TIPS TO PROTECT YOUR HOME
If you own your home, homeowners insurance is definitely something you don’t want to be without. It is also a type of coverage that you hope to never need to use. The following are some tips to help protect your home from burglars / thieves.
-Keep your home well lit at night, some dusk until dawn exterior light fixtures help keep potential thieves moving on to the next dark / easier access home.
-Make it a habit to keep doors and windows locked. Whether at or away from home; it is always good to keep access doors locked.
-Keep shrubbery and trees trimmed. Making your property more visible to yourself. This also gives fewer areas for someone to hide or go un-noticed.
-when you plan on being away for a weekend, it is always a good idea to leave one or two lights on throughout the house, to make the home seem occupied.
-A good security system is a great piece of mind, and can help save a little extra money on your homeowner’s insurance premium. Most systems can be directly linked to notify police or the fire department in the case of a break in or fire.
-When it comes to social media websites, it is best not to post your vacation plans online. You never know who is reading.
These are just a few tips to help. Maintaining a loss free history also helps keep your homeowners insurance premium low. In the situation where you need to file a claim, it is great to know that you are insured by someone who cares and is ready to help!
Just another friendly reminder from our team,Preferred insurance service inc.
You have insurance, BUT… is it going to cover you when you need it?
You Pay your insurance premiums, and you know you have at least what the law or your Lien holder requires you to have… and that makes you feel secure, right? Well I wish I could tell you that it was as easy as that, but unfortunately it isn’t. Most people are unaware of the coverage limits that their policy actually provides. This is why it’s a good idea to review your insurance coverage at least once a year with your trusted agent.
The California law only requires you to maintain liability property damage limits of $5,000. This is the limit that your insurance company will pay to any property you damage, whether it is a vehicle, fence, wall etc. This limit was introduced many years ago. According to the FTC*, the average cost of a new car sold in the USA is $28,400. What happens in a situation where you only carry the minimum limits, and you are involved in an accident with one of these “average new cars”? You will be held liable for the balance of any damages exceeding $5,000. This has the potential to put you on the hook for a big dollar amount! Along with your liability coverage, the state minimum includes bodily injury limits of up to $15,000 per person and $30,000 total per accident. This might seem to be a decent amount of coverage. But with the increase of medical costs sky rocketing over the years, these limits will not go far. This is why it is a great Idea to review your coverage with your agent.
Insurance is defined as a transfer of risk. You are paying your insurance company a premium, to transfer your risk of paying a large sum in the case of an accident. Not all Insurance is created equal. You should feel comfortable knowing you have the coverage that you need to help keep you out of court, or from paying extra out of pocket in the case of an ugly accident. In most cases the increase in coverage is only a few dollars more per month.
Optional coverage’s are also another thing to consider. Does your policy provide you with Rental car coverage in the case of an accident? Rental car rates are also on the rise. I was just recently on a vacation in northern California, where we had to rent a small car for the weekend. That small car for 3 days cost us close to $300. Most of the time, adding rental coverage to your policy is as little as a couple dollars per month… and it is greatly beneficial if you do not have substitute transportation. Another great optional coverage is uninsured motorist. In California we still have a significant amount of people driving around without insurance… whether they just don’t have it, or are 5 days behind on a payment. They just flat out have no coverage. Uninsured motorist protects you against these drivers.
At the end of the day, you want to feel assured that you have the coverage that you need. Talk to your agent, or get in contact with one that is willing to help, and understand your situation to help insure your assets, and protect you and your family financially. Most of the time you will be surprised that the extra coverage is about the same cost of a coffee from one of those fancy coffee houses.
http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut11.shtm*
http://www.dmv.ca.gov/pubs/brochures/fast_facts/ffvr18.htm#minliareq
Do you have an Agent?
Actors and Professional Athletes have agents that represent them in their business dealings. So why shouldn’t you have an agent that represents and advises you on your insurance needs. An Agent is a professional who analyzes their customer’s needs and advises them on the best course of action.
When it comes to insurance, an Independent Local agent is the best person to represent you. The agent does not work for the insurance company, rather he works for you. An independent local agent has access to multiple insurance companies to choose from. Sure you can get a quote without an agent, but how long will it take you to quote 40 different companies? Well you might say if you do it yourself you will save more money! That’s an INCORRECT statement. Many Agents do not charge a fee for their services. They do get a commission from the insurance company that they place you with, but that has no bearing on your insurance premium, if you don’t use an agent you will get the same price regardless.
Here are some reasons to have a local agent:
- They work for YOU! not the insurance company
- They shop multiple companies to save you money
- They work and live in your community
- They guide you on the coverage that best fits your needs and budget
- You get to deal and build a relationship with an agent you know, Instead of talking to a different person every time over the phone
These are just some of the benefits of an Independent Agent. I would advise you to make sure that the agent is reputable and licensed. If that agent does not take the time to understand your situation and advise you on the different options of insurance coverage you should not give them your business. All our agents live and work in Riverside, CA and have been with the company for over 7 years. Isn’t it time that you talk to an Agent to advise you on your insurance needs?
What is a total loss as it relates to your auto insurance policy?
A total loss refers to an insured vehicle involved in a loss that the insurance carrier determines is not economically viable to repair. When an insured vehicle is involved in an accident, the insurance carrier will do an appraisal of the damages to get an estimate of the cost to repair the vehicle. If the cost to repair is close to or greater than the market value of the vehicle, then the carrier will treat the vehicle as a total loss. This means that the company will pay the insured the Actual Cash Value (ACV) of the vehicle less any policy deductible instead of repairing the vehicle. They will then sell the vehicle to a salvage yard or auction.
Why declare a vehicle a total loss when the cost to repair might be less than the ACV?
Often the first estimate of the cost to repair is not the last. A body shop may find additional damage once they begin to tear down a vehicle for repair. These additional repairs often cause the repair cost to rise above the vehicle value. Plus, there are other costs incurred during this process:
– Loss of use (the carrier may be paying for a rental car during the repair process).
– Parts quoted in the estimate may not be available so other more expensive parts may be required.
– When additional damage is found during the repair, the carrier may determine the vehicle to be a total loss at that point. By then, they will have incurred the cost of the tear down and any work already completed.
– There may be additional costs to dispose of the vehicle after the tear down.
What if the insured can not replace their total loss vehicle with the ACV payment?
Section 2695.8 (c) of the California Code of Regulations addresses this issue. If an insured can not find a comparable vehicle for the gross amount of their total loss settlement (plus their deductible) and they notify their carrier within 35 days, the carrier will have to reopen and reevaluate the claim and settlement. Most carriers address this requirement by providing information on available comparable vehicles at the time of the settlement.
Do you Rent?
Do you have renters insurance? If your answer to that question is yes, then you probably don’t need to read this article, but you should do so anyway! The majority of Renters are unaware of renters insurance or they have a misconception that it’s expensive. Lets briefly talk about what renters insurance does, and the average cost for the coverage.
Renters insurance covers your personal property, things like TV’s, Furniture, Clothing, Jewelry, etc. In case of a fire or theft, you will be compensated up to the limits of your policy. You might be thinking… I won’t get burglarized or my dog skip will get those criminals to think twice. Poor skip should not bear all that responsibility, what if the poor dog was sleeping on the job. All joking aside if you rent, you should have Renters insurance… Ok what is the cost?
For about $220 a year you can cover your personal property in the amount of $25,000 and get $100,000 Liability coverage. For that price you can’t afford to go without renters insurance. This coverage also satisfies the requirements from your landlord. We have payment plans if you don’t want to pay in full. If you ever move, we can move your coverage to the new address. Call us today for a quote, and we can get your policy started the same day.
Do you have questions regarding this Article or would you like us to discuss another insurance topic? Send your comments or recommendations.
What are your liability limits?
Are you telling me you don’t have this memorized? Sure most of us have liability coverage, but do you know what that liability covers and how much? Many people shopping for insurance are unaware of the dizzying options one has for Liability limits. Some people have no clue what amount of liability they have, until they get into an accident.
You might be asking yourself why I should care what limits I have, all that matters is that I have insurance! Having insurance is a great first step, but having the right amount of insurance can protect you from law suits and unnecessary expenses. Most of the time the cost for better protection can only be an extra $5 a month, that’s definitely worth peace of mind.
Let’s go over the basics, the state of California requires that drivers have the following limits in California $15,000 per person for injuries, $30,000 per occurrence for injuries, and $5,000 in property damage. If you’re thinking that those limits are not sufficient, I would agree with you. Most cars on the road cost more than $5,000, factor in labor costs and a minor fender bender can easily go over $5,000. What if you are involved in an accident that causes a chain reaction that damages more than one car? An ambulance ride to the hospital can easily cost $2,000, that’s without factoring in the injury itself. What if that injured person is unable to work because of the accident? You get the point; there is not enough money to go around to cover all the “what if” scenarios.
What kind of limits should you have? I would recommend that liability limits not be lower than $25,000 per person, $50,000 per occurrence, and $25,000 in property damage. With these limits you can have peace of mind that you will have sufficient coverage to cover injuries or damages in most accidents. If you only had the minimum required in California it would leave you vulnerable to expenses that might not be covered by your insurance liability limits. If you have substantial financial assets to protect I would suggest at least $100,000 per person, $300,000 per occurrence, and $50,000 in property damage. The point is that you can never have enough liability limits because we can not predict the outcome of an accident. You should have enough coverage so that in the unfortunate chance you are involved in an accident you don’t have to worry on whether your insurance company will cover the damages or not.
More coverage sounds great but it also costs a lot of money, right? Not necessarily. If you have a good driving record, having higher limits in most cases will only increase your payments by $5 to $10 a month. Personally, I would rather pay an extra $10 a month than be liable for $10,000 worth of damages or injuries. In the case where the driving record is not spotless (we have all been there before) the price increase is worth the coverage.
Take a look at your liability limits and ask yourself, is this enough coverage in the case of an accident? Know your coverage so that in case of an accident you are confident of the protection you have. Call us and we can provide you with a free quote on higher limits of liability.
Things to know about Homeowners Insurance
When was the last time you checked your home insurance coverage or compared your rate? Let’s be honest, in today’s world we have so many things to do and so little time to do it, that we don’t find the time or effort to go over tedious things such as homeowners insurance. Home insurance is not the most exciting thing to talk about, but knowing your coverage and the way it works can save you a headache incase of a loss and will protect your biggest asset. If you have your home insurance payment combined with your mortgage payment you might not have checked your premium or coverage in a while, so its time to dust off those home insurance declaration pages, it might end up saving you some money.
So what are the different parts of a homeowner’s policy and what do they cover?
Dwelling coverage: This is the amount that the insurance company will pay up to in case of a loss. This is where the bulk of the premium is charged, the higher your dwelling coverage usually translates to a higher insurance rate.
Other structures: This is coverage for structures that are not part of your house, but are on your property, like a tool shed.
Personal Property: This covers your personal belongings/possessions in case of damage or theft as long as the damage is a result from a covered loss.
Loss of use: Protects you in the event that your home is destroyed or damaged and you must seek other living arrangements while repairs are made.
Personal Liability: This coverage would protect you against lawsuits brought against your and your property.
Medical: This is the amount the insurance company would pay incase a person is injured on your property and did not wish to pursue a lawsuit against you.
Let’s go over some of this coverage in more detail:
It is always important to check your dwelling coverage; you want to make sure you have enough coverage to cover your house in case of a total loss. It is also a good idea to have extended replacement cost coverage on your home. This will extend your dwelling coverage an additional 25%-50% in case of a total loss.
For personal property, you should know the difference between Actual Cash Value (ACV) and Replacement cost. ACV will pay you the depreciated value of your personal contents, so if you bought a TV for $1,000 and the value at the time of loss is $200 the company will only pay $200. Replacement Cost would pay $1,000. Insurance companies have limits on contents such as Jewelry, Firearms, and art. If you have possessions that go beyond these limits make sure you schedule those on your policy with your insurance agent.
In today’s lawsuit happy society you should always make sure you have adequate Personal Liability. Most homeowner’s policies come standard with $100,000. I would recommend raising the limit to at least $300,000, because the price is minimal for the amount of protection you will obtain.
This general overview of Homeowners insurance should provide you with a good understanding of how your policy works. Remember to review your coverage, make sure your coverage is enough to protect your biggest asset. Do not be afraid to compare prices, by doing this you will make sure you are obtaining the most coverage possible for your money. It is always good to discuss your coverage with an insurance agent… feel free to contact me with any questions you may have.