Category: Personal

Why Condo Owners Need Insurance

Posted on by shasha insurance

If you own a condominium, you may think you don’t need insurance protection. Think again. Although your condominium association offers a “master” insurance policy that covers the building and commonly owned property, this insurance probably does not protect your upgrades, furnishings and other belongings.

That means if a burglar breaks into your condo, a fire causes smoke damage to interior walls of your unit or a visitor falls and hurts himself inside your home, you will not be covered by your condominium’s general insurance policy. This is exactly why you need your own condo owner’s policy. This personal coverage could protect you in the event of theft, damage and personal liability situations.

Every condo is different

Before you purchase condo insurance, you should find out exactly what is covered by your condominium association’s master policy. Generally, these policies cover only the structure of the building, but it varies depending on your state and particular condominium. It’s important to do your homework and find out exactly what is and is not covered so you can make sure your personal policy covers the rest.

What kind of coverage do you need?

The type of coverage you need greatly depends on your unique situation. However, you’ll definitely want to protect yourself against theft, damage and personal liability incidents. Depending on where you live, you may also need flood insurance or other special coverage.

A professional insurance agent can help you figure out exactly what kind of coverage you need. You may want to ask yourself the following questions as you decide on the details of your insurance policy:

  • What parts of the condo am I responsible for according to my condo association’s bylaws?
  • How much would it cost to replace or repair my condo?
  • How much are all of my personal items worth?
  • Do I have especially valuable items in my condo, such as jewelry, antiques, fine art or collectibles?
  • Do I run a business out of my home or often work from home?

You should also think about liability coverage. Unfortunately, we live in a lawsuit-happy society today. So, if a visitor falls down your stairs and breaks his leg or slips on some water in the kitchen and throws out her back, they may ask you to pay for medical expenses, lawsuit costs and other compensation awards. That’s why it’s so important to make sure your insurance policy includes liability protection.

Don’t skimp

Whatever you do, don’t assume that your condo association has you covered. This assumption could cost you thousands of dollars in the long run. Do some research and find out exactly what kind of protection your association’s insurance policy provides. You’ll probably discover that it’s not nearly enough to protect your personal property and belongings.

An expert insurance agent can help you determine exactly what kind of coverage you need. She may be able to offer you special discounts if your condo has smoke detectors and central station burglar and fire alarms. You could also save by purchasing a home and auto insurance package through the same insurer.

After the Accident – Working with the At-Fault Driver’s Insurer

Posted on by shasha insurance

You have just emerged from a car accident, but the good news is that you are not at fault. Now comes the task of successfully dealing with the other driver’s insurance company. In order to begin, you must collect certain details at the site of the accident from the at-fault driver: their name, address and phone number, the name of their insurance company, their policy number, their claims number and their insurance company’s address. With this information you can begin the process by making a phone call to the company in question.

Now, it is the responsibility of the at-fault driver to tell their insurance company about the accident; unsurprisingly, many of them are reluctant to do so. Therefore, it is a good idea for you to make the call in case they do not. During the call, tell the insurance company that you were involved in an accident with one of their policyholders and also inform them of any property damage or personal injuries, if any. At this stage, it is only necessary to report the simple facts of the accident without telling them who was at fault. Your opinion is not necessary in order for the police to determine who was at fault, and for the insurance company to follow the police’s recommendation.

When you are involved in an accident, and you believe that you are not at fault, it is best to contact your own insurance company anyway. This is important because it establishes your own good faith. It is especially important if the other party or their insurer denies that they are responsible for the accident, because this can help you. The insurance company of the at-fault party is completely responsible for reimbursing you for any damages to either your person or your property. Nevertheless, there are certain strictures that must be followed in all situations.

The most important rule is never take the law into your own hands, under any circumstances. After you have informed both your insurer and the other party’s insurer, ask for an authorization for car repairs from the at-fault driver’s company. You will be asked to get an estimate of the necessary work from a local garage that you may choose. The majority of states only allow insurance companies to recommend garages and not only declare their services valid at one of their choice. Make the estimate known to the insurer as soon as possible.

Typically, this is an uneventful process, but sometimes the at-fault driver’s insurer can inform you to seek payment from your own insurer due to lack of evidence. Therefore, obtain the police report as soon as possible and notify your insurer at once. The report will clearly spell out who is at fault for the accident; taking a copy to the at-fault driver’s insurance company will probably clear up any remaining misunderstandings. As a matter of fact in most states it is against the law for the insurer to deny a claim when the liability is “reasonably clear.”

Immediate Steps to Take After an Auto Accident

Posted on by shasha insurance

A car accident is always traumatic for any driver. Even if the damages are relatively minor, and both parties are uninjured, you may find yourself panicking over what to do next. There are important steps to take following any crash, no matter how severe.

Since car accidents involve insurance companies, both drivers need to collect the necessary information. They can do this by following six basic steps. This article will outline these steps and make their priorities clear.

1) The most important thing is to stay calm at all times. Letting the emotions get out of control will only make the situation worse, and make it harder to take care of the things that need to be done.

2) After remaining in control, the driver must make sure that they and their passenger(s) are okay and unharmed. While it is important to move as far off the road as possible, it is also important if not more so to remain at the scene of the accident. If the driver or one of the passengers can do so, wave oncoming traffic into the other lane or warn traffic with hazard lights and flares, if available.

3) Alert the appropriate authorities by calling 911 right away. If a cell phone isn’t readily available, flag down a passing car and ask them to call.

4) The driver must contact their insurance company regardless of whether they were at fault. The sooner the insurance company knows, the sooner they can start working to resolve the claim. Both drivers should call their respective companies and report the accident, even if one of them was at fault.

5) For legal reasons, the driver must not admit fault to anyone. All those involved with the accident should only talk about it with the police and their insurance companies.

6) Finally, collect the information from all parties, which means that each driver must collect information from any witnesses. Most importantly, each driver should get the name of the other’s insurance company and their policy number.

Discourteous Driving Can Be Deadly

Posted on by shasha insurance

Basic decency during driving can seem hard to come by these days. “Road rage” refers to the ability of perfectly sane people to become angry maniacs when behind the wheel of a car. On average, at least fifteen hundred people including men, women and children are killed or injured each year in America due to aggressive driving. Aggressive driving such as tailgating, cutting off other vehicles, and giving the one-finger salute are unfortunately quite common in the United States.

In fact, the problem of discourtesy when driving is responsible for as much as thirty percent of all traffic collisions. Drivers routinely ignore the basic rules of driving, engaging in overtly aggressive behaviors even to the point of murder. One of the most important situations where discourtesy results in injuries or death to other drivers is in right-of-way situations. Whenever two vehicles are driving along a path that puts them at odds with one another, the problem of right-of-way becomes boiled down to who goes first.

Right-of-way is always granted by the other driver, but the problem becomes exacerbated when drivers do not follow the rules concerning right-of-way. Unfortunately, being legally right does not mean being safe. Drivers who cede their right-of-way to the other driver might actually put themselves at risk.

Consider a common situation where, in congested traffic, a driver wants to be let in to the neighboring lane and the driver gives it to them. Before doing so, the driver must check for traffic coming from the rear. If there are two or more lanes going in the same direction, the driver also has to be aware of drivers passing him on the left, since the other driver could pass into that left lane. Other drivers who are not aware of the first driver may not understand that they are yielding their right-of-way.

Drivers must also remember to consider alternate routes. Sometimes avoiding left turns altogether can be the best choice. If a driver has missed a turn and needs to get back to the intersection, performing a U-turn might actually be very dangerous.

When you head it on the road today set an example, so that other drivers can be reassured that there is at least someone who is attempting to drive responsibly.

Parents Shape Teens into Responsible Drivers

Posted on by shasha insurance

Besides graduation day, the day a teenager gets their driver’s license is one of the most important days of their lives. It’s something they’ve looked forward to for years, that feeling of freedom once they hit the open road. Unfortunately, parents don’t always share the same vision. As your child begins to get behind the wheel, there are some things you can do as a parent to help maintain your child’s safety, and your sanity.

Kids learn from the examples they are given, which means that children can pick up on their parents’ bad driving habits. On the other hand, if you come to a complete stop at stop signs and consistently wear your seat belt, there’s a good chance your child will follow suit. Safe and responsible driving is just another thing parents pass down to their children.

Department of Education statistics show that students perform better in school when their parents are involved in their education. This holds true for driver’s education, as well. Parents who understand the process of getting your license and keep updated on what their child is learning in driver’s ed can offer more relevant advice and create opportunities for their child to practice necessary skills.

Teenagers also need a framework for understanding what consequences exist when drivers are not safe and responsible. Parents must help their teen driver understand that getting tickets and into accidents will raise their insurance premium and put their driving privileges into jeopardy. Furthermore, unsafe driving can lead to life-changing injuries to themselves and others. Most insurance providers offer some sort of “good student” discount, which is a good way to tie in school performance with driving.

Sometimes, all the preparation in the world cannot prevent an auto accident from happening. This is why parents must also advise their teen on what to do if they were to get into an accident. Tell your child to immediately call the police and then call home after an accident happens. Also, have your child keep a pen and paper in their glove box alongside other important documents, to take down the names and addresses of those involved and witnesses to the accident. Finally, be sure to remind them that they should never admit fault to the accident with anyone other than the police and their insurance company.

If the threat of rising insurance costs isn’t enough to encourage your teen to drive safely, then maybe some sobering statistics will show them the way. An accident study from the National Safety Council has determined that nearly 50% of the traffic deaths in the U.S. are connected to drinking alcohol, with 16 to 24 year olds making up half of that population. Even more shocking, injuries from traffic accidents is the leading killer of young people aged 6 to 27. On the brighter side, wearing your seatbelt and driving a car equipped with air bags nearly doubles your chances of surviving a serious accident.

Remember that driver’s education doesn’t stop once your child gets their full permit, it’s an ongoing process. The more knowledge you share about defensive driving and the dangers of getting behind the wheel after drinking, the more they will practice responsible driving in their own lives. Believe it or not, your teen will take your words to heart, which can help you worry less after you fork over the keys.

Have You Tested Your Home’s Fire Alarms Lately?

Posted on by shasha insurance

A recent study from the National Fire Protection Agency, or NFPA, found that around 95% of U.S. homes have one or more smoke alarms installed throughout the house. Unfortunately, that same study revealed that the number of homes with nonfunctioning smoke alarms vastly outnumbered the amount of homes with no alarms at all. This shows that many homes are relying on broken and battery-less alarms to save their lives in the event of a fire. By following the advice of experts and maintaining a testing schedule, you can make sure your alarms will be ready when you need them the most.

Fire safety begins with purchasing the right type of smoke alarm, as dictated by your building code’s power requirements. The common types that are required vary from standard battery-operated alarms to ones that are wired into the home’s electricity. For individuals who have difficulty hearing, smoke alarms with flashing lights and devices called “bed shakers” are used along with audible alarms. Always purchase alarms that have been listed or approved by Underwriters Laboratories (UL), or a similar independent tester.

How Many is Safe?

The NFPA publishes the Life Safety Code 101 to inform people of the regulations and best practices when it comes to fire safety, and in this case, the amount of smoke alarms to install. It recommends having at least one alarm on each floor, including basements and attics, and within 15 feet of bedrooms. Place smoke alarms inside of bedrooms if family members usually sleep with the door closed. Remember, the strategic placement of smoke alarms is just as important as keeping them powered.

The building codes that govern homes built in the last few years are significantly trying to improve residential fire safety. Most require hardwired alarms that are interconnected, meaning that all alarms will sound if one detects smoke or intense heat. Also, the new codes require the installation of smoke alarms in every bedroom of the house.

Installing the usual store-bought smoke alarm is really quite simple and will require only a drill and a screwdriver. Hardwired and interconnected alarms should be installed by a qualified electrician. Battery back-up should also be used with electrically powered alarms, as well.

Fire safety experts offer more installation advice:

* When installing a wall-mounted alarm, locate it between 6 to 12 inches below the ceiling.

* Ceiling-mounted alarms should be installed more than 6 inches away from any wall.

* On sloped and vaulted ceilings, located the alarm at the highest point.

* In open stairways, alarms should be placed near the top of the staircase.

* In closed stairways, like basement steps, the alarm should be placed at the bottom of the staircase.

* Do not install alarms in drafty areas of the house, like near windows, ceiling fans, or forced-air registers.

If you have any questions about installing fire alarms, call or email your local fire department. They will be happy to help you better protect your home against fires and show you the optimal places to install your smoke detectors.

Choosing a Home Improvement Contractor with Confidence

Posted on by shasha insurance

Whether you’re looking to do to some major remodeling or if your home just needs some basic repairs, deciding on a contractor for your home improvement project can be difficult. It’s certainly not a decision you should make in haste.

Most homeowner’s insurance policies include four basic types of coverage:

* Repairs to the home because of damage caused by specified disasters

* Replacement of items lost due to theft or damaged by specified disasters

* Liability coverage

* The cost of temporary housing in the event that a specified disaster causes significant damage to the house

While all these protections are equally important in the long run, when it comes to home improvements, your liability coverage will take the forefront. This form of protection will insure you against any injury claims made by uninsured workers, as well as property damaged during the project. Liability protection will also pay for the cost of your legal defense in any related court cases and will cover any money awarded to injured workers, as defined by the terms of your policy.

Of course, your home insurance shouldn’t come into play if you’ve selected a highly qualified contractor to get the job done. Before you make the hire, set up an interview so you can ask some of these questions:

* How long has the business been around?

Businesses that have withstood the test of time generally do good work and have enough customer reviews to back it up. Look for reviews on the internet and use a consumer protection agency, like the Better Business Bureau, to check up on their complaint history. Remember to take internet posts with a grain of salt, and that BBB records don’t always tell the whole story.

* Do they hold a state license?

Most states license plumbers and electrical contractors, but just 36 states have a license or certification for contractors and home remodelers. You can find out what types of contractor’s licenses are available in your state by contacting your local building department. If your state requires home contractors to be licensed, do not hire anyone without seeing proof of their licensure.

* Are they bonded and insured?

Only hire a contractor who carries insurance that covers against damages to your property, personal liability, and worker’s compensation coverage. If you hire an underinsured contractor, your insurance will be making up the difference if something should happen.

* Will subcontractors be used during the project?

Subcontractors are not necessarily a bad thing, just make sure to meet them first so you can check out their credentials. Subcontractors are also a good source of honest information about the prime contractor. A little known fact for many homeowners is that a “mechanic’s lien” can be placed against your home if the contractor does not pay their subcontractors, so ask them if the contractor makes prompt payments. While negotiating the terms of your home project, ask the contractor and all subcontractors to sign a lien waiver or release statement that keeps subcontractors from coming after your money if bills go unpaid.

The Federal Trade Commission has issued a warning to homeowners to help spot disreputable contractors and scammers are out there looking for your business. Here are a few telltale signs of a shady contractor:

* Goes door-to-door soliciting business

* Wants the names and phone numbers of your friends who may need service

* Offers a discount for using “leftover materials”

* Only takes cash payments

* Unable to get the proper building permits

* Has an unlisted phone number

* Considers your project a “demonstration job”

* Uses high-pressure and intimidating sales tactics

* Offers guarantees without any paperwork to back them up

* Wants the payment up-front and in full

* Offers financing through a “personal friend” of the contractor

Remodeling can make you feel like your home is brand new and can add thousands to its resale value, but without doing your homework before hiring a contractor, you could be left regretting your decision for years to come.

Apples to Oranges: Not All Auto Insurance Policies Are the Same

Posted on by shasha insurance

When it comes to auto insurance policies, there are countless options on the market. However, not all policies are created equal. While you may be tempted to buy the insurance policy with the lowest price tag, this choice could end up costing you untold amounts of money in the long-run.

It’s extremely important to read the fine print and understand the differences between the various auto insurance options available to you. Here are a few tips for choosing the best policy:

Know your limits

Some auto insurance policies are quoted with extremely low limits, leaving their policyholders dangerously under-insured. In some states, the recommended liability limits are as low as $25,000. This meager amount often doesn’t come close to the actual worth of the policyholder. As a matter of fact, some experts say that up to 50 percent of U.S. drivers do not have enough auto insurance coverage.

It’s important to make sure that you aren’t one of the thousands of under-insured drivers. Otherwise, if you are in a car accident, you could find yourself forking out your hard earning money—even though you have auto insurance!

When you’re on the market for a new auto insurance policy, be sure to explain your specific needs and financial situation to your insurance agent. A true professional can run a detailed assessment of your risk profile to ensure that you receive the proper amount of liability coverage.

Covering the gap

Oftentimes, auto insurance policies don’t cover the full replacement value for your car if it is totaled. While the carrier may pay for the total losses based on the actual cash value of your vehicle at the time of the accident, many carriers don’t pay the full replacement cost of your original car purchase. In other words, you are not protected against the depreciation of your car with these policies.

If you have this kind of policy and your car is totaled, you’ll end up paying the difference out of your own pocket for a comparable vehicle. This is known as the “replacement gap” in the industry.

However, there are some auto insurance policies that can help you avoid this gap. Many of these policies cover the full purchase price of your car, including taxes and license fees if your car is totaled within the first year after purchasing. Oftentimes, these carriers will even waive your deductible. Then, every year after the first year, your car’s value is determined by Blue Book, the auto industry’s standard vehicle pricing guideline.

Get customized

If your family has more cars than drivers, you may be able to get a discount if you choose the right carrier. Many families who own a recreational vehicle or “work truck” end up paying higher premiums. However, many of these cars aren’t driven on a regular basis—and therefore shouldn’t carry such high rates.

If you find yourself in this situation, try to find an insurance carrier that offers customized rates and deep discounts for rarely driven vehicles. A reputable insurance agent can help you find the best policy for your particular needs.

Read the fine print

When you first obtain auto insurance, you may notice that a few items are not covered by the policy. While this may not seem like a big deal at the time, these uncovered items can really stack up when you’re in an accident.

For example, many policies require that you only take your damaged vehicle to “in-network” repair shops. This can end up costing you a pretty penny and a lot of hassle after an accident. If you want to avoid these kinds of headaches, be sure to find a carrier that allows you to choose your own repair shop without paying a penalty fee. Read the fine print and make sure the policy covers all the items that are most important to you.

Work with a pro

At some time or another, most of us have received phone calls from insurance “sales representatives” trying to sell us auto insurance. These salespeople, who often work from phone scripts, don’t truly understand all the ins and outs of auto insurance—much less what kind of policy your unique situation requires.

This is why it’s so important to work with a professional independent insurance agent when purchasing auto insurance. Such an agent can guide you through the details of each different policy and recommend the most appropriate option for your distinctive needs.

As you work with an independent insurance agent, be sure to discuss your net worth, your opinions about asset protection and what you expect when it comes to handling insurance claims. This will ensure that the agent pinpoints the best policy that meets all of your needs and fits your preferences.

Insure Home Improvement Projects to Ensure Success

Posted on by shasha insurance

Although we all understand the importance of homeowner’s insurance, many homeowners never think about insuring their home improvement projects. Before you invest a boat load of money in home renovations, it’s critical that you insure your project. Otherwise, you could leave yourself vulnerable to some serious financial stress.

Before you don your hard hat and get to work on that home improvement project, take these four simple steps to make sure you’re protected:

1. Give your insurance agent a call.

There are so many things that can go wrong during a home improvement project. For example, what if your beautiful new kitchen cabinets are stolen from your backyard before you’ve had a chance to install them? What if a rainstorm causes damage to your floors during a major re-roofing project?

Your plain vanilla homeowner’s policy may not cover any damage done to your home during renovations. This is why it’s so important to call your agent and find out what’s covered during the construction process. You may find that you’ll need to change your insurance coverage temporarily until the renovations have been completed.

Tell your insurance agent exactly what kind of home improvement project you have planned. He or she can walk you through your short-term coverage options to make sure you’re fully protected.

You probably won’t need any additional insurance coverage if the project is relatively small. For example, if you’re simply switching out a couple of appliances in your kitchen or replacing fixtures in your bathroom, there’s probably no need to call your agent. However, if you’re spending more than $25,000 on a home renovation, you should definitely call.

2. Work only with insured contractors.

If you’re planning on hiring a contractor to work on your home renovations, you’ll need to look for more than just an experienced company. You’ll also want to make sure the company has general liability insurance as well as workers’ compensation for its employees. Ask the contractor for a certificate of insurance to confirm their coverages.

While you may be tempted to hire a cheaper contractor who lacks insurance, remember that you’re taking a huge risk in doing so. If something goes awry during the project, you could be stuck with a hefty bill. On the other hand, when you hire an insured contractor, you will not be held liable if a worker is injured during the project. Plus, you’ll be covered if the contractor causes any damage to your home during the project.

3. Obtain the proper permits.

Depending on where you live, you may need to obtain building permits before you begin your home renovations. Typically, permits are required if you are altering the structure of your home, such as adding on a room or a deck. Contact your city or county government offices to find out whether or not your home improvement project requires a building permit.

If a building permit is necessary, you or your contractor will need to apply for the permit and adhere to the specified building codes. Once the job has been completed, a building inspector will come by to check out the renovations and ensure that everything is up to code.

It’s extremely important to obtain the proper permits when necessary. If you add a room to your home and it does not meet your local government’s building codes, your insurer may not cover the extra room.

4. Update your insurance policy.

Once you have finished your home improvement project, contact your insurer to determine how much value the change has added to your home. This is extremely important. If you do not notify your insurance company about an expensive addition, you’ll be grossly underinsured if something happens to your home.

Cover Your Classic with Collector Car Insurance

Posted on by shasha insurance

Do you dream of making heads turn as you cruise around town in a beautifully restored vintage roadster? Have your eye on a classic convertible that brings back fond memories of your high school days? Whether you’re planning to buy a sporty 1960’s classic or a rare vintage vehicle that was produced more than 100 years ago, you’ll need to find the right insurance to cover your unique dream car.

A car you can appreciate

Unlike modern cars, restored classic cars actually appreciate in value as they grow older. That’s exactly why you shouldn’t cover one of these unique vehicles with standard car insurance.

If you total your daily driver, your car insurance company pays you only the actual cash value (ACV) of the car. When insurers calculate this amount, they include the car’s depreciation in the formula. Because new cars are worth a little less every year, you rarely receive the full amount that you paid for the car.

Because classic or antique cars increase in value each year, you’ll need to cover it with special collector car insurance. Such a policy will cover the full value of your vehicle if it is totaled.

Defining a classic

The first step to finding the right insurance policy for your special car is determining if it actually falls into one of the collector car categories. While car enthusiasts sometimes disagree about the precise category years, here’s how these cars are typically defined:

  • Veteran or Antique cars were manufactured before 1903.
  • Vintage cars were manufactured between 1903 and 1933.
  • Classic cars are often a source of controversy among car collectors. Some say classics are vehicles manufactured before 1973 while others say they are at least 20 years old.

If your dream car falls into one of these categories, you should definitely try to cover it with a collector auto insurance policy.

The requirements

Of course, you’ll have to prove that your collector car meets a certain set of standards before an insurance company will agree to cover it under a collector car policy. Every insurer has a different list of prerequisites, but here are some of the most common requirements:

  • Your vehicle must be at least 19 years old and in good or restored condition.
  • The car must be stored in a fully enclosed and locked building.
  • You must mainly use the car for exhibitions, car shows and other such activities. It should not be your primary mode of transportation.

Surprisingly affordable

Many car enthusiasts are surprised to learn that collector auto insurance is relatively inexpensive. One reason the coverage is so affordable is because most insurance companies limit the number of miles you can drive your car each year—usually between 1,000 and 5,000 miles. After all, the less time you spend on the road, the less likely you are to have an accident.

Depending on your state and the insurance company you choose, your coverage options will vary. This is why it’s so important to do your homework and discuss all your options with a professional insurance agent.

Once you chose a policy, be careful to complete all the insurance paperwork as accurately as possible. One small mistake could lead to delayed payment or even denied claims if your car is damaged.