If I File an Auto Insurance Claim, Will My Premium Go Up?

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Many people are hesitant to file claims with their auto insurance company out of fear that their premiums will be increased or the policy will be cancelled.  While practices vary between insurance companies, more will increase your premiums by a predetermined percentage for each chargeable claim made against your policy above a specific dollar amount.

A chargeable claim is one that an insurance company considers to primarily be your fault.  Also, these premium increases will generally stay on your premium for three years following the claim.

Your insurance company also has the right to not renew your policy if your driving record get worse or you have had several accidents.  Insurance companies differ in what they feel constitutes a bad driving record; however, most of them view two minor violations (minor speeding, moving violations, etc.)  or one major violation (excessive speed, DUI, etc.) within three years as a poor driving history.

You may also decide not to renew your policy if your driving record gets markedly worse or you have several accidents. Different insurers have different rules about what constitutes an unacceptably bad driving record. But some accidents, such as those caused by drunk driving, will probably trigger a nonrenewal from virtually every insurance company.

If you have an accident but don‘t report it to your insurer, you are taking a risk, even if the damage seems minor. If the other driver sues you weeks or months later, your failure to report the accident might cause your insurer to refuse to honor the policy. And even if they do honor the policy, the delay will certainly make it harder for the insurer to gather evidence to represent you.

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Earthquake Insurance Coverage

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THE TOPIC

With the recent earthquake in California, we through we would share some insight into earthquakes and insurance.  Earthquake, at least for insurance purposes, is defined as a sudden and rapid shaking of the earth caused by the shifting of rock below the earth’s surface.

Earthquakes are not covered by a standard homeowners insurance policy.  Coverage must usually be purchased via an endorsement or on a separate policy.  Also, according to the U.S. Geological Survey the U.S. experiences approximately 20,000 earthquakes a year.

As development increases in seismically active areas so does the risk for loss when an earthquake hits.   In July 2014 the U.S. Geological Survey updated its U.S. National Seismic Hazard Maps. The new maps reflect the best and most current understanding of where future earthquakes will occur, how often they will occur, and how hard the ground will likely shake as a result.

The new maps show that 42 states are at risk, with 16 states that have experienced earthquakes with a magnitude 6 or greater and which are considered at high risk.

Earthquake hazard is especially high on the West Coast, the intermountain west and in several active regions of the central and eastern U.S.

EARTHQUAKE INSURANCE COVERAGE

As there are no national earthquake programs, coverage is usually purchased through a private insurance company.  (However, some states, like California, have put together state programs.)

  1. Private Insurance Company:  Just like with flood insurance, there are several insurance companies that have put together programs for earthquake insurance you can purchase separately or in conjunction with flood and landslide coverage.
  2. Your Current Homeowner’s Policy.  There are some states where you are actually able to purchase earthquake coverage through your homeowners insurance policy.

Items to Note:

    • Your deductible is almost always a percentage of the coverage limit (typically 5%).
    • Pay special attention to your policy if you purchase earthquake coverage through your homeowners insurance company.   While you will have coverage for earthquakes, your policy will most likely exclude everything else related to land movement, including landslides/mudslides.

If you would like to find out more about earthquake insurance, please contact our office.

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Does my credit score affect my insurance premiums?

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What does my credit rating have to do with purchasing insurance?

Everyone knows that credit scores are an evaluation of your payment history on a variety of consumer debt items like your home, credit cards, auto loans, etc.  Credit scores are also used for a variety of other purposes such finding a place to live, getting a cell phone, and, most recently, buying insurance.
Insurance companies have found a direct correlation between one’s credit score and likelihood of filing an insurance claim at some point in the future.  According to the actuarial tables and statistics the lower your credit score, the more likely you are to file a claim. So insurance companies are knowing using credit scores to generate an “insurance score” as part of the underwriting process.  Your insurance score plays a large role in determining the premiums charged by your homeowners and auto insurance companies.
Therefore a solid credit history can go a long way to decreasing your insurance premiums.  We recommend checking your credit score regularly and requesting that any discovered errors are immediately corrected.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to provide you with a free copy of your credit report, at your request, once every 12 months. For more information, go to the Federal Trade Commission’s Web site on credit.
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Do I Really Need Umbrella Insurance?

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Do I Really Need an Umbrella Insurance Policy? Here Are Some Things to Consider
Standard auto, homeowner’s and boat insurance policies cover liability a person may have for bodily injuries or property damage for which you are negligent.  while limits of $100,000 to $250,000 may cover you for most accidents, there are cases where those limits simply aren’t enough.   And if you have personal assets above those limits you may be jeopardizing those assets.

To cover financially devastating events like these, insurance companies offer personal umbrella policies. These policies provide additional protection when an accident uses up the amounts of insurance provided by the other policies. They may also cover some types of losses these other policies do not cover.

In order to determine whether or not an umbrella policy is right for you, you should answer the following questions:

First, do you have items that put you at a higher risk for a catastrophic loss? For example, do you have multiple cars or inexperience drivers in your household?  Household attractions like swimming pools, trampolines, and swing-sets present an exposure to severe losses. Boats, like cars, can cause serious injuries and damage if the operators are inattentive, intoxicated, or inexperienced.

Next, do you have any exposures that do not involve potential physical injury or illness or property damage or that might require different coverage? For example, do you or any members of your family participate in social media websites or online discussion forums? Does anyone coach a youth sports team, belong to the governing board of a non-profit organization, write computer code as a hobby, or give music lessons? These activities present different exposures to legal liability.

Third, do your underlying policies have high enough limits? How high are the liability limits on your homeowners and auto insurance policies?  Does your homeowners insurance cover any business activities? Does it cover family members accused of slander, libel, or defamation of character in online postings?

Lastly, an umbrella may cover things like volunteer activities, statements made online, and certain business activities that a homeowner’s or auto policy might not cover.

Normally, the insurance company will require you to pay a deductible amount (such as $250 or $500) before it will pay for a loss that one of these other policies does not cover.

If you have any other additional questions on whether or not an umbrella insurance policy is right for you, please contact our office.

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Video: Questions Every Arvada and Denver Resident Should Ask About Insurance Before Buying a Home

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Read more
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New Technology that Helps You and Your Family Drive Safer

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Distracted driving is quickly becoming one of the most dangerous hazards on the road, especially among teenage drivers.   With auto insurance rates already high for these young drivers, it’s important that you try and avoid any potential insurance claims.

Chubb Insurance just released an article that highlights some of the available technologies to help your teen drivers avoid distracted driving and stay safe on the road.  Some of the apps actually put a lock on the texting function while driving, while others monitor the driving behavior.

Here are some of the apps listed within the article:

DriveMode: This is a free app for Android and Blackberry users that actually responds to all incoming texts with a short message that the recipient is driving and will respond to them soon.

Canary: Canary is an app for both the iPhone and Android that allows parents to monitor their child’s cell phone usage in real time while driving.  It records the times the cell phone is used and actually notifies parents if the child attempts to disable it.

TextBuster: Is a hardware device you actually install in your car the temporarily disables text messaging, email, and internet access while the driver is in the vehicle.  It does, however, allow the phone to still make and receive phone calls and use the GPS.

iGuardian Teen: This is an Android app that actually shows parents what their child is doing in the car.  It monitors driving speeds, distance traveled, and phone usage.
If you are in the Denver Metro or Arvada area and you are interest in how using these apps will help you qualify for insurance discounts, please give our office a call.

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Furnace Care Tips

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As a homeowner, it can be easy to overlook important home maintenance, but with winter approaching, there’s one task in particular you’ll want to complete. And that’s getting your furnace in tip-top shape.
That bulky metal box in your basement (or crawl space, attic, or even hall closet, depending on where you live) is what produces the warm air that keeps your house cozy, making it possibly the most important piece of winter equipment in your home.
The good news is that furnace maintenance is relatively easy: a combination of simple do-it-yourself tasks and an annual tune-up by a professional. Here’s how to get it done.
Furnace Tasks You Can Do
Inspect the air filters. The Environmental Protection Agency’s Energy Star program suggests doing a monthly check of your furnace’s air filter and replacing it when it looks dirty. Frequent changes prevent the accumulation of dirt and debris, which can reduce efficiency and lead to equipment failure. Changing the filter is especially important if you’re new to the home—who knows what dust and grime others left behind? Tip: To make sure you’re buying the right filter, check your existing one; the size is usually printed on the side.
Maintain a carbon monoxide detector. A failing furnace can leak carbon monoxide, so you’ll want to keep a battery-operated or battery-backup carbon monoxide detector in your basement (and every level of your home), according to the National Fire Protection Organization, placing it at least 15 feet away from the furnace to avoid a false alarm. Tip: Change detector batteries in the spring and fall, on daylight saving day, when you change your clocks.
Keep vents clean and clear. Before you turn on your system for the season, remove all the heating vent covers from the floors and ceilings around your home, and vacuum out the ducts. Dust, pet dander, and all those toy soldier pieces that seemingly go missing can collect there, causing your furnace to work harder. Tip: When cleaning ceiling vents spread a sheet on the floor and wearing goggles to shield your eyes from falling dust.
Tasks Best Left to the Professionals
Annual tune-up. A pre-season checkup by a professional is an absolute must to help prevent costly problems down the road. A heating contractor will make sure that your thermostat is working accurately and that your system is cycling on and off properly, and will typically go through a series of checks and tasks, including:
  •          Tightening loose electrical connections
  •          Oiling all the moving parts
  •          Inspecting all gas connections
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Energy (and Money) Savings Tips & Tricks

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Given the current economy many of us are looking to save money wherever we can. Did you know your utility bills typically account for 15% of your take-home pay? Knowing those bills can consume such a large part of your paycheck, wouldn’t it be nice to cut 25 -50% off of those bills?
We like to share money-saving tips with anytime we can, even if they’re not insurance related. To that end we have put together a list of our top 20 energy and money-saving tips and tricks. You can find the complete list below.
1. Do your chores at night. Limit the use of heat-generating appliances such as the oven, dishwasher and clothes dryer during the daytime hours when temperatures are hottest. That way you won’t make your air conditioner work harder than it has to during the day.

2. Water in the early morning. If you water your lawn on a regular basis, do so in the early morning hours. By doing so you reduce the amount of water that evaporates.FYI: It’s not recommended to water in the late evening because having damp grass overnight provides a good environment for parasites that can harm your lawn.
3. Change your light bulbs. Compact florescent bulbs use about 25% of the electricity of standard incandescent bulbs and will last for years. In fact, according to the U.S. Department of Energy, replacing a standard 60-watt incandescent bulb with a comparable 15-watt fluorescent light bulb could save you $69 over the life of the new bulb.
4. Seal up the house. Did you know that a properly sealed and insulated home improves energy efficiency by up to 20%? Invest in caulk and weather stripping to plug up any drafts around the edges of you doors and windows.
5. Stop gushing. Turn the valves under the kitchen and bathroom sinks halfway off. When you open a faucet water won’t come gushing out, but there will be plenty to wash dishes or brush teeth.

6. Check your insulation. Having a well-insulated house will save you a significant amount on your heating and cooling bills and is well worth the cost. It is also the kind of project average homeowners can do themselves.7. Use fans. Using a fan is a lot cheaper than running your air-conditioning unit. By doing so you can also turn your thermostat up a few degrees and still be comfortable
8. Don’t vent. Use bathroom and kitchen vent fans sparingly in summer and winter. These fans cost money to run and blow your cooled or heated air outside, forcing your furnace or air conditioner to make up the difference.
9. Hang ’em out to dry. Besides your refrigerator, your electric clothes dryer is the biggest energy-gobbling appliance in your home. So if it’s nice outside, simply hang your clothes out to dry.
10. Change your showerheads. You can switch to a low flow head without having to settle for a wimpy shower. Newer showerheads can generate high pressure while using less water. These heads cost around $20, have multiple settings, and can save a lot of water.
11. Keep it clean. Clean air filters monthly for central air, window and wall units. Dirt and dust hinder airflow, reducing efficiency.
12. Close the blinds. Rooms get hotter without shades or curtains to block the sunlight, especially with south-facing and west-facing windows. Insulated window treatments can help further reduce energy consumption as well.
13. Consider time-of-use plans. A growing number of electric companies are offering time-of-use plans, which offer lower rates for energy consumption during off-peak hours (usually from midevening to early morning). The catch is users often pay more for peak-hours use, so consider your daily schedule before signing up.
14. Have a free energy audit. Many power companies provide energy audits free of charge to help you find inefficiencies you may not be able to find on your own. Contact your power company to see if they offer this service.
15. Unplug. Disconnect your electronic gadgets when they are fully charged or you’re just wasting energy. They draw power when they are plugged in, so don’t let them soak up juice all night. Standby power for appliances not in use typically accounts for 5% to 10% of residential electricity use, according to the Lawrence Berkeley National Laboratory.
16. Keep the dust out. Keeping your refrigerator’s coils dust-free can save about 6 percent on its power consumption. Just make sure to unplug the fridge before you do anything.
17. Power down. If you have an electric water heater, install a switch so it is on only when you need hot water. You can also buy a timer to do the job automatically. Turning down the temperature on an electric or gas water heater will also save you money year-round.
18. Install a programmable thermostat. As simple as this sounds, do you know that a programmable thermostat saves homeowners $300 annually on their heating and cooling bills. =
19. Check it. Hire a certified technician for an annual check on your home’s heating, ventilation, and air-conditioning systems to ensure they are operating at peak efficiency. Leaking ducts, for example, could reduce energy efficiency by up to 20%.
20. Heat health. To conserve energy, turn off radiators or close heating and cooling vents in vacant rooms. Heavy drapes also lower energy bills.
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Arvada and Denver Resident Tips: Avoiding Frozen Pipes

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Last week we mentioned how when the temperature drops, the number of claims associated with fires and frozen pipes skyrockets.   We also provided some tips on avoiding fire claims inside of your home.   This week our focus in avoiding the dreaded frozen pipes.
Before the Cold Hits:

  • Check for small holes or cracks in the exterior of your home and ensure they are insulated.
  • Cover around any water pipes that are on the inside of exterior walls.

 
If your House is Occupied During the Winter:

  • Maintain temperature settings at 3-4 degrees higher than normal.
  • Turn on any faucets and allow a constant trickle.
  • Open any cabinet doors under sinks to allow heat to warm the pipes.
  • Insulate your pipes.
  • Shut off exterior faucets used for garden hoses from inside your basement and leave the exterior faucets open outside.

 
If your House is Unoccupied During the Winter:

  • Set the thermostat no lower than 60 degrees and install a low heat alarm.
  • Have a plumber install a low water cutoff switch on a forced hot water boiler.
  • Have the water service shut off all to your house.
  • Drain all waterlines leaving drain valves open.
  • Shut off gas to the home.
  • Have the house checked weekly.

 
If you are interested in any additional tips for your home or you would like a quote on your homeowners insurance, please don’t hesitate to contact our office.

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What Arvada Residents Should Do After an Auto Accident

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As an Arvada resident, if you have ever been in an auto accident you know it can be a stressful situation.  We hope you will find the following list of of steps to take if you are ever involved in an auto accident useful:

Be Prepared

  • Carry a set of warning triangles or emergency flares in your trunk to help alert traffic.
  • Carry a card in your glove compartment that contains emergency contact information and any necessary medical information.
  • Also, it’s not a bad idea to keep a pen and paper along with a disposable camera in the car.

Immediately After an Accident

  • Check for injuries; call an ambulance when in doubt.
  • If accident is minor, move cars out of traffic.
  • Turn on your vehicle’s hazard lights and use warning triangles or flares for safety.
  • Call the police.
  • Notify your insurance agent immediately.

Other Important Tips

  • Do not sign any document unless it’s for the police.
  • Make immediate notes about the accident, including specific damages to all vehicles involved, witness information.  If possible use a disposable camera or camera in your cell phone to document everything.
  • If the name on an auto registration is different than the driver, jot down the relationship.
  • State only the facts, and limit your discussion of the accident to the police.
  • If possible, don’t leave the accident scene before the police and other drivers do.

 

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