Blog

Own a home? Here are two policy options you should know about

March 23, 2021 Kim Authement

If you have a homeowners policy, you probably expect it to cover all the costs of rebuilding your house in case it’s damaged or destroyed by a covered hazard. But are you certain you have enough coverage? Read about two common situations you may be unaware of — and the affordable options that can help put your mind at ease.

Extended dwelling coverage

Since reconstruction costs are different from market value, your current homeowners policy may not accurately reflect the true costs of rebuilding your home. Extended dwelling coverage helps you rebuild if construction costs change and add up to more than your current policy limits.

To illustrate this concept, consider this real-life scenario. Your home is currently insured for 100% of its replacement cost, with the cost based on the value of your house when the policy was originally written. However, a wildfire sweeps through your area destroying your home along with hundreds of others nearby. Due to the high demand caused by the natural disaster, construction materials and labor costs increase 20% in your area. So your $200,000 home will now cost $240,000 to rebuild. If you had 20% extended dwelling coverage, you’d get the $240,000. Without it, you get $200,000 and will have to make up the difference out of pocket or settle for less house than you originally had.

Building ordinance or law coverage

If your home is damaged by a covered loss and needs to be rebuilt or repaired, you are required to build according to current building codes. And since codes have grown more rigorous over the past 20 years, this could mean much higher costs to rebuild than you anticipate. That’s where a building ordinance policy, or law coverage, comes into effect — and it could save you thousands of dollars.

Again, let’s take the example from above and assume you have a $200,000 homeowners policy. With a 10% building ordinance policy, you would get an extra $20,000 to apply to the new building code requirements you must meet. Without this policy option, you’ll have to pay the difference to bring your house up to code.

Extended dwelling and building ordinance policies offer valuable protection from gaps in coverage in case of an unforeseen covered event, and all for an affordable annual premium. To better understanding your risks, and to protect yourself from a loss that may exceed your policy limits, consult TGH Insurance.

Reposted with permission from the original author, Safeco Insurance®

The Agent’s Guide to Selling Mexico Auto Insurance

February 2, 2021 Kim Authement

mexico auto insurance

Nearly every state in the U.S. requires its registered drivers to carry auto insurance. The policies you sell cover your clients in the United States. However, the same does not apply if they travel south of the border.

Border states experience incalculable amounts of cross-border traffic between the U.S. and Mexico. It is one of the busiest international borders in the world. However, when American drivers cross into Mexico, their stateside auto coverage becomes void. As their agent, it is your job to still help them maintain appropriate benefits, which is why you must work proactively to ensure they have the right Mexican auto insurance.

Why Does U.S. Insurance Not Work in Mexico?

It sounds basic, but the United States and Mexico are sovereign countries, and each has its own legal jurisdiction and insurance codes. Therefore, Mexican law addresses car insurance and liabilities in a different way from the U.S.

As a result, American insurance policies are not compatible with Mexican law, and most specifically exclude coverage for travel in Mexico. Therefore, when an American driver crosses the border into Mexico, their U.S. benefits will not cover them. Travelers therefore will need to buy Mexican auto insurance if they want to maintain coverage. It will be instrumental in helping them stay secure behind the wheel.

Do Drivers Have to Buy Mexican Auto Insurance?

Just like most of the U.S., Mexican federal law requires that most drivers carry auto insurance. Foreign drivers are not exempt from this law. Therefore, policyholders with intent to travel across the border will need to have Mexican auto insurance in place at the time of crossing. Policies are provided by reputable Mexican insurers, and many offer bi-lingual and convenient policy services.

Mexico, like most U.S. states, uses an at-fault insurance system. This means that if a driver causes an accident, they will have to pay for the damage done to affected third parties, like other drivers. It will cover the driver for the costs of compensating someone else for both bodily injuries and property damage.

Plus, policies can also provide legal assistance coverage alongside a driver’s liability benefits. In Mexico, car wrecks are considered criminal matters. Therefore, drivers will face detention until they can prove they have the means to pay for the damage they caused. This might mean time in jail, though not in all cases. Drivers will also have to appear before a judge, who will determine fault in the case. During this time, their auto insurance benefits can help them pay for bail bond, a lawyer and other assistance as necessary.

How Can I Structure my Coverage to my Advantage?

A liability insurance policy is only one of many benefits that Mexican auto insurance can offer drivers. Just like in the U.S., they can add benefits to their plans to further enhance their ability to afford the costs of accidents or other behind-the-wheel hazards.

Some of these benefits will look familiar to you. Others, however, will be unique to Mexican auto policies, but can still be beneficial to American travelers.

Physical Damage Insurance: This coverage helps you pay for damage to your car from wrecks, vandalism, theft and certain other perils. Most Mexican auto policies do not split your coverage between collision and comprehensive coverage, the way American policies do.
Gap Insurance: If your car is totaled in a wreck, and your auto insurance settlement does not cover the value of your car loan, then this coverage can help you pay off that remaining value.
Uninsured Motorist Deductible Waivers: If you are not at-fault for an accident but are the victim of a hit-and-run or of a driver who doesn’t have insurance, then your physical damage insurance will cover the losses.
U.S. Repair Options: If you want to have your vehicle repaired in the United States, then your Mexican policy can match the appropriate labor costs.
Medical Payments Insurance: If you or your passengers get hurt in a wreck, then this coverage can pay for the resulting medical bills.
Roadside Assistance Coverage: You might experience a breakdown while on your trip, and if you have this coverage, then you will be able to have a repairman or tow truck dispatched to you.
Travel Assistance Coverage: After a wreck, your travel plans might be interrupted. This coverage can help you pay for hotels, return flights or rental cars to help you get back home.

You will need to obtain a Mexican Vehicle Import Permit (VIP) if you plan to travel outside of the free zone that runs approximately 25 miles past the border.

It’s back-to-school time — is your house ready?

September 4, 2020 Kim Authement

It’s back-to-school time — is your house ready?
We’re not quite sure where summer went, but if you haven’t noticed, it’s already time to think about the new school year.

And as you think about how to get your kids organized and ready, consider doing the same thing for something else — your home. It won’t just be good for you; in many instances, removing clutter also means removing distractions, which can help your kids focus better.

Where to start
You can start wherever you like, but it might be best to make sure your activities are organized before you start in on the daunting task of tackling all of your stuff. With sports and other activities, the school year can be a blur for parents. So keeping a family calendar — whether it’s a dry-erase board or just a weekly printout on the fridge — will ensure that everyone knows where they’re going, and when.

Before the kids go back
Don’t head out for back-to-school shopping just yet. First, do an inventory of school supplies, clothes and shoes so you aren’t buying things you don’t need. Toss or donate stuff that’s old, that doesn’t fit, or that your kids simply don’t like and won’t wear any more. One trick we’ve seen online: If you’re going through a whole closet and you’re not sure what fits your kids, have them try on pants until you find a good pair. Then use that pair to compare the length of all of the other pants.

When they’ve got homework
If possible, designate a study space where your kids have the tools they need for success. It should be well-lit, quiet and free of distractions. Different kids have different learning styles, so you’ll soon find out what works well and what doesn’t.

Now that you’ve gotten them organized …
… It’s time to focus some energy on your stuff. Eliminate as much clutter from the house as you can, perhaps by following the classic 80/20 theory: 80% of the time, most people use only 20% of their stuff. If the item you’re looking at isn’t in that 20%, ask yourself: Do I really need this?

Stay on top of things
You’re off to a good start in the organizing battle — so keep things rolling! Each week, set aside time to go on a “search and destroy” mission for clutter. It’s much easier to stay organized when you only have to do a little at a time. And make sure the kids are involved, too. Everything — homework, school forms, backpacks — should have a home. And when everything has a home, you’ll be happier in yours!

Brighten the Night with Proper Headlight Maintenance

December 4, 2019 Kim Authement

You may think your car’s headlights are in good shape as long as they power on when you need them. But, have you ever thought about headlight maintenance and how it can help improve their performance? From learning how to inspect your headlights to how to adjust them, these tips can help you ensure they’re properly lighting the road while you’re driving at night.

Clean the Headlights

Are the lenses (the plastic covering) on your car’s headlights crystal clear, or do you see some fogginess and yellowing? Popular Mechanics says most manufacturers apply a UV protective film to the exterior of the lens to help protect the headlights. Over time, UV rays can damage this film and cause the lenses to appear foggy or yellow — this can contribute to impaired visibility while driving at night.

If your headlights are no longer clear, a headlight restoration kit may help clean them. The steps typically involve sanding and waxing, so be sure to follow the kit instructions to help ensure you clean the headlights properly. If you don’t see a big improvement, you may need to use another restoration kit or buy replacement headlights, says Popular Mechanics.

Replace Headlight Bulbs

If your headlight lenses are clear but still seem to let off dim lighting, it may be time to replace the bulbs. Headlight bulbs naturally dim over time and need to be replace every few years, according to Consumer Reports. When choosing a bulb, The Family Handyman recommends selecting a long-life bulb if you do more night driving. These bulbs last about three times longer than standard bulbs.

Check and Adjust Light Bulbs

Check your headlight bulbs to see if they are centered correctly and pointing towards the road. Over time, bulbs can become misaligned and end up pointing too high, too low or off to one side. Some cars have built-in bubble levelers to help you align the headlights, notes Popular Mechanics. These are typically located on the sides and top of the headlight unit. If you can see that the bubbles are not centered in the levelers, you’ll know the headlights need adjusting.

To check the aim of your bulbs manually, Popular Mechanics recommends following these steps:

Make sure your car is level. If necessary, remove any items from your vehicle (or trunk) that may be offsetting the balancePull the vehicle as close as possible to a plain-colored wall and turn on the headlights.

2. Pull the vehicle as close as possible to a plain-colored wall and turn on the headlights.

3. Mark the center of where each light beam hits the wall with pieces of tape. Place one piece of tape horizontally and one vertically. The vertical piece of tape should be about 2 feet long.

4. Back up your vehicle about 25 feet and keep the headlights on. If the bulbs are set properly, the most intense portion of the light beam should be at the center of (or right below) the horizontal piece of tape and to the right of the vertical piece of tape.

If you find that you need to adjust the headlights, locate the adjusters and move them as needed — these are typically a bolt or screw on the sides or back of a headlight, says Popular Mechanics. You can also check your owner’s manual for details on adjusting your vehicle’s headlights.

If you have any concerns as you inspect or clean your headlights, consult with a mechanic or auto repair shop for advice. And remember, your headlights aren’t the only lighting components on your car that may need inspecting from time to time. Be sure to check your tail lights, brake lights and turn signal bulbs regularly and replace them as needed.

4 Thanksgiving Cooking Safety Tips

November 25, 2019 Kim Authement

This Thanksgiving, home cooks will dust off their roasting pans and casserole dishes in preparation for the big meal. Holiday cooking can involve juggling pots boiling on the stove, pans of food baking in the oven and a microwave that’s constantly beeping. In your attempt to do it all, it’s all too easy to turn around and find a smoking pan.

Whether you’re a seasoned cook or making Thanksgiving dinner for the first time this year, a little safety preparation before the festive day may be a good idea. Here are some tips that you may want to keep in mind:

1. Don’t Disconnect Your Smoke Detector

If your smoke detector is highly sensitive, it may be tempting to turn it off while you’re cooking. But the smoke detector is just doing its job. The National Fire Protection Association (NFPA) recommends leaving it connected and even testing the batteries before you start cooking.

2. Start With a Clean Cooktop

Grease naturally builds up on burners and cooktop surfaces over time. Consider cleaning your stove or cooktop prior to making your Thanksgiving meal to help prevent grease fires, says the NFPA.

3. Avoid Multitasking

Too much multitasking may be a recipe for trouble. Tell guests the kitchen is a no-child, no-pet zone. Keep your cooktop free of clutter, use only one pot or pan per burner and never hold a child in your arms while cooking.

4. Rethink Using a Fryer

The taste of crisp fried turkey may be a part of your family celebration. But using a turkey fryer may lead to splattering hot oil, which can put you at risk for burns and may be a fire hazard to your home, says the NFPA. If you still want fried turkey, consider buying yours precooked from the store or using other methods like a grill or smoker to cook your bird more safely, adds FoodSafety.gov.

Pet Safety Tips for the Holiday Season

November 20, 2019 Kim Authement

The holidays can stir up excitement as you get ready for the activities, meals and decorating that lies ahead. But, if you’re a pet owner, you should also consider how things like festive plants, lighting or other changes around your house might affect the safety of your pets. Here are eight safety tips that keep your pet’s well-being in mind this holiday season.

1. Secure, Hide or Cover Electrical Cords

Holiday lights and decorations usually lead to many new cords being scattered around the house. Be sure all cords are secure or hidden so your pets aren’t tempted to play with or chew on them, says the American Veterinary Medical Association (AVMA). It may also be a good idea to unplug cords when you’re away to minimize the risk of electrocution.

2. Keep Food Out of a Pet’s Reach

The holidays inspire delicious food, drinks and desserts. But remember, dogs and cats shouldn’t eat certain foods because it could make them sick. When you wrap up mealtime, be sure the counters are clear of food, store away all leftovers and take out the trash, says the AVMA. You should also make sure to secure the lids on all trash cans to help deter dogs from trying to dig in.

3. Ditch the Candles

Lighted candles may add a charming glow to your home around the holidays, but they can be dangerous to your pets and create a fire hazard. Never leave lit candles unattended because your curious pet could burn themselves or knock them over, says the American Society for the Prevention of Cruelty to Animals (ASPCA). Consider opting for battery-lit candles instead, to help keep you and your pets safe during the holidays.

4. Research Holiday Plants

Many common holiday plants could be dangerous to your pet. Plants such as mistletoe, holly and poinsettias could cause your dog or cat to have cardiovascular or gastrointestinal issues if they ingest them, says the ASPCA. Keep in mind that certain plants can also affect different animals and breeds in unique ways. Be sure to research how specific holiday plants may affect your pet before deciding to showcase them in or around your home.

5. Update Your Pet’s Vaccinations and ID Tags

It’s a good idea to ensure your pet’s vaccines are up-to-date to help protect them from certain illnesses, especially if you’re planning to travel this holiday season, says the AVMA. You should also ensure their identification tags include your current home address and contact information. This can be helpful in case they accidentally get loose or slip out the door as guests come to and from your home.

6. Create a Safe Space for Your Pets

To help keep your pet comfortable around the holidays, consider creating a specific area or room where they can go to have quiet time, recommends the AVMA. That way, if the commotion of any holiday parties or festivities gets overwhelming, your pet will have a space they can retreat to.

7. Decorate Your Home With Safety in Mind

Holiday trees and other decorations can be a safety hazard to your pets. Cats and dogs may be interested in dangling decorations and lights on holiday trees and could accidentally knock the tree over if they get too close, says PetMD. Avoid stringing lights and decorations on low-hanging tree branches, or anywhere else within your pet’s reach, to help deter your pet from trying to chew on or play with them. It’s also a good idea to avoid using tinsel, as it could cause an intestinal blockage if your pet ingests it, adds PetMD.

8. Keep a List of Emergency Phone Numbers for Your Pet

Being prepared if the unexpected happens is important. Keep contact information for your veterinarian, a 24-hour pet hospital and the Animal Poison Control Center easily accessible in case of an emergency, recommends the AVMA.

Keeping your pet safe is likely a priority year round, but during the holidays you may want to take some extra precautions. Remembering these tips can help keep your holiday celebrations happy and safe for both you and your pet.

6 Motorcycle Safety Tips For Deer Season

November 13, 2019 Kim Authement

Fall typically means cooler days and beautiful leaves. But, it’s also mating and migration season for deer. Deer are more likely to cross the path of your motorcycle from October through December than at any other time of the year, according to the University of Illinois Extension’s Wildlife Illinois. May and June also bring increased activity, as young deer start moving to new territory.

Help keep your ride safe and follow these motorcycle safety tips for deer season.

1. Be on the Lookout at Dawn and Dusk

Deer are typically most active during dusk and dawn, according to Wildlife Illinois. This movement increases your risk of colliding with a deer during these times of day, says the Insurance Information Institute. During deer season, when the sky is dark or the sun is low, make sure to keep your eyes open for deer.

If you’re driving when it’s dark or the sun is low, the Pennsylvania Department of Transportation recommends slowing down in areas where deer crossing signs are posted. Wildlife Illinois also recommends scanning the side of the road for deer. You may see “eyeshine” as you ride, which is your headlight reflecting in a deer’s eyes.

2. If You See One Deer, Look for Others

Deer often travel in small herds, says the Pennsylvania Department of Transportation. So, if you spot a deer during your ride, slow down. There may be more deer in the area that you haven’t seen yet. Deer often cross roads single file, says Wildlife Illinois. If one crosses in front of you, stop to be sure that more deer aren’t following behind the first.

3. Wear Your Safety Gear

A helmet is an important part of your riding gear, especially during deer season. To make sure your helmet offers proper protection, the Motorcycle Safety Foundation (MSF) suggests looking for a comfortable, snug fit. Also, make sure the helmet has a DOT sticker, signifying the helmet meets the safety standards of the U.S. Department of Transportation. Help protect your arms and legs by wearing long pants and jackets made of abrasion-resistant materials, as well as motorcycle gloves and boots.

4. Do Not Swerve If a Collision Is Unavoidable

If you see a deer on the road during a ride, do your best to avoid it. However, swerving to miss a deer may not be your safest option, as you want to keep your motorcycle stable. Deer can be unpredictable — sometimes stopping in the road or doubling back, says Wildlife Illinois. Braking until you stop may be the safest approach, according to the Illinois Secretary of State. Also, ride with your hands covering the brakes so that you can start braking as soon as you see a deer, says Cycle World.

5. Ride a Bike With Antilock Brakes

Antilock Braking Systems (ABS) can help you maintain better control of your vehicle when trying to stop quickly, according to the National Highway Transportation Safety Administration. The Insurance Institute for Highway Safety says ABS prevent a motorcycle’s wheels from locking up in a hard brake, which could mean a serious fall. So, if you’re in the market, consider buying a bike that has ABS.

6. Spread Out If Riding in a Group

While it’s always good riding practice to spread out during group rides, this is especially important if you are riding in the early evening during the fall and early winter. Spacing out riders may help prevent one rider from colliding with others in the group if someone needs to brake quickly. The MSF recommends riding in staggered formation with at least a 2-second following distance between riders.

A crisp autumn day can be a wonderful time to head out on your motorcycle, but it’s important to take extra caution when deer may be nearby. Follow these motorcycle safety tips for deer season to help keep both you and your bike safe.

Happy Veterans Day!

November 11, 2019 Kim Authement

Happy Veterans Day!

5 Homeowners Insurance Exclusions That Could Bankrupt You

November 8, 2019 Kim Authement

Purchasing a home is one of, if not the biggest, investments you will make in your life. In fact, one of the first things you do before you finalize the sale is get a homeowners insurance policy. Having home insurance isn’t just a requirement in most cases, but something any responsible homeowner would do anyway to ensure they would be covered if anything goes wrong. The keyword is “anything” because, like everything else in life, homeowners insurance policies can have notable exclusions and exceptions.

It’s important to be aware of common homeowners insurance exclusions so you can obtain supplemental coverage or find other ways to prepare. We take a look at some of the things your homeowners insurance won’t cover.

COMMON HOMEOWNERS INSURANCE EXCLUSIONS

Earth movement

Homeowners insurance policies typically exclude earth movement, for example earthquakes, sinkholes, and mudflows. While your basic home insurance will not cover these types of damages, you can easily obtain added coverage. Earthquake and sinkhole coverage is typically not even a separate policy; it is an add-on to your current home insurance coverage.

Water Damage

Water damage is often not covered by a standard homeowners insurance policy. This ranges from flood damage to sewer system issues. Flood damage can be covered with a flood insurance policy. Water backup and sump discharge or overflow coverage is usually offered as an add-on to your current home insurance policy. Your home insurance policy typically covers certain types of water damages, such as flooding caused by a burst pipe, as long as the incident wasn’t preventable.

Intentional or Preventable Loss

Hopefully it comes as no surprise that your home insurance will not cover any damage that you intentionally cause. In addition, if something occurs and it is deemed by your insurance company as preventable you may not be covered. This proves to be just another reason to maintain the upkeep on your home.

Ordinance or Law

The simplest way to explain this coverage is if your home is deemed no longer up to standard building code or regulations, any claim would not cover the cost of upgrading the damage to meet new building codes. The good news is that you can add a rebuilding ordinance or law coverage endorsement to your policy.

Mold Damage

Another common homeowner insurance exclusion is mold. Mold is a problem that grows over time and, because of this, insurance companies see the issue as something that can be prevented, especially before it becomes an issue that affects your home or your family’s health. Do your best to prevent against mold.

5 Rules Every Landlord Should Live By

March 16, 2017 erinkeltner

I’m pretty confident that if you asked anyone who has ever owned a rental property you would get an overwhelming response that it’s not as lucrative or easy as they thought it would be. In fact, owning a rental property can be a major pain, and end up costing you a ton of money!

I certainly don’t mean to be a “Debbie Downer”, and I know that if it’s done right it can be lucrative, but from an insurance agent’s perspective, I don’t see a lot of people doing it right.

So you’re probably thinking, “Well Chris, you are an insurance agent. What do you know about real estate or rental properties? Why should I take advice from you?”

I’m not a real estate agent, and I don’t own a rental property. However, several of my friends/family/clients/co-workers own rentals, and because I insure a bunch of their properties, I’ve had a first hand account of the process, and I’ve learned what to do, and what not to do.

[Read more…]