Month: April 2014

Do You Need a High-Value Homeowner’s Policy?

Posted on by shasha insurance

Standard homeowner’s insurance policies offer sound financial protection for most people. However, those who own large homes that would cost upwards of $500,000 to rebuild may have special coverage needs for which the standard policies were not designed. Such homeowners may own expensive jewelry or have costly business equipment at home, or they may be involved in public activities that make them targets for lawsuits. People with these exposures to financial loss may want to consider buying a high-value homeowner’s insurance policy.

Some of the additional coverages that insurance companies provide in high-value homeowner’s policies are:

Extended rebuilding cost. If a fire destroys the home and the policy limit does not cover the entire cost of rebuilding, this coverage will pay for the additional amount. Some policies pay as much as an extra 100 percent of the insurance on the home.

No requirement to replace or rebuild. A standard policy may not pay the entire replacement cost of damaged structures or contents unless the owner rebuilds or replaces them. High-value policies may waive this requirement and pay the replacement cost regardless of what the owner decides to do.

Demand surge coverage. After a major disaster like a hurricane, labor and materials for rebuilding are often in high demand. As a result, the cost of rebuilding a home jumps. This coverage provides additional amounts of insurance to pay for the increased costs.

Rebuilding to code. If building codes have changed and increased the costs of rebuilding the home, this coverage will pay for those costs above the amount of insurance on the home.

Deductible waiver. Some policies waive the deductible if the amount of a property loss exceeds a certain level, such as $50,000. However, the waiver might not apply to losses from certain causes such as earthquake or a windstorm.

Excess flood coverage. Most homeowner’s policies do not cover damage caused by flood waters. The National Flood Insurance Program offers this coverage, but the most insurance it offers is $250,000 on a home and $100,000 on contents. A high-value homeowner’s policy might provide as an option additional insurance that applies after the NFIP insurance is used up.

Backup of sewers and drains coverage. Standard homeowner’s policies do not insure against damage caused when a drain, such as a sump, backs up, though often the owner can buy this extra coverage. A high-value policy may include it automatically.

Electronic data. Some high-value policies may pay for the cost of restoring computer files and for costs resulting from theft of the policyholder’s identity.

Food. Unlike standard homeowner’s policies, a high-value policy may pay for refrigerated food that spoils when a covered cause of loss disrupts the power supply.

Lawsuits. Standard homeowner’s policies cover the costs of lawsuits and attorney fees only if they result from bodily injury or property damage the policyholder may have caused. High-value policies may go beyond that, covering alleged acts of libel and slander.

Higher amounts of coverage. High-value policies may cover some of the same things that standard policies cover, but for higher amounts. For example, these policies may provide more coverage for valuables, such as jewelry, furs and collectibles. They may provide more coverage for the expense of living elsewhere while the home is being repaired, more coverage for loss assessments from a homeowner’s association resulting from an accident, and more coverage for business property kept in the home.

Homeowners who think they may need this kind of additional coverage should consult an insurance agent. Many insurance companies are now offering high-value policies. It may well be worth a few minutes to review insurance needs and protect thousands of dollars worth of hard-earned property.

It May Be Art, But Is It Covered?

Posted on by shasha insurance

Many people collect paintings, sculptures, antiques, and other works of art with values ranging from garage sale prices to thousands of dollars. The International Risk Management Institute states that art becomes valuable for one of three reasons: cultural significance; owner’s subjective value; or the marketplace’s estimate of its worth. Regardless of the reason, damage to a valuable work of art will likely cause the owner significant financial loss.

A standard homeowner’s insurance policy provides some coverage for fine art, but is unsuitable for high-priced works. The insurance company will pay for losses to art caused by fire, water damage, vandalism, theft, and a limited number of other causes. In the event of a loss, the company will pay the item’s replacement cost after subtracting depreciation. For example, if fire destroyed a painting worth $1,000 on the open market, the homeowner’s policy would pay the cost of replacing the canvas, paint and frame after subtracting some amount to reflect the age of those materials. This amount may be nowhere close to the work’s market value.

For this reason, art owners may want to buy separate insurance on their fine arts. This insurance can be in the form of an addition (also called an endorsement) to the homeowner’s policy, or via a separate policy (sometimes called a “fine arts floater”). A fine arts floater insures paintings and drawings; art glass windows; valuable rugs, statues, furniture, and books; and “other bona fide works of rarity, historical value or artistic merit.” These items must be in a private collection owned by the policyholder; there is no coverage for works owned by a museum, business or government agency. The policy lists high-value art works individually on the policy with their associated coverage amounts and shows a combined insurance limit for all lower-value pieces. If the policyholder buys a new piece during the policy period, the policy provides automatic coverage for 90 days. The most it will pay for a new piece (until the owner reports it to the company) is 25 percent of the amount of insurance covering items specifically listed on the policy.

If the owner plans to transport an artwork from the address shown on the policy, coverage will apply only if competent packers handle the move. Coverage does not apply to a piece while it is in the custody of an art dealer, museum or auction house if the entity has insurance covering it. Also, the policy will not pay for damage to pieces while they’re on exhibition off the owner’s premises; the owner can extend coverage off-premises by adding the address of the exhibition to the policy.

The policy covers damage to fine arts from all causes except:

  • Actions of governmental or civil authorities;
  • Intentional damage;
  • Neglect;
  • Repair, restoration, or retouching processes; and
  • Breakage of glass, statues, and other fragile articles unless fire, explosion, collision, windstorm, earthquake, flood, malicious mischief, or theft caused the loss. For an additional premium, the company may remove this limitation.

In the event of a loss, the company will pay the amount shown on the policy for items specifically listed on the policy. For other pieces, it will pay amounts equal to their replacement cost minus depreciation, up to a maximum of $500 per item.

To accurately determine an item’s value, the insurance company may require an expert appraisal. It may also require the policyholder to take certain precautions to safeguard especially valuable pieces. A qualified insurance agent can give advice on appropriate coverage and companies. Anyone who owns these treasures should make certain the right insurance is in place.

Steer Clear of Traffic Camera Tickets

Posted on by shasha insurance

Rushing to make it to work on time, Bill sees the traffic light up ahead turn yellow. He speeds up to make it through the intersection, but the light changes to red before he makes it to the other side. When he doesn’t see any flashing blue lights tailing him, Bill breathes a sigh of relief assuming he didn’t get caught—or so he thought.

A week later, Bill is shocked to receive a ticket for $150 in the mail. As he dashed through the red light a week before, a small camera at the traffic light snapped a picture of his car and license plate number. The Department of Transportation then tracked down Bill as the registered owner of the car and mailed the ticket to his home address.

Say cheese!

As more cities install red light and speeding cameras, tickets by mail (like the one Bill received) are becoming increasingly common. Obviously, drivers are never thrilled to receive a speeding or traffic violation ticket for $100 or more in the mail. Some argue the cameras are an invasion of their privacy while others complain that local police departments are just looking for a quick and easy way to boost their budgets.

Despite these protests, traffic violation cameras aren’t going away any time soon. Such cameras are skyrocketing in popularity throughout the nation. From San Diego, California to Atlanta, Georgia to Scottsdale, Arizona, cities across the country are activating these red light/speeding cameras. Traffic camera fines range anywhere from $100 to $500 or more.

Cities with traffic cameras enjoy a phenomenal return on their investment. As a matter of fact, red light/speed cameras in Cleveland, Ohio caught more than 2,300 traffic violators within the first month of operation. Each Cleveland red light violator was charged $100 per citation while speeders were fined between $150 and $200.

Unfair violations

Many drivers complain that these red light and speeding cameras can lead to unfair tickets. For example, let’s say you let your sister borrow your car. If a camera snaps her running a red light, the ticket will be mailed to you because you are the registered owner.

Some states, like Georgia, give drivers a chance to contest the ticket if the owner was not driving the car when the violation occurred. However, other states say the owner of the car is responsible for paying the ticket regardless of who was driving their car.

An uptick in accidents

Some research show that red light and speeding cameras may lead to more traffic accidents. A 2008 study by the University of South Florida’s College of Public Health revealed red light cameras significantly increase crashes. This could be because drivers are stopping abruptly at intersections when the light turns yellow in fear that they will receive a camera violation. With so many cars slamming on the brakes at intersections where cameras are present, many cities have seen a sharp rise in rear-end collisions.

Studies from North Carolina, Virginia, and Ontario have also reported cameras are linked with an increases in car crashes, including accidents involving injuries. A study by the Virginia Transportation Research Council also found that cameras were associated with higher crash costs.

However, while rear-end collisions have increased in some areas, studies show that more serious side-impact crashes have decreased due to fewer drivers running red lights.

Driving up insurance rates?

Many drivers worry that these camera tickets will lead to higher car insurance premiums. In most states, camera tickets are considered civil penalties, so they should not result in points on your driver’s license or have an impact on your insurance rates. However, if you rear-end a driver who slams on their brakes at a camera-monitored intersection, you probably will see a hike in your car insurance premiums.

Car Color May Reflect Your Personality-But What About Your Insurance Rates?

Posted on by shasha insurance

Many people latch onto a certain color in preschool and remain ever-faithful to that shade throughout their lifetime. Whether it’s blue, pink or green, they may deck out their childhood bedroom in their favorite hue, refuse to wear any other shade in junior high and even dye their hair that color in high school. Later, when it comes time to buy their first car, these color-faithful people usually choose a vehicle in—what else—their beloved favorite color.

While this is no surprise, some research reveals that the color of your car actually speaks volumes about your outlook on life, your personality—and even your driving style. For example, a United Kingdom study shows that black cars were twice as likely to be involved in U.K. car accidents than cream-colored cars.

Here are a few more interesting findings from the same U.K. study:

  • Black cars are usually driven by aggressive people who consider themselves “outsiders.”
  • Silver cars are usually owned by cool, calm and slightly detached drivers.
  • Green cars are often driven by people with “hysterical tendencies.”
  • Yellow cars are typically chosen by idealists with upbeat, optimistic attitudes.
  • Blue cars are usually driven by introspective people who are cautious drivers.
  • Gray cars are usually chosen by calm, sober drivers who are dedicated to work.
  • Red cars are driven by energetic people who are fast talkers, movers and thinkers.
  • Pink cars are often chosen by gentle, loving people.
  • White cars can signify status-seeking extroverts.
  • Cream cars, the least likely to be involved in an accident, are generally driven by self-contained, reserved people.

Does color affect rates?

Based on this particular U.K. study, car color can reflect a driver’s personality—but can it affect their insurance rates? Many people seem to believe so.

According to a 2005 Chicago Sun-Times article, 25% of surveyed drivers said they believe the color of a person’s car does affect their auto insurance rates. After all, aren’t drivers of red cars typically risk-taking, speed-demons and drivers of black cars overly aggressive, road ragers? If that’s the case, wouldn’t drivers with those color cars be viewed as a higher risk to the insurance company and therefore be forced to pay higher rates?

The answer is no. Insurance companies do not take the color of your car into consideration when they calculate your premium. Your insurer probably has no idea what color car your drive unless you offer up that information.

Typically, insurance companies determine your rate based on some or all of the following factors:

·   Your vehicle’s make, model, body type and engine size

·   Your personal credit history

·   Your driving record

·   Your usage of the car (such as if you are using the car for work, pleasure or as a collectible.)

·   How many drivers will be using the car and their ages

·   How many vehicles you own

·   What kind of coverage limits you want

·   Where you live

·   Your weekly, monthly or annual mileage

So, go ahead and buy your next car in your favorite hue to match your house, your clothes or even your hair. Although it may advertise your personality to the world, your car color will have no affect on your insurance rates.

Will Your Insurance Pay If Vandals Strike?

Posted on by shasha insurance

When people buy homeowner’s insurance, they usually intend for it to cover the home in which they live. That is also the insurance company’s expectation, and most of the time, that is the case. However, sometimes circumstances change and the home is left empty. For example, the family goes on a weeklong vacation, or one that lasts a month or more. One member of the couple may accept a temporary job transfer that will last for a few years, and they may decide not to sell the home. In other cases, the family may move into a new home but find themselves unable to sell the prior one. In all of these cases, the home is rendered either unoccupied or vacant. This change in status can affect the insurance coverage.

The standard homeowner’s policy provides coverage for losses caused by vandalism and malicious mischief. For example, the policy will pay for the repair and replacement of windows if the family comes home and finds all of the first floor windows broken. A reasonable person could conclude that vandals broke the windows. However, the policy will not pay if the home has been vacant for more than 60 days. Insurance companies design the policies and set the prices under the assumption that a home will be occupied. A vacant building is vulnerable to damage by vandals, so the companies have designed other policies to cover them.

It is important to understand that a temporarily unoccupied home is not the same as a vacant one. A home is vacant if it has no occupants and contains no personal property (furniture, clothes, TVs, etc.) An unoccupied home still has personal property in it. The policy will pay for vandalism losses occurring to an unoccupied home. So, if a family moves out of a home and it sits empty while they try to sell it, vandalism coverage ceases on the 61st day of vacancy. If the family merely goes on vacation for three months, vandalism coverage remains in force.

The question of whether a loss is an act of vandalism can sometimes be in dispute. For example, a Utah claim went to court after the insurance company denied payment for a fire caused by arson, claiming that arson is an act of vandalism. The court agreed with the company, finding that arson is a form of vandalism and therefore the insurance did not cover the loss.

The standard policy specifically states that a home in the course of construction is not vacant, so the insurance should cover any associated vandalism losses. Also, since an insurance company does not consider a home with personal property to be vacant, coverage applies to any belongings damaged by vandals. However, an important coverage limitation applies to frozen water pipes. The policy will not cover damage caused by freezing of plumbing, air conditioning, heating and sprinkler devices. So, if the pipes freeze while the family is vacationing in Florida during the winter, the policy will not pay for the resulting water damage. This is not true if the homeowner has used reasonable care to maintain heat in the home or if he has shut off the water supply and drained the pipes.

It is always a good idea to consult with an insurance agent when a home’s circumstances change, whether it is for sale or just an extended period of unoccupancy. The owners should consider loss prevention or control techniques, such as security systems and motion-sensitive lights. The combination of loss prevention and insurance may not eliminate the chance of a vandalism loss, but it will provide some peace of mind to those who must leave their most valuable investment.

Managing the Risks of a Household Move

Posted on by shasha insurance

Every year, millions of people move – from one apartment to another, from an apartment to a home, or from one home to another. Moving is a stressful process, filled with dozens of logistical details and concerns. One set of concerns that many people never consider is whether and how their insurance will apply to their property and any motor vehicles they use during the move.

Many people choose to hire professional movers. Even in experienced hands, moving creates several risks to personal property, including:

  • Property may break, disappear, or suffer collision damage while the movers load it onto their trucks, drive it to the new home, and unload it. If the homeowners must live in a temporary residence until their new home is available, the same risks will apply a second time.
  • The owners may decide to leave some property at a storage facility because the temporary apartment is too small to contain a house’s worth of belongings. Stored property is vulnerable to damage, theft, or flooding, depending on the facility’s location.
  • Property in the temporary residence may be damaged or stolen.

Standard moving contracts limit the movers’ liability for damage to property of others to a certain value per pound, such as 50 or 60 cents. For example, if the movers drop a 100-pound sofa while loading it onto a truck, the most the mover will pay for it is $60. Also, the contracts often absolve the movers from liability for property damaged by “acts of God,” such as flooding, lightning strikes, and hailstorms. While property owners can pay extra to upgrade the coverage, the upgrade normally values the property at its worth after depreciation, it may not cover breakage unless the movers packed the breakables, and it might not cover loss from certain causes such as flooding.

If the owners still have a standard homeowner’s insurance policy in force, it will cover loss to their property while the movers have it, while it is stored, and while it is at the temporary home. The owners have the option of buying coverage that will pay for replacing the property without depreciation, and they can purchase options that will cover the property for more causes of loss.

Many people, especially those purchasing a home for the first time, may rent trucks and move their property themselves. If they have a current homeowner’s or renter’s policy, it will provide the same coverage that the people moving from home to apartment to home have. If the owners have a personal auto insurance policy, it will automatically cover them for liability they may incur for injuries or damages they cause while using the rental trucks. However, it might not cover damage that occurs to the trucks. While some states require insurance policies to cover some rented vehicles, renters in other states may want to consider purchasing the rental company’s collision damage waiver.

Moves can encompass many different circumstances. A family may buy a home but rent it back to the sellers for a period of weeks or months. Empty nesters may sell their freestanding house and move into a condominium. Families may move across the country, shipping some property by truck while they drive or fly to the new region. Regardless, people on the move should consider the insurance implications and discuss them with an insurance agent. Certain types of property (collectibles, musical instruments, artwork) may need special coverage not found in a homeowner’s policy, and a current homeowner’s policy may not cover a newly purchased home that is being rented back to the sellers. The agent can provide valuable guidance on these questions. Moving is stressful, but having the right insurance can make it a little less so.

Preparing for the Deluge: Why Everyone Needs Flood Insurance

Posted on by shasha insurance

In the wake of Hurricane Katrina, no one could ignore the shocking media coverage documenting the devastating destruction. When the levees broke and storm waters surged, homes were swept away, families were left stranded on rooftops and many lost their lives. Suddenly, families throughout the nation were forced to ask themselves a frightening question: “What would happen if, in the blink of an eye, we lost everything to a rush of floodwaters?”

FEMA points that out that everyone needs flood insurance. Unfortunately, too many families assume that they don’t need flood insurance because the government will give them the financial support they need if they lose their home in a major flood. This is simply not the case.

The government only provides disaster assistance if the area where the flood occurs is officially deemed a disaster area. Even when the government does provide financial assistance to families in a disaster area, it’s not a payout—it’s a loan that must be paid back, interest included.

Read on for a few important facts everyone should know about floods and flood insurance.

Eye-opening statistics:

Think you’ll probably never be affected by a flood? Think again. According to the National Flood Insurance Program (NFIP), floods are the #1 natural disaster in the U.S. Here are a few more enlightening flood statistics from the NFIP:

  • Floods and flash floods occur in all 50 states.
  • Everyone lives in a flood zone.
  • 20 to 25% of all flood insurance claims are filed in low to moderate-risk areas.
  • Just an inch of water can cause costly damage to your property.
  • Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
  • Over the past 10 years (1999-2008), the average flood insurance claim paid in the US was more than $45,000.
  • Over the past 10 years (1999-2008), the NFIP paid over $25.5 billion to flood insurance customers.
  • The NFIP awarded over $2.6 billion in flood claims to-date in 2008.

Homeowner’s insurance doesn’t cover flood damage

Damage to your home resulting from a flood is not covered by homeowner’s insurance. Why not? Basically, it’s a way for insurance companies to protect themselves. In the 1960’s, a handful of waterfront communities, all covered by the same insurance companies, were slammed with major floods. The deluge of insurance claims resulted in cataclysmic losses for the insurance industry.

Consequently, in 1968, the federal government created the National Flood Insurance Program (NFIP), which is administered by FEMA. According to FEMA, the NFIP was formed to “reduce future flood damage through community floodplain management ordinances, and provide protection for property owners against potential losses through an insurance mechanism that requires a premium to be paid for the protection.”

It’s not available everywhere

Flood insurance is only available in communities where “the appropriate public body has adopted adequate floodplain management regulations for its flood-prone areas.” Unfortunately, communities are not required to follow proper floodplain management techniques. So, before you start shopping around for flood insurance, you’ll want to makes sure that your community is covered.

Coverage is delayed

If a major storm is about to hit your town and local meteorologists are predicting potential floods, you can’t run out and buy flood insurance and expect to be covered. Generally, your policy must be in place for 30 days before it takes effect.

Not all floods are created equal

Flood insurance only covers damage caused by waters rising from the ground. According to FEMA, the official definition of a flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property).” FEMA specifies that floods are caused by:

·   Overflow of inland or tidal waters

·   Unusual and rapid accumulation or runoff of surface waters from any source

·   A mudflow

·   The collapse or subsidence of land along the shore of a lake or another body of water, caused by erosion or undermining caused by waves or currents of water

If your home is damaged by a rush of water from broken pipes or a main break, FEMA says your flood insurance will not cover it unless “there is a general condition of flooding in the area and flood is the proximate cause of sewer or drain backup, sump pump discharge or overflow, or seepage of water.”

The price varies

The price tag on flood insurance varies, costing anywhere from $223 to $3,000 a year. The price you pay depends on where you live and what type of coverage you want.

Through the NFIP, $250,000 is the maximum amount of money you can receive to rebuild the structure of your home. However, private flood insurance companies can cover far beyond that amount—for a higher premium, of course. You’ll have to pay extra if you want to cover personal items within your home. Contents damaged by a flood are covered only up to $100,000. If you are renting a home, you can purchase flood insurance to cover your belongings for up to $100,000.

When Should You Drop Collision Coverage

Posted on by shasha insurance

Auto insurance can be a large expense in a family’s budget, and it makes sense to look for ways to reduce the cost. In addition to shopping for a better deal, some car owners may look at all the coverages they’re paying for and wonder if they need them all. One coverage that often has a big price tag is collision coverage – the coverage that pays to repair or replace a vehicle that has collided with another car or object. If the owner still owes money on the car loan, the bank will require her to keep collision coverage. Once that loan is paid off, does is make sense to drop the coverage? The answer depends on several factors.

First, how much is the vehicle worth? Several resources are available to help answer this question. Check the classified ads in the newspaper to see what sellers are asking for vehicles of the same age and model. Publications like the N.A.D.A. Guide and Kelley Blue Book can suggest a starting point for determining value. Web sites like Edmunds.com offer calculators that take into account the vehicle’s mileage and condition.

How much does collision coverage cost? This information should be clearly stated on the insurance policy’s information page. Since many auto insurance policies run for terms of six months, the annual cost may be twice the amount shown on the policy. Compare the annual cost to the vehicle’s value. How many years of premium payments would equal the vehicle’s value? If the answer is a low number, dropping the coverage may make sense. Keep in mind two things: Collision premiums decrease as a vehicle ages, stabilizing when it’s several years old. Also, in the event of a total loss, the insurance will pay less than the vehicle’s value because the policy’s deductible will apply.

The amount of that deductible is also a consideration. This is the amount that the vehicle owner must pay out of pocket even when the insurance applies. If a collision destroys a car worth $3,000 and the policy features a $500 deductible, the most the insurance company will pay is $2,500. Therefore, an accurate estimate of the cost of collision coverage must include both the premium and the deductible. The premium decreases as the deductible increases, making the insurance more affordable and the loss less so.

Perhaps most important, the vehicle owner must determine what she can afford to pay out of pocket if a loss occurs. If she has a sizeable emergency fund in the bank, she may decide to skip the coverage and add the savings to the fund. If savings are skimpy and buying a replacement vehicle unexpectedly would present a financial hardship, keeping the coverage may be more prudent. Dropping the coverage also imposes other costs on the owner, such as time spent finding a replacement and negotiating its purchase, finding alternate transportation in the interim, and possibly renting a substitute.

Finally, dropping the coverage may mean the loss of associated coverages. For example, some companies offer rental reimbursement and towing and labor coverage only to customers who buy comprehensive and collision coverage. Some companies may also offer other benefits like “concierge” claim service to those customers. The vehicle owner must decide how important these are to her before she makes her decision.

Ultimately, each vehicle owner must decide how much financial risk she can bear on her own versus the certain cost of the insurance. An insurance agent can provide information on alternative deductibles and offer guidance. However, only the owner can decide whether the cost of the coverage is worth the potential benefit.

Properly Protecting Your RV Investment

Posted on by shasha insurance

A recreational vehicle, such as a motor home, can be a significant investment. RV owners shop for their vehicles carefully before they plunk down tens of thousands of dollars. While finding the right RV and arranging financing are the first steps toward ownership, it is important to pay as much attention to the next step: securing the right insurance coverage for the new vehicle.

Some RV owners may be tempted to simply add coverage to their existing auto insurance policy. Many auto insurance companies will do this, but it might not make the most financial sense for the owner. For several reasons, a special RV insurance policy may better meet the owner’s needs. First, motor homes are larger and heavier than most passenger cars and trucks. In an accident, they are capable of causing injuries and damage much more severe than lighter vehicles. It might make sense for the owners to buy larger amounts of liability insurance for the RV than they have for a car. Liability insurance pays for the owner’s liability to others for injuries or damages. The amount of insurance covering a car may not be enough to properly cover an RV.

Also, insurance companies calculate auto insurance premiums based on several factors, including commuting distance. They assume that the car owner will use the vehicle frequently. These rates are inappropriate for RVs, which normally receive much less frequent use.

Standard auto insurance policies provide little or no coverage for personal belongings that suffer damage in a car accident. Often, homeowner’s insurance will cover these items, but the policies may limit the amounts of coverage or may carry deductibles of $500 to $1,000 or more. Insurance companies that specialize in RV insurance design policies to cover the items that customarily travel in a motor home, like clothes, tools, electronics, dishes and sporting goods.

The RV insurance policy may also do a better job of protecting against damage to the vehicle itself. Comprehensive and collision coverages in auto insurance policies pay the cost of repairing or replacing the vehicle after deducting an amount for depreciation. This can leave the RV owner with a large out-of-pocket cost if he has a balance outstanding on his loan and his vehicle is a total loss. Also, the depreciated payment amount will probably be too little to purchase a comparable replacement vehicle. An RV policy provides Agreed Value Coverage, which means that the insurance company and the owner agree in advance on the RV’s value and the company does not deduct anything for depreciation. The company will need a copy of the RV’s bill of sale or a professional appraisal before it agrees to a value.

RV policies also often provide unlimited coverage for towing and roadside assistance, whereas auto policies may limit this coverage to a small amount. The RV policy may also provide Emergency Expense Coverage to pay for transportation and lodging if an accident disables the vehicle. RV policies may feature “disappearing deductibles,” where the deductibles decrease for every year that the owner is claim-free. Discounts often apply for safe driving, passing driving safety courses and vehicle safety features.

Current and prospective RV owners should seek out insurance agents who have expertise in insuring these vehicles. These agents will have good working relationships with the companies that provide the insurance and will be strong advocates at claim time. They will also be able to explain the different coverage and price options available and recommend financially solid companies. With the right insurance, RV owners can relax and enjoy a mobile lifestyle.

Your Car Has Been Vandalized. Now What?

Posted on by shasha insurance

Late for an early morning business meeting, you grab a cup a coffee and rush out the door—only to discover your car’s windshield has been smashed to bits. Your heart immediately plummets and your hands begin to shake with anger. Now what? Although you may be tempted to burst into tears or launch into a fit of rage, it’s important to take a few deep breaths and focus.

Fortunately, if you have comprehensive coverage, your auto insurance should cover the damage to your car. However, to ensure you receive the money you need for repairs, you will need to follow a few specific steps:

Notify the police

If your car has been vandalized, you should contact the police within 24 hours of the vandalism. It’s important to file a police report so that you have an official record of the incident. This record will help your auto insurance company resolve your claim.

Call your insurance company

You should also contact your auto insurance company to file a claim. Don’t delay—most insurance companies say you must file your claim as soon as possible in order to receive benefits.

Your insurance company may request a police report, personal statements and other documentation. Additionally, if any items that are protected under comprehensive coverage were stolen from your car (such as an aftermarket car stereo), they may ask for receipts for these items. Try to provide your insurance company with as much documentation as possible because this will help them resolve your claim more quickly.

Prevent further damage

Some insurance policies require you to take measures to protect your car from additional damage after vandalism. For example, if your window has been broken, you will need to cover it with plastic or another protective material as soon possible. This will ensure that the interior of your car is not further damaged by rain, snow, wind or other elements. Your insurance company may reimburse you for the materials you buy to protect your car, as long as the expenses are within reason.

If you knowingly leave a broken car window uncovered, and your car interior or electrical systems are damaged by weather, your insurance company will not cover this damage. This is why it’s so important to take measures to protect your car as quickly as possible.

Generally, once the police have taken any evidence they may need from your car and say you can move your vehicle, you should immediately take steps to protect your car from further damage. You do not need to wait for your claims adjuster to assess the damage before taking these steps.

Let your insurance company resolve the claim

Once your insurance company assesses the damage to your car, they will tell you whether or not the damage will be covered. If it is covered, they will give you a few options for repairing your car to its pre-vandalism condition. If your window was broken and your dashboard was damaged, they will be repaired. If your car stereo was stolen, the insurance company will give you a new one comparable to the one you had.

If you have any questions or concerns about your claim, do not hesitate to contact your insurance company. They understand having your car vandalized is an invasion of privacy, and they want to help you through this difficult time.