Are My Christmas Presents Covered?

Posted on by in Home Insurance

With Christmas just around the corner, have you given any thought to insurance coverage for all those brightly wrapped presents under the Christmas tree?  If you haven’t, that puts you in the majority…but also leaves you very exposed.

Personal property (which includes Christmas presents) is automatically covered under the homeowners policy, but there are limitations.  Certain items such as jewelry, watches, silverware, firearms and related equipment are limited in their coverage against theft.  The 2011 ISO Homeowners form includes a theft limitation of $1,500-$2,500 for these items.  This means if the new necklace for Mom or the new gun for Dad gets stolen from under the Christmas tree, the homeowner’s policy will only pay up to $1,500 for the jewelry and up to $2,500 for the gun – but that’s after the deductible.

The homeowner’s policy also limits losses for eight other types of personal property, regardless of the type of loss.  Examples of the restricted property include: money, coins, trailers, business property, portable electronic equipment, watercraft (this includes canoes, paddleboards, kayaks, etc), and trailers.  These limitations vary from $200-$2,500.  For example, if Santa is bringing kayaks this year for the whole family and they are stolen or destroyed in a fire, there is only $1,500 of coverage after the deductible applies.  Or perhaps Santa is handing out cash in the stockings this year and a fire loss occurs – the homeowner’s policy limits coverage to $200 for this type of loss.

There is a remedy.  A Scheduled Personal Property endorsement can be added to the policy to not only increase the coverage in the event of a loss but also to lower or remove the deductible.  Contact your insurance agent to review your coverage today.

Protect your legacy.  Insure for your future.

Calling All Hunters

Posted on by in Home Insurance

Are you an avid hunter or gun collector?  Did you know the homeowner’s policy limits coverage for firearms and related equipment?

As we approach the fall hunting season and start getting our hunting equipment out, it may be a good time to ask yourself “How much stuff do I really have?”  The 2011 ISO homeowner’s policy limits coverage for the theft of firearms and related equipment to $2,500.  If you have a gun or guns stolen, the home deductible would apply and then a limit up to $2,500. 

What if I have more than $2,500 of firearms?  A scheduled personal property endorsement allows you to add additional coverage for these items in the event they are stolen.  By scheduling these items, you not only can choose more coverage in the event of a theft, but you can choose a lower deductible than the home policy carries or possibly no deductible at all.

What if I have a gun safe, and I’m not worried about my guns being stolen?  The limitation is only for theft.  If they are damaged or destroyed from a different covered cause of loss such as fire, the personal property limit applies (not the $2,500 limitation). 

Be sure to review your coverage with your insurance agent to ensure that you have the proper protection.

Protect your legacy.  Insure for your future.

Is a Wreck with a Rec Vehicle Covered?

Posted on by in Uncategorized

As hunting season kicks off, we are going to jump start our series on recreational vehicles.  Kiddy Jeeps and Gators, ATVs, UTVs, snowmobiles, golf carts and even riding lawn mowers – these are all considered recreational vehicles under the 2011 ISO Homeowners policy.  By definition, recreational vehicles are “self-propelled land or amphibious vehicles” – which also makes them “motor vehicles” according to the homeowners policy. 

Is there coverage on the homeowners policy?  The answer is…it’s complicated.  Today, we will look at both property (physical damage to our rec vehicle) and liability claims.

A rec vehicle is considered personal property under the homeowners policy which means it is covered for physical damage when it’s owned or used by an “insured” anywhere in the world, however, in order for coverage to apply, there are requirements that must be met.  First, the damage needs to be caused by one of the sixteen (16) perils named in the policy.  In addition, the rec vehicle cannot be limited or excluded elsewhere from coverage in the policy.  If both of these apply, then there is coverage for physical damage.  The sixteen named perils are important because if you browse the list of covered claims, you won’t find upset, overturn, or collision on that list – the most common types of recreational vehicle claims.  

What about liability coverage?  Since recreational vehicles are considered motor vehicles under the homeowners policy, they are excluded from liability coverage.  The homeowners policy does make an exception for recreational vehicles that are not required to be registered and if used solely to service a residence.  This means if you have an ATV or lawn tractor that you use on your own property to clean up the yard, haul feed, etc there is liability coverage for it, but once it leaves your property, the liability coverage no longer applies.

This is an overly simplistic view of the homeowners coverage.  There are additional limitations, exclusions, and exceptions that may apply.  Ask your insurance agent today if you have the coverage you need or if a recreational vehicle policy would be more appropriate.

Protect your legacy.  Insure for your future.

Does My Credit Score Impact My Insurance?

Posted on by in Auto Insurance, Home Insurance

When it comes to financial matters, credit scores play a significant role in determining your eligibility for loans, credit cards, and even renting an apartment. However, did you know that your credit score could also have an impact on your insurance premiums? Today, we will explore the relationship between credit scores and insurance and understand how your creditworthiness can influence your insurance rates.

A credit score is a three-digit number that reflects an individual’s creditworthiness based on their credit history. It is calculated using various factors, including payment history, credit utilization, length of credit history, new credit applications, and types of credit used. The most used credit scoring model is the FICO score, which ranges from 300 to 850.

Insurance companies use credit scores as part of their underwriting process to assess the risk associated with an individual. Studies have shown that there is a correlation between credit history and insurance claims. According to insurers, policyholders with lower credit scores tend to file more claims and have a higher probability of being involved in accidents.

Insurance companies argue that credit scores can provide insight into an individual’s level of responsibility and their likelihood of paying premiums on time. From their perspective, a higher credit score implies a lower risk profile, while a lower credit score suggests a higher risk profile.

It is a common practice for insurers in Iowa to consider credit scores as a factor in calculating premiums.  Policyholders with excellent credit scores usually enjoy lower insurance premiums compared to those with lower credit scores. This means that maintaining a good credit score can potentially save you money on your insurance bills.

Improving Your Credit Score and Insurance Rates:

  • To mitigate the impact of credit scores on insurance premiums, consider these steps:
  • Pay bills on time: Timely payment of bills, loans, and credit card balances is crucial.
  • Reduce credit utilization: Aim to keep credit card balances below 30% of the limit.
  • Monitor your credit report: Regularly check for errors and report them promptly.
  • Maintain a healthy credit mix: A diverse credit portfolio can positively influence your score.
  • Limit new credit applications: Multiple applications within a short period can harm your score.

While the relationship between credit scores and insurance may seem somewhat unfair to some individuals, it’s important to understand that insurance companies view credit scores as an indicator of risk. By maintaining a good credit score, you can potentially enjoy lower insurance rates. Whether it’s to lower your insurance premium or improve your credit score, it’s essential to be mindful of your credit health and take proactive steps to improve it.

Protect your legacy.  Insure your future.

Does My Auto Insurance Cover Me When I Drive For Work?

Posted on by in Auto Insurance

Driving for work purposes has become a common practice for many individuals across various professions. Whether it’s commuting to meetings, making deliveries, or visiting clients, using your car for work can raise questions about insurance coverage. Understanding the extent of your auto insurance coverage is crucial to ensure you’re adequately protected in case of an accident or other unexpected events.  Today, we’ll explore the topic of auto insurance coverage while driving for work and provide some key insights to help you make informed decisions.

Most personal auto insurance policies are designed to cover personal use of your vehicle, such as commuting to and from your workplace or running errands. However, when you start using your car for work purposes, the situation becomes more complex. Insurance providers typically draw a distinction between personal and commercial use of vehicles.

If your job involves frequent and substantial use of your vehicle for work-related activities, such as carrying goods, transporting passengers for hire, or making deliveries, you may need a commercial auto insurance policy. Commercial auto insurance provides coverage specifically tailored for vehicles used in business operations. This type of coverage generally offers higher liability limits and protection for the specific risks associated with commercial use.

In some cases, your employer may provide insurance coverage for work-related driving. Companies that require employees to use their personal vehicles for work may have commercial auto insurance policies that extend coverage to employees during business-related activities. It is important to review your employer’s insurance policies and understand the extent of coverage provided.

Employers may also have non-owned auto liability coverage as part of their general liability insurance. This coverage typically protects the employer in case an employee causes an accident while using a personal vehicle for work. However, it’s important to note that this coverage is meant to protect the employer, not the employee. It may not provide the same level of protection as a personal auto insurance policy or a commercial auto insurance policy.

Some personal auto insurance policies may offer additional endorsements or riders that can extend coverage for work-related driving. These endorsements are designed to bridge the gap between personal and commercial use of your vehicle. Examples of such endorsements may include “business use” or “rideshare” coverage. If you frequently use your vehicle for work purposes but do not qualify for a full commercial auto insurance policy, these endorsements can provide valuable coverage.

Determining whether your auto insurance policy covers you when driving for work requires a careful review of your policy and discussions with your insurance provider. Remember, personal auto insurance policies may not provide adequate coverage for work-related driving, especially if it involves substantial commercial use. It’s crucial to communicate with your insurance company or agent, ask the right questions, and consider additional coverage options, such as commercial auto insurance or relevant endorsements. By being proactive and well-informed, you can ensure that you have the appropriate level of insurance coverage to protect yourself and your vehicle while driving for work.

Protect your legacy.  Insure your future.

Does My Insurance Travel with Me? (Home Edition)

Posted on by in Home Insurance

Recently, we explored if our auto insurance can travel with us.  We found auto insurance to have a pretty limited area of coverage (territory).  It was limited to the United States of America, its territories, possessions, Canada, and Puerto Rico.  Today, we will look at how our homeowners (or renters) insurance may…or may not.

Thankfully, the territory for home insurance is much broader than auto insurance – it’s worldwide in fact!  Homeowners insurance is made up of two components – property insurance and liability insurance.  First we will look at property insurance.  The dwelling and any detached structures are obviously covered under the homeowners policy, but we can’t exactly take those with us on vacation.  When discussing property insurance and traveling – our focus today will be on personal property.  It’s the stuff we can take with us.  It’s what we can move into or out of a home.  When traveling outside the United States, our luggage (for example) is personal property.  And since personal property is covered worldwide, if we have all our belongings stolen out of our hotel room in Ireland, we have coverage!

What about liability insurance?  If I’m on vacation in Rome and step out into the street and cause an accident, do I have coverage?  The liability section of the homeowners policy includes coverage for both bodily injury and property damage on and off your residence premises.  We found personal property to be covered worldwide, and the liability portion is no different!  Now you do need to be negligent for the liability portion to pay for the claim, but you cannot have intended for the incident to happen.

There we have it!  Our homeowners insurance makes a great travel companion!

Protect your legacy.  Insure your future.

References: 2022 ISO HO3 Personal Residential Policy

Does My Insurance Travel with Me? (Auto Edition)

Posted on by in Auto Insurance

It’s summertime and vacation season is upon us!  When you travel via car, does your auto insurance travel with you?  Does it matter if it’s a car that you own?  Or if you rented it?  When traveling stateside or abroad, it’s important to understand your auto insurance so you know if you’re covered.

The personal auto policy has a territory – meaning the area that the coverage exists.  Most auto policies include coverage in the United States of America, its territories and possessions.  Also, Canada and Puerto Rico are typically included, but almost every carrier excludes coverage in Mexico.  This means that traveling outside the US and Canada leaves you without auto insurance.  Renting a car in Mexico or Jamaica? – No coverage. 

Speaking of renting a vehicle, technically, when renting a vehicle for personal use within the area we discussed, your personal auto policy will extend the liability coverage to the rented vehicle.  (There are many other factors that come into play as well). 

But what if you want to rent a car or moped while on vacation in Jamaica?  Or what if you are a Snow Bird that spends time close to the Mexican border?  Some insurance companies offer an endorsement you can add to provide liability coverage when in Mexico (but not other countries).  If your insurance company is not one that offers the coverage (or you want to rent a vehicle outside of Mexico), it will be important to purchase liability coverage in the country you are visiting if you decide to rent a vehicle.  In most cases, this can be purchased directly from the rental car company.

Although your auto insurance travels with you, there are limits to how far it will go.

Protect your legacy.  Insure your future.

References: 2018 ISO Personal Auto Policy

What is Depreciation?

Posted on by in Claims, Home Insurance

Depreciation on home insurance refers to the reduction in the value of an insured item due to its age, wear and tear, or obsolescence. When you file a claim for a covered item under your home insurance policy, the insurance company may take depreciation into account when determining the amount of reimbursement or payout you will receive.

Depreciation is commonly applied to items such as personal belongings, furniture, appliances, and building materials. For example, if your television gets damaged in a covered incident, the insurance company may factor in its age and condition to determine its current value, which may be lower than the original purchase price. The payout you receive would then be based on the depreciated value of the television.

The purpose of applying depreciation is to account for the gradual loss of value that occurs over time. It helps the insurance company provide appropriate compensation for damaged or lost items while considering their pre-existing condition and value.

Depreciation is typically used in conjunction with the concept of actual cash value (ACV) in home insurance policies. ACV takes into account the item’s replacement cost minus depreciation. Some insurance policies may offer the option of additional coverage, such as replacement cost coverage, which reimburses you for the full cost of replacing the item without factoring in depreciation.

It’s important to review your home insurance policy to understand how depreciation is applied and what coverage options are available to you. If you have any specific questions or concerns about depreciation on your home insurance, it’s recommended to contact your insurance provider directly for clarification.

Protect Your Legacy – Understanding Umbrella Insurance

Posted on by in Umbrella Insurance

In today’s increasingly litigious society, protecting your assets and future financial well-being has become paramount. While standard insurance policies like auto, home, and renters insurance offer essential coverage, they may not always be enough to safeguard against substantial liability claims. This is where umbrella insurance comes into play. In this blog post, we will explore the concept of umbrella insurance, its benefits, and why it may be a valuable addition to your insurance portfolio.

  1. What is Umbrella Insurance?

Umbrella insurance is a form of liability insurance that provides an additional layer of protection beyond the limits of your existing policies. It acts as a safety net, covering you for claims that exceed the limits of your primary insurance policies, such as personal liability, auto liability, or homeowners liability. Umbrella policies are designed to offer broad coverage, protecting you against various potential risks.

  1. Coverage and Benefits:

a) Increased Liability Protection: Umbrella insurance typically offers coverage in increments of one million dollars or more. This additional coverage can help protect your assets, such as your home, savings, investments, and future income, in the event of a substantial liability claim or lawsuit.

b) Broader Coverage: Umbrella policies often provide coverage for liability claims that may not be covered by your primary insurance policies. This can include libel, slander, false arrest, invasion of privacy, or liability related to rental properties you own.

c) Worldwide Protection: Unlike some primary policies that might only cover incidents within your home country, umbrella insurance can provide coverage worldwide. This can be particularly useful if you frequently travel internationally or own properties abroad.

d) Legal Defense Costs: In addition to the increased liability coverage, umbrella insurance can also help cover legal defense costs, including attorney fees, court expenses, and settlements or judgments against you, up to the policy limits.

  1. Who Needs Umbrella Insurance?

While umbrella insurance is not mandatory, it can be highly beneficial for many individuals or families. Here are a few scenarios where umbrella insurance can be particularly valuable:

a) High Net Worth Individuals: If you have substantial assets, such as a valuable home, investments, or a successful business, umbrella insurance can provide an extra layer of protection to safeguard your wealth.

b) Professionals and Business Owners: Professionals like doctors, lawyers, or business owners face a higher risk of liability claims due to the nature of their work. Umbrella insurance can protect their personal assets in case a claim exceeds the limits of their professional liability coverage.

c) Property Owners and Landlords: If you own rental properties, the risk of liability claims increases. Umbrella insurance can shield you from potential lawsuits filed by tenants or third parties who suffer injuries or property damage on your premises.

  1. Assessing Your Coverage Needs:

Determining the appropriate amount of umbrella insurance coverage requires careful consideration of your personal circumstances and risk factors. Factors to consider include:

a) Value of Assets: Calculate the total value of your assets, including your home, investments, savings, and other valuable possessions.

b) Potential Risks: Assess your lifestyle, profession, and any activities or assets that may expose you to a higher risk of liability claims.

c) Existing Policies: Review the liability limits of your primary insurance policies, such as auto, home, and renters insurance, to determine if additional coverage is necessary.

  1. Consult with an Insurance Professional:

Choosing the right umbrella insurance policy can be complex, as it involves understanding your unique needs and coverage requirements. Consulting with an experienced insurance agent or broker can help you navigate through the options, ensuring you select a policy that adequately protects you and your assets.

Conclusion:

Umbrella insurance offers an extra layer of protection that goes beyond the limits of your standard insurance policies

Hilarious Tales from Auto Insurance Claims

Posted on by in Uncategorized

Auto insurance claims are typically associated with stress, damage, and inconvenience. However, amidst the chaos, there are some extraordinary stories that emerge—stories that leave insurance agents and adjusters scratching their heads and struggling to keep a straight face. In this blog post, we’ll delve into the amusing side of auto insurance claims, sharing some of the most memorable and funny tales that have made their way into insurance folklore.

  1. Miscommunication Mishap: Picture this: a perplexed driver submits an insurance claim, asserting that they collided with an “invisible” object. As investigators dig deeper, the truth emerges—it wasn’t an invisible object at all, but rather an “invincible” one. Yes, you guessed it right. The driver had inadvertently rammed into a parked police car! It seems that for a fleeting moment, the police car had become invisible to their awareness.
  2. Unlucky Parking Spot: Sometimes, our furry feathered friends can wreak havoc in the most unexpected ways. Take, for example, the driver who filed an insurance claim for damages sustained while their car was peacefully parked. The culprits? A group of seagulls with questionable aim. These birds mistakenly considered the roof of the parked vehicle as the perfect landing spot, resulting in a maddening combination of scratches and droppings. It’s safe to say that the owner’s misfortune soared to new heights that day.
  3. Slippery Surprise: In the chronicles of insurance claims, a slippery banana peel may not be the first thing that comes to mind. But for one driver, it became a hilarious reality. This claimant blamed a minor accident on losing control of their vehicle and careening into a ditch. However, upon closer inspection, it was revealed that their skid was caused not by reckless driving, but by a rogue banana peel casually discarded on the road. It seems life does imitate art—only this time, it was a comedy skit unfolding on the streets.
  4. Forgetful Fueling: As they say, absent-mindedness can strike at any moment, often with amusing consequences. Imagine the confusion when a driver mistakenly poured coffee into their car’s fuel tank instead of gasoline. Yes, you read that right! In a mind-boggling mix-up, the driver confused a gas station for a coffee shop and proceeded to fill their vehicle with a steaming hot cup of joe. Needless to say, the engine suffered a severe case of caffeine overload, leading to some seriously pricey repairs.
  5. Animal Encounter: Animals crossing roads can often be a hazard, but in this particular claim, the circumstances took an unexpected twist. A driver reported colliding with a deer, a relatively common occurrence. However, their account took a whimsical turn as they described the deer deliberately running into their car. According to the driver, the deer locked eyes with them, exhibiting a mischievous grin before executing an acrobatic leap onto their vehicle. It seems even wildlife can possess a quirky sense of humor.

Conclusion: While auto insurance claims are typically serious matters, it’s refreshing to take a step back and find humor in the most unusual situations. These funny tales from auto insurance claims remind us that life can be unpredictable and that sometimes, laughter is the best response. From invisible police cars to banana peel slip-ups, these stories inject a touch of amusement into an otherwise stressful process. Remember, though, that behind these tales lie real-life incidents, and it’s essential to prioritize safety and responsible driving to avoid becoming the protagonist of your own hilarious insurance claim story. Drive safely and keep your eyes peeled for any unexpected twists and turns that life might throw your way!