As you well know, our Government plans to bailout a couple companies that shouldn't be helped because of the lack of conscience as well as respect to the American public. For some reason the people that represent us think that we are dumb.
Hello! my name is Juan Luengo, I'm a small business owner and my blog today will be dedicated to help people who need a bit of guidance. First off, I would like to say, do not panic because our economy is going to recover sooner rather than later but it's going to take some time. Remember that our economic system was built on consumption, meaning that the American public is still going to go out and buy but with moderation. Having said that, it took to this point a so called "crisis" for people to realize that they cannot spend what they cannot afford!
Many talk about credit drying up, I don't buy that for a second. Just because people are not buying homes that have inflated or fictitious prices doesn't mean that the government is not going to change the rules of the game later on to help the economy. Prices of homes will come down a bit more, congress will approve a law that will allow people to purchase homes at a reasonable price and the consumer will definitely buy because it's more affordable (and regulated). This measure will attract foreign investors, especially Europeans because they can get more out of the Dollar from the Euro.
In the meantime, protect your assests and most importantly your family. Through these tough times remember that you can replace articles but you cannot replace the person(s) that you love.
As an insurance agent, I recommend that you do the following:
1. Do an inventory of the articles that you have at home, take pictures or video, organize all your receipts and store them in a place where they are not going to be harmed (like a safe deposit box).
2. Appraise your house and compare it to the reconstruction cost of your insurance policy.
3. Go over your homeowner's policy to make sure that in the event of the unexpected you are covered. Make sure you look for: (a) Reconstruction cost of your home - You need to find out whether your house is covered at 80% or 100%. (b) You need to find out how much your insurance company is going to pay for you and your family to stay in a hotel or supplemental home 'til your home is reconstructed in the event of a fire, hurricane, tornado (This is called Loss of Use) (c) Take a look at your deductible to see if you can afford it.
In my next blog I am going to talk more in debt about my three points. If you have any questions please feel free to contact me.
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