Are You and Your Home Protected and Ready for Tornado Season?

Tornadoes are a fact of life in Florida, and it seems that more of these powerful storms impact the people who live here each and every year. There are some steps that you can take to ensure that your family and your home are protected - both physically and financially - when these storms rear their ugly heads. 

Preparing Your Home

Believe it or not, there are lots of things that you can do to prepare your home and property for the impending tornado season, and some of these can even help you save money on your homeowners insurance. For instance, you could replace a gravel driveway with the shredded bark products that are available all over the country these days. It’s less expensive to maintain in the long run and it does far less damage when it is airborne. You could also consider installing windows that are designed to resist impacts; this is a great investment in the long run because it also provides better insulation than traditional windows. Finally, make sure that all of your lawn furniture and decorations are secure.

Make a Home Inventory List

If you have never created a home inventory list or the one you are currently relying on is outdated, you might want to consider making one. To do it, simply walk around your home and write down everything you own that is of value; electronics, appliances, jewelry, expensive clothing, artwork, décor, heirlooms and more can all go on this list. Then, write down each item’s approximate value before making two copies – one for yourself and one for your insurance company. In some cases, you might even want to attach photos in the event of any discrepancies. Then, in the event that the worst happens, you’ll know exactly what you need to replace.

During the Storm

When bad weather strikes, there are some things to keep in mind. First, you should know the difference between a tornado watch and a tornado warning. A watch means that conditions are favorable for a tornado, but a warning means that one has been spotted and that the brunt of the storm is imminent. You should seek shelter in the lowest level of your home – preferably a basement – in an interior room or closet with no windows. Listen to a battery-powered radio and only come out once the all-clear has been given.

Cleaning Up

If you are provided with the all-clear to reenter your home after a significant event, you should take precautions. Always wear a mask, gloves, and shoes that fit well and protect your feet from sharp debris. Your standard insurance policy will cover damage from tornadoes in most cases, so if you don’t have one, you can go to www.cheapinsurancefl.com to find your best options. If you do have one, make sure that you contact your representative or agent immediately following the event. In some cases, you may receive funds to stay in a hotel until alternate arrangements can be made, and this can certainly make life easier after such a traumatic event.

Tornadoes are terrifying and destructive, but they are a part of life for almost everyone in Florida. Knowing what to do before, during and after the storm can not only save your sanity, but also your life. 

Update Your Home with Your Tax Refund to Reduce Homeowner's Insurance Premiums

If you’re really interested in saving some money on your homeowner’s insurance this year, then why not use your tax refund for a few home improvement projects? Rather than spend that money on new expensive gadgets that may only raise your premiums in the end, you can perform some repairs and updates that will increase your home’s value and reduce the cost of your insurance at the same time.

Get a Security System

Whether or not you live in a neighborhood that is known for crimes like burglaries, installing a home security system will provide you with three benefits. First of all, your family and possessions will be protected in the event that a burglary does occur. Second, your homeowner’s insurance premiums will be reduced since the likelihood of a theft reduces dramatically. Finally, the value of your property increases, so if you decide to sell your home, you can ask for more money.

Fix the Roof

Even if it isn’t leaking (yet) there are some updates you can do that will help you save money on your homeowner’s insurance. In fact, there are many insurance providers out there that will provide a nice discount when you update your roof with impact-resistant materials simply because it reduces the odds that you will have to file a costly claim after a hailstorm, snowstorm or other event. Sometimes, this can be as much as 10%!

Consider Rewiring

Although rewiring your home is a big job and one that might put you and your family out of sorts for a while, there are some huge benefits in doing so. Outdated wiring is dangerous, so if you still have old-fashioned fuse boxes and ungrounded non-GFI power outlets, consider updating everything. Again, this reduces the odds that you will need to file a fire-related claim and may save you some money on your premiums.

Put Up a Fence

Finally, when you choose to put up a fence around your yard, you can also save some money. In many states, and in Florida, as well, should someone walk through your yard and get hurt, your insurance may be left to pick up the bill – even if that person was uninvited or perhaps even trespassing. As such, putting up a fence will deter people from coming into your yard uninvited, thereby reducing the likelihood that someone will get hurt on your property.

Check Your Plumbing

While flooding is a concern in some parts of Florida and separate insurance policies are designed to cover this, floods caused by plumbing issues are an altogether different story. Brittle pipes and failed connections cause thousands upon thousands of dollars, and more homeowners than you might think are faced with this problem annually. If it’s time to update your plumbing, then you can certainly reduce some risks here, as well.

If you are looking for ways to save money on your homeowner’s insurance, or perhaps you’d like to see about getting a cheaper policy with ample coverage, then visit www.cheapinsurancefl.com for some ideas. There are always great ways to save on your premiums if you know where to look. 

Stay-at-Home Parents and Life Insurance: Is It Necessary?

These days, the costs of child care have created a brand new generation of stay-at-home moms and dads who work hard every day to take care of children and household duties. When it comes time to purchase life insurance, however, these people often believe that they don’t need much coverage if any at all. Here is a rundown of how life insurance figures should be calculated for stay-at-home parents and why it is so important.

Employer-Provided Options

In some cases, stay-at-home parents may receive some life insurance from their spouses’ employers. These individuals often feel as if this coverage alone is enough because, after all, there wouldn’t be any income to replace. However, what people fail to realize is that even when they do not work outside of the home, they are providing valuable services that would be very costly to obtain following their deaths. As such, it is important to consider these costs and factor them in whenever it comes time to purchase a policy.

Value of Policies

For a stay-at-home parent who is covered under his or her spouse’s employer-provided life insurance policy, the value of the policy is generally between $20,000 and $30,000 with a maximum of around $50,000 according to national surveys. While this might seem like enough since a stay-at-home parent has no true income, it is important to consider the value of the services that are being provided in the home. Child care and other domestic services aren’t free in today’s economy, and these are things for which the spouse of the decease will pay – and pay a lot, according to various sources.

Child Care

The average American family has two children, and factors such as the ages of these children and the states in which they reside will have a huge impact on the cost of child care. For instance, while the annual cost of infant care in Mississippi was under $5,000 in 2010 according to the Child Care Resource and Referral group, it was over $10,000 in the District of Columbia in the same year. In Florida, it was estimated that child care for a single infant in 2010 was about $7,000 for a year, and inflation has likely driven up these costs. Plus, if there is more than one child in the household, these costs raise significantly.

 Other Domestic Services

Aside from saving a family more than $10,000 per year in child care services in the case of a two-child family, a stay-at-home parent provides other domestic services that are of great value. They drive children to practices and doctor’s appointments, they provide housekeeping and laundry services, they prepare meals, and they provide a support system to the entire family upon which it is impossible to place financial value. According to a poll by Salary.com, the economic value of a stay-at-home parent tops out at an average of more than $100,000 per year.

If you are a stay-at-home parent, your life insurance policy is just as valuable as your working spouse’s. A good rule of thumb is to purchase a policy large enough to make up for any financial burden after your passing and then some. After all, these funds will go to your surviving spouse and children in order to help them pay for college and other expenses. You can find affordable policies and information at www.cheapinsurancefl.com. 

Retirement is One Thing that Married Couples Should Do Separately

Married couples do a lot of things together, including purchasing life insurance policies, going on vacation, buying homes and more. However, retirement isn’t one of the things that couples should do at the same time. It can have a significant impact on the household budget, and that’s why it is best when couples choose to stagger their retirement.

The Emotional Effect

First and foremost, before even considering all of the financial implications of retirement, it is important to understand the effect it can have emotionally. Many people have established senses of identity through their employers, and giving up a career that they’ve had for a number of years can really take a toll. Retirees often need some time to reestablish themselves in the world through hobbies, groups and the like. Couples who retire at the same time are faced with these issues together, and this means that they won’t be able to support each other to the best of their abilities.

Financial Implications

For many married couples, it is best for the primary breadwinner to continue working for about five years after the retirement age of 65. This has two primary effects on retirement savings. First, considering that someone earns an average of $50,000 per year during these five years and places 15% of that income in his or her retirement account, this means that an additional $7500 a year for five years or $37,500. Lastly, that retirement income won’t be touched for the entire five years. This means that the couple will have more money to live on annually once they have both retired.

Health Insurance

If one individual – or perhaps even both – has healthcare that is provided through his or her employer, then there are even more savings to be realized by waiting another five years to retire. One of these individuals won’t be required to purchase insurance that is supplemental to Medicare, and chances are that this individual will also have a life insurance policy integrated into their benefits package. By waiting five years to take over these expenses, thousands of dollars can be saved. After retirement, affordable policies are available at http://www.cheapinsurancefl.com/types-of-insurance/. With just a bit of information, you can get a comprehensive quote for all of your insurance needs.

Existing Obligations

While many people manage to pay off their mortgages, cars and other major expenses prior to retirement, there are an equal number of people who do not. In fact, it is becoming increasingly common to find people who have been retired for as many as five years and who are still making monthly mortgage payments. In this case, it may be in your best interest to see about having the remainder of your loan refinanced so that monthly payments are smaller. Of course, if you can afford the payments as they are, then this is acceptable as well since your loan will be repaid more quickly.

Overall, retirement is a very important phase in life and one that kicks off what are known by many as their best years. Traveling, socializing, and all-around fun should be the focus of these years, and there is no better way for married couples to do that than to stagger their retirement. 

Five Things to Do Before You Retire

Retirement is an exciting prospect for many people, but seldom does anyone truly prepare for their golden years. The following five tips will help you ensure that you are ready to say goodbye to the workplace and hello to the best years of your life.

Decide How Much Health Insurance to Buy       

In the event that you’ve had health insurance through your employer, there’s a chance that you may be able to continue it after your retirement. However, if this isn’t an option or if it will be too expensive for you to continue under the same plan, then you might need to seek out other options. You’ll be eligible for Medicare at age 65 but, for many people, this coverage is simply not enough. You should weigh your options, consider your current state of health, and purchase a plan that won’t break your budget.

Create a Last Will and Testament

This can be a difficult prospect for some people, but it’s something that needs to be done nonetheless. Here, you’ll want to consider how much life insurance you have (and you’ll also want to purchase some if you haven’t yet) and how it will be divided among your family and loved ones after your death. You will also want to declare how your physical property – including any real estate you own – should be handled. Finally, make sure that you include a ‘living will’ which is a declaration regarding whether you want life support or even CPR in the event of a medical issue.

Finish Paying On Your Mortgage

More than likely, your mortgage (if you have one) is your biggest expense. You’ll want to make sure that you’ve paid this off, and if you can’t pay it off altogether, you can also look into refinancing so that you can receive a lower monthly payment. Another option is the reverse mortgage, but this is something that many people don’t fully understand. After your death, if you are the only person living in that home and the only name on the title, then your home will be possessed by the bank that provided the loan.

Check Pensions and 401(k) Plans

A lot of people rely on their pensions and their 401(k) savings after retirement, but few people actually understand how much they’ve saved or what will be provided to them. If you’re considering early retirement, keep in mind that your pension is likely to change drastically. Similarly, in the event that you attempt to withdraw funds from your 401(k) plan early, you’ll be penalized for that, as well.

Host a ‘Trial’

Once you’ve gotten all of your affairs in order, one of the best ways to make sure that you’re prepared for your retirement is to live as if it’s already occurred for a period of two to three months. Stick to your budget and your plan, and if something seems amiss, make an adjustment. This way, you’ll know exactly what you can expect and exactly what you’ll need to do to get there.

Preparing for retirement is a task that takes decades to perfect, but even if you’re behind in the process there are still some things you can do. Considering your insurance policies, pensions and more will not only help you live comfortably, but it will ensure that your loved ones will be cared for after your passing. 

Disaster Scams and How to Avoid Them

As if being involved in a disaster like a fire, hurricane or tornado were not enough, there are people out there waiting to prey on those who have fallen victim. The following disaster scams have been reported nationally with some of the most recent coming in the wake of hurricane Sandy.

Why Victims Fall Prey

Think about this: when someone is involved in a disaster like the ones mentioned above, the first thing they think is that they need help – and they need it fast. Oftentimes, these people are so upset that they don’t take the time to check the qualifications of the companies who offer their help. As such, there are instances of ‘fake’ construction companies and cleaning crews accepting checks for work that they never intend to perform, cases of identity theft, and even false charities claiming to take up funds from people who weren’t even involved in the disaster. This turns the common consumer into a victim, as well.

Identity Theft

After a major disaster, a group called FEMA, or the Federal Emergency Management Agency, often takes information from those affected in order to provide relief funds and other aid. Con artists will often go door-to-door claiming to work for FEMA in order to gather your personal information for a purpose that is much more sinister. Please keep in mind that following a disaster, FEMA agents will never come to you and ask you for your information. You must contact them directly through an authorized telephone number or website.

Fake Charities

Following a disaster or crisis, crooks will often set up fake charities and promise that all of the proceeds collected will go to the victims. In all actuality, the only place those funds go is right into the pockets of the con artist. Before donating any sum of money to any charity – whether it is $5 or $500 – please be sure that you research it thoroughly. Never simply assume that someone is working for the Red Cross just because they say so; rather, take the time to do your research. Should you choose to donate to the Red Cross, you can do so through their website or by calling their official toll-free number.

False Victims

In contrast to the fake charity scam, there are some folks who will pretend to be victims of a disaster in which they were never even involved. People have gone so far as to say that their husbands, wives or children were killed although they never even existed in the first place. Although these stories may tug on your heartstrings, it’s important to remember that con artists are out there. It is better to donate to legitimate charities or even work directly with someone you know personally if they were affected by the disaster in any way.

While many of us don’t want to believe that someone could be cruel and heartless enough to take advantage of a disaster-ravaged community, it certainly can and does happen. Protecting yourself against these scams is the absolute best thing you can do to protect yourself. 

Teenage Drivers and Parental Liability

If you have one or more teenage drivers in your household, then it is important for you to understand your potential financial and legal liabilities in the event that he or she is at fault in an auto accident. Parental liability is a serious issue that everyone should understand prior to allowing a child onto the roadway with other drivers.

Are You ‘Off the Hook’?

One of the biggest mistakes that the parents of new drivers make involves buying the teen a car, putting the car in the teen’s name, and then allowing the child to purchase his or her own insurance. At this point, the parents often truly believe that they are off the hook in the event that their children are involved in accidents that are determined to be their fault. However, this is absolutely not the case. Children who are not yet 18 years old are not legally capable of accepting such liability and this means that the liability falls back on the parents.

A Frightening Example

Ethan Couch, a teenager living in Texas, made national headlines when a drunken crash killed four people. His defense was that he was suffering from ‘affluenza’, or a condition in which it is claimed that wealthy children are prone to feelings of isolation, depression and guilt. Couch claimed that the affluenza led to his drinking and therefore the crash. The judge in the case agreed with the defense and the teen was officially off the hook, but the attention then turned to the parents who were charged with negligence. In fact, they are involved in no less than five civil suits due to incidents involving negligence in the supervision and care of their son.

How Does This Happen?

If your child is involved in an accident in which someone is hurt or killed, the victims do have the right to file a suit claiming negligence. However, in order for you to actually be charged, certain factors have to exist. For example, if your child has received several speeding tickets and is involved in an accident because he or she is driving at a high rate of speed, then a judge could very well rule that you ‘should have known’ such an accident was imminent. The same can be said if you make both alcohol and car keys accessible to a teenage driver.

What Should You Do?

If you’re wondering whether or not you should even let your kid out of the house with the car keys at this point, rest assured that there are some things you can do to protect your child and yourself. First and foremost, it is your duty as the head of household to determine whether or not your child is fit to drive. If he or she has shown serious lack of responsibility or negligence in the past, handing over the keys may not be such a good idea after all. It is up to you as the parent to make the final decision and exercise your best judgment before allowing your child onto the roadways.

Of course, it is also important to discuss your parental liability with your child prior to allowing him or her to drive. This can be incorporated into conversations about texting behind the wheel, drinking and driving, or any other issue that is a concern.