Personal Perspective

When it comes to buy Homeowners insurance, it’s easy to become confused by the wide variety of deductibles out there. If you’re stressing out over picking the right deductible, these basic guidelines can help you make a wise decision:

Homeowners often choose a deductible on their property as a percentage of its “insured value.” If this value is $100,000 and you choose a 2% deductible, you would pay the first $2,000 of any claim. Bear in mind that the dollar value of this percentage deductible will vary with any change in the insured value. The higher this value, the higher your deductible.

A split deductible gives homeowners the option of selecting a dollar value for different types of hazards. For example, you might choose to pay the first $500 of a fire damage claim, but only the first $300 for a loss from vandalism or theft. This lets you set priorities based on what types of damages you believe are most likely to occur. For example, if you live in an area that’s prone to fire or hailstorms, you might select a higher deductible for these potential hazards.

The size of the deductible depends on your circumstances and the type of policy you purchase. Choosing a higher deductible will reduce your premiums significantly. If you’re confident that you can afford small-scale claims (between $250 and $500), increasing your deductible will mean that you’ll pay a far lower premium that will coverage big-ticket losses (say, $1,000 and up).

Our Personal Insurance specialists would be happy to offer their advice on tailoring Homeowners deductibles to your needs. No charge, of course.

Your credit scores help determine what you’ll pay for an auto loan – and Auto insurance.

Studies by state regulators, universities, and independent auditors show that such credit information as how often you’ve paid a bill more than 60 days late can predict your probability of making an Auto claim and its cost. Insurance companies use this data to help set premiums.

However, one study found that 96% of Americans don’t review their credit report once a year, even when they can do so for free. According to the Federal Trade Commission, one in four consumers had errors on their reports that could affect credit scores – and 5% of these mistakes could mean that they’re paying more than they should for Auto insurance and financing.

To make sure that your credit report is accurate, improve your score, and keep your Auto premiums down, experts recommend these guidelines:

• Order free reports from the three credit reporting agencies (Experian, TransUnion and Equifax) through AnnualCreditReport.com , one every four months. Correct any errors immediately.
• Pay your bills on time. Payment history counts for 35% of your score.
• Keep your credit card balances below 20% of available credit.
• Monitor your credit history. Because credit bureaus look at how long you’ve had an open and active line of credit, the worst thing you can do for your credit score is to close credit card accounts. Not only do you lose your credit history for that card, but your overall utilization ratio goes up.
• Don’t open new accounts in quick succession. This represents a greater risk, especially for people who don’t have a long credit history.

After a dispute with a local home contracting firm, Jane Perez of Fairfax VA posted reviews on Yelp and Angie’s List accusing the contractor of, among other things, damaging her home.

The contractor filed a $750,000 lawsuit against Perez alleging defamation. Although the suit hasn’t been settled, it serves as a valuable reminder: If you write a negative review about a business, don’t be surprised if you face a lawsuit – and make sure that your insurance protects you.

Such suits are becoming increasingly common, as people use sites such as Yelp to voice their gripes about everything from restaurants to dentists. Although many defamation lawsuits have merit, others – called “strategic lawsuits against public participations (SLAPPs) – are being filed primarily to silence consumer criticism. While some states have anti-SLAPP laws, they’re often weak, which encourages plaintiff to sue.

If you get SLAPPed, insurance might not come to the rescue. Liability coverage under the basic Homeowners policy does not pay legal costs for defending lawsuits for defamation of character, slander, and copyright violation claims. However, for a few dollars, you can purchase a Personal Injury Liability endorsement that covers these exposures. Some Umbrella Liability and high-end Homeowners policies include Personal Injury coverage.

But just because you have coverage, don’t start blogging, tweeting, and posting whatever you want. Intent matters; so if you knew what you were doing was wrong, your policy might not cover you. Although you have a legal right to share your personal experiences as a consumer, use common sense when writing reviews: Be accurate, avoid embellishment and generalizations, and describe only what you know from personal knowledge.

P.S. If you’d like to post a review of your experiences with our agency, please feel free.

A recent nationwide survey found that only 34% of tenants carry a Renters policy which means that most renters are taking a financial gamble with all of their belongings.

The three leading reasons that respondents gave for not buying Renters insurance show that many people don’t understand what this policy covers – and doesn’t cover:

1. Nearly three in five (57%) felt that their rented home has such effective security that they don’t need protection against losses from theft.
   However, without a Renters policy, tenants still remain highly vulnerable to other risks. A fire could damage or destroy their possessions, requiring replacement at a high cost. An accident might leave the unit temporarily unlivable, costing hundreds or thousands in living expenses. An injury to a visitor on the premises could result in costly medical bills – not to mention a lawsuit. The typical Contents policy will provide protection against these losses – and a wide variety of other risks.
2. More than half (52%) believed that they couldn’t afford the coverage. Among respondents, 21% estimated the annual premium at $1,000 or higher, while another 60% pegged the cost as $250 a year or more.
   However, according to the National Association of Insurance Commissioners (NAIC), the average Renters policy costs only around $185 a year.
3. Nearly half (48%) thought that the landlord already had coverage.
   Although the landlord carries insurance in the building itself, the policy does not cover risks to tenants’ property and liability.

For more information on how Renters insurance can protect you, feel free to get in touch with us.

Your Auto insurance rates are based on a variety of factors such as your driving record, mileage, the car you drive and your age.

Rates are highest for drivers in their teens and early 20, tend to fall for those aged 30 to 60-something, and then start climbing again around age 70. Although drivers in this age range tend to drive less and are more mature, their vision and reflexes are declining. They’re also more likely to be injured in an accident than their younger counterparts, and to suffer more severely because they’re physically weaker. Also. They often drive smaller cars, which are more vulnerable to damage.

Here are five ways that senior drivers can keep their Auto insurance rates affordable:

1. Update your mileage. You can get a discount of 5% to 10% if you no longer commute or drive long distances.
2. Use a telematics device. A usage-based or pay-as-you-go Auto insurance program can reduce premiums by 5% to as much as 40%.
3. Take a class. Most states require Auto insurers to offer “mature drivers” (who can be as young as 55) a discount of 5% to 15% for completing an accident-prevention course.
4. Exclude a driver. In some states, you might be able to drop coverage on a driver who no longer gets behind the wheel.
5. Make your car safer. Some insurance companies offer discounts for anti-theft devices, airbags and anti-lock brakes.

Bear in mind that drivers can use some of these methods at any age and save on Auto insurance by raising their deductible or reducing coverage.

To make sure you get the protection you need at a cost you can afford, just give us a call.

If you rent all or part of your property to others, it makes sense to buy this special type of Homeowners insurance. A Landlord policy will cover damage to the building and your belongings, and protect you against potentially catastrophic legal and medical cost suits from lawsuits by people injured on your property.

If the property is mortgaged, the lender will usually require that you buy enough coverage to pay off the outstanding loan balance.

Above this level, you can tailor your Landlord coverage to your needs and budget in a number of ways:

1. Changing the deductible (which usually ranges from $100 to 5% of the building coverage).
2. Selecting the type of losses covered, by buying either “comprehensive” coverage – which pays for losses from all causes, unless specifically excluded – or on a “named perils” basis, which covers only losses from a listed number of causes.
3. Choosing the type of reimbursement – either “actual cash value” (the value of your property, less depreciation) or the more expensive “replacement value.”
4. Adding coverage to provide reimbursement for loss of rental income during a period when the property is uninhabitable.
5. Covering increased liability risks from dealing with tenants, such as legal fees, libel, slander, and discrimination claims.

In making your decision, assess the benefits of potential premium savings against the risk of paying for hefty classes.

Our Homeowners’ Insurance specialists will be happy to evaluate your situation and recommend a comprehensive, cost effective solution. Just get in touch with us at any time.

You pull into the grocery store parking lot to pick up a few snacks, and park. As you head for the door, you push a button on your keyless remote to lock it. You don’t hear that faint chirp, but you’re in a hurry. Fifteen minutes later, you discover that your car is gone. Welcome to the world of 21st-century auto theft!

On the surface, things appear to be improving. Vehicle thefts fell 3.3% nationwide in 2011 (the most recent data) for the eighth straight year. However, auto theft still costs the nation an estimated $5.8 billion a year, thanks to streetwise thugs who feed chop shops and supply lucrative international black markets. These days, car thieves are becoming smarter, more tech-savvy, and harder than ever to stop.

Anyone can go to a home-improvement store and buy a $20 device that jams the remote keyless entry transmitter on a vehicle. If you aren’t paying attention, you walk away from your vehicle, press the button on the remote, and assume that it locks. However, a thief might be two cars over in the parking lot, punching a button to block the signal. The vehicle doesn’t lock, and the thief can take your laptop, portable GPS, or whatever else is inside. With enough time, he can even steal the vehicle!

To guard against jammers, pay attention to your surroundings and make sure your car doors do indeed lock when you press the button. Listen for the click or chirp, or look for the quick flash of lights that confirmations locking on most cars. If the vehicle doesn’t lock, try again. However, if locking doesn’t work on the second attempt – or if you see someone lurking nearby – move your car to a different spot.

An ounce of prevention…

Of all Homeowners insurance losses, those from water damage are among the most common. Many people often don’t consider the potential risks in their own homes until it’s too late.

To minimize hazards that can cause water damage claims, we’d like to recommend these steps:

• Check for leaks. Periodically inspect the area around the refrigerator, washer, dishwasher, water heater, sinks, and toilets for drips, puddles, and discolored, warped, or soft flooring.
• Pay attention to your water bill. Monthly fluctuations could indicate a leak.
• Periodically check your water pressure. Water losses often occur due to excessive water pressure. Buy a pressure gauge at your local hardware store, and hook it up to a hose bib. If it’s above 65 psi, install a water pressure regulator.
• Before you go on vacation, take precautions. If temperatures in your area could dip below freezing, make sure that any exposed pipes are insulated, turn off the water supply to individual fixtures, and turn your furnace to low so that the pipes will stay warm enough to avoid bursting.

If you need to file a claim, follow these guidelines:

• Stop the source of the water by turning off the water main.
• Call your insurance company immediately. Most companies have staff 24/7 to help you set appointments with contractors who can dry out your house. Your insurer will also send an adjuster to assess the damage.
• Don’t start any major repair efforts until the adjuster has been to your home!
• Determine what was lost and document it. Even if things were ruined, don’t throw them away. Keep pieces of the damaged floor or ceiling, along with any valuable personal property, such as electronics or furniture. At a minimum, take photos or video of the damage.

For more information, give us a call at any time.

Its tax time again. As you travel down the bumpy road of deductions, you might be able to write off some of your car expenses, including a percentage of your insurance premiums:

• Business use of your car

• If you’re self employed and drive your vehicle for work, or if you have a job and use the car for work-related reasons without reimbursement, you might be able to deduct part of your premium.

  Determine the percentage of time that you use the vehicle for work and then base your deduction for auto expenses (including insurance premiums, as well as gas, oil, repairs, registration fees, lease payments, depreciation, parking and toll fees) on this percentage. To qualify for these deductions, they’ll need to total more than 2% of your adjusted gross income.

  The alternative is to take the standard business mileage deduction (currently 55.5¢ a mile).

• Loss, theft, or damage
  • You may be able to claim a loss deduction if your car is stolen, damaged, or totaled in an accident, provided your policy doesn’t reimburse you for the full loss. You may also be able to write off your insurance deductible as part of a theft or casualty loss. However, you can take the deduction only if an individual loss comes to at least $100 and the total loss for the year tops 10% of gross income.

Be sure to keep all relevant receipts, including expenses and police reports, in case the IRS or insurance company asks for verification.

If you have any questions about getting the most mileage out of possible Auto insurance deductions, feel free to get in touch with the specialists at our agency. As always, we’re here to help!

Engineers, firefighters, lawyers, teachers, and police officers all have one thing in common: they qualify for Auto insurance discounts with some insurers who have found that people in certain fields tend to be less risky drivers than those in other occupations.

A number of insurance companies offer discounts to those in a variety of professions – everything from architects, CPAs, and college professors through librarians, military personnel, and pilots, to physicians, registered nurses, and scientists.

Here’s why: although practicing architecture or flying a plane doesn’t necessarily make a driver more responsible, insurance underwriters don’t have to prove cause and effect when setting rates. They need only show a relationship between these rating factors and risk.

A variety of factors can come into play in determining discounts. One Auto insurance company offers up to a 5 % discount to first responders, such as firefighters, police officers, emergency medical technicians and paramedics. Because these people tend to work in the communities where they live, they probably don’t commute long distances. First responders might speed down the road in emergencies, but not in their own vehicles, and they tend not to work from 9 to 5 – which means that they’re at lower risk for accidents.

Discounts vary by occupation, insurance company, and state. Some companies offer discounts for a long list of occupations and professions, while others provide them to only a few, or none at all. Some jobs receive larger discounts than others.

Rules for discounts also vary by field. To qualify for one company’s discount, health care providers must have a license to practice, as well as a degree. However, policyholders who have earned at least a bachelor in engineering, math, or science qualify for an 18% discount, even if they work in other fields.

Your occupation or profession might well entitle you to a substantial discount on your Auto insurance – even if you’re retired. For more information, please get in touch with us.