Personal Perspective

Do you have the right amount of insurance on your home? To begin with, your Homeowners policy should have coverage for at least 80% of “replacement cost” — the amount needed to repair or replace damage to the building and furnishings with items of like kind and quality. Some insurance companies require coverage of 90% or more under a “guaranteed replacement cost option,” which will pay for replacing your home without depreciation and often without a maximum reconstruction payment.

Unfortunately, all too many homes are underinsured. Dwellings insured for long periods with the same company might have nowhere enough coverage, due to increased building costs, remodeling, or improvements. If your home is underinsured, not only will you lack full protection for total losses, but you might also lack full protection for smaller losses (under the “coinsurance clause”).

On the other hand, many homes are over-insured. Home mortgage companies often require homeowners to buy insurance at least equal to the balance of the mortgage — which is often far higher than the replacement cost of the dwelling. If that’s the case, meeting this requirement would mean buying more coverage than needed.

Don’t make the mistake of insuring your home for its market value — which, in most cases, does not mean replacement cost. For example, market value also reflects both the cost of the building’s foundation and the underlying value of the land, which usually remain unchanged if your house needs to be rebuilt.

Our insurance professionals would be happy to offer advice on determining the proper replacement cost value and coverage amount on your home. Just call or e-mail us.

You’ve spent hours, days or even weeks, making your jewelry choices — not to mention paying thousands of dollars on your final purchase — so why fall short when it comes to finding the right coverage for your jewels? Getting the appropriate protection is easy; you just need to understand what your Homeowners insurance will cover.

The standard HO-3 policy provides only $1,000 worth of coverage for a single item of jewelry and $1,500 for your entire collection. For example, if you lost your $6,500 engagement ring, a pair of $500 earrings ,and a $1,000 class ring, you would receive a reimbursement of only $1,000, not the actual value of $8,000. So be sure you’re protected by extra insurance. The cost is minimal compared to the risk of losing expensive jewelry and being unable to replace it.

You might consider a stand-alone policy that offers broader coverage than the typical Homeowners policy. For instance, it covers “mysterious disappearance” (when you lose jewelry and have no clue where it went); and “pairs and sets” (which buys you a new set of earrings even if you lost only one).

If you have highly valuable items of jewelry, you might also take out a “rider”(separate coverage) on them. Keep in mind that, to obtain additional coverage, your insurance company will require you to have a professional appraisal to set an objective value for your property, which might be significantly higher or lower than what you think it’s worth!

For more information on insuring your valued jewelry, please feel free to get in touch with our insurance professionals.

Many people don’t think they have a lot of value in their personal property. Sure, there’s the big-screen TV, laptop or tablet computer, and maybe the home theater system, but the rest is just clothes, furniture, tools, dishes, and stuff. Most of it will probably end up in the garbage or at a garage sale.

However, what we as insurance agents learn is that after a loss (when policyholders compile a list of their damaged and destroyed property and what it would take to replace it) they often find the cost stunning. We don’t want you to discover that you were underinsured, especially when it’s too late.

The reasons for this miscalculation might come down to the fact that most of us acquire our personal items gradually, a little bit here and a little bit there. In contrast, the items we know to be valuable are usually those whose purchase hits us at one time — the big-ticket television or computer, for example. Add up all those “little” expenditures and the chances are that your possessions are worth a lot more than you think.

What to do? Sit down and run a “mock loss” drill with your family. First, write down what you estimate your personal property to be worth. Now imagine that everything you own has been destroyed — and you just happen to have a complete inventory and picture or video of every single item (this should be easy to do because you can walk through the house and see everything).

Once you have your “lost property” list, start adding up the values. If you’re not sure, check store ads, catalogues, and Web sites. Be sure to count all those spoons and shirts, every blouse and toy, and each knick-knack and tool. Some of them might be old. However, if you’re counting on your insurance to replace them, calculate the value at what each item would cost today, if you had to drive a truck to the mall and replace everything at once.

Once you have your total, compare it with your original estimate. Shocked? One Virginia couple estimated their property values to be approximately $100,000. After a total fire loss, they tallied their possessions. To quote the wife, “I stopped counting at $300,000.” Their insurance coverage provided only $109,500.

Call us with your total, and let’s make sure your current insurance covers the real value of your possession. Do it now, before you suffer a serious real loss!

A consumer survey by a national insurance organization warmed our hearts — and warned us to keep our focus where it belongs: Meeting your insurance and protection needs.

In the study, 95% of respondents said they wanted insurance agents to offer expert counsel. Some 92% also said it was important that their agent handle all of their insurance needs. Three out of four believed that it was important for their agent to contact them regularly for a coverage review. More than nine in ten (92%) want all of this FROM an agent in their community, with a local office to visit for sales and service.

Wow! That’s quite a list. Our response? We have good news and great news. The good news is that we hear you, and we’re pleased to see how many consumers realize the importance of their insurance protection — and the agent who provides it — to their peace of mind and security.

What’s the great news? We totally agree with all of your preferences and we’re dedicated to delivering what you want, the way you want it. Why not let us prove it? If you’re a client, tell us how we’re doing. If there’s a shortfall in our goal to provide excellent service, let one of us know immediately and we’ll close that gap promptly.

If you’re not a client of our agency, ask your friends about us. Better yet, give us a call or come by to visit. We’ll be glad to help.

Everyone knows that taking good care of your car is good idea. A well-maintained vehicle is safer, more dependable, and more valuable. However, did you know that careful maintenance can also save you money on Auto insurance?

For example, experts recommend replacing your wiper blades every 6,000 miles or six months. If your wipers leave streaks and smears, you’re ready for a replacement set. But also consider how unsafe it is to drive your car without clear vision. Every year motorists have accidents because they fail to see oncoming traffic or a car that stops in front of them.

While you’re thinking about a clear windshield, what about that nonfunctioning defroster you’ve been meaning to fix.

Don’t forget about seat belts. Thousands of vehicle occupants every year suffer injuries because they don’t wear their belts. Are all of your belts functioning properly — even those in the back seat? Not only are unbelted rear seat passengers highly susceptible to injury, but 80% of fatalities among front-seat passengers wearing seat belts resulted from collisions with unbelted back seat passengers, according to a University of Tokyo study.

Taking preventative maintenance measures such as these, together with safe driving habits, will help curb highway accidents, reducing injuries and saving lives –not to mention lowering the number (and cost) of Auto coverage claims. That’s why insurance companies offer premium credits to drivers who take care of their vehicles. For more information on saving money by keeping your car safe, just give us a call.

It begins innocently enough. A hard day at work. A stop to relax on the way home with friends. A couple of drinks. Then the drive home – but you never get there.

Every year police arrest more than 1 million people for driving under the influence (DUI). If all they get is a ticket, they’re lucky. According to the National Highway Traffic Safety Administration (NHTSA), 10,228 Americans died in drunk driving accidents during 2010 (accounting for 31% of all traffic fatalities in that year). The good news: Annual drunk-driving fatalities have fallen by more than half from 21,113 in 1982, the year that NHTSA began keeping statistics). Thousands more suffered injuries – some permanently disabling.

That’s quite a price to pay for a few drinks. However, many drunk drivers were “fortunate” enough to only get a ticket. No problem? That seems to be what thousands of repeat offenders think. Instead of thanking their lucky stars that they caught a break and swearing never to put themselves behind the wheel after drinking again, they go right back to their old habits.

That’s one reason more and more states are increasing the penalties for DUI, regardless of whether there was an accident. These include higher fines, loss of driving privileges, mandatory attendance at alcohol-treatment programs, and/or jail time. All of these penalties usually increase with each offense. We’d be more than happy to explain to you, and your kids, that with the first DUI you can start kissing reasonable Auto insurance premiums (and possibly your ability to get a policy at all) goodbye.

Why take the chance? Preserve your life, limbs, loved ones, driving record, and insurance affordability by being a smart driver. If you’re going to drink, take a cab home, or have a designated driver. Set a limit of how much you’ll imbibe and stick to it — or attend alcohol-free social events.

A word to the wise.

To determine the deductible that provides the greatest value for your insurance dollar, we believe Sherlock Holmes might have made a great insurance agent. Although insurance can sometimes seem complicated, choosing the best deductible for your personal situation can prove an elementary decision.

Deductibles serve a clear purpose. For a given loss, the deductible is the amount you pay out of pocket. The insurance coverage will pay the remainder of the covered loss, up to the available policy amounts. Using deductibles properly can reduce premiums by eliminating smaller claims that most people would never expect their policy to pay anyway. This keeps coverage available as your safety net for large, possibly catastrophic, claims.

How do you decide what’s “small.” How much would you be willing to pay in the event of a claim; and at what point would you want insurance to take over? For some policyholders, especially in tough economic circumstances, this “out-of-pocket” amount might be very small. Recognizing this, the usual Homeowners insurance deductible for many years has been between $250 and $500. The same amounts hold true for Auto insurance.

However, suppose you feel you could comfortably handle a $1,000 or $2,500 deductible? Paying losses lower than those amounts will reduce your premiums — but by how much? Will it put enough money back in your pocket today to make it worthwhile if you file a claim tomorrow?

Before you decide, let us show you what the savings would be. Give our agency a call about your deductibles. If you’re willing to take on a bit more risk today, we can put some money back in your pocket. As Holmes might have said, “It’s a simple premium deduction, dear boy.”

In today’s “litigation culture,” with million-dollar legal settlements all too common, anyone – including you and your family – could easily face ruin from a lawsuit, whether serious or frivolous. Even if you won, you’d be out thousands of dollars in defense costs.

A Personal Liability Umbrella can help ensure financial peace of mind by providing coverage up to an amount you’ve selected over and above the Liability limits under your Auto or Homeowners policy. Insurance companies often set minimum limits for Umbrella coverage. If you’re sued, the bulk of the settlement will come from your HO or Auto policy, with the Umbrella picking up the rest. Bear in mind that many insurers will only offer this coverage if they write both your HO and Auto insurance.

An Umbrella policy also extends coverage for you (and your family and pets) beyond basic bodily injury and property damage to personal injury, property damage, or bodily injury from a variety of exposures ranging from false arrest and defamation to invasion of privacy and wrongful entry. For example, Umbrella coverage would make sense if you own a dog that might snap or bite, or have one or more “attractive nuisances” (such as a hot tub, swimming pool, or swing set), and like to invite guests on a regular basis.

Depending on your situation, you might consider alternatives to an Umbrella policy, such as increasing Liability limits or raising your deductible under your HO or Auto policies. Also remember that Umbrella coverages vary from state to state. For example, many policies won’t cover claims for punitive damages, intentional acts, or activities related to business.

To make the best choice and make sure that you understand Umbrella coverage and any loopholes and exclusions, be sure to check with our insurance professionals.

Insurance companies shelled out $479 million to pay for dog bites last year, up from $413 million in 2010.

One company alone, State Farm, paid more than $109 million in Homeowner claims related to bites. California – which has more people and dogs than any other state – led the nation with 527 State Farm claims costing more than $20 million, followed by Illinois, Texas, and Ohio. The nationwide average claim was $28,800.

Dogs bite some 4.7 million Americans a year, nearly half of them children, Nearly 400,000 of these bites require medical treatment – and an average of 16 result in death.

Children age 5 to 9 are the group most likely to be bitten. The ASPCA predicts that one of every two children in the U.S. will suffer a dog bite before he or she turns 12, in most cases by their own dog or a pooch owned by a friend or neighbor. Seniors are the next most vulnerable group, followed by mail carriers. Dogs bit some 5,600 USPS carriers in each of each of the past two years, costing the Postal Service more than $1 million worth of medical bills in 2011.

Heredity, socialization, training, physical condition, and activities of humans can all affect the animal’s propensity to bite. Because children are by far the group most vulnerable to dog bites (a child is 900 times more likely to be attacked than a letter carrier) the ASPCA recommends that youngsters should never:

• Maintain eye contact with a dog
• Go near a chained canine
• Approach or touch a dog who is eating, sleeping, or off-leash
• Scream or run if an off-leash dog approaches
• Pet a dog without asking its caregiver for permission (it’s wise to have the animal sniff your closed hand first – many dogs perceive an open hand as threatening)
• Approach a dog from above its eye level

Your motor-home is your pride and joy – whether you live in it year round or just take it out a few times a year for those on-the-road getaways. It also represents a significant investment that needs protection against damage or financial risk.

Depending on your needs, you can buy coverage on your RV either as an add-on to your standard Personal Auto insurance or as a separate Recreational Vehicle policy. Either way, since the vehicle is also a home on wheels, it faces a variety of exposures:

• Damage to the vehicle from fire or collision
• Theft
• Liability for injury to third parties from an accident Loss of or damage to possessions inside the vehicle (for example, an expensive sound system, laptops or tablet, flat screen TV or other portable valuables). To estimate this exposure, you should take an inventory of these expensive items and list their replacement cost.
• Loss or damage to such external elements as satellite dishes or antennas (some insurers might require separate coverage “riders” on these).

Also, bear in mind that some RV policies have an annual mileage limit, which probably won’t be a concern if you only use your vehicle a few times each summer. However, if you’re on the road year round, you’ll need to consider the impact of this limitation.

If you have any questions on the amount and type of RV insurance you’ll need, feel free to get in touch with us.