It is almost inevitable that a prom will involve serious exposure to alcohol or other intoxicants. The evening also involves many young, inexperienced drivers who are excited about making their way to different destinations such as pre and post prom activities. Sadly, all of these factors have combined to make prom season a dangerous one. Serious traffic accidents often become the main feature of what should be a night of joy.

Potential prom-goers and their parents need to create a strategy to help make prom night both memorable and safe. Here are some tips:

• Parents should get the details of all activities, including dinner and pre and post prom events
• Confirm the night’s events with school officials and other parents
• Consider arranging a safe, group post-prom activity where participants can be supervised

• Clearly lay out your expectations to your son or daughter about acceptable behavior regarding their evening
• Discuss all details about transportation, whether they are drivers or passengers
• Be sure that communications are set up. If the child does not have a cell phone available, find out the numbers where he or she can be reached during different phases of the evening
• If practical, consider arranging for a third party to handle transportation (limo or taxi service)
• Consider an amnesty arrangement. In other words, let your child know that they can contact a parent for emergency transportation should something go wrong and, for that evening, they’ll be no lectures or punishments

Help your son or daughter make prom night a bright memory rather than a tragedy. Plan on making safety and fun everyone’s priority.

FACT #1: Your dental insurance is based upon a contract made between your employer and an insurance company. Should questions arise regarding your dental insurance benefits, it is best for you to contact your employer or insurance company directly.

FACT #2: Dental insurance benefits differ greatly from general health insurance benefits. In 1971, your dental insurance benefits were approximately $1000 per year. Some 35 years later, you will note that your benefits are still $1000 per year. Figuring a 6% rate of inflation per year, you should be receiving over $5000 per year in dental benefits. Your premiums have increased, but your benefits have not. Therefore, dental insurance is never a pay-all; it is only an aid.

FACT #3: You may receive notification from your insurance company stating that dental fees are “higher than usual and customary”. An insurance company surveys a geographic area, calculates an average fee, takes 80% of that fee and considers it customary. Included in this survey are discount dental clinics and managed care facilities which bring down the average. Any doctor in a high quality private practice will have fees that insurance companies define as higher than “usual and customary”.

FACT #4: Many plans tell their participants that they will be covered “up to 80% or up to 100%” but do not clearly specify plan schedule allowance, annual maximum or limitations. It is more realistic to expect dental insurance to cover 35% to 65% of major services. Remember, the amount a plan pays is determined by how much the employer paid for the plan. You get back only what your employer put in, less the profits of the insurance company.

FACT #5: Many routine dental services are NOT covered by insurance companies.

Please do not hesitate to ask us any questions about insurance and our office policies.

If your employer does not offer group insurance, or if the insurance offered is very limited, you can buy an individual policy. You can get fee-for-service, HMO, or PPO protection. But you should compare your options and shop carefully because coverage and costs vary from company to company. Individual plans may not offer benefits as broad as those in-group plans.

Before you buy any health insurance policy, make sure you know what it will pay for…and what it won’t.

Tips when shopping for individual insurance:

* Shop carefully. Policies differ widely in coverage and cost. Contact different insurance companies, or ask your agent to show you policies from several insurers so you can compare them.
* Make sure the policy protects you from large medical costs.
* Read and understand the policy. Make sure it provides the kind of coverage that’s right for you. You don’t want unpleasant surprises when you’re sick or in the hospital.
* Check to see that the policy states: the date that the policy will begin paying (some have a waiting period before coverage begins), and what is covered or excluded from coverage.
* Make sure there is a “free look” clause. Most companies give you at least 10 days to look over your policy after you receive it. If you decide it is not for you, you can return it and have your premium refunded.
* Beware of single disease insurance policies. There are some polices that offer protection for only one disease, such as cancer. If you already have health insurance, your regular plan probably already provides all the coverage you need. Check to see what protection you have before buying any more insurance.

When you’re just starting out, you’ve got a lot on your plate, and it seems like you spend all your time working on the urgent stuff–trying to get your product or service ready, hiring people, figuring out how to increase sales, paying the bills and so on. It’s hard to find the time to consider something that isn’t really urgent but that can be incredibly important, such as insurance–specifically, “key man” insurance.

Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence would sink the company. You need key man insurance on those people!

Here’s how key man insurance works: A company purchases a life insurance policy on the key employee, pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The reason this coverage is important is because the death of a key person in a small company often causes the immediate death of that company. The purpose of key man insurance is to help the company survive the blow of losing the person who makes the business work. The company can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner. In a tragic situation, key man insurance gives the company some options other than immediate bankruptcy.

If the company is just you and doesn’t have any employees or other people who depend on it, then key man insurance isn’t as necessary. You’ll notice that I didn’t mention your family–don’t confuse key man insurance with personal life insurance. If you have a spouse and/or children who depend on your income, then you should have personal life insurance for that purpose.

How do you determine who needs this insurance? Look at your business and think about who is irreplaceable in the short term. In many small businesses it is the founder who holds the company together–he may keep the books, manage the employees, and handle the key customers and so on. If that person is gone, the business pretty much stops.

How much key man insurance do you need? That depends on your business, but in general you should get as much as you can afford. Shop around and get rates from several different agents; most life insurance agents will sell you a key man policy. Be sure to ask for term insurance–many agents will push whole or variable life, which have much higher premiums and commissions but are unnecessary for a key man policy. Ask for quotes on $100,000, $250,000, $500,000, $750,000 and $1 million and compare the costs of each. Then think of how much money your business would need to survive until it could replace the key person, come up to speed and get the business back on its feet. Buy a policy that fits into your budget and will address your short-term cash needs in case of tragedy.

Most people, particularly when they’re young, don’t plan on dying suddenly. If you are working to start or grow a small business, you’ve got plenty on your mind, and chances are you haven’t thought much about key man insurance. But take it from my experience: By the time you need it, it is too late to do anything about it. Call an insurance agent today, figure out how much key man insurance your company needs and buy it!

By <>

What you’ll discover in this report:

* How easy and common it is to be the target of a lawsuit!
* How to get massive protection for just pennies a day
* What you should know about what’s not covered with Umbrella Insurance
* Tips on how to SAVE MONEY
* Insurance jargon demystified! What are you really getting? Find out here… …and much, much more!

If insurance is for a rainy day, umbrella insurance is for a storm! A day when someone hits you with a lawsuit for hundreds of thousands, even millions, of dollars.

Think it can’t happen to you? Do you know how lawsuit-crazy this country is? You can’t pick up a newspaper these days without reading about somebody suing somebody else for . . . what? You read the article and say, “That’s crazy. There’s no way somebody should be able to sue for that.”

Well, guess what? The courts are clogged with these “crazy” lawsuits, and sometimes the person bringing the lawsuit wins. Do you really need coverage for these crazy lawsuits? Maybe not.

But remember that a lot of lawsuits aren’t crazy at all. Some get settled. Actually, most get settled. Often, the person being sued winds up paying something to the person who brought the lawsuit. And that doesn’t even include the fees the defendant in the lawsuit has to pay to his or her attorney.
How Far Will Your Current Protection Really Go to Protect You?

* Example. Say you’re at fault in an auto accident that causes serious injuries to the driver and/or passenger(s) in the car you hit. Your auto insurance has liability limits of $100,000 per person and $300,000 per accident. (Which are pretty common limits, by the way, even for people with a lot of assets.)

How far do you think $100,000 will go, particularly if the person or persons involved suffer injuries that keep he/she/them from working for months, even years? The accident victim(s) could sue you for his/her/their medical bills, lost income, even pain and suffering. In this scenario, $100,000 is not nearly enough coverage.

Guess what happens if, say, you are hit with a judgment in the case of $250,000 for one person involved in the accident? Your auto liability insurance will cover the first $100,000 — and you’re stuck for the rest. And that doesn’t even include the legal fees you have to pay to your attorney. In addition, in some cases, you might have to pay all or part of the legal fees the other party or parties incur. Ouch.

Umbrella insurance is for these very rainy days. While it may seem unnecessary, it really isn’t, particularly for people with homes and other significant assets to protect. Do you really want to hand over your house and/or gains in the stock market to someone you injure in an auto accident? It could happen. But it doesn’t have to.
Umbrella Insurance: Massive Protection for Pennies a Day

Because it is designed for those really rare rainy days, umbrella insurance is cheap. It is also versatile. Umbrella insurance provides additional coverage not only for your auto policy, but also your homeowners or renters policy. Further, umbrella insurance covers things auto, homeowners and renters policies don’t.

Such as? In the insurance world, there’s something called “personal injury.” This is not damage to someone’s body, but to his or her career or reputation.

* Example. Imagine you say in public that a certain person is a lying, no-good so-and-so. Maybe you really believe this to be true, but the person is very offended. He or she can sue you for slander (if you say it) or libel (if you write it). If this happens, your umbrella policy will provide coverage, including legal fees, up to the limits of the policy.

Umbrella insurance also covers personal injuries such as invasion of privacy, wrongful entry, wrongful eviction, false arrest, false imprisonment and malicious prosecution. Some umbrella policies will provide coverage if you are sued because of your service on the board of a civic, charitable or religious organization.

* Note. Umbrella insurance doesn’t cover everything. For example, if you are sued and the court assesses punitive damages against you, those damages won’t be paid by your umbrella insurance. What are punitive damages? They are damages awarded to someone in order to punish the person being sued. Punitive damages are awarded for outrageous, totally reckless conduct — at least what a judge or jury perceives to be outrageous, totally reckless conduct.

You can usually buy umbrella policies with $1 million limits for $200 to $300 a year. If you need more than $1 million limits, you can usually buy each extra $1 million of coverage for $100 to $200. Think about this. For only a few hundred dollars, you can increase your per-person liability limits 10 times, 20 times, even 30 times — and it applies to both your auto and homeowners or renters policies as well.
Umbrella Coverage: How It Works…

Umbrella insurance actually “sits” on top of your auto and homeowners or renters liability coverage. Say you have a per-person liability limit of $100,000 on your auto policy. Say also that you cause an accident in which a driver or passenger in the other car is ultimately awarded $250,000.

Your auto policy will pay the first $100,000, and your umbrella will kick in the remainder. Well, almost the remainder. Like auto policies, umbrellas have deductibles. Usually anywhere from $250 to $2,500. But a deductible of even $2,500 is a small price to pay if you’re hit with a $250,000 judgment.

Because umbrellas are over the top of the auto, homeowners or renters liability limits, some insurers offering umbrella policies require you to have your auto and homeowners with these
companies as well. But that’s not really a problem because most insurers are positively tickled to be able to provide someone’s auto, homeowners or renters, and umbrella insurance.

In addition, most insurers offering umbrella coverage require you to have liability limits of a certain amount on your auto and homeowners policies. Typically, this minimum is $100,000 for homeowners and $100,000 per-person for auto.

Yes, you could chose to increase your auto and homeowners liability limits to, say, $1 million for each policy. But not every auto and homeowners insurer offers such high limits.

* Tip. And, do you know what? Your umbrella policy is usually a cheaper option than increasing the limits on your auto and homeowners insurance. Plus, you get the additional “personal injury” coverage that is not available in your auto and homeowners or renters policies.

Be a smart consumer…but don’t try to be your “own agent.” Protection for you and your family requires constantly vigilance….and a partnership between you and your professional agent. For the latest information on how to save money AND get the best protection for yourself and the people you care most about call <> at <
>.

What you’ll discover in this report:

* Surprising secrets about what’s covered in a standard Renter’s Policy!
* The most dangerous myth about renters insurance
* What to do before you ever have a claim
* Protecting your jewelry, art, computer equipment and other valuables that may not be covered!
* Insurance jargon demystified! What are you really getting? Find out here…

Busting the Myths about Renters Insurance

It is one of the most commonly repeated myths about insurance.
Renters don’t need insurance because their landlord’s policy provides
coverage for the renters’ property.

No, it doesn’t. Further, if someone slips and falls in your
apartment or rented home, your landlord’s insurance usually won’t
provide any coverage for you if you are sued.

Renters insurance is basically like homeowners coverage without coverage for the structure.

* Note. Renters insurance provides coverage for
your possessions and for liability if someone injured while on your
premises sues you. Renters insurance also covers any of your
possessions when they are away from your residence, including in your
car.

In addition, renters policies provide what are called additional
living expenses. If some catastrophe covered by the policy — fire,
bursting pipes — makes the place you are renting uninhabitable, the
policy will pay some of the costs you incur to live somewhere else
while the residence is being repaired.

The coverage is usually limited to either a specific period of time,
say 12 months, or what the insurance company considers a “reasonable
length of time.” Also, there is a cap on the amount of additional
living expenses the insurer will pay, usually a percentage of the total
liability limits.

Like homeowners insurance, renters policies do not cover damage or
losses resulting from flooding, landslide or earthquake — although it
is possible to buy coverage for these risks separately.
Actual Cash Value vs. Replacement Cost for renters

Like homeowners insurance, there are two options for covering your possessions:

* Actual cash value, which is the replacement cost of an item minus depreciation.

* Replacement, which allows you to buy a new item to replace the one lost, stolen or damaged, no matter how old that item is.

* Note. Because replacement cost is better coverage, it costs more. Usually about 10% to 15% more.

Speaking of cost, renters insurance is fairly cheap when compared
with other personal insurance policies. Usually, you can get a decent
policy for about $200 a year, depending on where you live. If you
choose higher limits for your personal property and liability coverage,
you could pay as much as $400 a year.

The policy has dollar limits on certain types of items. For example,
there is usually a $1,000 limit for jewelry and anywhere from a $3,000
to $10,000 limit for computer equipment. If you want higher limits, you
can purchase an endorsement, or “floater,” to the basic policy.

Like homeowners insurance, renters coverage has a deductible — the
amount you will pay before insurance kicks in. The higher the
deductible, the less your policy will cost.

You probably should have the same liability limits on your renters
policy as you do on your auto insurance policy. Like your auto policy,
you want to make sure your renters insurance will cover all your assets
if you are sued.

If you are renting with a roommate or roommates, it’s probably best
to include all your roommates on the policy. In addition, if you are
living and renting with a significant other, many insurance companies
will allow you to obtain joint coverage, just as if you were married.
If You Rent: How to Keep Track of What You Own…

* Tip. Like homeowners, you as a renter should have
a written and visual inventory of all of your possessions. For items of
significant value, you should write down the model numbers, serial
numbers, date of purchase and price. Make a written copy of your
inventory and keep it at another location, along with your photographs
and/or video of the items. A safe deposit box is a good place to keep
such records.

* Note. If one of your “possessions” is a dog, you
may find it more difficult to get coverage, particularly if that dog is
a Rottweiler, Pit Bull or Doberman.

* Tip. Finally, remember that many insurance
companies give discounts to those who have multiple policies with a
given insurer. Shop around, or have your agent shop around, for
insurance companies that have the best rates, discounts, etc., for
renters and auto insurance if both are placed with the same company.

Be a smart consumer…but don’t try to be your “own agent.”
Protection for you and your family requires constantly vigilance….and a
partnership between you and your professional agent. For the latest
information on how to save money AND get the best protection for yourself and the people you care most about call <> at <
>.

What you’ll discover in this report:

* Surprising secrets about what is and what is NOT covered in a standard Homeowner’s Policy for your boat!
* Clear up the common confusion about the different kinds of “watercraft” insurance…most owners don’t know the answer!
* How to save money on boat insurance…
* A special kind of insurance you may need to get…depending on what you do with your boat…
* Insurance jargon demystified! What are you really getting? Find out here…

They are called pleasure boats or pleasure crafts, but, let’s face it, sometimes they’re a “pain.” They are an expensive habit, to say the least — and potential danger comes with the pleasure.

They are, after your house(s) and maybe your car(s), probably your most valued assets. You can choose to own and operate a boat, yacht or Jet Ski without insurance (although some marinas and yacht clubs won’t let you dock your craft unless you have coverage). That wouldn’t be a very smart choice, however.

* Note. If you have a homeowner’s insurance policy, you may have some coverage for your watercraft, but it is very, very minimal. A typical homeowners policy will pay as much as $1,000 to repair damage to your boat, but — guess what? — That damage has to occur while the boat is at your home. This is not exactly the kind of damage coverage you need. In addition, there may be some liability coverage. Some, but hardly enough.

You can gamble and not buy insurance for your watercraft, but it is a big gamble. You’re risking not only losing or severely damaging the boat in an accident without compensation, but possibly your other assets if your boat causes damage and/or injuries to other boats and/or boaters.
Lots of Options…How to Choose

Perhaps more than any kind of insurance, it really pays to shop around for coverage for your watercraft. Depending on the type of craft you have, how fast it moves, where you operate it, etc., you could find that many policies are prohibitively expensive, or don’t provide the coverage you need.

First, you need to know that there are three types of “boats.”

* Anything less than 16 feet long is usually called “personal watercraft” by insurers. This includes Jet Skis, Waverunners, Tigersharks, Wet Bikes and Sea Dog “cycle” style models, as well as Jazz and Rage “mini boats.”
* “Boats” are 16 feet to 25 feet, 11 inches.
* Anything at least 26 feet long is classified as a “yacht.”

You will find that insurers have varying appetites for these types of watercraft. For this insurance, smaller is often not better. In fact, personal watercraft tends to be more accident-prone than most kinds of boats and yachts.

Some insurers won’t provide coverage for your personal watercraft at all or won’t unless it is part of a larger policy. For some owners of personal watercraft, an insurer that specializes in this type of risk will be the best bet. Your policy should include coverage for injuries to you and your passengers, the craft itself, liability (for damage and injuries to other crafts and people) and theft.

* Note. If you use your watercraft for water-skiing, you need to get coverage for this exposure as well. (It usually needs to be added to a standard policy.) You can also get coverage for the trailer(s) you use to transport the watercraft.
Insurance for Powerboats, Sailboats

In the insurance world, “boats” are usually smaller powerboats and sailboats. Standard policies for boats cover damage to the craft, usually on what is called an “all-risk” basis. In this case, all-risk includes damage caused by fire, lightning, theft, vandalism and windstorms.

The coverage is usually available for the boat itself, outboard motor(s), the boat’s trailer and personal property on the craft that is part of the normal operation of the vessel. Some insurers offer separate coverage for fishing equipment, cell phones and computers that are aboard the boat.

The standard boat policy also provides liability coverage, which is usually offered in increments of $100,000 to as much as $1 million. Therefore, it is similar to auto insurance liability in terms of what is available.

Most standard policies also cover medical expenses incurred by you, your family and any other passengers on the boat. Some policies also provide coverage for injuries caused by uninsured boaters or by those boaters who don’t have enough insurance. If this sounds like uninsured motorist coverage in an auto insurance policy, it basically serves the same purpose.

* Tip. If you’re shopping for boat insurance, it’s wise to consider only those policies that offer this coverage. Discuss this with your agent.
Insurance for Yachts

If your watercraft is 26 feet or longer, you will need to buy yacht insurance, which provides basically the same coverage as boat insurance, but the terms are different. Under a boat policy, coverage for damage to the craft is called “physical damage.”

Under a yacht policy, the term is “hull.” Liability coverage under a yacht policy carries the name “property and indemnity,” which insurance people often abbreviate to P&I. As with boat liability coverage, P&I is available in increments of $100,000. Depending on the size of your craft, you can buy P&I limits from $2 million to as much as $50 million.

* Note. Like boat insurance, you should seek a yacht policy that offers coverage for medical payments (for you and your passengers) and uninsured boaters.

The cost of your boat or yacht policy is based on a variety of factors: horsepower; how fast it moves (it can cost as much as 50% more to insure a speedboat than it does a sailboat of similar size); where it is to be used; age of the craft and experience of the vessel’s operator.
* Tip. Insurers often offer premium discounts of 5% to 20% to those boat/yacht owners who have taken an approved boating safety course. (In some states, such courses are required to operate a boat or yacht.) Premium discounts are available, from some insurers, for newer vessels and protective devices (depth finders, ship-to-shore radios, burglar alarms). You can also save money on the policy by electing to take a higher deductible.

Like boating itself, watercraft insurance is not cheap. As such, it truly pays to shop around. There are a lot of different policies and coverage options available. Some policies might be significantly cheaper than others, but they don’t offer the coverages you need.

* Tip. This is a complex area of insurance with lots of options. Talk to your agent. Let him or her assess the many options out there and find the coverage that best suits your needs and best protects your assets, particularly that pleasure craft you love so much.

Be a smart consumer…but don’t try to be your “own agent.” Protection for you and your family requires constantly vigilance….and a partnership between you and your professional agent. For the latest information on how to save money AND get the best protection for yourself and the people you care most about call <> at <
>.

What you’ll discover in this report:

* Insider secrets about how insurance companies price your insurance
* How not to get ripped off when you do buy protection
* How much to buy…how much not to buy
* Little known facts about the six different kinds of insurance in a standard auto policy
* Who’s really covered…who’s not!
* How do you get the most for your money? 11 ways to SAVE MONEY on your car insurance…
* Straight answers to the nagging questions about Rental Car Insurance

There are several ways you can purchase insurance for your car(s). You can buy it over the Internet at literally hundreds of different web sites. You can call an 800 number and buy it over the phone directly from an auto insurance company. You can call an insurance agent. In some cases, you can buy it at your bank or credit union.

It’s not surprising you can buy it so many ways. After all, there are hundreds of insurance companies that sell auto coverage in your area. How do these companies differentiate themselves? Some brag about their superior service when you have a claim. Some tout how easy it is to buy from them. But, often, auto insurance companies try to compete on price. Just as if you were buying a plane ticket, a radio or soda pop.

* Tip. Some people believe auto insurance is just a commodity. It’s not.

You’re not buying a soda. You’re protecting your financial well being…and the choices you make could affect you for the rest of your life.

But before explaining how complex auto insurance products are, let’s talk about price. It’s pretty complex, too.
No Insurance Company Has the Lowest Price for Everyone

* Note. No auto insurance company – no matter what it says in its ads – offers the lowest price for every driver in every location. There are companies that are often among the lowest. And there are companies that are usually among the highest. But no company is the lowest for everybody.

* Tip. Also, be aware that prices fluctuate. Sometimes companies “buy the market” with low prices to gain new consumers…then their prices gradually – or not so gradually – sneak up.

They also have to change prices based on their profitability, losses and other factors.

Every company has a slightly different appetite for the risks it wants to take on. Some insurers want only very good drivers who have no tickets and no accidents. Some companies, believe it or not, actually want bad drivers. In fact, these companies specialize in insuring people with lousy driving records.

Some companies target drivers who live in certain areas. There are insurers that really like to do business in big cities, and there are others that would prefer to stay away from highly populated areas.

* Tip. Remember that sometimes “you get what you pay for.” The cheapest option may not provide you or your family with the best protection. The saying goes, “you don’t need insurance until you have a claim.” When you do have a claim – something that goes wrong – that’s a terrible time to discover you don’t have adequate protection!

If you think auto insurance is a commodity, consider this:

A person with a good driving record will pay three, five, even 10 times less than a driver with a couple of tickets, an accident or who has been cited for and convicted of driving under the influence.

A person who lives in a major city – say Los Angeles, Chicago, Houston or Denver – will pay three, four, even five times more than someone who lives in a rural area or small town, even though the two have the same driving records.

* Example. The last two paragraphs are average differences. Auto insurers are all over the map on prices in a given area. Say you live in Everywhere, U.S.A. (don’t we all). Say you have a good driving record. One insurance company might charge you $500 a year for a policy that provides almost every coverage available. Another insurer might charge you $1,500.

As you can see, it can pay to shop around. Just be sure:

* You really understand the different coverages in your policy, or,
* You have an agent you really trust who can examine coverages and prices for you.

Auto Insurance: How Much Should You Buy?

So far, we’ve been talking about “auto insurance” as if it were, well, a commodity. The fact is, you can buy a lot of auto insurance, or a little. Most states, more than 40, require you to have auto insurance.

But they don’t require you to have much. In states that have so-called mandatory auto insurance laws, all you are required to buy is a little bit of liability coverage. This is so you can pay for some of the damage your car does to other cars and other people not in your car.

How much are you required to buy? In most states with mandatory auto insurance laws, the minimum needed is liability that provides 1) $15,000 for any person involved in an accident with you, 2) a maximum of $30,000 for all persons in the accident, and 3) $5,000 for damage to the other vehicle(s) involved. That’s not much. In fact, it’s next to nothing.

* Tip. The minimum amount of insurance required by most states is not much. Seriously consider getting more protection in order to protect your financial health.

* Note. Notice that mandatory auto insurance laws do not require you to buy coverage for your own car. Or coverage for your injuries. Or coverage if you are hit by someone who doesn’t have insurance.

If you buy just the minimum coverage required by law, you are leaving your assets at considerable risk. Your car, obviously. And your home, if you are at fault in an accident that causes serious injuries to the other parties.

And how far do you think $5,000 will go if you total somebody’s Lexus? Not far enough!
Little Known Fact: There Are Six Distinct Coverages in an Auto Policy

The auto insurance “commodity” is actually a product with six distinct coverages:

Let’s look at them here.

1. Bodily Injury Liability – It pays the medical and other expenses of those people injured or even killed in accidents you cause. This is required by most states, usually with a minimum coverage of $15,000 for any person involved in an accident with you and no more than $30,000 for all the persons in the accident.

2. Property Damage Liability – It covers the damage your car causes to property. Usually, that’s the other car or cars involved in the accident, but it also covers damage you do to any object you hit. Garages, buildings, lampposts, fences, whatever. This is also required in most states, usually with a minimum coverage of $5,000.

3. Collision – This is for damage done to your car when it collides with other vehicles (your fault) or other objects (again, your fault).

4. Comprehensive – This covers damage to your car that results from something other than a collision with another vehicle. As examples, damage caused by vandals or a wind-blown tree hitting your car. It also includes coverage for theft.

5. Medical Payments – It pays medical, and even funeral, expenses for you as well as members of your family and passengers in your car if it is involved in a collision, regardless of who caused the accident. It also covers you as a pedestrian if a vehicle hits you.

6. Uninsured/Underinsured Motorist – This pays for injuries to you and, in some policies, damage to your car if you are hit by a driver who doesn’t have insurance – or by someone who doesn’t have enough insurance to cover your losses. In most states, more than 10% of motorists don’t have any insurance. In some states, as many as three out of 10 drivers don’t have coverage.

Many of those who do have insurance don’t have enough to cover the damages and injuries that would result in a major collision. If you don’t have this coverage, which is often referred to as UM/UIM, you are taking a risk. UM/UIM also provides coverage for any injuries you suffer if you are hit while walking or riding a bicycle by a driver with inadequate or no insurance.
There are Even More Coverages Available…

There are additional coverages you can buy. You can purchase towing coverage, which will pay the costs if your car needs to be transported after an accident. If you’re a member of an auto club, you don’t need this coverage.

You can buy rental reimbursement, which will pay for a rental car you use while your vehicle is being repaired. (If the accident was not your fault, the cost of the rental car is automatically picked up by the other person’s insurance company.)
What are the Various Options for These Different Coverages?

While there are six main coverages in an auto insurance policy, there are numerous options to consider for each coverage.

How much insurance do you need?

Bodily Injury Liability – You can buy the minimum required by law, say $15,000 per person, $30,000 per accident. Or you can buy limits as high as $500,000, even $1 million. Remember that someone you hit can sue you for everything you have.

* Tip. If you have a home, own stock and have a decent income, you should probably buy, at minimum, limits of $100,000 per person, $300,000 per accident. If you have more than $300,000 in assets, you should buy higher limits or an umbrella policy. Consult with your professional agent about this!

Many auto insurance companies now sell what are called combined single limit (CSL) coverages, which have no per-person limit. If you buy, say, $300,000 CSL, that means your policy will pay a maximum of $300,000. All of that could go to one person, if needed.

Some companies include property damage liability in the CSL, which means that if you total someone’s antique car, your policy could pay up to $300,000 for property damage. CSL coverage costs more than traditional limits, but it can be worth it if you have any significant assets.

* Tip. Many insurance agents believe CSL is so important to have, they strongly urge their clients to buy it if it is available.

Property Damage Liability – Several years ago, $25,000 was considered the maximum most people needed for this coverage. Not anymore. There’s a lot of $50,000, $60,000, even $70,000 cars and sport utility vehicles on the road these days.

* Tip. Because of all the super-expensive cars on the road today, you should seriously consider at least $50,000 of coverage, assuming you don’t have CSL coverage; $75,000 might be preferred.

Collision – Consider how much you can afford to pay to have your car fixed if you have an accident. Auto policies have several deductible options.

* Note. Deductible? That’s the part you pay before the insurance kicks in. You can buy deductibles of $100, $250, $500, even $1,000. Obviously, the lower the deductible, the more this coverage will cost.

Unless you’re planning to have a lot of accidents, it’s probably a good idea to have a deductible of at least a couple of hundred dollars. (By the way, the deductible does not apply if someone else hits you and that person’s insurance is used to pay for your car’s damages.)

Comprehensive – Like collision, there’s a deductible with comprehensive, although it is often lower. For example, if you have a $250 deductible for collision, your comprehensive deductible will be, say, $100.

* Note. While collision and comprehensive will pay for the damage or loss to your car, neither coverage will pay for everything on or in your vehicle. Most policies exclude things like CB radios, two-way radios, car phones, cassettes and CDs.

Further, if you add special features to pickups, vans or SUVS, these things probably will be excluded as well. In fact, it’s a good idea for you to talk to your insurance agent about any high-tech equipment or special features you have added to your vehicle.

Many, perhaps even most, of these features aren’t covered in the standard policy. It is possible, however, to obtain special coverage for the high-tech equipment or special features in your vehicle. Your agent can advise you of the options.

Medical Payments (also called Personal Injury Protection) – Some people elect not to buy this coverage because they believe their health insurance is enough in this regard. That’s true – to an extent.

* Note. Unlike your health insurance, medical payments coverage can reimburse you for income lost as a result of injuries suffered in an auto accident. However, medical payments coverage is not nearly as comprehensive as most health insurance plans. Still, medical payments coverage, which usually costs less than $100 a year, is probably a good buy for most people.

In addition, medical payments coverage provides protection for passengers in your vehicle for medical expenses incurred and income lost. In some states, medical payments coverage is not relevant. These are states that have so-called no-fault auto insurance systems. Basically, regardless of who’s at fault, your insurance company pays for damage to your car and/or injuries you incur. Personal injury protection is included as part of your coverage.

Uninsured/Underinsured Motorist – For most people, it’s a good idea to have the same limits for UM/UIM as they have for bodily injury liability. But remember, UM/UIM coverage is for you. It pays for your injuries and, in some policies, damage to your car if the person at fault in an accident with you cannot. Since you based your liability limit on what you have to lose, you should do the same with UM/UIM.
Who is Covered when You Buy Auto Insurance?

All the coverages in your auto policy apply when you are driving, but they also apply when other people are driving your vehicle. The coverages are actually for the car, not the person.

* Note. However, if someone is going to be a regular user of your car, that person’s name needs to be added to the policy.

Your insurance company wants to know who’s going to be using the car. That stands to reason. After all, you could be a great driver, with no tickets or accidents. But your spouse, your teenage child, your reckless cousin could be a lousy driver.

If you let these people drive your car without telling your insurer and these people keep getting in accidents, your insurance company isn’t going to be very happy. In fact, the company will probably cancel your policy.

* Tip. It’s not wise to risk losing your policy by failing to disclose who’s driving the insured vehicle. Keep in mind, however, that if you add drivers with lousy records or who haven’t had much driving experience, your premiums will definitely go up.

Any parent of a driving teenager can tell you this. Teenagers are notorious for getting tickets and having accidents. They are also very inexperienced drivers. As such, when your child gets his or her license, your insurance premiums will go up when you add your child to the policy.

If you buy all six of the major auto insurance coverages, your policy will cover you in most every instance in which you cause damage or injury to your car, yourself, your passengers, or drivers and passengers in other vehicles.

But not all.

* Note. The standard auto insurance policy has some “exclusions,” which is insurance-ese for, “We won’t cover that.” Here are some examples where your auto policy won’t provide coverage:

* If you intentionally try to cause damage to your car or another vehicle. This includes liability coverage.
* If you are using the vehicle to transport other people for a fee. (This does not apply to car pools where the expenses are shared.)
* If you are using the vehicle for certain business activities. This does not include traveling to see clients or taking a standard business trip.
* For damage caused by normal wear and tear, freezing, mechanical or electrical breakdown, or road damage to tires.
* If your car is damaged because of radioactive contamination, intentional or accidental discharge of nuclear weapons, war, insurrection, rebellion or revolution.

Important Question: What are You Using Your Vehicle for?

You can get sideways with your insurance company because you haven’t been upfront about how you are using your vehicle. For example, do you drive your car to work? If so, you will pay more for auto insurance than if you take mass transit. In fact, the further you have to drive to work, the more you will pay.

* Tip. If you drive to work and tell your insurance company you don’t, you have basically committed fraud. Resist this common temptation, even if it will save you a few dollars.

* Example. Say you have an accident on the way to work. Say, also, that you have told your insurance company you don’t drive to work. Your insurer could technically argue that it is not obligated to provide coverage. It is unlikely, however, that this will happen.

Why? Because the insurer would have a difficult time proving that you drove every day. Perhaps this was a one-time thing, or a fairly rare event. In any case, by lying about driving to work, you’ve given your insurance company a good reason to cancel your policy.

Honesty is the best policy when it comes to insurance. Insurance fraud is a huge problem in this country. Claims are frequently padded with nonexistent damages. Accidents are staged. Injuries are faked.

* Fact. It is estimated that fraud accounts for as much as 25 cents to 30 cents of every auto insurance premium dollar. Think about that. If even half the auto insurance fraud in this country were wiped out in the next year, you would pay 12% to 15% less for your next policy.
Personal Car for Business, Company Car for Personal Use

Do you use your personal car for business? Do you have access to a company car? If the answer to either question is yes, you could have potential coverage gaps.

* Example. Let’s say you use your personal car for business. It’s possible your employer is providing some coverage for you through your employer’s commercial auto policy. Some coverage. For the most part, the coverage is for liability only, and often this commercial auto policy doesn’t even apply until the limits on your personal auto policy are exhausted. (This is what insurance people call “excess” coverage.)

* Tip. You should talk to your employer about what, if any, coverage is available to you through the company’s commercial auto policy. That way, if you have an accident while on company business, you know who (or which insurance company) to call.

If you use your personal car for regular business purposes – trips, visiting clients, etc. – your personal auto policy probably provides enough coverage for these activities. (Assuming you have “enough” coverage to begin with.)

But what if your car is actually a source of revenue? You make deliveries, for example. In that case, you likely need a commercial auto policy as well.

* Note. In fact, if you have an accident while delivering a product or using your car as a taxi, your personal auto insurer may well deny your claim. Talk to your agent to make sure you have coverage for all the business activities for which you use your car.

What about company cars? Well, they can be an insurance problem, if you use the company car for business and pleasure, and particularly if you don’t have a car of your own. If you don’t have a car, you probably don’t have a personal auto policy. If you don’t have a car (or personal auto coverage), but use a company vehicle for pleasure, you are inviting disaster if you have an accident during a pleasure trip.

* Tip. If you are in this situation, you should have what is called a non-owned personal auto policy.

Such a policy can also come in handy if you don’t have a car and you rent a vehicle on a trip. Your non-owned auto policy will cover you and your rental car if you have an accident. Otherwise, you would probably need to buy coverage from the rental car company, coverage that is very, very expensive.

* Tip. You can have coverage gaps even if you have a personal auto policy and use a company car for pleasure. Or if your spouse and/or children use the company car for pleasure. Find out from your employer the extent of coverage that is available for your corporate car. Once you know the extent, talk to your insurance agent about what additional coverage you might need.
How Do You Get the Most for Your Money? 11 Ways to Save Money on Your Car Insurance…

So you’re shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 11 – that you can save money. Many of these money-saving ideas may apply to you.

1. One Insurer, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you’re paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company.

These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.

* Tip. Talk to your agent about multi-policy discounts.

2. Good Driver, Good Price? – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.

Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies.

These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?

The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, probably, no one told them there was even a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.

* Tip. Make sure you’re getting the best discount for your driving record. Talk to your agent. And remember, be a safe driver. It will save you money.

3. The Beauty of the Bus (or Other Mass Transit) – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.

* Tip. Some drivers should consider mass transit. Yes, there’s a price there, too. But you will reap the savings of gas and lower insurance costs.

4. Low Mileage, Low Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.

* Tip. If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.

5. High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.

* Note. To get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying – write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the “Highway Loss Data Chart.”

6. Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The lower the deductible you choose, the more you pay. If you have assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim.

* Tip. If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.

7. Drop Unnecessary Coverages – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.

* Tip. As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.

8. Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.

* Tip. Make sure you are taking advantage of all the discounts available to you!

9. Taking the Defensive – Many insurance companies also offer discounts to those who have taken defensive driving courses recently.

10. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.

* Fact. Rates can really vary from state to state. If you’re living in New Jersey, Massachusetts or Hawaii, you’re paying several times more, on average, than you would in North Dakota, South Dakota or Idaho.

11. Credit Where Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.

* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Many insurers do not use credit as a factor.

* Tip. Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.

Whatever your driving record or coverage needs, you should shop around, or let an experienced insurance professional shop around, for the best deal for you. There are literally thousands and thousands of coverage options from hundreds and hundreds of insurance companies.

In addition, not only should you try to get the best deal you can, you also need to make sure you have all the coverage you want/need. Using an Independent Insurance Agent is usually your best bet to get the most value for your auto insurance dollar.
straight Answers to The nagging questions about Rental Car Insurance

* Example. You’ve just started your vacation. You’ve arrived at your destination, collected your luggage, and are in the process of renting a car. You’ve given the person behind the counter your driver’s license and credit card, and now you are being asked if you want to buy “coverage” from the rental car company.

Do you need it?

Probably not, but how can you be sure? The best way is to be prepared and know the answer to this question before you leave on your vacation.

So why shouldn’t you buy insurance from a rental car company? The person behind the counter is (usually) not a licensed insurance professional. He or she is not conversant with insurance laws and whether your own personal auto policy covers you when you rent a vehicle (in most circumstances, it does).

Some rental car company personnel may say you are required to buy the coverage (not true) or you will be personally liable for any damage to the car while you’re renting it (most likely, not true).
This Coverage Is Incredibly Expensive

* Fact. While it’s true you could be making a costly mistake if you need the rental car coverage and don’t buy it, you’re also making a costly mistake if you buy it when you don’t need it.

Rental car insurance is incredibly expensive. On a daily basis, which is how it is sold, the rental car coverage can cost 10 to 20 times more than your personal auto policy. If you buy all the coverages offered by the rental car companies, you could easily double the daily cost of your rental vehicle.

So who needs to buy the rental car coverage? Well, here’s who doesn’t. If you have insurance for your own cars, including collision and comprehensive coverages, you don’t need the rental car insurance – provided you are not renting the vehicle for business purposes.

If you’re on vacation, no problem. Just say no. If you’re on vacation but planning to do some business, you’re probably OK. But you should talk to your auto insurance agent if you mix business and pleasure on the trips where you rent cars.

* Note. One thing to keep in mind: Your collision and comprehensive coverages on your personal auto policy have deductibles (the amount you must pay before the insurance kicks in). Those deductibles apply to damage to rental cars as well.
What if You Don’t Carry Collision Coverage?

So what happens if you don’t carry collision and comprehensive coverages on your own cars? Many people don’t, particularly if they have vehicles that are at least 10 years old.

* Note. If you don’t have collision and comprehensive, your personal auto policy won’t cover damages to the rental car if it is in an accident, stolen, vandalized, collides with an animal or burns.

So what should you do?

You can risk it, not buy the rental car company’s collision damage waiver (CDW) or loss damage waiver (LDW), and hope you don’t have an accident or encounter anything that damages the vehicle. You’ll save money, but it might not do much for your peace of mind, particularly if you’re driving in a strange city or area.

* Tip. If you’re averse to risk, you probably should buy the CDW or LDW. Some rental car companies offer some options with their CDWs or LDWs. Some come with deductibles, like regular collision and comprehensive coverages, while others provide first-dollar coverage.

Obviously, though, first-dollar coverage comes at a higher price. And some options limit the coverage. In other words, after a certain amount of damage to the vehicle, say $5,000, you would be on the hook.
What if You Damage Another Vehicle When You’re Renting a Car?

What about damage or injuries you cause to other vehicles and people while you’re driving the rental car? If your personal auto policy includes liability insurance (most states require some level of such coverage), your policy will pay for any damage or injuries you cause to other cars or people – up to the limits of the policy, of course.

* Note. If you are comfortable with the amount of liability coverage you have for your own cars, you don’t need to buy additional liability insurance for vehicles you rent.

If you don’t have liability coverage – if you don’t have a car, you’re probably not going to carry auto insurance – you actually may not need to buy the rental car company’s liability policy, either.

Most states require rental car companies to provide some liability coverage to you at no charge. The limit of the free liability coverage is equal to the state’s minimum liability limits.

Is this enough? Probably not, and certainly not if you cause a serious accident.

The minimum liability limit requirements are something like no more than $15,000 for injuries to any one person, no more than $30,000 for injuries to all persons, and no more than $5,000 for damage to the vehicle(s) you hit. That’s not much at all.

* Tip. If you have any assets to protect, you should strongly consider purchasing the rental car company’s liability coverage, which costs $7 to $15 a day depending on the state and level of coverage you choose. Higher liability limits mean higher daily costs.

If you have any concerns about whether you need to buy the coverages offered by rental car companies, you should talk to your auto insurance agent. The rental car coverages can double your daily rate. That’s a lot to pay for something you don’t need.

Be a smart consumer…but don’t try to be your “own agent.” Protection for you and your family requires constantly vigilance….and a partnership between you and your professional agent. For the latest information on how to save money AND get the best protection for yourself and the people you care most about call <> at <
>.

State Farm Insurance Co., the nation’s largest home insurer, has stopped writing new policies in Texas, California and several other states, and is said by one knowledgeable source to be “taking a really hard look” at its entire book of homeowners business. And Allstate Insurance Co. has sought permission from regulators in nearly two-dozen states for rate increases averaging almost 20 percent.

The reasons for all this are fairly straightforward: There has been a larger-than-usual number of catastrophic events over the last 12 years resulting in more than $100 billion in damages, the cost of home repairs has increased substantially and claims involving mold have come out of nowhere.

The industry says it is paying out far more than it is taking in. You might even say it is experiencing a disaster of its own — a “25-year profitability drought,” says Drew Gissinger, president of Balboa Insurance Group, who notes that the homeowners product line may be “a loss leader” for some carriers.

Fortunately, there are steps you can take to save money while protecting what may be your most valuable asset. Here are some ideas on how to cut your cost of obtaining homeowner’s insurance:

- Check your credit. For years, insurers based their rates mainly on the location and age of the property and its distance from the nearest firehouse. Now, many have added a new twist: insurance scores based on credit information. Like mortgage companies and other credit issuers, insurers believe that a statistical number derived from information contained in your credit report is highly predictive of their risk. Some use scoring only when other factors suggest you are likely to file more claims, but others use them more extensively as both an underwriting tool and a mechanism for setting rates.

Without arguing the merits of insurance scoring, many people doubt the correlation between credit and claims. But it is important to pay your bills on time. It’s also wise to make sure there are no errors in your credit records and, if there are, to have them corrected as soon as possible.

If you are denied insurance because of something in your credit report, the carrier is obliged to notify you, and you have the right to challenge that information. But by then, it may be too late.

- Avoid nuisance claims. The more claims you file, the more you are going to be charged. So use your coverage to protect you against catastrophic losses and take care of the minor incidents yourself.

- Shop around. Prices vary from company to company. It will take a little effort on your part, but the savings could be substantial.

Price is important, but there are also other factors to consider when choosing an insurer. You want one that is financially stable, takes the time to answer all your questions and handles claims fairly and efficiently. And you want to make sure the company is not prone to cutting loose anyone and everyone who files a claim.

You can check the financial health of the various carriers with rating companies such as A.M. Best and Standard & Poor’s. To get an idea about service, you can talk with friends and relatives about their experiences or consult consumer guides. Every few years, for example, Consumer Reports rates insurers based on its readers’ overall satisfaction with their particular companies.

- Raise your deductible. A deductible is the amount of money you pay toward a loss before the insurer pays. The higher the deductible, the lower your premium. According to the Insurance Information Institute, bumping the deductible to $500 from $250 could cut your costs by 12 percent. You could save as much as 25 percent by jumping to $1,000, and up to 30 percent by going to $2,500.

It’s like self-insurance: The more risk you take, the lower the premium. But be careful. Don’t go so high that you don’t have the cash reserves to cover your losses should you have to file a claim.

- Review your coverage. Your home should be insured for what it would cost to rebuild, not its assessed or appraised value. So if your lender required 100 percent coverage when you took out your mortgage, cut back as soon as possible.

Why? Because the land and foundation on which your place is built are not at risk. They don’t burn, nor are they vulnerable to theft, windstorm or other perils, so they need not be covered.

Never lower coverage to less than 80 percent of your home’s replacement costs, though. With anything less, you waive the right to collect the full replacement value of the property, even for a partial loss.

For example, if you carry $150,000 worth of coverage on your $200,000 house, you have 75 percent coverage. So if the place burned to the ground, the insurer would compute the amount of your claim by taking 75 percent of $150,000 and pay just $112,000 for your total loss. But if your house was insured for $160,000, you’d have 80 percent coverage and the entire cost of rebuilding would be paid.

- Look for discounts. It may be possible to lower your costs by buying all your insurance from the same company. Some firms will reduce their premiums 5 percent to 15 percent if you buy two or more policies from them. But make sure the combined price is lower than buying the same coverage from competing companies.

Other discounts abound. You could be given a break of up to 10 percent if you’ve been a policyholder for six years or more. And if you are over 55 and retired, you may qualify for up to a 10 percent discount. You usually can obtain reductions of at least 5 percent if you have a smoke detector, burglar alarm or dead-bolt locks. Or you could be eligible for up to a 25 percent cut if you have a fire and burglar alarm system that rings at a monitoring station.

Most companies offer discounts, but they don’t offer the same ones or the same amounts in all states, another reason to comparison shop.
Lew Sichelman, United Feature Syndicate – October 13, 2005
Copyright © 2002, Chicago Tribune

The circle of safety: How to protect your in-home business

By <<agent’s name>>

Everyone with – or considering – an in-home business must read this report!  Make sure that you and your business are getting the right protection!

If you are not working at home yet, you may be soon. For more and more Americans, their “commute” to work is from the kitchen or living room to the den or study. By some estimates, there are as many as 18 million home-based businesses in the United States, and that number is expected to grow rapidly.

* Fact. Unfortunately, many of these home-based businesses, perhaps even most, do not have adequate insurance coverage. One study found that 60% of those who work at home may not have insurance for their business activities.

The study also found that most of those without business-specific insurance believe they are protected by their homeowners insurance. Actually, a homeowners policy does offer some coverage for home-based business, but it is minimal. Most homeowners policies provide a maximum of $2,500 coverage for business equipment (computers, fax machines, etc.) in the home.

If that sounds like it’s enough, it probably isn’t. If you are sued because of your home-based business activities — the company that hired you as a consultant believes your advice was dead wrong; the computer equipment you “fixed” doesn’t work; the cookies you baked made someone ill — your homeowners policy won’t protect you.

Further, if you have to temporarily shut down your business for whatever reason, the homeowners policy won’t allow you to recover the income you lost because of the shutdown. There are insurance policies available to home-based businesses that do provide these coverages.

Important Question: What’s the Scope of Your Business

Some home-based businesses don’t need much insurance beyond a homeowners policy, particularly those businesses that have minimal equipment, don’t have visitors, don’t often visit clients or offer fairly straightforward products. It is possible to add coverage to your homeowners policy for your business.

* Tip. Often, for as little as $14 a year, you can double the limit of coverage for business equipment from $2,500 to $5,000.

* Note. But be aware that these additional coverages, known as endorsements, don’t protect you if you are sued as a result of your business activities. Also, the endorsements usually don’t cover income lost. Some insurance professionals strongly believe that business-related endorsements to homeowners policies aren’t a good idea for any home-based operation.

One fairly inexpensive option for home-based business owners is a home office policy, also known as an in-home business policy. The policy provides the standard coverages for

homeowners — including fire, theft and personal liability — as well as coverages for business property, commercial liability and loss of income.

* Tip. Often, for about $200 a year, you can purchase a policy that offers $10,000 of coverage for business property. Also, you can buy business liability coverage with limits of $300,000 to $1 million. (If this sounds like a lot of coverage, it really isn’t. Most people with any significant amount of assets carry liability limits of at least $300,000 on their personal auto policies.)

In addition, the home office/in-home business policy provides some coverage for loss of valuable papers and records, accounts receivable and business property not located in your home. Also, you can buy additional coverage for equipment breakdown and theft.

* Note. While the home office policy offers adequate coverage for many in-home businesses, it is not the best option, or even a prudent option, if you conduct a large amount of your business away from your home.

The most extensive coverage for home-based businesses is available in a business owner’s policy, which insurance people call a BOP. If you stock a lot of inventory, manufacture fairly complex products or provide professional services where there is a significant risk of being sued by disgruntled customers, a BOP probably is the best option.

Depending on the limits of coverage you need for property and liability, BOP’s can cost anywhere from $150 to more than $1,000 annually.

* Tip. No matter what type of coverage you choose — whether it’s an endorsement to your homeowners policy, a home office/in-home business policy or a BOP — you and your agent should evaluate on a regular basis, at least once a year, whether your insurance is adequate. As your business grows, it’s quite possible it will outgrow your insurance coverage. The bigger your business, the higher limits of property and liability coverage you need.

Be a smart consumer…but don’t try to be your “own agent.”  Protection for you and your family requires constantly vigilance….and a partnership between you and your  professional agent.  For the latest information on how to save money AND get the best protection for yourself and the people you care most about call <<agent’s or agency name>> at <<phone number>>.