Understanding the Factors Behind Rising Auto and Home Insurance Rates

In recent times, many individuals have noticed an uptick in their auto and home insurance premiums, leading them to wonder why insurance rates are on the rise. While it can be frustrating to see an increase in monthly expenses, it's crucial to understand the factors contributing to these changes. In this blog post, we'll explore the key reasons behind the rising insurance rates for both auto and home coverage.

Increasing Costs of Repairs and Replacements:

One of the primary drivers behind the surge in insurance rates is the escalating costs associated with repairing or replacing vehicles and homes. With the advancement of technology and the inclusion of sophisticated features in automobiles and houses, the expenses related to repairs and replacements have significantly risen. Insurers must adjust their rates to keep up with the growing costs of materials, labor, and specialized equipment needed for these repairs.

More Frequent and Severe Weather Events:

Climate change has led to an increase in the frequency and severity of weather-related events such as hurricanes, floods, wildfires, and storms. These catastrophic events result in a surge in insurance claims, placing a substantial financial burden on insurance companies. To compensate for the heightened risk, insurers adjust their rates to ensure they can cover the costs associated with an increased number of claims.

Technological Advances in Vehicles:

Modern vehicles are equipped with advanced safety features and technology, such as sensors, cameras, and autonomous driving capabilities. While these innovations enhance road safety, they also contribute to higher repair costs. In the event of an accident, the intricate technology embedded in today's vehicles makes repairs more complex and expensive, prompting insurers to adjust their rates accordingly.

Distracted Driving and Increased Accidents:

The prevalence of smartphones and other electronic devices has led to a rise in distracted driving incidents, resulting in an increase in accidents. More accidents mean higher claim payouts for insurers, prompting them to reassess their risk exposure and adjust premiums to maintain profitability.

Economic Factors:

Economic conditions play a significant role in insurance pricing. Factors such as inflation, changes in interest rates, and overall economic stability can impact insurers' investment returns. To offset potential losses in investments, insurance companies may adjust their rates to maintain financial viability.

Conclusion:

While rising insurance rates may be a source of concern for policyholders, it's important to recognize the complex factors influencing these changes. Understanding the reasons behind the increases can help individuals make informed decisions about their coverage and explore ways to mitigate costs, such as bundling policies or taking advantage of available discounts. Staying informed about industry trends and proactively managing risks can empower individuals to navigate the evolving landscape of auto and home insurance.

Insure Custom Equipment & Aftermarket Parts on Your Vehicles

When it comes to insuring our vehicles, we often focus on protecting the standard features and factory-installed parts. However, for car enthusiasts and owners who have invested in custom equipment and aftermarket parts, traditional insurance coverage may fall short. This is where custom equipment and aftermarket parts coverage comes into play. In this blog post, we will explore why having this coverage is essential for car owners and how it provides added peace of mind.

Protecting Your Investments:

Customizing vehicles has become increasingly popular among car enthusiasts who seek to personalize their rides. Whether it's upgrading the audio system, installing high-performance exhaust systems, or adding custom body kits, these modifications enhance both the aesthetics and performance of the vehicle. However, these aftermarket additions can be costly, and if they're not adequately protected, they could potentially be lost in the event of an accident, theft, or damage.

Coverage for Custom Equipment:

Traditional car insurance policies typically cover only the factory-installed equipment. If your car is involved in an accident or suffers damage, the insurance company will generally reimburse you for the cost of the original parts, leaving you to bear the financial burden of replacing or repairing any custom equipment. Custom equipment coverage fills this gap by providing financial protection for aftermarket parts, including modifications made to the engine, suspension, wheels, or interior of the vehicle. This coverage ensures that you can restore your vehicle to its modified state after an unfortunate incident, without shouldering the entire cost yourself.

Protection Against Theft:

Customized vehicles often become targets for theft due to their enhanced value and unique features. Unfortunately, if your car is stolen, a standard insurance policy may not fully cover the loss. While the base coverage will compensate you for the vehicle's market value, it may not account for the cost of aftermarket parts or customizations. With custom equipment coverage, you can add an extra layer of protection specifically designed to account for these modifications, ensuring that you can replace them without a significant financial setback.

Enhanced Liability Coverage:

Another advantage of custom equipment coverage is its ability to enhance your liability coverage. Suppose you're involved in an accident where the other party claims that your aftermarket modifications contributed to the collision or its severity. In that case, you may face legal claims and increased liability. Custom equipment coverage can provide additional liability protection, shielding you from potential lawsuits and costly legal expenses.

Peace of Mind:

Owning a customized vehicle is not just about the performance and style; it's also about expressing your individuality and passion for automobiles. By investing in custom equipment and aftermarket parts coverage, you can protect your investment and enjoy your vehicle with confidence. The peace of mind that comes from knowing your unique modifications are adequately insured allows you to fully embrace the joy of driving without unnecessary worry.

Conclusion:

For car enthusiasts who have customized their vehicles with aftermarket parts and custom equipment, standard car insurance coverage may not be sufficient to protect their investments. Custom equipment and aftermarket parts coverage offer specialized protection, ensuring that your modifications are financially safeguarded in the event of an accident, theft, or damage. By considering this type of coverage, you can enjoy your unique vehicle with peace of mind, knowing that your passion and investments are fully protected.

Buried Utility Lines Coverage

We are seeing more companies offer Buried Utility Lines Coverage (aka Service Line Endorsement) on Homeowners Insurance policies. We highly recommend adding this coverage to your policy as standard Home Insurance typically does not cover this type of claim.

• Buried utility lines coverage refers to protection against damage to underground pipes and wires that provide essential services to your home, such as water, gas, electricity, and sewer.

• This type of coverage usually has specific limits, which may be expressed as a dollar amount per incident or a total amount per policy term.

• Like any insurance coverage, buried utility lines coverage may have exclusions, such as pre-existing damage, intentional acts, and normal wear and tear.

• Having this coverage can be important as the costs of repairing or replacing damaged utility lines can be substantial and unexpected.

• This is very affordable coverage, typically starting at $30 - $40 per year for $10,000 in coverage.

Contributed by Gina Russo, Licensed Insurance Agent

Why Do a Home Inventory?

Hey, it’s a New Year and a good time to change those smoke detector batteries, air filters and reorganize the closets.  Right?  One other to do is a home inventory. 

Why?  Because if you have a theft, flood, or fire you will need to prove to your insurance company what you owned and what was lost.  But don’t worry.  I have a simple way to do this that won’t take a lot of time. 

If you have a smartphone this is especially easy. 

Stand in the middle of each room and take a photo in each direction.  Open the closets and take a photo.  Open the kitchen cabinets and take a photo.  If you have electronics like TVs, computers, or gaming equipment, take a photo of the serial numbers.  Then create a folder in your cloud storage on your phone, laptop or pc and save those photos.  Done!  I have coverage for my refrigerated food so I even take a photo of my fridge and freezer!   

We hope you never have to use these photos and never have a loss but there’s an old saying.  “Better to have what you need and not need it than to need it and not have it.” 

Have a great year everyone and feel free to call us for any insurance needs or questions you may have. 

Contributed by Victoria Sutherland, Licensed Insurance Agent

What is Mitigation?

Homeowners:  Do you know what mitigation is? 

Mitigation:   A noun meaning an action taken to reduce the severity, seriousness, or painfulness of something.  “the emphasis was on the identification and mitigation of pollution from the factory.”

But what does that have to do with owning a home you may be wondering.  And the explanation is in the way your homeowners insurance works.

Homeowners insurance is there to protect you financially from a “sudden and accidental” loss.  For example, a burst pipe or an electrical fire.  But it requires you, the homeowner, to take responsibility for “mitigating” the damage.  In other words, to keep the damage of the sudden and accidental circumstance from becoming worse than it needs to be.  This can be found in most policies in a section titled “Duties After Loss.”

Some of the common “duties after loss” are: 

·       Give the insurance company prompt notice

·       Protect the property from further damage

·       Cooperate with the company during the investigation

·       Keep and provide records of the personal property you own

You have all seen areal photos of towns after a hurricane.  Blue tarps on roofs everywhere.  That is because it is the homeowner’s responsibility to try to keep the damage to the roof and the inside of the home from becoming worse.  There have been situations where there was significant rain and wind after a hurricane that caused further damage to homes because the owners did not take steps to protect the parts that were not damaged by the initial storm.  The secondary damage was not covered.  And, yes, the catastrophic adjusters can tell the difference.

An example closer to home might be a pipe bursting under a kitchen sink.  That would be sudden and accidental.  But if the home’s owner did not shut off the water or call a mitigation company to dry out the house, the insurance company may not have any responsibility to do more than repair the initial damage caused by the leak.  There may be an issue with coverage if a homeowner waited days or weeks to have repairs made.  Water damage can quickly go from simple to extreme.  Mold can start growing in less than 48 hours.

It is always better to act as quickly as possible to prevent further damage than to wait for the insurance company to tell you what to do.  And document the initial damage and any steps taken to mitigate it.

Which brings us to the difference between “sudden and accidental” vs home maintenance and repair.

Let us say the water heater overflow valve explodes and soaks the drywall and floor of the water heater closet.  You, as the homeowner, would need to make sure the water is no longer flowing out of the water heater first.  Then you would need to call two types of home repair vendors.  A mitigation company to assess the water damage and a plumber to replace the water heater.  But what would a typical insurance claim cover?  In general, a water heater that leaks are not covered by home insurance (it might be covered by a home warranty.  The resulting damage to the drywall and floor would be covered along with the mitigation expenses after your deductible is met.  This is because the sudden discharge was, sudden and unexpected.  But the water heater failure is just part of owning a home and needing a new water heater.

Homeowners are responsible for maintenance of the home and mitigation of any unexpected damage.  Roof repair or replacement for wear and tear, painting and weather wear and tear maintenance.  Perhaps a plumbing inspection every year or two and repairs as needed.  These are all preventative measures and will mitigate the need for a home repair claim.

Contributed by Victoria Sutherland, Licensed Insurance Agent

Why You Should Have an Insurance Agent

Insurance is a legal contract.  Would you form a partnership for a business without consulting an attorney?  Or buy a home without an inspection?  Why would you purchase insurance without consulting an agent?

Insurance agents are educated and licensed.  They must complete continuing education including ethics training every three years.  Just so they can advise and guide consumers who are not knowledgeable about insurance.

When consumers buy insurance solely online, they often don’t understand the consequences of their answers or choices.  And many, many times they miss a check box or forget to click on the final link to finish the process.  And, going to a call center for insurance isn’t much better.  Some call centers have minimally trained agents or new agents who don’t ask all the questions they should; leaving the consumer underinsured.

Here are some examples of mistakes we have seen:

One client bought a new car.  But instead of calling us to add it to her existing account she went online and started a whole new policy.  She cost herself time, money and energy that she did not need to.  A simple phone call to her agent would have given her the following:

·       She didn’t need to pay the first month’s premium on the new car because it would have been added to her existing account and pro-rated over the remaining months.

·       She would have one policy and one payment per month instead of two.

·       She would have qualified for a multi-car discount on both car rates

·       Her coverage would have been matched with her current coverage, leaving no gaps

·       An agent would have asked specific questions to ensure she had the coverage she needs instead of a canned, menu driven coverage which may not be adequate.

Another client went online and purchased a policy for three cars in Nevada.  On the surface this seems fine.  However, one of the cars was not registered or garaged in Nevada.  It was registered and kept in Washington.  So, coverage for that vehicle may not be valid and a claim could be denied. 

Every state has its own unique rules and laws for insurance and vehicles legally must be insured in the state where they are kept and registered in that state as well. 

If you move, you have thirty days to change your insurance, drivers license and registration to the state of residence.  An exception to this is military members who can keep their state of residence the same throughout their careers regardless of where they are stationed.

Recently I spoke to a lady who went online and purchased her auto insurance but there was an error in her email address.  Consequently, she never received the initial application or other legal documents required for her signature.  The company did finally contact her by mail to let her know that her policy was in jeopardy of cancellation because they never got her response to the emails for her e-signatures.  Now, she is spending time and energy fixing a mistake that her agent could have fixed in less than a day before it became an issue.  If the mistake had even occurred at all with the diligence of an agent doing the quote with her.

The bottom line is that agents understand the process, the law and the requirements.  No computer program can replace real human interaction.  And no computer program can advise you on the best solution for your insurance needs.   So, before you fire up your computer to purchase or change your insurance, call us.  We are happy to help.

Contributed by Victoria Sutherland, Licensed Insurance Agent

Wedding Insurance

As Christmas and New Year’s Eve approaches many of you may be getting engaged and that means a wedding!  So…Why do you need wedding insurance?

              A wedding is an investment.  According to a survey done by “The Knot” last February couples spend on average $35,329.  That’s a lot of money to lose if something were to go wrong.  Additionally, there are liability risks associated with any gathering of people eating, drinking and celebrating.

What are some of the risks?

              Vendors who go out of business like Alfred Angelo did.  Many of those brides had made substantial deposits on their dresses or wedding party dresses which they did not receive.  And while insurance can’t replace the dresses it can replace the money you lost so you can buy somewhere else.

              Weather related disasters.  You’ve booked your wedding for a specific day in September in Miami and Hurricane Irma cancels everything.  Your wedding insurance reimburses you for the deposits and you can reschedule or move the wedding.

              Military deployments.  You are a couple where one or both of you are in the active or reserve military or even the National Guard.  The week before your wedding one of you is deployed.  Your wedding insurance will reimburse the deposits and you can reschedule.

              Injuries.  Your guest has a glass or two too many and sprains an ankle on the dance floor.  You can be held liable.  Your wedding insurance protects you and pays the guest.

              Alcohol related events.  Liquor liability endorsements protect you if someone causes an alcohol related accident. 

None of these things are pleasant to think about and we all want our weddings to go flawlessly but when was the last time one actually did? 

There is one thing, the elephant in the room, that will NOT be covered.

Covid-19 related illness will NOT be covered.  As a matter of fact, companies are having couples sign waivers with bullet points as follows:

COVID-19 is an illness caused by a virus (SARS-CoV-2) that can spread from person to person. The virus that causes COVID-19 is a new virus that has spread throughout the world. COVID-19 severity can range from mild to severe, and in some cases can cause death. Everyone is at risk of getting COVID-19, and older adults and people of any age who have serious underlying medical conditions may be at higher risk for severe illness.

As COVID-19 is a known infectious disease and presents circumstances that may reasonably give rise to cancellation and / or postponement of the event, I acknowledge that coverage will not be afforded in any way for such circumstances. This includes, but is not limited to:

• Illness to honorees and immediate family members

• Illness to vendors associated with the event

• Fear or risk of illness or contracting any virus or disease

• Closure of venues due to localized COVID-19 outbreaks

• Limitations on the number of people allowed to gather or other social distancing guidance

• Cancellation / Postponement of the Event due to Government shutdowns

• Loss of deposits due to transportation delays or cancellations

• Cancellations or delays of the Event due to concerns with COVID-19 outbreaks disrupting timelines

• Other impacts directly or indirectly related to COVID-19 circumstances

The lesson learned here would be, plan and quarantine before the big day. 

Family Medical Emergency IS Covered.

This actually happened to my family.  My brother in law was getting married and the day before the wedding everyone on his side of the family came down with either the flu or food poisoning including the groom.  The wedding went on but not the reception.  If they had had insurance, they could have cancelled and rescheduled because they would have been reimbursed for their deposits to all the vendors and the church.

If you need to file a claim for your family or a vendor, you will need a statement in writing from a medical professional that the illness or death was NOT caused by Covid.  They will not be required to say what the illness or cause of death was.

What’s the cost?

The cost depends on the size of your wedding and how much you have budgeted for it.  A small wedding would be as low as $325 while a very large expensive wedding might be as much as $1,400.  But, if you consider the dollar to value it’s super cheap.  $325 gets you $7,500 in basic coverage with $25,000 in property damage and $1M in liability.  That big wedding would get $175,000 in basic coverage, up to $1M in property damage and up to $2M for liability for only $1,400!  That’s less than a penny per dollar of basic coverage! 

When should you purchase it?

As soon as you start spending on your wedding.  Putting deposits down on invitations, the dress, a photographer?  Time to insure.

Can you add on or change the coverage if the wedding gets bigger or changes?

Yes, you can.  One phone call and a signature confirming the change and you’ll be all set.

Contributed by Victoria Sutherland, licensed insurance agent

Emergency Preparedness

Are you Prepared?

(Emergency Preparedness for Any Situation)

We all know or have heard we need to be prepared for extended blackouts or a day or two of staying at home after an earthquake.  And in general, most of us have a working flashlight and enough food for that situation.  But what if it’s not a day or two?  What if it’s not just a blackout or a short term problem?  What if it’s 3 days, 5 days, a week or more and there’s no natural gas, no water, no electricity?  That sounds extreme, doesn’t it?  Not really. 

In 1989 on October 17th the Loma Prieta earthquake hit the San Francisco Bay area.  And yes, things were really bad in San Francisco.  But did you know there were power outages, gas outages, water outages and road closures that extended for hundreds of miles?  People in Monterey, parts of the Central Valley and parts of northern California went without phones, water, natural gas, and electricity for days.  In some cases, for over a week.  Would you be prepared for that?

Let’s face it, we live on a volatile planet with unpredictable weather and sometimes a not so pretty geo-political situation.  So, there are several types of disasters we may need to face.  Earthquake, Tsunami, extreme weather, civil unrest.  Each situation has its unique possibilities.  But in general, we can plan for most of them.

First and foremost, do you have a plan for your family on where to meet should you be separated at the time of the situation?  Home of course but if you can’t get to your house do you have a 2nd or 3rd meeting area?  Do you have a bug-in plan?  And a bug-out plan?

Secondly, supplies.  Do you have a week of non-perishable food and water?  Do you have batteries for your flashlight and emergency radio?  For that matter do you have a radio that runs on batteries?  Information is critical when in an emergency situation.  Do you have an emergency first aid kit? If you had to leave do you have enough gas in the car or back-up supply?  Do you have a way to heat up water or cook without electricity or natural gas?  Do you have games like cards or board games to keep the kids entertained?

Last and not least does everyone in your family know what their responsibilities would be in the case of an emergency?  Have you taken a CPR class or first aid course?  Do you know how to start a fire if you need to?  Do you know where the gas shutoff is for your house?  The water shut off?  The circuit breaker box?  Is your water heater safety strapped to a wall?  Have you run an earthquake or fire drill with your family?

None of us want to think the worst could happen but sometimes it does.  And planning ahead can save lives or just make getting through it more comfortable. ​

Contributed by Victoria Sutherland, Licensed Insurance Agent

Stay at Home Auto Premium Credit

The Government shut down your business to contain a pandemic; now what?

Is there any coverage for loss of income to a business shut down by a pandemic?

The short answer, unfortunately, is typically no.

Most businesses have a Business Owner’s Policy which covers loss of income due to physical damage.  For example, a pipe bursts in the wall and floods the business.  Repairs must be made before the business can be open.  The Loss of Income coverage would pay a pro-rated amount per day until the repairs were done and business could resume.

Shutting down a business due to illness and quarantine doesn’t meet the requirement of “physical damage.” 

While there are some endorsements available for business policies it is not clear if they could be used for a pandemic situation.  The most common would be Contingent Business Interruption.  This might be used if the supplier for a business stops delivering goods or services which makes it impossible for the business to keep going. 

Some commercial property policies provide coverage for loss of business due to a “civil authority”

Restricting or prohibiting access to a business.  This would most likely be found in an “all risk” commercial policy or as part of the contingent business interruption endorsement but not necessarily.  Every company has its own language and interpretations. 

Not all insurance is the same.  The insurance industry is constantly evolving and changing.  For example, in the Republic of the Congo they now have endorsements for business insurance that cover loss of business due to outbreaks of Ebola.  But those sorts of policies have not found their way into the United States at this time.

There are pending lawsuits over loss of business due to the government’s response to the Covid-19 pandemic.  However, the outcome is far from clear and will vary widely from state to state and court to court.  It will likely be years before any clear guidance is available or the policies changed. 

There are small business loans that will be made available in the coming months for businesses impacted financially by the shutdowns.  Follow this link to access the SBA’s Economic Injury Disaster Loan Program.  https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

We recommend you put in the claim for Business Income with your insurance company and let them determine if the coverage exists. We are here if you need any assistance with setting up your claim!

Contributed by Victoria Sutherland, Licensed Insurance Agent

How to Save on Your Nevada Auto Insurance

Wow, the cost of auto insurance just keeps going up and up and up.  So, we thought we could give you some tips on how to save and some of the discounts available.

One factor most people don’t consider is their credit rating.  The better your credit the better your insurance rate will be.

Do you have your home and auto with the same company?  In many cases bundling can save you, well, a bundle.

Do you drive less than 8,000 miles per year?  Many companies offer a low mileage discount.

Do you really need a brand new car?  New cars are, in general, more expensive to insure.  As the manufactures add new features the cars are becoming more expensive to repair.  That equals higher costing insurance.  So, before you buy, call us and get the rate.

On the other hand, some companies are offering discounts for hybrid or electric cars now.

Do you have optional insurance you don’t need?  For example if you have 3 cars and 2 drivers do you need rental reimbursement?  Is your car worth more than the payoff now?  Do you need to keep the GAP coverage?  What can you afford to pay toward a repair or replacement?  Maybe you can raise your deductibles on Comprehensive and Collision.

Insurance history.  Maintaining a continuous insurance history will help keep your insurance premiums down.  Any break in continuous auto insurance will cause the rate to increase.  Sometimes it doubles!  But, what if you don’t currently have a car?  You can keep your insurance history intact by keeping non-owners insurance policy.  It’s minimal liability coverage for when you borrow a car.  This gives you a continuous insurance history.

And, of course, keep a good driving record.  No tickets or accidents!  Become a defensive driver because even accidents that aren’t your fault can affect your rate.  At the very least you’ll lose your Accident Free discount.

That brings us to discounts.

When you want to shop for new insurance start a month to 2 weeks early.  Many companies offer an Advanced Quote discount.

Consider paying in full for a Paid in Full Discount.  This can be significantly cheaper in many cases.

Are you over 55 or do you have teen drivers?  Many companies offer discounts for Driver Training for both groups.  Also, teens and college students can get good student discounts for a B or better GPA.

And of course, if you have more than one car be sure to insure them with one company/policy for the multi-car discount.

Go paperless and if you make monthly payments go automatic.  Most companies offer paperless discounts and EFT discounts.

Telematics.  Or, driving monitor systems.  Progressive’s Snapshot, Safeco’s Right Track, or Traveler’s Intellidrive.  They give you a discount up front for allowing them to monitor your driving either by a plug in device for your car or an app on your phone.  After the monitoring period they base a future discount on your driving habits.  Warning:  if you are a driver that takes off fast, brakes hard, exceeds the speed limit or drives between midnight and 4 am this is not for you.

No matter which company you are getting a quote with be sure to go over all the discounts you may qualify for and get them if you do.

We are available to quote your auto and/or home M-F, 9-5 and as a brokerage we quote more than half a dozen companies so you will be sure to get the best rate!

Contributed by Victoria Sutherland, Licensed Insurance Agent

Common Consumer Online Auto Insurance Mistakes

With the popularity of online insurance shopping more and more consumers are not talking to an agent before making life altering insurance decisions.

For example, we recently had a client go online and start a whole new policy for a car she was buying.  Why was this incorrect?  Well, she could have added the new car to her existing policy and not paid the first month payment for a new policy as well as making two payments a month instead of one.  She could have qualified for a multi-car discount and she could have matched her current coverage.  All with one phone call to her agent.

Another common error we see is when someone decides to sell their only vehicle and they cancel their insurance.  Why is this incorrect?  One of the rating factors for auto insurance is the length of time that you have had continuous coverage.  If you stop and start policies with gaps you don’t have continuous insurance history.  This will cost you real dollars.  Sometimes it can double the rate for a new policy.  And you don’t have to own a car to have auto insurance.  You can carry a “Named Non-Owned” policy which provides liability insurance for driving other people’s cars.  It’s not expensive and it preserves your insurance history for when you do buy a car.

Another example that we recently saw was when a client quoted his own insurance online but in the course of filling out the form he did not mention that two cars are kept in Nevada and another in Washington.  Car insurance is valid for your cars where they are garaged and registered.  So, if you have Nevada insurance but your car is parked and registered in Washington the insurance may not be valid.  Every state has its own unique insurance regulations and requirements.  This holds true for when you move to a new state as well.

In general you have 30 days to change your insurance to the state you’ve moved to, register your car there and get a new license.  Otherwise if you have an accident the insurance company may or may not honor the claim because you are in breach of contract.  You don’t live where the insurance is valid.  

The bottom line is that agents are trained, educated and licensed for a reason.  They know the laws and regulations and they understand the consequences of not abiding by these laws.  Agents have your best interest in mind.  Ethics is one of the major cornerstones of an insurance agent’s responsibilities.  We are all required to do Continuing Education including Ethics to maintain our licenses.

So, before you fire up your computer to get a cheap rate, call us.  We are happy to help.

Contributed by Victoria Sutherland, Licensed Insurance Agent

The Easy Way to Inventory Your Home for Insurance Claims

Most homeowners fall short when they have to put in a claim for personal property that is either damaged or stolen.  It’s understandable.  Most of us have a lot of “stuff” in our homes and its spread all over the place.  But what happens if you have a claim and all your stuff is smoke damaged, water damaged or burned up?  And, even if it’s not a major event like a fire how do you prove your ownership of the new computer in your son’s room or the sewing machine you gave your wife last week that was just stolen by a burglar while you were at the movies?

Three things to do. 

One:  Take your Smart Phone and create an album in photos for pictures of your home.  Start by standing in the center of each room and take four pictures.  One in each direction.  In the kitchen open the cabinets and drawers and take photos of the contents.  Do the same thing in bedrooms with closets and dresser drawers.  In the bathroom take a photo of what’s in the medicine cabinet, in the drawers and under the sink.

Two:  As you buy new large or expensive items take a photo of the item and the receipt. 

Three:  Set a calendar reminder to take new pictures once a year. 

We recommend you save these pictures to cloud type storage as well. If your cell phone is lost, damaged or stolen, you have not also lost these valuable pictures.

This is simple, not too time consuming and it will save you so many headaches if you ever need to file a claim.

Contributed by Victoria Sutherland, Licensed Insurance Agent

EARTHQUAKE INSURANCE

This is a direct quote from the USGS.Gov website about the Ridgecrest events.

“Aftershock Forecast

According to the current forecast, over the next one week, beginning on July 6, 2019 at 2:20 p.m. Pacific Time (5:20 p.m. ET), there is a 2% chance of one or more aftershocks that are larger than magnitude 7.1. It is likely that there will be smaller earthquakes over the next one week, with 220 to 330 magnitude 3 or higher aftershocks. Magnitude 3 and above are large enough to be felt near the epicenter. The number of aftershocks will drop off over time, but a large aftershock can increase the numbers again, temporarily.

No one can predict the exact time or place of any earthquake, including aftershocks. The USGS earthquake forecasts provide an understanding of the chances of having more earthquakes within a given time period in the affected area. The USGS calculates this earthquake forecast using a statistical analysis based on past earthquakes.”

Unfortunately, trying to get Earthquake Insurance after a major event is virtually impossible since most if not all insurance companies offering it will impose a moratorium until the danger has subsided.  That’s understandable from a business perspective.  How do you know if the damage occurred before or after the new policy was bound?  The risk for further claims is currently higher etc. But, if you are in an area that could suffer a severe earthquake and companies are still offering coverage here is what it could cover.

Reasonable costs that you may sustain from the loss of your residence due to earth movement. There are three major components to this coverage.

1.     Your home (called a dwelling in most policies) and its structure.

2.    Your personal property, like dishes, electronics, furniture, clothing etc.

3.    Loss of use or additional living expense should you have to live somewhere else while the home is repaired.

Structural damage would be cracks in the walls, ceiling, foundation etc. 

Damage to personal property would be those things broken or damaged during the quake due to falling and breaking or something falling on it and breaking it.  As an example, your ceiling beam falls during the quake and hits your TV.  Or your china falls out of the cupboard during the quake.

Loss of use would be the expense of staying in a hotel or temporary housing until the home was deemed safe to live in again.

All of these coverages have a high deductible and, in general, a low amount of coverage.  For example a policy might cover up to $100,000 of structural damage with a 15% (or $15,000) deductible.  These policies can be quite pricey too.  But since, with rare exception, your home owner’s policy does not cover earthquake damage, it may be worth purchasing if you feel you live in a vulnerable, earthquake prone, area.

Here is a link to the USGS.GOV US map of the areas of risk.  https://www.usgs.gov/media/images/usgs-map2

You might notice that Las Vegas and Reno are located in the highest risk defined areas.

If you are interested in a quote for Earthquake Insurance or have questions about this subject or what your home owners policy would cover please give us a call at 702-562-2886.

Contributed by Victoria Sutherland, Licensed Insurance Agent

The Importance of Renters Insurance

The Importance of Renters Insurance

Your apartment complex or landlord requires it so you get the cheapest policy possible.  But do you really understand why you should have it?  Renters Insurance isn’t just to protect the landlord; it’s there to protect you!

A typical renter’s policy includes:

1.        Liability

2.       Personal Property

3.       Loss of Use

4.       Medical Payments to Others

5.       Deductible

Let’s look at these one at a time.

1. Liability coverage protects the landlord from a loss that you may cause.  But that’s only if you have enough coverage to cover the loss.  Otherwise, it pays up to the limit of the policy but then they can sue you for the balance.  So, in reality, liability is there to protect you from something you may do that causes a large loss.

For example, one of our recent claims was a tenant who fell asleep while a candle was burning.  The house caught on fire and caused substantial damage.  The tenant escaped thankfully but could potentially be liable for the cost to rebuild that house.  A liability limit of $100,000 (the typical limit on a renter’s policy) won’t be nearly enough.  That’s why we always encourage our renters to have at least $300,000 or $500,000 in coverage.  Most apartment complexes accept $100,000 and hopefully any damage would be less than that should the worst happen. 

Liability also protects you if an invited guest is injured in your home and you are found responsible.  This can include animal bites. 

2. Personal Property coverage is to replace your property if there is a sudden or accidental loss of what you own. Fire, water, burglary or theft for example. 

There are two types of personal property coverage to consider.  Actual cost value and full replacement value.  Actual takes the age of your possession and pro-rates the payout based on what it cost brand new and subtracts value based on the age (depreciation.)  Full replacement value gives you the full cost of what it will take to buy the same or similar item now.  For example, a new mattress costs $3,000 and has a life expectancy of 8 years.  There is a leak from your washing machine that floods your apartment ruining your 5 year old mattress.  If you have actual value coverage you will get $3,000 minus 5 years depreciation or $1,875 (for example).   Your claim pays $1,125 for your $3,000 mattress.  If you have full replacement you would get the full $3,000 or possibly more if that mattress costs more now to buy. 

3. Loss of Use pays for a place to live if your current place is unlivable due to a claim.  For example, if the flood in the example used above made your home uninhabitable the insurance company would pay for another place for you to live up to the limit of your policy.

4.  Medical Payments to Others coverage is a no fault coverage for medical expenses resulting from an injury within your premises.  Again, that pesky flooded apartment caused your girlfriend who is visiting your place to slip and fall, breaking her pinky finger and you had to go to the urgent care to have it splinted.  It costs you $1,000.  Your Medical Payments coverage would help pay for this.

5.  Your Deductible.  The deductible is the amount you are responsible for before the company begins to pay.  This can range from $100 up to $5,000 or more.  It’s your choice.  The higher the deductible the lower the premium.   

Of course, everyone’s situation is different and each of these coverages must be considered separately by the situation you are living in.  Even within the examples I’ve used above there are variations on how and what would be covered.  Remember, we are always here to answer your questions and I hope this makes Renter’s Insurance more understandable. 

 Contributed by Victoria Sutherland, Licensed Insurance Agent