Do I need professional liability insurance?
Friday, June 10th, 2011 | Insurance Information | No Comments
Professionals that operate their own businesses need professional liability insurance in addition to an in-home business or businessowners policy. This protects them against financial losses from lawsuits filed against them by their clients.
Professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called “errors and omissions” liability.
Professional liability insurance is a specialty coverage. Professional liability coverage is not provided under homeowners endorsements, in-home business policies or businessowners policies (BOPs).
INSURANCE COMMISSIONER JONES REMINDS CONSUMERS TO MAINTAIN ADEQUATE HOMEOWNERS COVERAGE
Thursday, March 3rd, 2011 | Insurance Information | No Comments
Insurance Commissioner Dave Jones today reminded all California consumers to consider the costs associated with replacing or rebuilding their homes in the event of major damage or loss when evaluating their insurance coverage.
“Consumers need to know that insurance coverage limits are not based on the market value of the home,” Commissioner Jones said. “While market value may decrease, the cost to replace/rebuild the structure may not decrease.”
Although the housing market has been declining over the past several years, the costs related to replacement or rebuilding have not necessarily dropped in the same fashion. It is understandable that in a tough economy consumers are looking for ways to save money and to make their dollars go farther. Sometimes, consumers consider reducing their insurance coverage as a way to save those dollars. However, some industry experts have pointed out that consumers can choose to increase their minimum deductibles as opposed to reducing coverage on their home.
“Consumers are well aware that their home is, most often, the largest investment they make, it is important to adequately insure it at the proper level of coverage,” said Commissioner Jones.
Commissioner Jones offers homeowners the following tips:
· Replacement Values. Check the type of replacement value provided in the policy. Actual cash value (ACV) is the amount it would take to repair damage to a home or to replace its contents after allowing for depreciation. Replacement cost is the amount it would take to rebuild or replace a home and its contents with similar quality materials or goods, without deducting for depreciation.
· Save money on homeowners insurance. Deductibles and discounts are generally the easiest places to save money on this type of policy. Most companies offer discounts for people who have more than one type of insurance policy with them, and for people who have had few claims or are long-term customers. When it comes to the deductible – which is the amount you have to pay if there is a loss – usually the higher it is, the lower the premium. It’s normal to consider raising a deductible to save on premium, but remember, the bill will be that much more following a claim.
Consumers are encouraged to contact the California Department of Insurance at 800-927-HELP (4357) if they have questions or for more information.
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Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
INSURANCE COMMISSIONER JONES OFFERS INSURANCE TIPS FOR CONSUMERS
Friday, February 18th, 2011 | Insurance Information | No Comments
Insurance Commissioner Dave Jones today announced tips for all California consumers to consider when evaluating their needs for insurance.
“I believe it is extremely important for consumers to evaluate their individual needs for insurance and to make sure that they are covered in the event of an emergency or disaster,” Commissioner Jones said. “It is absolutely imperative that consumers take these kinds of precautions before disaster strikes, otherwise it may be too late.”
Five Questions to Ask Your Agent about the Insurance on Your Home
Without looking, what is the value of the contents of your home covered by insurance? Is a flood covered? If someone is hurt while visiting, will insurance pay medical expenses? Whether a renter or an owner, the California Department of Insurance (CDI) suggests a review of all insurance policies annually. It is a chance to brush up on what is covered, and to evaluate whether the coverage is still adequate (or too much) for your current situation.
Commissioner Jones offers the following tips for Consumers:
1. What type of coverage do I have?
Homeowners or Renter’s. A homeowner’s insurance policy covers the structure, belongings and legal obligations if someone is injured at your home. A renter’s policy does not insure the structure, but otherwise provides similar coverage. To review a list of coverage’s that are in a typical homeowners or renter’s policy, go to www.InsureUonline.org, select the appropriate life situation on the right, and then click on the “Home” tab.
Replacement Values. Check the type of replacement value provided in the policy. Actual cash value (ACV) is the amount it would take to repair damage to a home or to replace its contents after allowing for depreciation. Replacement cost is the amount it would take to rebuild or replace a home and its contents with similar quality materials or goods, without deducting for depreciation.
Liability Limits. Liability insurance protects you from legal obligations arising from accidents involving visiting non-residents. An umbrella policy can increase the liability limits of a homeowners or renter’s policy if the policy limit is insufficient.
Medical payments. Homeowners and renter’s polices typically include limited medical expense payments for injuries occurring on your premises to visiting non-residents.
2. How much coverage do I need?
Make a home inventory. A home inventory is the best way to determine the appropriate level of coverage needed for contents. It is also a useful tool to have in case of a loss. When doing the home inventory, make sure to include as much detail as possible about the items. Click here for a home inventory worksheet and tips to get started.
Do not over insure. Homeowners do not need to insure the value of the land a home sits on, but coverage should include any outdoor structures on the property. For both homeowners and renters, concentrate on an accurate list of belongings and be sure liability limits are at a proper level.
3. What are my deductibles and discounts?
Save money on homeowners or renter’s insurance. Deductibles and discounts are generally the easiest places to save money on this type of policy. Most companies offer discounts for people who have more than one type of insurance policy with them, and for people who have had few claims or are long-term customers. When it comes to the deductible – which is the amount you have to pay if there is a loss – usually the higher it is, the lower the premium. It’s normal to consider raising a deductible to save on premium, but remember, the bill will be that much more following a claim.
Insurers may change policy terms at renewal, but they must notify you first. Read all notices and information sent from the insurance company. When talking with the agent, ask if there are any anticipated changes when the policy renews.
4. What additional coverage may be needed?
Neither flood nor earthquakes are covered by a standard homeowners or renter’s policy. There are optional insurance policies for both disasters. Ask about available options or visit www.Floodsmart.gov for details on flood insurance.
Additionally, wildfires are a very real threat in California. Here are some tips regarding wildfire preparedness and coverage:
Create and maintain clearance around your home. Proper clearance to 100 feet dramatically increases the chance of your house surviving a wildfire. This 100 foot defensible space also provides for firefighter safety when protecting homes during a wildland fire.
Burn debris only on permissive burn days.
Cut weeds and dry grass before 10 a.m. when the humidity is higher and temperatures are cooler to reduce the chance of igniting a fire.
Follow proper guidelines for burning debris on your property.
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Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833
We are now members of the Professional Insurance Agents Association ( PIA ) Western Alliance
Monday, February 7th, 2011 | Insurance Information | No Comments
Who Are PIA’s Members?
As independent Professional Insurance Agents, PIA’s members generally represent not one, but multiple insurance companies. This enables them to provide their local customers, both individuals and small to mid-size businesses, with a choice of coverages to meet their unique insurance needs.
Next Door Neighbors: Your Main Street Professional Insurance Agents
PIA members are civic-minded, small businessmen and women who embody the spirit of entrepreneurial America and form the backbone of our society. They are leaders in their communities, providing personal attention to customers, one neighbor at a time.
Concerned Americans
PIA members, and PIA staff on their behalf, are active in the politics that govern their communities, states and nation. As local owners of small businesses, PIA members are concerned that laws and regulations serve not just the business community, but also their neighbors who depend upon the availability of good, affordable insurance to protect the things they hold dear.
This delicate balance is the reason PIA so ardently supports regulatory modernization of insurance in a manner that preserves state regulation. Done properly, this helps to streamline regulatory processes, thus reducing burdens on business, while ensuring that insurance oversight remains close to the people, so their concerns can be heard and they can be adequately protected. PIA also supports continued efforts to ensure the ongoing and financially sound availability of insurance coverage for acts of terrorism, natural catastrophes, floods and other events.
San Mateo approves $6 million levee project
Friday, January 21st, 2011 | Insurance Information | No Comments
San Mateo will borrow up to $6 million to start shoring up Bayside levees, a project that thousands of residents facing high flood insurance bills have been anxiously awaiting for three years. http://www.mercurynews.com/san-mateo-county/ci_17142136?nclick_check=1
The City Council on Tuesday night unanimously approved the issuance of bonds that will fund four levee projects between San Mateo Creek and the Foster City border.
“Hallelujah,” Deputy Mayor John Lee said moments before the vote.
The coming start of the project will launch a “race against time” to free some 6,000 property owners of their obligation to buy pricey flood insurance policies, including many who have been paying for the insurance for a decade and others who will have to start next year.
What Are Fixed Annuities Used For?
Thursday, June 24th, 2010 | Insurance Information | No Comments
A fixed annuity is a popular retirement and savings vehicle that was created for long term investors who want the stability of a guaranteed fixed interest rate with no risk that they will ever lose any of their principal. A fixed annuity contract lets the insurance company invest your lump sum or accumulated contributions into low-risk assets, providing a guaranteed return traditionally higher than that of a CD product.
While a fixed annuity provides steady, guaranteed, and worry free growth, the real advantage is the tax-deferred benefits that a fixed annuity funded with qualified (pre-tax) money presents. A tax-deferred fixed annuity lets you defer all tax on earnings and principal into the future, providing exceptional growth due to the compounding process on earnings. While the interest on a certificate of deposit is taxed yearly (reducing your total accumulated value), the fixed annuity is designed to encourage real retirement savings by providing a long term tax deference incentive for you to grow your investment.
A fixed annuity is typically structured and planned out in two phases. The first phase includes the accumulation phase where long term growth and compounding happens on a tax deferred basis. The second phase is typically the payout phase, whereby a fixed annuity can be converted into a monthly fixed income and paid on a guaranteed basis over a lifetime or set number of payments. Alternatively a fixed annuity can be rolled over into a new annuity with prevailing interest rates through a 1035 exchange, with no tax liabilities incurred if processed correctly.
Taking Inventory of Your Home
Monday, June 21st, 2010 | Insurance Information | No Comments
No one plans to lose their valuables and other belongings in a burglary, a fire or a natural disaster. If one of these unfortunate events destroyed your home, would you be able to report exactly what you lost to the police, to the Internal Revenue Service or to your insurance agent?
Start Today
Write down any valuable items with their serial numbers (usually found on the bottom or back of major appliances) along with the method of acquisition (purchased, inherited or received as a gift), date purchased and price or approximate value. Attach receipts, if possible.
Remember to include furniture, appliances, carpeting, jewelry, artwork, toys and the contents of your closets, cabinets and drawers. Contact your insurance agent with questions or concerns.
Play It Safe With A Videotape
Videotaping each room of your house can make taking inventories easier. Photographs and a tape recorder can substitute for a video camera.
A complete video inventory should contain verbal descriptions of major assets as well as their value. Remember your garage, attic, basement and the exterior of the house, plus your landscaping and fencing. If possible, make it a family project by having everyone take turns describing the objects in your home.
Store the video or photographs along with this inventory in a safe-deposit box and send a copy to a friend or relative.
Don’t Forget Important Documents
Extremely important documents should be photocopied. Keep one copy in your home and the original, where possible, in a safe-deposit box. Important items include, but are not limited to, the following:
House – Escrow, title, deed, insurance policy.
Personal – Birth certificates, medical history, passports, insurance certificates, credit card numbers, will.
Automobile – Certificates of ownership, finance contracts, registrations, insurance policy, driver’s licenses.
Finance – Account numbers for checking and savings accounts, CDs, stocks, bonds, other significant investments.
Tax – Copies of the first two pages of your state and federal returns for the past five years. Complete returns with appropriate receipts and canceled checks should be kept in a separate file box.
A Final Note
Most policies limit the amount of reimbursement for theft of valuable items, such as jewelry, furs, silverware and guns. If you have some particularly valuable items in these categories, you may need to purchase additional coverage called a “floater.” These types of policies cover each item individually and are usually quite inexpensive.
This information will only be beneficial if you make use of it now. By inventorying your personal possessions ahead of time, you will save yourself from frustration should disaster strike. Your insurance agent can help you determine whether your property is adequately protected.
Life Insurance 101
Tuesday, June 15th, 2010 | Insurance Information | No Comments
Need a basic overview of how life insurance can be used to secure families and businesses if the worst were to happen? Watch the video:
Thanks to the LIFEfoundation for this informative presentation.
Commissioner Poizner Urges Californians to Prepare for Wildfires
Wednesday, May 5th, 2010 | Insurance Information | No Comments
Marking the one year anniversary of the Jesusita Fire in Santa Barbara, Insurance Commissioner Steve Poizner today advised all California homeowners to proactively prepare for fires and other potential disasters by conducting a home inventory and updating their insurance policies.
“One year ago, the devastating Jesusita Fire destroyed eighty homes in the blink of an eye,” said Commissioner Poizner. “Today is a difficult reminder that Californians must always be prepared for wildfires. Waiting for a fire to erupt before conducting a home inventory and reviewing your insurance policy means you could get burned twice – first by the fire then by trying to recover your losses.”
The Jesusita Fire broke out on May 5, 2009. The blaze burned 8,733 acres, destroying 80 homes and damaging 15. Commissioner Poizner urges any Jesusita Fire survivors to call the Department of Insurance Consumer Hotline at 1-800-927-HELP if they have insurance-related questions or concerns, or if they would like to file a complaint.
Commissioner Poizner urges all homeowners to prepare themselves, and conduct a home inventory to maintain detailed records of their belongings. Poizner offered the following tips for conducting a home inventory:
Using a household digital camera and a Home Inventory Guide from the California Department of Insurance, catalogue your possessions and document their values. Photographs of household goods are especially helpful when an item is difficult to describe on paper, or if a purchase receipt cannot be obtained.
Label photographs with information about each item.
If a video recorder is used, commentary about each item should be included.
A copy of the inventory and supporting documentation, such as receipts and model numbers, should be stored in a safe place, such as a safe-deposit box, work office, or a relative’s house.
These records should also include financial documents such as insurance policies and mortgage information.
A free Home Inventory Guide is available at www.insurance.ca.gov.
Contact CDI at 800-927-HELP to obtain consumer information guides about additional insurance products, or for any insurance-related questions.
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Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
Good News For Landlords
Tuesday, May 4th, 2010 | Insurance Information | No Comments
Foremost Insurance Group has updated its dwelling fire program in California. Foremost is targeting standard and preferred landlord customers with new, larger discounts. It also lowered rates on vacant homes by an average of six percent
Some of the changes to program include:
• Owners with multiple properties insured with Foremost may qualify for a discount.
• Homes up to 15 years old may qualify for an Age-of-Home discount of up to 25%.
• Owners using a property management company may receive a discount.
• Landlord association members may receive a discount.
• Owners without prior claims may receive a discount.
Foremost has also broadened its underwriting to accept the following:
• Homes with open foundations
• Multiple dwellings on premises
• Customers who have had a lapse in coverage
If you own rental properties and would like more information re: insuring through Foremost, Give us call today.
Recent Posts
- Do I need professional liability insurance?
- INSURANCE COMMISSIONER JONES REMINDS CONSUMERS TO MAINTAIN ADEQUATE HOMEOWNERS COVERAGE
- INSURANCE COMMISSIONER JONES OFFERS INSURANCE TIPS FOR CONSUMERS
- We are now members of the Professional Insurance Agents Association ( PIA ) Western Alliance
- San Mateo approves $6 million levee project