Personal Coverage

Archive for the ‘General Information’ Category

Driving, Drinking and Kids Do Not Mix

Friday, August 27th, 2010

We all know that there is and has been an all out war against drinking and driving across the country. No secret here for sure. Whether you operate or are a passenger you need to care. The Child Passenger Protection Act passed on 12/18/o9 here in NY makes the offense even more serious when children under the age of 16 are in your vehicle. The law is also know as Leandra’s Law due to a very unfortunate accident that occurred October 2009 in NYC.

When this law was passed it had another component with a different time frame of implementation. On August 15, 2010 the law triggered new additions to the existing alcohol related laws. This part of the law applies whether or not a child under the age of 16 is in your car or not. It also applies to first time offenders. The long and short is offenders will have to pay to install and maintain devices that are integrated into the ignition system of the car. These devices would require the driver to essentially take a breathalyzer before the car will start. Failure to comply or circumvent the law yields more bad things for the offender or an accomplice trying to aide the offender.

You can view the particulars on the NYS Division of Criminal Justice Services site. I’m sure there are other places as well. The link is http://criminaljustice.state.ny.us/pio/press_releases/2010-7-20_pressrelease.html for more information.

Insurance companies are tough on alcohol related offenses as well. With the advent of Insurance Scores (credit and loss based scores that determine pricing) it is less clear as to the dollar value of the offense but the underwriting is still difficult. Many companies will not entertain the risk which forces drivers with these offenses to carriers who are comfortable with it. Those carriers also tend to charge more.

If you have or want to obtain a Personal Umbrella Liability policy alcohol related offenses can make that problematic as well.

Drinking an driving does not mix for a whole host of reasons. Leandra’s law further ups the consequences for parents, guardians, and custodians because you are reported to the Statewide Central Register of Child Abuse and Maltreatment as well.

Some stats from the NYS Division of Criminal Justice Services: 311 arrests under Leandra’s law through July 10, 2010. Of that number 117 were women and 194 were men. Looks as if the counties of Erie, Westchester and Suffolk had the most activity but arrests have been made in 51 of the states 62 counties.

If you have not checked this out you should.

Posted in Car Insurance, General Information | Comments Off

Your Duties After a Loss

Thursday, 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

So you think your Home Business is Covered

Thursday, 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

Holes in Your Auto Insurance

Tuesday, 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

Choice is everywhere but what did you just buy?

Wednesday, 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