Condo Insurance

Condo Buyers – New Insurance Requirements From first time home buyers, to retirees looking to simplify their lives, condo’s can be a great choice for your next home.

Insuring a condo is a bit different from a single family home because the coverage for damage to the building is separated from the coverage for the interior of each owners unit.   The building coverage is the responsibility of the Homeowners Association.  This policy is referred to as the HOA Master Policy, and a portion of your HOA dues are used to pay the premiums of this policy.  The policy that covers the interior of your unit is referred to as a condo unit owners policy or H-06.   As an owner, you own the H-06, and can customize it to your individual needs.

Lenders historically have required only a copy of the HOA Master Policy as verification of insurance.  With stricter lending requirements, a unit owners policy (HO6) may also be required .  Here’s a description of both policies for your comparison:

 Unit Owners (H-06) Policy

* Covers your personal property

* Covers personal liability

* Covers interior walls and floor coverings

* Covers improvements or upgrades you made

* Usually has small deductible & fairly inexpensive

* Some lenders and associations require you have such policy

 Masters policy (Policy for homeowners association)

* Does not cover your personal property

* Does not cover liability inside condo

* Does not cover improvements or upgrades you made

* Covers the condo building and some liability (such as walkways)

 Why is the unit owners policy important?  Imagine a fire in your building, and the interior of your unit is damaged.  You need to replace sheet rock, flooring, and remove the smoke damage for a cost of $20,000.   Most of us do not have a cash reserve that would prepare us for a loss of this size, and if we did, we’d probably want to invest it for other purposes.   Whether required by your lender or not, a condo unit owners policy will protect you in the event of this type of loss.

Buying a condo?  Call us for a quote today.  510-842-3600.

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12 ways to lower your homeowners insurance cost

Live Long and Prosper

As an insurance agent, I talk to my clients about the importance of protecting their families with Life Insurance.  These discussions typically cover topics like making the mortgage payments, saving for college, providing for a time of grief.  Essentially, these are the topics of a premature death.

Recently, my friend Dr. Linda Berry sent me an article about ways to prolong life.  As I think about people who live to be 100 or older, I think about the financial preparation required to make sure you have the quality of life you want in your later years.  Many people don’t realize that Life Insurance can help families plan for the event of living longer and needing money later in life.

 To learn more about life insurance: contact me at 510-842-3600.

Read below for more info about life habits of people who’ve lived to be 100.

 Dan Buettner traveled four continents to study the world’s longest lived humans. He teamed with scientists in Sardinia, Okinawa, Costa Rico, and Loma Linda to examine populations where the number of centenarians (those who live to be 100) vastly exceed the statistical average.

 What do healthy centenarians do that you don’t?

 Dan and his team came up with nine secrets of long life from the world’s healthiest humans.

 ● Move: find ways to stay active.

 ● Plan de Vida: discover your purpose in life.

 ● Downshift: take a break.

 ● 80% Rule: don’t overeat.

 ● Plant Power: choose greens.

 ● Red Wine: a glass a day.

 ● Belong: stay social.

 ● Beliefs: get ritualistic.

 ● Your Tribe: family matters.

 For more information about living long and healthy check out Blue Zones by Dan Buettner.

 Thanks to Dr. Linda Berry for sharing this great info.   http://www.drlindaberry.com/

It’s not MY Fault

I get asked this question all the time.  I was in an accident, and it’s not my fault.  Who should fix my car?:  my insurance company, or the insurance company of the driver who hit me?  Answer:  it’s your choice.  Here’s an argument for and against each approach.

Fixing with your insurance company: Pros

• You are our customer, and we’d like to keep it that way.

• You can start your repairs immediately.  The other carrier will have to determine fault before authorizing repairs to your vehicle.

• Most insurance companies have a network of shops.  Use a recommended repair shop and the claims process may go even faster.  Recommended shops have working agreements with insurance carriers that streamline the claims adjustment process.  Plus, the work is usually guaranteed for the life of the vehicle.

Fixing with your insurance company: Cons

 • You’ll have to pay the deductible

• You may have to wait a while to get your deductible refunded

• You have to carry Collision coverage on your vehicle in order to get your car fixed though your own insurance company.   Collision is often the most expensive part of the policy, and in some situations, Collision coverage is not cost effective (older vehicles, younger drivers) so you’ll have to work with the insurance company for the driver who hit you.

Fixing with the other guy’s company: Pros

 • No deductible

• You are not their customer, and if they want you, they’ll treat you right

• You don’t have to carry Collision coverage on your own vehicle to collect if it’s the other guys fault.

Fixing with the other guy’s company: Cons

• They won’t authorize a repair until they determine fault status.  If their customer is slow to return calls, or tries to avoid them altogether, you could be left waiting a longer than expected time to get your car fixed.

• You aren’t their customers, and if the fault is questionable, they could decide in favor of their customer.

• The other driver may not carry enough insurance to fully repair your vehicle or pay for your injuries.

• Their repair standards may not be the same as your insurance company.  

Best example of this is the standard for painting vehicles.  Poor paint jobs are one of the quickest way to erode the value of your vehicle.  Make sure you are comfortable with the standards set by the company who repairs your car.

Based on the information I get from clients who repair with other companies, about half of them have a good experience, and the other half have a frustrating one.  If you can afford the deductible, I recommend my clients repair their vehicles with the company and the agent who makes a living by servicing your policy.

As an agent, my livelihood depends on taking care of my customers, and helping with claims is where the proverbial rubber hits the road.

Drive safe and enjoy your summer!

“Green” Driving

Preparing your home for disasters

What if a disaster like a fire, earthquake or flood destroyed your home? Do you know how much it would cost you to rebuild your home? Check out the video below.

http://abclocal.go.com/kgo/video?id=6753801

There is a big difference in what you think your house is worth and what it costs to rebuild. Learn more about rebuilding costs at www.accucoverage.com.

10 Steps to Fire Safety in Your Home

We had a terrible fire in Oakland in 1991 (http://en.wikipedia.org/wiki/Oakland_Hills_firestorm) and so many of my friends and neighbors have firsthand knowledge about how fires impact families.  We sometimes forget that even a small fire can be scary.

Below are “10 simple steps” you can do today that will drastically improve the safety of your home, and assure that your family reacts correctly in the event of a fire.

Fire Safety in your home

 

·        Take fire safety seriously! If you don’t, your children won’t!

·        Make your “Family Escape Plan.” Create a simple, easy to understand escape plan, include two exit routes from every room, and a safe meeting place outside your home (like a tree, telephone pole, or neighbor’s home) where your family will gather once outside the home.

·        Practice fire safety! Your children know that if they want to be good at something, they have to practice. Fire Safety is no difference. Take time to practice your family escape plan, making sure to have two exits from every room. Practice with your children several times, then allow them to do it by themselves to make sure that they fully understand what they should do if ever there’s a fire.

·        Keep your home safe! Fire safety is not a once-a-year exercise. It must be part of your daily focus. Just as important as knowing what to do in the event of a fire, it is just as important to take steps to assure a fire never starts, and if a fire does start, that your family will be alerted as quickly as possible.

·        Install Smoke Detectors! Statistics show that more than half of all fire deaths occurred in homes with no smoke alarms, and nearly three quarters of fire deaths occur in homes without alarms or with non-functional alarms. By placing smoke detectors in your home, your can increase the chances that all of your family gets out safely by 40-50%!

Here are a few things to keep in mind:

a)      One in every room! It’s important that smoke detectors are located throughout your home, and most importantly, in every bedroom.

b)      Test them! Make sure the batteries are good and that the smoke detector itself is in proper working condition. Test your smoke detectors once a month.

c)      Not sure? Replace them! If your smoke detectors are older, or if you’re not sure they are in proper working condition, think about changing them. Improvements to newer smoke detectors could provide a better level of protection to you and your family.

·        Change batteries twice a year! Most fire safety personnel recommend changing the batteries within your smoke detectors twice year. It’s a simple, yet powerful message, “Working smoke detectors save lives!” Can’t remember the last time you changed the batteries? Why take a chance? Change them now!

·        Know that sound! Make sure that all family members know and recognize the sound your smoke detectors make. An easy way to accomplish this is to make sure that you gather your family together each time you test your smoke detectors. The quicker you recognize that sound, the quicker you can react if ever there’s a fire.

·        Keep a look-out for safety hazards in the home! To many items plugged into one outlet, a shirt thrown over a lamp, a worn electrical cord; these are just a few examples of hazards within the home.

·        Be careful when cooking! Make sure that young children never cook without proper supervision. And make sure to keep cooking surfaces clean to avoid grease fires. A majority of fires within the home begin in the kitchen.

·        Every home should have a fire extinguisher! Keep a fire extinguisher in a handy location. The best location is typically just inside a door or entrance, out of the reach of children. Avoid locating an extinguisher right next to where a fire could develop. Remember, a fire extinguisher is no substitute for the fire department, but it can be used to stop a small fire from getting out of control. Know how to use it! It’s to late to learn once a fire has begun.

 

Information courtesy of FireFacts.org

 

The Big One, Earthquake Insurance – a good value? or not worth the money?

As an Insurance Agent who lives and works on the Hayward fault my clients and friends are always asking me to share my thoughts about Earthquake Insurance.

At Farmers agent, we partner with the CEA (California Earthquake Authority) to provide coverage for our clients. (http://www.earthquakeauthority.com/) I also have access to carriers like Geovera.

In Oakland, the earthquake policy often costs more than the homeowners policy. To some that’s too expensive. Most earthquake policies have high deductibles, and this is a concern for many homeowners as well.

As with other types of insurance, I’ll tell people to buy the best policy they can afford. And this means some people will purchase a policy, and others will risk going without one. Here’s a few ideas I share with my clients to help them make the best choice for their family.

1) Insurance is part of a disaster preparedness plan. Do you have a plan? Do this regardless of your insurance choice. (helpful tips below from Oakland Council Member Jean Quan)

2) Consider retrofitting your home. Many local homes have foundations that were built with cement that included beach sand. Foundations built prior to WW2 may need additional strengthening as beach sand contains salt. And salt breaks down the concrete over time. Retrofitting can not only make your home stronger in the event of an earthquake, it may add to the value when it comes time to sell your home.

3) Install an automated gas shut off valve. It’s likely that you will not be home when the ”big one’” hits so that you won’t be home to do this manually. Some insurance companies require this safety valve, others, like Farmers, provide a discount to clients who have one.

Here’s a the link to Jean Quan’s article 21 Ways To Prepare for Emergencies http://www.jeanquan.org/21WaystoPrepare.htm

Sometime in the next 30 years, the Bay Area has a 62% chance of experiencing a 6.7 or larger magnitude earthquake. Yet less than 50% of households have disaster supply kits, 10% have disaster plans, and fewer than 10% have taken steps to retrofit their homes. The next big earthquake is not a matter of if, but when. A major earthquake on the Hayward fault could disrupt 40% of our streets & roads; would make 15% of our buildings inhabitable. Help Oakland be better prepared.

Here’s a couple of local referrals to help you prepare:

For foundation work and retrofitting:
Acme Builders
Paul Peczon
(510) 388-8100
http://www.yelp.com/biz/acme-builders-oakland

For Earthquake Kits
Get It Done
Jill Wasserman
510-909-3948
E: jill@letmegetitdone.com

Me and the Caveman

Since I became an Insurance Agent, my awareness of advertising and media about my industry is on high alert. I suppose this is natural. Same is true about the other aspects of our lives. Buy a new car, and you’ll see it everywhere. Get married, and you suddenly find yourself in a couples crowd.

The purpose of advertising is to create awareness. For example, if you ask anyone, anywhere in the world to name a restaurant, they might say McDonalds. But just because people are “lovin’ it” doesn’t mean I want or need a Big Mac. Still I can’t argue with the success of a brand that’s sold billions and billions of units.

And so it is with Insurance. The ad agency that won the contract for AFLAC promised only to make the brand a household name. You may or may not know what AFLAC does, but you sure know that duck.

And this brings me to the Caveman, you know him, the “so easy a Caveman can do it” guy. Let’s face it, humor creates awareness, and in a crowded marketplace, awareness is key. When it comes to advertising, the competitors aiming for the hearts, minds and dollars of my clients are the Caveman, the Gecko, Erin E-Surance, Flo in her Tricked out Name tag, even a few celebrity spokespeople. Each one of them promises to make it easy. Each one promises to save you money. Some promise accident forgiveness. Some even promise a quick and easy car repair.

With so many sound bites about car insurance, it becomes my job as an agent to help people sort through all the media and the hype to what’s important for them personally. As much as I can, I try to make it easy. Sometimes I save my clients money on premiums. ALWAYS I talk about what’s near and dear to me: COVERAGE. At it’s core, insurance does one thing particularly well, it protects your financial assets, and that’s only possible when your policy has the coverage you need when the time comes to use your policy. Forget to ad towing, and have a break down, you can purchase a tow from a local company for about $100. Finding yourself with inadequate liability coverage after an accident, and you could find yourself paying a lawsuit settlement out of your own pocket. And that’s not funny.

And so when the Caveman comes on the TV, I have to laugh at myself a bit. To understand that as serious the situations where insurance is used can be, clients still want the process of buying and paying for insurance to be simple and affordable. And for this reminder, I have the Caveman to thank.

Becoming an Insurance Agent

Whenever I get excited about my chosen career, my spouse makes me watch this video from Ground Hog Day. The one with the infamous Ned Ryerson character.

Weather Ned makes you laugh or cry, or simply makes you want to run the other direction, he represents the stereotype of my chosen profession, the Insurance Agent. I have to love him a bit because he cares so much about selling insurance. I also wince a bit because he’s everyone’s nightmare, the sales guy who won’t go away, the one who cares more about making the sale than he cares about the needs of his client. It’s the reputation that puts insurance people one rung lower in Hell than… Sorry gang, I can’t name the used car sales guy or the politician or any one profession that’s gotten a black eye in the credibility department, because there are good people in every profession who work hard for their clients and constituents. I’ve even met a few insurance agents along the way who are darned good people. I hope to be counted among them.

My goal in writing this blog is to share a bit of humor, a bit of practical advice, and a good story or 2 with you, the readers, because Ned’s got one thing right. Insurance matters. Knowing that the money will be there when bad things happen allows people to sleep better, and perhaps to live a bit more fearlessly.