Is buying insurance like brain surgery?

Buying insurance is more important and complex than most people realize. Some people treat the purchase of insurance as if they were buying a loaf of bread. They call around or shop on the Internet for the cheapest quote. This wouldn’t happen if they were looking for a skilled surgeon to perform a difficult procedure.

Why is the practice of calling around for insurance dangerous? Because insurance is a contract, full of complicated language that can be confusing and challenging.

The services of a qualified insurance professional are what you pay for when buying insurance. Anything less underestimates the value of your decision and, you could be sorry later if you have an uncovered claim.

As your independent agent, we will get to know you. We then will help match you and your individual situation with a company that meets your needs. Your total satisfaction is our number one priority. Please don’t hesitate to call us for any of your insurance needs.

Hire the right contractor
for your extreme makeover

Who would you prefer to hire for your home improvement or new construction project: Tim “The Toolman” Taylor or his assistant, Al Borland? You only know which one to hire because you have seen the television show. But if you hadn’t seen the show, how would you know the difference? Somehow, you’ll need to learn about potential contractors before you hire them to keep the project from becoming an extreme mess.

The Internet is a great place to begin the process. A couple of sites that you may find very useful are www.b4ubuild.com and National Association of the Remodeling Industry (www.nari.org); they’re full of excellent resources, including guides on how to qualify a contractor. Next, visit the site of your local building department. Often, on these sites, there is valuable information about permits and contractor licensing requirements, as well as other helpful tips. Local building associations also may offer some useful information.

Permit
A visit to the building department (or phone call) will allow you the opportunity to ask specific questions. If a permit is required for the home improvement or new construction project, make sure you know who is assuming the responsibility to obtain it (this should be addressed in your contract with the remodeler or builder).

Referrals
Nearly half of all homeowner projects are placed with a contractor that was referred by other clients of that contractor. This is one of the better ways to locate a contractor because you can inquire easily about the contractor’s work. Be sure to ask about the contractor’s timeliness in performance as well as the quality of his work.

Contractor's Insurance
Adequate business insurance should be an important factor in your choice of a contractor. Unless the contractor works alone, without employees, he should be able to produce a certificate of workers’ compensation insurance. And, whether working alone or not, the contractor should produce a certificate of general liability insurance with an occurrence limit of at least $1 million.

Replacement Cost Limit Change
If your project will increase the value of your current property, there will be a need to adjust or add coverage for that property. Renovations and additions necessitate establishing a new replacement cost limit for Coverage A—Dwelling. A new or improved other structure on the premises will likewise require an appropriate limit for Coverage B—Other Structures. And, if a structure is being used for business use or rental use, there may be a need to endorse the policy or purchase a separate policy.

New Home
If you are constructing a new home, it will be necessary to write a new policy. The construction contract should address the issue of who is responsible for insuring the dwelling under construction. Since you likely hold the deed to the real estate, you may be the one designated to obtain the property insurance during its construction.

Conclusion
If you don’t want to end up with a Tim “The Toolman” Taylor project, pay close attention to hiring the right contractor and make sure that property and liability exposures are covered by insurance. Not every botched job can be fixed with duct tape. Our agency would like to help you obtain the right insurance. Please call us before you begin your remodeling or new construction project.
 

What You Drive, Drives The Premium

Purchasing a new car is one of life’s pleasures, but it does not come without cost. Consider purchase price, the taxes, the registration fees and insurance. Unfortunately, some of our clients assume that the cost of insurance won’t be much of a factor since they already have been paying for insurance on a previous vehicle— how much more could it be for the replacement? Well, it could be substantial and we don’t want you to be caught by surprise.

Insurance companies rate coverage for damage to your vehicle using a number of criteria. The more you pay for your vehicle, the higher the premium will be. So, if your new vehicle costs more than what you paid for your previous vehicle, you can expect to pay a higher premium. However, even if the cost new is the same on both vehicles, the vehicle with the later model year is going generate a higher premium because its current value is greater than the depreciated value of the previous vehicle.

But there’s more to rating than the vehicle’s value. Some vehicles are damaged more easily, some are more costly to repair, some attract more aggressive drivers and some have a greater likelihood of being stolen. All of these factors go into the assignment of a rate for your car.

Recently, another rating factor has been introduced to distinguish vehicles according to the injuries their occupants are likely to incur and the amount of damage they can do to other vehicles and their occupants. This rating factor considers the vehicle’s size and body construction, including its length, width, height, weight, wheelbase and horsepower.

We want to remind you to consider the cost of insurance when shopping for a new vehicle. As financial counselors say, if you can’t afford the insurance, you can’t afford the car. Check with us before you purchase - call us (908 852-4444) or use our Policy Change Form (select "Buying a new car? Get a quote!") to find out now.
 

Date Posted to Site:   Aug. 2005

Insurance for college graduates is a must

Millions of college students have graduated and left college life behind. It’s unlikely that college has taught them much, if anything, about insurance.

Will their parent’s health insurance cover them after they graduate? A recent college graduate may not be covered.

Beginning a new job?
Make sure there is no waiting period for health insurance. If there is, call us to see if we can help with gaps in coverage.

Getting an apartment?
Make sure you have renter’s insurance. Even if the items in your apartment came from your parents, once you move them into your place, you need to insure them. Your landlord’s insurance will not cover your possessions.

Moving to a new location?
If you’re moving to a new city, chances are your auto insurance needs are going to change. Call us to see how the new location affects your insurance rates.

Starting out on your own can be as difficult as it is exciting. We’re here to help you make the transition smooth. Give us a call.