ATVs and Boats Not Covered On Your Home Insurance
March 31, 2008
A few years ago, my old neighbor left his garage open when he went to the store. In the garage was a trailer with a couple of nice ATVs resting comfortably. They sat there most of the time but he took them frequently to the dunes to play. When he came back from the store, a quick 15 minute trip, the trailer and the ATVs were gone.
Do you keep your ATV or boat stored in the garage when you’re not using it? Do you think it’s insured Read more
Yes! You Can Monitor Your Teen’s Driving Even When You’re Not There
March 28, 2008
According to an article by the Insurance Information Institute, drivers age 15-20 are responsible for 12.9% of all fatal crashes. They Also have the highest rate of fatal of all age groups and motor vehicle crashes is the number one cause of death for this age group.
How can we protect our kids?
- Limit passengers allowed when driving. Drivers with passengers age 8-17 are more likely to get in an accident then driving without a passenger or with passengers age 25 and older.
- Limit where they’re allowed to drive to streets with lower speed limits.
- Encourage them to wear their seat belts.
We can’t be with them all the time so it’s difficult to monitor what they’re doing. Or is it?
There are products out there now that allow you to monitor your child’s driving behavior. They’re fairly inexpensive worth every penny for the peace of mind they provide. GPS Technologies Safetrack is one you can look into. Depending on how much detail you want to monitor it can alert you on your cell phone when they exceed a certain speed set, travel outside a certain distance from home, even locate them on a map via GPS with your computer.
Wouldn’t it be nice to know your teen is actually at the movies tonight and arrived safe? Now you can.
Insurance For Your Condo, What Are The Basics?
March 27, 2008
If you own a condo, there are often many questions about what your association’s insurance will cover and what it won’t cover. Also, we often hear, “Why do I need insurance when the association has insurance?”
What a unit owner policy covers:
Personal Property: This is your stuff. Turn your home upside down and shake it. Everything that falls out is your Personal Property. Your clothing, furniture, dishes, etc. and practically everything else not physically attached to the building.
Dwelling: This is the stuff attached to the building and the building. You could be responsible for carpet, drywall, cabinets, light fixtures, bath fixtures, etc. You have to read the CC&Rs to determine how much is your responsibility. Every association is different so be very careful here.
Loss of use: If you cannot live in your home because of a covered loss the unit owner policy can pay for reasonable additional living expenses you experience because of the loss.
Guest medical payments: This pays for the medical payments, regardless of fault, to guests that are hurt on your property or in your care and control.
Liability: Pays for bodily injury and personal property damage to other people that you are legally liable. If someone comes onto your property and trips and is injured because of your negligence to take care of the property, this will pay the claim (bodily injury). If you are cutting down your tree on your property and it falls onto the neighbor’s home and damages their home it would pay to repair the damaged portion of their home (property damage). There are many other examples that fall into these categories so open your mind. This also pays for legal defense costs above and beyond the actual claim paid if you are sued.
If you own a condo but rent it out, there is a similar policy to protect your interest and liability as a landlord.
If you own a condo, your association policy does not cover these items. It’s that simple. It’s up to you to pay for these if something happens, that’s why there’s insurance.
Hulk Hogan And Parents With Teenage Drivers
March 25, 2008
Hulk Hogan and his wife are being sued for their 17-year-old son’s car accident. Hogan’s 17 year old son Nick was in a car accident on Aug. 26, 2007. Nick lost control and ran into a tree. The passenger is critically injured and will require care for the rest of his life. The lawsuit hopes to prove Hulk and his wife Linda are liable for the negligence of their son.
As a parent, it’s scary when your kids start driving. You’re worried about their safety. You pray they behave responsibly. Plus, the price of your car insurance almost doubles.
Some people try to save money by placing the title of a car in the teenager’s name and making their teenage driver buy their own car insurance with minimum liability limits. The parents then exclude the child on the parent’s policy. This seems like a good idea because the child has little or no assets and a minimum liability only policy would lower their cost.
However, in Arizona we have something called the “Family Purpose Doctrine.” It has been held up in the courts that a parent is responsible for their teenage driver’s accidents (Click here to read the court opinion of Country Mutual Insurance v Hartley).
Now, only the court can determine what constitutes “Family Purpose” in a teenager’s accident. But, as a parent you may be better served to insure the child on your policy. And, if they carry their own insurance you don’t want to exclude them from your policy. If you exclude the teen driver on your auto insurance policy and the teen driver has an accident then you have no insurance company to pay for your defense costs or any portion of the claim.
If you have any doubt or still want to insure your child on a separate policy, consult your attorney. This practice will not insulate you from the actions of your child, as shown by Hulk Hogan’s son Nick. Their accident was in Florida so it will be interesting to learn the outcome of this case.
Or, get a quote from our agency and let us shop our “teen friendly” insurance companies to find better rates.
What Is Uninsured and Underinsured Motorist Coverage?
March 24, 2008
Uninsured Motorist and Underinsured Motorist Coverage (UM/UIM) have to be two of the more misunderstood coverage options available on your auto insurance policy. While they do protect you if you are hit by an uninsured or underinsured driver, the type of damage it actually pays for is where the misunderstanding takes place.Recently I wrote about what Auto Liability Insurance on your auto policy covers. There are two basic categories: Bodily Injury and Property Damage Liability. Bodily Injury pays when you hurt or kill other people. Property Damage Liability pays when you hurt or break other people’s property (cars, mailboxes, light poles, homes, etc.). Please see that article for more details on Auto Liability Insurance.
UM/UIM pays for Bodily Injury damage when the other person does not have any or does not have enough Bodily Injury Liability insurance to pay for your damages. If you are the victim of a hit and run or the person simply has no insurance and you’re injured or killed, your Uninsured Motorist could pay you damages. If the person does not carry enough Bodily Injury Liability Insurance to pay for your damages, your Underinsured Motorist could pay. Of course, the most it will pay is determined by your policy limits.
A comment we often hear is, “Well, I just paid off my car, I want to remove collision coverage. If I get in an accident that’s my fault I’ll pay for the damage to my car. If someone hits me, I have Uninsured and Underinsured Motorist to pay for the car if they don’t have insurance.”
Remember: UM/UIM pays for Bodily Injury only. These will not pay for Property Damage to your car. If you want coverage to pay for damage to your car, even if it’s not your fault, you need to keep collision and comprehensive (other than collision) coverage on your car.
Do You Own A Vacant Home?
March 21, 2008
The change in the real estate market has caused some people to move and vacate their previous home while leaving it on the market. Or, they have listed the home for rent and are unable to find a renter to lease.If your home is vacant you need to make sure your policy is up to date. A homeowner insurance policy or landlord insurance policy will not provide coverage for vandalism and malicious mischief when a dwelling has been vacant for more than 60 consecutive days before a loss. With many ‘on the corner’ insurance companies, vandalism and malicious mischief is excluded if it’s vacant for only 30 days.
This may not seen too important because if your home is vandalized you may be able to repair small damages. However, if the vandals decide to take the lighter fluid they found and set the home on fire as they’re leaving, you have no coverage and a totally destroyed home!
A second (or third) home is not considered a vacant home/dwelling. Since you usually have furniture and keep it in good condition to visit frequently, it’s considered an occupied home for insurance purposes.
Now, if it really isn’t a second home and the home is vacant, you need to buy a vacant home policy. There are companies that provide policies specifically for vacant homes. Vacant home insurance policies are usually very competitively priced to a homeowner policy. This is what these insurance companies specialize in writing and they do it well.
If you have a vacant home and are slightly unsure what to do, contact your agent. They can tell you what meets their insurance company’s guidelines and then you’ll know how to proceed.