Entries Tagged 'Personal Insurance' ↓

Summer is finally here. What sunshine-filled adventures do you have planned? Maybe they involve tents, towable pop-up campers, or luxurious motorized vehicles. You’re ready, but are you properly insured? Here are some factors to consider before wandering into the great outdoors:

Tents or gear: Your car is covered under your auto insurance policy, but the policy typically doesn’t provide coverage for personal belongings. If your tent and/or camping gear is damaged in an accident, fire or storm, auto insurance won’t cover your losses. That said, these summer essentials can be covered under renters or homeowners insurance.

Motorhomes: Motorhomes need to have the same minimum liability coverage required for any vehicle. Since risk of serious injury is greater due to a motorhome’s size, it is highly recommended you carry liability limits higher than state minimums. For physical damage to the motorhome, you’ll need comprehensive and collision coverage, just like any vehicle. Unlike standard auto policies, most insurers will provide contents coverage on motorhome policies.

Towable pop-up campers: Whenever you pull something with your vehicle, the vehicle’s liability coverage extends to the item you’re pulling. Since the risk of injury to others or property damage is higher if you’re pulling a camper, opt for the highest liability limits available.

Note that this coverage is for liability only. Physical damage coverage isn’t extended from your vehicle’s policy to whatever you’re pulling. To cover damage to your pull-behind, add specific comprehensive and collision coverage for it.

Fall is deer hunting season, meaning it’s time to hit the brakes for Bambi, and also review your auto insurance.

From September to December, deer migrate and mate, increasing chances of collisions. According to the Insurance Information Institute (III), the top month for deer-vehicle collisions is November, with October second.

Many are serious: An estimated 200 people die in deer-vehicle crashes annually. But even minor collisions will cause costly damage. One large insurer’s claim history indicates that deer hit over one million vehicles in a 12-month period – that’s one million reasons to double check your current policy to be sure you have adequate coverage.

Insurance Hunting

III says the average cost of a deer collision claim totals $2,800. Typically, animal-related damage is covered under comprehensive coverage, not collision, but only if you hit the animal. If you swerve to miss Bambi and hit another car, it becomes a collision claim.

Although the damage would still be covered under your collision coverage, collision claims are rated the same as at-fault accidents by insurers, which likely means an increase in your premiums. Comprehensive claims – unless several claims are filed around the same time period – won’t generate an increase.

If you have both coverage types, review your deductibles. Raising deductibles is a popular way to save money, but are you ready to pay $1,500 towards deer damage? Even if you answered “yes,” it’s easier to save money by avoiding deer altogether, which you can try to do by following these tips:

Fall Driving Tips

Keep your eyes open between sunset and midnight, and early morning when deer are most active.

If you see one deer, more are likely to follow.

Slow down at deer-crossing sites.

If you have no choice, hit the deer, not another vehicle or object.

Following these tips will help protect you…and hopefully, Bambi.

Even savvy car insurance customers might not be aware of all the little-known facts about car insurance claims and coverage.

1. Your insurance policy will probably cover you while you are in Canada. Driving in Canada is rarely discussed when purchasing auto insurance. Thankfully though, most insurance companies extend your same policy’s coverage while north of the border. Contact your insurer well in advance so they can give you a Canadian insurance card that complies with their regulations.
2. Your insurance policy will probably NOT cover you in Mexico. However, some companies will allow your policy to cover you up to a certain number of miles even after venturing beyond the border, but you definitely need to check first as this varies from insurer to insurer. Additionally, if you need to drive into Mexico more than your insurance company will allow, often companies will have an endorsement you can add to do so.
3. Rear-end accidents are not automatically charged to the person in back. Many people believe when a ‘back-end’ or rear accident happens, it’s always the fault of the person in the back. While this might be true in the majority of cases, it’s not always true. What if there were a person backing up in the street and hit the front end of someone who was parked or completely stopped?

When it comes to insurance, ignorance certainly isn’t bliss. In situations like these, you’ll often realize the implications of your insurance choices or lack of knowledge about your auto insurance far too late and only after something happens.

Many insurance experts recommend insuring your home at replacement cost value rather than actual cash value. And many home owners (and renters) believe it also makes sense to insure their contents at replacement cost value; your personal property is worth it, and so is your peace of mind.

To understand both forms of coverage, let’s look at their differences:

Actual Cash Value (ACV)

When you insure your home and personal belongings at ACV, your coverage reflects the current fair market value. If your home is currently valued at $300,000, then that is the amount you’d receive in a total loss claim. But, while the low premiums for ACV are attractive, rebuilding a home typically costs more than fair market value. You may be hit with penalties for being underinsured. Note that insuring your home for less than 80 percent of its value will reduce your claim benefits because your coverage is based on a depreciated market value.

Replacement Cost Value (RCV)

To avoid unexpected penalties and out-of-pocket expenses, insure your home for 100 percent of its replacement value. The premium will be more expensive, but if your home is totally or partially damaged, you’ll have peace of mind and, as important, an intact savings account as compensation.

Consider RCV for your personal belongings as well. Insurance companies will require that you actually replace the damaged items, but after your deductible, you’ll receive the full replacement value. If you have expensive personal property, consider scheduling it separately. Experts recommend you choose coverage at 200 percent of the total value of your personal property.

To determine RCV of your home, consult my office or consider conducting a professional appraisal. To make sure you’re covered no matter what, opt for Extended RCV coverage. There are requirements to meet, but when it comes to everything you own, it’s always better to safe than sorry.

While your teenager is dreaming of the open road; you’re just plain scared. But when D(rive) day arrives, nothing is more important than keeping your teen safe.

The Centers for Disease Control and Prevention report that the top cause of all teen deaths is vehicle crashes: Teens 16 to 19 years old are three times more likely to be involved in a fatal accident than someone 20 or older. These days, one of the main causes of accidents is distracted driving, thanks to cell phones and other devices. According to online magazine Laptop, research shows that “texters-and-drivers” are 23 times more likely to be involved in a crash. And teens are particularly vulnerable to the lure of the smartphone.

Thank goodness you can keep your teen safe and paying attention while driving. These apps make it easy…and fun. BTW, don’t miss the Gas Buddy app, for forgetful teens (and their parents) who are always running out of gas.

Drive Scribe

While in motion, this app stops texts, calls, Internet use and keeps track of vehicle speed. To delight your teen, safe driving will earn him or her points, which can be used to buy gift cards.

DriveSafe.ly Pro

This clever app reads text and emails out loud so your teen can keep both hands on the wheel. An option is available to handle replies, which are sent automatically while driving. The DriveSafe.ly Pro feature that is especially popular with teen drivers is its ability to read text message shorthand. LOL

So you’re going on vacation. Great! But don’t forget, if you’re renting a car, you still need insurance protection. Don’t wait to get to the checkout counter to think about coverage; you may be pressured into purchasing unnecessary rental insurance.

If you have comprehensive auto insurance, you might already have car rental coverage, but there could be stipulations. Play it safe; check your personal policy first.

Insurance companies may provide rental coverage only up to a certain amount. If the rental car is totaled, your policy may only reimburse the rental company for actual cash value. Many rental car contracts state that reimbursement should be for the full retail value.

While you’re reviewing contracts, ask your insurance agent if possible loss of use is covered. If your insurance policy includes a Use of Non-Owned Cars endorsement, you should be covered, but it’s important to know the coverage limits. If the rental company makes a claim for diminished value, your personal policy will not cover this.

Driver coverage is an important consideration, especially if you’re traveling out of town. Anyone listed on your policy should be covered, but for others be sure to check first.

If you’re traveling abroad and don’t have a comprehensive policy or a high deductible plan, you may need additional coverage. Many agencies require a credit card for purchase and, depending on the card, your rental may be covered. If not, bite the bullet and purchase the rental insurance.

It’s better to be safe than sorry, especially on vacation.

As summer draws near and temperatures warm, it’s almost overwhelmingly tempting to jump into summer activities. But before you start enjoying the great outdoors again, examine your homeowners’ policy to make sure it covers the hazards that summer can bring. Updating your insurance now will ensure you have a relaxing summer ahead.

BBQ

As the thermometer rises, you can almost hear the sizzle of the grill. Place it too close to your home, and you might hear the sizzle of your house.

Follow proper safety precautions and make sure your policy covers not only your house, but also other freestanding structures.

Renovations

Now that the winter chill has passed, you can finally put that new roof on your garage. Or maybe it’s time for that addition you’ve been saving for. If you’re making substantial renovations to your home, it likely will drive up the replacement cost. Make sure your homeowners’ insurance policy is updated accordingly.

Pools

Summer means pool time. But with 3,000 plus accidental drownings a year, your pool could be a potential hazard. If you have a pool, be sure to notify your insurance company. Your premiums will increase, but you’ll be protected. Ensure your liability coverage covers all situations, even if someone is in your pool without your permission.

Trampolines

Standard homeowners’ policies come with liability coverage, but they may not extend to trampolines. Many insurers view trampolines as lawsuits in the making and exclude them.

Check your insurance policy to see if there are restrictions on trampolines before making a purchase.

Pets

Summer may seem like a great time to make an addition to your family.

But if you buy a new puppy, don’t forget to tell your insurance company. If your dog bites someone, your liability insurance will cover it … but only if your dog is listed on the policy.

Consumers are often frustrated by the amount of insurance their mortgage company requires them to carry on their home.

Sometimes that amount is greater than the home’s market value; often it’s more than the amount remaining on the mortgage.

But many insurers still insist your home be insured for at least 80% of its replacement cost. Not its market value.

Here is the reasoning behind this and how it can help you.

First, the homeowners’ policy will replace – not just repair – damaged property. That means hardwood floors will be replaced with hardwood, not laminate, as it might be without this replacement clause.

Second, 96% percent of all homeowners’ losses are partial; only 4% of homes suffer a total loss.

Next, think of insurance as a big pool of money.

All insurance buyers put their premiums into this pool, and the insurance company invests the money and uses it to pay claims and expenses.

Insurers know if they collect premiums on limits of insurance equal to 80% of replacement cost, they will have enough money in the pool to pay full replacement cost for partial losses.

So if you don’t carry an amount of insurance that equals 80% of your home’s replacement cost, you will be penalized in the event of a partial loss.

Here is the formula used to calculate a partial payment:
(Amount of Insurance Carried / Amount of Insurance Required) x Amount of Loss

For example; your home has a replacement cost of $500,000. However, you must carry at least $400,000 in coverage (80% of replacement cost).

You owe only $300,000 on the mortgage, so that’s all you decide to carry. However, this is only 75% of the $400,000 you require.

If a fire causes $50,000 in damage you will receive only a 75% ($37,500) payment for this partial loss because you are carrying only 75% of the required amount.

Be advised there are some insurance companies that require 100% insurance to replacement cost value.

Every day we’re bombarded with advertising for auto insurance. According to a recent U.S. survey, car insurers alone spent $5.3 billion on advertising in 2011 – an increase of 15% over 2010.

Why? The industry is changing. Vehicle registrations are down, and most North Americans now keep their cars longer due to the economy. Many are even dropping physical damage coverage. And insurance companies are feeling the pinch.

A large number of auto insurers are competing intensely for your premium dollar. The majority of auto premiums go to the top insurance companies, and particularly if you have a stellar driving record, these insurers want your business badly.

To get it, most provide quotes online. Shopping online for auto coverage may seem like a good alternative; you can receive a quote in less than five minutes. However, unbiased experts (those not involved in the auto insurance industry) offer the following cautions:

First, to obtain an accurate quote you must be prepared to give out sensitive information, such as your Social Security number, online.

Second, you may not get the details you need to compare policies from one company to another. Often coverage options are vague, using terms like “standard coverage,” which does not fully explain what you will receive for your hard-earned premium dollar.

Last, and probably most important to the consumer, you usually aren’t provided with information on how the insurance company you choose online will handle a claim.

My office can provide you with all the same information websites offer. And more. Instead of hours of Web searching and DIY comparisons, why not discuss your individual circumstances with your insurance professional, who can tailor coverage to your needs?

Auto insurance is more than a commodity. It protects your family from liability arising from the use of your car. Why buy something that important from an unknown source?

Whether you’re taking off for a holiday in the sun or a visit with relatives out of town, here’s something you don’t want to forget. An unoccupied home is subject to many hazards, so to avoid an insurance claim, take preventive measures before you leave. Below are some things to do to protect your house while you’re gone:

• Ask a neighbor to watch your home for damage or suspicious activity. Make sure you leave a spare key and a phone number where you can be reached in an emergency.
• If you live in one of the cooler parts of the country, keep the heat on in your home in winter to avoid frozen pipes. Letting pipes drip slightly in freezing weather can help prevent them from bursting.
• Unplug electrical appliances and computer equipment to protect against power surges. If you use a surge protector, ensure it’s sufficient.
• Stop mail delivery and newspapers. Nothing shouts “We’re away” like papers piling up on your porch.
• If your home is in or near a flood zone, put important papers and electronics out of harm’s way.
• Trim trees and bushes from doorways and windows. Potential thieves will feel exposed. Also trimming branches may prevent wind damage to your property and others’. You can be held responsible if your neighbors allege that your lack of maintenance caused damage to their property.
• Ensure you purchase enough insurance to cover any possible claim. No one expects to have a loss, but if you do, you want to be adequately protected.