Purchase & Maintain Your Fire Extinguishers

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I was speaking with a customer earlier today about a remodel project that they have planned.  When I asked about fire extinguishers for the project, I was pleased with their rapid response that they would go out and purchase some immediately!
  According to a National Fire Protection Association study, there are approximately 400,000 house fires each year in the United States, which account for 75 percent of all structure fires. This study also indicated that residential fires result in over 3,700 deaths per year. Indeed, fires typically kill more Americans than all other natural disasters combined.
Having properly placed fire extinguishers in your home is an excellent loss control measure that targets the most common cause of property loss.  
Before purchasing fire extinguishers, learn about the different types of fire extinguishers. There are four basic types, as follows.

• Class A extinguishers put out fires in ordinary combustibles, such as wood and paper. 
• Class B extinguishers should be used on fires involving flammable liquids, such as grease, gasoline, and oil. 
• Class C extinguishers are suitable for electrically energized fires. 
• Class D extinguishers should be used on flammable metals and are typically specific for the type of metal in question. 

We all now that having fire extinguishers makes sense unfortunately, most of us buy them, hang them, and then neglect them.  It's like a Ron Popeil rotisserie commercial, "Set it and forget it!"  Unfortunately, our inaction may lead to an extinguisher's inaction as well when called upon.  So, what can we do to make sure our extinguishers are in good working order?The following are some tips concerning this important fire protection device.

• Most home fire safety experts recommend medium size, multipurpose fire extinguishers that are labeled as suitable for use on class A, class B, and class C fires. 
• A fire extinguisher should be kept in your garage, kitchen, and on each floor of your home. 
• You and other potential users in your household should thoroughly read the extinguisher's instructions on a periodic basis. 
• A professional fire equipment supplier should inspect each extinguisher annually. 

Note that prices on fire extinguishers start at around $20. Many insurers offer modest premium credits to encourage homeowners to purchase and maintain extinguishers.

Lower Your Auto Insurance Costs

Image by shainelee via FlickrI remember listening to a talk radio program on the AM dial about a year ago where the host stated that he chose not to participate in the economic recession.  Now he spends a good portion of his program showing empathy to his listeners who have been affected by the economic downturn.  No matter where we live, our neighbors are tightening their belts, spending less, and pinching their pennies.  As a father of five young children, I find myself doing the same.  Here are some ideas that may help you save money on car insurance without having to shop around.

Automobile insurance premiums often take a big bite out of a family’s budget. You may, however, be paying too much for this coverage. The following are several approaches you can use to reduce your auto insurance costs.

• Choose higher deductibles, particularly if you currently have a low collision or other-than-collision deductible, such as $100 or $250. Increasing your deductible from $250 to $500 or $1,000, for example, can reduce your collision and other-than-collision premium by 15 to 35 percent.
• Eliminate collision and other-than-collision coverage on older, less valuable cars. If your car is worth less than $1,500, it may be wiser and cheaper in the long run to just retain this physical damage exposure. Used car valuations are available online at Kelley Blue Book.
• Maintain an excellent credit record, since insurance companies are increasingly using credit scores to price auto insurance policies. Consumers with poor credit often pay more for auto insurance. 
• Buy a “low-profile” automobile. Before you purchase a new or used car, check into the auto insurance costs. Automobile models that are expensive to maintain and have higher theft and collision frequency rates tend to have higher insurance costs. 
• Take advantage of multipolicy discounts by keeping your homeowners and auto policy with one insurer. Likewise, take advantage of multicar discounts by having all autos on one insurance policy.
• Seek out other auto insurance discounts (which can vary by state and by insurance company), such as defensive driving, good student, low-mileage auto, alcohol awareness training, air bags, antilock brakes, claim-free experience, and long-term customer. 

Is Your Flood Insurance Ending?

I returned to work today from a long family vacation.  During the course of our journeys we had the opportunity to drive on Highway 2 near Nebraska City, where one lane of the road was underwater due to flooding of the Missouri river.  We later had to detour because on highway 136 near Alexandria, Missouri, because the the road leading Keokuk, and  a bridge over the Mississippi river, was under water.  While these areas are prone to flooding and it makes obvious sense to buy flood insurance, other places aren't so obvious, yet FEMA, with flood mapping help from the US Army Corps of Engineers and others, places many housing tracts in 100 year flood plains, thus requiring homeowners with mortgages to purchase flood insurance.  Wise property owners with buildings in flood plains will purchase this same insurance whether or not they have a mortgage.
I witnessed the destruction of flooding earlier this year when a flood hit my hometown of Genesee, ID in January 2010 due to frozen ground, melting snow, and heavy rains.  If you think a flood can't happen to you, think again.

One of the brokers that I utilize recently sent me an e-mail stating that State Farm Mutual has announced that effective October 1, 2010 they are getting out of the National Flood Insurance Program business.  This means that hundreds of thousands of insureds will need to find a new company for their flood insurance.  Do you have flood insurance with State Farm Mutual?  If so, please allow me to serve you and place your flood insurance with one of our flood insurance companies.

How do you do this?  Give me a call at my Clarkston, WA office; (509) 758-5529 or e-mail me.  I will ask you for a copy of your declarations page, the year the home or building was constructed, and its replacement cost value.

It really is that simple.  I look forward to serving you!

REDUCE YOUR EXPOSURE TO HOME BURGLARIES

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U.S. residences were burglarized more than 1.5 million times in 2008, according to the latest FBI studies. Nearly 65 percent of the thefts occur during the day because people are often not at home during the weekday. Proper home theft prevention ideas and techniques, however, can reduce the odds of a home burglary. Consider the following loss control techniques to reduce your chances of suffering a home burglary.

• Invest in a burglar alarm with a central monitoring station. Research indicates that homes without security systems are about three times more likely to be broken into than homes with security systems. If a burglar is aware that a home has an alarm, he or she is more likely to avoid that home.
• Property identification programs are another deterrent to burglary. Many of these programs involve the use of stickers on which your driver's license number is imprinted. These are then placed (and become permanently imprinted) on all valuable personal property, such as stereos, televisions, and computers. This makes it more difficult for burglars to fence or pawn the property.
• Safeguarding dwelling components such as doors and windows make it tougher for burglars to enter the home. Many home security experts recommend all exterior doors be 1 3/4-inch thick solid wood, metal, or composite material. Strike plates on door jams are typically installed with 1/2-inch screws; however, these should be replaced with 3-inch long screws so that locked doors cannot be kicked in easily. Doors should also have deadbolt locks, with at least a 1-inch throw and a reinforced strike plate with 3-inch screws.
• Exterior lights with a motion-sensing switch should be installed; timers on lights are also recommended.
• Keep your garage door secure and locked even while you are home. 

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2010
International Risk Management Institute, Inc.

ARE YOU SMARTER THAN AN IDAHOAN?

Idahoans and Wisconsonites may take some occasional ribbing from folks in other states, but they top the list when it comes to smart drivers.  And while people may talk with disdain about Utah drivers, the lowest test scores came from the Northeast.  Read more about the smartest drivers here: http://bit.ly/9poyto

So does this list coincide with where the safest drivers are?  Yes and no.  Many of the smarter states lead the safer states list, but not all.  The safest drivers come from the Midwest, this according to Allstate.  http://bit.ly/1D44QR   ...and yes, that is Boise Idaho, coming in at number 9.

NEED FLOOD INSURANCE TODAY? SENATE SAYS, NO WAY!

For the fourth time, the US Senate has let the funding for flood insurance lapse.  What does this mean for the economy?    Basically it puts a halt to any loans that are in process, where the loan collateral is in a flood zone requiring flood insurance.  You can read more about the lack of funding here: http://bit.ly/dAQhu5

Why is it so hard to fund the National Flood Insurance Program?  The answer is political and probably better left off this blog!

So what can you do if you need flood insurance now?  Unfortunately, not much!  You can wait until the Senate reconvenes and decides to fund flood insurance or you can try to convince your mortgage broker to accept one of the alternative flood insurance offerings available through Lloyds of London or other brokerage houses only available to those who live in some states.

Frustrated?  Call your Senators through the US Capitol Switchboard: (202) 224-3121 and let them know.
 

KEEP YOUR DIRECTORS & OFFICERS COVERED

A recent increase in corporate bankruptcies has brought a new awareness to the quality of Directors & Officers (D&O) Insurance coverage.  D&O insurance was created to provide coverage for individual directors and officers to help companies attract and retain talented board members.  However, over time it has evolved to include coverage for the entity itself.  D&O coverage is now purchased by non-profit and for-profit corporations alike and typically provides three basic types of coverage:

• Side A -   This coverage provides protection for board members and executives where the underlying claim is non-indemnifiable.
• Side B - Provides coverage for the company as it indemnifies named directors and officers.
• Side C - Grants coverage for the company for claims brought directly against it, such as securities law claims.

Unfortunately, many D&O policies do not provide separate limits of coverage for the different sides, so all claims are paid from the same limit.  Who does this leave without coverage, all too frequently, it is the actual directors and officers on the board of directors who are left over once the limits of coverage have been exhausted.

How can this be prevented? Among other solutions, always make sure that Side A coverage has its own separate limit.  This way, once the entity has exhausted its own limits, Side B and/or Side C,  it cannot reach across and take the limits from the directors and officers.  Another plus is that the the deductible or retention can usually be much lower on Side A coverage too!

For a great article on how bankruptcies can hijack your D&O coverage and other ways to protect yourself, check out this article from American Agent & Broker magazine.  http://bit.ly/acj5T1

TAKE ACTIVE STEPS TO REDUCE YOUR WATER DAMAGE LOSSES

Living in Northern Idaho, flash flooding never crossed my mind.  ...not until January 2010.  We had endured many days of sub zero temperatures followed by heavy snowfall.  A sudden warm front moved through, bringing with it heavy rains.  The combination of warm air and rain turned all the snow to water, water that couldn't seep into the still-frozen ground!  I worked till late into the night helping my friends sandbag to protect their properties.  This picture was shot the next day after much of the water had receded and is a great example of the wicking properties of T-111 siding.  As far as I know, this was the only home to sustain significant damage. 

Water damage from naturally occurring floods and mechanical breakdowns cause extensive and catastrophic losses to homes every year. But there are numerous ways you can safeguard your home from these losses, including the following.

• Your home's drainage system should be checked to verify that proper water drainage occurs. For example, gutter downspouts should extend the proper distance from the foundation.
• Your yard should be properly graded to slope away from your home to allow surface water to adequately drain. French drains can also assist in this process.
• A sump pump system should be considered in your basement to keep unwanted water out of this vulnerable part of your home.
• Periodically check your washing machine hoses since these hose failures cause millions of dollars of water losses each year. Hoses should be replaced at the first sign of wear. Consider upgrading to the heavy-duty wire mesh hoses or stainless steel hoses during this replacement.
• Ascertain the location of your main water shutoff valve. Water shut-off valves should be installed on water lines under toilets and sinks and water lines leading to outside faucets.

Get more personal lines insurance and risk management tips and ideas from IRMI.

PROPERTY INSURANCE AND THE BLACK HOLE OF HYPERINFLATION

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Listening to the experts, it sounds like most financial analysts agree that when the economy does begin to recover, inflation will probably be significantly higher than what we’ve seen in the past.  This hyperinflation can have a tremendous impact on insurance claims.  In the event of a property loss, depending on how the policy is written, if a property is significantly underinsured, the insured party will not receive replacement cost value, rather the depreciated value of the property minus the underinsured portion.  This could result in people only receiving pennies on the dollar at the time of loss.

Although you can schedule an annual increase in property insurance coverage (I see most at 4%), this solution is inadequate for periods of exponential inflation.  So what can you do?  Write letters to you insurance carriers suggesting that they develop a solution.  

Although there is currently no great solution, I thought this worth mentioning so that you can draw upon it if the future brings a period of hyperinflation.

$$$ WHERE DO HEALTH CARE DOLLARS GO? $$$

I attended a luncheon last week with a fantastic guest speaker, Scott Kreiling, President of Regence Blue Shield of Idaho.  He shared some fantastic information regarding healthcare costs.  I will try to disseminate it here and share some links to their web site where additional information can be obtained.

...and here is another chart from their website:

Although this information is interesting, it gets even better.  The folks at Regence have established an education plan to help us realize where the real cost of insurance comes from, http://www.whatstherealcost.org/ and they share steps that we can take to personally reduce the overall cost of health insurance.  www.regence.com/industry/what-drives-up-health-care-costs.jsp#

Regence also provides a website for their customers to help them set healthy goals and accomplish them.  www.MyRegence.com

Purchase Proper Watercraft Coverage for Your New Boat

Spring is often the time of year when boat lovers start to consider purchasing a sailboat or powerboat. Many people, however, are unaware of the significant loss exposures associated with boat ownership, and some people mistakenly believe that there is coverage available under their personal auto policy (PAP). Virtually all PAPs, though, do not provide any liability or physical damage coverage for boats. Other people may look to their homeowners policy for coverage. But most homeowners policies only cover losses arising from certain low-valued or low-powered boats. You should thus contact us before buying a boat to discuss the proper insurance protection for it. Consider the following tips to assist you in this process.

• If you purchase a boat valued over $1,500, you probably lack proper coverage under your homeowners policy for physical damage losses to the boat itself. A separate watercraft or boatowners policy is necessary to cover the physical damage to boats over this value. 
• If you are considering the purchase of a sailboat, inquire about its length. If the length is 26 feet or more, there is no liability coverage under your homeowners policy. For motorboats, there are severe horsepower restrictions under the homeowners policy for liability coverage. For example, only insureds who own or lease boats with outboard motors of 25 horsepower or less have liability coverage under most homeowners policies. Yet most powerboats have motors with horsepower far exceeding this amount. This liability coverage restriction also necessitates the purchase of separate watercraft insurance. 
• Ask us about the types of boats you are considering. Some insurance companies, for example, decline to insure personal watercraft such as jet skis and wave runners, since some of these crafts can reach speeds of 60 mph. According to the U.S. Coast Guard, personal watercraft account for a disproportionately high number of accidents. Many insurance companies also refuse to cover houseboats, homemade or kit boats, competition bass boats, and speedboats. You may have to pay a steep premium through a specialty insurance company to insure these types of craft. 
• Be wary of purchasing older watercraft. Many insurance companies reject boats over 15 or 20 years of age because they experience a higher loss frequency than newer boats. You may have trouble finding insurance coverage for older boats or end up paying an extremely high premium. 
• If you do purchase an older boat, consider ordering a marine survey or inspection of it prior to the sale. Marine surveys point out deficiencies in watercraft that may cause you to reconsider the purchase or renegotiate its price. 
• If you don't already have one, procure a personal umbrella policy in addition to a watercraft policy, particularly if you purchase a speedboat, a boat designed for water skiing, or some other craft with a higher potential to cause damage or loss of life. Umbrella policies are relatively inexpensive, and since most forms do not have limitations with respect to watercraft, they will provide excess limits above the liability coverage in the watercraft policy. In addition, the watercraft liability limits should meet the underlying limits requirements of any applicable personal umbrella policy. Lastly, you should use the same insurance company that writes your homeowners and personal auto policies for your personal umbrella policy. 

DECREASING HOME VALUES - I CAN INSURE MY HOME FOR LESS, RIGHT? -WRONG!

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Economies are always changing and home values fluctuate with them.  During the past couple of years, many homes have decreased in value.  Looking for the bright side, I am now asked by optimists if they can insure their homes for less.  After all, this makes sense, right?

No way!

Remember that most home insurance pays for your home to be rebuilt just as it was.  While home values have been decreasing, the cost of construction has continued to rise.  (Could this be due to continued low interest rates?)

The key thing to remember here is: Your limit of property insurance should be based on the cost to replace it, not the current resale value.

To read a great article on this topic, click  here.

BEST DOGS FOR HOME INSURANCE

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I received information from Travelers Insurance today about dogs.  They say that the top five dogs to own (for insurance purposes) are:

• Shih Tzu
• Poodle
• Dachshund
• Bulldog
• Boxer

Here are some additional dog facts:

An American has a one in fifty change of being bitten by a dog each year.
Approx. 800,000 dog bite victims (1 in every 6) require medical attention annually in the US.
Industry-wide, over 1/3 of homeowners's liability claims come from dog bites
The average cost of a dog bite claim was $24,461 in 2008

Your insurance agent should remember to ask about dogs or pets in the household and review your insurance company's list of ineligible breeds in their eligibility guidelines.

You can read more about risk management with dogs in a previous posting, TAKE STEPS TO PREVENT DOG BITES.

DO I REALLY NEED TO INSURE HIRED & NON-OWNED AUTOS?

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Hired and Non-Owned Auto coverage is a type of insurance often overlooked by businesses, especially companies that don't have insured vehicles.  However this coverage is cheap, and neglecting to add it to your policy before a car accident can be very costly.  Ask yourself the following questions:

1. Might any of your employees run errands or make deliveries for the business using their own autos?
2. Is there a chance that you might borrow an employee's vehicle for any reason?
3. If you are unavailable (or on vacation) will an employee use their vehicle to run errands , make bank deposits, or anything else?
4. Do you foresee a need to rent a vehicle for business purposes?  (I saw my local FedEx guy driving a rented Budget truck today)
5. Will you ever pay someone to drive their vehicle for your business?

If you answered yes to any of these questions, then you need Non-Owned and Hired Auto Insurance.

For a really great article on Lessons Learned from Non-Owned and Hired Auto Insurance, click Here.
For information on Driver Training and Motivation, click Here.
For information on Driver Eligibility Criteria, click Here.  (This links to driver criteria for Philadelphia Insurance)

BUILDING, RENOVATING, REMODELING AND RESTORING: NAVIGATING BUILDERS RISK INSURANCE

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As a risk manager for numerous property owners, I am frequently encountering situations where Builders Risk insurance would benefit my customers.  Having recently left the world of normal people to enter the realm of insurance and risk management, I can still remember how confusing insurance can be.  Hopefully this will help someone to navigate the waters of Builder's Risk insurance.

For anyone who has ever decided to build, renovate, remodel, or restore a building, Builder's Risk insurance is generally a requirement of the loan.  However, even those who are working with their own funds can benefit from purchasing a Builder's Risk policy.

Here are some things that you can put together to help your agent provide you with the best Builders Risk coverage.

1. Projected Costs:  Maintaining a list of cost estimates and keeping your insurance agent updated as these costs change can help you ensure adequate coverage.
2. Project Details:  In providing detailed information, you can provide will help you agent "sell" the project to an underwriter.  Not only will it help you communicate better with your agent, it may help the underwriter conceptualize the project.  Underwriters are more likely to discount premiums when they understand what they are insuring.
3. Contracts:  Contracts frequently require certain limits of insurance.  In giving your agent complete copies of all contracts involved with a project, they will be able to provide you with appropriate insurance solutions.
4. Projected Dates:  It is paramount that your insurance agent is kept informed of projected start and end dates.  Shopping your insurance can take time and good agents will utilize that time to provide you with a combination of the best coverage and pricing.  Keeping them informed of your projected starting and completion dates will help them stay on track.
5. General Contractor:  Who is your general contractor?  Why did you select them?  A brief description of your general contractor and their track record can help "sell" an underwriter on your insurance and save you money.
6. Other Structures at the Site:  What other buildings or structures are at the site?  Will any of them be at risk of becoming damaged due to this project?  What is being done to protect the other structures?
7. Safety:  Provide your agent with a list of any safety precautions that have been or will be made.  Some items to consider are: lighting, fencing, and security.  Although, these features may reduce your premium, more importantly, they should reduce your stress level when the project is underway.
8. Storage of Building Materials:  Where will materials be stored before they are installed?  The basic ISO coverage for these materials only covers them if they are within 100 ft. of the scheduled location.  Additional distance from the site and additional storage locations may be added by endorsement.  What measures will be taken to prevent theft of these items?
9. Soft Costs:  When unforeseen events happen that delay the completion date of your project, additional expenses are usually incurred. These may be: additional interest charges on loans, advertising expenses, additional contractors costs, real estate taxes, consulting fees, equipment rental, premiums for extended insurance terms, refinance charges, and architectural and engineering fees.  Essentially, soft costs are all costs associated with a project except for labor and materials.

When should you shop for Builder's Risk insurance?  If possible, you should begin shopping three to four months before the projected start date.  This will allow your agent time to understand the project and to approach multiple insurance carriers, allowing them to compete for your business.  Be sure to keep your agent informed of any changes to your start date so that they can time the inception of the policy accordingly.The policy should begin when construction or demolition begins.  Once work is being performed, Builder's Risk insurance is the appropriate form of insurance.  Here's a handy flow chart to illustrate this.

When the project nears completion, make sure that your agent is ready to provide you with Property and General Liability insurance to take the place of the Builder's Risk insurance.

AM I OVERPAYING? (From: Insurance: The One Question Everyone Asks)

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“Am I overpaying?”

That’s a question that every consumer asks from time to time. Everyone is curious and concerned as to whether he or she is getting a good value for the money, whether it’s for a candy bar, a car or an airline ticket.

It’s a good question to ask about insurance, too. After all, Americans spend a lot of money on insurance for homes, autos and businesses. In 2008, American drivers spent $161 billion for personal automobile insurance, reported the A.M. Best Co., an insurance research and ratings firm.

This large market for auto insurance is highly competitive. Consumers play a large part in keeping insurance rates competitive by virtue of shopping—whether online, by telephone or on the World Wide Web. More than one of four (about 28 percent) of auto insurance buyers shopped around for car insurance in 2009, reported J.D. Power & Associates in its 2009 national auto insurance study.

But consumers aren’t the only ones shopping around for auto insurance. So too do independent insurance agents, including Trusted Choice® insurance professionals.

On average, Trusted Choice® agents provide consumers with property/casualty insurance options from eight different insurance carriers, reported the 2008 agency universe study conducted by Future One, a collaboration of the Independent Insurance Agents and Brokers of America (the Big “I”) and leading independent agency companies. For automobile insurance, those agents may compare rates and coverages at even more insurance companies, through their use of software that allows them to compare multiple policies and multiple carriers.

For auto insurance buyers, research showed that independent agents rank most highly on the most important element of customer satisfaction. The J.D. Power study measures customer satisfaction with auto insurance companies across five factors (in order of importance): interaction, policy offerings, billing and payment, price and claims. Insurers who sell their auto insurance products through agents performed “stronger in the interaction factor than do direct insurers,” reported J.D. Power.

Overall, customer satisfaction with auto insurance companies reached a five-year high in 2009, reported the J.D. Power study. The biggest improvement in satisfaction among the five factors has been in price. Interestingly, 42 percent of customers in 2009 reported that their auto insurance premiums declined without switching insurers.

Are you overpaying for auto insurance? Thanks to a competitive market that includes Trusted Choice® independent insurance agents, the answer probably is no. If you’re not sure, ask a Trusted Choice® agency to review your options.

source: TrustedChoice.com, October 2009

SAVING MONEY ON INSURANCE: CAN IT BE DONE?

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Saving Money on Insurance: How Can It Be Done?

In the throes of an economic recession, millions of consumers today are cutting back on discretionary spending—and are even tightening up on the necessities. Now is an excellent time to review your insurance coverages with your Trusted Choice® independent insurance agent to find ways to cut costs while still protecting your family or business.

The premiums paid for insurance are a tremendous value. For instance, for the cost of several hundred dollars annually, a homeowners insurance policy provides a family with the means to rebuild its home and reimbursement for the cost of temporary housing should the home be destroyed in a fire.

To consider how to cut expenses, it’s helpful to take a step back. Consider anew what insurance premiums are paying for the transfer of risk. Insurance is a unique tool that allows consumers and business owners (through a financial transaction and a legal contract) to transfer risk from the consumer or business owner to the insurance company. If you transfer less risk—either by reducing the risk overall, or retaining more of the risk yourself—the insurance carrier will charge less.

Your Trusted Choice® insurance professional can help you consider two important questions if you want to cut costs on insurance:

1. What risks might I be paying to insure that I can assume myself?

The risk profile of a family or business changes over time. It’s important to share with your Trusted Choice® agent if the family or business situation has changed recently.

One thing that changes is the financial risk a family faces as children are born and grow. Parents of newborns face a lot of financial risk, since they face 18-plus years of raising that child and, for many, paying for a college education. Life insurance is the common way to protect against the risk of a parent dying while a child is in school. Yet, when the child graduates, a parent might reduce the amount of life insurance they own—and thereby reduce the amount of premium they pay. Inform your insurance agent if these changes are occurring for you.

For homeowners insurance policies, the first place to look to trim expenses is the deductible, which is the amount of money the policyholder must pay before the insurance company starts to pay a claim. The higher the deductible, the lesser the premium will be for the policy. A consumer with a $500 homeowners deductible can save as much as 25 percent by raising it to $1,000, reports the Insurance Information Institute. A policy with a higher deductible is less likely to have claims, in part because consumers that bear more risk tend to be more careful and have fewer claims.

Auto insurance customers can ask their Trusted Choice® agent about whether they can save money on state-required PIP (personal injury protection) coverage. If you have already have health coverage, you may be able to keep only a minimum level of PIP—but it’s important to consider state requirements and whether your health insurance company will allow this.

2. Have I taken advantage of all the discounts offered?

The market for personal lines insurance is highly competitive. This has kept costs down: Homeowners/tenants insurance costs increased by about 17 percent between 1999 and 2008, compared with a 57 percent increase in the cost of repairing household items and a 50 percent increase in legal services, according to the U.S. Bureau of Labor Statistics.

Auto insurance carriers offer special programs that help consumers keep a lid on costs. Ask your Trusted Choice® agent about discounts for having a homeowners and auto policy with the same carrier; for maintaining a claim-free record for consecutive years; for low-mileage drivers; and for young drivers who keep good grades.

For older vehicles, consider dropping collision coverage. Since auto insurance claims occur about once every 11 to 12 years, it may not be cost-effective to insure a vehicle that is worth less than 10 times the collision insurance premium. (In this case, the claim reimbursement likely would not exceed the premium minus the deductible amount.)  Ask your Trusted Choice® agent what the cash value of your older vehicle is, to help you decide.

One caution: The slump in housing prices has tempted some consumers to cut the amount of insurance on their homes, but that’s a trap. Homeowners insurance should be based on replacement cost, not market value, and many homeowners are already underinsured. Replacement costs continue to grow steadily, year after year, regardless of market values. Your Trusted Choice®  agent can help you determine the proper amount of homeowners insurance for you.

Finally, your Trusted Choice® agent also can help by shopping your insurance needs to a number of insurance carriers. If you haven’t done so in three years, now is a good time to ask if your policies can be reviewed to make sure your pricing is the most competitive available.

PROPERLY PROTECT YOUR MANUFACTURED HOME

Manufactured homes offer great bargains for many consumers due to a much lower price as compared to site-built homes. And some independent appraisals are now confirming that these homes can appreciate in value just like other forms of housing.

Manufactured homes, however, can often pose higher chances of loss from a variety of perils, such as fire and windstorm. This is where safety and sound loss control practices come into play. The following are some fire loss control tips to consider for your manufactured home.

• Don't overload electrical outlets. Manufactured home fires are caused by problems in the electrical system twice as frequently as in site-built homes. Protect yourself by monitoring your electrical use. When one powerful electrical appliance is in use, for example a microwave, keep the use of others to a minimum.
• Make sure you have an adequate number of smoke alarms and regularly check the batteries. You should have a smoke detector in each part of the home in which people will be sleeping.
• Contact a licensed technician to inspect your furnace at least once a year. The blower and filters should also be regularly cleaned to prevent overheating.
• Make sure that your wiring and appliances are maintained in good working order. Faulty wiring is one of the leading causes of manufactured home fires.
• If you have a natural gas or liquid propane line coming into your home, make sure you know where the shutoff valve is and how to operate it.
• Verify that your lot is clearly marked since the fire department will need to be able to see the numbers on your home in case a fire or other emergency occurs.
• Other perils to consider are windstorms and tornadoes, since manufactured homes are particularly susceptible to high winds. The following are some wind-related loss control tips to consider for your manufactured home.
• If you don't already have one, consider installing a longitudinal tie-down system at the front and rear of your home. These systems rely less on ground anchors; they also reduce the effects of corrosion and rust on wind uplift resistance.
• Replace straps or ground anchors that are loose or ones that show signs of rust or corrosion. You should also check for proper installation of ground anchors and stabilizer plates.
• Install sliding storm shutters on all windows.
• Prior to severe weather, get together with the other residents at your manufactured home park and your park owner/manager to designate a safe shelter area in the park or community. When severe weather threatens, go quickly to this designated site.
  

IS YOUR HEALTH INSURANCE RIGHT FOR YOU?

Your health is way too important to leave to chance. That’s why it’s critical that you have health insurance and that it is the right fit for you and your family. Unfortunately, millions of Americans do not know if their health insurance plan will cover their needs—or how to secure better coverage.

A good health insurance plan—one that covers every potential need—goes a long way toward providing peace of mind and helping avoid a financial burden that otherwise would saddle you and your family with payment of major medical expenses. Ideally, you should have a more comprehensive plan that provides coverage for hospital, surgical or routine medical expenses. But, at minimum, your health insurance policy should cover major medical expenses resulting from catastrophic illness or injury.

Many Americans secure health insurance through their employer; others are not so lucky. But even if you have a primary policy, be aware that group benefit plans do not always provide all the coverage for your needs. You may want supplemental insurance or a health savings account (HSA) to help fill the gaps.

For those purchasing their own primary or secondary health insurance policy, the options can seem confusing and expensive. So, how do you know if your health plan is a good fit for you? Here are some tips:

1.    Evaluate your family’s needs. Consider your family’s lifestyle and medical history, and try to anticipate life-stage health events, such as braces for your pre-teen and glasses for your self. Wife turning 40? That means mammograms every year.
2.    Prioritize those needs. For example, vision care may be a good benefit for your family, but not as essential as a prescription-drug plan. List your must-haves as well as your nice-to-haves.
3.    Review plan options. For each plan you are considering, ask about key coverage provisions: Does the policy cover major medical expenses only? If your family needs preventive, dental and vision care, does the plan provide them? Does it include a prescription drug plan? Do any of these must-haves need to be purchased separately? Are your current doctors in the plan? Does a family member have a pre-existing condition and will the plan cover it?
4.    Determine your costs. Premiums are not the only costs you should consider when looking at a health insurance plan. Take into account the expenses you may have to assume beyond paying the premium, such as deductibles, coinsurance and co-payments. Are there added costs for using an out-of-plan doctor or hospital? Consider increasing your deductible for a lower monthly premium.
5.    Consider an HSA or FSA. An HSA provides two benefits: a tax write-off and a health coverage benefit. The health benefit provides coverage when you are sick or injured and the savings mechanism allows you to accumulate funds that you can use to pay for care for illnesses or injuries not covered by your insurance. An added benefit of an HSA is that both the cost of the health plan and your contributions are tax-deductible. Similarly, a Flexible Spending Account (FSA) allows you to set aside pre-tax dollars to cover medical expenses, which can help lower your taxes.
6.    Know the differences of PPOs & HMOs. Individuals in a health maintenance organization (HMO) must choose a primary-care physician from a provider network. This physician is responsible for routine medical care and must refer you to specialists. HMOs typically provide no coverage for services from physicians outside the network. Meanwhile, individuals in preferred provider organizations (PPO) do not choose a primary care doctor and do not need referrals. They can obtain coverage from physicians outside the network but the PPO likely will reimburse less for the services. PPOs require deductibles and co-payments; HMOs don’t have deductibles but participants must pay co-payments. Again, be sure your family’s doctors are in the plan you select.
7.    Get coverage today. Health insurance, much like life insurance, is usually less expensive for younger people. So, get your coverage now to secure a lower premium and be sure to maintain your coverage.
8.    Use it. Use your insurance for preventive care and wellness to decrease your risk of needing more serious medical treatment. Schedule routine doctor visits and get the regular tests that physicians advise for your age and condition. Take advantage of the discounts offered by some plans for gyms and weight-loss programs. Seek help for smoking or alcohol abuse.
9.    Don’t let it lapse. If you lose or leave your job, you may be eligible to take advantage of a COBRA plan. Even though you’ll be footing the whole bill for your health insurance, you’ll be getting the employer’s group rate and retaining coverage for 18 months. If you go without insurance for more than 60 days, it can be trickier and more expensive to purchase health insurance down the road.
10.    Stay current. Coverage can be affected by life’s changes—if you get married or divorced, for example. And keep in mind that your children will not be covered by your plan indefinitely; generally dependent children lose coverage at 19 (or 22 if a full-time student).

With so many options and pitfalls to consider, talk with your Trusted Choice® agent to ensure you are securing the most appropriate coverage for you and your family.

LIFE INSURANCE: DO YOU NEED IT?

The most frequently asked question about life insurance is: Do I need it? The answer depends greatly on your situation. So, let’s determine if you need it. Review these statements and check all that apply:

□    I am married.
□    I have children.
□    Our family recently welcomed a new baby.
□    I am single, but I have dependents (a child or an elderly relative) who I support.
□    I am the sole breadwinner in my household.
□    I recently changed jobs.
□    My income has changed.
□    I recently bought a house.
□    I will pay for my children’s college education.
□    I own a business.
□    I am in debt.
□    My family has a history of illness, such as diabetes or heart disease.
□    I have trouble saving/investing money.

If you checked any of these statements, you need life insurance to protect the loved ones who rely on you for their financial support.

Imagine if you died unexpectedly. What would happen to your spouse, your children and other dependents? Would their standard of living or care slip significantly? Who would pay your children’s college tuition? Who would pay your mortgage and other debts? Would your business survive?

With life insurance, these concerns go away. If for no other reason, get life insurance for those most important to you—your family.

Life insurance tips

Now that you’ve determined that you need life protection, here are 10 suggestions to help you look for the best life policy for your family’s needs:

1.    Get the right amount. Remember that the amount of life insurance you need is directly related to the dependency of your family. An eight-year-old child is more dependent than a 20-year-old already is in college. Plus, knowing how much coverage you need prevents you from paying for unnecessary insurance.
2.    Start young. Get your life insurance while you’re young. Generally, premiums are cheaper for younger people because they are healthier than the rest of the population. Also, buying young will enable a cash-value policy to grow in value.
3.    Live healthy. Don’t smoke. Tobacco users pay more than twice the premium as non-smokers. Also, don’t cheat because benefits can be denied if someone who claims to be a non-smoker dies of a smoking-related illness. Also, you can improve your insurability and get a better rate by routinely visiting your doctor and improving medical conditions, like high blood pressure.
4.    Know what life policy you need. Learn the difference between term life and whole life policies, as well as that of a cash-value policy versus an annuity. There are products that serve several purposes and those that serve a single purpose. Know what your needs are first. Then you’ll know which coverage you should purchase.
5.    Dual incomes? If you and your spouse are breadwinners, get life insurance for both of you. That way, if either of you passes away, the family’s standard of living will not suffer.
6.    Prepay the premium. Ask the insurance company if you can pay your premium in advance, instead of monthly. This approach will save money on administrative or handling fees. Not all companies do this, but it never hurts to check.
7.    Want to save money, too? Some life insurance products—known as “cash-value policies”—are both a savings tool and a death benefit. These polices are ideal if you cannot save money. The cash value accumulates and can be borrowed or used for other purposes.
8.    Buy ‘bulk.’ Some insurance companies charge less for buying more. For example, it may be cheaper to purchase a $250,000 policy rather than the $230,000 you need.
9.    Don’t rely on employer-provided coverage. Many group plans limit the amount of coverage offered, which may not be enough for your needs. Additionally, you likely cannot take the life insurance with you if leave your job.
10.    Keep your coverage current. Major life events will impact the amount of coverage you need. Many events—such as having a child, getting married or buying a big house—will increase the amount of coverage you need. Others—such as children leaving the roost—may decrease the coverage you need.

Losing you would be painful enough for your family. The right life insurance can at least alleviate concerns about the financial implications of your death.

Ryan Ketcheson is a local Trusted Choice® agent that represents multiple insurance companies, so he offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs.