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TIPSClick
on the topics below to read our tips.
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Congratulations
Class of 2012: Now It’s Time to Graduate to Your Own Insurance!
It’s a rite of passage for college students to don cap and gown and march for graduation ceremonies- in fact, according to the National Center for Education Statistics (NCES), nearly 1.8 million students will graduate with a bachelor's degree in 2012. As those 1.8 million make the transition from undergraduates to careers, pursuit of advanced degrees or back into mom and dad's basement, it's critical that they understand how walking across that stage may have changed their insurance needs.
While every individual’s needs are unique, here are five basic insurance coverages that all college grads should consider, to see if they apply:
Auto Insurance
A shiny new car, whether owned or leased, holds appeal for newly employed college grads.
Auto insurance helps cope with the expenses of accidents, vandalism or theft. A lender or leasing company that finances the vehicle will require auto insurance. Car accidents can create large liabilities for a driver, so the liability portion of auto coverage helps protect the bank account. Plus, auto insurance covers many legal expenses if a driver is sued. If a graduate who already owns a car is moving, where they keep and register the car, especially from one state to another, can impact coverage. It's important for new graduates to let their insurance agent know about these moves to make sure their current coverage will still apply, or if they'll need a new policy.
Health Insurance
Under the new federal health care law, children can remain on their parent's
health insurance policy until age 26. With unemployment and underemployment high among those in their early twenties, this can provide many recent grads with health insurance until they are able to get it through their employer or an individual policy. Individual policies can be pricey and differ significantly in coverage, so talk with a Trusted Choice® insurance professional about what makes the most sense.
Homeowners or Renters Insurance
College grads starting out may not own a home yet, but may rent a residence. To make sure their possessions are protected,
homeowners and renters insurance offer comprehensive coverage whether at home or traveling. Liability insurance included in renters and homeowners coverage also helps protects against the risk of being sued. There usually are limitations on renters coverages within a group house—a typical post-graduate arrangement—so it is important to understand the details of a policy.
Life Insurance
New grads may find a job with an employer that offers group term
life insurance coverage. However, those with children may find it worthwhile to buy additional term life insurance or permanent life insurance, which builds cash value over time.
Disability Insurance
This is a vital but often-overlooked insurance coverage. It provides income when a person is injured or disabled, whether on the job or off. A Trusted Choice® insurance professional can calculate the right amount of coverage to help a person live while recovering. |
New college grads may want to lean financially on their parents’ insurance coverages as long as possible (though mom and dad might feel a little differently!). While that makes sense, it’s not always viable. For instance, auto insurance companies will require an owner or lessee of a car to carry their own coverage. There are plenty of insurance policies out there that new grads won’t need, unless there are special circumstances, such as air travel insurance, contact lens insurance or cancer insurance. Typically, it is better to have comprehensive policies like renters or health.
Parents of new graduates also should take this time to review their own insurance portfolios, as there may be opportunities to reduce their premiums when child moves out of the home.
A Western Insurors insurance professional can help new grads and their families navigate these waters, to provide sensible coverage that won’t break the bank.
Article compliments of Trusted Choice
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Landscape Ready: Utility Marking, Underground Septic & Sewer Back-Up
Remember the “Beverly Hillbillies?” With apologies to Jed, Grannie and the clan, consider the following variation:
“Come and listen to a story about a lady named McGee
A simple suburban homester just wanting a new tree
But when our green thumber plunged that shovel in the ground
Up from the depths come a-bubblin’ brown….
…Sewage, that is. Smelly sludge, septic tank tea.” |
And if you’ll forgive the mixed metaphors, a smelly yard may be just the tip of the iceberg when you dig before being sure exactly where your local underground utilities are located. Negligent homeowners may face a myriad of exposures to loss beyond the possible damages to their own property or house plumbing:
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Severe injury if that shovel hits an electrified line. (Hit a natural gas line and they may never find you again.) |
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Fines from local regulators. |
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Liability for repair expenses to utility companies. |
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Liability to neighbors for cutting power, water, phone, cable or sewage lines. |
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Even if there is no immediate visible damage, your shovel may damage the protective coating of a gas line, for example, starting a gradual leakage or deterioration that is a ticking time bomb. |
Yet according to a recent national survey conducted by the Common Ground Alliance (CGA), only 33% of homeowner do-it-yourselfers called to have their lines marked before starting digging projects. (CGA is a coalition of 1,400 excavators, locators, and road builders; telecommunications, electric, oil and gas providers; railroads; one-call centers, public works, equipment manufacturers and suppliers, state regulators, insurance firms, engineering/design firms, and emergency services.)
Too Shallow? Careful!
And speaking of time bombs, even if you’re thinking like many of those non-callers that your planting is too shallow or located sufficiently to the side to impact deeply buried utilities, consider future growth: Could those spreading tree roots eventually make their way into nearby sewer lines, causing anything from nuisance blockages to major and expensive damage and backups?
The answer, thanks to the FCC and the CGA, is as simple as three numbers: 811. There have long been numerous local “Call Before You Dig” numbers furnished by municipalities and utility companies. The FCC mandated a single, national phone number be created in addition to the existing local options to increase convenience, compliance and eliminate confusion, while continuing free and local service.
Nice Colors
The 811 calls are directed to a local center, which then notifies all the affected utilities. They then mark all underground lines—at no cost to you—with easily recognized colored lines or flags:
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Red, electric. |
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Orange, communications, telephone/CATV. |
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Blue, potable water. |
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Green, sewer/drainage. |
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Yellow, gas or oil. |
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Purple, reclaimed water or irrigation. |
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Maroon, temporary survey. |
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White, pre-marked site of intended excavation. |
Be sure to call at least 48-72 hours in advance of digging, and be prepared with specific information on your plans. When it comes to digging in your yard, 811 represents the best of risk management—minimizing or eliminating the claim entirely!
Coverage Idea
Even your best-laid plans might not prevent a basement or ground floor bathroom to be suddenly awash in sewage backup. That’s why you should ask your agent about special endorsements to your home insurance to respond to such backups. Be sure to tell your agent the amount of valuable property you have in the basement. While old-time basements often held only old stuff in storage, today's are often the center of family life—“man-caves” to recreation rooms!
If your best precautions should fail, add your Western Insurors agent to your Call Before You Dig list! Just like those utilities, he or she will gladly mark out the limits of your current coverage as it applies to your plans. (Now, if we insurance experts could just figure out a way to do it—red for property, blue for liability?—with those clever colored lines or flags!)
Article compliments of Trusted Choice
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Does
Volunteering Your Time Mean Volunteering Your Insurance?
Millions of Americans donate time—their most valuable asset—to serve as a volunteer board member on non-profits, booster clubs, churches, PTAs and civic organizations, just to name a few. The decisions these folks make can have a dramatic impact on their respective organization—and not always for the better. If a volunteer endeavor goes bad, would a volunteer board member have coverage against a lawsuit under his or her homeowner’s policy?
Homeowners’ Insurance
The last thing volunteers want to consider is what would happen if their favored organization file suit against them as a result of their efforts. But it happens, and not infrequently. This does happen, especially when volunteers make decisions that directly influence the finances of an organization. Often, the only insurance these volunteers have to back their efforts is a
homeowner’s policy. Unfortunately, this policy may be of little assistance.
The reason homeowners’ policies do not usually cover liability stemming from actions as a volunteer is the nature of the claim. The policy is designed to cover claims of “bodily injury,” such as someone slipping on cracked pavement in your driveway; and/or “property damage,” such as accidentally setting your neighbor’s house ablaze when burning some brush on a windy day.
Claims against board members do not usually involve bodily injury or property damage. Rather, they involve bad decision making that results in financial loss to the organization, such as the decision to invest in an IT system that turns out to be a debacle, costing the organization tremendous time and money.
There is another problem. Homeowners policies do not cover “professional services.” This is important to note, because board members are often asked to serve in a capacity consistent with their profession. For example, a church member who is a CPA may be asked to serve on the church’s board as finance chairman. Even though he is not paid for his services, the “professional services” exclusion under his homeowner’s policy would still apply.
In addition to the above, homeowners policies do not cover claims of personal injury unless this coverage is specifically added. Personal injury insurance is added to the homeowner’s policy to cover claims such as libel, slander, wrongful eviction, and false advertising.
What To Do
Events causing claims are unpredictable. While the reasons shown above prove it’s unlikely, not all claims against volunteer board members are excluded by a homeowners policy. Decisions to purchase personal injury coverage and a
personal umbrella policy will increase your ability to find coverage for a suit against you.
The best method for insuring the actions of board members is for the organization to purchase a directors and officers (D&O) liability policy. These policies are relatively inexpensive for most non-profits. Before volunteering, request information on the organization’s D&O policy. The absence of this insurance leaves you at risk of having no personal insurance to defend a suit brought against you by the organization and should influence your decision to serve.
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Before, During and After a Tornado
Before the tornado
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Become familiar with the type of alarm or notification system your local government will put into effect to let you know if a tornado watch or warning is being issued. Above all, don't wait until a tornado warning is issued to find out what to do. Make sure everyone in the family is fully prepared to take responsibility for his or her own safety. |
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The best preparation for a tornado is to be alert to changing weather patterns. Pay attention to weather reports and rely on your own instincts and experience. |
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Nature provides certain environmental clues that may precede a tornado. Look for a dark, greenish sky, a wall of clouds and pieces of hail sometimes as large as grapefruits. Eyewitnesses say a tornado produces aloud roar, similar to that of an approaching freight train. |
During the tornado
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The safest place to be during a tornado is underground. If there is no basement in your home, a small room in the middle of the house is best. Stay away from windows. |
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Get under a steady piece of furniture, such as a heavy table or desk. Hold on to it and use your arms to protect your head and neck. |
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If you live in a mobile home, even if it has tie-downs, you should leave and seek shelter somewhere else. |
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If there is no safe place inside, go outside and lie flat on the ground with your hands over your head and neck. |
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If you're in a car, get out and seek a safe shelter or lie down in a low area, again with your hands over your head and neck. |
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If you're in a high-rise building, make your way to an interior room on the lowest floor. Avoid windows. |
During the tornado
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Check for injured or trapped persons. Do not move them unless they are in immediate danger of further injury.
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Home
Inventory: Know Your Stuff
Most people know that a homeowners or renter’s insurance policy is crucial when it comes to protecting your home from a fire or other disaster. However, if you want to safeguard your valuables from the unexpected, there’s another important document you may be overlooking: a home inventory.
If disaster strikes and your home and belongings are destroyed, a home inventory makes the insurance claims process a lot simpler, and it helps you get your possessions replaced quicker. While creating this inventory may be a time-consuming task, it doesn’t have to be completely daunting. Check out the following simple tips for compiling your home inventory:
• Details, details, details. A home inventory includes a comprehensive list of all your belongings, along with receipts, photos, and descriptions.
• Divide and conquer. Instead of making one long list of your items, break it down by room and/or type of item, such as clothing, heirlooms, electronics, and jewelry. This will make the home inventory less overwhelming and decrease the chances that you’ll overlook something.
• Know what your stuff is worth. If you have antiques, family heirlooms, or other valuables that don’t have receipts, you may want to have them appraised in order to determine their value.
• Look behind closed doors. When taking your inventory, make sure you don’t overlook items that are stored in the closet, drawers, attic, or garage. Bicycles, holiday decorations, and sports equipment may be out of sight, but their cost adds up. Make sure you include everything – even if it’s in storage – on your list.
• Add it up. Once you have a full document of all your belongings, along with their values, add up all the items in your home and their total cost.
• Keep it safe. Store your complete home inventory with your insurance policy in a safe, easily accessible place, such as a fireproof box, safe deposit box, or other secure location.
• Take stock annually. Remember to review and update your inventory each year, or whenever you make a significant purchase, to ensure your new items are documented.
If you’re looking for a useful tool to help with your home inventory, keep an eye out for the release of the new Trusted Choice mobile app, which includes a handy home inventory tool. Available in the Android Marketplace and iTunes App Store in February 2012. For help obtaining coverage for your possessions, contact your Western Insurors independent insurance agent near you.
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Lights Out: Frozen Pipes & Spoiled Food
You’re hosting the party for the big game. The invitations are out, responses are in and it’s going to be a big one. Your shopping is done and the refrigerator and freezer are stocked with the finest party fare money can buy.
Then the ice storm comes. And with it freezing temperatures. In fact, this particular cold snap is so extreme that it knocks out power to every home in a six-mile radius. The outage takes hours to restore, and when the lights come back on, you open the refrigerator to find the remains of what used to be fresh food for the party. Here’s the question: Will your home insurance policy cover the cost to replace the spoiled items?
Spoiled Rotten
Finding coverage under a home insurance policy for spoiled items depends on why the power supply was interrupted. For example, if the outage can be sourced to your premises and caused by a covered loss, such as a tree branch falling onto your power meter in your yard, many home insurance policies will cover the cost of the spoiled items.
However, if the outage is generated off of your premises, such as at a utility company’s transfer station or downed power line, your home insurance policy may not cover resulting damage. Some communities may have programs available for reimbursement of damage caused by the outage. However, such dollars are usually paid by the utility company, not your home insurer.
Some home insurance carriers will cover spoiled items if the outage is caused by a surge in power. This may happen when the utility company flips the switch to restore power to your area. Even in cases where spoilage is covered, don’t get too excited. Keep in mind that your insurance company will not pay anything until you have kicked in for you deductible. This is typically $500 or $1,000 that you must pay out-of-pocket, meaning the spoilage loss would have to be significant to justify a claim.
Note you can also ask your home insurer about specific spoilage coverage, sold via an endorsement to your policy. This coverage typically has a limit of $500 to $1,000—but your deductible is zero or $100 max, which is usually less than your regular homeowner deductible. Bonus: Many of these endorsements cover not only spoilage due to power failure, but also if the refrigerator or freezer simply breaks down.
Frozen Pipes
But wait: A power outage that occurs during freezing conditions can cause more headaches than some spoiled party food. Lack of heat not only means discomfort for you, your family and guests—it also can leave pipes in your home vulnerable to freezing. A frozen pipe can easily burst, exposing your home and its contents to resulting water damage. When a pipe bursts, damage can happen very quickly and will continue to worsen until the problem is isolated.
Most home insurance companies will cover damage resulting from a frozen pipe provided you can prove that you took measures to prevent the pipe from freezing. For example, many policies say that coverage applies if you can show that you either 1) shut off the water supply and drained your system, or 2) maintained heat to your home. If a power outage prevents you from maintaining the heat, many home insurance policies will cover the resulting loss from the frozen pipe.
Summary
Cold weather conditions pose a number of threats to homeowners. If the threat manifests into damage to your home or its contents, is it covered by your home insurance policy? Sometimes the answer is “yes” and sometimes it’s “no.” Either way, waiting until the damage happens is the wrong time to learn about coverage. A phone call to your Western Insurors independent insurance agent can help. Your agent will help you understand the types of losses you are most vulnerable to, types of losses that are and are not covered, and options that exist which may prevent a high out-of-pocket expense to you. It’s a brand new year—why not call today?
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Transporting
Kids to School Events
As early as they start school, children become involved in extra-curricular activities. Adults charged with getting groups of kids from home or school to the ball field and back home again are usually more concerned with maintaining their sanity than
auto insurance. However, hauling kids around could have a serious affect on your coverage.
In an auto accident, drivers can be legally liable for their passengers’ injuries. Most personal auto policies will extend coverage for injuries to passengers when driving your own car. But what if you rent or borrow a large van to take the soccer team out of town for a weekend tourney? While most auto policies will cover your actions in a car that isn’t yours, many contain restrictions on the size and type of vehicle they will cover.
School employees, such as teachers and coaches, who use their school’s vehicles to haul students and players from place to place have another reason to be concerned. In addition to possible size restrictions, there’s a concern with regular usage; specifically, your personal auto insurance policy may not pay for your liability from an accident in a vehicle that is not yours but is provided for your regular use. In addition to uncertainty with whether or not your policy will even respond, another serious concern is adequate limits of insurance. A serious injury to a single passenger could mean thousands of dollars in medical and other costs stemming from the injury, and those dollars increase with the more passengers that are involved. There are published accounts of accidents involving adults driving in a car pool in which damages greatly exceeded $1 million.
Yet, many adults continue to purchase auto liability limits based on the minimum required by state law. In some states, this required amount may be as little as $10,000 per person and $20,000 total for all injuries in an accident—not likely sufficient when you consider the severity of certain injuries and the number of passengers involved. Remember also that this limit applies for all injuries caused by an accident for which you are liable, including passengers of other cars.
Adults driving kids to athletic and other events should consider maintaining the highest liability limits possible, as well as a
personal umbrella policy. The umbrella can provide much higher limits of liability, some well over $1 million.
Today’s drivers are faced with a multitude of distractions that pose a risk for accidents. Understanding your personal auto insurance could help bring at least a little peace of mind – talk to your
Western Insurors insurance professional if you have any questions.
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Business Use of My Personal Vehicle: Will My Insurance Work?
There are over 240 million registered motor vehicles in the U.S., according to the Census Bureau. At a given time, as many as a third of those clutter American roadways, and it is estimated that one-fourth of those are being used in the course of work.
Running errands, making deliveries, visiting customers. Even for those whose employment is not based on driving, it’s fair to say that your vehicle is an essential part of your employment. This presents an important question: If you are involved in an accident in the course of employment, are you covered by your personal policy (PAP)?
Like most insurance questions, the answer depends on circumstance. For example, what kind of car are you driving? Does the car belong to you or someone else? What type of business are you in?
Consider the language found in the typical PAP. At a glance, many policyholders are shocked to see that the PAP appears to exclude coverage for the use of any vehicle in the course of business other than farming or ranching. However, a very broad exception to this exclusion allows coverage for the business use of a vehicle provided it is one of three types: 1) a private passenger auto, 2) a pickup or van, or 3) trailer while used with the aforementioned. This exception suggests that as long as the vehicle is one of these three types, coverage remains intact after the accident.
But policyholders should proceed with caution, since some PAPs are not as generous. For example, some versions may be more restrictive towards pickups or vans, possibly including a gross vehicle weight (GVW) limitation or a clause that restricts coverage to owned pickups or vans only. Be sure to consult your policy before driving any pickup or van for work.
Further, policyholders should understand that any coverage permitted for business use of personal vehicles by the PAP is not intended for these three vehicle categories:
Commercial-type
vehicles. The PAP restricts business use to private passenger autos, pickups and vans. While they can be purchased personally, box trucks, tractor trailers, shuttle busses and other commercial-type vehicles do not fit this description; such vehicles require a commercial auto policy.
Furnished or available for regular use. Often called the “company car” exclusion, this provision is dangerous and must be remedied if the exposure exists. The reason is that a typical PAP will exclude coverage for a vehicle that is regularly available to the policyholder but is not specifically insured under the PAP. For example, if you are furnished a company car as a benefit to your employment, make certain that you are covered by your employer’s auto insurance policy. If not, specific action is required to extend coverage under your PAP; it will not do so automatically. The good news is that this coverage change is usually inexpensive and can be done easily; just be sure to request the change now, before the accident happens. While the definition of furnished or available for regular use varies by case, err on the side of caution. Don’t assume that because you don’t take it home with you each night or that you only drive it occasionally you’re in the clear. Regardless, a vehicle owned by your employer could be considered available for your regular use. This exclusion presents a potential gap that is too risky to ignore; your
Western Insurors insurance professional can help you take the appropriate steps to close it.
Vehicles that are the business. A PAP will not cover your vehicle if you use it to carry people for a fee, such as a taxi, limo or shuttle. The only exception is a share-the-expense car pool. And if you’re planning to make a few extra bucks delivering pizzas, auto parts, newspapers or other goods, proceed with caution. Many PAPs also remove coverage for vehicles that are used to deliver food or other types of property for a fee.
While in most cases the PAP will cover you for business use of a personal vehicle, there are situations where it will not. Such situations are not uncommon and, if not remedied, could result in significant financial detriment for you and your family. Consult your
Western Insurors insurance professional for advice on how to close potentially devastating gaps in your PAP today.
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STORMS
ARE COMING -- LET’S GET READY!
“If you don’t like the weather, just wait
five minutes -- it’ll change.”
Well, storm season is here and that old joke is very true! Storms
hit quickly, and many times without much warning. We may not be able to change Mother Nature’s mind, but we can be prepared when storms hit.
Things you can do:
Clear your storm drains.
Unclog gutters using a rake, broom or shovel so water
cannot accumulate and flood.
Store water and food
and prepare an emergency kit that includes
cash, a first-aid kit, portable radio, flashlight and extra batteries.
Keep waterproofing and emergency building materials readily
available, such as sandbags, plastic sheeting and lumber.
Be ready to gather personal belongings and leave immediately.
Keep your car fueled and store important documents and valuables
in a safety deposit box.
Map a route
For traveling safely from your home, school or work to higher ground, or to shelter. Plan ahead to be sure you have the right insurance protection. Put
your mind to rest and visit with your Western Insurors agent today
about your current coverages!
WEATHER TERMS:
The National Weather Service uses a multitier system of weather statements to notify the
public of threatening weather conditions.
ADVISORY
is issued
when a hazardous weather or hydrologic event is occurring, imminent or likely.
Advisories are for “less serious” conditions.
WATCH
is used when the
risk of hazardous weather or hydrologic event has increased significantly,
but its occurrence, location, or timing is still uncertain. A watch means that hazardous
weather is possible and people should have a plan of action.
WARNING
is issued
when weather conditions pose a threat to life or property. People in the path of the storm need to
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About Your Roof
For most of us, the largest investment we will make is buying a house.
Protecting that investment requires proper maintenance and
necessary repairs. Replacing a roof is a major undertaking that should not be
considered lightly. Choosing the right kind of roof can provide you with
many years of protection against the elements.
We want to help you protect this important investment. Here are some
things to consider when replacing your roof:
#1: Materials
PURCHASE QUALITY IMPACT-RESISTANT
ROOFING PRODUCTS
Some roofing materials have received
Underwriters Laboratory’s Class 4 Rating (most hail-resistive). Roofing materials with this rating
qualify for a discount with many insurance carriers.
Other roofing materials that are warranted against hail damage for a least 15 years, as well as roofing
materials that carry a manufacturer’s warranty of at least 30 years also qualify for the
discount. For help in identifying hail resistive roofing materials, ask
your contractor or your Western Insurors Agent. You can also visit the website of the Institute for Business
and Home Safety (www.ibhs.org) to find a list of
roofing products with a U.L. Class 4 rating.
WHAT ABOUT WOOD ROOFS?
Wood roofs are much more expensive to
replace than other roof types. Because of this, many
carriers charge an additional
premium for wood roofs.
#2: Installation
CHOOSE REPUTABLE, QUALIFIED CONTRACTORS
According to the National Roofing Contractors
Association you should do the following when selecting a roofing contractor:
• check for a contractor’s permanent place of business, telephone number, and tax identification number;
• check references from prior customers;
• ask about material and workmanship warranties;
• request verification of liability insurance and worker’s compensation insurance (if applicable)
#3: Maintenance
MAINTAIN PROPER VENTILATION
Especially along eaves and ridges, this is a critical factor in reducing moisture and heat build-up, which can
damage your roof.
CARE FOR LANDSCAPING
Trees should be trimmed back far enough to keep from rubbing against the roof or house, and to keep from
producing excess shade, which hinders ice and snow from melting.
KEEP GUTTERS CLEAN
Clean and remove all litter and leaves from roof, valleys, gutters, and downspouts. This should be checked
regularly.
WATCH FOR WATER
Check the areas where water can enter through your roof — vents, chimneys, roof elevation changes — for
damage, wear, or signs of leakage.
By following these simple guidelines, you can save money on your
insurance premiums, reduce claims, and increase the life of your roof.
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