Insurance Education Archives - Henderson Insurance Services

Do You Need Earthquake Insurance?

July 16, 2019 by nanette

Employee hiding under a desk during an earthquake

We have all heard it many times before; the impending possibility of having a magnitude 6.7 earthquake is a strong possibility here in California. There is no warning system and it could happen at any time.

Also a known fact is; most Homeowners Insurance Policies do not cover damage or losses caused by Earthquakes and believe the cost is too high to purchase Earthquake Insurance. But it does not have to be this way and you may be surprised as to how affordable it can be. You can choose Flexible deductibles, Coverage and Payment options.

Over 80% of homeowners in California do not carry Earthquake Insurance and probably are banking it will never happen to them.

Just like purchasing a Life Insurance Policy; you get it to safeguard against an unlikely or devastating occurrence in your life. A strong Earthquake can cause devastating damage to your Home and property.

Let’s face it; most people probably would not purchase auto or health insurance unless it was required by law. And, most of us are not wealthy enough to recover from a devastating event like an Earthquake. There are no two Earthquakes alike and new faults are being discovered.

Another caution we have is, not to assume that by bolting down items or retrofitting your home is enough. While this is certainly being proactive, it probably would not protect if the foundation below gives way.

As Californians we know we have the best weather in the Country and thus our homes are built in flood zones, on mountainsides and on earthquake faults. You may think just because we do not have torrential rain and tornados we are not at risk. While weather related damage can be devastating, they also come with some kind of warning systems while Earthquakes do not.

Feeling lucky? Don’t! Our luck may be running out…

Understanding Common Gaps in Insurance Coverage

November 17, 2015 by nanette

To find out what the most common gaps are, we sought the advice of the claims professionals at Safeco Insurance. They quickly focused on three common insurance gaps. All three shared a similar feature, a misconception that can lead to inadequate coverage. 3 Common Insurance Gaps 1. Valuable Articles Coverage:

Misconception: If my wedding ring and grandma’s heirloom earrings are stolen, my homeowners’ policy has me completely covered.
Fact: When policyholders become the unfortunate victim of a theft, fire or natural disaster. their experience becomes even more painful when they discover that their homeowners’ policy has specific internal limits on jewelry. collectibles. art and other items.
Guidance: Talk to your independent insurance agent about jewelry, antiques or memorabilia that you own. If you buy a new collectible or get a gift, such as a new watch, be sure to check in with your agent to make sure your coverage is still adequate.

2. Loss of Use Coverage:

Misconception: If l‘m involved in an accident and my car is in the shop, I’ll still be able to get to work because my auto policy includes rental car reimbursement.
Fact: When a covered loss requires a vehicle to be in the shop for repairs. many customers are unaware that their base policy does not help pay for the cost of a rental car – and they find themselves in a bind with no way to get to work, or get the kids where they need to go.
Guidance: Consider a scenario where your insured vehicle has been in an accident and must be in the shop for two, four or more days. Could you share the other family car or borrow a car from a relative? Could you get by biking or using public transportation? If the answer is no, loss of use coverage may be a valuable addition to your policy.

3. Original Equipment Manufacturer Coverage:

Misconception: If my Ford Mustang is in an accident, the damaged parts will be replaced with new, original equipment manufactured by Ford.
Fact: Customers with luxury vehicles or prized sports cars can be disappointed to learn that their car is being repaired using a new part not manufactured by the original manufacturer or a recycled part made by the original manufacturer.
Guidance: Have a discussion with your independent agent about your preferences. If it’s important to you that your car be repaired using original factory parts. consider original equipment manufacturer (OEM) coverage.

Why are my insurance rates going up?

July 27, 2015 by nanette

Calls come in all the time asking why rates are increasing even though the insured has had no claims, tickets or accidents.

There are a number of factors in play but one of the most prominent one is FRAUD. The FBI has estimated the cost related to FRAUD is in the billions per year which in turn costs an average of $ 500 – $ 1000 per year for families and an even larger amount for business owners. Auto and Workers Compensation Insurance claims seem to be where the largest increases are currently being seen.

The California Department of Insurance has a whole division dedicated to this issue: http://www.insurance.ca.gov/0300-fraud/0100-fraud-division-overview/0300-fraud-claims-and-forms/.

Another agency who monitors and reports fraud is the National Association of Insurance Commissioners:

http://www.naic.org/documents/consumer_alert_beware_insurance_fraud.htm

Check out these websites for more information on how you can help prevent and report Fraud.

Paying your Insurance Premiums

July 21, 2015 by nanette

Hand for a handshake. The conclusion of the transaction.

Regardless the type of insurance, it is the responsibility of the insured to make the premiums payments on time. We have all heard this before and despite efforts within the insurance community, meaning agents, brokers and the insurance companies themselves, many clients still do not make this a priority in their daily lives.

We all get it; you do not even want to purchase the insurance in the first place. This is a part of our lives regardless; insurance is there to help should a catastrophic event occur that could financially ruin a business or bankrupt an individual or family. You may think it could never happen to you but it can and eventually something will happen in our lives that we never thought would or could.

With that being said, we get calls all of the time asking why an insurance policy cancelled, I never received a bill. Yes, it is the responsibility of the insurance company to send out a billing statement. In this digital age, there should be no excuse as to why someone has not received their bill. For most, but not all, there is a way to see the billing and payment activity online. For the others, the insured must be proactive and monitor their insurance premium payments carefully.

We cannot stress enough; the cost to an individual, family or business in not keeping up with their premiums payments could mean you are left on your own to pay expenses you simply cannot afford. For some insurance, it is hard or even impossible to re-write at the time you need it most.

Making your insurance premium payments on time is just good common sense. Making sure those payments are applied to your policy is even more important. Let’s face it, there are still people keying the information and the potential of errors is there. My advice is, being proactive is essential; make sure you receive your billing statement either by mail or electronically. Do not ignore the fact that a statement was not received, there may be a reason why, maybe the address is incorrect, or it is lost in the mail somewhere. Check your bank or credit card statements every week to confirm payment was taken from your account. This would be the only recourse should a policy cancel and the funds were misapplied. Keep good records of all your premium payments. Make your payments on time and use automatic payments features where applicable. Make this a priority in your weekly schedule.

Protecting your Small Business

July 16, 2015 by nanette

Most certainly small businesses are not immune from Cyber Attacks. This is a frightening thing for small business owners. It is not enough that they have to purchase all kinds of liability insurance, now comes another one to consider…Cyber Liability Insurance.

Why would you need to consider Cyber Liability Insurance?

Once a hacker has access to your customer’s information then can virtually bring your business operation to a screeching halt. This type of insurance is more affordable than you think. It will pay for things like business interruption, the cost of notifying your customers and the expense of having to hire a public relations firm. Having a good insurance company will help manage your risk and help protect you from Hackers.

Do not make the mistake and think your General Liability Policy offers you this kind of protection, in most policies they will specifically exclude any loss you incur through the internet.

Cyber liability insurance is undergoing changes to protect not only your customer data but also the economic and societal developments of cyberspace and help to prevent cyber failures. This kind of coverage is more customized than others depending on the size of the business and the customer base.

Cyber Liability should be considered for all business owners, small and large.

Not Waiting to Purchase Dental Insurance

June 9, 2015 by nanette

Clients will contact us to purchase a Dental Policy primarily because they need some major work done. Now, most of the policies out there will emphasize on prevention however, the real benefit for getting Dental Insurance is for everything else other than cleaning and x-rays. Prevention is a good thing and may help avoid some major work down the road; most of the preventive work is covered at a 100%.

When you purchase a Dental Policy you are in essence purchasing peace of mind for when you need fillings, root canals and crowns. The cost to purchase an individual policy might run you around $ 400.00 a year on average. Dental plans do have pre-exiting conditions and there are waiting periods to also consider when purchasing a plan.

Just like any insurance, this is not something you just want to purchase when you get the toothache or need a root canal. In many cases you might have to wait 6 – 12 months to use the plan for these kinds of procedures.

Understanding the different plans and benefits can be confusing. Contacting your broker is the first step to take. We can help you make the right decision which best suits your needs and budget.

Business owners do not always purchase all the insurance they need.

May 22, 2015 by nanette

We have seen this time and time again. A business owner needs just liability insurance to satisfy their landlord or property management company. To save money they turn down any Property, Employers Liability, Workers Compensation and a host of other Coverage’s just to safe some money.

Business owners would be much better off if they had the right Coverage’s to protect their business and their employees. I hate to tell you what would happen if an employee was injured on the job and the business owner does not have Workers Compensation Insurance. It would end up costing the owner thousands of dollars in penalties and additional costs for the injured employee healthcare would also be in the thousands. What we have also seen recently is when the building is damaged by fire or water and a business owner renting the location experiences property damage to their equipment or personal property, it is not covered because they only had Liability and no Property Coverage.

Most business owners who own their building also refuse to purchase Earthquake Coverage on their building. Just imagine what would happen if an Earthquake damaged your business overnight tonight. The costs to rebuild or repair after an Earthquake most likely would not be covered under a Business Owners Policy without Earthquake Coverage.

Sure, it may cost the business owner a few more dollars, but not having the right coverage’s could cost thousands. It is not worth it.

Tis the Season for Graduations and Weddings

April 14, 2015 by nanette

Decorated table with glassware and cutlery

Not many people think of purchasing insurance for a Special Event, like birthday, anniversary, baby showers, and graduation parties. If you are planning on organizing a party it would be wise to consider purchasing a Special Event Policy. Unfortunately, the unforeseen happens which could leave you in a difficult position with your guests should someone be injured or become ill.

A Special Event Policy not only provides liability protection for injuries or illness it can also help with covering non-refundable deposits, cancellation fees. These policies are very affordable. These types of policies are designed to protect the host against lawsuits related to bodily injury and property damage and can include Liquor Liability protection.

Let’s face it we live in a society where lawsuits are on the rise so it would be prudent to protect yourself from the what-if’s, unforeseen events that can happen.

Why Dental Insurance?

April 13, 2015 by nanette

Dental plans are offered as Stand-Alone plans and do not require a Medical Policy. Dental plans do not adhere to open Enrollment guidelines and are available to all ages all year long.

There are options to choose different coverage levels at any age including 65 and older. Some prices starting as low as $10 per month for preventive plans. There are other options available with the ability to waive the waiting periods for some procedures with proof of 12 months prior dental insurance.

You may be asking yourself, why should I buy Dental Insurance? Most plans provide benefits for at least 2 annual exams and discounts for fillings, root canals and other major procedures. Its buying peace of mind should you need major work.

The hard part is trying to select a plan that fits your specific needs, that’s why you want to do your research before purchasing. Waiting to purchase dental insurance when you need it most can prove to be complicated in a sense you need to pay attention to the waiting periods. Most dental plans will have 3 – 12 month waiting period for some procedures and services.

What does “MEDICAL” Coverage provide on an auto insurance policy and why get it?

April 8, 2015 by nanette

You may have seen this and think it is not needed since I already have health insurance. You could be right, but let me explain what it does provide. It may provide coverage for you the insured along with your passengers. It may provide coverage to insured drivers who like to walk, or bicycle. It may provide coverage if you as the insured are a passenger in someone else’s vehicle and are injured. If you as the insured need dental work after an accident or require extended nursing services or hospitalization or other rehabilitating services.

You may think, although you might have great health insurance you don’t need this added coverage, but having Medical coverage will help not only you as the insured it will also help your passenger’s as well.

More information on understanding your auto insurance coverage;

http://www.naic.org/documents/consumer_alert_understanding_auto.htm