Insurance Information for Orlando & Businesses Nationwide

February 23, 2020 By Reports Reports

When Should I Review my Insurance Policy?

Courtesy of iii.org

There are four events that should trigger a review of your policy:

1. When your policy comes up for renewal

Don’t just automatically send a check to your insurance company. Take the time to review your coverage and call your agent with any questions or concerns that you may have regarding your homeowners insurance. Ask yourself the following questions:

Has the company made any changes in coverage since last year?
Does my policy now include a separate deductible for risks like hurricane or hail?
Should I raise the deductible to save money?
Am I taking advantage of all available discounts?
Do I need to raise the amount of coverage for liability, personal possessions or the structure?
Should I comparison shop for a cheaper rate?
Do I need flood, earthquake or an umbrella policy?

2. When you’ve made major purchases or improvements to your home

If you have made any major purchases, make sure that you have the proper coverage. And, don’t forget about gifts. If you have received a diamond engagement ring or if a member of your family has bought you expensive artwork or a computer, talk to your agent about either increasing the amount of insurance you have for your personal possessions or purchasing a floater/endorsement for these items. A floater will give you higher and broader coverage for these items than you have under your homeowners policy.

If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don’t report the increase in square footage to your insurance company. Don’t forget about new structures outside of your home. If you have built a gazebo, a new shed for your tools or installed a pool or hot tub, you need to speak to your agent. Keep receipts and records in case you need to forward copies to your company.

3. When you’ve made your home safer

If you have installed a state-of-the art fire/burglar alarm system or upgraded your heating, plumbing or electrical system, make sure that your insurance company knows about these improvements. You may qualify for a discount.

4. When you experience major lifestyle changes

Marriage, divorce, or adult children who move back into the family home, can all affect your homeowners insurance. When people move in or move out, they take their belongings with them. And you may need additional coverage if there is a sizable increase in the value of the belongings in your home.

Starting a home-based business can also trigger changes in your coverage. You will need to get additional coverage for business liability and equipment. If the business is your primary source of income, you may need a Businessowners Package Policy (BOP). You may also need professional liability coverage, which is excluded under in-home business and businessowners policies. For more information, see Business Insurance.

February 16, 2020 By Reports Reports

8 Questions to Ask for Car Insurance

Courtesy of iii.org
Make sure your car coverage reflects your needs and budget

The vehicle you own, your personal priorities and your budget all factor into your unique auto insurance needs. Before comparing policies and insurers, evaluate how you use your car and what risks you face to figure out what options make the best sense for you.

1. How much do you drive?

Do you absolutely need your car every day—for instance, to commute to work or drive the kids to school and activities? Do you drive 100 miles a month or closer to 1,000 or more? Make sure your policy reflects how much you use your car. If you don’t drive a lot, you may want to opt for mileage-based insurance.

2. Will you be using your car for work?

If you use your car not just to get to work, but to perform tasks for which you get paid, commercial auto insurance is a necessity. A personal auto policy will not provide coverage if you transport paying passengers through a ride-share service, deliver pizzas, drive as a courier or use your car for other commercial activities.

3. What type of car do you drive?

Insurers have mountains of data, and they know in precise detail what types of cars, makes and models are more—or less—likely to incur claims. A flashy sports car with a powerful engine may be more likely to be stolen and its bodywork costs will be more than on a mid-sized sedan—and your insurance will be priced accordingly. Some types of cars—such as modified or classic cars—require special insurance. By the same token, you may receive discounts if you have a “safe” car—one with the latest safety features and a good safety record.

4. How much do you love your car?

If you love the way your vehicle looks and take pride in its appearance, you’ll likely want it fixed perfectly—or replaced with the same model—if it gets damaged. That means you’ll probably to consider the fullest range of insurance—including collision, comprehensive and glass coverage. On the other hand, if you drive a beater, see cars merely as transportation and want to save on premiums, you might prefer to limit your policy to liability.

5. Where do you live—and park your car?

Where you live will impact your insurance rates—and it may be a factor in what coverage you purchase. For example, cars parked on the street in urban areas face a greater risk for theft or vandalism, so comprehensive coverage might be a good option. You may discover that your premium rates are lower if you move from a city to a suburb.

6. Who else will be driving the car?

Generally, your car insurance will cover other occasional drivers. However, if other drivers live with you and use your car—whether a spouse, a teen driver or a housemate—they should be listed on your policy.

7. What are your legal obligations?

Nearly every state requires that you carry minimum liability coverage for your car. At the very least, you need to make sure your policy complies with state mandates. However, the levels of required coverage are generally pretty low. Keep in mind that, if you are involved in a serious accident, you may be sued for a large sum of money. Depending on your assets and financial risk tolerance, to be safe, you’ll probably want to purchase a higher level of liability coverage.

8. Is your car financed or leased?

If you still owe money on your car or have to return it in good condition when a lease expires, you’ll likely be required to insure the car for its full value—and even for any gap between what you owe and the car’s market value. Collision and comprehensive will cover damage to your car—and supplemental gap insurance will cover the rest.

Keep in mind that your insurance options and costs will also be affected by your age, gender and driving record. Be aware too that your credit score can also impact your insurance rates. Once you’ve looked at your needs and priorities, and understood how insurance options will match them, you’ll be better prepared to make an informed decision about the types and levels of coverage to buy.

February 9, 2020 By Reports Reports

Personal Insurance Policy-Are Epidemics Covered?

Courtesy of iii.org
In this article, we discuss how personal insurance policies address communicable diseases and epidemics. In a later article, we’ll look at how commercial insurance policies address these issues.

Coronavirus is all over the news. Measles are back with a vengeance. It’s gotten so bad in one New York county that the local government tried to ban unvaccinated children from public spaces.

Little known fact to people outside the insurance world: many personal insurance policies address communicable diseases and epidemics. Let’s walk through some of them.

Homeowners liability insurance: probably not covered

If you crack open your handy HO-3 standard homeowners policy and flip to Section II – Liability Coverages, you’ll notice that the transmission of a communicable diseases that causes any bodily injury or property damage is not covered by the policy. What this basically means is that if you (the insured) cause someone to get hurt (i.e. sick) via a communicable disease, whether you knew you were sick or not, then the policy won’t cover you for any liability if you get sued.

So if someone without a measles vaccination throws a party and ends up getting several guests sick, that person’s homeowners policy probably won’t cover any liability arising out of their actions. Doubly so if the person did this purposely: intentional acts are excluded from pretty much every insurance policy on earth.

Personal liability umbrella: probably not covered, but it depends

A personal liability umbrella policy is basically an extra layer of liability insurance. It will cover some types of liability your homeowners insurance excludes – and will also cover higher payments, sometimes up to $1 million (homeowners is often limited to $300,000).

Personal umbrella policies will also often exclude liability arising out of the transmission of a communicable disease. But not always, since what constitutes a communicable disease often depends on the specific policy. Some policies only exclude sexually transmitted diseases; others will exclude any communicable disease.

Travel insurance: could be covered, depending on the situation

Travel insurance policies can vary dramatically, depending on the insured’s needs. Two of the more common coverages are for trip cancellation and emergency medical treatment.

Will travel insurance cover you if a trip gets cancelled due to an epidemic or pandemic? Again, depends on the policy, but probably not. Many travel policies will exclude losses caused by disease outbreaks.

What if you get sick and need to cancel your trip? Unfortunately, you’re probably not covered if you got sick because of an epidemic. But for other diseases, you could be covered, depending on the insurer and a whole laundry list of conditions. For example, a sickness that would be covered often requires that the sick person be so ill that they can’t travel (a mild cough won’t pay out); the sick person is also often required to have a medical professional confirm that they were, in fact, too sick to travel.

If you have emergency medical treatment coverage, then you’ll be covered for any covered medical care, including illness. However, these kinds of policies can get very complicated; it’s important to talk to your agent to make sure you are getting the coverage that you need.

February 2, 2020 By Reports Reports

Umbrella Insurance Policy-What is It?

Courtesy of iii.org
If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

January 26, 2020 By Reports Reports

Auto Insurance & Classic Cars

Courtesy of iii.org

A classic, custom, collectible or antique car requires insurance that reflects your vehicle’s uniqueness and value. If you own—or are thinking of owning—a special set of wheels, find out about the kind of policy you need.

What types of vehicles need special insurance?

A classic, collectible or antique car is no ordinary car—and regular auto insurance is not sufficient to protect such a vehicle against damage or loss.

That said, there is no uniform definition of a classic car. If a car’s value exceeds its original selling price, then it might be considered collectible and a candidate for specialized classic car insurance. In general, vehicles that might warrant classic car auto insurance include:

Antique and classic cars, usually at least 25 to 30 years old
Hotrods and modified vehicles
Exotic and luxury autos—think James Bond
Muscle cars
Classic trucks

You might also seek specialized insurance for vintage military vehicles, classic motorcycles and antique tractors.

Qualifying for classic car coverage

A car’s age is not enough to qualify for specialized classic car insurance. While requirements differ from company to company, most cars need to meet the following criteria in order to qualify:

Limited use – Your classic car cannot be used for everyday commuting or errands, and your policy may include mileage limitations and proof the car is being properly garaged if you do travel with it. In some cases, insurers may require that you also own a primary car for everyday use.
Car shows and meetings – The limited use provision of a classic car policy allows for travel to car shows and auto club meet-ups; however, this coverage may be restricted by some insurers. If this is the case, there are insurers that can provide specialized coverage for car shows and meetings. Before choosing a classic car insurer, it’s worth checking whether they have travel restrictions if you plan to take your car on regular, multi-day, high mileage drives.
Secure storage – When not in use, your special vehicle must be stored in a locked, enclosed, private structure, such as a residential garage or storage unit.
A clean driving record – You may be disqualified from classic auto insurance if you have serious offenses on your driving record, such as reckless driving, repeat speeding violations or driving while intoxicated.

Not every vehicle, however special, will meet the qualifications of every insurer. For instance, some insurers may not cover vintage off-road vehicles. Insurers may also decline to insure vehicles that are in poor condition or have been previously damaged.

What you should know about classic car policies

Your classic car policy will include provisions found in standard auto insurance policies, notably property damage and bodily injury liability coverage. But there are some differences, as well:

Your car’s value – Because each car’s condition is unique, there is no set “book value” for specific makes and models. The first step in insuring your classic car is for you and your insurer to reach an agreement on the value of the vehicle. This value will be specified in your policy and your car will be covered up to that value without depreciation.

Note that, unlike everyday vehicles that depreciate over time as you add miles to them, classic cars may gain value. Make sure you adjust your coverage as the value of your auto appreciates.

Specialized repair or restoration – Your policy should you the flexibility to bring your vintage Mercedes, Ferrari or Corvette to a specialist—even if the rates may be twice, or three times, the cost of a typical car repair at a traditional auto body shop.
Special towing and spare parts – Coverage for towing is commensurate with the special demands of transporting a classic car. Spare parts coverage, too, needs to be aligned with the cost of replacing valuable and perhaps hard-to-find vehicle components, such as wheels, transmissions, and engine parts.