Your Duties After a Loss
December 10th, 2009
Insurance contracts have conditions that dictate what you the policyholder is responsbile for in the event of a claim. These conditions vary by policy so I will generalize to some degree. The important thing is that you know they exist. Knowledge is power and it helps to demystify some of the claim process especailly if you have little experience with insurance claims.
The first on the list is prompt notice of the claim to your insurance company. When you notify an agent you have in essence notified the company. In our experience property claims can be discussed prior to a formal report being made to the insurance carrier in terms of how much damage has been sustained in relation to a deductible. We also help if a client has a prior claim history to discuss the potential of a new claim causing an issue with pricing or renewability. Liability claims and property claims that are not clear as to coverage will be reported as it is our obligation to the insurance company.
Protect property from further damage is another condition to which you should pay attention. If you have a property claim (auto or home) take steps to protect your property and keep records of the money you spent to do it. Insurance companies will typically reimburse for those expenses but if you take no steps to protect the property you could run into problems with your settlement.
Cooperate with the insurance company in the investigation of your claim. Sounds pretty straight forward but we have had claims closed with no payment just because the consumer did not cooperate with the company.
The “often as we reasonably require” condition which lists items such as medical exams, ability of claims personnel to view your property, examinations under oath and access to pertinent records.
Submission of a proof of losswhich essentially sets forth your version of the claim. This proof of loss should note the time and date of the loss. The insurable interests involved and any other insurance that may be in effect. Estimates, reciepts and an inventory of items (property loss) will be part of this submission. Getting this done accurately and timely speeds up the payment process so make the time to complete this document.
While I have generalized these conditions will be found in most insurance contracts. If you have a claim with our agency we will walk you through the process and check in on a regular basis to be sure there is no confusion. Knowing these conditions will better prepare you and increase the likelihood of a satisfactory settlement.
Posted in Claim Information, Why choose us for your insurance | Comments Off
Renters Insurance Gets No Respect
November 19th, 2009
It has been in the news over and over again. That’s a good thing because repetition may be what it takes to get the message into the hearts and minds of renters AND Landlords. Renters insurance is one of the most underutilized insurance products on the market today. It is easy to obtain, offers some great coverages and is very inexpensive.
News articles that appear in newspapers or personal finance magazines always talk about the importance of protecting belongings as well as picking up some protection against lawsuits. While this is certainly the crux of the product we would like to mention some of the situations that we often see where renters insurance fills coverage gaps that exist because of an individuals living situation.
The most common is the apartment rented by two or more people. Next we see a home owned by one person and their partner lives in the home as well. Lastly is a homeowner who rents out a portion of their house. What all these living situations have in common is the potentail for one person to have limited coverage or no coverage at all.
Homeowners insurance (Renters insurance is a form of Homeowners insurance) will provide some coverage at the discretion of the insured for property of others while ON the residence premise of the insured. So if in our first two examples the policyholder chose to have the coverage of their partner/roommate covered an insurance adjuster might go along with it. I can’t speak for all homeowners policies on the market today so reading your policy would be critical. Although this sounds nice there is no coverage for OFF premise exposures for the partner/roommate. So if something is stolen from a vehicle or lost on vacation coverage would not apply. This also does nothing for Liability coverage or Loss of Use coverage which pays hotel and restaurant charges if the apartment/home cannot be lived in due to a covered loss. The other issue is in a severe loss the policyholder might not have enough insurance for their own items let alone the belongings of a roommate/partner. Bottom line is for the partner/roommate relying on the policy of the insured for coverage is not a great idea and renters insurance solves all the problems.
For those who rent out a portion of their home exclusions exist for roomers, boarders and tenants of the insured. The choice of extending coverage is not usually an option. If family members happen to be the roomers or boarders coverage could be afforded. So for unrelated parties a Renters policy works nicely to fill the coverage gaps and gives the landlord/property owner the piece of mind that the activities of these parties are insured elsewhere.
The cost of Renters insurance can usually be had for under $150 per year and often times we see policies that are $100 or less. Call us if you would like to discuss your individual situation or check out or site on Renters Insurance at www.InsureRenters.com.
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So you think your Home Business is Covered
October 15th, 2009
If you own a home based business you may find your Homeowners insurance falls short in terms of coverage. Home businesses are substantial in number. Statistics I have seen put the number in the millions and the sales in the billions.
Homeowners insurance was not designed to cover business exposures. In fact there are exclusions and limitations in the homeowners policy. Many policies consider a business a trade, profession or occupation engaged in on a part time, full time or occasional basis. There are also compensation amounts that may be as low as $2,000 that further refine the definition. The definition of business may vary depending on the carrier that writes your insurance but suffice it to say very few activities will fit through the definition to obtain coverage.
Once an activity is defined as a business your homeowners policy will have very little liability and property coverage to offer. Business property may be limited to $2500 while in your home and $500 while off premise. Again, these amounts may vary depending on which company you have chosen for coverage. Liability arising from the business will be excluded. Riders or endorsements can be attached to the home policy to work around the business definition but they should be explored carefully to be sure they fit your situation. If your business is a significant percentage of your income your home policy will offer no way to cover a loss of business income in the event of a loss at your home.
A better way to handle the exposure is to purchase a policy specifically designed for home based businesses. Some inusrance companies can even endorse a rider onto an existing home policy to cover the exposures. These home business policies are structured very much like a traditional commercial policy and often times have the advantage of lower minium premium levels than the commercial market. These policies can have additional insureds added if required by contract and offer higher limits of liability. Policies usually are underwritten based on the type of business. If your business fits into one of the underwriting categories the pricing can be done quickly. If for some reason your business is not an acceptable category then you may have to purchase a traditional commercial policy.
Insurance for home based businesses may be less expensive and easier to obtain than you think. Reliance on your homeowners policy to cover your exposures as a businessperson may not be the most practical way to go.
Posted in Business Insurance, General Information, Home Business Insurance, Homeowners Insurance, Why choose us for your insurance | Comments Off
Life Insurance-Just do it for your Family
October 6th, 2009
Life insurance can be confusing without question but don’t let that stop you from going forward. I will bet you either know someone or know someone who knows someone that either benefited or could have benefited from life insurance. I personally have seen the upside to having it and the downside for not. Sudden death of a spouse, parent or child is devastating on an emotional level but if finances become very tight in conjunction with the pain felt from the loss it can be unbearable for your survivors.
Basic life insurance protection should be in your financial tool bag. The great thing about life insurance is options abound for trying to fit coverage into your budget. Below I will outline the basic types of life insurance and how the process works.
Think about life insurance in two parts. The first is cash value products which means you own the contract and have the ABILITY to build cash in the product. You don’t have to but you have the option. The second is term insurance which is like renting an apartment. The contract is yours for a period of time and it has no ability to build cash value.
So option one, cash value products have some benefits over term. First they can build cash if you choose. This can be nice because the true cost of the product is the net of the premiums paid and the cash accumulated in the product. They also can be structured to last your entire life and have some flexibility for increasing you limits and amending your payment terms if needed. You can also borrow money from them if there is cash available to do so. Downsides are they can be complicated for some to understand and will require more up front capital to fund.
Option two is term insurance. The pro’s to term insurance are it is less capital up front, easy to understand and works nicely if you have certain obligations that have time frames to them such as a mortgage or college expenses. Another benefit is after the term is up you can transfer all or some of your death benefit to a cash value type product with NO medical underwriting. Downside is your premium paid is a true cost with no cash savings offset. The coverage will also become very expensive to keep after the initial term is over and buying a cash value product after the term will be priced at the age you are when you convert not when you purchased the term insurance.
Another option, which we often suggest, is combining the two in a layered approach. For instance, a lower base amount of coverage in a cash product and one or two term policies of varying lenghts to protect your family from the financial consequences of an unforseen death in the family.
Regardless of how you do it make sure you get it done. The process essentially is pick an amount of coverage or an amount you can pay and we work up some illustrations. Once the choice is made we fill out an application a service will come to you to take medical information and blood/urine samples. Once approved you get a policy and pay your premium. All in all plan on five to seven weeks from start to finish. If you are replacing an existing policy it will take longer due to NYS regulations but we will help you every step of the way.
Get started tody if you have no life insurance or very little because your family will thank you for at least making the financial end of a bad situation a lot better.
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Holes in Your Auto Insurance
September 29th, 2009
It is a pretty common occurrence when myself and the PCI staff (Lisa & Linda) find these coverages short changed in an Auto policy. It is our policy to adhere to standards when it comes to the following coverages to ensure consistency for our clients.
The first “hole” is Supplementary Uninsured/Underinsured Motorist (SUM) coverage. I won’t bore you with all the details but suffice it to say this is a coverage that can come in handy if you (or anyone considered an insured for this coverage) are INJURED due to the negligence of another driver that has no insurance or not enough for you to recoup damages. So it pays you not the other guy. Uninsured motorist coverage is a mandatory coverage in NY so you will have that but SUM is optional and often missed. You can purchase limits up to the limits you have purchased for Bodily Injury coverage to Others. By and large the coverage is inexpensive and we often find it is either left out or the limits purchased are not the most that can be had by the consumer.
The second “hole” is low limits for Personal Injury Protection (PIP) or No Fault. This coverage pays you for medical bills and associated work loss if you are injured in an Auto accident. Remember, this is for medical AND work loss. PIP is considered the first place to go for medical bills if the injury is Auto related. Health insurance can work but often has copays, deductibles and coinsurance that is not present in PIP. Most health carriers will refer you back to your Auto carrier for coverge anyway. State mandated limits start at $50,000 but if you purchase more coverage (APIP-Additional PIP & OBEL-Optional Basic Economic Loss) you could buy up to $175,000. The mandated coverage is not only lower but the monthly limitations for work loss are much lower than if APIP is purchased.
These are two items we see on a routine basis. My belief is they get left out to save premium since many buyers of insurance focus on the bottom line premium number. It is easy for these coverages to get lost in the buying process. Unless you ask for these coverages you may find your quote comes with only state mandate amounts.
Take a look at your policy and check these coverage amounts and as always if you have questions feel free to give us a call.
Posted in Antique/Classic Car Insurance, Car Insurance, Why choose us for your insurance | Comments Off
Man’s Best Friend and Insurance
September 21st, 2009
As you can tell by the title this article is about dogs and how they can use your insurance policy for more than a crate liner. According to the Insurance Information Institue the average dog bite claim in 2008 was $24,461 with 15,823 claims reported in the same year. A tidy sum of $387.2 million was paid by insurance companies for dog bites in 2008.
You can search the internet and find some very useful legal information regarding dog bites. New York takes a mixed approach in handling dog bites with some elements of the “one bite rule” in combination with strict liability provisions. There may be other avenues for recovery as well that do not pertain to the liability provisions above so the advice of an attorney should by obtained.
The liability portion of your Homeowners, Condo or Renters policy provides not only financial protection for judgements against you the dog owner but also provides defense coverage if an attorney is required to defend your case. Keep in mind the liability portion of your policy is the cheapest part so buy all that you can. Limits range from $100,000 to $1,000,000 depending on the insurance company. Also don’t forget about a Personal Umbrella Liability policy as another protection mechanism.
We have had some dog bite claims in our agency and unfortunately a couple involving children. Settlements have ranged from $5,000 to $60,000 not including defense costs. Because these claims can be expensive most insurance companies request information on what type of dog you have and if it has a bite history. Certain breeds pose an issue with many insurance companies and could make it difficult to purchase a new policy so if you have questions give us a call and we can give you more details.
The bottom line is dog bites can be expensive and with the cost of medical care and plastic surgery the way they are the opportunity for a very large claim is there. Be careful who your dog interacts with and be realistic about it’s temperament. Be especially careful when children play or approach your dog because serious wounds can happen very quickly.
Posted in Condominium Insurance, Homeowners Insurance, Renters Insurance | Comments Off
Choice is everywhere but what did you just buy?
September 16th, 2009
I’m sure you could rattle off a bunch of insurance company names when asked. Between television, radio, internet and direct mail the options to purchase insurance are many. Some commercials are catchy without a doubt but just remember your not buying a commercial your buying a product that protects you from the financial consequences stemming from the risks of everday life. An educated buying decision may take a bit longer but could save you a lot of money someday. Educating you is our top priority. Knowledge is power so be informed. Your insurance is a legal contract not a front and back of a page in big print with a lot of pictures. Insurance contracts are not rocket science but they are technical and require a fair amount of experience to navigate. Go with an agent that will explain the coverage in easy to understand terms to help you make the right choice. Happy shopping!
Posted in General Information, Why choose us for your insurance | Comments Off
