This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Thanks For Nothing!

Insurers lost out on $2.7 billion in premiums in 2010 because of consumers failing to disclose information about household drivers, according to a 2011 Quality Planning report. Those losses don't just hurt the insurance companies; they get passed on to other customers in the form of higher premiums overall.

2. Remodeling your house without increasing home insurance coverage

Review your home insurance periodically to make sure the amount jibes with current construction costs and takes into account any improvements you make. You should insure your home for the cost to rebuild it.

"Anytime you make changes -- adding a room to a house, upgrading your kitchen or bath -- notify your insurer so that these changes are reflected in the policy," says Tully Lehman, a spokesperson for the Insurance Information Network of California.

Otherwise you will be underinsured. Lehman recalls one Lake Tahoe, Calif.-area homeowner who, over the course of many years, remodeled a small two-bedroom, one-bath house into a two-story mountain dream home. Trouble was he never changed the amount of home insurance coverage. After a fire swept through the area and leveled the house, the home insurance payout was enough only to rebuild the original, modest structure.

The problem is surprisingly common.

One year after the September 2011 central Texas wildfires, for instance, 56 percent of affected homeowners reported being underinsured by an average of $110,000, according to United Policyholders, a consumer advocacy group in San Francisco.

Here are home insurance basics.

3. Expecting home insurance to cover your home business

Just because you work at home doesn't mean your business is covered by home insurance. Typically home insurance covers just $2,500 in business-related property, and includes no liability coverage for business activities.

What if one of your business consulting clients slipped and fell on your stairs? Or a batch of cookies from your baking business sent someone to the hospital? Home insurance wouldn't cover your legal expenses if you were sued.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs