Great Insurance, Easy!

2010-05-21T10:28:00.001-07:00

Insurance Education: Vacation? Most home policies cover theft of cameras, etc., anywhere you go. Talk to your agent to check your coverage!

2010-05-18T14:00:00.001-07:00

Insurance Education: Renting a car for vacation? Talk to your agent! Most policies cover the rental car with same limits as your own car.

2010-04-06T14:02:00.001-07:00

Insurance Education: Spring landscaping? Be sure water drains away from the basement. Seepage typically is not covered by a home policy.

2010-04-02T09:00:00.001-07:00

Insurance Education: Collect figurines? Talk to your agent! Most unendorsed home policies will not cover breakage unless you list them.

2010-03-19T09:00:00.001-07:00

Insurance Education: In most policies, "you" includes spouse, but not partner. Unmarried couples--review this with your agent to avoid gaps!

2010-03-10T15:49:00.001-08:00

is looking for an insurance agent in Kansas for a referral, a home-based business making fused glass jewelry. Can you help?

2010-03-09T04:57:00.001-08:00

is looking for an insurance agent in Kansas for a referral, a home-based business making fused glass jewelry. Can you help?

2010-03-06T17:41:00.001-08:00

Insurance Education: In his health care summit, the President describes his mistake choosing auto insurance coverages. http://ow.ly/1f8kH

The President's Auto Insurance Choice

2010-03-06T15:30:00.000-08:00

What is wrong with this statement?

When I was young, just got out of college, I had to buy auto insurance. I had a beat-up old car. And I won’t name the name of the insurance company, but there was a company — let’s call it Acme Insurance in Illinois. And I was paying my premiums every month. After about six months I got rear-ended and I called up Acme and said, I’d like to see if I can get my car repaired, and they laughed at me over the phone because really this was set up not to actually provide insurance; what it was set up was to meet the legal requirements. But it really wasn’t serious insurance.

This story happens every day, and it does not have a happy ending. Nobody likes stories with unhappy endings. Neither the insurance company nor the policyholder wants a claim to come out with an unhappy ending.

This is the story of a young man who did not understand different types of insurance; he bought insurance for one thing, and he learned the hard way that it did not cover something else. Insurance is complicated, and sometimes we in the industry make it too confusing for customers.

In this case, however, the man who did not understand what he was buying went on to become the President of the United States. This quote is taken from a speech that President Obama made earlier this week. (See the video at http://www.whitehouse.gov/photos-and-video/video/bipartisan-meeting-health-reform-part-2. Skip ahead to the 52:00 minute mark.)

What I Would Have Explained to President Obama

Most car insurance policies have the following three types of coverage available:

Coverage for legal liability to other people. If you hit somebody or otherwise cause injury to them or damage to their property, you are responsible for the bills.
Coverage for injuries to you, your family, and your passengers. You might also have health insurance that would cover you.
Coverage for your car and other property. This pays to to repair or replace your car if you damage it in an accident. (If another driver was at fault, his or her coverage for legal liability (#1 above) would pay for the damage to your car.)

The insurance customer can choose which of the three types of coverage he or she thinks is worth the money. Often we talk about the government forcing us to buy insurance. In most cases, however, the government requires us to buy only #1, coverage to protect other people from us. The government has no authority to tell us to buy coverage to protect our own car. We are free to make that decision based on whether the car is worth it.

In the story above, it appears that President Obama decided that the car was not valuable enough to insure. In that case, however, do not blame the insurance company for refusing the pay the claim. It was still real insurance, but only for #1, only the part that the Illinois government required him to buy.

How does one decide whether to buy #3?

It is much easier than deciding the right amounts for the first two options. There are two simple questions:

Would you need the car repaired or replaced if something happened to it? If not, then do not buy insurance for the car--only for the liability.
If you would need the car repaired or replaced, however, then how much is the car worth? How much can you afford to pay to repair or replace it? Is the car worth more than you can afford to lose? If so, then buy #3, and choose a deductible that is as high as you can afford to pay out of pocket, without causing a hardship.

Please, talk to your agent! Get answers to your questions, determine how much coverage you need and how much you are willing to pay for it. If you do, then you will never have a story like Obama's.

2010-03-04T14:00:00.001-08:00

Insurance Education: Be sure to list all household members and frequent operators on your auto ins application to avoid problems with claim.

2010-03-04T12:00:00.001-08:00

Insurance Education: Some ins companies are cutting back on older houses unless they insure the car. Talk to your agent. There are options!

2010-03-02T14:00:00.001-08:00

Insurance Education: Spring is coming! The ice is beginning to melt, so in most areas you should have your ice house off the lake now.

2010-02-11T10:00:00.001-08:00

Insurance Education: Can you have too much ins? You bet! Some spend too much for small losses, at the cost of getting coverage for big ones.

2010-02-09T10:00:00.001-08:00

Insurance Education: Two simple questions to determine if you need life insurance: Does someone depend on you financially? Do you care?

2010-02-04T10:00:00.001-08:00

Insurance Education: Surprisingly, study shows no reduction in accidents from bans on cell use while driving. Why not? http://ow.ly/13G1i

2010-02-02T10:00:00.001-08:00

Insurance Education: Most home ins policies do not cover wear and tear or mechanical breakdown. Old furnace? Try a home warranty policy.

2010-01-28T10:00:00.001-08:00

Insurance Education: Is your house insured for the right value? Market values are down, but reconstruction costs are not!

2010-01-26T17:38:00.001-08:00

RT @ClaimsCoach: Are earthquakes & other disasters "Acts of God" or are the efforts of responders (even adjusters) the REAL "acts of God"??

2010-01-21T10:02:00.001-08:00

Insurance Education: When you schedule jewelry, be sure to get it appraised. This can reduce questions at claim time.

2010-01-14T11:00:00.001-08:00

Insurance Education: Roof damaged by weather? Most ins policies pay for temp repairs until the full repair is complete.

2010-01-07T11:04:00.001-08:00

Insurance Education: On icy roads, don't watch only your own driving--watch for others who are sliding, and leave room.

2009-12-22T15:01:00.001-08:00

Insurance Education: 'Twas the Night Before Christmas ... an Underwriter's Version. http://ow.ly/OsIO

2009-12-17T15:01:00.001-08:00

Insurance Education: It's ice fishing time! Before driving your truck on the ice, talk to your agent about your coverage.

2009-12-01T15:03:00.001-08:00

Insurance Education: Please don't leave Xmas presents in your car! Most auto policies do not cover their theft.

2009-11-19T15:01:00.001-08:00

Insurance Education: How has safety improved in 50 yrs? Watch video of crash: 2009 Malibu, 1959 Bel Air http://ow.ly/DA1M

2009-11-10T16:01:00.001-08:00

Insurance Education: Talk to your agent now! Don't wait until after you have a claim to find out if you are covered.

2009-11-05T14:30:00.001-08:00

Insurance Education: 2 questions to determine if you need life insurance: Does someone depend on your income? Do you care?

2009-10-29T08:16:00.001-07:00

Talk to your agent! The most EXPENSIVE way to get covered is to buy the cheapest policy and just assume that it covers your needs.

2009-10-27T10:31:00.001-07:00

Insurance Education: In most policies, "you" includes spouse, but not partner. Unmarried couples--review this with your agent to avoid gaps!

2009-10-01T12:11:00.001-07:00

Insurance Education: Comprehensive and Collision Coverages explained ... using a BLENDER! Watch the video: http://ow.ly/scvC

2009-09-30T14:02:00.001-07:00

Insurance Education: Think you're not in flood zone? Think again. 1 in 4 claims are in areas NOT considered high-hazard. Talk to your agent!

2009-09-29T14:02:00.001-07:00

Insurance Education: Days get shorter, watch for deer at night. Danger is not over when one crosses the road--sometimes another will follow.

2009-09-23T14:01:00.001-07:00

Insurance Education: Do you know what is considered a flood in the flood insurance policy? Great article by Chris Boggs: http://ow.ly/qBHZ

2009-09-23T09:34:00.001-07:00

RT @WestfieldIns Taking your computer on a trip? Tips for secure network access in hotels and hotspots http://ow.ly/qHS7

2009-09-22T10:07:00.001-07:00

Insurance Education: Fall is here! If you have foundation drainage problems, fix them now—before winter freezes crack your basement wall.

2009-09-21T06:45:00.001-07:00

RT @KearnsInsurance: We are heading into fall...remember to have your heaters checked out for winter...do it now and beat the rush (or cold)

2009-09-19T09:38:00.001-07:00

is looking for a few good agents ... to teach continuing education classes in Ohio. Know anyone who might be interested?

2009-09-19T04:20:00.001-07:00

Happy International Talk Like a Pirate Day! http://ping.fm/MaTQV

2009-09-16T06:29:00.001-07:00

Insurance Education: Think only a little bit of flood water won't hurt? 2 inches of water can cost $7,800. Check it out at http://ow.ly/pC86

2009-09-15T15:12:00.001-07:00

It's official! NorthShore Solutions Group has just received its approval from Ohio Dept of Ins. We are now an approved Ohio Ins CE provider.

2009-09-11T14:23:00.001-07:00

Insurance Education: For each 1 point rise in unemployment, the rate of uninsured drivers rises by about 3/4 point. http://ping.fm/WSN0U

2009-09-10T07:16:00.001-07:00

Insurance Education: Choose a deductible as high as you are willing to pay out if you have a claim, but not high enough to be a hardship.

2009-08-28T14:19:00.001-07:00

Insurance Education: Do you have an after-market spoiler, wind scoop, etc? Talk to your agent about coverage. You might need an endorsement.

Do You Need Rental Car Insurance?

2009-08-25T10:19:00.000-07:00

When you rent a car, the rental agent always hits you up to buy their damage waiver. If you're renting for more than a day or two, the costs can add quite a lot to your overall rental bill. Do you really need it?

Many personal auto policies will cover you if you have an accident in a rental car. You should speak to your agent, however, because policies vary widely from company to company and from state to state.

Some of the disadvantages to relying on your own policy?

Sometimes the rental company will attempt to charge you for "loss of use"—the lost rental income that they could not collect while the car was in the shop to be repaired. A car rented at $40/day that is out for repairs for three weeks could be charged $840 for loss of use. (Often this can be argued. If the rental agency had other cars to rent, then was it really out $840 because it could not rent this particular car?)
Some personal policies do not cover the accident if you rented the car for business purposes. (Does the business have a policy that would cover it?)
Many policies will not cover it if you allow a friend to drive the car. (The friend's policy might; he should check with his own agent.)
More and more often, rental companies are charging for diminution of value. If you return the rental car with damage; and after it has been repaired, the car is worth $500 less because of the repaired damage; then the rental company will bill you for $500. This varies by state regulations, but most policies do not pay for diminished value in most states.
The accident will go on your record and will affect your future insurance rates. (This is not surprising. It would go on your record anyway if the accident occurred in your own car instead of a rental car.)

For these reasons, some people choose to purchase the insurance and the collision damage waiver from the rental company.

Reasons not to buy it? It is expensive! Some people look at the additional charges as another form of self-retained risk, like the deductible. If you can afford to take the chance on paying loss of use and diminished value, you might consider rejecting the insurance and the collision damage waiver from the rental company.

Talk to your agent to weigh your options. A good, well-informed agent will be able to answer these questions for you.

Police Reports

2009-08-21T06:48:00.001-07:00

Insurance Education: Ask the police officer who, in his own judgment, is at fault. Is that included in his police report?

New Book: Inside the Personal Auto Policy

2009-08-19T19:48:00.001-07:00

Christy has finished (finally!) writing the book "Inside the Personal Auto Policy." We are filing it for approval for at least four intermediate-level insurance CE courses.

An intermediate level class on the ISO Personal Auto Policy, with special focus on the exclusions and how to close coverage gaps.
Intermediate-level classes similar to #1, but customized for specific insurance companies. The target market for these versions will be agents only of those companies.
An advanced level class on a comparison of the policies of the top five companies in the state.
An advanced level class on credit scoring in the auto insurance market: Why they do it, what the numbers show, and where the future leads.

Seat Belts

2009-08-18T14:04:00.001-07:00

Insurance Education: Happy birthday to the seat belt w/shoulder belt! Volvo introduced the first one 50 years ago this month.

Be Careful with That Wii Remote!

2009-08-13T16:43:00.001-07:00

Insurance Education: Be careful with that Wii remote! If it hits the TV, most unendorsed homeowners policies will not cover screen breakage.

File a Claim?

2009-08-11T14:30:00.001-07:00

Insurance Education: Unsure whether to file a claim w/ only minor damage? If you injured someone, they WILL file, so you should file first.

The Answer to Life, the Universe, and Everything

2009-08-07T11:38:00.001-07:00

Tech humor: Do a Google search for "the answer to life the universe and everything". "Hitchhiker's Guide" fans will love the search results!

2009-08-07T08:07:00.001-07:00

is looking for speakers for the Rotary meetings in September. Is anybody interested in educating us on a Friday morning?

Do you really need automobile medical payments AND health insurance?

2009-08-05T19:34:00.000-07:00

People often ask, "If I have health insurance, do I really need Medical Payments on my auto insurance?"

The answer is, "It depends." You could save a few dollars by skipping Medical Payments if you have good health insurance, but it is not the best choice for everybody.

However, there are some benefits to having Mecical Payments on your auto policy.

Medical Payments usually has no deductible and no copay. If you have a $5,000 accident, you would pay $0 out of pocket if you have Medical Payments with a limit of $5,000 or higher; but you would pay $1,800 out of pocket if you use your health insurance with a $1,000 deductible and 20% copay.

Health insurance often requires you to go to certain in-network providers. Medical Payments pays the bills regardless of where you go for treatment. Also, Medical Payments might pay for types of treatment that your health insurance will not cover.

Finally, you can use your Medical Payments even when the other driver is at fault. If you so choose, your auto insurance will pay your medical bills up front while you work out a settlement with the other driver's insurance company. This will keep the hospital from hounding you for payment while you negotiate with the other driver and his or her insurance company.

Best of all, you might get a very high limit for Medical Payments for less than $10 per month, depending on your company's rates and your particular situation.

Get the VIN!

2009-08-04T12:03:00.001-07:00

Insurance Education: When someone hits you, be sure to get the VIN, not just the license plate number. Sometimes the plates do not match.

Cash for Clunkers

2009-07-30T14:31:00.001-07:00

Insurance Education: Trading in on Cash for Clunkers? You must provide proof of insurance for the last 12 months. Your agent can help.

Friends don't let friends text while driving

2009-07-28T18:11:00.001-07:00

Insurance Education: Friends don't let friends text while driving. NPR cites a Virginia Tech study ... texters are 23 times more likely to crash.

The right police department

2009-07-23T14:03:00.001-07:00

Insurance Education: Call the right police dept for the report. Sometimes several agencies come to the scene, but only one writes a report.

Pirate language for Google

2009-07-22T14:50:00.001-07:00

Tech Fun: On Google, click "Preferences" and change "Interface Language." Select PIRATE to change "Preferences" to "Me Likes an' Dislikes."

Rental Reimbursement

2009-07-21T12:08:00.001-07:00

Insurance Education: If your car were in the shop, do you have an extra car to drive? Consider dropping rental coverage and save money.

Image Generators

2009-07-16T11:12:00.001-07:00

Tech Tip: Add humor to your presentation with the tools at http://ping.fm/AN8PC Try Making Dumbledore say, "I've got my geek on!"

How high should your deductible be?

2009-07-15T10:04:00.001-07:00

Insurance Education: Your deductible should be as high as you are comfortable paying for a claim, but not high enough to cause a hardship.

Generating Leads by Writing Articles Online

2009-07-10T13:31:00.001-07:00

Christy Perry is preparing the keynote speech for AWESOME Women in Business next Tuesday. She will speak on generating leads by writing articles online.

When Somebody Else Drives Your Car

2009-07-08T09:30:00.001-07:00

ASK if your auto policy pays first when you let somebody else drive your car. One of the largest insurers does NOT.

Insurance Deity

2009-06-16T20:25:00.000-07:00

I stopped putting my company name on name tags at meetings and conventions. My company name did not convey my expertise, my uniqueness, or my passion for ensuring that everyone is properly protected. It made me sound like the other 18,000 agents that represent the same company.

Now I write, "Christy Perry, Insurance Deity." That ought to do it!

Do You Need Rental Car Coverage?

2008-05-29T08:00:00.000-07:00

When you rent a car, the rental agent always hits you up to buy their damage waiver. If you're renting for more than a day or two, the costs can add quite a lot to your overall rental bill.

My clients frequently ask me if they need it. Will their personal auto policy pay for an accident they have in a rental car?

Many personal auto policies will cover you if you have an accident in a rental car. However, you should speak to your agent, because policies vary widely from company to company and from state to state.

There are also some things that are not covered by your personal auto policy. Sometimes the rental company will attempt to charge you for "loss of use"—the lost rental income that they could not collect while the car was in the shop to be repaired. Some personal policies do not cover the accident if you rented the car for business purposes. And many will not cover it if you allow a friend to drive the car. Your agent should be able to answer these questions about your own policy.

The World's Most Expensive Pizza Delivery

2008-05-22T18:54:00.000-07:00

Do you deliver pizzas, newspapers, mail, flowers, or any other product in your personal vehicle?

Does your son or daughter have a newspaper route and use the family car?

If you or your family member had an accident while delivering, do you know if your insurance would pay for the claim? Most policies would not pay it. That's why delivering pizza in the family car could be the world's most expensive pizza delivery.

Although a few companies might do this on a personal auto policy, most want to put it on a commercial auto policy. Commercial auto policies are designed and priced for risks where the driver goes to many different locations, often in a hurry to complete deliveries on time, and often looking at directions or maps to find the right home. It might cost more, but isn't it worth it to have the peace of mind knowing that the claim will be covered?

For more information, click here.

Home-Based Business — What Does a Homeowners Policy Cover?

2008-05-12T09:38:00.000-07:00

About three out of every ten people operate some sort of home business, according to the U.S. Bureau of Labor Statistics. These businesses range from full-time independent consultants to in-home day care providers to home-based sales reps for cosmetics and household goods. Their business vary widely, and so do their insurance needs. But they have one thing in common: A typical homeowners policy probably doesn’t cover their businesses the way they think it does.

Many homeowners will be surprised by this answer. A typical homeowners policy does not cover most losses caused by the operation of a business.

Here are a couple of examples:

If your sister is visiting and falls on the stairs, her injuries are covered. If a client is visiting and falls on the stairs, his injuries are not covered.

If a fire destroys your living room and your sofa, television, and coffee table are lost, they are covered. If a fire destroys your home office and your computer, printer, fax machine, and desk are lost, there will be only a limited amount of coverage.

If you make candy at home and sell it to other people, and your customers become ill, your homeowners policy will provide no coverage at all.

These are some pretty shocking examples. Let’s go into a little bit more detail, because a homeowners policy covers several types of losses.

Keep in mind that policies vary from company to company, and from state to state, so you should consult with your local agent to determine exactly what coverage you have and what adjustments you might need to make. These are some general cases about homeowners policies, but only your agent can tell you if they apply to your own homeowners policy.

Coverage under a Typical Homeowners Policy

First, let’s look at what might be covered:

The House. Most homeowners policy will pay for damage to your home that is caused by something that happens in your home business. If you make glass beads in a furnace, for example, and the furnace causes a fire in the house, most policies will pay for the fire damage to the house. This is because the more common homeowners policies provide “all risk” coverage on the house, except for specific causes of loss that are not covered. (Typical homeowners policies don’t cover losses caused by flood, for example. You need a separate flood policy for that. Most homeowners policies don’t cover losses caused by earthquake unless have you a special endorsement. There are a few other causes of loss that are not covered. Be aware that this is not true for all policies, so it is very important that you either read your policy, or ask your agent to explain them to you.)

Personal Property Used for Business. “Personal property” means other items, not part of the building—things such as furniture, equipment, parts and supplies, a computer, software, data or records. Most policies include a limit on how much is covered, such as $2,500 (if the items are at the residence at the time of loss), or $500 (if the items are away from the residence).

There is a longer list of things not covered:

Other Buildings. Most homeowners policies include additional coverage for other buildings that are not connected to the dwelling, such as a detached garage, shed, or workshop. However, most homeowners policies do not cover a building that is used for business purposes, or that is used as a storage building for some types of business property. If you have a separate building in the back yard that you use as a studio or workshop to make glass beads for sale, that building might not be covered.

Personal Property Used for Business. As described above, most policies have a limit on the amount of coverage for other items, not part of the building, that are used in the business. Anything more valuable than that limit is not covered.

Business Data. Most policies do not cover business data, such as accounts receivable records or customer lists, whether stored on paper or on your computer.

Other Miscellaneous Coverages. There are other miscellaneous coverages which are normally covered, but are not covered if they arise out of business purposes, such as damage to trees and shrubs; or losses due to credit card, ATM card, forgery, or counterfeit money.

Bodily Injury or Property Damage. Homeowners policies include coverage for injuries to other people, such as if someone slips and falls on your property; and for property damage to property of others for which you are responsible. However, most policies do not cover bodily injury or property damage arising out of your business operations. In other words, if a customer comes to your house to pick up some merchandise, and he slips on the sidewalk or on the steps, his injuries probably won’t be covered by your homeowners policy.

Products Liability. If you make a product and sell it, and that product harms someone, you might be held responsible. This can happen long after the purchase, when you have forgotten about your customer and about the product. This is called products liability, and most homeowners policies will not pay for it.

Professional Liability. In some businesses, you are expected to provide a certain level of service, and your client could suffer a financial loss if you do not perform the service properly. For example, if you are an insurance agent and you do not add the right coverages to your client’s policy, your client might hold you responsible if his claim is denied due to your error. This is called professional liability (or “errors and omissions”), and most homeowners policies will not pay for it.

As you can see, most homeowners policies provide only a very limited amount of coverage for a home-based business. The list of things that are not covered is much longer than the list of things that are covered.

The best thing you can do is with down with your insurance agent and review your risks and your needs. There are some good options for insuring a home-based business, but the best option for you depends on the size of your business, the type of business, and the risks that you face in your business. The two of you can find the right balance between more coverage and less money.

Your business is one of your biggest assets, so you need to protect it properly. More importantly, it’s your dream. If your policy can’t be adjusted to get the coverage you need, consider shopping for a different company. And if your agent can’t answer your questions, consider shopping for a different agent. This type of consultation is the agent’s job. It’s why you pay him! Don’t you deserve to have your business properly protected?