AIG…Should I Stay Or Should I Go?
September 25, 2008
I’ve avoided writing about AIG because there has been more than enough out there already written. However, since I still get questions and comments on the state of the insurance industry and the other companies we work with.
While speaking with other insurance agents our there I’ve heard many saying this is a great opportunity to switch clients from AIG to another ‘safer’ insurance company. In fact, I can see a lot of people falling victim to scams and lies based on fear. The fear that money in annuities or life insurance products issued by AIG is unsafe and ‘needs’ to be moved.
From everything I’ve read and found on this issue, the insurance side of AIG is completely solvent. AIG has more than enough in reserves to pay its claims and continues to pay millions of dollars each day in claims.
If you have a policy with AIG, what are you to do now?
Well, in my opinion, nothing.
AIG owns 71 US based insurance entities. They’re all solvent. Not one is related to the financial problems they’re experiencing. And, the best part, the money inside these companies reserved to pay claims is protected by law.
So, you can relax and put the anxiety medication away for another day.
If you don’t believe me, check out the AIG Consumer FAQ put out by the National Association of Insurance Commissioners .
If you’re ever in doubt or have concerns or complaints about your insurance company, contact Arizona’s Department of Insurance and check up on them. It’s your money and security at risk.
Lightning & Wind and Rain…Oh My!
September 11, 2008
Last night was another beautiful example of Arizona’s beautiful monsoon storms that pass through every year. I was putting Hayden, my 3 yr old, to bed last night as the clouds opened up and let loose.
As a child growing up here, I remember sitting in the garage with my parents watching the wind blow the trees, the lightning electrifying the sky and the rain soaking the yard. So, I figured this would be a great time to take my son out back and let him build some of these memories. Wrong. As I started to open the door he grabbed my leg and said, “No daddy. Don’t open the door. It’s scary.”
I forgot how scary it was when I was a child too. So, I comforted my son instead.
What does this have to do with insurance?
Flooding.
Water damage.
Fallen trees.
Lightning strikes.
Power outage.
Bugs.
Not all are covered under your base home policy and some are. Here’s a quick list:
Flooding – not covered. Need separate flood policy to cover this.
Water damage – depends on the cause. If you leave the window open at your home and the rain comes in because you’re forgetful, not covered. If the rain breaks the window and causes damage, you’re covered. You’re also covered, if the wind blows the rain under the shingles on your roof and leaks into the drywall in your home.
Fallen trees – generally not covered, unless it’s touching your home.
Lightning strikes – covered. If it hits your home or detached structures (pool equipment, sheds, etc.) you’re covered for the damage and any resulting fire, if any.
Power outage – depends on the policy. There’s usually some amount for spoilage but call your agent.
Bugs – no coverage. Unfortunately, the rains cause the scorpions and other fun critters we have here to migrate to the dryer climate inside your home. This just isn’t covered by your homeowner policy. Sorry.
Naturally, this is not an exhaustive list of the coverage in your particular policy but a good start. If you have a fallen tree, it shouldn’t hurt to call your agent and ask, “What would happen if a tree blew over? Would the insurance company pay to clean it up?” Every home insurance policy is different and has unique coverage options.
If you don’t have an agent and use an 800# insurance company for your insurance you may want to be careful how you ask your question. The person answering the phone may enter your question as a claim inquiry on your policy which will show up on your CLUE (loss history) report. This could affect your rates and future ability to find coverage.
Please leave your comments or questions below. Or, if you want an agent you can trust and ask questions about your unique situation fill out our home insurance quote form .
Doing Good Deeds
September 3, 2008
As many people know I’m fairly active in our local Realtor association. While I am not a Realtor there is a committee of Affiliates, non-Realtor members, which support the real estate community and its related industries. I currently am the Chairperson for this Affiliate committee.
During this year I’ve had the fortune to oversee the production of several different events to raise money for our chosen charities. This year our charities are Packages From Home and the Maricopa County Animal Care & Control . The photos here are the presentation of $1000 checks to each charity.
