5 Top Insurance Tips for Retirees<br>
1.t<b>Cover For Personal Liability Lawsuits</b><br>
Umbrella liability coverage is important for retirees to consider, however, as they have less time to make up for lost wealth in the event of a significant personal liability settlement, according to ACE.
The good news: the cost of adequate coverage can be only a few hundred dollars per million dollars in coverage, and that expense can often be offset by finding savings elsewhere in a personal insurance plan.
2.t<b>Fully Insure Your Home</b><br>
A study by building cost data provider Marshall & Swift/Boeckh found that 64% of American homes were underinsured.
To be properly insured, retirees should seek policies that provide full replacement cost coverage, since there are always multiple factors pushing rebuilding costs higher, and any potential gap in coverage could represent a threat to a retirement plan.
3.t<b>Insure Your Homes Contents Too</b><br>
As a result, contents coverage is too often based on assumptions. ACE research suggests the status quo leaves many owners of high value homes with significant gaps in contents coverage.
In a pilot program with agents, ACE completed more than 400 estimates during a four-month period and found that nearly half the homes studied had insufficient contents coverage.
For homes with structural values between $2 million and $7 million, the average level of underinsurance approached $600,000.
4.t<b>Protect Your Collections</b><br>
Yet many collectors dont take the necessary steps to minimize the risk of damage, theft and other hazards that threaten the value of their collections.
According to an ACE survey of investors with at least $5 million in investable assets, 94% own collections of significant value, and yet nearly 40% did not have all their collections insured with a valuables policy.
5.t<b>Dont Overpay</b><br>
Missed savings opportunities occur in three primary areas:
1)tDeductibles are too low, which raises the cost of premiums. Assuming more risk for losses that can be reasonably absorbed, by having plans with higher deductibles, can result in substantial premium savings that over time far outweigh the risk of paying a higher deductible amount after a loss.
2)tPackage discounts: 55% of agents noted that affluent consumers do not take full advantage of discounts earned by consolidating their insurance policies with one carrier.
3)tLoss prevention credits: 36% of agents said that affluent consumers are unlikely to get credit for alarm systems and other loss-prevention measures protecting their homes or vehicles. When combined, credits for such systems can exceed 30% of the base homeowners premium and range from 5% to 20% on comprehensive auto coverage premium.