Those are just a few simple tips. We here at Fey Insurancehope you have a wonderful Holiday and Merry Christmas
There is constant talk today about cutting costs. Here are two options that might help you save a few dollars on your insurance in this rough economy.
1)Raise your deductibles:
A typical homeowner policy has a deductible of $500 and a typical auto insurance policy has $100 for comprehensive and $250 for collision deductibles. One way to help save a few dollars on your annual insurance bill is to increase your homeowner deductible to $1000 and your comprehensive and collision deductibles on your auto to $500 each. Note that when you do this you bring a little bit of the financial risk back on yourself. A good rule of thumb to help figure out if the deductible change is worth the risk is to take the savings you will get for increasing your deductible and multiply it by three. If that number is larger than the difference between your old deductible and your new deductible in my opinion you are taking on an appropriate amount of risk for the savings.
2) Drop physical damage on your old vehicles.
If a car is 10 years or older it is probably worth researching whether you should have comprehensive and collision coverage on your car (many people know this as “full coverage”). Two ways to help you decide if dropping comprehensive and or collision from your car is worth it are:
1. The Insurance Information Institute says that if your car is worth less than 10 times the amount you pay annually for comprehensive and collision coverage it isn’t worth keeping the coverage.
2. Another way to analyze if it is worth keeping the coverage is to take the premium you pay for collision and add it to your deductible amount. That is the total amount that it costs you to insure your car. (i.e. Your annual collision premium is $250 and your collision deductible is $500. If you total your car you will have paid $750 ($250 in premium and $500 in deductible) before you received any money from your insurance company) If in your mind it isn’t worth spending that kind of money to save your vehicle if it was totaled than you might want to consider dropping that coverage.
The endorsement is separated into three distinct parts: section A, B and C, which typically allows the policyholder to purchase one or all of these valuable coverages.
SECTION A applies to loss to the undamaged portion of the building. This endorsement covers the loss of value of the undamaged portion of a building caused by enforcement of ordinance or laws.
If a government agency requires the demolition of your entire building because the damage exceeds a certain percentage as detailed in their ordinances, this coverage would apply.
Without this endorsement, you would have no coverage for the part of the building that was not damaged because that part of the building had not suffered “direct damage.”
SECTION B of this endorsement covers the cost of demolition of the undamaged portion of the building. Without this coverage, you could be on the hook for tens of thousands of dollars in demolition and disposal costs.
SECTION C provides payment for the increased cost of construction if the code enforcement requires improvements to construction that were not in the original building. This coverage will pay these increased costs whether constructions is at the same location or another location, with some restrictions.
The building ordinance endorsement requires that you purchase coverage equal to 80 percent of the property’s replacement cost value. This is an optional coverage. For more detail please call your friendly Fey Insurance Services representative.
We mention this in our blog post today because speeding tickets can often have an adverse affect on your auto insurance premium. Companies can charge surcharges for speeding violations. Some companies can even cancel your insurance if you have too many speeding violations.
So, now more than ever it is important to be mindful of your speed as you drive. All a police officer has to do is feel that you are speeding and you can be pulled over and handed a ticket and fine.
-Cincinnati Ins. Co (Kevin Oleckniche)
Losses that occur on property you own can affect your livelihood and that of your tenants. They also can affect your insurance rates and eligibility. Without the proper controls in place, you could be saddled with the responsibility of owing for injury or damages that you did not cause.
RECOGNIZE THE RISKS
When you understand the risks you face as a property owner and lessor, you can better manage them. Consider these scenarios:
Natural perils – A tornado sweeps through town, damaging your building and your tenants’ contents.
Fire – A grease fire starts in a restaurant at one end of your building. Before it is extinguished, fire damages multiple units and tenant contents.
Third-party injury or illness – A patron slips and falls in the parking lot, spraining her ankle.
Change in occupancy – A restaurant replaces a retail store in one of your units. As a property owner, you want to determine if the current sprinkler system is able to handle the demands of a restaurant.
Change in tenant operations – A retail craft store expands its operations to include pottery making. With this expansion, your tenant adds kilns to heat-treat ceramic projects.
Vacancy – Your unoccupied building is vandalized, resulting in damaged property.
REVIEW THE RESPONSIBILITIES
A well-designed lease agreement can assist owners in transferring responsibility for payment due to bodily injury or property damage to the legally responsible party. Consult with legal counsel when evaluating your current lease or other formal contract. When consulting with your attorney, consider whether your agreement:
-is signed by all tenants
-contains appropriate anti-subrogation wording and indemnification–hold harmless provisions favorable to you and acceptable under your state’s laws
-authorizes you to develop, change and enforce rules and regulations for the premises
-defines which areas you control and which the tenant controls
-defines the maintenance obligations of all parties while specifying the scope of the operations and the steps you will take if the tenant defaults on these obligations
-grants you the right to inspect the leased premises for conformance with the lease provisions concerning maintenance and to point out to the tenant any obvious hazards
-requires the tenant to obtain permission before performing any building alterations
-contains provisions regarding use of hazardous substances, dispensing of liquor and other activities that increase the risk of loss
-requires service contractors who come on your premises to provide certificates of insurance verifying adequate limits of insurance and appropriate state licenses, where applicable
-requires tenants to obtain specified liability insurance on behalf of the owner, with you listed as an additional insured on a primary basis. Make sure you obtain proof that the tenant has acquired and maintains all required insurance.
Consult with legal counsel to familiarize yourself with state laws before you lease space to bars, restaurants or stores that sell liquor.
While it is your duty to live up to your obligations as a property owner, it is also wise to make your tenants take responsibility for their actions and premises upkeep.
Your local independent insurance agent is there to help you maneuver around the challenges you face as a property owner. Contact your agent whenever a new tenant moves into the building, a current tenant changes its operations or part of the building becomes vacant for 30 days.
A homeowner policy is made up of two sections, Section 1 Property and Section 2 Liability. This blog post will focus on Section 1 which outlines the four property coverages provided by a homeowner policy. Those four coverages are as follows:
When a covered insurance claim happens the insured, in many cases, will be responsible for the first few dollars of most losses. The amount they are responsible for is called the deductible. More often than not, deductibles are only associated with property damage of the insured’s own possessions whether that is a vehicle that was damaged or damage to their contents, their buildings or even their loss of income. On some occasions you may see deductibles on liability claims but not in many.
Deductibles can come in many different forms on insurance policies. You can have a given dollar amount, say $500. Often times you see this type of deductible on home insurance or business property insurance. Some deductibles might be a percent of the loss like 1% or 10%. Sometimes you will see this type of deductible on a home or business but many times it will be associated specifically with earthquake coverage. Deductibles can be vanishing deductibles. As the insured racks up years of no losses, their deductible gradually drops each year until eventual it is $0.
In most cases the deductible is per claim. This means that each time you have a claim you pay a deductible. It isn’t like your typical health insurance policy where you have an out of pocket deductible for the year and once you meet that limit you are done with the deductible. In property and casualty, if you have a $500 flat per claim deductible you will pay $500 each time you have a claim no matter how many you have in a given year.
Deductibles can be a helpful cost savings tool. They can be raised to help drop premiums but the insured needs to understand that by raising deductibles they have taken on a bit more of the burden of possible claims.
It is important for insureds to understand what their deductible is so that they can be prepared to financially meet its requirement if a claim were to happen. I mention this more in connection with a percentage deductible. The insured should know if the percent is on the cost of the claim or on the coverage limit. For example, if a person had a $200,000 house and an insurance policy with a 5% deductible (on the coverage limit) it would be best to know that you have a $10,000 deductible before you have a claim. Someone that doesn’t know their policy might think that it is 5% per the cost of the claim.
Deductibles are just one of many facets to an insurance policy. Be sure to familiarize yourself with your policy and policy coverages and consult your independent insurance when ever you have any questions.
At Fey Insurance we know you want to protect what’s important. That’s why we’re offering these tips to help you prevent many of the most common causes of water damage.
Just a little time and some effort can prevent a lot of heartache and hassle.
In 2007, the last year with full statistics, there were an estimated 2.2 million burglaries, according to the Federal Bureau of Investigation. Burglaries represent more than 22 percent of property crimes committed in 2007, and of these burglaries, 61 percent involved forcible entry. Burglary offenses represented $4.3 billion in losses, an average of nearly $2,000 per burglary, and nearly 68 percent of burglaries were residential.
Surprising to many is that nearly 64 percent of burglaries occurred during the daytime. Below are some suggestions that should help you from becoming a statistic:
– Keep exterior views of your home unobstructed and trim landscaping back to expose windows and doors. This requires a burglar to work in full view and poses a serious risk of detection.
-Maintain adequate exterior lighting at access points to your home.
-Put your ladder away. Do not provide easy access for the burglar to gain entrance.
-Do not keep valuables, such as bicycles and tools, in the open.
-Keep your garage door closed and locked. An open garage door allows a crook to see valuables stored in your garage.
-Make sure your house number is prominently displayed and illuminated to help emergency responders find your home quickly.
-Do not leave notes on your door that might indicate your home is unoccupied.