New Drive-By Spam Infects Those Who Open Email — No Attachment Needed
If you think you don’t need to be concerned about Cyber Liability Insurance Coverage… Think Again! Basic coverage is now available – ask us for a quote!
Where Does The Money Go?
Here is a little calculator that will show you where your tax dollars go. I thought it might be helful in this important election year!
Rental Car Insurance: To Buy or Not to Buy?
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As the holiday season approaches, millions of Americans will take to the roads to visit family and friends. Since many will make the trip in a rented car, it’s an appropriate time to discuss one of the most frequently asked questions of agents and brokers all over the country: “Should I buy the insurance from the rental car company?”
Following are a few considerations when mulling this important decision:
DAMAGE WAIVER & YOUR PERSONAL AUTO POLICYFirst, the good news: In many cases, a personal auto insurance policy will cover damage to a rented vehicle. That said—don’t get too comfortable! There are other costs associated with damage to a rented vehicle that the policy will not cover. For this reason, careful consideration should be given to purchasing the damage waiver offered by the rental car company.
On your personal auto policy, “Collision” insurance covers your vehicle for damage resulting from a collision with another object. “Comprehensive” (sometimes called “Other Than Collision”) covers your vehicle for theft, vandalism, falling objects and other causes not resulting from a collision. If you have a car loan, your lender will require you to purchase both. If you pay the loan off, the choice to purchase collision or comprehensive—and both or neither—is up to you.
Your personal auto policy will only cover damage to the rental car if you have the appropriate coverage type on at least one vehicle you own. For example, if you damage the rental car in a collision, you must have “collision” coverage on at least one vehicle covered by your personal auto policy. But if the rental car is stolen, vandalized, or damaged in any way not resulting from a collision, you must have “comprehensive” coverage on at least one vehicle covered by your personal auto policy. The key point: If your personal auto policy excludes the coverage type that damages the rental car—and you reject or violate the damage waiver—you will become personally responsible for paying all costs related to the damaged rental car out of your own pocket!
In contrast, the damage waiver usually offered at the rental counter will cover the damaged rental car regardless of what’s covered by your personal auto policy.
LIMITATIONS IN YOUR PERSONAL AUTO POLICYWhat else could you possibly owe the rental company following an event or crash? These include administrative fees and the depreciated value of the vehicle after repairs—neither expense is covered by your personal auto policy. In addition, most personal auto policies only pay up to the actual cash value (ACV) of the damaged vehicle. If the contract requires the damaged rental’s replacement, the ACV payout may not be sufficient to cover the entire expense.
Again, in contrast, the damage waiver will cover all such expenses.
Also, the rental contract likely will require you to pay the rental company’s “loss of use.” These are expenses they incur resulting from the inability to earn income from the damaged rental. This cost could be hundreds of dollars or more. Some personal auto policies will pay a limited amount for this expense (such as $20 per day or $600 total). Others will not cover it at all.
NO CLAIM NECESSARYIf something happens to the rental car, purchasing the damage waiver gives the rental agency management of the process. This will allow you to avoid filing a claim and possibly help keep the cost of your insurance from going up. It also will keep your deductible in your pocket.
LIMITATIONS IN THE DAMAGE WAIVERDon’t forget that the rental car company’s damage waiver is a contract. It will include a list of restrictions that, if violated, may terminate the waiver and leave you personally responsible for paying the costs associated with the damaged rental car. Examples of such restrictions may include:
• Damage to rental while driven by someone not specifically named on the contract.
• Damage to rental while driven on unpaved roads.
• Damage to rental while it’s being occupied by more passengers than available seatbelts.
• Damage that occurs while pushing or towing.
This list is only a sample; the typical damage waiver may include additional restrictions.
Moreover, the car rental company’s loss damage waiver covers “diminished value,” the economic reduction in value of a repaired auto due to it having been damaged. Almost all auto policies and many credit card coverages exclude diminished value. What’s the impact to you? If you don’t take the damage waiver, you could get hit with a diminished value claim of $1,500 or more, depending on your type of damaged rental car.
DAMAGE WAIVER COVERS VEHICLE DAMAGE ONLYPerhaps the most important fact to remember is that the damage waiver only applies to damage to the rented vehicle. It is not a substitute for liability, medical payments, uninsured motorist, personal injury protection, and any other personal auto insurance coverage.
OTHER PRODUCTS OFFERED BY RENTAL COMPANYIn addition to the damage waiver, most rental car companies offer a few optional insurance-type products. For example, some may offer a liability enhancement that gives you the option to increase the liability limits you already carry on your personal auto insurance policy. Depending on your available auto liability insurance, this option may be worth consideration.
Others may offer options such as accidental death, trip cancellation, or damaged luggage insurance during the rental period. Such options vary by company and may provide insurance dollars you cannot get elsewhere. However, they should not be purchased without first reviewing your current home, health and auto insurance policies as there may be duplication.
CONCLUSIONIn light of the information above, you should seriously consider—and probably buy—the damage waiver from the rental car company. Deciding whether to purchase other products from the rental firm, however, depends largely on the insurance already available to you from other sources. For assistance in determining coverage you already have and comparing it to the rental company’s options, call your Trusted Choice® independent insurance agent today.
Business Travel Note: When you rent a car on a business trip, that’s an entirely different set of decisions, so again please talk with your Trusted Choice® independent insurance agent.
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Happy Thanksgiving!
The Staff of The Slocum Agency, Inc. Wishes You a Happy Thanksgiving!
Please note that the office will be closing at 3PM on Wednesday, November 24th and
will reopen Monday, November 29th.
Support Small Business Saturday November 26th
We are fortunate to insure many small businesses and we understand how difficult these economic times are. Here is some information about an important move to help our local small businesses this holiday season. Click the link below for the story and how your small business can benefit from this movement!
http://luxuriesforless.wordpress.com/2011/11/17/a-neighborhood-luxury-small-business-saturday/
Safety Tips for Black Friday Shoppers
The day after Thanksgiving, also known as Black Friday, is the biggest shopping day of the year. When it comes to cashing-in on the day’s deals, the motto is “If you snooze you lose.”
Many stores will open at 12:01 a.m. on Friday and some retailers will even open their doors on Thanksgiving eve in hopes that they can entice people out of their post-turkey dinner food coma. For serious bargain-hunters, the day is the ultimate shopping extravaganza that requires a strategic plan, including store maps and item locations, that’s hatched days in advance. Others take a less organized approach, but are still hungry for a deal or this year’s hottest holiday toy.
The combination of too-good-to-be-true deals and shoppers hopped up on copious amounts of caffeine and tryptophan can be dangerous, though. Overzealous drivers can make parking lots a zoo and sleep-deprived shoppers are less likely to pay attention to the road. Unfortunately, Black Friday, which is considered the unofficial start to the holiday season, also brings out thieves, pickpockets, and others who are looking to take advantage of unsuspecting shoppers.
Whether you’re leaving the house at the crack of dawn (or dusk) in search of Black Friday deals or saving your holiday shopping for the last minute, keep these safety tips in mind when navigating the parking lots and wandering the aisles.
On the Road and in the Parking Lot:
• When backing out of a parking spot, be aware of waiting cars, others who are backing out at the same time, and motorists who speed through lanes.
• Lock all doors and roll up all windows even when leaving the car for a short period of time.
• When shopping, keep gifts in the trunk or hidden from view in the interior of the car. Also, put all of your packages in the trunk before departing one parking lot and driving to another. Waiting until your next shopping destination allows others to see packages go into the trunk of your car and then you departing into the mall or store.
• Avoid parking next to vans and large trucks that block your space from general vision of others.
• Make a mental note or write down exactly where you park your car to avoid wandering around longer than necessary.
• During the day, park away from buildings to reduce the chance of dings from car doors or shopping carts. At night, avoid secluded areas and park directly under lights whenever possible.
• Have your keys in hand when leaving a store. Also, look underneath your car before you reach it; criminals have been known to lie underneath in wait.
• Bring gifts in the house with you instead of leaving them in the car.
In the Store:
• Use a credit card to avoid thefts of large amounts of cash that are irreplaceable.
• Shopping with a single credit card is preferable because it’s easier to cancel one, rather than several, if your wallet or purse is stolen.
• Keep purses zipped and close to your body. Never leave a purse unattended in a shopping cart where it is more susceptible to theft.
• Keep a reference list of phone and account numbers for all your credit cards in a safe place at home.
• If possible, carry keys, cash, and credit cards separate from each other.
• For freedom of motion and clear visibility, do not overload yourself with bags when leaving a store and returning to your car. It’s difficult to defend yourself with when you’re carry a lot of packages.
• Use ATMs in well-populated, well lit locations. Do not throw ATM receipts away at the ATM location.
• Remember there is increased safety in numbers. Avoid walking alone and leave malls and stores well before closing time to assure a more active parking lot. Ask mall security to walk you to your car if you feel you are not safe.
In additions to remembering these safety tips, you should also review your insurance policies with your Trusted Choice® independent insurance agent to make sure you have the proper coverage in case an accident or theft does occur. Liability coverage will protect you if you hit another motorist, collision coverage will cover the damage to your car, and comprehensive coverage will insure you for damage by vandals or theft of your vehicle.
Home Fire Escape Plans Save Lives
Fall is officially here, and with it comes the National Fire Protection Agency’s National Fire Prevention Week, Oct. 9 -15. This year’s theme is “Protect Your Family from Fire,” which makes now a good time to come up with a fire evacuation plan or review the one your family already has in place.
A small fire can escalate into a major blaze in less than a minute, and a sound escape plan greatly reduces fire-related deaths and protects your family if a fire occurs. Whether you have established an fire evacuation route or are coming up with one now, these are some important safety reminders and instructions you can you use when reviewing or planning your home evacuation plan.
•Plan two ways out of every room in your house — this way if one path is blocked by flames or smoke there is an alternate path out. For example, a bedroom door can be the primary escape path and a window the secondary one. If you intend to use an upper-story window as an evacuation option, be sure to store a collapsible ladder in the room in a well-known place. The U.S. Fire Administration advises consumers to only purchase ladders evaluated by a nationally recognized laboratory.
•Practice escaping from the house with a blindfold, in the dark, or with your eyes closed. This will prepare you and your family to navigate through smoke if it is blocking your exit route. Remember to stay low to the ground to avoid the smoke and keep your mouth covered with a piece of clothing, blanket, or towel since the toxic gases from smoke can cause disorientation or fainting.
•Make sure doors and windows open easily. Check windows to make sure they are not stuck, and that everyone in the house knows how to open them and remove the screen if necessary. If you have security bars on your windows, check the quick-release device to make sure they can be opened immediately, and practice opening the locks with everyone in the house.
•Designate a meeting place that’s away from the house, such as the end of the driveway or a place on the sidewalk. Hold a fire drill to ensure everyone in the house knows where to meet. Also pick someone to be in charge of going to a neighbor’s house and calling 911.
•Time is of the essence during a fire, so don’t waste time trying to save property. Remind your family members of this, too, especially children who may want to save their toys. A homeowners policy will help with the replacement cost of your property, and while some items are impossible to replace, they’re not worth a life.
•Teach children not to hide or be afraid of firefighters. Remind young kids that firemen will help them in the event of an emergency.
•In the event of a fire, check a closed door using the back of your hand to feel the door, doorknob, and the crack between the floor and door frame to make sure the fire is not outside the door. If any of these things feel hot, use the second escape path from the room. If the door is cool, open it slowly and brace your shoulder against the door. If heat and smoke come in, close the door quickly and use the other escape route.
For more information on National Fire Prevention Week or fire safety procedures, visit www.nfpa.org. You can also contact your Trusted Choice® independent insurance agent for more information on protecting your family from the flames by obtaining or reviewing your homeowners or renter’s insurance policy.
Not Owned, Not Covered, Not Good!
As the fall approaches across the United States, millions of young people will embark on that great journey we call life on a college campus. Others entering their golden years and their families will consider the benefit of moving into an assisted living facility. Still others, uninterested in or unable to secure a home loan, will choose to move into an apartment or rental home.
What does each of the above circumstances have in common?
None of them own the home in which they are living—thus preventing them from purchasing a standard home insurance policy.
Yes, those individuals described above could find coverage for personal property or personal liability claims under the home insurance policy of someone else. For example, some policies will extend coverage to a student while living away attending school. However, reliance on someone else’s insurance is risky—coverage may be inadequate or nonexistent, depending on the terms of that policy.
If you’re one of the individuals described above—or feel responsible for someone that fits the description—wouldn’t you feel better knowing insurance coverage is in force?
Renters Insurance
Renters insurance is a generally used term to describe a policy designed for someone that does not own a home. Insurance carriers that sell renters insurance typically have their own rules to determine who is eligible. Many policies will offer both personal property (often called “contents”) and personal liability insurance.
Personal Property
Renters insurance is often marketed and sold for its ability to cover personal property. Many carriers focus on this function of the policy for psychological reasons. Why? It’s much easier for buyers to visualize the theft of or damage to personal property than it is to visualize a personal liability claim.
You can buy renters insurance at a limit sufficient to pay the cost to repair or replace damaged or stolen property. Some insurers allow buyers to choose to purchase coverage that will reimburse the cost to replace damaged property with a newer model—without deducting for depreciation. Others only allow buyers to buy insurance that will pay the actual cash value of the property, allowing the claims adjuster to deduct for depreciation. If available, the former option is preferable—many types of personal property, such as electronics and furniture, depreciate significantly.
Renters insurance may be sold on a “named” or “open” perils basis:
• If the former option applies, coverage is limited to causes of loss or so-called “perils” specifically named in the policy. Let’s say your TV burns in a fire. It likely will be covered because fire is a named peril. If the event causing damage to the property is not a named peril, than no coverage will apply. For example, if your furniture is damaged in a flood it probably won’t be covered because flood is not a named peril.
• If the open perils option applies, coverage is extended to any cause of loss or “peril” unless the event causing damage is specifically excluded. If available, this option is preferable, as you can never predict the event that will cause damage to your property.
Personal Liability
Many renters insurance policies also cover an insured’s personal liability. Let’s say you’re entertaining guests at a gathering at your apartment. A drink is spilled on the tile floor and someone slips and falls, causing serious bodily injury. As host, you could be found negligent for that person’s injury and made responsible for his or her medical bills. Without personal liability insurance, you would have to pay those potentially devastating costs out of your own pocket. Even worse, if a lawsuit were to arise, your personal assets also may be tapped to compensate that person for his or her injury. The types of bodily injury claims covered by your policy vary and should be reviewed carefully.
You also may be found personally liable for property damage caused to the space you are renting or to someone else’s property, such as a neighbor’s building. As with bodily injury, the types of property damage claims covered by your policy vary; again, review the coverage carefully.
Conclusion
Regardless of your living arrangement, choosing to live uninsured could prove financially devastating if your personal property is stolen or damaged. The same is true if you are responsible for someone’s injury or damage to his or her property. Call today and talk with a Trusted Choice® independent insurance agent for help in securing renters insurance for you or a loved one.
