Importance of Credit Rating

Importance of Credit RatingThe basic requirement which is needed by every driver is car insurance. This car insurance is required to safeguard you in unforeseen circumstances. All states in US expect that you have atleast basic car insurance that comply to the standards set by the states. Each state will have different requirements for car insurance. Some states expect you to show the documents which determine your financial capacity to handle the accidents. If you own a car, then it is strongly recommended that you should have car insurance but the premium you may have to pay will vary for each person. Premium vary due to many factors.

Before you sign on the dotted line and opt for a car insurance¬† policy, you need to know the benefit of credit score. This is purely based on your credit history. There are many purposes behind maintaining a good score. While securing loan, finding a house, getting telephone connection, buying insurance, your credit history and hence the credit score comes in to picture. There will be a numerical ranking given by insurance companies based on individual’s credit history and is called “insurance score”. This will be considered during underwriting and finalizing your insurance rates. This all depends on how you will maintain your financial affairs. In fact it also helps you in claiming process making it smooth and quick. A good credit history will definitely fetch you those discounts on your car insurance policy.

All you have to do is just pay your credit bills on time and be in good terms with the banks giving your credit cards. Try paying the bill in full rather than in installments and keep a record of how your credit history is and do the needful to void if any errors.

Home Insurance In Short

  • Home Insurance In ShortIf a tree falls – A standard home insurance policy covers damages to you, if a tree falls on your house. In addition, the policy would cover for the removal of the tree up to the policy limits they have. However, if a tree by chance falls on your property and doesn’t hit any structures or a vehicle, the home insurance policy would not cover the cost for tree removal. The cost of replacing trees or shrubs is generally covered if the loss is due to vandalism, theft and fire but not wind.
  • The family Picasso – If you collect art, antiques or other valuables, be sure your agent knows. Keep documentation of the worth of these items in a safe place. Understand the limits and exclusions of your policy and any endorsements. If you have particularly valuable items or ones where the value might be disputed, you might want to hire a reputable appraiser.
  • An act of nature – Sometimes the term, act of god is used to refer to a natural disaster such as a tornado. Most home insurance policies cover losses caused by natural occurrences, excluding earthquakes and floods.
  • Not covered – Typical exclusions of a home insurance policy are earth movement (without an earth-quake endorsement); damage caused by a sinkhole or groundwater; rot, decay, cracking or settling; defects in materials or workmanship; damage caused by vermin, insects, rodents, domestic or wild animals, or general wear and tear.
  • Mold exclusions – Many home insurance companies have added mold exclusions or limitations to policies. Insurance, by its nature, is for sudden and accidental events; mold is neither. While mold is not a large issue in Colorado as in some other states. The Colorado Department of Insurance does not have the authority to mandate such coverage but does require home insurance companies to provide very clear notice to its insureds of any exclusions or limitations.