It only takes three inches of water to cause over $10,000 in damage to a 1,000 square foot home

It only takes three inches of water to cause over $10,000 in damage to a 1,000 square foot home.

Floods are the most common natural disaster, causing billions of dollars in damage every year. While there's nothing that can be done to prevent a flood, having a flood insurance policy can prevent devastating financial burden from a flood-damaged home. We've put together a few facts to show the importance of obtaining flood coverage. Feel free to share this information with your customers.

Why purchase a flood policy?

• There has been a flash flood or flood in all 50 states in the past five years
• A standard homeowners policy does not cover damage sustained in a flood
• Federal aid is only provided when a flood has been declared a major disaster by the President, which only occurred 27 times in 2015
• Federal disaster assistance is typically a low-interest loan that must be paid back - a $100,000 loan at 4% interest would cost $447.52 per month, but a $100,000 flood insurance policy only costs $324 per year
• Flood coverage takes 30 days to go into effect unless purchased with a new home, so don't wait until puddles are already forming
• Homes outside of high-risk flood zones account for one-third of Federal Disaster Assistance for flood and 25% of all flood insurance claims

With policies starting at $146 per year, flood insurance is a cost-effective way to cover the things you own against flood damage. 

 

Lawley

Tom Ditzel

585-344-9505

1-844-4LAWLEY

Is Your Watercraft Protection Underwater?

Spring is just around the corner. Before you know it, flowers and lawns will be blooming with beautiful and vivid colors. Springtime is also when boat enthusiasts often start to consider purchasing a sail boat or power boat. Many consumers, however, lack an understanding of the myriad and multi-faceted loss exposures associated with boat ownership. And boat lovers may mistakenly believe that coverage applies under their homeowners policy for these loss exposures.

Most homeowners policies, however, only insure losses arising from certain low-valued or low-powered boats. Therefore, you should contact us before buying a boat to discuss the proper insurance protection for it. You do not want to be "underwater" when it comes to the proper watercraft insurance. Consider the following tips to assist you in this process.

• If you purchase a motor boat or sail boat valued over $1,500, you probably lack proper coverage under your homeowners policy for physical damage losses to the boat itself. A separate watercraft or boatowners policy is necessary to cover the physical damage to boats over this value.
• If you are contemplating the purchase of a sail boat, inquire about its length. If the length is 26 feet or more, do not look to your homeowners policy for liability coverage. For motor boats, there are strict horsepower restrictions under the homeowners policy for liability coverage. For example, only insureds who own or lease boats with outboard motors of 25 horsepower or less have liability coverage under most homeowners policies, yet most power boats have motors with horsepower far exceeding this amount. This liability coverage restriction also necessitates the purchase of separate watercraft insurance.
• Ask us about the types of boats you are considering. Some insurance companies, for example, decline to insure personal watercraft, such as jet skis and wave runners, since some of these crafts can reach speeds of 60 or 70 miles per hour. The U.S. Coast Guard reports that personal watercraft account for a disproportionately high number of accidents. Many insurance companies also refuse to cover houseboats, homemade or kit boats, competition bass boats, and speed boats. You may have to pay an extra premium through a specialty insurance company to insure these types of craft.
• Be wary of purchasing older watercraft. Many insurance companies reject boats over 15 or 20 years of age because they tend to experience higher loss frequency than newer boats. You may have trouble finding insurance coverage for older boats or end up paying an extremely high premium.
• If you do purchase an older boat, consider ordering a marine survey or inspection of it prior to the sale. This marine survey website may prove helpful. Marine surveys point out deficiencies in watercraft that may cause you to reconsider the purchase or renegotiate its price.

If you do not already have one, purchase a personal umbrella policy in addition to a watercraft policy, particularly if you buy a speed boat, a boat designed for water skiing, or some other craft with a higher potential to cause damage or loss of life. Umbrella policies are relatively inexpensive, and since most forms do not have limitations with respect to watercraft, they will provide excess limits above the liability coverage in the watercraft policy.

In addition, the watercraft liability limits should meet the underlying limits requirements of any applicable personal umbrella policy. Lastly, use the same insurance company that writes your homeowners and personal auto policies for your personal umbrella policy. This approach will alleviate many potential issues in interaction between policies and coverage concerns.

Copyright 2016
International Risk Management Institute, Inc.

 

Tom Ditzel

585-344-9505

844-4LAWLEY

tditzel@laweyinsurance.com

www.lawleygenesee.com

 

TV Ads and the Local Independent Insurance Agent

After 40 years in the insurance business I find it frustrating to watch television only to be bombarded with insurance advertising. 

GEICO says they can save you 15% in 15 minutes.   Can they really?   I just had a young lady come in with a GEICO policy asking me to look at her car insurance.  Her present policy includes NYS minimum Liability limits of 25/50/10 along with the other state required minimums.   Her 6 Month premium is $937, which brings her yearly cost to $1,873.    I sold her a policy with Kemper that  took her coverage up to 100/300/100, maximized other available coverage and did all this for a premium of $1,173.   That's a 38% annual savings of $720!! 

The other TV guys talk about First Accident Forgiveness like it's something new.  Well, maybe it's new to them but we've offered it for 25 years.    

The key today is dealing with an independent agent who has many companies to offer versus the direct writers who have just one company.  The latest trend with insurance companies seems to be  the bells and whistles they are offering with their new products.    Not all are the same and some are better than others.  I'd recommend talking to an experienced independent agent for help sorting it all out.

Check us out at http://www.lawleyinsurance.com/  or better yet, call me directly at 585-344-9505 or ask for me at 1-844-4LAWLEY.   We are licensed to write in all 50 States.

Tom Ditzel
tditzel@lawleyinsurance.com

Fend Off Those Home Burglars

The Federal Bureau of Investigation reports that there are over 2 million burglaries per year in the United States Nearly two-thirds of these burglaries occur in residences. Approximately 30 percent of all burglaries happen through an open or unlocked window or door. A home burglary occurs every 13 seconds in America.

There are numerous things a home owner can do to reduce his or her chance of being a victim of this unfortunate crime, including the following.

·         Keep your windows and doors locked, since burglars obviously prefer easy access.

·         Install heavy-duty exterior doors.

·         Safeguard doors with extra-long screws and high-quality door locks.

·         Utilize a motion-sensing switch for your outdoor lights.

·         Trim your shrubs and bushes so that windows and doors can easily be seen from the street.

·         Ask for a crime assessment inspection of your home from your local police department. They are typically available free of charge.

·         Keep your garage door closed, even when you are inside your residence.

·         Utilize a property identification marking system for your valuable possessions.

·         Store small valuables, such as rare coins and expensive jewelry (that you do not typically wear), in a safe deposit box at your bank.

Copyright 2016
International Risk Management Institute, Inc.

Tom Ditzel

585-344-9505

844-4LAWLEY

tditzel@laweyinsurance.com

www.lawleygenesee.com

Accident Forgivness, Newer Car Replacement - what does it all mean?

The TV ads are right, these are good things to look for in an insurance company.  Some of these options have been around for years while others have been introduced more recently. 

First Accident Forgiveness has been offered by a few insurance companies for many years.  Some require you to be insured with the company for a number of years before the benefit kicks in while others allow you purchase the protection for a higher premium.  

Newer Car Replacement is another nice benefit but this coverage comes in many shapes and sizes.   Some will pay for a new model car but only if your car is totaled within the first year or two while one extends protection out to five years.

Disappearing Deductibles is another consumer friendly option.  This basically means, that for each year you go with no accidents, your deductibles drop by a specified amount.    Most specify the deductible will drop by $100 per year.   Most companies offer this as a add-on benefit you will pay a premium for.

OEM Parts Guarantee pays the cost to replace damaged parts with Original Equipment parts versus the generally less expensive After Market Parts.  

Pet Injury coverage will pay up to a stated amount, typically $500,  for veterinary fees related to injuries and/or burial and disposal fees sustained by a dog or cat while riding in your car when it's involved with an accident . 

Trip Protection coverage will reimburse expenses for food and lodging, travel expenses to get you home or to your destination, and the cost to return your car to your home if you are more than 100 miles from home and your car is damaged to the extent it can not be safely driven.

Accidental Airbag Deployment simply means you will be reimbursed the cost of reinstalling a factory installed airbag if it deploys for reasons other than a Collision or Other Than Collision loss.

Rental Reimbursement coverage reimburses the costs to rent a car if your car is damaged in a covered Collision or Other Than Collision loss.   Typically this coverage can be purchased for a specified Daily Limit such as $20,$30, $40 or $50 subject to a total or maximum benefit limit.   Some insurance companies have expanded on this to remove the daily limit and pay the higher cost for a "like kind and quality" car.  

NOTE!!!
Rental Vehicle Coverage Endorsement (New York) is not to be confused with the above Rental Reimbursement coverage.  The Rental Vehicle Coverage Endorsement is required on all Auto Polices written in the State of New York with fewer than five vehicles and covers the Insured's obligations for damage to a vehicle rented for less than 30 days.   This coverage is required on all New York and the built into the base premiums.

These are a few of the most common coverage add-ons being offered today.  Each insurance company has their own coverage forms and premiums can vary. 

Tom Ditzel

585-344-9505

844-4LAWLEY

tditzel@laweyinsurance.com
www.lawleygenesee.com

Boat - Insurance Assurance

Reposted article written by Joe Friedman for Boating Magazine - October 2014

Insurance Assurance
While it may sound like the same thing, buying boat insurance is an entirely different animal from buying car insurance or a homeowner's policy.  Here's the lowdown on properly insuring your boat.

THERE ARE ONLY TWO ways you can be sure you are getting the best insurance policy for your boat:  Pick the best underwriter and pick a knowledgeable agent.   It's just that simple.  Most important, do not let price enter into the search.   At the end of the day, the extra bucks don't mean a thing when your boat hits a rock.

For example, I know of a very well-heeled guy whose four-year-old $81,000 boat was continually serviced and pampered by a first-class yard.  Money was never an object.  Circumstances developed in which the boat was wrecked, not due to anything he did wrong.  His insurance company,  a well-known underwriter, refused to pay off saying it wasn't properly maintained.  It took him a year of persistent pestering, cajoling and threatening before it finally paid him the policy's "agreed value" plus an additional $3,000 for accumulated expenses. 

Another guy made the unfortunate mistake of assuming that a longtime friend who handled his home and auto policies could also write a policy for his boat.  Wrong.  The policy as written did not take into account one of the basic caveats of marine insurance "agreed value" as opposed to "actual cash value".   To his dismay and surprise, when his $100,000 boat sank, the company offered him $68,000 because that was the value at the time of the incident. When choosing an agent for marine insurance, that person should have familiarity with boats as a bare minimum and, more important, represent a recognized, well respected marine insurer.

How do you effectively find the right underwriter and agent?  Between the yacht club/marina bar, the boatyard and the internet, you should be able to come up with the right combination.  Ask the guy who handles your personal policies (health, auto, business) if he has experience with boats or if he knows someone who does.  Chat up the owner/manager at your yard and find out which company pays the best with the least hassles.  Visit as many online forums as possible and she what people are saying - good or bad - about a broker, agent or underwriter.   Post your own inquiry on a forum that seems to be on the right page - not one with guys trying to be funny or letting off uncontrolled steam.  The information is out there, and it's up to you to do your homework.

Here are some of the things you should be looking for when purchasing a policy.  If you plan to leave your "home" cruising grounds, be sure you're covered.  This is especially true if you plan foreign cruising to the Caribbean, Canada or Mexico.  You might need an endorsement.  Look for an arbitration clause under the claim settlement section.  It's your guarantee that, when you get into a difference of opinion, you'll have a third party to help make a fair call. See what the deductible is and if it varies depending on the claim issue, like hurricane coverage.  Understand what salvage is and how it affects your claim.

Your boat is probably the second-largest investment you'll ever make.  Take time to explore and understand your insurance options, and remember, price should not e the issue.

Does everyone need insurance?  Yes....and no.  At some point, insuring a boat is just a waste of money. As the value of the craft approaches the cost of the annual premium, it's time to re-evaluate.  Even so, you should never be without adequate liability insurance.  Accidents to happen, and you could be in a situation in which someone is seriously hurt or you caused major damage to another boat or facility. A minim coverage of $500,000 is recommended, and based on your individual situation, it could be considerably higher.  We live in a litigious society, and your agent should be able to suggest meaningful coverage to keep you protected in case of an accident.

Boating Magazine.com October 2014


As the article states... buy your boat insurance from someone who knows boats and has a good understanding of the special coverage available for watercraft.  While boat insurance is offered by many insurance companies, not all policies are the same.   Choose one who has a marine division so your claim isn't being handled by the same  adjuster who also works on home or auto claims.  

Tom Ditzel
Lawley Genesee
Foremost Marine Insurance Specialist
585-344-9505
800-807-1055 Ext 6505
tditzel@lawleyinsurance.com

Lawley Genesee Insurance partners with Nationwide AgriBusiness

Lawley Genesee Insurance is proud to partner with Nationwide Agribusiness, the nation's number one farm insurer.   We want to protect Rural America.

Reasons to Choose Nationwide Agribusiness

At Nationwide Agribusiness, we value people, we’re customer-focused, we act with honesty and integrity and we trust and respect each other. But our core values are just one of the many reasons our customers trust us to protect their most important business assets.