The document discusses the challenges individuals face in affording insurance, highlighting a court case involving a woman penalized for driving without insurance due to financial constraints. It presents the story of Sharon and Vince La Vigna, who lost their home to arson after lapsing on their homeowners' insurance due to unaffordability, illustrating the broader issue of insurance accessibility for many Americans. The document also offers tips on how to reduce insurance premiums and emphasizes the importance of being insured, even in tough economic times.

1. Westhill Insurance Consulting

2. Sam was in court the other day, and while waiting for his case to get called,
he watched a woman who was cited for driving without insurance talk to
the judge.
The judge asked her if she had auto insurance and she said she did. "Did
you have insurance on the day you were cited?"
"No," she replied.
"Well," he said, "the law is clear. You have to pay a fine plus court costs."
The total came to $275. The judge gave her 30 days to pay it. She meekly
asked if she could have more time, or pay over time. The judge extended
the payment term to 60 days.
But what was clear to Sam is that she didn't have insurance because she
couldn't afford it. Not because she didn't want to have it. It was also clear
that this woman had no idea how she would be able to afford the court
costs she had just been assessed. Sixty days might have just as well been
six minutes.

3. Almost all states require drivers to carry car insurance that at least
covers the person you hit. But states don't generally dictate whether
you need homeowners' insurance. If you're buying a home and need
a mortgage, the mortgage company will require you to carry a
homeowners' policy for at least as much as the mortgage amount.
While you can't close on your mortgage without proof of insurance,
many homeowners' (who aren't paying premiums monthly along with
their real estate property taxes into a tax and insurance escrow)
allow their policies to lapse. It isn't because they don't want to have
homeowners' insurance. It's because they either forget to make the
payments, or more typically, they can't afford the premiums.
Ilyce recently wrote about Sharon and Vince La Vigna, whose house
was torched by a San Jose-based serial arsonist, in the early
morning hours of January 11, 2014. Sharon was pulled from the fire
by neighbors, just minutes before the roof collapsed.

4. The family didn't have homeowners' insurance. A few years earlier, Sharon
lost her job. Vince is disabled, and they were scraping by on Social
Security. Sharon and Vince had been making monthly payments to their
insurance company when the company switched to an annual contract.
Sharon contacted her homeowners' insurance company and asked if she
could pay in installments. The company said no, dropped her and the
house was uninsured. Sharon and Vince had been looking for another
affordable policy, hoping for the best.
Instead, an arsonist torched their home, and they lost everything.
Ilyce has received email from many people who want to help, and a fund
has been established for those who are interested through YouCaring.com.
But there have been plenty of readers who want to know why we aren't
tougher on homeowners who let insurance policies lapse. As several
emails put it, "Didn't they get what they deserve?"

5. We think that's a harsh attitude, as the vast majority of Americans struggle to
get out from under the worst recession in 80 years. There are still three people
unemployed for every job that's available. Many seniors who lost jobs, like
Sharon, can't find replacement jobs that pay anything close to what they used
to earn.
Paying over time has become the way many Americans afford the everyday
costs of life, not even the extras like vacations. Homeowners' insurance, health
insurance and auto insurance premiums are paid for monthly, or sometimes biweekly -- whatever chunks are affordable.
When your home is paid off, as the La Vigna's home was, homeowners'
insurance is especially important. If you can't afford the coverage you have,
you can try the following tips to lower your premiums or find an alternative
policy that may be more affordable: Insure only the house and contents, not
the land on which it sits; ask for a discount if you're a non-smoker, a senior or
have home security devices; raise your deductible (even a $10,000 deductible
is better than a $300,000 loss); and, bundle your car or life insurance policies
together with your homeowners' policy and buy it from the same insurance
company.

6. Sharon and Vince are now living with their son. In the past few
days, an arrest was made in the case. It's not like having their
house restored, but it's something.
In the case of the uninsured driver, she could reduce her costs
by raising her deductible or, if her car was old, by dropping
that portion of the insurance coverage relating to her car
coverage but keeping the liability portion. Sometimes having
that coverage and driving is better than driving without
insurance.
http://www.westhillinsuranceconsulting.com

7. Sharon and Vince are now living with their son. In the past few
days, an arrest was made in the case. It's not like having their
house restored, but it's something.
In the case of the uninsured driver, she could reduce her costs
by raising her deductible or, if her car was old, by dropping
that portion of the insurance coverage relating to her car
coverage but keeping the liability portion. Sometimes having
that coverage and driving is better than driving without
insurance.
http://www.westhillinsuranceconsulting.com