May 7th, 2012 by Ryan Dye
It happens several times a year in Las Vegas: an apartment complex catches on fire, dozens of residents are displaced, all their belongings are destroyed and only a few have purchased renters insurance. The latest fire happened just a few days ago at the Ashford Manor Apartments. 25 residents were forced to move out and total damage is estimated at over $750,000. It is a tragic story that is repeated far too often and the solution is both simple and affordable: renters insurance.
Otherwise known as an HO4 (homeowners form 4), renters insurance is a essentially a typical homeowner policy with coverage for the structure omitted. The type of coverage include generally includes the following:
- Personal property or contents: your belongings located inside the apartment or home.
- Loss of use or additional living expense: provides for expenses associated with the claim such as food & shelter because you had to vacate the premises.
- Personal liability: protection against injury or property damage caused by you or a member of the household.
- Guest medical: no-fault coverage for injuries sustained by a guest while on your premises.
A quality renters insurance will be written to reimburse you on a Replacement Cost basis, instead of depreciated actual cash value basis. We also recommend adding Personal Injury coverage to the liability. This protects you from claims of slander, libel or invasion of privacy.
You will need to determine the amount of personal property insurance that is appropriate for your needs. We recommend you complete a simple inventory of your possessions and determine an approximate replacement value for the items. Don’t forget your belongings stuffed away in closets or storage area!
Please don’t also make the mistake of assuming your landlord provides coverage for your belongings. Landlord insurance covers only the structure of the rental property. It provides NO COVERAGE for the belongings of the tenant.
The process of obtaining a quote for renters insurance is simple: call us at 888-315-7119 or go to our website for an instant quote. As an Independent Agent we can provide you with quotes from several “A” rated insurance providers and explain which option will best fit your needs. Contact us today for a quote on renters inurance!
April 26th, 2012 by Ryan Dye
Every year in Las Vegas there are thousands of short-term events organized by individuals and businesses. The type of events ranges from large and loud, such as carnivals, fairs, concerts, conventions, parades, sporting events and theatrical performances, to small and simple, such as weddings, networking mixers, holiday parties and private business functions. Whatever the size or purpose, one thing all special events have in common is need for insurance.
Planners and promoters face a litany of potential exposures while organizing and holding a special event. Fortunately, there is specialized insurance coverage designed just for the needs of event holders and the prices are typically very affordable. Coverage you should consider includes the following:
- Event liability: includes general liability (bodily injury and property damage) and options for third party property damage, hired & non-owned auto and liquor liability.
- Inland marine: floater coverage for owned or rented equipment such as lighting, audio/video equipment, props, sets and wardrobe.
- Event cancellation: covers the potential financial loss associated with adverse weather conditions, natural disaster, travel delays and even celebrity non-appearance.
- Workers compensation: if you plan to hire workers during the event, workers compensation will protect you against a claim of employee injury.
- Participant and spectator medical: coverage for injuries that occur as a result of participation in the event regardless of legal liablity. Provides for payment of medical bills only, not compensatory damages.
- Vendors and exhibitors: if your event includes the sale of food and other products by outside vendors, consider purchasing coverage for liability arising from their activities.
A typical special event will last less than 10 days, but some insurance providers will provide coverage up to 90 days, depending on the type of occurence. Most special event policies are also fully-earned, meaning that the premium is not refundable once the policy has been purchased.
At American Best Agency, we have provided insurance on hundreds of events over the years. We have access to dozens to different special event insurance providers and specialized programs. Contact us today at 888-315-7119 or visit our website for a no-obligation proposal on event insurance.
February 23rd, 2012 by Ryan Dye
Workers compensation insurance is often the most expensive policy a business owner must purchase and the rating methodology can be difficult to understand. The base premium is determined by a percentage rate times the payroll. Employees are classified according to job duties, called the classification code. Rates can vary in the extreme – as low as .25% for certain clerical workers to over 15% for high-risk occupation such as roofers and tree trimmers. After the base rate is calculated, a myriad of modifying factors are applied such as scheduled credits or debits and increased employers liability premium.
Frequently the largest modifying factor – and the least understood – is the Experience Modifier, affectionately known as the E-Mod. An E-Mod is a numerical factor that reflects a businesses individual loss (claim) experience. A new venture buying their first workers compensation policy will have an E-Mod of 1.00, which means it has no affect on the overall premium. An E-Mod of .80 indicates a 20% credit and 1.20 indicates a 20% debit. Sounds fairly simple, right? Unfortunately, this is where simple ends and the complicated math begins…
Experience Modifier Calculations
The data used to calculate an E-Mod is compiled by a workers compensation rating bureau. In most states the rating bureau is NCCI (National Council on Compensation Insurance), however a number of states maintain their own bureaus but often share data with NCCI for multi-state employers. To calculate the E-Mod, NCCI looks at premium and loss data for the oldest 3 of the last 4 four years. The mathematical formula used to calculate the E-Mod is as follows:
I+(C*(1-A)+G)+(A*F)
——————————–
E+(C*(1-A)+G)+(A*C)
Where:
A= Weight Factor
G = Ballast
I = Actual Primary Losses
H – Actual Incurred Losses
F = Actual Excess Losses (H-I)
E = Expected Primary Losses
D = Expected Incurred Losses
C = Expected Excess Losses (D-E)
Boiled down, this formula states that NCCI (or another bureau) will weigh the actual losses (claims) and reserves (expected future payments) of the business against expected losses and premium paid for the particular classification rating codes. Using those numbers and a ballast and weighting factor, the E-Mod is derived. It is important to understand that the E-Mod is NOT calculated by the insurance company. Regardless of what insurer provides workers compensation to a business, the E-Mod factor will be applied to final rate. In other words, the E-Mod follows the company not a particular insurance policy.
What the E-Mod Means to a Business Owner
Because the E-Mod can be either a debit or credit, there is a huge incentive for a business owner to be proactive in minimizing the number of claims and mitigating the total amount paid when an injury does occur. Simply put, the E-Mod factor can dramatically lower the cost of workers compensation premiums for those willing to provide a safe working environment. It can also raise workers compensation premiums to point of unaffordability. Over the years, we have seen E-Mod factors as low as .54 (plumbing company with an excellent safety training and incentive program) to a high of 1.79 (small auto repair business with an employee fatality).
While a business owner may not have any control over the base rates for their applicable classification codes they can, to a large degree, affect the E-Mod factor by controlling claims. Our suggestions for minimizing claims and lower the E-Mod factor include the following:
- Make safety a priority. Establish a safety committee and develop a written, comprehensive safety program. Hold regular meetings with employees and discuss injury prevention, ergonomics and proper use of tools and equipment. Incentives work well such as an injury-free bonus program that rewards employees for collectively following safety procedures.
- Mitigate losses. Create a light-duty or return-to-work whenever possible. Remember that workers compensation coverage includes payment for lost wages, not just medical bills. The amount paid for lost wages (known as indemnity) generally adversely affects the E-Mod calculation much more than a medical only claim.
- Utilize free resources. Every workers compensation insurance company offers free safety training, posters, videos and other helpful advice to prevent claims. Yet less than 10% of policyholders actually take advantage of those services. Many states also offer free training and consultation. In Nevada, for example, the Division of Industrial Relations has an entire staff (SCATS) that offers OSHA 10 and 30 training and free safety program consultation.
- Review classification codes frequently. Consult with your agent at least yearly about the role and job duties of employees. Insurance companies have found that around 30% of all employees are misclassified and might be charged a rate higher than appropriate.
At American Best Agency, we have years of experience providing workers compensation insurance to a variety of Nevada businesses. We have access to a variety of A-rated insurance companies that offer competitive pricing and fantastic value-added loss control services. Contact us today for a no-obligation review of your current workers compensation policy.
February 22nd, 2012 by Ryan Dye
In the insurance industry, garage insurance refers to the specific insurance coverage that applies to businesses that service or sells motor vehicles. This can include a mom & pop auto repair business, a large collision repair center, a full-service car wash, franchised auto service centers or a non-franchised used car dealership. Selling and servicing automobiles creates a unique set of liability exposures. Garage insurance is designed to cover those exposures but the policy must be designed by someone that understands the options and specific coverage required.
Think of garage insurance as a hybrid policy that combines elements of business auto coverage and general liability. For example, the policy covers the “garage operations” which incudes the ownership, maintenance and use of a location used for auto repair (or sales and service). So, if a customer slips and falls in the waiting or service area, garage liablity provides bodily injury coverage or premises medical payments.
Likewise, garage insurance provides coverage for the use of non-owned autos left for service or repair. Typically an automotive repair shop would want to test drive a vehicle after performing repairs. In fact, it should the best practice of a good repair shop to actually road test the vehicle before giving it back to the customer. Should an employee of the automotive repair shop hit a pedestrian, or another vehicle, while driving the customer’s vehicle, the garage insurance would respond to a bodily injury or property damage claim.
Damage to the customer’s vehicle is covered by garage keepers legal liability. Ideally, this coverage should be written on a direct primary basis, meaning the shop insurance is first in line to pay for damage, regardless of who is actually at fault. Garage keepers legal reads very much like an auto policy and includes coverage for collision and comprehensive. A deductible typically applies, usually between $500 and $2500 per vehicle with a maximum per occurence.
Auto dealerships need coverage for damage to both owned vehicles (known as open lot coverage) and for non-owned vehicles that have been brought back for service and repair. A dealership will also need liability coverage for the operation of owned vehicles being test driven by prospective buyers.
Auto repair businessowners should also consider equipment breakdown insurance for their compressors, lifts and computerized diagnostic equipment. Other optional coverage such as broad form products and defective workmanship should be carefully reviewed. If the business has storage tanks including fuel and lubricants, pollution liability should be considered as well, in the event a tank ruptures or seaps into surrouding soil.
At American Best Agency, we have many niche markets that we have developed an expertise in writing, such as dry cleaners, taverns and restaurants. Garage insurance in Las Vegas is a area in which we have extremely competitive rates and several highly rated Nevada insurance companies to choose from. We have two agents that focus almost exclusively on garage insurance and understand well the unique coverage needed. We can tailor a comprehensive and affordable insurance program for your automotive service or sales business. Contact Doug Roundy at 702-529-0118 or Ryan Dye at 702-508-9253 or visit us at www.autoriskservices.com.
January 24th, 2012 by Ryan Dye
The State of Nevada, along with most other states, requires auto insurance be carried on every registered motor vehicle. Known as compulsory auto insurance, this law (NRS 485) exists to ensure that motorists take financial responsibility for any damage or injury caused by their negligence behind-the-wheel. Compulsory auto insurance laws benefit the public, much like workers compensation laws, by requiring that a minimum amout of coverage be provided to injured persons, or to repair damaged property.
Despite this law, Nevada still has a problem with uninsured motorists driving vehicles illegally on our streets. In 2009, the IRC estimated 13% of all vehicles in Nevada were operating without insurance. The good news? That number has fallen from prior years, which have been over 17%, depending on who conducts the study. Much of the credit for this decline can be attributed to our Department of Motor Vehicles, and the LIVE (Liability Insurance Verified Electronically) database system.
DMV’s LIVE program is an update to the old IVP system that required insurance companies send in policy data via computer tapes or diskettes. Nowadays, all of your auto insurance policy information is transmitted electronically to the DMV and matched up to your registration. The stated goal of LIVE is to keep uninsured motorists off the road by suspending the registration of vehicles that do not have an active auto insurance policy.
Keep in mind that LIVE is a computer system and things do occasionally go wrong. If you have ever gotten a postcard from DMV that says your auto insurance is “unverified” and you know the policy is active, then something has gone wrong. Occasionally we find the name on the policy doesn’t match to the registration. Or, the VIN on the policy might have an error that creates a mis-match. Whatever the reason, the fix is usually simple and requires only a phone call to our office.
If you actually did have a lapse in auto insurance coverage, expect to pay a fine to reinstate your license plates. The fines for a coverage gap changed in 2011 and are now much more severe. For a first offense of less than 30 days lapse, the reinstatement fee is $250 per vehicle. If the lapse is over 30 days a tiered fine is also charged, ranging from $250 to $1,000. If the lapse is 2nd or 3rd offense, the reinstatement fees and fines are much higher – up to $1750 per vehicle. An SR-22 filing will be also be required if the lapse in coverage is over 91 days.
If you have any questions about the LIVE program, please contact us today, or visit the DMV website at www.dmvnv.com.
January 10th, 2012 by Ryan Dye
Nearly every business collects information from their customers. Some of that data is fairly innocuous – names, addresses, email address, etc. However, other information is much more sensitive, such as credit card numbers, social security numbers, birth dates and other personal financial information. In addition, information about new products, patents, trademarks or other intellectual property might be stored on a computer network, the Internet or in printed form. That information, no matter how well secured, has the potential of being stolen and used by cyber-criminals for nefarious purposes. Identity theft and corporate espionage have become so common, the occurrences hardly even attract the media’s attention anymore. Yet, it is estimated that companies in the U.S. spend around $130 billion dealing with the after-affects of a data breach or cyber attack.
When a data breach occurs, the laws in most states require that a business take action immediately, or face possible civil litigation, fines and penalties. In Nevada, NRS 603A defines and regulates the actions of a business in the event of a data breach. The law requires that any business that collects personal information maintain “reasonable” precautions to safeguard this information (or in the case of electronic payment records, compliance with PCI Security Standards, NRS 603A.215). This law requires that a business notify all parties affected of the data breach, which might include all or some of the following:
- Immediate written or electronic notification,
- Notification posting on the company’s website,
- Publication to a major statewide (or nationwide) media outlet.
The potential cost a business to comply with these regulations can be enormous. Factor in lost goodwill and bad press and the results can be devastating to a small business. Fortunately, at American Best Agency, we have a solution for business owners large and small. Both Hartford and CNA offer insurance products to cover Data Breach and other Cyber Liability exposures. This coverage is available to practically every type of business including offices, retail stores, manufacturing, wholesale and even technology firms such as website designers, programmers and IT professionals.
Data Breach insurance provides coverage for the following types of expenses:
- Network Security Liability: failure to prevent unauthorized access, transmission of malicious code, failure to prevent identity theft.
- e-Media Liability: claims of wrongful publication, defamation, slander, libel or other tort related to your website.
- Notification Expense: mailing, emailing, publication to comply with State notification laws to all affected parties.
- Crisis Management Expense: to hire the services of a law firm or public relations firm in order to mitigate potential harm to the businesses reputation.
In many cases, Data Breach and Cyber Liability Insurance can be added to your existing policy, or written as stand-alone coverage. The prices are very reasonable – starting around $400 per year. Contact us today for a no-obligation proposal – before the unthinkable happens.
For more information, read CNA’s guide on Network Security and Risks. Also check out a very informative video by Hartford that discuss the key elements of Cyber Liability Insurance.
December 8th, 2011 by Ryan Dye
Overall, most consumers are satisified with their choice in insurance companies. Studies by JD Power and other organizations (including the insurance companies themselves) show that about 94% of customers are happy with the outcome of a claim. The insurance industry is very sensitive to public perception and works diligently to provide a positive claim and customer service experience. However, there times when things just simply go wrong.
Occasionally, a claim adjuster and a policyholder fail to reach agreement on the value of a claim. Frequently the consumer is expecting payment beyond the scope of coverage. But sometimes the insurance adjuster fails to provide the level of service required of their position. Contrary to popular belief, insurance adjusters are not rewarded by withholding claim payments. They are paid to fairly settle your loss within the terms of your policy contract. They are, however, human and make mistakes.
Consumers may also find themselves a victim of insurance company customer service bureaucracy, especially when dealing with a very large carrier. Billing problems and underwriting issues can sometimes turn into an absolute nightmare and push the most patient customer over the edge.
Your agent (especially if your agent works for American Best Agency) can be an incredible resource and advocate when dealing with claim and customer service issues. However, there are some issues that even we cannot fix. In those cases, we often recommend consumers enlist the help of the Nevada Division of Insurance, also known as the Insurance Commissioner. The Division of Insurance is tasked with regulating the activities of insurers in Nevada, for most policy types (workers compensation and financial products are regulated elsewhere). In Nevada, the insurance commissioner is appointed by the Governer. Our current commissioner, Scott Kipper, was appointed in 2008 and has an impressive and extensive background, including serving as insurance administrator in Oregon, deputy commissioner in Louisiana and working for the National Asssociation of Insurance Commissioners (NAIC).
The Division of Insurance can help consumers resolve a wide array of issues with an insurance company, including claim disputes. They can also provide you with background information on a particular agent, agency or insurance company. To assist you making smart insurance purchase decisions, the commissioners office has developed consumer guides for auto, earthquake, flood, home, title, medicare and health insurance. These guides are easy to understand and provide invaluable information for consumers.
To engage the help of the Division of Insurance, consumers can make a formal complaint online or in-person. A Division employee will contact the insurance company, review the facts and render an decision. The Division of Insurance has the legal authority to impose fines and penalties on insurance companies for improper conduct. You can bet insurers take the decision of a consumer complaint very seriously. Consumers can also utilize the Division of Insurance to investigate a particular insurance company before purchasing a policy. The NAIC tracks consumer complaints and financial information about particular insurers (searchable online) and the Division can help you make better sense of the data.
The Division of Insurance also audits insurance companies and agents on a regular basis. These “Market Conduct Studies” ensure compliance with State law and make sure insurance companies are treating consumers fairly. The Division also advises and recommends changes in insurance code to the state legislature to make sure Nevada has a comprehensive and modern body of law.
The Nevada Division of Insurance is a governmental agency dedicated to protecting the rights of consumers. As an Independent Agency, we appreciate the need for transparency and consumer protection. Our goal make sure our customers are treated fairly and that claims are settled promptly. When that doesn’t happen, we appreciate the hard work and help that the Division of Insurance provides to our customers. If you have an issue, please contact us today. Let us show you how we live up to our motto: We work for you!
November 3rd, 2011 by Ryan Dye
The Commercial General Liability policy is an interesting bit of insurance literature. It starts with a one-page insuring agreement that explains the policy will provide coverage for “bodily injury” or “property damage” claims for which the insured is legally obligated to pay. Subject to the actual policy limits, the insuring agreement appears very broad and open. However, the next 4 or so pages is a series of exclusions – 16 in total – that limits the coverage of the general liability form to more specific conditions. Some of these exclusions make perfect sense and serve to ensure certain types of claims are directed to a more appropriate insurance policy. For example, claims related to workers compensation laws and employers liability are excluded. Property damage or bodily injury related to the use of an automobile, watercraft or aircraft are excluded. The intent of these exclusions is clear: auto claims should be handled by and auto insurance policy and employee injuries claims by workers compensation.
However, in every ISO General Liability policy since 1988, there is hidden in plain sight an exclusion that eliminates coverage for damage to ”personal property in the care, custody or control of the insured” and damage to “any part of real property…on which you are performing operations.” These exclusions can potentially be the source of denied claims for the insured and it is important policyholder’s understand the intent and know how to prevent denied claims from occuring. In the ISO CG 00 01 12/04 edition of the CGL policy, this exclusions reads as follows:
j. Damage To Property”
Property damage” to:
1) Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another’s property;
(2) Premises you sell, give away or abandon, if the “property damage” arises out of any part of those premises;
(3) Property loaned to you;
(4) Personal property in the care, custody or control of the insured;
(5) That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of those operations; or
(6) That particular part of any property that must be restored, repaired or replaced be-cause “your work” was incorrectly performed on it.
Paragraphs (1), (3) and (4) of this exclusion do not apply to “property damage” (other than damage by fire) to premises, including the con-tents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Prem-ises Rented To You as described in Section III – Limits Of Insurance. Paragraph (2) of this exclusion does not apply if the premises are “your work” and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to “property damage” included in the “products-completed operations hazard”.
For the purpose of this article, we will focus on J.3, 4 and 5. In reality any any service industry that works on the property of someone else, whether it be real property or personal property, could be affected by these exclusions. For example, dry cleaners, automotive repair, appliance repair, contractors, handymen, pool cleaners and janitorial companies all work on the real or personal property of others.
The intent of this exclusion is similar to that of automobile and workers compensation claims. The CGL coverage intends the insured purchase appropriate coverage for their unique exposure. In other words, not every business has an exposure to claims that might fall under the “Damage to Property” exlusion. Retail stores, wholesalers and offices rarely, if ever, have the property of others loaned to them, nor do they typically take custody of customer goods for service and repair. For businesses that do have an exposure, coverage can be provided by various types of property, inland marine (such as bailee) or general liability endorsements.
A dry cleaner for instance, should purchase Bailee coverage that specifically provides for loss or damage to the clothing of customers in their care, custody, control. Automotive repair shops should purchase garagekeepers legal liability and broad form products to provide coverage for customer vehicles left for repair. Other industries (contractors, handymen, service and repair businesses) should consider policy endorsements such as “broad form property damage” or a “care, custody, control extension”. Please note that many of these forms are manuscript (written by the insurance company for a specific risk) and therefor require careful review. A ”care, custody, control extension” endorsement will probably have a sub-limit of coverage lower than GL occurence limit. In addition, many insurance companies that work with contractors are hesitant to issue broad form property damage coverage in the fear they might unintentionally provide coverage for defective workmanship claims.
As a policyholder, it is critically important you understand your insurance coverage before a claim occurs. Should you every have questions about your policy coverage, conditions or exclusions, please contact us to discuss it further. We want you to be comfortable with your policy and feel assured you have the coverage your business needs.
October 25th, 2011 by Ryan Dye
Business owners have plenty to worry about in this economy, especially just keeping the doors open. Employment practices liability insurance, or EPLI, can eliminate the worry of an employee lawsuit related to hiring, firing or sexual harrassment.
Types of Employment Lawsuits
In every State, employees are granted certain rights and have expectations of their employers. For instance, an employee has the right to work in an environment free discrimination and harrassment (i.e. sexual harrassment). Empoyees expect that will not be fired or passed over for promotions based on gender, ethnicity or religion. Unfortunately, employers sometimes make mistakes in hiring, firing, promoting workplace equality and ensuring an environment free of harrassment or discrimination. Employees can and will make claims of discrimination (based on age, sex, race, religion, color and national origin), sexual harassment, wrongful termination, infliction of emotional distress or stress and breach of contract, among others.
Preventing Employement Related Lawsuits
Employers should carefully evaluate their employee manual and make certain the policies and procedures are fully compliant with State and Federal law. The employer should also ensure they are following the written procedures with exactness. Discipline should be consistent, fair and documented. There should be no appearance of favoratism or unequal treatment, even in the smallest business. Complaints from employees should be take seriously, handled quickly and well documented. Taking these steps might prevent an employee from suing and also provides a defense in the event a lawsuit occurs.
Benefits Provided by EPLI Coverage
Should a business be sued by a former, prospective or current employee, EPLI coverage will pay for the cost of defense including attorney fees and court costs, regardless of the outcome of the case. The policy will also pay for any judgements awarded against the business or a settlement reached. Criminal violations or charges brought against the business owner, corporate officers or other employees are NOT covered. Punitive damages, fines and other civil penalties may also not be covered, depending on the policy verbiage.
The Cost of EPLI Insurance
In Nevada, EPLI coverage is very reasonable, but prices do vary by State or Region. Many small business policies (BOP’s) include a base amount of EPLI, such as $10,000, with higher limits available. Some company’s may need to purchase a stand-alone EPLI policy, with pricing generally starting around $750 per year for $1,000,000 of coverage. The number of employees, coverage limit, type of industry and location are the major factors in pricing EPLI insurance.
At American Best Agency we can provide you EPLI quotes from several “A” rated insurance carriers and explain the pro’s and con’s of each quote. Please contact us today for no-cost proposal.
September 30th, 2011 by Ryan Dye
Welcome to the 21st century: the ever changing and evolving age of information and technology. The way we communicate and interact with others has been revolutionized by social media and email. Smartphones, tablet computers and wireless internet allows us to work anytime, anywhere. Everything around us, from the cars we drive to the way we produce electricity, is quickly being transformed by technology.
In the shadow of all this technological progress, you know what probably hasn’t changed much? Your lonely and unloved insurance policy. Filed away in some forgotten drawer, it probably hasn’t been updated since the VHS tape went extinct. Your 20th century insurance policy very likely needs a 21st century update.
Remember, insurance is not a one-size-fits-all solution. Sitting down with your agent every year or so is a great way to ensure your coverage still provides fits your individual needs. Contrary to popular belief, an insurance review is not a sales tactic to get you to buy more coverage. Instead, it is a way to evaluate policy limits, deductibles, available discounts and discuss any life changes that might affect your insurance.
We find the following types of insurance coverage are often neglected and need to be reviewed frequently:
- Homeowners insurance: Especially pay attention to the coverage “A” or Dwelling limit. Despite the depressed real estate market in Nevada, you may find your coverage is not adequate to rebuild your home. Another concern is the personal liability limit. If you only have $100,000 to $300,000 considering increasing the limit to $500,000 or higher. The difference in price is usually only a few dollars per year.
- Auto insurance liability limits: The required minimum limit of $15,000/30,000/10,000 has not changed since 1979 (NRS 485.185). The cost of vehicle repairs and injury claims, however, has increased dramatically in the last 30 years. We recommend you consider purchasing higher limits of liability and, much like homeowners insurance, the cost difference is surprisingly small.
- Comprehensive and collision deductibles: If your vehicles are older, it might be time to drop physical damage coverage. Consider the current market value of your vehicle (use Kelly Blue Book as a reference) and weigh that against the cost of the physical damage coverage, plus your deductible. For example, if you are paying $250 per year for comprehensive and collision coverage and have a $500 deductible, your true insurance cost is $750. If this cost represents 25% or more of the vehicle’s value, it might be time to drop the coverage.
- Available Discounts: Insurance companies advertise a mind boggling number of discounts to prospective customers. Those discounts are also available to existing customers, but often only if you ask for them. For example, many insurance companies give discounts for education level and occupation (i.e. teachers, civil servants, physicians, military). Other examples of discounts include alarm systems, mulitiple policy or package credit, defensive driver, renewal, passive restraint, low mileage and early signing.
- Life Insurance: Are your benficiaries up to date? Does the coverage limit reflect your current needs? Have you compared term life insurance rates in the last few years? Life insurance policies are notorious for being a “buy it and forget it” purchase but they should be reviewed and updated just as often as your auto and home insurance policies.
- Life Changes: Take a look at our article entitled “Keep Your Insurance On-Target” about events in your life that might warrant a review of your insurance policies.
If you think your insurance policies might be out-of-date, please contact us for a no-obligation review. It is completely free and only takes about 30 minutes. We look forward to speaking with you!
