Do You Need Motorcycle Insurance?

Nearly every state in the U.S. requires that motorcycles being driven on public roads be insured, although the minimum amount of insurance coverage mandated may vary from state to state. Here in N.C., required liability coverage for motorcycles is the same as what's required for cars - 30/60/25. Bear in mind that this is strictly liability coverage, paying benefits only to third parties suffering losses in accidents for which you are held responsible. There is no requirement for motorcycle insurance of other types such as collision, medical or comprehensive, although it's highly recommended that you look into adding coverage other than your basic liability.

Driving your motorcycle without having at least the minimum liability coverage in force is illegal and can lead to penalties.  If you allow your coverage to lapse, your insurance company is required to notify the State DMV, who will send you a notice (Form FS 5-7) requiring you to pay a fine and reaffirm your insurance coverage.

Failure to comply with the Form FS 5-7 within 10 days will cause your license plate to be suspended for 30 days. You'll then be subject to a fine, a service fee, a license plate fee and you'll need to submit proof of current insurance coverage in order to cancel your license plate suspension.

30/60/25

North Carolina's minimum liability requirements of 30/60/25 translate to $30,000 liability coverage against injury or death per person/per accident, $60,000 injury or death for all persons/per accident and $25,000 property damage per accident.

If you've ever been involved in a serious vehicle accident or know someone who has, you realize that these minimum liability amounts are inadequate protection and, with uncovered costs coming out-of-pocket, experts' recommendations that you purchase more than minimum amounts of liability coverage are well-founded.

It's also recommend that you carry more protection than basic liability coverage. Optional types of insurance coverage you may choose to consider include:

• Collision Coverage - pays for damages to your motorcycle that's been involved in an accident.
• Comprehensive Coverage - pays for losses you suffer regarding your motorcycle in situations other than an accident, such as theft, vandalism, fire, hail or storm damage, etc.
• Uninsured/Under-insured Motorist Coverage - pays for your injuries and/or bike damage when the party held liable for your accident doesn't have adequate insurance to cover those losses.

Do You Need an Umbrella Policy?

While it's common to be covered by a certain amount of liability insurance protection as part of your homeowner's insurance policy and your car insurance policy, the limits on this type of liability protection are often woefully inadequate in the real world when you're facing a serious liability lawsuit. A typical example could be if you're involved in a vehicle accident for which you are found to be at fault and held liable. If one or more other cars are involved and anyone in these vehicles (or bystanders) suffers serious injuries, the cost required to pay the damages and the medical bills associated with said accident could very well be disastrously high, perhaps even ranging into the millions of dollars. It's unlikely that you have the necessary coverage on your auto policy to handle such a situation. An umbrella policy could save your assets in this case.

Homeowner's Coverage

As a homeowner, you're responsible for someone becoming injured while on your property. You may even be held liable if you serve someone alcoholic drinks at your home and they drive away under the influence and end up causing an injury or death while driving home.

If you have a backyard swimming pool or a trampoline, your risk of liability is increased significantly, even if your yard is totally fenced and locked against the intrusion of neighborhood kids. Someone suffering a broken neck on your property while bouncing on your trampoline or drowning in your pool could add up to a liability charge far outstripping the limits of your homeowner's liability coverage limits, even if you've gone the extra mile and bumped your coverage up to $300,000 (which may be the most allowed on your particular policy).

Get an Umbrella                                              

Umbrella coverage is liability protection that works along with your ordinary liability coverage, kicking in once your other coverage becomes exhausted. Typical minimums on umbrella protection start at one million dollars, for which the cost is surprisingly affordable (usually around $200 annually), but you can increase your coverage to $2 million for about another $100.

This umbrella coverage is protection against the big liability judgements, meant to protect your current and future assets against large judgement claims. The more assets you have and the greater your income, now and in the future, the greater your need for umbrella protection. It's a small price to pay for a great deal of protection.

Do You Have Enough Homeowners Insurance?

Paying for more homeowner's insurance than you really need can be a mistake because you're spending money unnecessarily. A much bigger mistake, however, is trying to save money by carrying less homeowner's insurance than you should, especially if you find yourself in a position where you're having to make a claim against your coverage. The answer is to take out a policy that fits your requirements as closely as possible, which is best accomplished by doing your due diligence in knowing exactly what it is you're insuring, consulting with a knowledgeable insurance professional for solid advice and making it a point to revisit your coverage every year or two to ensure the amount of coverage you have is still appropriate.

How Much is Enough?

Generally speaking, there are two basic types of homeowner's insurance:

·       Actual Cash Value Coverage

·       Replacement Cost Coverage

If you live in a twenty-year-old home that burns to the ground in a house fire for which you make a claim, the type of coverage you have will determine how much your claim will pay. With Actual Cash Value Coverage, your reimbursement will be based on your home in its depreciated state. That would include paying for the value of 20-year-old windows and doors, a 20-year-old roof, 20-year-old appliances, etc.

With Replacement Cost Coverage, depreciation doesn't factor into the reimbursement settlement. You'll receive a claims payoff equal to the amount needed to rebuild your home in like-new condition, with similar type and quality of materials used when it was initially built.

Setting a Dollar Value

To be covered properly, you want to have the ability to build your house completely, which means you want Replacement Cost Coverage. You also need enough coverage to pay today's building costs. Bear in mind that the current market value, or what you could sell your house for today, may be less than the amount it would cost to rebuild your home. Construction costs play an important role in rebuilding a home.

Personal Property

Homeowner's insurance includes coverage for not only the home itself but also for your personal possessions. Make sure to take an inventory of all your valuables to ensure you have enough coverage for everything, especially if you have valuable artwork, jewelry, coin or other collections, etc. Most policies have limits on claims for these valuables, and you may need to take out extra coverage.