What Being Under Insured On An Auto Insurance Policy Means

September 27, 2011 by Leave a comment

It seems like everyday were driving down the road, and we see a distracted driver on their phone, or playing with MP3 player. We also have the mad or late drivers, who are speeding or tailgating to get to where ever they need to go. Some people are just unsafe drivers and one way we protect ourselves against them is our auto insurance.  That is why having a certain amount of liability and under insured motorists coverage can be so important.  In this blog we are going to be focusing on under insured motorists coverage. This is not to be confused with uninsured motorists, even though uninsured motorists and under insured motorists are sold as the same coverage.

At what level are you considered under insured on a car policy?

In most states the department of insurance is the one to determine what being under insured is. This is calculated and based on certain factors. In Colorado, to not be considered under insured, would mean carrying at least 100/300 in liability. Or in other words, $100,000 per person, and $300,000 total per accident. If you carry anything lower such as 50/100 or the state minimum limit which is 25/50, you are considered under insured. These lower limits do have serious gaps in coverage.

Why having an auto insurance policy, that is considered under insured is bad

Accidents can be a life changing event for both parties. If you are considered at-fault in an accident, and only have 25/50 or $25,000 per person and $50,000 per accident, this is most likely not going to be enough for the 3rd party you just hit. 100/300 has and provides a lot more coverage. Anything higher than 100/300 is always going to be a recommended. These higher limits could include, 250/500, 300 CSL and 500 CSL. (Combined Single Limit)

How can I protect myself against under insured motorists?

Make sure that you have enough under insured motorists coverage on your vehicle policy. Also carry as much under insured motorists coverage as possible. This will fill the gaps of coverage, that an under insured motorist wouldn’t have.  It’s also a good idea to add under insured motorists coverage to your personal umbrella if you have one.

According RMII, about 1 out of every 6 people in Colorado drive with out insurance. Overall uninsured motorists cost consumers about 11 billion dollars per year. On top of that there are a lot of consumers who just buy the state minimum liability requirements.  If you have any questions about your policy and under insured motorists, feel free to contact us. Thanks For Reading!

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Will The Insurance Company Inspect My Home?

September 25, 2011 by Leave a comment

When purchasing home insurance, there are some steps involved. One of them being inspecting your home after purchase of  the policy. When you buy a homeowners policy, the insurance company has the right for inspection. This can be at the beginning, or in the middle of the term. There are a couple of reasons why insurance companies does this.

  1. The insurance companies checks the assessor report, square footage, build and other factors to make sure that the home is insured to 100 percent of its value. This is to assure that property’s don’t go under insured.
  2. The inspector looks for pride of ownership. In other woods is the home being taken care and maintained. From there the inspector will note in his/her report their findings. This could be that the house is in good shape, or needs work.
  3. Liabilities are noted and sent back to the under writer. This could be a pool, trampoline, or any other liability.
  4. There are other steps that the inspector might through, such as an interior inspection, but for the most part, the first 3 steps, are the main steps.

After the inspection is done, the inspector will send his report back to the insurance company. From here, it will go through under writing, and if there are no flags, the policy gets issued. The insurance company may also require further steps, such as fixing a condition in the house. They could also completely deny issuance of a policy, but this only happens a small percentage of the time, usually due to a serious factor. (An Example is telling an insurance company that you own a Golden Retriever, but they find out you have a Pit bull).

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Why A Trampoline In Your Backyard Is A Bad Idea

September 23, 2011 by Leave a comment

Trampolines are fun and good for exercise. They are also sometimes considered and attractive nuisance and are excluded on most home insurance policies.  By attractive nuisance, you as the homeowner are one hundred percent liable for any potential incidents or lawsuits. So for example, if little Johnny next door, sneaks over and injures himself on your trampoline, you are fully responsible. Even if you weren’t home and didn’t give him permission to be on your property.

According to a CBS News article, 98,000 people were treated in emergency rooms in 2009, due to a trampoline injury. The injuries have also doubled over the past decade, compared to the previous.

These injuries are not going to pay for themselves, and since your home owners insurance most likely has a trampoline exclusion, the homeowner is going to have to pay out-of-pocket.  Insurance companies use to cover trampolines on their policies. After injuries started staggering up, and personal injury lawyers started suing anyone and anybody, insurance companies got out of the business of insuring trampolines.

Our advice is DO NOT OWN ONE. Were not trying bash the Trampoline Industry, were trying to protect the home owner. Trying to protect him or her from frivolous law suits.  All it takes is for a trail attorney lawyer to represent little Johnny’s injury, and for you to pay out-of-pocket over 50,000 dollars. Even if you some how have an insurance policy that covers it, get rid of it. It’s a headache to completely avoid.

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How To Know If Your Dealing With A Licensed Insurance Agent Or Company

September 23, 2011 by Leave a comment

Today is this world, it seems like some one is always out to scam or cheat someone else. We all know its very important to protect your identity and other financial information. We all need to be skeptical, and must protect ourselves as best as we can. So how do you know if your dealing with a legitimate agent or company when shopping for insurance? You have to give out a lot of information when shopping for insurance. It’s always good to double-check if that person or company is licensed before you do so.

How Do I check If a Company or Person Is Licensed?

It’s very easy to check if an agent is licensed or if a company has a certificate of authority. You can simply do this by contacting the department of insurance in your state. For example in Colorado, its DORA- Division of insurance.  From here you can see if they’re licensed and what lines they authorized to transact business in. It also shows the dates of inception and expiration of their license or Certificate Of Authority.

The division of insurance also requires agents to pass a mandatory test, and also pass a credit and background check. They require insurance companies to get a Certificate Of Authority, and to prove solvency and stability  in order to write insurance in their state.  Some companies are Surplus and Excess and do not have to got thorough the process of getting a Certificate Of Authority. These companies  write unusual risks or hard to place, and are considered non-standard markets. In most states, the commissioner has a list of Surplus and Excess companies they find the most trust worthy.

Other Ways to Verify Acknowledgement and Recognition

  • Most agents must go through the process of being appointed by an insurance company. This includes license check with the state, background check, and credit check.
  • Check the financial score of an insurance company by visiting AM Best.
  • Check with the BBB.
  • See how long a company or agent has been in business. A new or small company or agent is not necessarily negative.
  • Meeting an agent or company rep in person is always a good idea.
  • See if the agent and/or company has any past or current complaints with the division of insurance.

Most of all if its to good to be true, or you feel uncomfortable, don’t give out your personal information! Check with the State Department of Insurance first. As always if you have more questions please call us during normal business hours.

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Are You Prepared For A Loss?

September 21, 2011 by Leave a comment

So much of the time we are more concerned about how much our monthly premium is than what we have to pay in a deductible should we have a loss.  We margin our deductible at a level in order to make our insurance premium comfortable, thus, in the time of a loss, we are not prepared to make the deductible payment.

For example, Susie has a business that is a high-end clothing store.  She has taken out business insurance to cover her investment but has set her deductible at a high level because she wants to keep her premium low.  When the time comes when Susie does suffer a loss, she is not prepared to pay the $10,000 deductible that she has requested on her insurance policy.

We need to prepare ourselves by saving money each week so we are can make the deductible payment should we experience a loss.  Isn’t that what insurance is really about, taking care of the loss when we actually have one?  So, put the money aside, and take care of yourself,  your business, your home and family by always having enough money to cover your deductibles on your insurance policy.

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Get A Quote From Us!

August 25, 2011 by Leave a comment

We are a full service national insurance agency. We are also locally owned and family operated. We are insurance brokers and independent agents, who have the comprehensive resources to put together policies with the best coverage at the lowest cost. So call today. We can give you a quote on just about all your insurance needs. We also started in 2007 and have been growing through this recession thanks to great clients and neighbors in the Colorado area. Be apart of our family today!

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Did You Hire An Employee Or An Independent Contractor

June 28, 2011 by Leave a comment

Before you go out and hire an independent contractor, or give the next 10-99 to your contractor, there are some things you need to know. Because that person might be an employee not an independent contractor. In this blog I am going to explain what the difference is. This is very important, because the last thing you need is government agency bullying you, and fining you.

What is an employee?

An employee is one who is scheduled specific hours by the employer and is required to work those hours.    This person  is eligible under certain requirements to benefits as designated by the employer.  An employee is eligible for sick leave, medical insurance, dental insurance, and 401Ks etc. through the employer.  An employee is also eligible for Workman’s Compensation if such need should arise.  The employer will pay the employee’s income taxes such as social security and state taxes.  Usually an employee is paid a salary or by the hour.

What is an independent contractor?

An independent contractor is one who works for an individual or company but is not scheduled or required to work certain hours.  An independent contractor is totally independent as to his or her work schedule and does not receive any form of benefits from the employer.  There is no Workman’s Compensation, no medical insurance, no dental or 401K eligibility.  An independent contractor is responsible for paying his or her own taxes such as social security and state taxes.  The most common form of compensation for the independent contractor is being paid by the job.

 

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Loss Of Business Income Insurance Coverage

June 27, 2011 by Leave a comment

In the event of a large loss, it is most likely a business will not be able to do daily operations. Sometimes a business is shut down due to a claim. This can be a couple of days, of even sometimes up to a year. Sometimes a loss can result from another loss. This is called an indirect loss. Such indirect loss could be losing business income from a big loss.  Since your business can no longer operate, it is only natural for this to happen.

What is business income loss insurance?

This coverage supplements your business income from an indirect loss, when a direct loss occurs and effects your revenue. This coverage is usually good for up to 12 months of lost income. Business income can be considered any type of revenue from daily operations. The insurance company has to indemnify all losses, but no profit can be gained from the insurance company. This unless it is apart of daily operations income.

Why is this so important to have on my insurance policy?

Incidents that result in business losses, can be unforeseen. If your operations are stopped due to an insurance loss, it is a must you  protect the businesses income. This simply can be done, by buying a business owners policy, that has loss of business income, included in it. Always make sure that this coverage is good for 1 full year.

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Renting A Car? Things You Need To Know About Insurance Before You Do

June 26, 2011 by Leave a comment

I get a lot of questions in my agency, when it comes to renting a car. In this blog I am going to cover what you need to know about insurance, before renting a car. I am going to use a Q & A format, to clear up questions.

  • Will my insurance, follow me to the rental car?

Yes it will, if you already have insurance, you don’t need to buy the rental car insurance. There are coverages you need to make sure you have before doing this. If you have just liability, you need to make a temporary endorsement, and add physical damage coverage. If you don’t have insurance and don’t have a regular car, it is probably best to buy their insurance.

  • What coverages do I need for the rental car.

All rental car rental places will require you to have, state required auto liability insurance, and also physical damage coverage. Most rental car outlets, will require you to carry no higher than a 1000 dollar deductible for both Comprehensive and Collison. If the car gets in an accident, you will be responsible for the deductible.

  • Is there anything else I need to know?

If your rental car is an accident, the rental car place, could technically go after you for loss of use. The loss of use is either while the car is getting replaced or repaired. At this time the car is not operable, and the rental car place can’t rent it out. So technically they can go after you for loss of use. Sometimes your car insurance company will include this in there policies. But some don’t. It is best to check your policy for this. Some credit card companies give you this coverage free, as long as you use the credit card, to rent the car.

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Negligent Fire Works On 4th July Fires Up Millions In Property Damage And Bodily Injury Each Year

June 25, 2011 by 1 Comment

Independence Day is one of my most favorite days of the year. We celebrate our great Country. We get together with friends and family, enjoy that out doors and bar-b-que. We enjoy the All Star GAme on TV, and sit back relax and drink beer. But there is one thing we all forget. The fact that millions of dollars of property damage and bodily injury occurs each year due to fire works.

According Rocky Mountain Insurance Information , In 2009, fireworks started an estimated 18,000 reported fires, including 1,300 structure fires, 400 car fires, and 16,300 outside and other fires. These fires resulted in one death, 30 injuries and $38 million in property damage (National Fire Protection Association latest data).

On the 4th of July, there are more reported fires then any other day. This makes it difficult for fire and police departments, to respond to emergencies.

Our advice at Denvers Insurance Agency and The Ahbe Group is to leave it up to the professional’s. Keep in mind that the most commonly injured person from fire works, are young children, usually from a sparkler. Sparklers can burn up to 1200 degrees.

Our advice for the fourth of July is to be safe, and leave the fireworks to the pros. Here is a list in Colorado of upcoming fire work displays for 2011, courtesy, The Denver Channel.

 

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