Category: Personal Lines Insurance

When Insurance Should Respond.

There is so much emphasis now on “cheaper insurance.” Except for the fact that our government or you lenders require insurance for certain things — driving a car, buying a house, etc. The main reason a person transfers their risk is for when they have a claim. If the “cheaper” insurance isn’t there for you when you’re in a wreck or your home burns down, no matter how inexpensive the policy — it wasn’t worth it.

As I’ve said many times I’m a huge advocate of independent agents who help you understand what you are buying, steer you away from Shifting Sands Mutual, and help you when tragedy does occur. Reporting a claim over the phone to Bangledesh is just not the same as the agent who meets you at your house after a fire or visits your family after your death.

There was a time when insurance companies were investing your premiums with double digit returns that made cutting costs in claims not an issue, but now I am seeing insurance companies making it more and more difficult for a policyholder to get paid when a policy should trigger. Take a minute as the end of the year comes and renewal notices start to arrive, to talk to an independent agent about whether you are merely buying a piece of paper that disappears just like your belongings when a fire occurs.

Nov 08, 2011 | 0 comments View Post

Earthquake Insurance

If you’re on the East Coast today, earthquake insurance probably moved up higher on top of your subjects to discuss with your independent agent. Yesterday’s earthquake centered in Virginia was a wake up call. How many business and individuals have earthquake insurance policies do you think that live along the Eastern seaboard?

The East Coast is generally not afflicted by earthquakes. Hurricanes and blizzards are more on our mind when it comes to disasters. But, the 5.9-magnitude quake was felt in the Carolinas, Virginia and several other Eastern states, including New York. I definitly felt it, and thought the building was falling apart.

Many homeowners may be curious as to whether earthquake damages are included in your home insurance policy. Don’t bet on it. In New York, where tremors were felt, earthquake insurance is specifically excluded from standard homeowners’ policies. This is usually true even in states more commonly hit by earthquakes. Each state is different so contact your agent immediately. This is another reason to have that free cup of coffee with your agent I advocate.

In California, homeowners aren’t necessarily mandated to have earthquake insurance. However, residential property insurance providers are required under law to offer earthquake coverage to interested homeowners. This is not the case in most states.

Most homeowners don’t buy earthquake insurance policies. In 2007 New Yorkers only spent $15 million out of around $3.9 billion in insurance premiums for earthquake insurance, according to the New York State Insurance Department.

The cost-benefit analysis is quite common among homeowners. Many likely concluded that earthquake insurance on the East Coast was frivolous. After all, there is little history of big quakes hitting states like Virginia. But, this recent earthquake helps reminds us that natural disasters can strike most anywhere.

Again isn’t time to quit waiting to call your agent and shake his tree, before something else shakes yours?

Aug 24, 2011 | 0 comments View Post

A Two Hundred Dollar Cup of Coffee.

By Webb Hubbell

I received in the mail today an opportunity to attend a $200 dollar seminar by way of sitting in on a conference call where “experts” talk to me about the needs of non-profits to have insurance. I can listen to it in my own office where I have to pour and purchase my own coffee beans. Now call me a cheapskate, but I have been advocating for a long while that you pick up the phone and invite yourself for a cup of coffee with your independent insurance agent for a long time. He or she buys, you may even get offered a fancy latte or espresso, and you can hear the same seminar for free. It will even be geared specifically to your organization and your needs. Using my wife’s logic if two people in your office attend the coffee with your agent, you have just paid for an I-pad.

Here is what you get for $200:
Introduction – the Five W’s and H of Nonprofit Insurance Coverage
Why Does a Nonprofit Need Insurance? Why Does It Need to Understand That Coverage?
• Inherent Risks
• One Size Does Not Fit All
What Types of Insurance Policies Should a Nonprofit Consider?
Who Should Be Insured? Who Should Be Involved in That Determination?
• Nonprofit Organization
• Its Broker
• Its Carrier
• Its Insurance Coverage Counsel
To Where Should That Coverage Extend?
• Past, Present, Future Activities
• Choice-of-Law Considerations
When Should a Nonprofit Organization Consider Insurance Coverage Issues?
• Baseline Assessment
• Reassessments
• Renewals
How Can a Nonprofit Organization Protect Its Interests?
• Consider Insurance to Be Part of an Overall Risk Management Program, Not the Risk Management Program
• Insurance Must Evolve With a Nonprofit Organization and Its Risks
• Scope of Coverage
• Exclusions
• Conditions
Questions and Answers

Print this off, e-mail it to your Independent agent and ask where you can meet for coffee. Within days you will have received a $200 cup of coffee for nothing. I am not trying to denigrate the value of the seminar I am sure if you listened in, you will gain lot’s of knowledge. What I am trying to point out is that you can get the same information from an Independent Insurance Agent and spend the $200 bucks on a new putter or wedge.

While you’re at it try saving $5000 by calling your Independent Life Insurance Agent, like my friend Marvin Address. Ask him about your estate planning, disability, and long term care program. Pocket the money you will save on legal fees and take a vacation. Same principle — just call an Independent Agent, besides saving money you will gain peace of mind.

Jun 24, 2011 | 0 comments View Post

A Free Cup Of Coffee

I am a big advocate of taking advantage of that free cup of coffee any Independent Insurance Agent will offer you if you call and agree to meet at his office or a nearby Starbucks. Like my friend Marvin Address they will always pay for the coffee, and usually save you money or prevent a disaster. Insurance purchased over the Internet is not adapted to your unique needs. Exclusions are added to policies all the time, often in error. I have seen Labor Unions have policies that exclude labor activities, flood policies that exclude damages caused by flood, and life insurance policies that don’t pay when you die. Your agent will, over that cup of coffee, explain what your current policy does and does not cover, and if it is a good policy and priced right he will tell you. But if the policy does not cover what you think it does, don’t you want to know before you have a claim.

I have a friend who purchased a homeowner’s policy when he bought his dream house. He purchased guaranteed replacement value coverage. For the next 15 years, he got a statement from his insurance company and a bunch of paper. He paid every bill on time and the cost went up every year as did the value of his home. Then a fire happened nearby and it spread and totally destroyed his home. Everything was lost, with his family and dogs barely escaping. What happened? He called the company, the came out and said we will pay you $___ for your home. He said that is millions (yes, millions) less than it will cost me to rebuild. The company’s answer, seven years earlier, we changed your policy from a guaranteed replacement policy to a fixed dollar policy. My friend said, “nobody told me.” The company answered it was in all those papers we sent you with the bill. My friend said, “I didn’t ask for the change.” The company said we know, but we did it because we thought your home was in an area that was a higher risk for fire. Sorry, but we are only obligated to pay what we contracted to pay. Next time, read all that paper we send.

A free cup of coffee could have prevented my friend losing his dream of rebuilding. It can save you money or a disaster as I said. Call your agent and take him up on his generosity.

May 18, 2011 | 0 comments View Post

Mississippi River Keeps Rolling

by Webb Hubbell.

The Mississippi River inspires music and novels, but more than anything it requires respect. Its flooding has come again and in a rolling catastrophe like this, first comes the water, then come the rescues, then comes the snakes, silt, and slime.

By any measure, the situation along the Mississippi is grave and getting worse. Water is cresting at or above flood levels everywhere and to save cities the Corp of Engineers must flood crops and low lying homes.

Insurance is little comfort because most homeowner insurance policies do not automatically cover damages caused by natural disasters especially floods. If you want to protect your home financially from floods, earthquakes, and hurricanes, you usually need to purchase flood insurance that is specific in its coverage. Many affected can barely afford to own or rent their homes, special insurance coverage was a luxury which at the time seemed money not well spent, hindsight is always 20-20.

Some private insurance companies won’t provide coverage for natural disasters, even if you’re willing to pay extra. So the few who thought about it may have needed to go to the National Flood Insurance Program. Flood Insurance is one of those products every one says I need to ask my agent about, and then the flood occurs and the appointment with an agent is too late.

Physical danger remains after the waters recede. Snakes and toxins are just waiting for the residents to return. The U.S. Environmental Protection Agency offers health tips for homeowners who are digging out after a flood, including keys to avoiding water-borne bacteria; cleaning a home to prevent growth of toxic mold; avoiding raw sewage contamination, and securing septic systems and private wells, assuming there is anything left to return.

Mark Twain wrote: “One who knows the Mississippi will promptly aver … that ten thousand River Commissions cannot tame that lawless stream, cannot curb it or confine it, cannot say to it, Go here, or Go there, and make it obey.”

The Corp of Engineers is trying, but
all anyone can do is protect themselves with as much prevention, insurance and common sense as they can muster for future floods. the one thing that is certain is the Mississippi will keep on rolling.

Related Resources:
• The National Flood Insurance Program (FEMA)
• United States Code Chapter 50: National flood insurance (U.S. Code)
• How the Emergency National Flood Insurance Program Works (FindLaw)
• Myths and Facts About hte National Flood Insurance Program (FEMA)
• Flood Recovery: Safety Issues and Flood Insurance (FindLaw)

May 16, 2011 | 0 comments View Post

Broken Records

Back when you listened to music with a vinyl record player eventually the record would get scratched. When the needle would hit the scratch the needle would jump and the result would be a constant repeating of the same words. Thus the term, “you sound like a broken record.” It means you are repeating yourself to the point of irratation.

Well I am going to be the broken record today and repeat myself. Pick up the phone now, and call your Independent agent, Like my friend Marvin Address and talk to him about disability, long term care, and life insurance. Don’t look up the costs online and put off calling. I am willing to bet he/she will meet you at your favorite Starbucks, pay for your extra size cup of your favorite drink, and perhaps save yourself tons of heartache and anxiety.

You just don’t know what is going to happen in the future. There are no guarantees, and a car wreck, unexpected health emergency, tornado, etc. is in the majority of our futures. My grandmother used to say, “if you plan for an emergency it will not happen. So then why not plan?”

I promise the free coffee is worth a whole lot more than it will cost you, and I will get out of my chair and replace the broken recors.

Apr 27, 2011 | 0 comments View Post

Deductibles – Become Your Own Risk Manager.

For most Americans and small businesses, times are still very tough. Whether at home or at our business, we are looking for ways to cut expenses without fundamentally altering how we live or work. Here is a recommendation that will help your bottom line, for some in a significant way, and at the same time not force you to alter your lifestyle or layoff employees. Become your own risk manager.

What many risk managers do for their clients is help the clients assess their “appetite for risk.” Ask, “How much risk am I willing to take on? Also, give some thought to frequency and likelihood. If you have a teenager just about to start driving, you may want to have a low deductible for collision coverage; where, if you are the only driver and haven’t had a ticket in years, you might ask yourself, “What level of risk am I willing to take?” What dollar amount is not worth the hassle of reporting a claim?

Call your Independent Agent, like my friend Marvin Address, and ask him to give you quotes on your homeowners, auto, personal umbrella policy, etc. with higher deductibles. You might be surprised to find out how much you can save by increasing your deductibles. Set a goal with your agent. Say, I want to save $100, $200, $500 a month on my personal insurance bill. “How do I make it happen?” You might be pleased with the answers. Talk to your agent about your life insurance. How can I lower my payments. Is there a better and less expensive policy out there. Again, the agent can work magic if you get out of the mode of just paying the bill when it rolls around without opening the envelope.

In your business, the savings by raising deductibles can be significant. Also, have your agent explain your coverages. You often will discover coverages where there are little or no risks. When these coverages are eliminated you may find the savings that allow you to keep that key employee working. I have discussed several times about workers compensation savings. Talk to an agent who has taken and bought into the AWCA type program to reduce workers compensation costs. Talk to your employees about safety programs and how they mean money to pay salaries. Your workers compensation bill may be 25% too high just because your Mod factor isn’t properly managed. Again set a goal of reducing your insurance costs and ask your agent to help you make it happen. The savings are there especially if you truly analyze your own appetite for risks.

Finally, call your Marvin Address and talk to him about your health insurance premiums. Ask him to analyze the cost savings that a higher deductible plan may offer you and your employees. If the saving are significant then enlist the agent in developing a plan to sell the plan to your employees. Show them how it saves them their jobs, lowers their share of premiums, engage them in the dialogue about safety programs, wellness, and environmental health. You might be surprised not only with the financial savings; but the employees’ appetite for risk as well.

If you are big enough, engage a risk management consultant with the goal, again, of reducing cost. You will be shocked at the results and the addition to your bottom line. What will be even more shocking will be the long term benefits to you, your company, and your employees. If you aren’t big enough yet, become your own risk manager and use the resources that are available to you at no cost, including your Independent agent and yours truly website.

Mar 29, 2011 | 0 comments View Post

Disability Included in Your Estate, Retirement, and Life’s Planning

Now that Congress has decided to allow your heirs to keep at least $10 Million dollars tax free isn’t it time you did something for yourself? When your lawyer suggests its time to take advantage of all the loopholes that have been discovered in the Tax code, ask him what happens to me if I can’t work, even for a while? When your employer or your employer’s insurance agent says “You are covered for that contingency under your group plan.” Read the plan and ask yourself questions like, “can I live and support my family on that amount 5 years from now?” “What happens when I can do most things, but I have lost my job in the meantime? What do you mean if I receive “other income” it reduces my insurance benefit?” There are lot’s of questions you need to be asking and don’t rely on someone who isn’t acting or advising on your best interests.

I personally believe that a serious discussion about disability with an Independent agent, like my friend, Marvin Address, is more important than discussions about life insurance. You can’t get straight answers from the Internet on this one. If you think you owe it to the wife and kids to leave them something in case you die? Think about you lying in bed and your wife and kids having to support you because you loaded up on life insurance, but “assumed” you had disability that was sufficient. Life Insurance companies offer combination policies that protect you if you are disabled and your family if you die. Ask your agent.

Don’t get so wrapped up in worrying so much about your estate plan that you forget about a plan for living. Take the time to get good advice. Remember if you are twenty you have a 30% chance of being disabled during your working life. Please don’t neglet yourself and your family in this regard.

Mar 09, 2011 | 0 comments View Post

The Word Is Out — Ten Million Tax Free Legacy!

Last month I told you that my friend, Marvin, had told me how the new tax Act had enabled taxpayers to leave at least a Ten Million Dollar Tax Free Legacy. I advised you to contact your Independent agent like Marvin (Marvin Address & Associates) or your tax counsel. I immediately received calls from some friends saying please keep quiet about this. That this idea would get out and Congress might try and fix it. Well the “word is out.” In today’s New York Times in their “Wealth” special section Lynnley Browning talks about “Tax-Free Life Insurance: An Untapped Investment For the Affluent.”

Yes, the word is out, and from reading Browning’s article the lawyers are already taking things as they say in Star Wars, ” To places where no man has gone before.” Browning says, “It’s viewed as an insider’s secret for the affluent: a legal way to invest in hedge funds and other potentially lucrative assets, all without paying taxes on the gains.”

Worried about getting your money out ? Well apparently investors may be able to borrow up to 90 percent of the gains from the policy portion of the investment without paying taxes on the loan. Again, I am not offering Tax or Estate Planning advice, this is clearly something available to those fortunate few who are affluent, have good tax counsel, like my friend, Charlie Owen, and a sophistication necessary to invest in this vehicle. I commend Browning’s article to you whether you qualify or not.

What else lies within that multi-thousand page bill that  was passed by the lame duck Congress time and shrewd lawyers will tell. Nor do I believe that the investment vehicle is the only way to skin the “Tax-Free’ cat. In fact I am sure it is not. I simply point out that eventually the word does get out, the loopholes do get discovered, and once again we discover that for the very wealthy in this country there is always a way to avoid the tax man.

Feb 10, 2011 | 0 comments View Post

Don’t Let The Word Out!

In response to my posting about Ten Million tax-free, I received calls from several of my friends in the insurance industry who admonished me to keep quiet about the windfall the new tax laws created. “Be quiet!” They said. Their motive for wanting me to keep this legacy from the general public was it would be too good to last. Congress would realize that they hadn’t just created a small exemption for a privileged few, as they are prone to do. Instead the Ten Million is available to all who can pay the premiums, and once people found out and started taking advantage of this provision, then Congress will have to close the floodgates. Again, I don’t profess to understand the intricacies of how it works, I just know if you are insurable and want to take advantage of your ability to create at least a ten million dollar tax-free legacy there are agents, like my friend Marvin and tax lawyers, who believe they can make it happen. I don’t believe we should limit this break to a privileged few. So call your Independent Agent.

Jan 17, 2011 | 1 comment View Post

Why Do I Need Disability Insurance? Is .300 a Good Batting Average?

On several occassions I have encouraged my readers to consider purchasing disability insurance. If they are part of an employer’s plan I have encouraged them to investigate a supplemental policy. I have encouraged them to sit down with an Independent agent, like my friend Marvin Address, and discuss what would happen if you becamed disabled. Despite my urging, most people put that on their list to do someday and don’t think about it again. I ran into a friend the other day who for over the last 10 years has what is diagnosed as a disabling cancer. It came on suddenly without warning. She is single and her job was her major source of support. She no longer can work, because of her constant treatments.

She still has a wonderful attitude and as we visited she said, ” Webb every time I see you I will say , thank you, thank you, thank you. I remember when I asked you to look over my benefits package at work. You found that I had an opportunity to purchase a supplemental disability policy through my employer. You said it was probably more important to purchase this than more life insurance. Well I took your advise. I am now disabled, but I am stress free about money.”

The Social Security Administration reports that a 20 year old worker has 30% chance of being disabled during his/her lifetime. That number surprised me and makes me want to try one more time to encourage you to at least visit with an Independent Agent about disability coverage. Life Insurance is important, but for a lot of us insuring our weekly ppaycheck is more important. Life Insurers are now offering combination coverages, ask your agent. It is worth a risk assessment at least. A .300 lifetime batting average is Baseball’s Hall of Fame material, but not much comfort if your benched with a long term disability.

Jan 14, 2011 | 2 comments View Post

Ten Million Dollars Tax Free!

I called my friend Marvin Address, www.addressinsurance.com., after the new tax bill passed the lame-duck Congress and was signed by the President. I asked him how the new tax bill was going to affect him, knowing he always looks on everything as an opportunity. However, I also know he is a realist and would tell me the down side of the bill as well. All he could say is “Ten Million tax-free, can you believe it?” Now he is the life insurance expert and the intricacies of the interplay of estate taxes, life insurance, and trusts I put behind me 40 years ago in law school, so I didn’t quite understand what he meant. But he assured me that within a few months every life insurance company and agent will be touting products that enable anyone who is insurable to accumulate for his family a $10 million dollar tax free legacy. Being uninsurable, I am one of the few people in America that to whom this opportunity is not available so “I don’t have a dog in this hunt.” So all I can recommend is call an independent Life Insurance agent, like Marvin,  and/or your estate tax lawyer.  Although I haven’t completely given up on reforming our tax code to cease its ever growing content from being a social policy document that is not understandable. If Marvin is correct, what’s the harm in a phone call to see if you qualify.

Jan 10, 2011 | 1 comment View Post

Whose Got Your Homeowner’s Insurance Blind Side — Part 3

Rule No. 3. Make sure what is being insured and not insured.

Although there are common homeowner’s policies and the terminology in a lot of cases is the same, not two policies are exactly alike, especially when you add exclusions labeled sometimes as “endorsements.” That’s why you have your meeting with your independent agent. (Make him/her buy the coffee or the lunch.)  Bring with you the policy you got in the mail, at least a picture of the house, pictures of any significant landscaping or outbuildings, and the basic information on your mortgage. Now after the usual pleasantries start with going over the policy:

  • Address — Make sure it is the right address and description. Especially if your property includes outbuilding, studios, unique landscaping, sculpture, etc. ( My last policy came in the mail to my right address, but the policy itself covered the home down the street.)
  • Value — Talk about the  value of the property. Value has numerous meanings -replacement value, market value, mortgage amount, cost less depreciation value. What will you receive if there is a total loss, and just or more importantly a partial loss? In today’s economy what will happen – will your lender let you rebuild or take its payoff and run? Has your property depreciated so much in market value that you will end up with nothing? Has your property appreciated due to time or improvements you made? Is that addition even insured? There are answers to all these questions and many more based on your unique circumstances, but if you and your agent don’t have this discussion then one day the answers may be not what you expected. Tell him/her about any unique features that may not be easily replaced or constructed.
  •  Personal property is always difficult because no matter how much trouble you have gone to keep records of what you own you won’t have it all, and even then the records might have been destroyed as well as your home. Also you may not have purchased your most valuable possesions. You may have inherited them or being given to you. Will your policy cover their value to replace or some depreciated value based on age. Again there are answers, but the answers may affect how you insure the personal property.
  • Most policies contain sublimits for things like landscaping, outbuilding, etc. Even if your home is properly insured the rest of your property may not be. Take the time to think through what would happen if you had to start completely over what would happen to all that work you put into things that are not part of the main structure. Again if you don’t have this discussion you may not be able to rebuild your dreamhome.

I think you are getting my point.  In a lot of cases this discussion with your agent will not lead to higher premiums, in fact it might lead to savings. Continue to visit the site for more tips as we help you plan to have a stress free new year.

Jan 05, 2011 | 0 comments View Post

Whose Got Your Homeowner’s Insurance Blind Side? — Part 2

Rule No. 2 Review your policy when it comes in the mail. Despite your lack of understanding of insurance terminology right there on the policy will be language to the effect — “When you receive this policy in the mail, please carefully review and report to your agent any errors you may notice immediatedly.” Now forget the fact that you are not an expert in reading insurance policies, the company is immediatly trying to “transfer a mistake” from them to you. If there is a loss and you all of a sudden find yourself underinsured or not covered the first thing you are going to hear from the adjuster after he/she has delivered to you the bad news is, ” Didn’t you read your policy?”

Now in your next installment we will go over some of things to look for in that policy, but here is a tip. When you receive your policy in the mail send an e-mail to your independent agent. Here is what you say in your own words. I just received my new homeowners policy in the mail. Thank you for handling this for me. Since I am not an expert at reading policy language, I am relying on your expertise to review the policy to make sure it is what we discussed and provides the appropriate coverages. If we need to discuss the policy please call so we can set up an appropriate meeting. I bet you receive a call.

Now, a lot of companies do not send you a policy every year. You may get simply a summary of insurance and a bill. Again I will discuss what to look for in that summary and those “endorsements” that fill up your mailbox and your insurance file folder. But again when you receive something from the company a quick e-mail to your agent telling him you received ______________. To be careful save these e-mails in a folder on your computer it may be the best few minutes you can spend.

As you can tell I am a big advocate for having an independent agent, and establishing a relationship with his/her office. When you have a question call or e-mail. When you have a claim call or e-mail your agent even if you are dealing with a company adjustor. Your agent can make the difference. He/she can make a tragedy a lot less painful or stressful.

Continue to visit the site for more tips as we help you plan to have a stress free new year.

Dec 29, 2010 | 1 comment View Post

Whose Got Your Homeowner’s “Blind Side?” — Part One

I watched again with my daughter the Sandra Bullock movie The Blind Side. It has all my weakness, a sports movie somewhat, sappy, and a little bit of humor, plus Sandra Bullock is one of my favorites. From all I read, she has her “head put on right.” At some point in the movie she says words to the effect, “any housewife knows your first check you write every month is to pay the mortgage, but the second is to pay the insurance.” Well I don’t know if every housewife knows that much about homeowners insurance or any husband either, but they both should know some basics. Most homeowners have to have it because the bank is going to require it, usually your premium is paid by an escrow account with the mortgage servicer, and for most Americans it is the single largest investment they own.

For the next few articles as you start your year-beginning planning we will to try to give you some basics and tips how to make sure you can sleep at night because you are properly protected. Rule 1… Buy your homeowner’s insurance through an Independent Agent. Do not get pressured through your bank to buy your homeowner’s insurance through them, and unless you are an expert in homeowner’s insurance do not buy your insurance on the Internet. You have a lot of money in your home, you owe a lot of money on your home ( at least most people do ). Make sure that if a tragedy would occur that a second tragedy doesn’t occur when you realize what your policy does cover and what it does not cover.

Again, watch for the next few installments.

Dec 27, 2010 | 0 comments View Post
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