What do I give up by not using a licensed independent agent to purchase insurance?

The disadvantage of not using a licensed agent to purchase insurance is that the policyholder does not receive as much, or often any, personal service. A licensed agent with whom there is direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. Without an agent to act as your personal advocate during the claims process, you are left to take care of the details on your own. You may be unsure who to contact at the insurance company or who you can really trust to help you during the times in life when you need help the most. Without an agent you are on your own to absorb the frustration and expense of resolving your problems.

The disadvantage of not using a licensed independent agent to purchase insurance is that agents who only represent one insurance company can only offer insurance based on that one company’s policies and rate structures. As an independent agency we represent numerous insurance companies and are deeply familiar with the intricate differences between them. Therefore we are able to match your needs with the best company to meet those needs and your budget without having to sacrifice coverage in order to find affordability.

What’s the risk in not using an agent?

Many insurance companies that can be called directly as a customer fail to tell you that the “call center personnel” who will take your information and issue the policy ARE NOT licensed to sell insurance, therefore lacking the professional knowledge to guide you toward an acceptable level of protection. These companies are conducting business using a loophole within the law which allows the company to have one license while everyone else works without it. Going this route can place your financial future at risk because unlicensed personnel are trained to simply sell you a policy without being aware of what “real” protection means.

For instance, imagine you own a $150,000 home and your auto insurance policy’s liability limits are $50,000. When you purchased the policy you were told this was plenty of protection considering your state’s minimum requirement for liability is $20,000. Yet if you have an accident and are sued for $200,000 your policy is only going to pay out $50k, leaving you responsible for the remaining $150k. Since your home would cover the difference, a court judgment could force you into selling your home as a way to settle the suit. If your policy’s liability limits had protected you at a minimum of $200,000, the policy would be paying for the total suit.

Because direct writers are typically located nowhere near where you live, many won’t hesitate to sell you a policy with low liability limits as a way to simply make the policy cheaper while convincing you to buy it. Leaving you extremely vulnerable to financial disaster.

Looking for an agent with your best interests at heart? That’s exactly why we’re here.

 

Recreational vehicles (RVs) can be a fun way to see the country and spend time with your family. However, because they’re bigger and heavier than an average car, there are additional hazards that come with owning and operating an RV.

Many RV accidents can be avoided by following these helpful tips:

• Know the weight capacity of your RV.
• Perform a complete pre-trip inspection. Check the tire pressure, tread depth, headlights, tail lights, turn signals, belts, oil levels, hitch and other towing equipment, and windshield wipers before leaving.
• Know the height of your RV and pay close attention to overhangs and clearance heights.
• Watch your speed, especially at night and during dusk.
• Slow down on blind curve areas of the roadway.
• Use your high beams at night to see animals and other obstructions.
• Always wear a seat belt.

Careful planning can help keep summer camp fun and safe.

Spring is a busy season for parents reserving spots for their children in summer camps and activities, and many health, tennis, racquet and athletic clubs are starting to ramp up for summer.

If you are a club owner, you are probably finalizing the types of camps you will offer. Once you decide among sports, arts and crafts, adventure or other activities and determine the age groups you will serve, you can move on to other details. Here are some areas of primary concern:

Hiring/Leadership

Putting the right person in position to lead your camp programs is vital. You may not be around every minute of every camp day, and you want someone in charge who shares your vision and understands the mission of your organization.

The right leader can:

• manage staff expectations
• keep everyone organized and on task
• react to a quickly changing environment
• keep safety a top priority
• communicate well

Get your leadership team in place early, and then involve them in hiring and training any remaining staff.

Training

Training for camp leaders and staff should cover:

• emergency medical response – defibrillator (AED), cardiopulmonary resuscitation (CPR) and first aid
• your established camp policies and protocols
• swim safety, including lifeguard training
• emergency weather training
• discipline policies
• abuse awareness and protocols
• communication plans and other safety protocols for field trips and activities

Partnering with recognized community organizations – such as the Red Cross for lifeguard or CPR training, child advocacy groups, local hospitals or local police, fire and EMS services – can increase the credibility and effectiveness of your training. Make sure your staff members – especially younger members – gain some basic understanding of childhood development and behavior.

Activities

Pools – Define expectations and responsibilities for your camp staff and lifeguards to assure smooth swim times. Be clear if camp staff need to remain in the pool area to provide extra supervision while lifeguards are in charge.

Field Trips – A cornerstone of most summer camp programs, field trips also present some of the biggest safety challenges. Unfamiliar locations with unknown hazards – along with the added element of contact with the public – call for heightened awareness and protocols. Increase staffing or add volunteers to reduce the ratio of children to adults. Take frequent head counts and position staff members where they are most needed. Protocols should prevent a sole staff member or volunteer from being alone with children.

Transportation – Whether you use parent volunteer drivers, own or lease vans or buses or contract a third-party bus company, have measures in place to assure safety.. When using a bus company, your contract should hold the company liable for any injury that occurs while campers are on the bus. For in-house transportation, hire trained drivers and check their driving credentials.

Allergies – As you prepare for summer camp thoroughly review participant applications for allergies, medical conditions or personal issues. Involve staff in action planning and in sit-down meetings with parents and guardians to assure each child has a safe and fun summer.

Equipment – Inspect the play set and other equipment, picnic tables and anything that may have been in storage since last summer to make sure everything is in good working order.

Providing a wonderful camp experience for the children you serve can be a rewarding experience for you and your staff, create memories for the youth and help cement the families as dedicated, satisfied members of your club. Planning for the expected – and the unexpected – can help everyone involved confidently focus on the fun!

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article.

Count the doors between your room and the exit.

An estimated 3,900 hotel and motel fires are reported each year in the United States. Use these tips to ensure that you stay safe during your vacation or business overnight.

Plan Ahead

• Choose a hotel or motel that is protected by both smoke alarms and a fire sprinkler system. The U.S. Fire Administration provides a master list you can search to find hotels and motels that adhere to life safety requirements.
• Pack a flashlight and keep it on your nightstand in case you need to escape in the dark.

Familiarize Yourself

• Read the fire evacuation plan carefully. If one is not posted in your room, request one from the front desk.
• Locate the two exits nearest your room and fire alarms on your floor.
• Count the number of doors between your room and the exits to assist you in the event of an emergency evacuation.

Escape Safely

• If the fire is in your room, get out quickly. Close the door, sound the alarm and notify the front desk.
• If the fire is not in your room, touch the door with the back of your hand to see if it is safe to leave.
  • If your room door is hot, do not open it. Instead, seal the door with wet towels or sheets. Turn off the fan, heater and air conditioner. Call the fire department to give your location.
  • If the door is cool, open it slowly. Be ready to close it quickly if there are flames on the other side. Take your room key with you in case fire blocks your escape and you need to re-enter your room.
• Stay low by crawling on the ground, where the smoke is the least dense, to the nearest exit.
• Always use a stairwell, never an elevator.

Source: U.S. Fire Administration website. Download the complete USFA Hotel Fire Safety handbook.

Here’s a little quiz. Where is your Social Security card right now? What about your passport? Your birth certificate?

Choose one:

1. In the safe deposit box at my bank or in a locked file cabinet or fire-rated document chest at home
2. I’m not sure, but they must be around here somewhere
3. In my purse, wallet or briefcase

If you answered anything but Option 1, imagine your favorite television game show buzzer. Try again!

Passports, birth certificates and Social Security cards are “SUPER IDs.” With these items in hand, a criminal can easily create bogus accounts in your name or hijack legitimate accounts you own. In fact, with these items, criminals can assume your identity and do just about anything they want, costing you money, reputation and your precious time to straighten everything out.

The best way to thwart criminals is to leave at home any documents you don’t immediately need. Lock them in a file cabinet, a home safe or a safe deposit box at a bank. Sure, when applying for a new job or in some other situation where you need proof of citizenship, you’ll need to carry primary identification with you. But lock these documents up when you get home.

Don’t make it easy for criminals. A purse or briefcase is a prime target.

Along those same lines, don’t leave purses, briefcases or backpacks unattended or visible in your car.

It is also a good idea to make photocopies, front and back, of all ID cards, credit cards and other items that you may carry in your purse or wallet. This information will be very helpful in the event the card is misplaced or stolen.

It goes without saying that one area’s definition of a blizzard is not necessarily another area’s definition. Yet all things being equal – when it’s best to stay home then it’s best to be prepared.

Long-range weather predictions for 2014-2015 suggest another cold winter is on its way across much of the U.S. Severe winter weather ̶ including blizzards ̶-is a reality. So how does one prepare for a blizzard?

The first inclination for many of us is to drive to the closest grocery store and stock up on the essentials to help carry us through the upcoming event! While adequate provisions are an important consideration, there are a number of steps you can take to protect yourself and your family:

• Pay close attention to weather warnings and alerts so you know the storm’s timeline.
• Charge electronic devices. Now is the time to adequately charge your cell phone, laptop
• or other electronic devices. Once charged, try not to use them unless absolutely necessary. You may want to consider purchasing a hand-crank charger to serve your devices. A battery-operated radio is also a good investment.
• Stay inside and off the roads. You risk being stranded in your vehicle, which could be life threatening. In addition, municipalities typically ban travel in extreme winter weather.
• Have an adequate supply of non-perishable food already stored at your home. Don’t wait until the storm hits, because supplies in stores could be depleted. Remember to plan for pets.
• Have an adequate supply of water. Experts suggest a gallon of clean drinking water per person, per day. Again, don’t forget pets!
• Blankets and warm clothing seems obvious. However, you will need enough blankets to keep warm in an emergency in case your normal electric or gas heat is disrupted. Consider hooded sweatshirts and mittens.
• Have a sufficient supply of prescription medications on hand.
• A camping stove or grill can be a wise investment. However, be careful to properly ventilate when cooking with any combustible fuel to avoid carbon monoxide poisoning.
• You may want to consider an emergency electrical generator as an alternate source of power.
• If your home sustains any damage as a result of the storm, please contact your insurance agent or representative immediately to file a claim.

With any luck, the storm will be short-lived and your supplies will be sufficient for the duration of the storm. When the danger has passed, remember to restock on non-perishable food and other supplies. If appropriate steps are taken, the memory of the storm will be just that, a good memory.

More information about planning for extreme weather is available in the Federal Emergency Management Agency’s How to Prepare for a Winter Storm guide.

These days it seems most people find it convenient to use credit or debit cards rather than carry cash or write checks for each purchase. Recent headlines concerning account information breaches should be of concern to all card users.

Important differences between credit cards and debit cards may affect your decision about which to use for your purchases. Keeping these differences in mind when making purchases might help you protect your money if your accounts are hacked. Debit cards act like an electronic checkbook. When you use a debit card, money you have in your bank account is immediately “debited” and transferred to the merchant where you used the card. When you use a debit card, you are granting access directly to YOUR money in YOUR account.

Credit cards draw the bank’s money from a line of credit the issuing bank has granted to you. In other words, when you use your credit card, you are taking a loan of the bank’s money – and the merchant (or cybercriminal) does not have access to YOUR money.

Another significant difference between these two types of cards is that debit cards may allow only two days after a fraudulent debit has been taken from your account for you to challenge that debit, while the time to challenge fraudulent credit card charges is more generous.

You can tell the difference between the two types of cards by how you use them. If you need to enter a personal identification number (PIN), the card is a debit card.

While it is bad enough to have a credit card account hacked, at least you still have your money available to you while you fight the fraudulent charges. However, when it is YOUR money that is stolen when using a debit card, you no longer have access to that money while you fight the debit from your account.

The Federal Deposit Insurance Corporation, the government agency that insures deposits to banks and thrifts, offers a more detailed explanation of the differences between debit and credit cards, as well as a helpful chart describing the two types of cards.

Source: cinfin.com

National Teen Driver Safety Week is October 19-25.

It’s an exciting time in teens’ lives when they first begin driving, but it’s also an extraordinarily dangerous time as distractions seem to be everywhere. According to the National Highway Traffic Safety Administration (NHTSA), motor vehicle crashes are the leading cause of death for kids and young adults ages 14 through 18.

Despite this, the NHTSA says just 25 percent of parents have a serious talk with their kids about the key components of safe driving.

So, with National Teen Driver Safety Week coming up October 19-25, here are five recommended rules to spell out before your teen gets behind the wheel:

1. Absolutely no alcohol.
There is no legal limit for alcohol when it comes to teen drivers. Having any amount of alcohol in their system is illegal for all those under 21, everywhere. On average, according to the NHTSA, 25 percent of deaths in motor vehicle crashes involve a teen driver with a blood-alcohol content of .01 or higher.

2. Seat belts required.
Drivers and passengers ages 16 to 24 historically use seat belts less often than other groups. Let teens know that seat belt use is non-negotiable. It’s the easiest way to protect themselves in a crash. And, set a good example by buckling up yourself.

3. Never speed.
Teenagers may like to push the limits, but the road isn’t the place to do so. Speeding doesn’t simply put them at risk for a ticket. It increases the risk of a deadly accident as well.

4. No calls, no texts.
It’s never a good idea for anyone to call or text while driving, but, because teens lack experience behind the wheel, distracted driving is all the more risky. Reaction times are slower when someone is distracted. Even worse, sending or reading a text means a driver’s eyes aren’t on the road.

5. Only one passenger (or zero, depending on your state’s licensing guidelines for young drivers).
As the number of passengers rises, so does the risk of a fatal crash, the NHTSA says. Think back to when you were a teen driver — how different were your actions when you had friends in the car versus when you were alone?

Let young drivers know that driving is a privilege and that you’ll take away the keys if they don’t drive safely. Then, have regular conversations about driving safety and other issues to ensure the lessons don’t fall by the wayside. Soon, you’ll have another trusted and responsible driver in the family – maybe even one that qualifies for a car insurance discount.

With football season already upon us, can winter heating season be far behind? Whether you are maintaining a home heating system or equipment at your business, preventive maintenance is important, especially for hot water or steam heating boilers.

Heating boilers can cause extensive damage due to explosion and can be more costly to replace than gas or electric furnaces.

Neglected maintenance can be costly for owners who may overlook this important and expensive equipment. A modest investment in a sound maintenance program for gas furnaces, hot water boilers, steam boilers and high-efficiency boilers can return dividends all winter long for owners or operators.

For many business owners or homeowners, this can mean fewer emergency repair bills, more efficient operation (lower fuel costs) and longer equipment life.

YOUR PRESEASON CHECKLIST

For hot water or steam boilers:

• Clean the internal (water) side of the boiler
• Inspect and clean burners
• Ensure that low water fuel cutouts are functioning properly
• Inspect and test all controls and safety devices
• Clean or replace all air inlet filters as needed

In addition, make sure the automatic dampers for outside air are working properly so the boiler room does not freeze due to broken windows or damper control issues.

For gas furnaces:

• Inspect and clean burners
• Inspect and test all controls and safety devices
• Check the combustion blower housing for lint or debris and clean as needed
• Clean or replace all air inlet filters as needed

Ensure the inlet/return air and exhaust flues cannot be blocked by snow or pest infestation, such as a bird’s nest.

DURING THE HEATING SEASON

Test the low water cutout control on any steam heating boiler at least once each week, and test other safety devices regularly.

Owners or operators who are unfamiliar with controls and safety devices can hire a reliable service organization to check and service the equipment prior to and during the heating season. Most heating, ventilation and air conditioning contractors will inspect and check over 20 different items on a gas furnace during their inspection.

Remember, the best offense is a good defense when it comes to taking care of your heating equipment! A planned preventive maintenance program may be just the ticket.

For over twenty-three million students nationwide, the school day begins and ends with a trip on a school bus. The greatest risk is not riding the bus, but approaching or leaving the bus. Before children go back to school or start school for the first time, it is essential that adults and children know traffic safety rules.

Drivers

• When backing out of a driveway or leaving a garage, watch out for children walking or bicycling to school.
• When driving in neighborhoods with school zones, watch out for young people who may be thinking about getting to school, but may not be thinking of getting there safely.
• Slow down. Watch for children walking in the street, especially if there are no sidewalks in neighborhood.
• Slow down. Watch for children playing and congregating near bus stops.
• Be alert. Children arriving late for the bus may dart into the street without looking for traffic.
• Learn and obey the school bus laws in your state. Learn the “flashing signal light system” that school bus drivers use to alert motorists of pending actions:
• Yellow flashing lights indicate that the bus is preparing to stop to load or unload children. Motorists should slow down and prepare to stop their vehicles.
• Red flashing lights and extended stop arms indicate that the bus has stopped, and that children are getting on or off. Motorists must stop their cars and wait until the red lights stop flashing, the extended stop sign is withdrawn, and the bus begins moving before they can start driving again.

Children

• Get to the bus stop at least five minutes before the bus is scheduled to arrive.
• When the bus approaches, stand at least three giant steps (6 feet) away from the curb, and line up away from the street.
• Wait until the bus stops, the door opens, and the driver says that it’s okay before stepping onto the bus.
• If you have to cross the street in front of the bus, walk on the sidewalk or along the side of the road to a point at least five giant steps (10 feet) ahead of the bus before you cross. Be sure that the bus driver can see you, and you can see the bus driver.
• Use the handrails to avoids falls. When exiting the bus, be careful that clothing with drawstrings, and book bags with straps don’t get caught in the handrails or doors.
• Never walk behind the bus.
• Walk at least three giant steps away from the side of the bus.
• If you drop something near the bus, tell the bus driver. Never try to pick it up because the driver may not be able to see you.

• Teach children to follow these common sense practices to make school bus transportation safer.

Source: nhtsa.gov

Test the Rule of 3.6%

How do you know if you own enough life insurance? Life Insurance can never replace a husband, wife or parent, but for most it’s intended to restore the income a family depends on in a loved one’s absence. The Rule of 3.6% might be helpful in answering how much insurance you should own.

Here is the simple calculation:

Let’s say you own $250,000 in life insurance, $120,000 of which is intended to pay off the mortgage at time of death. Your beneficiaries would be left with $130,000 to invest or allocate for other purposes. You may think, “That looks like a proper sum.” But how can you evaluate how this remaining $130,000 might provide toward the monthly income your spouse and children will need?

The Rule of 3.6% is a simple guide to estimate the approximate monthly amount your life insurance proceeds might provide if invested with a return of 3.6%.

Test the formula for yourself:
Take $130,000 and cross out the last four numbers. That leaves 13. Multiply 13 by 30. That equals $390 per month.

If you find this monthly income amount surprising small, you are not alone. Even when major family debts are paid off, a monthly income amount this small may present a financial challenge that is too great for your family to overcome.

Most people never prepare to leave their loved ones to struggle, but very few evaluate their life insurance needs with this simple formula. With so much at risk, why not ask us for more information? You may be pleasantly surprised by the affordability of different life insurance choices.

Source: Note: The investment return example of 3.6% is hypothetical and for illustration purposes only. It does not indicate or assume any specific account or investment recommendation. This calculation does not take into consideration all the factors considered in a complete analysis.

With schools now full of activity for the fall, school buses are once again traveling the roads.

While statistically school buses are the safest method to transport children to school, it’s a good time for parents to remind children to follow safety rules while on the bus and at the bus stop.

At the bus stop:

• Allow plenty of time to arrive at the bus stop. Children hurrying to catch the bus may make careless mistakes that could lead to injury.
• Always walk, DO NOT RUN to the bus stop.
• Walk on the sidewalk. If there is no sidewalk, walk on the left side facing traffic.
• Stand at least six feet away from the curb to be visible to the bus driver. For most children, this would be approximately three big steps. The bus driver sits high in the seat and may not be able to see anyone standing on the curb.
• Never speak to strangers at the bus stop, and never get into a car with a stranger.

On the bus:

• Walk directly to a seat and sit down.
• Do not hang out the windows or throw things on the bus.
• Always stay seated when the bus is moving – wait until the bus has stopped before retrieving dropped items.
• Talk quietly so the bus driver is not distracted.
• If there is an emergency, listen to the driver and follow instructions.

Exiting the bus:

• When exiting the bus, walk at least six feet away from the door (three big steps) to be visible to the driver.
• Stay away from the bus wheels, and watch out for moving cars.
• Never return to the bus to get a forgotten item. The driver may not see someone coming back to the bus.

Drivers who share the road should also be especially alert:

• Be aware of when school begins and ends. Watch for children going to and from the bus.
• Follow posted speed limit signs for school zones.

• Never pass a stopped school bus if the stop sign is extended or the red lights are flashing. Wait until the lights stop flashing and the bus begins moving again to proceed.More information about safety for school bus riders and drivers and for those sharing the road is available from the National Highway Traffic Safety Administration.

Regardless of your location, the summer months are usually the prime part of the year for natural disasters. One of the best and most affordable things we can do to see ourselves through a disaster is to be prepared and one great way is through the use of apps on our phones and devices.

Both Android and Apple mobile devices offer a wide variety of apps that users rely on daily. Because of this, these devices have become an integral part of our lives and would no doubt be on hand if disaster struck. The upside to this is that there are apps that can help you and your family as well as work associates whatever the disaster. Here are three of the best types of disaster related apps out there in order to prepare.

Weather Apps

It is always a good idea to know what the weather forecast is for your local area. This can help you predict what could happen and even prepare your business should say a big storm be rolling in. There are a wide variety of weather apps out there and it can be difficult to actually pick which is the best to use. Here are a few to look at first:

1. The NOAA Weather Radio – Available on iTunes for iPhone and iPad users, this app is the official app for the National Oceanic and Atmospheric Association. When installed, you can receive local weather forecasts based on your location and storm or severe weather warnings pushed directly to your device. The app can be found on iTunes and costs just a few dollars.
2. Weather Underground – This app is among the most powerful weather apps out there. Using a wide variety of weather stations and user submitted weather it is up to date and able to offer accurate forecasts. With a Weather Radio feature, and push notifications of weather alerts, you can easily track potential storms. There is also the WunderMap which has radar, reports and IR Sat views as well. The app is available for free on Google Play and iTunes.
3. Local Weather Apps – Many TV stations and weather organizations have localized weather apps that focus on just local conditions. If you live in a severe weather prone area, it would be a good idea to see if your local TV station has a weather app, as this could be the quickest way to receive relevant updates.

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Red Cross Apps

The Red Cross has a number of excellent survival oriented apps that could really come in handy for when a disaster strikes. These apps provide tips on how to prepare yourself and your family, as well as buildings for disaster, and what to do during and after a disaster strikes.

The best part is that most of the information is available offline, so you will have access to it even if cell networks are down. Some of the apps even provide weather alerts that will sound even if the app isn’t open, alerting you about any impending danger.

These apps are all available for free on Google Play and iTunes. The best thing to do is to visit the Red Cross website and look for the apps that are relevant to your local area e.g., if you are in the mountains the Forest Fire and First Aid apps may help. The apps are all free and can be downloaded by clicking the links for your device’s app store on the Red Cross site.

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Social Media Apps

Social media services could prove to be a good way to connect and communicate during a disaster. One of the biggest added advantages to using social networks is that the servers that host the service are located around the world, so the chances of the service being down is fairly slim. If you have Internet access, you will be able to access the service.

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A few simple tips to help you leverage your mobile device during a disaster

1. Install relevant apps – In order to be prepared, you should install the apps necessary to communicate during a disaster, along with a weather app and if necessary a survival app.
2. Ensure your contacts are up to date – To be sure, you should periodically update your contacts. Should anything happen you will know how to contact people and have a higher chance of being able to get in touch.
3. Establish procedures to follow during a disaster – This is arguably the most important preparation you can do. Take the time to establish procedures you and your family should follow during an emergency. Include where people should meet, backup plans, contact suggestions and the roles you expect your everyone to take.
4. Keep your batteries topped up – Mobile devices rely on batteries to operate, and during a disaster you may be without a power source for an extended amount of time. Therefore, Minimize use during a disaster. Ensure your batteries are full, or charges as often and has high as possible.
5. Invest in a good power bank – Power banks are useful tools that are essentially big batteries. You can charge them up then use them to charge your devices. Take a look for one that is at least 9000 MHZ, or higher. The higher the number the bigger the charge.

Moving generally indicates an exciting time of transition and life change- whether it’s moving from home for the very first time to an apartment or downsizing because the kids have all moved out. Whether you’re handling the move yourself with the help of friends and family or whether you hire professional movers, moving can be as stressful as it is exciting, and one way to relieve some of that stress is knowing that your possessions are protected during the transition. Whether your move is across the street or across the country it’s important that you discuss your upcoming move with your independent insurance agent.

Insuring Your New Place (And Your Stuff)
First of all, your belongings are protected by your homeowners or renters insurance policy against damage and loss. But it’s important to know that when you move from an apartment to a house or house to house or apartment to apartment or condo to… well, you get the idea… your homeowners or renters insurance won’t follow you and your property to the new place. Moving to a new home means that the risks to your property change, and as your risks change, so should your insurance.

Since you have coverage for the contents of your home under a standard homeowners or renter’s insurance policy, the best option to protect those is to make sure that there is no gap of time between the expiration or cancellation of your policy on the home you’re moving out of and the effective start date for the policy for the home you’re moving into- one way to do this is to have the new policy start the day you are planning on moving. Not only would this help provide coverage for your contents, but it would also provide you with personal liability coverage during the time of the move. If you’re moving out of state, ask your insurance agent if they’re licensed in the state you’ll be moving to, and if they aren’t, ask them if they are able to refer you to another agency.

Protect Your Stuff During the Move
Now what about your contents in transit? If you’re renting a truck or a van for the move, the rental company may offer you additional insurance coverage. If you use a professional moving company, under federal law interstate movers are liable for the replacement value of lost or damaged items. However, they may present you with different options for coverage, including Full Value or Released Value. According to the US Department of Transportation, Full Value is more comprehensive coverage but it may cost more out of pocket, whereas Released Value is offered at no additional cost, but may only cover your belongings up to 60 cents on the dollar. If you opt for the Full Value, make sure you have an up-to-date estimated value for the belongings you’ll be moving. If you have an accurate and comprehensive home inventory, this shouldn’t be too difficult of a task.

One argument for taking the coverage from a rental company or a moving company (even for in state moves) is that if something does go wrong and can be covered by that policy you could avoid filing a claim with your own homeowners/renters insurance company and having to cover costs out of pocket to meet your deductible. Just be sure though that the coverage offered by a moving or rental company is enough to replace or repair damaged or lost items. Talk with us about your coverage and deductible so you can figure out a plan to protect your belongings that works for you.

What If I’m Putting Some of My Stuff in Storage?
If you’ll be temporarily storing property at a storage unit during your move, you should know that some insurance policies will only insure items in a self-storage facility to 10% of your personal property limit, which may not be adequate to cover your stored furniture, rugs, etc. You should be able to raise that coverage with what’s known as an endorsement to the policy, so make sure you tell your agent if you’re storing anything at a self-storage facility as part of the move and this includes those mobile pod and container systems.

As professional and independent insurance agents we have the ability to work with multiple insurance companies, so we are uniquely suited to help you find the coverage that’s right for your new place and for getting you and your stuff there.

When and whether a vehicle involved in a collision is considered to be “totaled” for first-party insurance purposes is an issue of great angst and confusion for most consumers. Over the years we’ve certainly experienced older, functioning automobiles being “totaled” simply because the frame is bent or other seemingly minor and hidden damage occurs. Even insurance professionals can get turned around navigating the maze of rules and state regulations regarding the act of “totaling” a vehicle under a policy. But it needn’t be all that complicated. This article will hopefully help take the guess-work out of when a car can be “totaled.”

Typically, cars are considered to be “totaled” when the cost to repair the vehicle is higher than the actual cash value (ACV) of the vehicle. Practically speaking, however, it is not always practical to repair a vehicle, even if the cost of repair is less than its actual cash value (ACV). A vehicle worth $4,000 requiring $3,000 in repairs might be considered “totaled” by an insurer even though the cost of repair is less than its value before the accident. Insurance companies will typically consider such a vehicle to be a total loss, even though the repairs are only 75 percent of actual cash value (ACV).

While the procedure varies slightly from state to state, the insurance company will typically take ownership of the totaled vehicle (known as “salvage”) and may obtain a “salvage title” for the vehicle. After it pays it’s insured the pre-loss ACV of the vehicle and forwards the certificate of ownership, the license plates and a required fee to the Department of Motor Vehicle (DMV), the DMV then issues a Salvage Certificate for the vehicle. In some cases, the vehicle is repaired, re-registered with the DMV, and then classified as a “revived salvage” or “salvaged” vehicle. Of course, if the insured wants to keep the “totaled” vehicle, the insurance company will deduct the value of the salvage from the claim payment.

The criteria for deciding when a car is a total loss and when it can be repaired vary from insurance company to insurance company and might even be dictated and controlled by state statute or regulation. Further complicating the issue is the fact that insurance companies do not all use the same sources for determining the value of a vehicle. Insurance professionals, on the other hand, have to be familiar with these rules, criteria, and thresholds in all the states they are licensed to do business in.

In determining whether a vehicle is totaled, insurance companies will calculate the total loss ratio (cost of repairs/actual cash value) and then compare this ratio to limits set either internally within the company and/or regulated and established by state law. It is also sometimes referred to simply as the damage ratio. Some states dictate how high this damage ratio needs to be in order to be able to declare a vehicle a “total loss” and be eligible for a salvage title or certificate. This is referred to as the Total Loss Threshold (TLT). In order to total a vehicle, the total loss ratio must exceed the established percentage. If the TLT is not dictated by the state, an insurance company will usually default to something known as the Total Loss Formula (TLF) which is:

Cost of Repair + Salvage Value > Actual Cash Value

If the sum of the first two quantities is greater than the ACV, the car can be declared a total loss. As an example, a damaged 2002 Toyota Echo with 185,000 miles in good condition has an ACV of approximately $2,800. Total repair costs are estimated at $2,000, for a damage ratio of 72 percent. This car would be considered a total loss in Arkansas, where the TLT is 70 percent, but not in Florida where the TLT is 80 percent. In Illinois, the TLF would be used and, if the salvage were worth $700, the car would not be totaled ($2,000 + $700

Understanding the layers of procedure behind declaring a vehicle a total loss isn’t always a prerequisite for successful subrogation. But there are occasions when the third-party tortfeasor and its liability carrier or attorney will question the amount of damages you are looking to subrogate. In such instances, a working knowledge of this area of insurance becomes indispensable.

Source: claimsjournal.com