Posts by: Krush Digital

‘Tis the Season for Holiday Mishaps

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The holiday season is a time to focus on friends and family, not worry about whether your insurance coverage is adequate. As you prepare to celebrate the season, consider reviewing your insurance policies to avoid these nightmare scenarios.

Auto Insurance

A family member borrows your car and has an accident:

Your auto insurance policy would usually provide the same coverage for your relative as if you were driving, however, some policies may reduce coverage to the minimum limits if the driver is not listed on the policy. This is not common, but check with your company to make sure your liability does not drop down to the minimum limits. Also, if an at-fault accident occurs while they are driving the vehicle, your policy is considered primary and your policy will pay the claim. This would likely cause your insurance rates to increase.

The auto policy on the You borrow someone else’s car and get into an accident: borrowed vehicle provides primary coverage. If no coverage exists, your auto policy car from a friend, your liability coverage usually steps in only when the insured’s policy coverage extends to a friend or family member’s car and explain the likely scenarios you individual circumstances and state law will factor into the outcome. When you borrow a limits are exceeded. Talk with your agent or insurance company to find out if your auto might provide coverage but it depends on the reason for driving the car. In each case, would need to borrow a vehicle.

You have plans to drive to Canada or Mexico:

Make sure you have coverage outside of the U.S. All policies provide coverage while driving in Canada, but your policy will not provide coverage when you are in Mexico. If you plan to drive in Mexico, it is recommended that you purchase insurance in Mexico for your vehicle.

Someone breaks your car’s window and steals gifts from the back seat:

Most standard homeowners and rental insurance policies provide coverage; however you are responsible for the policy deductible and there are limits. Some auto policies provide coverage for this situation. Talk with your agent or company on both policies (homeowners/renters and auto) to find out under which policy you should report your claim.

Homeowners Insurance

Someone steals the holiday decorations from your front yard:

A standard homeowners policy typically provides coverage, subject to policy deductible and coverage limits. These items are also generally covered if you have a condominium or renter’s insurance policy. Please keep in mind that if the loss is around or below the deductible, it is best to pay the claim out of your own pocket. A company cannot cancel, up rate or non-renew you for filing a first claim, but they can after two claims.

Presents are stolen from your home:

Standard homeowners insurance policies provide coverage with special limits for certain goods, such as guns, furs, silverware and jewelry. Standard condominium and rental insurance policies provide similar coverage. Check your policy for specific item limits and be sure to add new items to your policy as soon as possible to ensure you are covered. Motorized vehicles like four wheelers and motorcycles are not usually covered by homeowners policies either so look to your auto insurance policy to add these for liability, collision and other than collision losses.

An ice or snow storm causes a tree to fall through the front window of your house:

Home damage and tree removal (if the tree fell on your house or driveway due to the weight of ice or snow) is generally covered by a standard homeowners insurance policy minus deductible. Check your policy to find out what coverage you have. An HO-02 policy does not provide coverage for weight of ice and snow so when you are shopping for homeowner’s coverage, ask for an HO3 or HO5 equivalent policy.

A candle falls over and lights a curtain, causing a house fire:

A standard homeowner’s insurance policy will cover your home and belongings destroyed by a fire, up to the policy limits. Standard policies typically provide additional living expenses if you are unable to live in your home due to damage from a fire or other disaster

Home Inventory

This time of year you may be purchasing a lot of new items for your house. That makes now a great time to complete or update your home inventory. A home inventory is very helpful to you and your adjuster after a loss. If items are stolen, blown away or burned beyond recognition, there is no way to determine what you had at the time of the loss. Complete the inventory list on your smart phone app and, if a loss occurs, you can show what you had in the house and make filing the contents claim go a lot faster and easier. Here is a link to our app http://www.ok.gov/oid/home_inventory.html. Remember, if you have any insurance questions, don’t hesitate to contact the Oklahoma Insurance Department at 1-800-522-0071

Get Ready for Winter Weather

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Today, Nov. 12, is Winter Weather Awareness Day in Oklahoma. Our first significant cold snap has already arrived. Now is the time to prepare for winter weather and make sure you and your family are safe through the cold months. Each year, dozens of Americans die from exposure to cold temperatures, in addition to injuries and fatalities caused by auto accidents and dangerous use of heating devices. Many times, high winds, freezing rain, sleet and heavy snowfall accompany winter storms, leaving behind a trail of destruction. What can you do to avoid these extreme dangers?
Take the time to do the following:

Prepare Your Home and Property for Winter Weather

Winterize your vehicle and keep the gas tank full to prevent the fuel line from freezing. – Insulate your home with storm windows or by covering windows with plastic to keep cold air out. – Maintain heating equipment and chimneys by having them cleaned, serviced and inspected every year. – When you are away from home, leave the heat set to a temperature no lower than 55° F. When you are home, set the thermostat for at least 65 degrees to keep the temperature inside the walls warm enough to prevent pipes from freezing. – Clean out gutters, so melting snow and ice can flow freely, and consider installing gutter guards. – Trim trees and remove dead branches to prevent weakened trees or limbs from damaging your home or car, or injuring someone walking by your property. – Repair steps and handrails and seal cracks and holes in outside walls and foundations. – Keep combustible items away from any heat sources, including wood stoves and space heaters. – Install smoke and carbon monoxide detectors and ensure they are working properly.

Have a Plan

Know what each member of the family will do to deal with ice, snow, and frigid temperatures.

Always be Weather Aware, Especially When Traveling

When winter precipitation is forecast, consider delaying the trip or changing your plans to avoid being caught in a dangerous situation. Small amounts of winter precipitation can cause significant travel problems. Always pay attention to weather watches, warnings and advisories. Keep up to date on the latest forecasts and warnings from television, radio, Internet and/or weather radio.

Build an Emergency Winter Storm Safety Kit

Your family plan should include a winter storm safety kit, especially with the possibility of losing electrical power and/or water service. Your safety kit should include: – Water – at least a 3-day supply; one gallon per person per day, – Food – at least a 3-day supply of non-perishable food, – Flashlight and extra batteries, – Battery-powered or hand-crank radio, – First aid kit, – Medications (7-day supply) and medical items (hearing aids with extra batteries, glasses, contact lenses, syringes, etc.), – Multi-purpose tool and tools/supplies for securing your home, – Sanitation and personal hygiene items, – Copies of personal documents (medical information, proof of address, deed/lease to home, passports, birth certificates, insurance policies), – Cell phone with chargers, – Baby supplies and/or pet supplies – Sand, rock salt or non-clumping kitty litter to make walkways and steps less slippery, – Warm coats, gloves or mittens, hats, boots and extra blankets and warm clothing for all household members, – Ample alternate heating methods such as fireplaces or wood- or coal-burning stoves.

Know Your Insurance Policies

Most homeowners policies cover winter-related disasters such as burst pipes, ice dams and wind damage, as well as fire-related losses. Damage to homes caused by flooding is excluded from standard homeowner policies. Flood insurance is available, so ask your insurance professional about available policies. Flooding from melting snow can overburden sewer systems, causing back up into your home. Backed up sewers can cause thousands of dollars in damage to floors, walls, furniture and electrical systems. Sewer back-up coverage must be purchased either as a separate product or as an endorsement. Keep in mind that standard homeowners policies include additional living expenses in the event that a home is severely damaged by a covered disaster. For more helpful tips on winter weather preparedness, including information on homeowners, renters or auto insurance, contact the Oklahoma Insurance Department’s Consumer Assistance Division at 1-800-522-0071 or go online at https://www.oid.ok.gov/.

How Does Credit History Affect My Insurance Premium?

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Your credit score has an impact on a number of big-ticket items including your mortgage, auto loans and interest on your credit card debt. You may not realize, however, that your credit history can also affect how much you pay for insurance. Insurers have the option of using your credit-based insurance score to determine your premiums.

FICO reports that approximately 95 percent of auto insurers and 85 percent of homeowners’ insurers use credit-based insurance scores in states where it is legally allowed to do so. A standard credit score is not the same as a credit-based insurance score, though. Here are some tips to help you better understand how insurers determine your premiums. Credit scores are based on an individual’s credit history. In a way, credit scores reflect an individual’s financial standing or how likely one is to repay a loan or line of credit. An insurance score is an insurer-generated numerical ranking based on a person’s credit history, used when underwriting and setting the rates for insurance policies. Insurers do this because studies have shown that how a person manages his or her financial affairs is a good predictor of insurance claims.

These scores help differentiate potential insurance risks and insurers charge a premium based on the risk they are assuming. Basically, statistics show that people with poor insurance scores are more likely to file a claim. The credit-based information that goes into an insurance score includes payment history, outstanding debt, credit history length, pursuit of new credit and credit mix, or the types of credit you have. An insurance score will be used as one factor in the underwriting process. Other factors, dependent on insurance type, may include your zip code, your age, the make and model of a vehicle, and age of home. Insurance companies can tell you if a credit-based insurance score was used to underwrite and rate your policy after receiving a quote.

Establishing a solid credit history may help you cut the cost of your insurance. How do you protect or improve your credit? Pay bills on time, don’t obtain more credit than you need and keep the balances on your credit cards as low as possible. It is important to check your credit report regularly, which will allow you to find errors and get them corrected. Consumers can obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian and TransUnion). You can go to www.annualcreditreport.com to check all three reports without a fee.

For more information about insurance or credit-based insurance scores, contact the Oklahoma Insurance Department’s Consumer Assistance Division at 1-800-522-0071 or visit http://www.ok.gov/oid/ .

5 Ways to Save Money on Auto Insurance

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Consumers often call our department to ask how to save money on insurance and it’s an important topic to discuss. Our mission is to educate consumers on insurance and also show them ways to save money when purchasing policies. Here’s a few ways you may be able to reduce your premiums.

1. Remember the factors that determine the price.

Many factors determine the cost of an auto insurance premium. Some factors, such as driver’s age, gender and location, cannot be changed, but do come into play when the premium is determined. Other factors may be adjustable and can help lower the cost, such as driving record, frequency of vehicle use, credit score and the type of vehicle being driven. When looking to lower premium costs, lowering or improving any of those four factors may help cut the cost.

2. Shop and compare.

Different insurance companies charge different rates for the same coverage, so it is important to shop around. Get quotes from several companies before buying and make sure to compare equivalent policies. To give you an idea of the differences in cost, take a look at the rate sample comparison available at www.oid.ok.gov under the “Consumers” tab.
It is also important to consider other factors, such as financial strengths and customer service when shopping insurance providers. A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings) are two of several rating companies that can be checked for the financial health of insurance companies. Obtaining an inexpensive policy when trying to save money will do no good if the insurer is not financially sound. Even before buying a car, getting quotes for specific vehicles is a good idea. Auto premiums fluctuate depending on the car’s features, the cost to repair it, its overall safety record and the likelihood of theft.

3. Raise deductibles

Increasing policy deductibles can save money on premiums. A deductible is the amount paid out-of-pocket on a claim before the policy pays the loss. For example, increasing a $500 deductible to $1,000 could significantly reduce the premium. Checking with your insurance agent to determine how much you’ll save with a higher deductible. Remember, raising the deductible will mean paying more out-of-pocket when you have a claim. Also keep in mind that filing multiple claims, even small ones, may result in larger premiums due to applied surcharges.

4. Reduce coverage on older vehicles.

Another way to decrease costs when reviewing coverage is to consider dropping comprehensive and collision coverage on older cars. It is often not cost effective to purchase full coverage on cars worth less than 10 times the premium.

5. Bundle and check out available discounts.

Many insurers give discounts when two or more types of insurance are purchased, which is called bundling. Purchasing homeowners and auto insurance from the same insurer is one example. A reduction may also be offered if there is more than one vehicle insured with the same company. Other optional discounts may be available for anti-theft devices, anti-lock brakes, air bags or daytime running lights, good student grades, drivers education courses, defensive driving courses, no accidents or moving violations in three years and good credit records.
For more information on auto or other insurance products, consumers are urged to call the Oklahoma Insurance Department’s Consumer Assistance Division at 1-800-522-0071 .

Declare Your Independence from Fireworks Danger

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If you’re planning a big bang for Fourth of July celebrations later this week, make sure your party doesn’t go bust. Independence Day fireworks account for two out of five reported U.S. fires, more than any other cause of fire each year. In 2011, fireworks caused an estimated 17,800 reported fires resulting in $32 million in direct property damage. Hospital emergency rooms saw an estimated 8,700 people for fireworks-related injuries in 2012. This year when you’re shopping for sparklers and bottle rockets, know what your homeowners policy will cover to protect you in the event damage or injury is caused from your fireworks display. And, don’t forget to review important safety tips.

Fireworks and Insurance

It is important to check with your insurer to see if you are properly covered for liability and damage to your home resulting from the use of fireworks. Fireworks are illegal in most incorporated towns and cities in Oklahoma, so you need to check if your policy excludes fireworks-related coverage. Homeowners policies typically exclude damages caused by illegal activities and may exclude coverage for fireworks completely. If you live in an area where fireworks are legal, ask whether your policy calls for specific safety precautions before using fireworks on your property. Structural damage to your property may be covered under a standard homeowners policy should any lit fireworks land on your roof or spark a grass fire, for example. However, it is important to note possible repercussions of filing a claim. If you file two or more claims, your rates could rise when your policy renews or your policy may not be renewed.

The Harmful Side of Fireworks

The use of fireworks comes with risk and the potential for serious injuries. Even sparklers can burn as hot as 1,200 degrees, which can cause severe burns. According to the National Fire Protection Association (NFPA), the risk of fireworks injury is highest for young people ages 15-24, followed by children under 10.

Personal liability typically protects you and your family for negligence if someone is injured or someone else’s property is damaged. Additionally, “medical payments” in a homeowner’s policy can protect you from medical expenses in the event guests are injured by fireworks on your property. Be sure to verify the monetary limits outlined in your home insurance policy and look into additional coverage, if needed.

Keeping Safe

Here are some safety tips to review before your Independence Day celebration:

  • Add your content…Fireworks should only be used outdoors. Light fireworks in a clear area away from houses or flammable materials such as dry leaves or grass.
  • Make sure other people are out of range before lighting fireworks.
  • Never ignite fireworks in a container.
  • Keep a bucket of water nearby in case of fireworks emergencies.
  • Do not relight or handle malfunctioning fireworks. Wait 20 minutes and then soak them in water before throwing them away.
  • Do not place any part of your body over a firework while lighting it.
  • Do not experiment with homemade fireworks.
  • Know your fireworks and read the caution label before igniting.

The best way to prevent fireworks-related damages is to attend a public display, but if you cannot resist celebrating with your own fireworks, make sure you are protected from potential fire damage and injury. For insurance-related questions, contact the Oklahoma Insurance Department’s Consumer Assistance Division at 1-800-522-0071 or go online at http://www.ok.gov/oid/.

Protect Your Special Event with Insurance

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Whether it’s a June wedding, a milestone birthday party or a Fourth of July bash, summer is a popular time for big events. People tend to focus on food, decorations and entertainment when planning such an event but fail to plan for the worst. In the midst of booking the band, sending out invitations and securing the caterer, take time to consider event insurance. Insuring your event will provide protection in the event of the unexpected, such as bad weather or injured guests. Here are some helpful tips to get you started on your hunt for the right policy.
Event insurance typically provides coverage for event cancellation, liability, personal injury, property damage, liquor liability, etc. The two most common types of event insurance are liability insurance and cancellation insurance.

Liability Insurance

Liability insurance is the most common type of event insurance and provides coverage for injury or property damage related to your event. Event sites may have their own liability insurance, but you may want to consider your own liability coverage to protect yourself from gaps in their coverage. If you are hosting the event at your own home, check to see what is provided under your homeowner’s insurance and consider purchasing extra liability to make sure you are adequately covered. You should also be clear on if your event liability policy includes host liquor liability, which is important should alcohol-related accidents occur at your event.

Cancellation Insurance

Cancellation insurance covers expenses related to delays, rescheduling or cancellations due to unforeseen covered events. Possible scenarios covered include:

  • Weather: Inclement weather is impossible to predict months before the event when the date is likely selected. If the event is postponed due to weather, cancellation coverage can reimburse you for rescheduling costs.
  • Illness or Injury: If your event is rescheduled due to a contracted vendor getting sick or hurt, rescheduling costs can be reimbursed with cancellation coverage.
  • Vendor: If a vendor fails to deliver service, cancellation insurance may cover the loss of the deposit in addition to expenses incurred due to last-minute replacement vendors.

Ask these questions when shopping for event insurance:

  1. Is the insurance company licensed to do business in Oklahoma? You can verify anagent or licensee on the OID website under Consumer Assistance.
  2. How much will the policy cost and how much will be reimbursed after a loss?
  3. What is and is not covered by the policy? For example, reimbursements for event costs are not typically covered if the event is called off voluntarily.
  4. Do you have coverage from other policies such as homeowners or auto? If so, is the coverage adequate for your event?
  5. What are additional event coverage options? Additional options may include coverage for:
    • Military service – If an event organizer, planner or participant is in the military or active reserves and is suddenly called to duty.
    • Gifts and attire – Provides protection against theft or damage of gifts and includes stores going out of business or damage to the clothing.
    • Travel – In case you need to cancel a trip, such as the honeymoon, due to illness, bad weather or other circumstances.
    • Rented Property – If you are renting furniture or equipment for the event, additional coverage can help pay for repair or replacement costs should the rented property be damaged or destroyed.

Events such as holiday parties, graduation parties and weddings are memorable times in our lives and can be important milestones. Make sure you are prepared for unexpected losses during your next event. If you have questions or need further information about your event insurance options, contact the Oklahoma Insurance Department’s Consumer Assistance at 1-800-522-0071 or online at http://www.ok.gov/oid/.

Make Sure You’re Properly Insured for Fun in the Sun

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What are a few of your favorite summertime activities? In Oklahoma, you can find plenty of diversions to enjoy during the long days and hot weather. Weekend trips to the lake, afternoons spent poolside and summer holidays fill our free time during the sizzling months. But fun in the sun carries many risks. Before you hit the water, make sure you’re safe and that your investments are protected.

Boats and Personal Watercraft

Boats are not generally covered by homeowners or auto insurance. However, if they are, coverage limits are often low. Your homeowners policy might cover a small boat for damages, but will usually fall under special limits on certain items of personal property. It is standard for most policies to set the limit for any type of covered loss at $1,000. It should be noted that liability coverage for watercraft is excluded if the loss occurs away from the insured premises. Large boats will be excluded from your homeowners policy for both property and liability coverage. Check on a separate policy that covers both physical damage to the boat and liability. Personal watercrafts, such as Jet Skis and Wave Runners, will likely require separate policies.
Personal watercraft policies will cover bodily injury, property damage, guest passenger liability, medical payments and theft. A standard policy may include deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments. Additionally, liability limits often start at $15,000 and can be increased to $300,000, which will provide financial protection if your personal watercraft is involved in an accident. Also, check on water sports liability, which is typically included and covers risks associated with boating like waterskiing.

    To safely enjoy your time on the water, practice these safety tips:

  • Stay alert! Be aware of what is going on around you and never follow directly behind another personal watercraft. Be watchful of other watercraft, swimmers, divers, water skiers and fishermen. Eighty percent of all injuries and fatalities occur when two vessels collide with one another.
  • Learn how to perform a vessel safety check before taking to the water, which will help you navigate should you encounter problem situations. All vessels using flammable liquid as fuel are required to have the proper type, size and number of fire extinguishers on board.
  • Operator errors account for 70 percent of boating accidents. Look into taking a safety course to brush up on boating instructions.
  • No matter what activity you have planned – boating, fishing sailing, etc. – always remember to wear a life jacket every time you are on the water. Make sure your life jacket is U.S. Coast Guard-approved and fits properly. Double-check that your life jacket is appropriate for your favorite boating activities.

Pools

Pools are a great way to relax and cool down from the summer heat. But all pools, small or large, can be dangerous and should be properly insured. Owning a pool increases your liability risk, so it may be advisable to purchase additional insurance. Most homeowners policies include a minimum of $100,000 worth of liability protection. You may want to consider increasing the amount to $300,000 or $500,000. It may be worth looking into purchasing an umbrella policy to provide liability coverage above what your homeowners policy offers. It is also important to make sure you have enough coverage to replace the pool in the event of a natural disaster. Insurance carriers can deny coverage or cancel your policy if you do not follow the policy safety guidelines or do not inform the company when you install a pool. Make sure you comply with local safety standards and building codes set forth by your town or municipality, which may include installing a fence of a certain size, locks, decks and pool safety equipment. Other pool safety tips include:

  • Consider building fencing around the pool area to keep people from using the pool without your knowledge. Other safety measures can include door alarms, locks and safety covers.
  • Never leave small children unsupervised and keep toys or floats out of the pool when not in use to prevent temptation for toddlers trying to reach them.
  • In case of an emergency, know how to shut off pool filters and other mechanical devices. Keep children away from them as the suction force may injure them or cause accidental drowning.
  • Check the pool area regularly for glass bottles, toys or other potential accident hazards.
  • Keep an eye on the weather at all times. Excessive heat can cause dizziness, which can be dangerous around a pool. Have a strict “no-swim” policy for your family during rain or lightning storms.
  • Clearly post emergency numbers on the phone in the event of an accident and keep a first aid kit, floatation devices and reaching poles near the pool.

Nearly all summertime outdoor activities come with increased risks. A call to your insurance agent is always a good first step in making sure you are protecting yourself and your family. For more information, visit the Oklahoma Insurance Department online at http://www.ok.gov/oid/.

Travel Insurance Can Protect Your Summer Plans

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School’s out, days are longer and temperatures are on the rise. That means summer is nearly upon us and, for many of you, time for a vacation. Long before you hit the open road or book your flights to the beach, remember something important to add to your planning checklist: travel insurance. Here is some important to help you prepare for financial losses that can come with travel.

There are four types of travel insurance.

Research and understand the types of policies that are available to you. The four major types are: travel health insurance, medical evacuation insurance, trip cancellation insurance and property insurance.
Medical health:

  1. Medical/Health – Reimburses you for medical and emergency dental expenses caused by an illness or injury while you’re traveling. This typically does not allow for known illnesses or pre-existing conditions.
  2. Accidental Death – This coverage usually has three options:
    1. Air Flight Accident – Covers death or dismemberment during flight only.
    2. Common Carrier – Covers death or dismemberment while traveling on
    public transportation.
    3. Accidental Death – Covers death or dismemberment at any time during a
    trip.

Medical evacuation:

  1. Provides emergency transportation to a hospital near your vacation destination or to a hospital near your home.

Trip cancellation:

  1. Trip Cancellation – Reimburses you for pre-paid travel expenses if you aren’t able to take your trip because you or a family member gets sick or dies.
  2. Travel Delay – Reimburses you for pre-paid expenses if you aren’t able to take your trip because of a travel delay, such as a flight delay or cancellation.
  3. Trip Interruption – Reimburses you for pre-paid expenses if your trip is cut short because you, or a family member, become ill or die, or because of any other misfortune listed in the policy, such as bad weather, airline strikes, terrorism, bankruptcy, jury duty or fire or flood damage to your home.

Property insurance:

  1. Baggage Loss – Reimburses you for lost, stolen or damaged personal items, but doesn’t usually cover personal items that may be lost or damaged by an airline. Be sure to review the policy for property that isn’t covered and check to see if any of your items exceed the limits allowed.
  2. Rental Car Damage – Reimburses you for damage or loss to a rental vehicle, but it does not provide liability protection. If you have this coverage, you may decline the “collision damage waiver” rental car companies offer. Remember to check your auto insurance policy before purchasing this type of coverage as your current policy may already cover you if your rental car is stolen or damaged in an accident.

How much should you pay?

Costs will vary but, generally, you can expect to spend between four and 10 percent of the total trip cost. For example, if your trip costs $5,000, insurance may cost you between $200 and $500. The key is to not lack any protection, but not be excessive and unnecessary. If the cost of the policy is unrealistically low, you may also be dealing with a scam.

Don’t be afraid to ask questions when policy shopping.

Make sure you understand the specifics of what is covered and what is not. Travel policies are not all the same and the coverage will strictly adhere to the terms of the contract. Review the policy and make sure to check the list of covered reasons for canceling your trip. Ask about pre-existing conditions and age limits. Some policies cover pre-existing conditions if you buy the coverage within a certain amount of time after booking your trip and others won’t cover them at all.

Before you purchase, it is important to review the insurance policies you already have, such as life, health and homeowners insurance. Read your policies and learn what personal property and medical coverage you already have while you’re traveling. If you use a credit card to pay for the trip, check to see if there are insurance benefits.

No insurance policy can guarantee safety when you’re traveling, but the added protection to your vacation investment may afford some peace of mind and come in handy if the unexpected happens. For more insurance tips, visit the Oklahoma Insurance Department online at http://www.ok.gov/oid/ or call Consumer Assistance at 1-800-522-0071.

Five Tips to Building Retirement Security

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In today’s current economic conditions, the concept of retirement may mean different things to different people. For some, it may be many years down the road and for others, right around the corner. For most, due to current challenges of rising health care costs, changes in employee benefits and uncertainty with Social Security and Medicare, a financially secure retirement is complex and daunting. But, with planning and diligence, retirement security is not only possible, it’s attainable. This week, April 7-11, is National Retirement Planning Week (NRPW) and an excellent opportunity to get back on track and help you achieve your retirement goals. Oklahomans are encouraged to use this time to develop, review and/or revise their retirement plans. If you’re not sure where to begin, here are five tips to help get you started:

1. Review your finances, develop a budget and uncover savings.

Understanding your current financial state is the first step toward planning for a financially secure retirement. A thorough review of your finances will show you what assets you have and list all of your financial commitments. Once you have a grasp on your current state, you can develop a household budget. The goal of budgeting is to ensure that you are not outspending your income. Tracking your expenses in a budget is often enlightening and revealing of additional ways to save.

2. Add savings to your retirement accounts.

A great way to jumpstart your retirement plan is to make regular contributions to your retirement savings accounts. Employer-provided retirement savings plans, such as a 401(k)-style plan, are excellent ways to save for retirement. These plans are often taxdeferred accounts and allow you to build more quickly. Many employers also offer a contribution match. Setting up auto-contributions will help you avoid the urge to spend the money before saving.

3. Determine a target retirement age.

What is your target retirement age? As simple as this step is, determining a target retirement age will give you a goal to work toward and help you monitor progress. After deciding your goal retirement age, answer some other important questions such as, what age do you intend to start collecting Social Security benefits? Collecting Social Security before your full retirement age can permanently reduce the size of your benefit, while delaying benefits can boost your Social Security income. Setting your sights on a retirement age will help develop a holistic retirement plan, one that can include a strategy for maximizing Social Security benefits.

4. Calculate your income needs in retirement.

Calculating your income needs in retirement is important and there are many online tools to help. The Insured Retirement Institute, which leads the National Retirement Planning Coalition, offers a suite of retirement planning calculators available on irionline.org and RetireOnYourTerms.org. The Ballpark Estimate by the American Savings and Educational Council, another coalition member, is another popular tool that can help you quickly identify how much savings you may need for a comfortable retirement. You can always consider consulting a financial advisor who will have specialized expertise in helping prepare for retirement.

5. Monitor your progress and update your plan as necessary.

Achieving a financially secure retirement requires monitoring your progress and adjusting your plan to meet changing conditions. That includes repeating the abovementioned tips: consistently reviewing your finances, updating your budget, adding to your savings and making adjustments as your plans. Keep an eye on your retirement plan and your diligence will be rewarded with a financially secure retirement.
For more information on NRPW, visit http://myirionline.org/ or for insurance questions, visit the Oklahoma Insurance Department online at http://www.ok.gov/oid/.