Category: Insurance

Motorcycle owners may be a risky bunch by nature, but when it comes to motorcycle insurance, it is not a good idea to indulge that tendency. If you own a motorcycle, you need to have sufficient insurance coverage in place. Fortunately, there are some proven strategies motorcycle owners can use to trim their insurance costs, without sacrificing the coverage they need.

Ride Carefully – Keep Your Driving Record Clean

Perhaps the most effective thing you can do to keep your motorcycle insurance rates low is to be a careful and proactive rider. Keeping your driving record clean can significantly lower your insurance rates, so be sure to take safety into account each and every time you ride.

If you are a new rider, consider enrolling in a safe biking course. You can often find these courses at your local community college. Many insurance companies provide discounts for riders who successfully complete a safety course, so it may be worth your time and effort.

Choose Your Motorcycle Carefully

Some motorcycles seem to be irresistible to thieves and if you own one of these models you may end up paying the price. Before you shop for your bike, be sure to check theft records. Don’t forget – you can also contact us for a rate quote before buying your motorcycle.

Install an Anti-Theft Device on Your Motorcycle

Installing an anti-theft device can also reduce your premiums. Alarms make it that much harder for thieves to make off with your bike. Not only do they protect your motorcycle from theft, but they can lower your insurance costs at the same time.

Ask About Discounts

By having your homeowner’s, auto and motorcycle insurance with the same company, you may be eligible for a multi-policy discount. Be sure to ask your agent about any discounts that may be available.

In addition to multi-policy discounts, many insurance companies offer additional discounts for everything from a college degree to a safe driving record. Just like with your car, you may be eligible for additional discounts if you keep your motorcycle in a garage where it is safe from thieves and from the forces of nature.

Raise Your Deductible

Another excellent way to lower your monthly motorcycle insurance premiums is to raise your deducible. Deductibles and premiums move in opposite directions, so the higher your deductible, the lower your monthly premium. You can make this work for you by funneling the difference into a separate savings account that you can use to cover unexpected expenses in the event of an accident.

Despite the slump in the real estate market in recent years, many people find condominiums an attractive alternative to owning a separate dwelling. Typically, the condominium association is responsible for much or all of the building’s maintenance. The selling price may be more affordable than free-standing homes in the same neighborhood. The structure may be younger and in better condition than separate dwellings in the same price range. For these reasons, owning a condo makes sense for many. Those who choose condos over separate dwellings, however, need to understand the proper way to insure their investments. While similar in many ways to homeowner’s insurance policies, condominium unit owner policies have some significant differences.

The most obvious difference is the subject of the insurance. A homeowner’s policy insures against damage to a house and other structures on the property, such as an unattached garage or a fence. A condominium policy insures against damage to the condo unit, including alterations, appliances, fixtures, and improvements in it and parts of the real property that the condominium agreement makes the responsibility of the unit owner. Therefore, the subject of the coverage is much more limited in a condo unit owner’s policy.

Unlike a homeowner’s policy, a condo policy does not cover structures that the owner rents or holds for rent to a person who is not a tenant of the building. However, there is coverage if the rented structure is a private garage. The policy also does not cover structures from which anyone conducts a business or which store some types of business property.

Another difference has to do with trees. A homeowner’s policy provides a small amount of coverage for removing a downed tree that has damaged an insured structure or that is blocking a driveway or ramp for a handicapped person. The condo policy covers removal of an owned tree only if the insured person is the sole owner of it; if all the unit owners in the building share ownership of the tree, the policy does not provide coverage. Also, it does not cover a tree that has not damaged the structure and is blocking a ramp or driveway.

An important difference is in the range of perils the policy covers. A homeowner’s policy provides “special” causes of loss coverage on the dwelling, meaning that it covers all perils other than those the policy specifically lists as not covered. In contrast, the condo unit owner’s policy covers the unit only for those perils that the policy lists as covered. It is possible that a loss covered by a homeowner’s policy would not be covered by a condo unit owner’s policy.

If the building in which the condominium unit is located becomes vacant for more than 60 days, the policy ceases to provide some coverages. For example, it will not cover losses caused by vandalism or malicious mischief, accidental discharge or overflow of water or steam, or glass breakage that occur after 60 days of vacancy.

If the unit owner’s personal property such as household appliances is damaged, the insurance company will pay the difference between the cost to replace it and the amount by which it has depreciated. Property that is part of the building, such as carpeting, awnings, and outdoor equipment, are covered for their replacement cost without depreciation. However, the owner must repair or replace the damaged items within a reasonable amount of time; otherwise, the company will deduct an amount for depreciation.

Coverage for additional perils and for replacement cost on personal property may be available for an additional premium. A professional insurance agent can help identify companies that provide the needed coverage at a reasonable cost. With the right combination of coverage and price, the new owner can enjoy her condo unit in financial security.

You’re having a new pool installed in your backyard, and you can’t wait to dive into a summer of swimming fun.  Of course, you may be so busy buying water wings, noodles and floats that you forgot to take care of one very important detail: your insurance. Now is the time to take a close look at your homeowner’s policy to see if you have sufficient coverage for your new pool.

Your first step should be to give your insurance agent a call right away and let them know you have a new pool. If you neglect to inform them of this important fact, it could cause problems down the road if someone is injured in your pool.

Here are a few insurance facts to keep in mind as you get ready for your pool opening:

Your pool is separate from your home

Homeowner’s insurance generally provides coverage for damages to your home and “other structures” on the premises. As far as your insurance company is concerned, your pool is considered a separate entity from your house—which means it is covered under the “other structures” portion of your policy, along with detached garages, sheds and gazebos.

With most homeowner’s policies, the maximum amount of insurance coverage for these other structures is 10 percent the amount of coverage on your home. In other words, if your insurance policy covers $100,000 on your home, the coverage you would receive for your pool and other structures would be $10,000 combined.

If you spent wads of money on a fancy new pool, $10,000 may not be enough to cover serious damages to it. Plus, if you have a shed and a detached garage in addition to a new pool, keep in mind that this amount will have to cover damages to all three structures. You may decide that you need to purchase additional insurance.

The type of pool damages your insurance will cover varies depending on your specific policy. Be sure to read the fine print and figure out exactly what your policy covers. Most policies do not cover damage caused by freezing, thawing, pressure or weight of ice water. Therefore, if you live in a particularly cold area, be sure to properly protect and “winterize” your pool before the colder months hit.

Protect yourself against pool liability issues

Insurance can also protect you against liability issues related to your pool. Obviously, there are serious dangers associated with pools, including injuries and drowning. As a matter of fact, about 45,000 swimmers are injured and 300 people drown in backyard swimming pools every year.

Although the liability portion of your homeowner’s policy will protect your assets if someone sues you, it may not be enough. Most homeowner’s policies pay up to $100,000 in coverage each time a person makes a legitimate civil claim against you for an injury that occurred on your property. When you install in a pool, you are increasing the chances that someone could be seriously injured or even killed on your property—and $100,000 may not be enough such a tragedy.

Therefore, you should consider purchasing additional liability coverage after you install your new pool. First of all, find out if you can purchase higher liability coverage limits on your existing homeowner’s policy. You may be able to increase your coverage from $100,000 to as much as $300,000 for a minimal premium.

However, this still may not be enough for a pool owner. You should also consider purchasing what’s known as a personal umbrella policy. This type of policy offers a higher level of liability coverage and ensures that you and your family will be protected if someone sues you for damages. Umbrella policies typically pay up to a predetermined limit, which is usually $1 million, for liability claims made against you and your family.

Call your insurance agent and discuss how you can protect yourself from liability issues relating to your pool.

Follow pool safety rules

Another way you can protect yourself from liability issues is to create a safe swimming area and make sure everyone who takes a dip follows your pool rules. Here are a few safety tips to keep in mind:

• Do not install a pool diving board or slide. (Many insurers will not even cover pools with these items because they are far too risky.)
• Install a secure fence around the pool.
• Never leave small children unsupervised near the pool, even for a few seconds.
• Do not allow anyone who cannot swim into your pool.
• Keep children away from pool filters. The suction from these filters can cause injuries or trap them at the bottom of the pool.
• Do not swim alone or allow others to swim alone.
• Do not allow people who are under the influence of drugs or alcohol to swim in the pool.
• Check the pool regularly for glass, bottle caps and other hazards.

Keep a secure cover on the pool during the off-season.

If you own a condominium, you may think you don’t need insurance protection. Think again. Although your condominium association offers a “master” insurance policy that covers the building and commonly owned property, this insurance probably does not protect your upgrades, furnishings and other belongings.

That means if a burglar breaks into your condo, a fire causes smoke damage to interior walls of your unit or a visitor falls and hurts himself inside your home, you will not be covered by your condominium’s general insurance policy. This is exactly why you need your own condo owner’s policy. This personal coverage could protect you in the event of theft, damage and personal liability situations.

Every condo is different

Before you purchase condo insurance, you should find out exactly what is covered by your condominium association’s master policy. Generally, these policies cover only the structure of the building, but it varies depending on your state and particular condominium. It’s important to do your homework and find out exactly what is and is not covered so you can make sure your personal policy covers the rest.

What kind of coverage do you need?

The type of coverage you need greatly depends on your unique situation. However, you’ll definitely want to protect yourself against theft, damage and personal liability incidents. Depending on where you live, you may also need flood insurance or other special coverage.

A professional insurance agent can help you figure out exactly what kind of coverage you need. You may want to ask yourself the following questions as you decide on the details of your insurance policy:

• What parts of the condo am I responsible for according to my condo association’s bylaws?
• How much would it cost to replace or repair my condo?
• How much are all of my personal items worth?
• Do I have especially valuable items in my condo, such as jewelry, antiques, fine art or collectibles?
• Do I run a business out of my home or often work from home?

You should also think about liability coverage. Unfortunately, we live in a lawsuit-happy society today. So, if a visitor falls down your stairs and breaks his leg or slips on some water in the kitchen and throws out her back, they may ask you to pay for medical expenses, lawsuit costs and other compensation awards. That’s why it’s so important to make sure your insurance policy includes liability protection.

Don’t skimp

Whatever you do, don’t assume that your condo association has you covered. This assumption could cost you thousands of dollars in the long run. Do some research and find out exactly what kind of protection your association’s insurance policy provides. You’ll probably discover that it’s not nearly enough to protect your personal property and belongings.

An expert insurance agent can help you determine exactly what kind of coverage you need. She may be able to offer you special discounts if your condo has smoke detectors and central station burglar and fire alarms. You could also save by purchasing a home and auto insurance package through the same insurer.

You have just emerged from a car accident, but the good news is that you are not at fault. Now comes the task of successfully dealing with the other driver’s insurance company. In order to begin, you must collect certain details at the site of the accident from the at-fault driver: their name, address and phone number, the name of their insurance company, their policy number, their claims number and their insurance company’s address. With this information you can begin the process by making a phone call to the company in question.

Now, it is the responsibility of the at-fault driver to tell their insurance company about the accident; unsurprisingly, many of them are reluctant to do so. Therefore, it is a good idea for you to make the call in case they do not. During the call, tell the insurance company that you were involved in an accident with one of their policyholders and also inform them of any property damage or personal injuries, if any. At this stage, it is only necessary to report the simple facts of the accident without telling them who was at fault. Your opinion is not necessary in order for the police to determine who was at fault, and for the insurance company to follow the police’s recommendation.

When you are involved in an accident, and you believe that you are not at fault, it is best to contact your own insurance company anyway. This is important because it establishes your own good faith. It is especially important if the other party or their insurer denies that they are responsible for the accident, because this can help you. The insurance company of the at-fault party is completely responsible for reimbursing you for any damages to either your person or your property. Nevertheless, there are certain strictures that must be followed in all situations.

The most important rule is never take the law into your own hands, under any circumstances. After you have informed both your insurer and the other party’s insurer, ask for an authorization for car repairs from the at-fault driver’s company. You will be asked to get an estimate of the necessary work from a local garage that you may choose. The majority of states only allow insurance companies to recommend garages and not only declare their services valid at one of their choice. Make the estimate known to the insurer as soon as possible.

Typically, this is an uneventful process, but sometimes the at-fault driver’s insurer can inform you to seek payment from your own insurer due to lack of evidence. Therefore, obtain the police report as soon as possible and notify your insurer at once. The report will clearly spell out who is at fault for the accident; taking a copy to the at-fault driver’s insurance company will probably clear up any remaining misunderstandings. As a matter of fact in most states it is against the law for the insurer to deny a claim when the liability is “reasonably clear.”

According to an August 2006 article published on SmartMoney.com, the Federal Emergency Management Agency reported that only 40 percent of all residents in the flooded areas hit by Hurricane Katrina were covered by flood insurance. The majority of those insured were required to have the coverage in order to obtain a mortgage.

The other 60 percent who didn’t have flood insurance fall into two main categories: renters and homeowners without a mortgage.

The uninsured group faced a serious problem. Standard homeowner and renter’s policies cover damage from wind or rain. These policies, however, don’t cover damage as a result of flooding. These individuals’ only recourse was to rely on federal disaster aid.

Flood insurance is available through the National Flood Insurance Program to any property owner living in an area with an established flood plan. This is used to gauge the community’s vulnerability by creating an area flood map. Flood plans also help lessen some of the risk by establishing certain zoning and building policies, which include types of allowed construction, elevation at which building is allowed, permissible building materials, and construction reinforcement techniques.

The National Flood Insurance Program offers three different types of policies:

·   The Dwelling Form – this insures one to four family residential structures and/or contents. This form can also be used to insure residential condominium units.

·   The General Property Form – this insures residential buildings housing more than four families as well as non-residential and commercial buildings.

·   The Residential Condominium Building Association Policy Form – this insures associations operating under the condominium form of ownership.

There is also a Preferred Risk Policy designed for residential and non-residential properties in low-to-moderate risk areas. The policy can be written with one of several combinations of building and contents protections:

·   Renters pay $39 per year for $8,000 of contents coverage.

·   Business owners can buy $50,000 of building and contents coverage for $550 per year per building.

·   Business owners who lease their space can purchase $50,000 of contents coverage for $145 per year.

Finally, keep in mind that flood insurance is easy to obtain. While the federal government may administer the program, it is sold through regular insurance companies. To find out more about flood insurance, call us today or log on to www.floodsmart.gov.