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Do You Need Earthquake Insurance?

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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

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Common Gaps 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.
 

Paying your Insurance Premiums

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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.

Not Waiting to Purchase Dental Insurance

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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.

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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

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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?

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Female patient in dentist office, answering doctor questionsDental 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?

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Business conceptYou 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

Did you know?

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personal-propertyMost customers who purchase insurance do not read their policies, not that we could blame them. Even for seasoned insurance agents, the policy contract can be complicated. However, there are coverages in a policy which require special attention. One of those would be your personal property coverage.

Personal property is handled differently than your valuables such as jewelry, artwork, and other high valued items. Personal property is defined as possessions you own other than real estate or buildings. It is movable and includes tangible (movable) items like, appliances, furniture, jewelry, electronics, clothing, etc. Not all of your personal property is covered and there are limits to how much your policy will cover. This is one of the coverages most customers do not pay attention to until they need to file a claim where they are surprised to discover they did not have enough coverage. They expected their agent to know what they needed. Please do not make this mistake, Agents only know what you tell them.

To get the coverage you need to protect your valuables, take a good look at your current homeowners, renters or condominium policy, chances are you might need to add what we call “scheduled items” to your policy. You may also want to consider purchasing a “Personal Articles” policy for high-valued items.

Does My Private Business Need Directors and Officers Insurance?

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Many business owners, presidents, CEO’s and COO’s believe their General Liability insurance will cover them.  The General Liability will not cover all of the legal matters brought against a privately held company.   Some belief that if a corporation dissolves they are no longer liable and this is not that case; the Directors and Officers personal assets could be at risk.

This is where having a Directors and Officers Insurance Policy is vital to protect both the individual and the company which offers tremendous value at a reasonable cost.

If you own a private company, you have worked very hard to build your business and secure your family’s future.  It has been reported that the cost of defending litigation can range from $100,000 to $2,000,000; not many businesses can afford that kind of expense.

Some of the common allegations include: 

  • Failure to perform appropriate due diligence when making an acquisition
  • Misrepresentations or errors regarding the financial health of the organization to a customer or bank
  • Misstatements regarding potential future performance of the company to investors
  • Careless management strategy that causes bankruptcy
  • Breach of duties under applicable security or other statutory laws
  • Conflicts of interest when considering personal motives vs. the interest of the shareholders

Examples:

The estate of a recently passed director sued the other directors for recent company poor performance; the claim settled for $ 750,000.

A company recruited a top sales person from a competitor, who had an employment contract, and the competitor sued for damages after losing its top producer; costs were $ 250,000 and case was settled for $ 560,000

Why purchase a Directors and Office Liability Policy:

Since a director or officer can sometimes be held responsible for acts of the company, most directors and offers want to be covered rather than risk their personal assets.

When a company has a claim the expenses can mount very quickly.  Frivolous suites can be very expensive as well.  The cost of insurance to protect private a company against a Director or Officer is relatively low.

What does a D&O policy cover?  (Defense expenses and financial damages or settlements)

Criminal

Administrative

Civil

Regulatory

Errors

Omissions

Misstatements

Neglect

Breach of duty

What does a D&O policy NOT cover?

Wages

Fines

Taxes

Penalties

Multiplied damages

What are the coverage limits available?

From $ 500,000 to $ 1,000,000 per claim and annual total limit, with a $ 5,000 deductible per claim.

A Directors & Officers Liability Insurance can usually include Employment Practices Liability and sometimes Fiduciary Liability.   Do not confuse this with Errors and Omissions Liability.  The two are not synonymous.  Generally is it a good idea to carry both Directors and Officers Liability Insurance and Errors and Omissions Liability Insurance.

Employment practices suites constitute the single largest area of claim activity under D&O policies.  Over 50% of D&O claims are employment practices claims.

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