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Unexpected Protection with a Personal Umbrella Policy

Mon, 12 Mar 2012 16:14:00 GMT

In the third installment of our blog series on insurance policy reviews, we invite you to take a look at your current coverage. Are there any gaps? It might be the time to consider personal umbrella insurance.

Accidents happen. And lawsuits sometimes follow. Judgments amounting to thousands or even millions are being awarded by juries across the country in ever-increasing numbers. If you accidentally injure someone or damage their property, you could be the one sued. Even though your underlying auto and homeowners policies may provide substantial liability limits, it is not uncommon today for juries to award damages that exceed those limits. Or what if someone sues you for a claim not covered by your other policies? That’s where a personal umbrella policy (PUP) can help. Coverage amounts are written in increments of $1 million and supplement your present policies to provide additional personal liability protection.

Why is Personal Liability Insurance So Important?

With a personal liability insurance policy, you’re protected from the risk of being held responsible for damages and injuries to others. If you’re found legally liable, you’re covered for any legal payouts (up to the primary liability policy limits) or legal costs associated with the lawsuit. If you don’t have this coverage, any legal fees and damages would have to be paid for out of pocket.

A Personal Umbrella Policy Can Give You Peace of Mind

A second layer of liability coverage, a personal umbrella policy sits on top of your personal policies’ liability coverages. If you end up getting sued for an amount that’s more than the primary liability covered on your personal home, auto or other (think rental property, boat, motorcycle, ATV) policy, you could have to pay out of pocket for the amount that exceeds your primary limit of liability.

Personal Umbrella insurance Covers More Than You May Think

You (as the insured) and any of your resident relatives
Gaps in your primary policy coverage such as protection for personal injury liability for wrongful entry, false arrests, invasion of privacy, slander, defamation, libel and humiliation
Legal payouts against you when your underlying liability insurance limits are exceeded by a covered lawsuit
Legal costs and expenses are covered by the insurance company and are typically covered outside your policy limits

Typical Size and Coverage Amounts for a PUP

For qualified applicants, a personal umbrella policy’s coverage limits start at $1 million and go up in million-dollar increments. When determining your PUP coverage, take into account that your assets also include your future earnings, home and other property, business interests and valuables.

A Personal Umbrella Policy Applies Worldwide

No matter where you go in the U.S. or around the world, your PUP coverage goes with you.

A PUP is Affordable

Depending where you live, a personal umbrella insurance policy can cost you as little as $1 a day, and sometimes even less. Best of all, the additional protection can work with any existing personal liability insurance coverage.

You Must Meet the Minimum Underlying Limits on Your Primary Personal Policies

In order to retain a personal umbrella policy, insurance companies require that you maintain certain minimum amounts of primary liability insurance.

If you’re still wondering if a personal umbrella policy is right for you, contact your insurance agent. They will help you analyze your personal liability insurance to uncover any gaps that exist and help you prepare for the unexpected.

Check back regularly to keep up with our blog series on insurance reviews. And don’t forget to send in your questions or suggestions about the insurance issues that you care about most.

Don’t Forget to Review Your Automobile Insurance Coverage

Sun, 04 Mar 2012 17:22:00 GMT

Welcome to part two of our blog series exploring what to look for when you review your insurance coverage. Previously, we looked at what to look for when reviewing your home owners insurance. Here, we’ll explore how to review your automobile coverage. In the coming months, we’ll look at the important aspects of other kinds of insurance. Let us know your questions, and feel free to suggest additional insurance coverages you’d like us to target.

Don’t Put Your Auto Insurance on Autopilot

You’re a smart driver. You wear your seatbelt, make sure your vehicle is equipped with airbags and always obey the laws of the road. But are you protecting yourself with quality auto insurance policy coverage? Do you drive around assuming that you’re covered if the unexpected were to happen? Do yourself a favor – Take the time out regularly to do an insurance policy review to truly understand your automobile coverage. It’ll make all the difference when it comes to your safety and financial security.

Why? To be sure you are receiving the best possible rate with all eligible discounts. Also, to ensure your automobile insurance coverage has no gaps and is right for you before you have a loss

When? At renewal or whenever you’re thinking of making a change like changing cars or adding a young driver to your policy

How? Set up an appointment with your agent to go over your policies.

10 Questions to Ask During an Auto Insurance Policy Review:

When it comes to our car insurance rates, it’s easy to fool ourselves into thinking the lowest price is the best value. But buying the wrong type of automobile coverage can cost us more in the end. Here’s what we should ask ourselves:

What is liability coverage and why is it so important?
Essentially, this is your “lawsuit defense fund.” If you’re at fault in an accident that's covered by your policy, and other people and/or property are injured or damaged, Liability coverage helps protect you from the cost of these damages and the legal expense to defend you.
Do we have adequate liability coverages on our policy?
It’s probably in your best interest to purchase higher limits. If someone else is injured and you're at fault, the minimum liability coverage may not cover their medical and other expenses, in which case their attorney will most likely go after your personal assets. Your insurance agent can help you determine what’s appropriate.
Is the underinsured/uninsured motorist coverage adequate for my family and me?
Uninsured/underinsured motorist coverage is basically a liability policy for someone else that causes bodily injury or property damages to you if they carry no insurance or very little insurance. While it may not seem fair that your insurance is picking up the tab in this situation, it’s crucial that you’re protected with the appropriate amount of automobile coverage.
What’s the difference between Collision and Comprehensive coverages? Do we need either or both?
We all need both. Collision coverage helps protect you from repair costs to your car if you're involved in a covered accident. Considering it's a covered loss (that's insurance-speak for an accident that's specifically covered by your policy), Collision helps pay for the repairs, up to the actual cash value of your car needed to get it back on the road. Comprehensive covers the accidental damages to your car that Collision does not, including storm damage, vandalism, theft or striking an animal (unfortunately here in NJ, that’s often deer). Similar to Collision coverage, the higher the deductible the lower your premium, though the savings are usually not as great.
Do accidents and tickets affect our rate? Any way to hedge this risk?
Accidents and tickets affect car insurance in different ways depending on certain details, as well as your insurer's underwriting guidelines. There will not always be a negative impact on the policy premium; however, rates may be increased or a policy may be non-renewed if the accident is classified as chargeable. If you see inflated premiums following accidents or ticket, you’ll want to talk to your agent to see if a cheaper rate is available.
Are we covered if we need to rent a car while our vehicle is being repaired due to an accident? Do we want to be?
Rental Car Reimbursement Coverage will reimburse you for the cost of a rental vehicle after an accident while your car is being repaired. Talk about convenience!
What’s PIP and how much do we need?
PIP covers not only reasonable and necessary medical and hospital expenses, it can also help you with income continuation, household services, funeral expenses and even child-care expenses while you’re healing. Your agent can help you review your current car and health insurance coverage policies to determine how much coverage you need, but one thing’s for sure, New Jersey requires it.
Are we missing any discounts?
One of the primary reasons to review your auto insurance policy coverage is to be sure you are not overpaying. Reviewing discounts is a simple and easy way to accomplish this. Some common discounts include defensive driver, good student, multi-policy, safe driver and good payer.
What’s new or has changed with our policy?
Always ask your insurance carrier whether there have been any changes or adjustments to your policy coverages. Have they added any new guarantees or enhancements? If so, review the cost vs. benefit to you.
What impact do young drivers have on our rates?
Fortunately, the cost of teen auto insurance doesn’t have to break the bank or cause unnecessary stress. You can get dependable, affordable automobile insurance coverage for teenagers with discounts from a quality insurance company.

Automobile coverage is a crucial building block in the foundation of your budget. And it’s all about the right mix of price and protection. Your insurance agent can help you select the right automobile insurance coverage for your lifestyle with every available discount, which can add up to some serious savings… of money AND stress!

Next in our insurance policy review blog series we’ll explore what to look for in a personal umbrella policy. In the coming months, we’ll look at the important aspects of other kinds of insurance. Let us know your questions, and feel free to suggest additional insurance coverages you’d like us to target.

Are your valuables protected?

Mon, 20 Feb 2012 13:43:00 GMT

You bought it because you loved it. Whether it's a precious piece of jewelry, a painting, sculpture, antiques, rare coins or memorabilia, it's important to protect the possessions you cherish the most. Homeowners policies have limitations on the protection provided for valuable items. This is where personal articles insurance (also known as a valuable articles insurance policy or an insurance rider) can help.

Five things you may not know about valuable articles insurance

Homeowners coverage is limited for some valuables.

Your homeowners policy will protect the majority of your personal possessions (in fact, the personal property coverage on your homeowners policy is usually 70-75% of your dwelling coverage). But your high-value items like jewelry, artwork, silver and antiques are most likely not fully covered. Of course, if we’re talking about something that’s less than $500 in value, you’re probably sufficiently covered. Chances are you’ve invested time, passion and money into more than just one treasured possession, so what happens if your favorite item gets lost or stolen? A good personal articles insurance policy will protect you.

Personal articles insurance covers more than you may think.

Computer Equipment
Sports Equipment (such as bicycles, golf clubs)
Collectibles
Jewelry
Musical Instruments
Furs
Cameras
Silverware/Goldware
Fine Art (like oriental rugs and paintings)

You can insure your valuables for their actual worth.

You should insure your valuables in advance, before anything happens. Dollar for dollar, an insurance value must be settled upon. If you still have the sales receipt, it can be based on what you paid for the item. Otherwise, it will have to rely on the item’s appraised value. Keep in mind that most insurance companies require an appraisal be done within the last three to five years.

You have choices when it comes to your personal property coverage.

If your valuable items aren’t covered completely because they’ve fallen outside of the specific item coverage limits on your homeowners policy, don’t worry. You can customize your policy with additional coverage options to protect what you care about most. Available options include jewelry insurance, or coverage known as scheduled personal property (SPP), and extended coverage on specific items or collections.

With each policy, some things are covered, and some things are not.

Personal Property Protection

This kind of coverage is subject to your deductible, it applies to the personal property used or owned by the named insured worldwide (restrictions apply).
Except where limited or excluded in your policy, this covers accidental and sudden direct physical loss caused by a named peril
If the property is located or stored anywhere other than your primary home, your personal property coverage is limited to a smaller percentage of your homeowners dwelling coverage that regular personal property.
A resident employee or guest’s personal property is covered while that property is in the residence where the named insured lives.

Extended Coverage on Jewelry, Watches and Furs

When added onto the policy, this coverage applies to, gold, watches, platinum, jewelry, precious and semi-precious stones, gems and furs, and is subject to the policy’s deductible.
While there are some specified exclusions, this extended coverage covers accidental and sudden direct physical loss, such as mysterious disappearance.
There are coverage limitations based on the number of occurrences as well as a per-item limit.
Typically, the amount of coverage isn’t added to amount of personal property coverage.
You may choose blanket or item coverage. Item coverage is written for a set dollar amount and is typically for high-value pieces like a wedding ring. Blanket coverage lets you insure a specific category like gold jewelry for an overall dollar amount. This is what you want if you have many items of lesser values (e.g. $25,000 of gold jewelry with no one piece worth over $2500).

Scheduled Personal Property (SPP) Endorsement

This coverage is outside the limit of personal property on the rest of your policy
Coverage must be 100% of current market value; this insures items against all risks. A recent appraisal or sales receipt is usually required to establish the item’s value.
While restrictions and limits may apply, this covers damage to or loss of an insured person’s personal property as scheduled for all risks, including direct physical loss worldwide and mysterious disappearance. But coverage on firearms, fine arts and business personal property is limited to within the United States and Canada
You may write this policy with higher deductibles, and it can be different than the deductible amount on your policy. SPP isn’t subject to the policy's deductible unless written as such.
SPP coverage typically costs more than Extended Coverage but it offers more specific coverage for your protection
When it comes to sets and pairs (like losing one earring), if the item has been listed on a scheduled personal property insurance policy, it can be either replaced or repaired so its value is restored to the pre-loss value. The policy may pay the difference of the value of the property after and before the loss.

As you can see, personal property coverage can be complicated. Do you know what you need and what you don’t? Everyone could use some advice when it comes to our cherished possessions, so why not call up your insurance agent and get some pointers? They can help customize a personal articles insurance plan that covers you when the unexpected happens.

Be sure to look for our blog series on insurance reviews. As always, hope to hear your questions and suggestions on the insurance topics that interest you.

Have You Reviewed Your Home Owners Insurance Lately?

Thu, 09 Feb 2012 01:36:00 GMT

Most people don't give much thought to their home owners insurance coverage until a tree destroys their roof or a basement transforms into an indoor swimming pool. The fact is, a periodic checkup on your house insurance coverage can make for a healthier policy and a healthier wallet. Home insurance coverage is more expensive than ever thanks to a rising number of claims – but every year just passively renewing your policy could cost you more than it needs to.

Here’s why, when and how you should review your home owners insurance coverage:

Why? To make sure you have what’s right for you before you have a loss

When? Periodically (at renewal) or whenever you know there’s been a significant change such as a remodel, purchase or sale of an expensive item

How? Set up an appointment with your agent to go over your policies.

10 Questions to Ask During a Home Insurance Coverage Review

1. Is our dwelling coverage adequate? The amount of dwelling coverage should be enough to cover the cost of rebuilding your home in the event of complete loss. This insurance is based on replacement cost of dwelling not market value and it does not include land. If the dwelling is underinsured, you may get penalized. Does your insurance agent know about your home addition, or newly renovated kitchen or bathroom?

2. Do we have an all-risk or a named peril policy? When choosing disaster insurance, you basically have these two choices. The primary difference between them is that a named peril policy covers what is "named" (included) in the policy while an all risk covers everything except what is excluded. Typically, an all-risk policy offers much more comprehensive coverage.

3. Do we have replacement cost or actual cash value coverage on our dwelling and contents? Replacement cost coverage and actual cash value insurance refer to the amount of money your provider will pay out if your home or its contents are damaged or destroyed. Replacement cost coverage doesn’t deduct for depreciation while actual cash value insurance does.

4. Do we need building ordinance or water sewer backup coverage? In the event of a claim, your insurance company may deny paying for increased costs or demolition expenses incurred due to local building ordinances that call for the destruction of a dwelling. This coverage is particularly important for homes older than 25 years. You’ll also want to consider coverage for water and sewer backup.

5. Do we have or need a property inflation adjustment on our policy? While most insurance companies automatically adjust your policy to keep pace with building cost inflation, you should check into this. You probably have seen your premiums go up to cover the rising cost of replacement but the annual increase for this is usually minimal.

6. Do we have or need special coverage for other structures on our property? Most policies automatically provide this coverage. However, if you have a swimming pool, tool shed or detached garage on your property, you need to double-check that they are adequately covered.

7. Do we have adequate contents coverage? The value of your clothing, furniture and other belongings adds up quickly. These items are typically insured as a percentage (50% to 75%) of your dwelling coverage. It is very important to understand how much and what is and is not covered.

8. Do we have or need special coverage for any of my personal items? What kind of coverage limits does your policy have with regard to jewelry, fine art, musical instruments, etc.? Is an appraisal required to get this special home owners insurance coverage? Without it, your engagement ring may not have enough, or any, coverage if the diamond falls out of its setting.

9. Has our insurance company changed our policy coverages or added any new discounts? While they are required to notify you of policy coverage changes, it’s a good idea to ask just in case you missed the notice. There may be ways for you to save money on your house insurance coverage. Whether it’s changing deductibles or installing protective devices, you’ll want to find out what you’re missing.

10. Is my liability coverage adequate for what I need to protect? Your home owners liability coverage protects you against the financial uncertainty arising from injury (or property damage) caused by you or a resident family member. Usually, your liability coverage will apply if the injury or property damage occurs on or away from your property. If you don’t have enough liability insurance, then your assets could be at risk. The liability coverage on your home owners policy can help you protect your retirement accounts, investments in stocks and bonds, checking/saving accounts, home and other real estate equity. It is very important to discuss the assets you need to protect with your agent to determine the level of liability coverage that is right for you.

When it comes right down to it, one of the best ways to stay educated about your home owners insurance policy is to ask the right questions of your insurance agent. Don’t assume that just because you have home insurance coverage that you’re fully covered.

Stay tuned for part two of our blog series on insurance policy reviews. We look forward to questions and/or suggestions on the insurance topics that matter to you most.

Before Your Renew Your Insurance Policy

Thu, 09 Feb 2012 01:32:00 GMT

With many aspects of our financial lives, it’s quite common to just “set it and forget it.” This can work out well when we’re setting up a savings plan that automatically transfers money from a checking account to a savings account, but in the case of insurance, this strategy can end up working against you. Just because you have insurance doesn’t mean you’re covered. So much can change within the span of a year, and unless you take some time to review your coverages, you may be surprised when it comes time to use them.

This topic is so important that we’re writing a series of blogs on what to look for when reviewing various kinds of insurance policies.

What to Do When Reviewing Your Insurance Policies

Review Coverage

Do you understand what your policy does and doesn’t cover?

Assess Your Situation

Is this policy appropriate for your lifestyle today? Your insurance agent can’t insure what they don’t know about, so help them help you minimize surprises when you have to file a claim.

Need Help Reviewing Your Policies?

Keep yourself ahead of the game by partnering with a qualified insurance agent to help you with your insurance planning. Insurance might be considered a commodity by some, but advice is not. With in-depth product knowledge and experienced-based insight, a professional insurance agent can help you build a custom plan that works best for your situation.

Our blog series will start with what to look for when you review your home owners insurance coverage. Next, we’ll explore how to review your auto policy coverages. In the coming months, we’ll look at the important aspects of other kinds of insurance. Let us know your questions, and feel free to suggest additional insurance coverages you’d like us to target.

Are You a Contractor? Protect Yourself with Business Insurance Coverage

Thu, 22 Dec 2011 18:25:00 GMT

Are you a contractor that runs a business out of your home? Whether it’s just you getting out in the field fixing a roof or painting a house, or you have a couple of employees or subcontractors helping you each day, contractor insurance is something you must consider buying. In fact, you’ll find it pretty difficult to get work without some form of business insurance coverage. A thorough plan with protection including business owners or commercial general liability insurance and workers compensation insurance is the only true way to protect yourself and your business from risk.

While you may think your contracting business is too small to require contractor insurance, the truth is, you face similar risks as the largest corporations. Anything can happen on the jobSomebody’s property can be damaged or someone can get injured. And any accident that happens can find you liable. That’s why it is so important that you protect yourself properly.

Top 5 Contractor Insurance Considerations

Any company involved in construction work, building and general contracting – even independent contractors in fields from IT to consulting – needs protection. To determine your business risk, an insurance underwriter will need to know what your business does. Using that information, they can customize a coverage plan that minimizes your risk. You may need a customized business owner policy (BOP) while another company may require a commercial general liability policy (CGL). Both may or may not need a commercial auto policy and both may need workers compensation coverage. It depends on your type of business.

If you’re a plumber, painter, electrician or other type of tradesperson who runs a home-based business, here are the top five things you should consider as a contractor looking for business insurance coverage:

General Liability Insurance
As a contractor, you can be held accountable for injuries or property damage caused by you or one of your employees or sub-contractors, ownership of property, manufacturing operations, contracting operations, sale or distribution of products and the operation of machinery. General liability insurance will cover you if you find yourself in a lawsuit alleging that your negligence has resulted in bodily injury, property damage and personal/reputation injury to someone else. Such lawsuits can arise while the job is ongoing or many years after is finished. Two important issues to make sure you’ve reviewed with your insurance agent: 1) the types of work you’re doing and 2) where you’re doing the work. Some insurance companies have restrictions on certain types of projects and certain out of state locations. As an example, some insurance policies for New Jersey-based contractors carry restrictions on work performed in the boroughs of New York City.
Subcontractors Insurance
Make sure your subcontractors are insured with business insurance for both commercial general liability and workers compensation. If you’re doing business with a subcontractor year after year, routinely ask for current certificates of insurance. Confirm that you’re named as an additional insured on their liability policy, and check that the limits of liability match yours. Too many contractors overlook workers compensation certificates of insurance for their subcontractors, so request a certificate of insurance for that as well. Most insurance companies consider undocumented subcontractors to be employees, and they use the amount you pay them as payroll. Since payroll plays a big factor in the cost of your workers compensation insurance, your premiums could increase dramatically if you can’t provide the documentation. Don’t find yourself in this position.
Commercial Auto Insurance
Just as you’d never go on a job without your tools, you should never drive your business vehicles without the proper insurance coverage. While many home business owners use one vehicle for both business and personal use, you’ll want to talk to your insurance agent about this mixed use. Your personal auto policy may not cover your business risk. Insuring all of your personal vehicles through your business can also carry significant risks, so be sure to review that with your insurance agent as well.
Workers Compensation Insurance
Unless you’re a one-man operation (and even then it may still be required), you need workers compensation insurance. New Jersey state law requires you to carry workers compensation insurance (WC) for your employees, and regulates WC benefits within the contractor-subcontractor relationship. Employees of a subcontractor must be provided WC benefits if an injury occurs on the job. Benefits will be paid either by the insurance for the injured employee's direct employer (the subcontractor) or the insurance for the contractor that hired the subcontractor. The good news is that workers compensation insurance also protects your business against lawsuits due to employment related injuries or illnesses.
Builder’s Risk
This form of property insurance protects against the loss of material and labor costs during construction. In addition to insuring the materials and labor already incorporated into the building, builders’ risk insurance covers the cost of materials stored on site that are damaged or lost due to most circumstances outside your control. A separate policy typically covers loss due to theft.

Even if you operate under the most professional standards and provide the highest quality service, a client can perceive that you did them wrong. Are you protected with contractor insurance? New Jersey insurance agents at Sharer and Associates Inc can help you learn what all successful business owners know about business owners insurance, commercial general liability insurance, and workers compensation insurance.

Winter Driving Safety

Tue, 20 Dec 2011 17:22:00 GMT

When the weather outside is frightful, the roads can be terrifying. Depending on where you live, winter can bring along a barrage of snow, sleet and ice, which make for some seriously unsafe driving conditions. The best way to stay safe from slick roads is to stay off of them. But if you can’t, here are some winter driving safety tips to keep in mind before you get behind the wheel.

Safe Winter Driving Tips

When it comes to winter weather safety tips, preparation is key.

Do a car maintenance check

The Insurance Information Institute (III) says having a well-maintained vehicle is one of the first crucial winter driving tips.

- Make sure the tread on your tires is in good shape and the tire pressure meets manufacturer’s recommendations

- Check your brakes, battery, hoses, defroster/heater

- Make sure your windshield wipers are in good condition and your fluid reservoirs are full

- Keep gas tank at least half full

Carry a winter emergency kit

Stash a small shovel, rock salt, ice scraper, snowbrush, flashlight, blanket, first aid kit and jumper cables in your trunk all winter long

Drive with headlights on

While you may be driving in daytime, headlights do wonders for helping you see and be seen. Some people aren’t privy to winter driving tips, so anything you can do proactively will help everyone on the road.

Clear snow and ice from your vehicle

You’ve probably been stuck behind someone who didn’t bother to clear the snow off their roof and ends up leaving a trail of blizzard-like conditions behind them. Don’t be one of them. Clear snow and ice from windows, lights, mirrors and roof before you get on the road.

Manage your time

When going out for a drive in the winter, leave adequate time for your travels and make sure your cell phone is completely charged. Depending on where you are traveling, consider taking along tire chains, which will help you better navigate the dangerous road conditions.

Protect teen drivers

New drivers need extra help when it comes to winter driving safety. Make sure teen motorists are exposed to the snow and ice driving experience before they go out on their own. Practice with them in a safe environment like an empty parking lot.

Still have questions? You’re not alone. According to NJ insurance agency Sharer and Associates, motorists often ask the following questions regarding safe winter driving tips:

Do snow tires make a difference?

Absolutely. Putting snow tires on your vehicle could very well be the single most important recommendation for winter driving safety. Not only will they help your vehicle perform better in snowy conditions, they will transform a rear wheel drive car into a veritable snow mobile that stops, corners and changes lanes without the back end sliding. Typically lasting about three seasons, snow tires usually cost less than an insurance deductible, and using them will help your summer tires last longer. In fact, your local repair shop will likely store your summer tires for you over the winter months!

What should I do if my car starts skidding on a slippery road?
First off, go a slower speed on winter roads. If your vehicle begins to skid, look where you want your car to go, not where you are heading, and turn your steering wheel toward that area. Don’t over-steer your vehicle.

What is the best way to drive uphill in wintery weather?
While you should drive slower in winter weather, it’s easy to get stuck spinning your wheels on a hill when you drive too slowly. Maintaining momentum is key. Approach the hill with enough speed, and keep light and balanced pressure on the gas pedal. Once you reach the top of the hill, slow your speed and descend as slowly as possible.

Do I need additional insurance for winter?
No extra insurance is required for the winter months. Quality car insurance covers you all year round. However, winter safety tips include making sure your policy has "Loss of use" coverage so you can get a rental car if you get into an accident.

Protection and defensive driving techniques are crucial to winter driving safety. Before you hit the road this winter, be sure to follow the winter weather safety tips above. No matter how old you are when you are behind the wheel, the unexpected can happen in a split second. Knowing the facts about safe winter driving can help prevent an accident.

Storm Damage? Home Renovation? Hiring a Contractor? Check Their Insurance

Fri, 09 Dec 2011 02:17:00 GMT

You’ve figured out how to find a contractor. You’ve gotten multiple bids, and scrubbed references and referrals, but did you check for contractors insurance? Maybe not. So, why bother?

When hiring a contractor, it is very important that you check their insurance and how it extends to employees or potential sub-contractors. If the contractor doesn’t have adequate insurance protection and one of the workers gets injured on the job at your house, they could end up suing you and you might be held responsible.

Looking for Contractors? Here Are Some Tips and Questions to Ask a Contractor

Protect yourself. Only hire licensed contractors. And don’t take their word… perform a contractor license check by asking to see the insurance policy so you can make sure that it’s up to date and that the limits are adequate. It’s absolutely acceptable to ask for an insurance certificate (or binder) from your contractor. The contractor and his/her insurance agent should happily provide it. The problem is that not many people are aware of this right to see their contractor’s policy when they have questions for contractors, and therefore don’t ask for it. Any hesitation, delay or pushback from the contractor about providing a binder is a red flag signaling problems with their coverage. To further protect yourself, you should request to be added to the contractor’s policy as an additional insured for the duration of the project.

Okay, now you have the policy. What do you look for? Following are the three key coverages in a contractor’s insurance policy:

- Worker’s Comp:	Applies when an employee or sub-contractor gets injured on the job site. Worker’s Comp covers medical/ rehabilitation expenses and lost wages for the worker. If the contractor’s limits are not adequate, an injured worker may sue you
- General Liability	: Covers negligence on the contractor’s part, which causes injury or property damage to others
- Builder’s Risk:	For new, ground up construction, this coverage applies to damage to your home and materials, including materials that haven’t been installed yet. The amount of this coverage can/should be increased as the project progresses, for example once the first floor is finished and the second floor begun.

When you’re looking for contractors, it’s always a good idea to call the insurance company or agent listed on the binder to verify that the coverage is current and in effect.

During the contractor license check, you should also confirm your contractor’s licensing status with the New Jersey State Labor & Industries Department. All home improvement contractors must register with the state of NJ via the Home Improvement Contractor’s Registration Act & Home Improvement Contractor Regulations. This requires home improvement contractors to register their business with the state so their insurance coverage and any complaints against them can be monitored.

Contact the State Division of Consumer Affairs at 973-273-8090 to confirm the person is a registered home improvement contractor. And most important, if you feel you have been cheated or scammed by a business, you can file a complaint with the State Division of Consumer Affairs online or by calling 1-800-242-5846.

If you need further information regarding how to find a contractor, or would like suggested questions for contractors, contact your local insurance company.

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Save Money on a Cracked Windshield

Wed, 07 Dec 2011 20:12:00 GMT

NJ Comprehensive Insurance Covers Broken Glass

It’s likely to happen at some point in your driving career. A rock gets kicked up by someone else’s tire on the highway, and CRACK! It hits your windshield. Pretty unfair, right?

It’s actually a very common occurrence. On average, 13-14 million windshields* are replaced each year. And a recent windshield damage study** found that stressors like extreme temperatures, driving and fatigue will cause existing windshield chips and cracks to spread quickly.

Once you’ve gotten over the shock of a stone flying toward you at 50 miles per hour, you’ll probably start worrying about how to pay for the damage. “Will my insurance cover the cost? Is there such a thing as auto glass insurance, and if so, do I have it?” Unlike other states, New Jersey does not offer a separate glass coverage deductible. All auto glass related claims are handled through the comprehensive coverage portion of your auto policy. But the full answer depends on a few key points related to the coverage you purchased. Here’s the rundown on what you need to know with regard to auto glass claims.

What is comprehensive insurance?
Subject to your deductible, comprehensive insurance covers you against "non-collision" car damage including fire, vandalism, theft and animal strike. In New Jersey, chipped, cracked and broken glass is also covered. That means your local insurance company can provide auto glass insurance coverage if you carry comprehensive insurance.

Should I file an auto glass claim?

Before filing an auto glass insurance claim under the comprehensive coverage on your policy, you should first consider if the damage can be repaired or if the auto glass must be replaced. Many insurance companies will pay to have certain windshield chips repaired at no cost to the insured. If the auto glass must be replaced, you should compare the replacement cost with the amount of your comprehensive insurance deductible. For example, if you have a $1,000 deductible and the estimated replacement cost is $750, it’s not worth filing a claim as the deductible is more than the cost of the windshield. New Jersey insurance company Sharer and Associates suggest that you contact your professional insurance agent to discuss your options and your coverages before filing a claim.

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*Stat Info from http://www.carwindshields.info/
** Stat info from http://www.safelite.com/Official20Effect20ofStressesonAutoGlassStudy.pdf

How To Find the Best Insurance Agents

Sun, 09 Oct 2011 15:14:00 GMT

Protection. It’s what helps make your life stable. And if you’re not protecting yourself based on the advice of professional insurance agents, you’re taking a risk. Think about it. You trust your health to your family doctor. You rely on your real estate broker to find you the best home. You believe your car salesperson is putting you behind the wheel of a safe automobile. So, given all that you have to protect, your home, your auto, your life, your family, shouldn’t you have a knowledgeable insurance professional to advise you?

The best insurance agents will get to know you and your situation. They will make coverage recommendations based on their knowledge. Sure, we’re all tempted to go for the cheapest coverage available. You know… those sweet-talking, 1-800-do-it-yourselfers with low-cost promises. This is your future and the future of your family at stake. You deserve the quality advice provided by a professional. And the best insurance coverage for your money.

The Personal Touch and Service Advantage
Unlike large impersonal call centers where you rarely speak to the same person twice, you have a personal relationship with professional insurance advisors at independent agencies. They will know you by name, learn your history and tailor a policy that best meets your needs and the needs of your family. When your situation changes or when you have questions, you have someone to call who can advise you. It’s a personal touch that isn’t offered by those bigger companies. By working with an agent to coordinate all your policies, you can be sure you are adequately covered and not paying for any unnecessary coverage. You can expect personal attention and customized services like annual coverage reviews that will address your ever-changing needs and keep your policies up to date. After all, life can change at the drop of a hat.

Save Time & Money
Professional insurance agents will advise you and eliminate the guesswork on coverage choices and claims questions. When it comes to settling a claim or changing your coverage options, you’ll find that having someone there to advise you is better - saving you time, money and headaches in the long run. And unlike other insurance companies that tout saving you money in 15 minutes, your agent will actually take the time to consider your needs and lifestyle before making any recommendations. The fact is that 15 minutes is often only enough time to reduce your coverage and increase your risk.

Knowledge
Sometimes the claims process can be frustrating, but having someone experienced and knowledgeable by your side can give you peace of mind. If you’re wondering how to get an agent, first you want to choose one who is a knowledgeable professional. As you know, there are infinite combinations of insurance options available to you. Insurance agents are state-licensed and must adhere to state-regulated continuing education requirements. They can help narrow down exactly what you need and what amount of coverage is best for your situation. Whatever trauma led you to the claims stage was no doubt stressful enough. Your agent will know how to avoid the “red tape,” making headway through it quickly and efficiently.

Reputation
Reputation and stability are important in insurance. Insurance agents backed by a reputable, well-established insurance company will give you the assurance of reliability and excellent service. They’re more likely to be there when you need them. After all, the more resources and support insurance advisors can draw from, the better they will be able to work for you. And word of mouth goes a long way when you’re figuring out how to find an agent. Ask around or research company and agent reviews online to get a good idea of whom you’re dealing with.

Are You Prepared for a Car Accident?

Tue, 04 Oct 2011 16:07:00 GMT

You’re out for a Sunday drive. Windows down. Breathing in the crisp fall air. Soaking up the sun’s rays. You arrive at a four-way stop. As always, you come to a complete stop, look left, right and left again. You ease off the break and start rolling forward. CRASH! A massive SUV clips the rear of your sedan sending you off the road in a tailspin. You finally stop, take a deep breath and think to yourself, “My first car accident! I don’t know what to do in a car accident. What now?!”

Before you get behind the wheel, you need to be prepared for the unexpected. Motor vehicle accidents happen every moment of every day. Are you up on car accident law and car accident insurance claims? Do you know what to do if someone is injured? If you’ve never been in one, you probably don’t know what to do after a car accident. Here are the top five Dos and Don’ts.

What to Do After an Auto Accident (and What Not to Do Too!)

Don’t

Survey the situation, and call 911 if anyone is injured.

Don’t panic.

Don’t

Contact the police and have them fill out a report.

Don’t share personal info or insurance info with anyone but the police officer.

Don’t

Get witnesses and leave the cars where they are.

Don’t leave the scene of the accident.

Don’t

Limit discussion of the accident to only police officers or your insurance agent.

Don’t discuss fault or liability at the scene.

Don’t

Report both major and minor motor vehicle accidents to your insurance agent.

Don’t forget to review insurance coverage, next steps and auto accidents claims.

What Can You Do Before an Auto Accident? Prepare!

Now that you know what to do, car accident preparation should be your next step. Keep up-to-date insurance papers, a pen, paper in your car at all times. For the ultimate in preparation, get your hands on a nifty auto accident report folder. Contact our agency for your Auto Accident Report Folder. You can never be too prepared.

Landlords Need Liability Protection

Tue, 04 Oct 2011 15:55:00 GMT

As a landlord, you may try your hardest to only rent your property to trustworthy and responsible tenants, but accidents can happen regardless of precautions taken to avoid them. A pet can bite the delivery person, a leaky roof can cause a slip and fall, or a party can leave damage in its wake. From major to minor accidents, landlord building insurance is the only solution to protect yourself from a hefty bill or worse, a lawsuit.

If you’re a responsible rental property owner, you probably already have landlord liability insurance. But are you fully covered? When it comes to landlord liability, are you leaving yourself exposed to avoidable risks?

Know the Risks

Beware…Personally owned properties put your personal assets at risk. If you find yourself in the midst of a legal claim, your savings, your equity in a business or other property, even a portion of your future earnings can be taken to pay for it. And if you have a partner, you’re at risk for the entire amount of the claim regardless of your partnership “percentage.” While you may be thinking that your landlord protection insurance would cover you if you end up forced to pay a lawsuit award, the fact is, it just may not be enough. The dollar limit of your policy can leave your personal assets exposed to the uncovered portion of that award.

Limit the Risks

One of the best and most cost-effective ways to reduce the landlord liability risks of rental properties is to form a limited liability company (LLC), corporation or other limited liability entity to hold your property. According to Michael Gutman, an experienced business and property attorney, “When you hold property as a sole proprietor or in a general partnership, you’re dealing with risks each and every day. And eventually, you’re going to find yourself in trouble.”

Can You Require Tenants Liability Insurance?

You absolutely can make tenants liability insurance a condition of the lease. When it comes to protecting yourself and tenant, it’s really a win-win. Many tenants don’t realize that the landlord building insurance only protects the physical building not personal losses. If your tenant’s home is burglarized or vandalized, you run the risk of losing a good renter who can’t afford the rent after replacing their belongings. And you also run the risk of wasted time and money in small claims court if they try to recoup their losses. There’s no doubt about it, tenants liability insurance can be a lifesaver.

“Not only can landlords insist that tenants maintain various types of insurance coverage, they can require those policies to cover the landlord, said Michael Gutman. “A thorough lease agreement and appropriate insurance coverage will best serve the interests of both the landlord and the tenant.”

Your Tenant, Your Lawsuit

The actions (or inactions) of your tenants can put you in the middle of a lawsuit. It’s quite common for a tenant to simply not communicate issues going on with the rental property. Other times, an innocent situation can lead to injury. Like a sprinkler near the sidewalk tripping a walker-by. You could be held liable if that walker-by gets injured, even if it wasn’t your sprinkler. Or let’s say your tenant snuck in a pet in spite of a no-pet clause in the lease. You’re also responsible for any harm that pet causes to other tenants or guests. But there is a fine line between tenant liability and landlord liability.

According to Michael Gutman, “Victims tend to sue everybody to protect themselves. It’s imperative for a landlord to have the appropriate coverage because a trial can result in significant legal fees.”

Reach Out to Your Insurance Agent

Don’t assume you’re protected just because you purchased a landlord liability insurance policy. Speak to your insurance agent, go over the landlord building insurance coverage line by line and make certain you’re getting the best level of protection for the best price.

Is Student Property Insurance Necessary?

Tue, 19 Jul 2011 23:44:00 GMT

Teenagers are living in a brand new world. A world where personal computers, cell phones and other valuable items are attained at a very early age. And all of these pricey valuables are heading off to college with them. In this new digital world where theft has become one of the largest crimes on college campuses, you have to be proactive in protecting yourself and your stuff. That means getting your hands on some quality college property insurance.

Unfortunately, many parents are misled to think their homeowners insurance will cover the losses of their college-bound children. While it’s imperative that you do your homework and check the provisions of your policy, chances are your child won’t be adequately protected unless you have coverage for personal possessions. That means any personal belongings in a dorm, fraternity/sorority house or apartment are at risk.

College Property Insurance Minimizes the Risk

There are far too many broke and needy college students who will find themselves tempted to get their hands on your shiny new Wii gaming system. And when a party’s hopping and the lights are low, they’ll have their chance to snag it. Studies show students in dorms, fraternity/sorority houses, and college apartments are at high risk, especially with those expensive electronics and sporting goods. But when you have student property insurance, you may be able to have it replaced without using a cent of your own money.

Where Do You Fit In?

If you’re living in a dorm or in on-campus housing, personal property is likely covered through your parents’ homeowner insurance policy (typically for up to 10% of your personal property coverage). But before you go putting in that claim, think about this:

Big or small, a claim is a claim when it comes to property insurance. If you lose your laptop, it can count against you just as much as if your house burns down. Either one can place surcharges on your policy, which leads to an increased premium. Even worse, the more claims you make, the more likely your policy won’t be renewed.

Your deductible will be higher… up to $750 or $1000.

See if the school carries plans to insure student property. With lower deductibles and a streamlined claims process, your rates and eligibility won’t be at risk.

When it comes to off-campus living, property insurance policies may not cover personal property. While many people assume the landlord’s policy covers any losses, that’s not the case. Only the physical building is covered. And since burglary, theft and vandalism can occur at any moment in your rented home, you’ll want to consider some form of personal property protection. And that protection is renters insurance.

What is Renters Insurance?

If your personal property is lost, stolen or destroyed, Instead of losing thousands of dollars to replace them on your own, renters insurance can pick up the cost of these items. Depending on where you live, off-campus housing renters insurance rates can be obtained for around 50 cents a day or less.

TEXTING TO DEATH

Tue, 19 Jul 2011 23:40:00 GMT

A recently released study by the Virginia Tech Transportation Institute (VTTI) said that a driver’s risk of collision is 23 times greater when they are texting. Distracted driving has been the cause of thousands of accidents and many deaths. In fact, texting while driving kills nearly 6000 people every year in the US alone according to the National Highway Traffic Safety Authority. Here are some of the horror stories:

A Boston trolley car driver crashed while he was texting his girlfriend.
Five Rochester NY classmates died less than one week after graduation because the driver was texting.
A 22-year-old woman ran into a stationary emergency vehicle with its lights flashing while sending a text.
A Seattle man caused a multi-car pile-up on an interstate by taking a quick second to scan his email.
A California mother lost her 2-year-old child when an 18-year-old student who was texting and driving hit the pair as they were walking through a crosswalk.
A New Jersey couple each lost a leg when a texting driver struck their motorcycleBottom of Form.

DON’T BE THE NEXT HORROR STORY

While New Jersey is amongst 34 states in which text messaging while driving is banned, a Fairleigh Dickinson-PublicMind poll on New Jersey driving habits found motorists who admit to texting while driving jumped 40 percent from 2008 to 2009. The poll, co-sponsored by the New Jersey Division of Highway Safety, also found one out of five drivers has sent a text while operating a vehicle. This trend has to stop.

A recent scientific study based on National Highway Traffic Safety Administration and FCC data showed that about 16,000 people died in the U.S. between 2001 and 2007 as a result distracted driving from mobile phone use. More recently, the U.S. Department of Transportation reported that nearly 5,500 people died in crashes involving a distracted driver in 2009. And the National Safety Council estimates that each year, 100,000 car crashes have been tied to texting and driving while an additional 1.2 million annual accidents involve cell phone use.

What You Should Consider & What You Can Do

Keep your eyes on the road. Reading or sending a text takes your eyes off the road for an average of five seconds. When you’re driving 50-60mph, that’s the equivalent of driving the length of a football field with your eyes shut!

Just pull over. Chances are, your phone call or text can wait. If you absolutely must communicate with someone, pull over or go to the next rest stop.
Don’t rely on headsets. While you may using a headset is a solution, it isn’t really safer than operating a hand-held. You’re still answering and dialing, causing your eyes to be off the road. That means distracted driving.

Would you drive drunk? Hopefully not. It turns out driving while texting isn’t much worse. A recent study, A Comparison of the Cell Phone Driver and the Drunk Driver, shows that the risk of crash for driving while using a cell phone is four times that of a non-impaired driver. This turns out to be the same risk of crash for driving with a Blood Alcohol Content (BAC) of .08%. For a driver who is texting, the risk of crash is eight times that of a non-impaired driver.

CAR INSURANCE FOR TEENS

Fri, 10 Jun 2011 19:20:00 GMT

Adding my teen driver to our policy will cost me HOW MUCH?!

Parents shell out an average of more than $2,500 each year to allow their teens to drive, according to poll conducted by Harris Interactive. In fact, the National Safety Council states that teen car insurance for a girl will cause the family car insurance to likely double, and for a boy it will likely to triple (the general view is that boys are more reckless drivers than girls).

Why this spike in rates, you ask? Drivers ages 15 to 19 tend to get into more accidents than older drivers and have little driving experience. So, even if you have a clean record, your rates reflect the overall teen track record. There are ways to decrease rates on car insurance for teenagers, but buying a car for the teen and putting them on their own policy normally isn't one of them.

So how can parents of teenage drivers reduce the teenage auto insurance costs?

Saving on Teen Auto Insurance

It’s exciting when you pass the car keys over to your teenage driver. But adding insurance for teens to your policy can cause your rates to rise. Follow these tips to help keep your premiums low when dealing with auto insurance for teens and high-risk car insurance.

Drive Wisely. Teens have the physical ability to react quickly, but they may not have developed the skills to scan the road and anticipate what might happen. For those who’ve been driving for less than three years, a discount on auto insurance for teenagers is available to young drivers who’ve completed a six-hour road training course that helps you avoid distractions and drive smarter.
Be a good student. Many insurance companies offer discounts on auto insurance for teen drivers who get good grades. If you’re a full-time student under the age of 25 maintaining a B average in the most recent semester or cumulative, you can save big on teens car insurance.
Keep it in the family. Discounts earned by the adults in a household can be applied to a teen driver. You can save up to 25% on premiums with multi-car, multi-policy and financial responsibility discounts reducing the costs greatly with car insurance for teenager drivers.
Take a defensive driving course. In some situations, especially if your young driver has been involved in an accident or traffic violation, having your teen driver complete an approved defensive driver courses can be well worth the cost.
Save by Paying. Sometimes, the method of payment you use can save you money. A simple change to monthly auto pay can create savings when dealing with auto insurance for teens.