Personal Perspective

In a very short amount of time, a fire can accelerate from a small flame to an out-of-control blaze. Fires destroy thousands of homes in the United States each year, so it is important for all homeowners to take steps to prevent them. It is also important to know what to do when a fire breaks out and how to control it. Research shows that almost 80% of structural fires happen in peoples’ homes or apartments. Almost all of these fires are preventable, so fireproofing a home is the most important step to take.

There is much more to fireproofing a residence than purchasing a fire extinguisher and testing smoke alarms regularly. For increased safety, consider the following suggestions:

For Bedrooms

• Replace any mattresses made before 2007 with new ones. The Federal Mattress Flammability Standard was enacted then, and it was made to increase the manufacturing safety standards.
• Avoid using space heaters or electric blankets that are not approved by leading laboratories.
• Make sure electrical cords are not trapped against walls or under objects where heat commonly increases. Never put clothing or textiles on top of lamps.
• Make sure closets and other storage spaces do not have loose papers or other flammable materials lying around.

For the Kitchen

• Never leave food unattended in the oven, on the stove or in other kitchen cooking devices.
• Make a habit of using timers for cooking food.
• Avoid leaving flammable items on kitchen counters. Paper towels, cleaning supplies, oven mitts and shopping lists should be stored in safe places.

For Appliances & Electrical Outlets

• Leaving any appliance on increases the risk of a fire, so never leave the home without making sure all appliances are off. This also includes washers, dryers and dishwashers.
• Frequently clean stoves, change furnace filters, clean vacuum filters and empty dryer lint traps.
• Check the cords of fixtures and appliances frequently. If they are frayed, they should be replaced.
• Avoid plugging too many items into one electrical outlet or power strip.
• If fuses blow several times in a short time span, call an electrician immediately.
• Have the home’s wiring examined frequently. This is especially important in older homes, attics and crawl spaces where insulation can be ignited by sparks.

Unfortunately, even the most careful homeowners can experience a fire. Lightning could strike, and a burning tree or bush could engulf a home in flames during a dry lightning storm. For this reason, it is important to have ample insurance coverage. Homeowners and renters should discuss these options with one of our agents.

You have the phone and the capabilities that come with it. Using the phone to manage all of your insurance affairs is not only smart, it will put you ahead of the game if you need to access your insurance information or if you end up having a claim. There is no better place than on your smart phone to store all the information and tools because it is likely with you at all times. The best news is, the resources are there and putting them in place is a snap.

The first thing you should do is to see if your insurance company has an app for your phone. If they do, downloading such an app is a no-brainer. These apps are available as a free added value service to you. The best part is that most of these apps have a number of capabilities. This includes nearly everything from accessing your policy information to submitting a claim and everything else in between. For example, if you get into an accident, some apps allow you to take photos and submit them together with a claims form you complete right on your phone. This means you can submit a claim within minutes after an accident happens, together with all the photos documenting the incident.

Although reporting a claim is probably the most valuable advantage of these apps, another advantage is having access to your policy information anytime you need it. What is your policy number? When does your policy renew? When is your next payment due? How much coverage do you have? All of this is right at your fingertips. For example, if you need your policy number and information for your job or you are driving kids on a field trip and the school needs it, these apps make it easy to access all this information.

Although most insurance carriers do have apps, even if your carrier does not have an app, the phone itself can be a valuable resource. For claims situations, the phone’s camera is just about the best mobile documentation tool you can have. Also, if you are away from home, the ability to connect to the internet to look up resources such as the nearest towing company, the insurance company’s website, and of course your agent’s phone number can be your greatest asset. Best yet, you can use the phone’s map to get directions to the closest place you may need to get to.

In addition to insurance company apps, there are a number of other applications that might be available. One example is a home inventory app that will help you to setup and organize photos or video of your entire home inventory. This can come in handy in the unfortunate event that you have a fire or are burglarized, as insurance companies will need an entire inventory to complete forms when processing the claim. Another example of a helpful app is a document storage and sharing app such as box.net or dropbox.com. These apps allow you to store and share documents and images virtually in what is referred to as a “cloud” format. This basically means that you can upload and save images from a computer to the cloud, and then you will have access to those images from your smart phone or any other computer.

Investing a little initial time to download and setup apps and other resources to make your phone “insurance smart” is well worth it. It will not only save you time when you need this information, it will allow you to be stay ahead of the game, even possibly being able to provide enough evidence to prove you are not at fault in an auto accident. You are 95% there by having a smart phone, and the benefits are too great not to take the next step in using the insurance-ready resources that are available.

There is plenty of controversy about how safe GPS devices are. Whether they increase or decrease safety depends on the driver. However, when used correctly, a GPS can be a great safety addition to any vehicle. The following reasons show good examples of why drivers are safer with a GPS system.

Drivers know where they are going. Lost drivers are usually distracted and dangerous additions to the road. They speed up, slow down and spend more time looking at signs than watching the road. When a GPS is used correctly, drivers can focus on the task of driving while the GPS navigates. If a turn is missed, the GPS will automatically recalculate the route to compensate.

Driving at night is safer with a GPS. Most people find it more difficult to drive at night or in low-visibility conditions. Fortunately, a GPS has the ability to warn the driver of upcoming turns or ramps before it is time to use them. The map previews are especially helpful for driving on dark back roads.

There is no need to deal with awkward paper maps. Juggling large paper maps and trying to refold them is a difficult task. Trying to read these maps while driving creates several hazards. Having a passenger try to read the maps might not always be beneficial. This is why it is easier and safer to get a GPS device.

There are special safety features. Hands-free features allow for calling the police while driving. There are also features for locating nearby hospitals, good repair shops and a wide variety of other destinations.

It is easy to choose the right lane. Some streets and freeways are confusing. Certain lanes may turn into exits, and congested traffic makes such situations worse. A good GPS system will tell drivers which lane to stay in, which exit to take and when to turn.

How to Turn a GPS into a Safety Aid

The first driving task any person should accomplish is to be aware of his or her surroundings. By following some simple rules, drivers can stay aware and maximize the safety features of their GPS devices.

Learn to use the device before taking off. Although most people learn the basic functions before getting on the road, very few thoroughly learn the overall system. Beginners should practice using the GPS and become comfortable with the touchscreen. Make sure the features are optimized for visibility. One mistake many beginners make is keeping their eyes on the screen too long.

Never program the device while driving. Every start-up screen and safety manual reiterates this important tip. Enter the destination prior to departing. If it is necessary to change or cancel the destination while driving, pull over to a safe place to re-program it. Fortunately, some newer devices prohibit re-programming while the car is in motion.

Mount the GPS device in a safe place. When choosing a spot for the GPS, make sure it does not conflict with important sight lines. Positioning it near the dashboard is a good idea.

Always rely on the voice directions. Although it might be necessary to glance occasionally at the map, try to rely mostly on voice directions. Avoid staring at the map. If it seems confusing, pull over to study it.

The costs associated with purchasing a vehicle do not end when you pay the dealer. When you own a car, you must pay for gasoline, maintenance and Auto insurance. The cost of Auto insurance usually varies based on your driving history, age and the type of car you drive. Although certain types of cars lower the cost of your insurance, others will raise it.

Car insurance companies determine the cost of your policy based on the risk of loss on insurance claims for the company. If the type of car you drive is associated with a larger number of expensive insurance claims, insurance companies will charge you a higher premium than it would charge if you were insuring a vehicle with fewer risks.

Insurance companies assess the risk associated with your vehicle by examining past information about the vehicle and about the type of person that usually drives it. If drivers of the vehicle usually make more claims, the insurance company will assign a higher premium. Cars that are often associated with more claims are usually those driven for pleasure, such as sports cars. Drivers of pleasure vehicles travel faster and might pay less attention to safety regulations. Sports cars also tend to become damaged more easily.

On the other hand, if the insurance company determines that your vehicle type does not usually result in many expensive insurance claims, it might assign a lower premium. For example, minivan drivers typically make fewer insurance claims and thus pay lower insurance premiums. This is because minivan drivers are typically carrying multiple passengers, so they drive more safely. Drivers of minivans also tend to travel less during peak traffic times.

Together with the profile of the driver and the safety of the vehicle, insurance companies also look at the cost of repairing your vehicle when determining your premiums. If repairs made to your vehicle would cost more than repairs made to most other vehicles, it is likely that your insurance premiums will be higher than the premiums associated with those other vehicles. In most cases, the more expensive the vehicle is, the more expensive the cost of repairs will be. For this reason, cars that cost more to purchase also cost more to insure, especially if the car is worth more than $60,000.

Regardless of the vehicle you drive, your age and driving history will also affect the value of your premium. If you are a young or inexperienced driver, your rates will usually be higher than the rate charged to a driver with more years of experience. Likewise, if you have a poor driving history with many insurance claims, your rate will increase.

It is common for neighbors to disagree. For example, one person might think that their outdoor dog barking at people passing by is an asset for keeping them safer from intruders. However, a neighbor who enjoys peace and quiet would think the dog is a nuisance. Another neighbor might enjoy listening to his or her music at a loud volume, but others who live in the neighborhood will likely find it annoying. Some situations might not be about noise. People who live in neighborhoods with a uniform appearance might hassle a new homeowner who decides to paint his or her house a clashing color. Whether the source of the problem is noise or something else, disagreements between neighbors can escalate into lawsuits. Before this happens, it is important to know what types of provisions a Homeowners policy provides for legal issues.

Many people think that a Homeowners insurance policy covers most types of lawsuits filed against them. For this reason, people are usually not as careful as they should be about preventing them. For example, consider a new homeowner who moves into a subdivision, replaces the existing fence with higher boards and paints them contrasting colors. If the subdivision has rules about the permissible colors and acceptable maximum height of fences, they will try to get the new homeowner to comply. Homeowners who refuse might find themselves facing a lawsuit for violating the subdivision’s code. The courts will likely favor the subdivision’s rules, and a Homeowners policy will not provide coverage for the legal battle. Therefore, it is important to understand exactly what legal issues are covered under the policy.

Loud noises, eyesores and changes are all issues that do not physically harm another person. Although they might be annoying, they are not issues that would be covered by a Homeowners policy if they escalate into a lawsuit. Always remember that a Homeowners policy offers protection for two types of liabilities: Property damage and bodily injury. If the family dog bites someone on the property, a guest falls off a broken step, or one of the kids breaks a visitor’s car window, a Homeowners policy covers such issues.

Since coverage is limited to two types of physical damage, it is important to work as hard as possible to settle disputes with neighbors. For example, if neighbors complain about a barking dog, it might be best to enroll the dog in training or purchase a no-bark citronella collar. Trim overgrown shrubs or trees that neighbors complain about. Many people get angry and frustrated when a neighbor makes accusations or complains. Anger is usually what causes people to be stubborn and refuse to compromise. Always listen to what neighbors have to say, and try to understand the situation from their perspective. Use common sense to arrive at a solution that is favorable to both parties. However, the best way to avoid anger and confrontation is to fix possible nuisances before neighbors complain. For additional information about avoiding problems and lawsuits with neighbors, discuss the issues with one of our agents.

To get the most out of your Auto or Homeowners insurance policy, it is important to understand the roles deductibles play. A deductible is the amount deducted from an insured loss. When a damage claim is filed, the deductible is the amount of money a policyholder must pay upfront. It may be a percentage of the policy’s total or a set dollar amount. Larger deductibles are associated with smaller premiums. To find the verbiage concerning deductibles, consult the front page of the Auto or Homeowners policy. Deductibles are subtracted from the claim amount. For example, if a person with a $500 deductible files a claim for $10,000, that policyholder will receive a check for $9,500. However, if that individual’s deductible is calculated using percentages, the amount may differ. With percentages, the variable is calculated from the total claim and then subtracted from the total.

In many areas of the United States, deductibles are increasing. This is especially true in states prone to hurricanes. Property damage deductibles work differently than those for other types of insurance. For example, a deductible applies each time a claim is filed for Auto or Homeowners insurance. However, a deductible applies only once each year for health insurance. There are some exceptions for damage-related insurance products. In some cases, hurricane coverage has a per-season deductible. The following points cover some of the most important deductible information.

Deductibles Do Not Apply to Liability Claims. Although there is no deductible for a liability claim with a Homeowners or Auto policy, there is a deductible for property damage. Deductibles apply to claims made to the comprehensive policy. In Homeowners insurance, deductibles also apply to damaged items inside the insured structure. However, they do not apply if a homeowner is sued or if a medical claim is filed by an injured visitor.

Higher Deductibles May Save Money. One of the easiest ways to cut expenses is to raise deductibles for Homeowners and Auto insurance policies. Increasing an Auto insurance deductible from $200 to $500 reduces collision and comprehensive premium costs up to 30%. Raising the deductible to $1,000 may result in a savings of more than 40%. Remember this is the out-of-pocket amount that must be paid regardless of the amount of the claim.

Flood Insurance Deductibles Vary. Since flooding is not covered in standard Homeowners policies, it is sold by the NFIP and private insurance companies. There are several different choices of deductible amounts for these policies. Keep in mind that some mortgage companies require homeowners to keep their deductibles under a specific dollar amount. Flood coverage for vehicles can be obtained with an optional comprehensive plan.

Various States & Companies Affect Deductible Amounts. Insurance is a state-regulated product, and insurers are required to follow their state’s rules. The laws affect how deductibles are worded in policies and how they are implemented. Since there are a wide range of deductibles found in each state, it is best to compare policies. Keep in mind that doubling the deductible may save more than 20% on the cost of a policy.

Percentage Deductibles Apply to Hurricanes, Hail & Earthquakes. Earthquake deductibles may be much less than 10% or as high as 20% of the structure’s replacement value. Insurance rates are higher in states such as Nevada, Utah and Washington. Consumers in these states may choose higher deductibles to save money. There are special earthquake policies for California residents. To learn more about areas prone to earthquakes, discuss them with one of our agents.

There are two separate types of wind damage deductibles. The first is a hurricane deductible, which applies to wind damage sustained from hurricanes. The second type is a windstorm deductible, which applies to damages sustained from any other type of windstorm. Hurricane deductibles depend on specific triggers. These are usually designated by the National Weather Service, individual states and insurers. The triggers apply when a storm is officially deemed a tropical storm or hurricane. To learn more about how these triggers work, discuss them with us. Some states allow set deductibles. However, communities in high-risk coastal areas may have mandatory percentage deductibles.

State minimum insurance requirements are minimal. Most states demand less than $100,000 for bodily injuries and $50,000 for property damage. Some states require only $10,000 for property damage coverage.

How many cars valued at greater than $10,000 travel the highways? How many trucks carrying cargo are worth more than $10,000? $50,000? $100,000?

According to the 2010 census, the median family net worth exceeded $200,000. That amount includes houses, cars, savings, retirement funds, cash in the bank, college savings, and furniture and personal effects. Half the families are worth more, half have assets less than $200,000; all of it is hard earned.

If the family is underinsured for liability, their net worth is vulnerable to be seized in a lawsuit based on injuries or property damage caused by any family member driving a vehicle. The car owner and the car driver become parties to the suit.

Bodily injuries sustained in car wrecks devastate lives. People unable to work, the high cost of medical treatment, rehabilitation expenses, and the pain and suffering can only be compensated with money. The money comes from the insurance company or the liable party’s personal wealth.

Not convinced you need higher limits? Not all liabilities are released in bankruptcy. Many states have specific legislation disallowing debt reduction for certain accidents, most notably driving while intoxicated. Wage plans reduce take home pay by as much as 33%. Many employers do not tolerate either bankruptcy or wage garnishments.

Still not convinced? How about a selfish motivation?

Other drivers are either uninsured or underinsured. Most insurance companies will not provide uninsured motorist coverage in limits greater than the liability limits of the policy.

Uninsured and underinsured motorist coverage from your policy pays on behalf of the driver who hits you if they are poorly insured. In a classic exercise of the golden rule, insurance companies only sell limits commensurate with the protection you offer others.

Proper limits of liability allow you to protect yourself from the improper coverage other people maintain.

So how much coverage is enough? What are reasonable limits of liability?

Ask our insurance professionals. And consider this:

Your assets are your excess insurance coverage. This means that when the limits of your policy are reached, your assets are at risk. Excess insurance – Umbrella policies, for example – is available in $1 million layers over your Automobile and Homeowners liability limits if those limits qualify – are high enough. Protect yourself against underinsured drivers by increasing your uninsured motorist coverage.

An insurance adjuster is responsible for inspecting damage to a home following a claim. These individuals are also responsible for offering a specific sum of money that is to be used by the policyholder for necessary repairs. As a general rule, the first check received from the insurance company is meant as an advance toward the total amount of the settlement. It’s important to remember that it’s not the final payment. Separate checks are issued for each category of damage. Checks to cover living expenses are usually also sent separately. Individuals who are offered a settlement amount on the spot might choose to accept the money. If further damage is identified later, it’s possible to reopen the claim to request more money. Keep in mind that most policies require all claims to be filed within one year of the disaster’s occurrence. It’s best to check with one of our agents to learn about rules pertaining to individual state insurance departments.

People who have mortgages on their homes will receive a check for repairs that is payable to them and their lenders. This is because lenders usually require that their names be placed on the Homeowners policy, which means they’ll also be named on any checks for claims. Since the lender has a vested interest in the property for as long as it’s under a mortgage, they have equal rights to the checks issued by Homeowners insurance companies. When a lender’s name is on the check, the document must be endorsed by the lender before it can be cashed. As a general rule, lenders place the funds in an escrow account. They use the money to pay for the repairs until the work is completed. Borrowers must communicate with their lenders to ensure the repairs are done quickly and efficiently. After receiving a bid from a contractor, show it to the lender. Let them know how much money the contractor requires up front to start working. Keep in mind that a lender might want to have the work inspected before releasing enough funds to pay the rest of the bill.

There are some construction companies that require customers to sign a form that permits their Homeowners insurance company to pay the company directly. If this is the case, it’s important to be sure the final work product is acceptable before telling the insurance company to complete the final payment. There are specific guidelines that lenders must follow after a disaster occurs. To learn about these rules, contact our office.

The first step to take after a disaster occurs is to total up the cost of all personal belongings. Use photos, videos and any other means necessary to prove ownership or show the condition of items that were destroyed. If there are receipts or sales records of any items, be sure to save them. Homeowners who have a replacement cost policy will receive reimbursement for the purchase of new items. Cash value policies provide reimbursement minus the cost of depreciation. Most companies require policyholders to purchase new items before they offer reimbursement for the destroyed items.

Checks for additional living expenses are made payable to the policyholder. Since the lender has nothing to do with these expenses, they don’t receive any of the money. Those whose homes have been destroyed have several options. They may rebuild on the same site. If this option is chosen, the amount of money awarded to rebuild will depend on the type of policy purchased and the amount specified under the declarations section. Some homeowners might decide to rebuild elsewhere. If this option is chosen, the amount awarded will be determined by state law, policy provisions and court rulings. If you are considering either option, contact us before making a decision.

When most people think about earthquakes in the United States, California and Alaska are the two states that come to mind. However, earthquakes can happen in any part of the country. Many people move out of areas that are prone to earthquakes after experiencing one to escape the possibility of a repeat experience. The truth is that there is no place that is completely safe from earthquakes. They are a very real threat that everyone must consider and plan for. One of the most vital aspects of proper preparedness is having ample insurance coverage.

Earthquake damage isn’t covered in the majority of Homeowners policies. This is also true for business policies. Both types of policies specify that damage from earth movement is not covered. Although actual damage from a quake might not be covered, property insurance might provide coverage for fires and other incidents that occur as a result of it. Policyholders should scour their policies to understand the specific exclusions. If the policy seems difficult to read, it’s important to contact an agent with any questions.

Many people think they won’t experience a major earthquake during their lifetime. This is especially true for those who live in areas where earthquakes happen every 100 years or less. Although many people might not experience a strong earthquake like the recent Virginia incident, there are over 5,000 incidents recorded each year by the USGS. Damage from earthquakes has been recorded in all 50 states in history. There have been reports of damage in 39 states alone since 1900. This proves that although some people might not live in areas that commonly experience earthquakes; they’re still not immune to the threat.

Earthquake insurance is available as a rider, which is added to a business or personal property policy. People who have one of these types of coverage should contact their insurer to find out what coverage options are available. Since they’re unpredictable and happen suddenly, it’s best to be prepared for all types of disasters. Earthquake insurance is so important that it can’t be stressed enough. Although the majority of people assume all California homeowners have this type of coverage, research indicates that about 12% actually have this type of insurance. The nation’s average is less than 12%.

Earthquake insurance costs vary by location, building type and the age of the building. It’s much more expensive to insure older buildings. In addition to this, brick structures are more expensive to insure. Buildings with wood frames withstand the force of earthquakes better, so it’s cheaper to insure them.

To offer an example, a home with a wood frame in Washington might cost between $1 and $3 per $1,000 of coverage. The same home might be less than $.50 per $1,000 insured on the East Coast. However, a brick home might cost between $3 and $15 per $1,000 in the Pacific Northwest. In most East Coast locations, the same home might only be between $.60 and $.90 per $1,000.

Every earthquake policy also has a deductible. This means that homeowners must pay upfront for a portion of the damages before the insurer pays the remaining amount. The deductible might be up to 20% of the structure’s replacement value. The percentage depends on the insurer and the location of the structure.

There are also options for renters. There are coverage policies that protect personal property. In addition to this, they usually cover living expenses if the building becomes uninhabitable after an earthquake. It’s important for renters to keep a list of belongings and their values. Major appliances, furniture, electronics and other expensive items must all be documented properly. A new way of creating a record of belongings is making a narrated video tour of the home and focusing on belongings. Contact one of our insurance agents to secure the earthquake coverage that is right for your individual needs.

After receiving valuable jewelry, it’s important to contact an insurance agent immediately. It’s important to keep in mind that most Homeowners policies place limitations on coverage for personal valuable items. This means that owners of these valuable items might not receive the full value if any of the items are stolen or lost. As a general rule, most Homeowners policies provide coverage for possessions up to 50% of the total coverage amount chosen. This means that a person who has a $600,000 policy would enjoy coverage as much as $300,000.

However, most policies place limitations on certain types of personal belongings. For example, a policy provider may offer to cover $1,500 or more for all jewelry if theft occurs or the jewelry is damaged. There are several other categories of personal belongings that have limited reimbursement terms. Firearms, stamps, furs, coins and silverware are examples of such items. Homeowners should be sure to read the section of their Homeowners policies regarding contents and additional coverage. It’s important to remember that accidental loss is not usually covered. This means that a woman who loses her engagement ring will not receive payment from the Homeowners insurance company.

Homeowners who want to raise their coverage limit to ensure protection for loss and theft cases should contact an agent immediately. It’s best to ask the agent to schedule the particular jewelry item or add a special rider to an existing policy. In some cases, a written appraisal may be required, so it’s best to ask an agent if this will be necessary. Usually a detailed receipt is sufficient proof for the value of the item. After a value schedule is assigned to the item, the owner has full protection for the total amount if the item is lost, destroyed or stolen. This makes the claims experience simpler since there isn’t a need for an investigation about the item’s value. In addition to this, there is no deductible assigned to the items.

Since additional coverage is so affordable, it’s best for all homeowners who have valuable jewelry or other special items to speak with their agent. Agents are able to make an assessment of what should be insured and provide valuable advice. As a general rule, Homeowners policies don’t assign specific limits on electronic devices aside from the overall limit for possessions. It’s best for homeowners to insure their valuable items in such a way as to ensure that replacement-value coverage is in place. To learn more about the various types of riders and affordable coverage options, contact our office today.