as whole life policies, where the annual cost is not the annual premium. Professor Belth and I have both long recommended disclosure about a policy’s annual costs and rate of return on its cash-values.  

The attached table of an actual insurance policy’s historical performance (see below) shows how this information on a policy’s annual costs and rates of return on its cash-values can be presented on a year-by-year basis and summarized over the duration with average or aggregate measures. Similar cost and rate information can be calculated on any and all prospective new and in-force policies via online consumer-friendly analytical tools. Understanding policies from this framework, and with solid knowledge of the differences between illustrated future values and actual future performance, enables consumers to assess the competitiveness of a policy’s costs and rates. For example, a healthy 40 year-old male can  compare his policy's costs with benchmarks that are available in the marketplace and its rates of return with suitable alternative investments. 

A cash-value life insurance policy’s unique intrinsic economic advantages arise from its Congressionally-granted tax privileges, not its highly touted permanence; after all, a term policy can be converted or exchanged into a policy providing lifelong, permanent coverage. These tax privileges, which are given directly to policyholders, however, are not a basis for which insurers can charge consumers; no one pays thousands of dollars to set-up an individual retirement account (IRA). Consequently, when selling such cash-value policies as whole life agents routinely make assorted misrepresentations. Agents often misleadingly state: 1) that a whole life policyholder pays for a lifetime of costs upfront, and that doing such and owning his/her coverage is better than endlessly renting it; 2) that buying a whole life policy at a younger age locks in a lower level cost for life; and 3) that the annual costs of a whole life policy can actually decline as the insured ages because these policies can pay dividends. These three common agent statements, and myriad variations of such, are deceptive.

Regulations prohibit such misrepresentations, but they have never been enforced. These and other misrepresentations are all designed to distort a cash value policy’s fundamental difference. For agents, the essential difference between whole life and term insurance is the quantum difference in the sales commissions – up to 5-9 times larger on whole life policies than on term policies. No one familiar with the paramount role that compensation incentives tied to the origination of subprime mortgages and the repackaging of such default-inevitable, toxic securities played in creating the Great Recession can doubt the perniciousness of the life insurance industry’s age-old problematic sales practices.

A successful consumer-agent relationship can only be built on trust, so predicating it upon inadequate disclosure is inherently counter-productive to all. While inadequate disclosure appears to be in the insurers’ and agents’ interest, it actually has made consumers so leery of agents that the age-old distribution process is so terribly inefficient and ineffective. Americans’ under-insurance – having woefully less life insurance than needed or appropriate - reaches new records every year. Some insurers’ policy lapse rates raise fundamental questions regarding the products’ suitability that regulators have never examined. And, the facts that the typical life insurance agent sells less than one policy per week and that four out of five new sales recruits fail out of the business within a few years are further proof of this industry's failed business approaches.

Given the nature of the problem, improved disclosure and publicity of such have always been known to be two indispensable parts of the inevitable solution. Contrary to general opinion, however, there is no need to wait to for this industry’s state regulators to act and mandate disclosure. The necessary disclosures, after all, are not proprietary or esoteric. As is shown in the table, life insurance policies, like an automobiles’ horsepower or MPG, can be disclosed, not only by the manufacturer but by anyone with the necessary expertise and this information is now available online.

Without publicity though, this public good of disclosure remains undiscovered. Reform of the life insurance industry has always merely been a battle of wills. Reformers have had to confront industry, an uninterested or uninformed media, regulators not understanding their jobs or unwilling or unable to do them, and/or reformers’ own doubts about ever succeeding. Financial markets can be fixed when appropriate policy disclosure for consumers is heralded and becomes pervasive.

When will this information be publicly disseminated, so that everyone knows about it and can use it, thereby initiating the long-overdue repair of the life insurance marketplace? This disclosure-driven transformation will produce the myriad and well-documented benefits of genuine economic competition: consumers will obtain better value; insurers will improve the efficiency of their production processes; and agents will act and be seen as trustworthy professionals. Clearly, the sooner this time comes, the sooner Americans can start saving billions of dollars per year, the better for everyone.

 

Actual Historical Performance of a Whole Life Policy
$250,000 issued 20+ Years ago (in 1989) to a 45 Year Old Male, Best Health
*Annual Premium $5815 Paid All Years
** Notes below provide additional information

Age During Year

Insurance Death Benefit

Cash-Value

Total Annual Costs

Annual Dividend Rate

45

            251,425

  408

            5,444

10.00%

46

            253,954

 5,134

            1,556

10.00%

47

            256,890

10,188

            1,624

9.25%

48

            260,927

 15,823

            1,520

9.25%

49

            265,684

21,955

            1,403

8.50%

50

            271,380

28,709

            1,310

8.50%

51

            278,019

36,119

            1,235

8.50%

52

            285,871

44,344

            1,064

8.50%

53

            295,056

53,487

            998

8.80%

54

            305,332

63,521

            919

8.80%

55

            316,703

74,519

            844

8.80%

56

            328,867

86,417

            907

8.80%

57

            341,858

99,309

            787

8.60%

58

            354,658

112,782

            889

8.20%

59

            366,807

126,628

            1,022

7.70%

60

            378,831

141,112

            1,176

7.50%

61

            391,554

156,699

            1,160

7.50%

62

            404,738

173,322

            1,284

7.50%

63

            418,387

191,040

            1,425

7.50%

64

            429,215

207,946

            1,601

6.50%

 

 

 

Avg. Rate:

8.43%

 

**Insurance Death Benefit shows the amount the policyholder’s beneficiary would receive after his death
Cash-Value is the cash amount the insurer gives to the policyholder if he cancels his contract
Total Annual Costs show the amount expensed from policy premiums (and policy cash values if and when necessary) to pay for sales, claim, administrative, capital charges and any other miscellaneous costs, such as premium taxes.
Annual Dividend Rate is the rate earned by policyholder, net of investment management costs, on policy cash values, that is, values after costs.        

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What Car Warranty is Best for Me?

Whether you're shopping for a new or used car, most people have a general idea that a warranty is a good idea. Warranties are often considered to be a form of "insurance" - you pay out a fee and in exchange, your car will be fixed if anything on it breaks, but unfortunately, it's not quite that simple. There are different types of warranties and a warranty might not necessarily cover everything that you think it will. Here is everything you need to know:

What Exactly is an Auto Warranty?

A warranty is a contract between either you and your dealership or you and your manufacturer. At its simplest, a warranty sets out a specific amount of time and mileage; any defects and repairs that are necessary under that time and mileage amount are automatically covered under warranty. Warranties usually last around three years or 36,000 miles. They can also be extended upon vehicle purchase. This is very common when used vehicles are purchased. 

But an auto warranty is not a type of insurance even though it is often presented as one. Auto warranties are only designed to fix parts that are considered to be defective or faulty. They are not designed to fix parts that have broken down from wear-and-tear, collisions or other issues. There are also different types of auto warranties that you need to understand.

What Types of Warranty Coverage Exist?

  • Drivetrain and powertrain warranties - These warranties are designed to ensure that the very essential components of the vehicle last: the engine, transmission and the associated parts. Drivetrain and powertrain warranties protect against manufacturer defects of these components but will be voided if they haven't been properly serviced (such as with regular oil changes).
  • Bumper-to-bumper warranties - The standard bumper-to-bumper warranty is a three-year warranty (or 36,000 miles) that governs the parts of the vehicle from bumper-to-bumper. If these parts are considered to be defective, they will be repaired as needed.
  • Rust or corrosion warranties - This type of warranty is rarer but may be tacked on to the other warranty. This covers rust and corrosion if it occurs due to a defect.
  • Federal emissions warranties - This warranty is more popular now and will cover any repairs necessary to ensure that the vehicle meets its emissions standards.
  • Roadside assistance - This is another specialty warranty that offers roadside assistance if a vehicle breaks down. Most people already have this through their insurance.

How Does a Warranty Work?

To go through a warranty, you must first contact the vehicle entity you have a relationship with: either your dealer or your manufacturer. They will then direct you to the repair shop that will work with you. 

Warranties can be voided if an individual does not maintain their vehicle properly. Auto Tek provides complete auto services that will ensure that all the parts of your vehicle are well-maintained so that you can stay within your warranties. Contact our team of professionals today!

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Separating Fact From Fiction When It Comes to Long-Term Care Insurance

Few people are prepared to handle the financial burden of long-term health care. In fact, many people have a false sense of security when it comes to long-term care. Let’s separate fact from fiction:

“Medicare and my Medicare supplement policy will cover it.”

FACTS:

  • Medicare and “Medigap” insurance were never intended to pay for ongoing, long-term care. Only about 12% of nursing home costs are paid by Medicare, for short-term skilled nursing home care following hospitalization. (Source: Guide to Long-Term Care Insurance, AHIP, 2013)
  • Medicare and most health insurance plans, including Medicare supplement policies, do not pay for long-term custodial care. (Source: 2017 Medicare & You, Centers for Medicare & Medicaid Services)

“It won’t happen to me.”

FACTS:

  • Almost 70% of people turning age 65 will need long term care services and supports at some point in their lives. (Source: LongTermCare.gov, November 2016)
  • About 67% of nursing home residents and 70% of assisted living residents are women. (Source: Long-Term Care Providers and Services Users in the United States, February 2016, National Center for Health Statistics)

“I can afford it.”

FACTS:

  • As a national average, a year in a nursing home is currently estimated to cost about $92,000. In some areas, it can easily cost well over $110,000! (Source: Genworth 2016 Cost of Care Survey, April 2016)
  • The average length of a nursing home stay is 835 days. (Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last updated May 2014)
  • The national average cost of a one bedroom in an assisted living facility in the U.S. was $43,539 per year in 2016. (Source: Genworth 2016 Cost of Care Survey, April 2016)
  • Home health care is less expensive, but it still adds up. In 2016, the national average hourly rate for licensed home health aides was $20. Bringing an aide into your home for 20 hours a week can easily cost over $1,600 each month, or almost $20,000 a year. (Source: Genworth 2016 Cost of Care Survey, April 2016)

“If I can’t afford it, I’ll go on Medicaid.”

FACTS:

  • Medicaid, or welfare assistance, has many “strings” attached and is only available to people who meet federal poverty guidelines.

Whether purchased for yourself, your spouse or for an aging parent, long-term care insurance can help protect assets accumulated over a lifetime from the ravages of long-term care costs.

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How to File an Insurance Claim After a Fire

Many households share one common fear: house fires. Aside from the danger associated with them, house fires put your personal belongings at serious risk. People without homeowners insurance can pay thousands of dollars just to replace the items lost in a fire, not to mention the damages done to the structure of the home itself.

Fortunately, if you’ve obtained a homeowners insurance policy before the incident occurs, you’ll be in much better shape. Paying for repairs after a fire or other disaster strikes out of pocket can cost an arm and a leg. If you have an adequate amount of home insurance coverage and are keeping up with your premium payments, any damage that was caused by a fire in your home should be covered.

Following these steps will make the claims process as painless as possible. Though you’ll want your home repaired and items replaced as soon as possible, patience is required if you want to maintain a positive relationship with your insurance company.

 

Before You File a Claim:

Go Shopping

When you were evacuating your home during a fire, you probably didn’t have time to grab much, if anything at all. You can ask for an advance payment from your homeowner's insurance company to cover some essentials, like a toothbrush and toothpaste, deodorant and other hygiene products, and even clothes that you’d wear to work. Fortunately, your home insurer wants to be convenient so you won’t need to file a claim before you buy these items. Instead, ask your insurer for an advance in the form of a check or wire transfer. Make sure you save your receipts and don’t spend above your (and your insurer’s) means, as you’ll need to pay the difference. In other words, when you’re buying a replacement suit to wear to work, head to Macy’s, not to Gucci.

 

Mitigate the Damages

As a homeowner with an insurance policy, it’s your duty to make sure that no extra harm comes upon the home. Do what you can to keep this bad situation from getting any worse. After the fire is extinguished, assess the damages and take steps to protect your home and belongings from an incident resulting from this destruction. If there’s a hole in the exterior wall, for example, board it up to keep vandals or thieves out. If your roof experiences damage from a fire, lay a tarp over the exposed section to prevent rain from creating water damage. Stay on top of things to make sure no new issues arise as a result of the fire damage.

 

Filing the Claim:

Call Your Insurer

Make your claim as soon as possible. Calling your insurer directly is the most proactive, effective way to do this. The insurance agent will ask you about details regarding the accident and its aftermath so the insurance company can get an accurate report. After you speak with an agent, you’ll be asked to submit a proof of loss claim, which details the items lost from the fire, along with their values. This might sound obvious, but the sooner you file the claim, the higher priority your claim will be and the faster the damages will be fixed. Once the claim is initially made, your insurer will bring on a claims representative, who will take a look at your policy, what it entails, your deductibles and any other useful information. Your claims representative will send you a detailed letter documenting this information. This process should take less than 30 days.

 

Be Assertive

After filing the claim, if you feel that your insurance company is taking their time in responding to your initial claim, don’t be afraid to call or write to them. If there’s no question about whether or not you’ll receive coverage from the damages to your home, your repairs should be started in a relatively timely manner. If you’re still feeling tossed aside, you might need to send a letter to your state’s Department of Insurance. This letter can even be a copy of the same email or letter you sent to your insurer. If your insurer is taking too long, the Department of Insurance will reach out to them. This should light a fire under your insurance company, figuratively speaking.

 

Come to a Settlement

If you disagree with your insurer’s analysis of your policy, you are entitled to respond to their initial statement. Just because your home insurer is the one covering the damages doesn’t mean you have no say. Try to come to an agreement on this claim. Once the settlement is reached, the claims representative will either make the payments immediately or decide to investigate further to make sure no fraud is occurring. If the representative wants to go with the latter step, your insurer will send an investigator to look at the damages on your home. If no fraud is detected, the cost estimates to repair or replace features of your home will be put in place by your insurance company.

 

Track Your Living Expenses

If you were forced to relocate from your home to either a friend’s house or a hotel, you might be making various out-of-pocket expenses that you otherwise wouldn’t have made. If your hotel room doesn’t have a kitchen, you might be getting takeout meals more frequently. If you normally pay $300 per week for groceries but spend $450 one week for primarily takeout meals, you should be reimbursed $150 that week from your insurance company. This comes from the loss of use clause, which entitles you to additional living expenses that you are making while living away from home during the claims and repair process. Under this clause, your insurer will most likely pay your motel or hotel bill. However, as with shopping for essentials on your insurer’s dollar, be reasonable with your spending and lodging choices.

 

Get a Repair Estimate

This is where the type of homeowners insurance you have comes into play. If you have an “actual cash value” policy, you will be reimbursed the amount of money these damages items are worth at the time of the fire. If you lose an outdated piece of technology, like an old TV or computer, you’ll receive the amount of cash the item is worth in the present, not what you bought it for. “Actual cash value” policies take objects’ depreciation into account. On the other hand, if you have a “replacement cost” policy, you will be reimbursed the amount of money it would take to replace the object. If you lose a laptop that you bought in 2011 with this sort of policy, you will receive the cost it takes to buy a brand new laptop, not the amount the exact laptop is worth in present day.

 

It’s Not Over Yet

When you filed the initial claim, you might have overlooked other damages. For that reason, leave the claim open with your insurer for a few months after the repairs have been completed. That way, if you come across an issue that emerged from the fire damage, you won’t need to pay a second deductible. Your insurance company will want to close the claim as soon as possible for this reason, but don’t hesitate to keep it open just in case.

 

This sounds like a long process. Unfortunately, it may take a few months to file a claim and receive repairs on your home following a fire; this seems like a long time, especially if you’ve been relocated from your home. However, your insurance company wants to make it as seamless and efficient as possible. If you work with your insurance company cooperatively yet assertively, you will make this process much easier on yourself and them.

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Home Insurance for Protection of Your Most Valuable Asset

Is Home, your most valuable asset? In fact, for most of us, it is. We spend a substantial part of our lifetime’s earnings on a Home. We spend some of the best moments of our lives in our homes. We take all care to ensure that our homes and possessions are protected from any damage or loss. However, mishaps still happen. We can do little about the natural disasters that can potentially cause major damage. Housebreakings are not rare despite us installing best protection equipment with burglars finding ways to outsmart the technology.

Any damage to the exterior or the interiors of our homes or its content can cause emotional and financial distress. There could be many things to fix and replace. As our homes protect us from the heat, dust, rains and many other troubles, it is only fair that we protect our homes from any damage / untoward incidence. In order to protect your home and protecting yourself against any potential losses due to any damage to your home, you need a Home Insurance.

Traditionally, Indian homeowners’ attitude towards Home Insurance has been somewhat indifferent. A Home Insurance has been considered as an avoidable expense in India till recently. However, Home Insurance in India is getting recognized as a crucial protection product after instances of natural disasters in Nepal and India, when many houses were seriously damaged. Thefts have been common for years; however, stakes have gone up of late with homeowners’ preferences for high-value gadgets like LED Television Sets, Home Theatre Systems, Air Conditioners and even rare Antiques. Home Insurance plans are designed to protect the insured against a wide range of perils that put them at risk.

A standard Home Insurance not only safeguards the structure of your home but also covers all the belongings and prized possessions collected over the years. A standard Home Insurance cover gives you a chance to choose either the house structure or the household contents in a single policy.

Let’s understand in detail what a standard Home Insurance plan offers:

Fire: A house can catch fire due to many possible reasons. One may forget to switch off the stove or a spark emanating from an electrical appliance may result in something big and devastating. Short-circuits are common in rainy seasons. A Home Insurance plan offers protection against losses due to fire. It can leave a devastating effect. The property structure can become severely damaged, such that you have to rebuild it. In such a situation, a Home Insurance policy pays for the expenses incurred on repair and reconstruction work. With financial support from the Home Insurance policy, you can focus on getting the house back to its original condition.

Theft: Another problem that worries most homeowners is a possibility of theft. A burglary can result in loss of precious contents such as jewelry, documents, and electronic appliances. One can protect against such possibilities by taking optional burglary coverage. This coverage pays out in the event that the home's contents are stolen.

Storm, Flood, Inundation: With rising instances of Flood, inundation in the last few years, Home Insurance is gaining the attention of the homeowners as an important protection product. There have been a number of instances of people have become the victims of natural disasters in which their houses have been damaged to great extent.

Earthquake: One can also opt for an Earthquake coverage which offers compensation if the structure or the contents of the home are damaged due to Earthquake.

Others: One can also opt for a terrorism coverage which offers compensation if the structure or the contents of the home are damaged by acts of terrorism. Home Insurance in India is becoming important with changing dynamics of Home ownership. A house can get damaged due to so a number of external factors beyond the control of the owner. In the case of a serious damage, it may not be possible to restore everything to its original state because of the enormous expenses that it may involve. With Home Insurance, you can make a claim on the policy and recover the expenses arising from the loss.

In the event of a mishap, making a home insurance claim is not complicated. The homeowner needs to fill in the claims form and submit it with relevant documents to the insurance company. All documents supporting your claim must be provided for it to be approved. The insurance company surveyor will scrutinize the loss and the claim and arrive at a compensation based on the replacement cost.

Home insurance quote depends on various factors like if the premise to be insured is rented or owned accommodation, the Type of property (flat or individual house), the age of the property and the coverage type (the structure or the content or both). Coverage amount is the maximum limit that would be paid if some damage occurs to the house. The major factor that determines the coverage amount is reconstruction cost of the house. Reconstruction cost is ascertained by the following formula:

Total constructed area X Construction cost per square feet With a good home insurance in place, you can have complete peace of mind regarding your property investment. In events like damage to your house due to an earthquake and flood/, inundation, you can avail emergency repairs,. Interestingly, the Home Insurance premium is reasonably low in most cases so as not to put extra financial burden on you. Whether you live in a city or a small town, a Home Insurance is becoming essential. If you have invested a substantial amount of your lifetime’s earnings on your home and its contents, then not having a Home Insurance can be risky.

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5 Home Warranty Myths Debunked

While home warranties can be an additional level of protection for your home, some homeowners may have chosen not to purchase one and others may not even know what one is. If you’re wondering how a home warranty could help protect your home, here are five misconceptions and myths debunked.

Myth #1: “I don’t even know what a home warranty is, so I probably don’t need one.”

The more you know about the home systems and appliances in your home that may be covered by a home warranty, the more you may likely appreciate the value. Home warranties usually cover big-ticket items, like your furnace, air conditioner, plumbing, electrical systems and appliances — some of the essential things you use on a daily basis. A home warranty may help cover the repair or replacement of covered items that break down due to normal wear and tear.

Myth #2: “A home warranty is expensive; it’s not worth it.”

Have you ever thought about how much it would cost if you were to replace a major home system?  According to HomeAdvisor, the average cost of replacing a furnace may range from $2,298 to $5,550. Generally, a basic home warranty may cost you between $350 to $500 a year.

Myth #3: “I don’t need a home warranty, because I have all new appliances.”

Unfortunately, new items may break down, too. Without a warranty, you may be leaving yourself open to a potentially expensive repair on a new appliance.

Myth #4: “I maintain all my appliances and systems, so I would never need a home warranty.”

Breakdowns can happen unexpectedly, even to the most attentive homeowners. Routine maintenance can be a great thing and certainly helps, but it is no guarantee that things may not go wrong.

Myth #5: “I have homeowners insurance, so I don’t need a home warranty.”

This is a common misconception. Homeowners insurance and a home warranty are two separate things and offer different coverage. Homeowners insurance may cover things that happen due to an unexpected event, such as a fire or theft. But a home warranty is a service contract that provides for the repair or replacement of covered items when they break down due to normal wear and tear — things that can happen to just about any homeowner at some point.

Make sure to weigh all of the facts, and then decide if a home warranty may be right for you and your home.

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