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Auto Insurance 101

Jeff Swanson — Wed, 29 Feb 2012 06:00:00 GMT

Okay... so you may know this info but if your son or daughter is headed out on their own for first time and needs the 101 insurance talk, here is Auto insurance in it's simplest form:

http://www.marketwatch.com/story/auto-insurance-how-to-get-covered-without-breaking-the-bank-2012-02-28

Protect Yourself when hiring contractors

Jeff Swanson — Fri, 24 Feb 2012 06:00:00 GMT

Go to the link below for a spot on report dealing with hiring contractors to do work at your home or deciding on which day care is right for your child. Good stuff!

http://www.foxbusiness.com/personal-finance/2012/02/23/protect-yourself-make-sure-businesses-deal-with-are-properly-insured/

Home Insurance Costs Rising

Jeff Swanson — Wed, 22 Feb 2012 06:00:00 GMT

Succinct article about the rising cost of homeowner's insurance. VERY telling that you see all the companies out there advertising like mad for the customer's auto insurance, but no one advertises for their home insurance. Expect prices to keep rising, especially with the large captive carriers. Regionals are still very competitive and savings can be substantial. Shop with an independent insurance agent who has at least 4-5 home markets to pick from.

http://outofthestormnews.com/2012/02/21/letter-from-washington-homeowners-insurance-is-a-crummy-business/

Home Insurance - Replacement Cost vs Market Value

Jeff Swanson — Wed, 18 Jan 2012 06:00:00 GMT

As an insurance agency one of the hardest thing to get the buying public to wrap their heads around is the issue of "Replacement Cost" vs "Market Value" of their homes. The replacement cost is determined by taking all of the details about your home; construction type, year built, zip code, upgrades, basement etc., and using insurance company provided replacement cost guides and coming up with the estimate to answer the following question: "If the home were destroyed what do we (the insurance company) believe it would cost to rebuild the customers home. "

5 years ago when home prices were inflated, it was not uncommon to see a home with a replacement cost estimate of say $300,000 and the sale price or market value could be $400,000. In those cases the lender would require at least enough coverage to satisfy the mortgage amount, even though there was every chance the rebuilding of the home would only take the estimate of $300,000. Today, we often find the situation reversed. There are homes that were insured for $350,000 which could possibly be fully insured (with replacement cost guarantee of 25% which is a topic for another day) for $275,000 or $300,000.

Point is... take the time to look at your home insurance policy. Don't compare it to what the market value is and if you need some guidance call your agent and review it with them. They should be able to look at your policy and review it to see if coverage is adequate.

Rental Cars and Unauthorized Drivers

Total Insurance Planning — Mon, 02 Jan 2012 06:00:00 GMT

An insured called to advise that he was going on vacation and renting a car in his name. He has a 19-year-old who he understands cannot drive the rental car by requirement of the rental car company. However, he is planning on letting the 19-year-old drive the car anyway. His question is: Will his personal auto policy(PAP)respond?

It is highly unlikely that his PAP would respond because of these exclusions:

Liability Exclusion:
8. Using a vehicle without a reasonable belief that that “insured” is entitled to do so. This Exclusion (A.8.) does not apply to a “family member” using “your covered auto” which is owned by you.

Physical Damage Exclusion:
8. Loss to any “non-owned auto” when used by you or any “family member” without a reasonable belief that you or that “family member” are entitled to do so.

Clearly, the 19-year-old is not entitled to use the vehicle and it is presumed that he knows that. His only option would be to buy the rental company’s liability and LDW/CDW coverages, although almost certainly they would be voided if an unauthorized driver is using the vehicle.

The solution here is for them to abide by the contract being signed. It is doubtful that teaching a young person to willfully violate agreements is a good lesson to be passing along anyway.