Do you need Rental Reimbursement on your auto insurance?

The short and sweet answer is yes but I am not the short and sweet type when it comes to insurance. So let’s dig a little deeper.

Many individuals dont think they need it and many times forgo it to save money. Honestly this coverage is only about $30 to $40 per vehicle annually, if not less. That’s not alot when you consider it’s an annual cost and what it means for you.

Recently I had a client find out the hard way how important Rental Reimbursement is. Another vehicle hit my client’s vehicle while parked and unoccupied. Initially the client attempted to have the claim handled by the responsible party’s  company. However the adjustor was indicating the vehicle was a total loss and that decision made the client uncomfortable. Add on the client had paid extra money for Replacement Cost coverage on the totaled vehicle on their own auto insurance policy. The client attempted to go back to their own insurance for Replacement Cost coverage but it was determined they had no Rental Reimbursement on their own auto policy. The claim process would start over with the client’s own insurance company and leave them out of pocket for another rental vehicle.

In the end the client settled with the responsible party’s insurance company to reduce the amount of stress and move on ultimately.

Had the client opted for Rental Reimbursement when the policy was purchased the client would have had a completely different result.

Yes, you can shave off a few dollars on your auto insurance by not including Rental Reimbursement but it can have a severe impact at the time of a claim.

So purchase Rental Reimbursement for all of your vehicles. I recommend a limit of $40 per day based on the average cost of a small rental vehicle. You can certainly bump it up if you will need more rental vehicle, such as a mini van or SUV.

An independent agent can help you pick the right limit and find a competitive auto insurance policy for you.

Why you should shop your insurance.

Previously I gave reasons why you should not shop your insurance. My goal is not to discourage people from shopping their insurance but to help people be smart about managing their insurance. There below are valid reasons for shopping your account.

  • Major lifestyle changes are a valid reason. Marriage, divorce, a child getting licensed, a child moving out, starting a new business, retirement, etc. Your current insurance company may not have the most competitive pricing once these changes are applied to your account.
  • Purchasing a new home, condo, etc. Selling your home and renting. Again the current insurance company may not be the most competitive based on your new home situation.
  • Change in net-worth or value of your assets. If your net-worth has increased significantly the current insurance company many not be providing you the broad coverage you now need. They may also not be able to provide you the coverage or policy limits your financial advisor, attorney, or accountant are now recommending.
  • Change in the coverages desired. If you now want full glass coverage or GAP coverage or Agreed Value on your vehicle you may need to change insurance company. If you need workers compensation insurance you may need to change insurance companies. If you sit on boards or volunteer your time to associations or committees you may need a different insurance company.
  • Bad claim experience. If you find that your insurance company was uncooperative, lacking in communication, difficult to work with or any other reason and your insurance agent could not help you work through it there is no reason you should torture yourself again in the future.

Ultimately you should not shop your insurance frequently or even every year. You will lose out on valuable coverages, benefits, features, etc. Your program should be reviewed annually but only shopped every 3 to 5 years. If you feel your need your program shopped talk to your insurance agent about why you should or should not shop your insurance program. Your agent will have a good sense what you can do with your current program and if having your program shopped is warranted.

 

What is water back-up coverage?

Recently I had a conversation with a client regarding water back-up. They recently purchased home insurance and in reviewing their home policy I noted that they only had $5,000 for water back-up.

The standard home policy does not provide coverage for water back-up. In fact you will see an exclusion for water back-up. Water back-up is considering water that backs up into your home from a drainage system. It could be a sump pump that fails. It could be a toilet that overflows. It could be a shower drain that backflows. It could be a hot water heater that breaks. The easy way to think about it is water back-up is any drainage system to your home that could back-up or overflow.

Water back-up is not flooding. Flooding is water from the outside your home coming in through the foundations, windows, doors, etc.

Why is water back-up so important? It is one of the top causes of homeowner claims across the country. Every homeowner will experience at least one water back-up loss in their lifetime. 

Secondly, the average water back-up claim is $20,000. Think about it… you clean up the free flowing water, you need water mitigation to dry out the floors, the walls, and the room to reduce the chance of mold. You may need to replace the flooring and the walls. And possiby some furnishings. And you may still have mold after all.

In some cases a water back-up loss could mean a total loss of your home. Think of sewage back flowing into your home.

Kind of scary stuff.

So what do I recommend? I recommend full water back-up coverage. This doesn’t mean up to the total value of the stuff in your basement or the basic limit for water back-up. Water back-up should be up to the dwelling, other structures, personal property, and loss of use policy limits.

Yes, water back-up can be expensive but is it more expensive then the cost of the average water back-up loss? Water back-up coverage has gotten more expensive of the years because of the frequency of such claims and the average cost of a claim.

If your insurance company doesn’t provide full water back-up coverage as we insurance professionals call it then find another insurance company. This applies to rental and investment properties.

Have your insurance agent review your policy today to determine if and how much water back-up coverage you have.

Diamonds Are A Girl’s Bestfriend!

It is that time of year where many of my client’s will give or receive a very sparkly gift from Santa.

I can’t deny that I get a little excited when a client calls to provide the specifics on their new diamond encrusted whatever.

That being said, now is also the time to start talking about insurance for those beautiful items.

I recommend everyone have at least some type of jewelry schedule or jewelry insurance. It should be a given when talking about homeowners insurance.

There are two ways to do a jewelry schedule, a blanket or an agreed value. Blanket requires less effort but agreed value will provide more definitive coverage.

If you are unsure which direction you should go you need to look at your jewelry collection.

Go home and pull out all of your jewelry pieces and lay them out on the bed. Decide which is your most inexpensive piece? Which is the most expensive piece? What items do you wear regularly? Do you keep any of the items in a safe? Knowing what you have will help you decide what is more important.

You can even do a combination of blanket and agreed value. The one thing I don’t recommend is no jewelry schedule.

Keep in mind that if you have no jewelry schedule, coverage will be found under your homeowners insurance. The missing item would be subject to the policy deductible. The minimum deductible with most insurance companies is $1,000. Also, you have to account for any limitation in the homeowners policy for lost or misplaced jewelry. The policy may limit coverage to $2,500 or $5,000, less the policy deductible. That can really hurt when your heirloom engagement ring disappears.

Before you go and buy your next piece of jewelry go get some type jewelry insurance in place. It is always better to be safe than sorry.

Pamela

Insurance for Older Homes

I visited Evergreen Museum yesterday. I was able to take a self-guided tour of the museum. It was amazing to see the details of the home up close and personal. The design of older homes is just amazing.

As part of the tour I learned why you should consider Chubb Insurance Group to insure your older home.

Do you know the differences between a Georgian home versus a Queen Anne home? The appraisers at Chubb sure do. Not only do they know the difference but they can also tell you alot about the architects and designers of those types of home, and the cost to replicate the home today. They are truely experts in their field.

If you have an older home you should consider Chubb. Call me for more information.

Chubb Insurance Group: http://www.chubb.com/personal/

Evergreen Museum: http: http://www.museums.jhu.edu/evergreen.php

Pamela

Home Inventory

Do you know how much stuff you have in your home?

Would you remember every item you currently own after a major loss?

What about the value of each of those items?

These are some pretty tricky questions, which are even tougher to answer after you experience a home fire or other catastrophe.

In an effort to help you recover after a loss you should have a home inventory or listing of all of your personal property in your home. So when a loss does happen you can relieve some of your stress and get back to normal quicker.

Insurance Information Institute (III) has come up with software that can be used via your iPhone or Android to document your personal property, and it’s free!

This software should even be used by individuals that own a condo or rent. The value of your personal property is the driving force of policy premium. Having an idea how much stuff you have will help narrow down a premium faster.

Information on conducting a home inventory, and instructions on getting the software can be found by visiting, http://www.knowyourstuff.org/iii/login.html.

Check it out today!

Coach… yummy!

It’s official… I have my first Coach purse! It looks so pretty and it has that new smell. Its so sleek and stylish. Eeeek! See for your self.

Are you jealous? I would be if I were you and didn’t have a Coach purse. Lol!

Truth be told and I am a fashion nut. I subscribe to like 5 fashion magazines. And when I receive them I go through them religiously. My husband always teases me about my expensive taste, which means I have to remind him of his expensive taste. He did pick me, right? And you can’t forget his collection of fishing rods, reels, and the several tackle boxes full of fishing gear. (Baby, see I’m learning the lingo…)

So now I have another purse but not any purse… A Coach! She will go right next to my Guess and Jessica Simpson purses.

Now here is the lesson….

This precious purse is an investment, despite the fact that I got it 80% off. I would like to protect my investment. I know a major way do to so… homeowners insurance. Your homeowners insurance policy should have replacement cost coverage for contents, so that when my precious Coach bag is lost or damaged my homeowners policy will pay the full price to replace it.

Time to go show off my new stylish, Coach purse.

Pamela