National Insurance Awareness Day, June 28th

This Friday, June 28th is National Insurance Awareness. The day was created to encourage everyone across the nation to review their insurance policies.

Below are some tips to help you observe the day:

Home:

  • Review the home value. The value of the home should be based on current construction costs, not market value. You should review the home value every 3 to 5 years.
    • Review the home credits. If you have installed an alarm or have turned your alarm service off you should update the home policy accordingly.
    • Review the deductible. The higher the deductible the lower the premium. Also a higher deductible will discourage you from filing small claims which can impact your ability to obtain coverage in the future.
    • Review the endorsements included in the policy. If you have switched insurance companies recently a coverage may have been dropped during the process.

Auto:

  • Review drivers listed on the policy. All licensed drivers residing in your home should be listed on the auto policy. Failure to do so could result in a denied claim for unlisted drivers.
    • Review ownership of the vehicle. If the loan or lease agreement has been satisfied update the policy. This will prevent delays in payment at claim time. Any change in titled ownership should also be reflected on the policy or a new policy purchased for the vehicle.
    • Review deductibles. Insurance companies continually increase the price breaks for higher deductibles. As with the home insurance a higher deductible will save you premium and discourage you from filing small claims.
    • Review usage of each vehicle. Vehicles used for Uber or Lyft services do not have coverage while being used for this purpose. Vehicles used for business purposes may also not have coverage if used for business at the time of a claim.

Schedule:

  • Update items to be listed along with values. Appraisals should be completed every 3 to 5 years to keep up with market values. Use an inventory such as Collectify to manage your collection easily.

Umbrella:

  • Update properties, vehicles, drivers, recreational vehicles, boats, etc. at each renewal. Failure to update could result in no coverage under the umbrella.
  • Make sure the underlying insurance policies for each of the above meets the minimum liability requirements to avoid a coverage gap.
  • If you do not have coverage for the underlying insurance policy for each of the above obtain it at your earliest convenience.

With the help of a Trusted Insurance Advisors they can help you review your policies at any time, not just this Friday or at renewal. A Trusted Insurance Advisor is there to help you every step of the way. Call your agent today!

Why is my credit score used when buying insurance?

This is a common question with clients and it is never an easy conversation. Like many of my clients my gut goes sour when I need to discuss or request information regarding credit reporting. There are a few things to know.

  • State of Maryland has approved the use of credit as a rating factor for auto insurance. Credit is not used for home insurance in Maryland. Almost all insurance companies doing business in Maryland will want to obtain a credit report in order to provide an auto insurance quote. There is only 1 or 2 insurance companies in Maryland that do not.
  • Your insurance agent will never see a credit score or credit report when quoting your auto insurance. For this reason your insurance agent will also not be able to provide specifics about what was contained in the report, and will direct you back to the insurance company quoted to obtain more information.
  • Your insurance agent will not know specifically how your credit impacted your auto quote. Insurance companies have rating structures based on hundreds of rating factors. As information is entered into an insurance company’s quoting system the rate changes. Credit score is only one factor for rating.
  • The process of obtaining your credit report will not impact your credit score. Unlike when you are applying for a loan or line of credit, we are not looking to confirm if you are a good applicant. For this reason you can not be turned down for auto insurance based solely on your credit score.

While the thought of your credit score being run for an auto insurance quote has you sick to your stomach, your insurance agent is doing their best to meet your insurance needs. Your insurance agent will not pry into your financial situation but will guide you on the best auto quote for you. Maintain an open dialogue with your insurance agent and voice your concerns to help settle your nerves.

Call your independent insurance agent for more information on the auto insurance quote process.

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

Thanksgiving Day Safety

Thanksgiving is my favorite holiday of the year. Probably thanks in no small part to the fact that turkey is one my favorite foods. Needless to say I will be getting my fill in the coming days.

However, the Thanksgiving Holiday has one of the highest counts of home fires than any other day of the year. Statistics show that home cooking fires are 3 times more likely to happen on Thanksgiving than any other day.

Below are some quick tips to reduce your chances of a home cooking fire this Thanksgiving…

  • Never leave your food unattended while cooking.
  • Use a timer and routinely check whatever you’re cooking.
  • If frying or deep-frying, keep the fryer outside, away from walls, and free from moisture.
  • Never use a glass casserole or lid on the stove or burner, as it may explode from the heat.
  • Ensure that pot holders and food wrappers are a safe distance— at least 3 feet—from warmed surfaces.
  • Position pot handles to the back of the stove to avoid anyone bumping into them.
  • Avoid dangling accessories or loose clothes while cooking.
  • The stove will be hot, keep children 3 feet from the stove at all times.
  • Be sure electric cords from electric knives, coffer makers, plate warmers, and mixers are not dangling off the counter in reach of children.
  • Never douse a grease fire with water, as the fire can thus spread. Turn off the burner, smother the flames with a lid, or douse with baking soda or a fire extinguisher if it’s getting out of hand.
  • Keep a fire extinguisher handy in the kitchen, and know how to use it.
  • Ensure your smoke alarms are connected and working.

I hope everyone has a safe and happy Thanksgiving Holiday!

Gobble! Gobble!

Pamela

LLCs, Trusts, and Estates

Recently, I had a client call me regarding the purchase of a new property.

I went through the typical questions I would ask…

What’s the address?

Do you have a settlement date?

Is it a business or personal property?

How do you plan to use the property?

Who will reside at the property?

Who will own it?

It is not uncommon to get all green lights until you get to the last question. Business entities are a tricky business in the personal insurance arena. They are not impossible just tricky.

Insurance companies get a little crazy when you start talking business entities owning personal properties. A business has a different kind of exposure or risk and therefore has different insurance needs. Personal insurance policies are not designed to meet those needs and ultimately a business entity could put an insurance company in quite a pickle if a claim happens.

An LLC can sometimes be done if the LLC is formed solely for the purpose of holding a single residential property. The LLC should not conduct any other business and should not employ anyone. There may be tax benefits to an LLC but you need to weigh the tax benefits against the issues that arise when it comes to insuring the property in the name of an LLC.

Trusts can also be done but every insurance company is different. Some will name the trust as Named Insured, some as Additional Insured, some require a special endorsement for naming the trust. Only your insurance company will be able to tell you how the trust can be named.

Estates are tricky in that typically the estate was developed to hold assets for a person that has passed away. An insurance company would shy away from this type of situation because it is unknown who will live in the home, who will take care of the home, will the home be vacant, is it for sale, how long will the estate exist? The answers to these questions have an additional amount of risk associated with it and the insurance company may not want to take on that risk.

Regardless of what your plans are, you should always consult with your insurance agent on what your plans are before committing to them. You may not be able to get the coverage you thought you could or need.

Pamela

After an Auto Accident

Auto accidents are never fun, regardless if minor or major.

My client’s can get pretty rattled at the time of an accident.

Below are some quick and easy steps after an auto accident.

  • Stop immediately, but don’t obstruct traffic. Set up accident flares or warning signs if you have them.
  • Make sure to turn off your vehicle, to guard against fire.
  • Determine if anyone is injured and assist if necessary.
  • Call the police to file an auto accident report.
  • Secure the driver’s license number, make, model and other important information of other vehicles.
  • Take photos of driver’s license, registration, and vehicles involved, including license plates.
  • Secure the names and addresses of witness or other parties.
  • Observe your surroundings to determine direction, lanes of travel, traffic, weather conditions, to provide to your claim adjustor.
  • Do not accept fault of accident or attempt to make settlement at the scene.
  • Notify your insurance agent after the scene has be cleaned up and you are safely home.
  • Always, always, keep clam, don’t argue, accuse anyone or admit guilt.

If you have any questions or concerns before or after an accident consult with your insurance agent.

Insurance agents have been involved in the claim process in a variety of situations and can provide you guidance on what to expect and best practices.

Safe driving!

Pamela

What the heck did I sign up for???

So I have been blogging for a couple weeks now. I am finding the process a little challenging. I have no experience with blogging and I’m a little anxious but I feel an immense need to do this.

Every time I post I question if I am doing this right. I am going with the theory, “Fake it ’til you make it” or maybe I am hoping after doing this for awhile I will finally feel comfortable doing it and things will take off. Who knows!

I have several reasons for blogging…

  • I want to enhance my relationships personally and professionally. I am naturally reserved and shy. I want to change that. I have a freak flag and I would like it to be easier for me to share it with others.
  • I want to grow professionally. I am branching into sales. Something I have been dancing around for several years now. I am not sure that I am good at sales but I have to try. No risk, no reward, as they say.
  • I love meeting new people and developing a long term relationship with my connections. It’s what makes my job fun.
  • I want to share what I know about my field. So little is known about the insurance industry but honestly it is very complex. And quite frankly I am a geek about insurance.

There are many other reasons but these are the big ones for me.

I thought blogging would be so easy before I began. What could be so hard about having a conversation with the internet?

As I continue this journey I want to hear from everyone. I want comments and I want feedback.

Otherwise how will I know that I am doing this right?

P