by onlinefinancialnewsletters | Oct 4, 2016 | Personal Protection
Unlike motor vehicle insurance, homeowner’s insurance is not required by law. However, if you purchased your home with a mortgage, your lender likely required you to buy a homeowner’s insurance policy to protect their investment in case of a fire or natural disaster. It’s important coverage to have—even if you own your home free and clear—and you may even be able to reduce your annual premium once you understand the factors that generally affect homeowner’s insurance rates.
- Your home’s age and construction.
When setting a homeowner’s insurance rate, the insurer estimates how much it will cost to rebuild the property in question should it be damaged or destroyed. Materials and features common in older homes—such as hardwood floors and ornate details—cost more to repair and replace. Whether the exterior was constructed out of brick or wood will also factor into the cost, as will the age of the electrical, heating/cooling and plumbing systems. Upgrades reduce the likelihood of loss and often lower homeowner’s insurance premiums.
- Pools and hot tubs on the property.
If your home includes a swimming pool, spa or hot tub, your homeowner’s insurance is going to be more expensive because additional liability coverage will be required. While most policies include a minimum $100,000 in liability protection, your insurance agent may recommend increasing it to between $300,000 and $500,000 as well as adding an umbrella policy with at least $1 million in protection. If you want to minimize your homeowner’s insurance costs, avoid purchasing properties without outdoor pools and hot tubs.
- The location of the nearest fire department.
Direct property loss as a result of home fires has been estimated at $7.3 billion annually. If your home is near a fire department (or even a fire hydrant), you’ll pay less for your homeowner’s insurance as a result. Homes in urban and suburban areas usually have better fire protection than those in rural areas as well. So if you want to keep your homeowner’s insurance costs as low as possible, consider location when buying a home.
- The location of the nearest body of water.
If your home is near a coastline, large body of water, or in a floodplain, you’re going to pay higher homeowner’s insurance premiums. Depending on your location, your policy may have a separate deductible for hurricanes and windstorms. And flood damage—from any exterior source—is not covered by standard homeowner’s insurance policies. You’ll need a policy specifically for flood insurance if you’re in a high-risk area.
- Your past insurance claims history.
Even if you’ve purchased a new home and changed insurance companies, any claims you made at your previous residence will be considered when setting your homeowner’s insurance rate. Insurers can access this information through the Comprehensive Loss Underwriting Exchange, which reports filed claims for seven years. In general, the amount of the claim carries more weight than the reason for the claim.
Whether you’re in the process of looking for your next home or just want to explore ways to lower your current homeowner’s insurance rates, your insurance professional is your best resource for information on these and other factors that will affect your premium.
by onlinefinancialnewsletters | Aug 29, 2016 | Personal Protection
Traditional house keys may soon go the way of rotary phones thanks to new lock technology. From fingerprint sensors to Bluetooth and Wi-Fi enabled systems, keyless entry products are rapidly transforming the way Americans secure the doors to their homes. Are these easy-access locks the right choice for you? If you’re not comfortable with technology, they probably won’t be. However, if you have no problem programming your DVR, universal remote and household thermostat, a keyless lock may be a good option.
Types of Keyless Locks Available Now
- Biometric locks recognize your fingerprint, allowing you to unlock your home with a swipe of your finger. This type of keyless lock requires you to program it with your fingerprint as well as those of the rest of your family or others you want to allow to access your home.
- Proximity locks use RFID technology and work with a key fob that you carry with you. Much like electronic car door locks, you can unlock or lock them with a press of the fob button. Some don’t require you to remove the fob from your pocket or purse first, either—a handy feature if you regularly enter or exit your home after dark or often have your hands full.
- Smartphone-controlled locks synch with your mobile phone via Bluetooth. This allows you to control entry to your home remotely as well as track who is coming and going. Some of these locks will actually text you when someone else opens your home’s door. Others will automatically unlock your door when you approach it.
- Keypad locks, the earliest type of keyless locks available for homes, are still a good option as well. They all require you to program an entry code, though newer, more complex models may allow you to have individual codes for specific people or even program a greeting that will play when the door is unlocked. Surveillance varieties take photos of whoever opens the door.
Prices for electronic door locks range from $100 to more than $1,000, depending on the type of lock and features included. While they can make entering and exiting your home easier—unless there’s a power outage or the circuit board fails—they aren’t necessarily more secure than traditional keyed locks are.
Burglars generally enter homes through unlocked doors or windows or by forcing open a window or door. If security is your main concern, you’re probably better off investing in solid wood or steel exterior doors rather than the latest electronic lock technology. Door jams reinforced with steel plates will also make it more difficult for an intruder to kick in the door.
Whether you opt for traditional keys or a new, high tech electronic lock for your home, it’s important your property is adequately insured in the event of a break in. If you don’t currently have homeowner’s or renter’s insurance, talk to an insurance professional about your options. If you already have a policy, it’s wise to review your coverage at least once a year and make appropriate adjustments.
by onlinefinancialnewsletters | Aug 14, 2016 | Personal Protection
According to the Centers for Disease Control and Prevention (CDC), motor vehicle injuries are the leading cause of death among children in the United States. In 2013, 638 children ages 12 and younger died in motor vehicle crashes. Another 127,250 were injured.
Many of these deaths and injuries could have been prevented with the use of a proper child safety seat. Car seat use reduces the risk of death for children under age 1 by 71 percent and children ages 1 to 4 by 54 percent. Booster seat use reduces the risk for serious injury in children ages 4 to 8 by 45 percent compared to the use of seatbelts alone.
If you want to ensure children riding in your car are doing so safely, you’ll need to do the following:
- Know your state’s child passenger safety laws. While requirements vary based on age, weight and height, all states require child safety seats for infants and certain children. Many require children to ride in the rear seat whenever possible, as well as the use of rear-facing infant seats, forward-facing child safety seats, and booster seats for older children. You can review state-by-state laws here.
- Make sure the car seat is appropriate for your child’s size and age. Rear-facing car seats should be used from birth to age 1 at minimum. However, it’s wise to keep your child in a rear-facing car seat until he/she reaches age 3 or outgrows the height and weight limit specified by the manufacturer. At this point you can transition your child to a forward-facing car seat until he/she is age 7 or again outgrows the manufacturer’s height and weight specifications. Booster seats are recommended for children age 7 and older who cannot fit in a seat belt correctly without one.
- Only buy car seats rated and recommended by the National Highway Traffic Safety Administration (NHTSA). These seats meet Federal Safety Standards as well as strict crash performance standards. You can find a list of NHTSA rated car seats, along with information on their ease of use, here.
- Make sure you install and use your car seat or booster seat properly. Seats must be carefully installed according to the owner’s manual instructions. If you need assistance, you can consult a child passenger safety technician (find one here) or visit a car seat inspection station (find one here) in your area. Local law enforcement agencies may also hold periodic car seat inspection events.
- Put your child in the middle of the vehicle. When travelling with one child or only one child in a safety seat, place it in the center of the backseat. In the event of an automobile collision, this is the safest location in the vehicle.
- Register your car seat with the NHTSA.Unfortunately, recalls happen. If you want to avoid using an unsafe car seat that has been recalled, you can register with the NHTSA to receive notices about safety-related defects and recalls.
by onlinefinancialnewsletters | Jul 25, 2016 | Personal Protection
Fires, floods, tornados, hurricanes, high winds, hail and lightning… Mother Nature has some serious weapons in her arsenal, and she’s not afraid to use them. With extreme weather becoming more common in many parts of the country, every home is likely at risk of incurring damage from more than one type of natural disaster. In some cases, even with insurance, the outcome is financially dangerous. Consider the following monetary hardships you may encounter.
You’ll probably pay clean-up costs out of pocket.
Even if these expenses are covered by your homeowner’s insurance, you may want to pay for them upfront in order to speed up the process. From removing downed trees to ripping out water damaged drywall and flooring, clean-up can run in the thousands. If you don’t have that kind of cash on hand, you’ll have to live surrounded by debris until you receive the check from your insurance company. Talk to your insurance agent about what your policy covers as well as how quickly payouts are usually made.
You’re going to need vital paperwork.
From your insurance paperwork to birth certificates, social security cards, bank account and credit card information, there are many important documents you’re likely to need in order to get your life back in order after a natural disaster. If they’re lost or cannot easily be accessed, it could delay the processing of your insurance claims and receipt of any government assistance to which you may be entitled. Experts advise making copies of important paperwork and storing it electronically using a cloud-based storage provider such as Dropbox. You might also consider keeping hardcopies of important documents in a safe or safe deposit box.
You might be on the hook for more than you realize.
You knew you needed insurance, but you also wanted to keep your premiums low. You may have bought a policy with a higher deductible as a result, and you’ll have to put that much cash towards clean-up and repairs before your insurer will cover any difference. Talk to your insurance agent now—before a natural disaster strikes—about the deductible and coverage limits on your insurance policies. If you live in an area where certain types of extreme weather are common, it might make financial sense to increase coverage and reduce your deductible.
You’re probably going to need access to cash.
After a major natural disaster, power outages are not uncommon—and they can last weeks and cover large areas as well. Whether you need to secure a hotel room for your family, buy clothing and toiletries, or just pay for pizza delivery until you can use your stove again, you may need to use cash if debit and credit card machines are down. Consider putting some cash in a safety deposit box at a bank in a neighboring town. Set up direct deposit with your employer so your earnings will automatically go into your bank account as well.
Do you know what your insurance policies cover? Are you concerned about the financial implications of a natural disaster? Call us today to review your coverage and discuss options to lessen the financial burden should Mother Nature decide to strike your home.
by onlinefinancialnewsletters | Jul 11, 2016 | Personal Protection
Nearly 4 million. That’s the number of babies (3,988,076 to be exact) born in the U.S. in 2014 according to the Centers for Disease Control and Prevention. It’s equal to about 10,926 births every day. If you’re among one of those families expecting a newborn—especially if it’s your first time—you’re probably thinking about a zillion things other than insurance. However, if you want to truly protect that little bundle of joy from life’s potential calamities, the right insurance coverage is essential. Consider these important insurance moves you should make before you welcome your baby into the world.
Invest in Life Insurance (or Adjust Your Coverage)
Whether you’re in a relationship or a planning to raise your child on your own, you—and your partner if you have one—need life insurance. The premium may even be lower than you think. Individual policies are available for less than $1 a day, though the amount of coverage you need and type of policy you choose will affect your actual costs. Ask your insurance agent for help with analyzing your situation and purchasing an appropriate policy.
Keep in mind, a medical exam is often required if you want to buy term life insurance or whole life insurance and health issues connected to pregnancy—such as increased weight—may affect your rates. If they do, you may be able to have a recheck after you’ve delivered your baby so the rate can be adjusted down accordingly.
If you already have life insurance, make an appointment to review your coverage with your insurance agent. The more children you have the more money will be needed to support them if something happens to you or your partner. Adjust your coverage accordingly.
Review Your Health Insurance
Under the Patient Protection and Affordable Care Act (ACA), it became mandatory for health insurance policies to cover pregnancy and delivery. However, there are a couple exceptions to the rule. For example, if your previous health insurance plan was ‘grandfathered’ in, it may not include maternity care. And if you’re under the age of 26 and still on your parents’ health insurance policy, you may not be eligible for maternity coverage if your mom or dad’s employer is self-insured and able to exclude that coverage for dependents.
Even if you’re sure your health insurance plan covers maternity care, you should still take time to learn more about the specifics. Depending on the plan you have, it’s very possible you’ll need to pay at least a portion of the costs of your hospital stay. Make sure you choose an in-network doctor and hospital to minimize your out-of-pocket expenses.
If you don’t yet have health insurance, you’ll need to wait until the open enrollment period—from November 1, 2016 to January 31, 2017 for 2017 coverage—before you can purchase a policy. Employer-sponsored plans may have a different open enrollment period, so talk to your company’s human resource department or benefits administrator.
Don’t forget to add your new baby to your health insurance as soon as he/she is born. Birth is considered a ‘life changing’ event under the ACA and qualifies for a special enrollment period of 60 days from delivery for marketplace insurance plans and 30 days from delivery for employer-sponsored plans.
Evaluate Your Car and Homeowner’s Insurance Policies
If you’re moving to a new home so you’ll have more room for a child, you’ll need homeowner’s insurance. If you don’t plan to move, you’ll still need to update your home inventory to include all the accoutrements a new baby requires. Without that documentation, you may not be compensated for those new belongings if they’re destroyed in fire or stolen by a burglar. You’ll also need a new car insurance policy if you’re investing in a newer or bigger vehicle. Your insurance agent can help you shop for the best coverage at the lowest price.
by onlinefinancialnewsletters | Jun 6, 2016 | Personal Protection
Shoes that are too tight can hurt your feet. Pants that are too loose will fall down. Whatever clothing you’re putting on your body, it’s important to find the right fit if you want to look and feel your best. The same can be said about homeowner’s insurance. If you purchase more coverage than you need, you’re wasting money. But if you underinsure your home and possessions, recovering from a burglary, fire, flood or other natural disaster could be even more costly.
You need homeowner’s insurance with coverage that’s just right for you. And with a little time for research and a few conversations with your insurance agent, it’s absolutely possible to get it.
Begin by reviewing your current policy. Will it reimburse you for the value of your home and property based on its current condition (actual cash value coverage) or will you receive the funds required to replace what you’ve lost (comprehensive replacement cost coverage). Depreciation will hurt you if it’s the former. The age of your home and belongings doesn’t factor into the equation with the latter.
Make sure your coverage limit is high enough. You’ll need enough to fully cover the costs of rebuilding your home (excluding the value of the land) and replacing the rest of your property. In the case of your residence, this is not the same as current market value. Rebuilding could cost more—or less—than what your home would sell for today.
Take a look at local construction costs. If you recently purchased a newly built home or refinanced a mortgage in the last year, the appraisal should offer a fairly accurate representation of replacement cost as well as actual cash value and market value. If you own an older home, talk to local homebuilders about the average cost per square foot of construction. Then purchase coverage accordingly.
Account for upgrades. If you’ve spent at least $5,000 on remodeling projects since you last adjusted your homeowner’s insurance policy, you should consider increasing your coverage. If you’ve made any other high-ticket purchases or the value of the items in your home has otherwise increased, you should also adjust your coverage.
Buy endorsements as necessary. If your policy only provides actual cash value on contents, you may be able to purchase an endorsement to receive replacement cost value. If you own valuable items that aren’t covered by the standard policy, you can purchase endorsements for those as well.
Don’t forget your liability coverage. By some accounts, the average liability claim for bodily injury and property damage is nearly $16,000. If you have a gathering at your home and someone falls down the stairs, or a delivery person slips on your icy sidewalk during the winter, being underinsured will hurt you.
If you’re worried about the cost of fully insuring your home and belongings, we may be able to help you find ways to make your premiums more affordable. These include bundling endorsements, eliminating unneeded riders, and adjusting payment limits on a variety of claims. Give us a call today to review your current policy and discuss money-saving options.
by onlinefinancialnewsletters | May 16, 2016 | Personal Protection
Your teenager just got his or her driver’s license and is begging you for a car. You’ve been thinking about buying a new one anyway, so you decide to give him your current ride. After all, an older vehicle should cost him less to insure as well as repair if he gets in an accident. Problem solved, right? Not so fast.
While hand-me-down cars can be money-savers, they also have potential drawbacks. One study conducted by the Insurance Institute for Highway Safety found that 48 percent of drivers between the ages of 15 and 17 who died in crashes from 2008 to 2012 were in cars that were at least 11 years old. Before you gift an older car to your child, ask the following questions.
- How safe is it?
Older cars may lack the safety features available on new models. While front-collision air bags have been required on all cars produced since 1998, electronic stability control didn’t become standard until 2012. Side-curtain air bags—which can be lifesavers in rollover crashes—are fairly rare even in cars purchased this decade.
Review the owner’s manual to determine the car’s safety features. You may want to check out crash-test ratings as well. You can find many on the Insurance Institute of Highway Safety website.
- Has your teen driven it?
While the aforementioned study found that 29 percent of the fatally-injured teenagers had been driving a small car—and 35 percent operating mid-size vehicles—bigger isn’t necessarily better. In fact, handing down a car that your teen has already been driving regularly is a more important consideration than size.
For example, if your daughter is used to driving a small car and you give her your large SUV because you think it will be safer on icy roads, you could actually be setting her up for an accident due to the difference in blind spots and turning ratios. On the other hand, a teen who learned to drive in a large car may not be able to do so as safely in a compact vehicle.
- Is it in good mechanical condition?
If you’ve been diligent about maintenance, you’re probably confident in your car’s condition. However, it makes sense to have a mechanic look it over before you hand it down to your child. A review of the vehicle’s systems will cost you, but that’s a small price to pay for the peace of mind you can have knowing your teen won’t be stranded due to engine trouble.
- Will it really be affordable to insure?
Teenagers pay some of the highest insurance premiums due to their minimal driving experience. Certain cars—such as those that are more valuable or are expensive to repair—will bump the price of their auto insurance up even more. Ask your insurance agent for a quote on the hand-me-down make and model.
Is your teen about to become a licensed driver? Contact us today to discuss adding him or her to your insurance policy or to explore other car insurance options.
by onlinefinancialnewsletters | May 2, 2016 | Personal Protection
Identity theft is increasing dramatically in the U.S. today. According to the Federal Trade Commission (FTC), consumers reported more than 490,000 incidents in 2015, a startling 47 percent increase over the prior year’s number of reported identity theft crimes. While identity theft can happen to anyone, certain activities—such as posting personal information on the Internet or losing your wallet—can increase your risks. Improper disposal of paper documents can also be an issue. Consider these tips on what you need to shred and what you can safely recycle before your next desk or filing cabinet purge.
- Shred anything containing your social security number. This is the holy grail of personal information in the eyes of would-be identity thieves. If they get their hands on it, they can open credit cards and fake checking accounts in your name. Your social security number may be included on employer paperwork, medical bills, health insurance cards and statements, credit card, banking and loan statements and more.
- Shred your bank and mortgage statements. Paper statements sent for checking, savings, personal lines of credit, your mortgage and other loans will include your account information and—in many cases—your social security number. Experts advise saving these for three to seven years for tax purposes, but after that time has elapsed you should shred and recycle them. For maximum protection, shred everything you receive from your bank before putting it in the recycling bin—even if it’s just a policy change document or new product advertisement.
- Shred your bills. From gas and electricity to water and trash collection, utility and service bills often contain sensitive information and may even include your social security number. Once you’ve reviewed the accuracy of the charges, shred and recycle them.
- Shred anything with your signature. Did you have to sign the receipt at the drycleaner in order to pick up your order? Did you write an old-fashioned paper letter and then decide not to send it? A good rule of thumb is to shred anything that has your signature on it before putting it in recycling.
- Recycle standard receipts. Receipts that don’t include your signature can be tossed in the recycling bin without shredding. This is true even if they contain the last four digits of your credit card number. However, receipts from ATMs for deposits and withdrawals should be retained for two years—according to experts. You can then recycle them.
- Recycle junk mail, catalogs and magazines. Coupon books, sale’s flyers, catalogs and other junk mail can be recycled without shredding. The only information they contain is your address. The same goes for magazines after you’ve read them.
Keep in mind, cross-cut or diamond-cut shredders are better than those that simply turn documents into long strips of paper that are easy for identity thieves to reassemble. If you don’t want to invest in your own equipment, check your local government website for a shredding program or secure document recycling event. Some banks also hold periodic community shredding events.
by onlinefinancialnewsletters | Mar 30, 2016 | Personal Protection
In order to legally operate your motor vehicle in the U.S., you must have a car insurance policy in place. The minimum requirements for bodily injury and property damage liability vary by state and must be considered when selecting insurance coverage. These minimums won’t change as your car ages, but the additional coverage you choose to purchase may. Consider making these adjustments as your vehicle becomes older.
When Your Car is New…
If your car still has that new car smell, your best option will be full coverage insurance. A full coverage policy will cover the liability minimums required by your state as well as collision and comprehensive. Comprehensive means if something that’s not your fault (hail, vandalism, etc.) damages your vehicle, your insurance policy will reimburse you up the value of it (minus the deductible, of course). Collision provides the same coverage if something happens that is your fault (slamming into a telephone pole, etc.).
Full coverage is required under most auto loans. However, even if you paid cash for that brand new vehicle, and own it outright, full coverage insurance still makes sense as protection for your investment. According to Kelley Blue Book the average new car price is $33,543.
You may also want to purchase gap insurance. By some accounts, new cars lose 11 percent of their value when you drive them off the lot and 15 to 25 percent more each year. If something happens to your car and your auto insurance policy will only reimburse current value, gap insurance will make up the difference between that sum and what you still owe your lender.
When Your Car is Two to Five…
By now you’ve probably paid off your auto loan (or are close to doing so), so you can ditch the gap insurance if you purchased it. But don’t drop comprehensive and collision coverage just yet. Depending on the original value of your car, it may still be worth more than you’re willing to lose in the even that it’s totaled.Instead, consider adjusting the deductible on your policy. Doing so will lower your annual premium, without the need to sacrifice full coverage.
When Your Car is Six to 11…
If you’ve been itching to get rid of that full coverage, you may now be able to safely do so. Determine the viability of your plan by researching how much your car is currently worth. You can use resources like Kelley Blue Book to do so. Once you know your vehicle’s value, subtract your deductible. The resulting figure is the amount your insurance would pay you (if you have comprehensive and collision) if your car is totaled. Can you afford to lose that much? Is the amount you’ll save each month worth the risk? If you can answer yes to those questions, you might be okay with liability coverage alone.
When Your Car is 12 or Older…
If you’re still paying full coverage at this point, the value of your vehicle may no longer be worth the burden of the higher premium. However, if you’re reluctant to drop to liability insurance alone, talk to your agent about losing collision coverage (which tends to be most expensive) and keeping the comprehensive as protection against events like tornados and theft.
Whether you’re buying your first car or driving one that’s 15 years old, we have policies to fit your needs. Give us a call today for answers to all of your automobile insurance questions.
by onlinefinancialnewsletters | Mar 21, 2016 | Personal Protection
It’s no secret that household water leaks are bad for the environment. According to the Environmental Protection Agency (EPA), the average household leaks more than 10,000 gallons of water every year. To put that into perspective, your own home may be wasting enough water annually to wash 270 loads of laundry! Ten percent of homes have leaks that waste 90 or more gallons of water per day.
These leaks are also bad for your wallet. Fix them before they cause additional damage and you could save 10 percent on your water bills by the EPA’s calculations. Allow them to get worse—which could lead to mold and water damage to fixtures and flooring, and your repair costs could be in the thousands. Fortunately, a simple maintenance plan is all you need to prevent the most common household leaks in the first place.
Every Day…
Listen for running water in your bathroom. Toilet tanks that refill continuously can seriously affect your water bill. Replace assemblies and cut-off valves as needed.
Every Year to Twice a Year…
Inspect the cabinets under your sinks at least once a year. Look for dripping water and evidence of larger leaks. You should pull out your dishwasher and inspect the floor beneath it for water damage as well. Repair any issues you discover.
Check the plastic hose that connects your refrigerator’s ice maker to the water line at least once a year. If it’s discolored or cracked, replace it. If you never use the icemaker feature, consider leaving it unconnected.
Examine your home’s pipes, looking for signs of condensation and corrosion. Cracked or warped flooring may also be evidence of a leak.
Inspect your water heater annually. Corrosion, bulges in the tank and leaks are all issues which will require repair. Hire a professional to check the anode rods.
Hire a professional to inspect your HVAC unit every year. Clogged drain pans in attic air handlers and radiator leaks can cause costly damage to the walls, floors and ceilings of your home.
Clean your gutters every spring and fall to prevent overflow. Make sure downspouts are directing water away from your house to protect your basement and foundation.
Every Five Years…
By some calculations, washing machine failures are the costliest water-related insurance claims. Change out your washing machine hoses every five years and, if possible, use a reinforced steel-braided variety rather than rubber. If you’re going to be away from home for an extended time, consider turning off your washing machine’s water supply.
Even with the best maintenance, accidents may happen. Water detection alarms can alert you to possible leaks in damage-prone areas including bathrooms and basements. Some will even call your mobile phone to notify you of a leak if you’re not at home. Basic models can cost less than $20; the most advanced can set you back $300 or more—but that’s still a lot less than many major home repairs.
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