#underinsurance

Insurance is a vital part of being a landlord, protecting you and your property against a number of risks including theft, damage and even tenant injury, in cases where a claim is necessary. However, a shocking number of landlords are finding that they are underinsured when it comes to their policy and often accidentally. From incorrect valuations to changes in economic inflation or even the cost…

Underinsurance refers to an inadequate insurance policy. Even though a good insurance policy will not prevent any havoc life, it must make financial consequences more easily borne. However, underinsurance can make enrollee be responsible for large financial costs if there is a serious event. Whether it’s a damaged house by a storm or fire, or an insured person experiencing serious illness or an…

Underinsurance as a Persistent Driver of Cross-Border Antibiotic Supply in U.S. Border Communities

Cross-border acquisition of drugs such as antibiotics has long been a practice in US communities bordering Mexico, and a lack of sufficient insurance is one of the drivers of this trend, according to a recent study. In the area surrounding the nearly 2,000 miles of border along the United States and Mexico, cross-border health care has long been an option that US border residents, especially…

Footnotes:

1.) http://www.commonwealthfund.org/publications/blog/2018/apr/health-coverage-erosion states that the current rate of uninsurance among the 19-64 age group is 15.5%, and that an additional 5% of the insured in that age group are projected to drop their coverage in 2019. 100% total - 15.5% uninsured = 84.5% insured 5% * 84.5% = 4.2% of the total 19-64 age group will lose insurance in 2019. Combine with the current 15.5% uninsured to get 19.7% total uninsured in 2019.

2.) http://annals.org/aim/article-abstract/1867050/changes-mortality-after-massachusetts-health-care-reform-quasi-experimental-study

3.) https://en.wikipedia.org/wiki/Demography_of_the_United_States The current population of the US is estimated at 327,589,916 with about 58.4% of that falling into the 21-64 age group. I will therefore approximate the 19-64 age group (see footnote 1 above) as 60% of the population. 327,589,916 total people * 60% in age group * 19.7% uninsured * 1 death / 830 uninsured = 46,652 deaths per year, which I have rounded down to 46,000. Note that this excludes seniors (who are covered under Medicare), and excludes children (only because I don’t have the stats handy for children).

4.) https://www.cdc.gov/nchs/fastats/deaths.htm It should be noted that there is absolutely overlap between these top ten as reported by the CDC and the 46,000 that I’m attributing to uninsurance, and I have no way of determining the magnitude of this overlap. However, the CDC does not track uninsurance as a cause of death, so if anything, the overlap would result in us subtracting deaths from causes 1-10 - those who would have survived heart disease, cancer, etc if they’d had insurance - so I’m actually being conservative here by ranking uninsurance as cause “#9.5”.

Did you know...you have a line item on your car insurance called "uninsured motorist" or "underinsured motorist?" Every policy has this - even the liability policies.

What does it do?

Well...it is really a critical benefit. If you are traveling along and are hit by a driver with no insurance, or only low limits (remember, in Virginia a drivefr can have as little as $25,000 coverage!), your policy can kick in to pay for your injuries under the underinsurance provisions.

Underinsurance limits mirror your actual liability limits. This means that your policy will only have available to YOU what you have available to OTHERS. If your liability limit is $50,000 - underinsurance is only up to that amount.

By way of example - let's say that you have $100,000 in coverage. You are hit by an individual with $25,000 limits and you have $30,000 in medical bills. WOW. In such a scenario, the other driver's insurance will usually be willing to pay out limits ($25,000) and your insurance will pick up from there, up to $100,000.

Check you insurance coverages. Make sure you have as much as you can reasonably afford - not just for others, but to protect yourself and your family.

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