In the face of financial insecurity in the market place, workers and retirees need to have assurances that their money is safe, sound, secure.  We would like to help.  One of the issues facing workers today is the management of their 401K retirement accounts upon separation from service with an employer.  In todays uncertain economic times safety and security seem to be un-attainable.

We suggest these folks consider insurance annuities.  Annuities are safe, secure and can be used in individual IRAs, Roth IRAs, 401K retirement roll overs, or as a replacement for traditional bank CD’s.  Annuities generally pay a higher interest rate than the bank CD’s and are guaranteed contracts.  This means that the investor will be guaranteed a positive investment result.  We only recommend annuities from the highest rated companies who practice the best, most conservative, financial management and have a history of solid financial ratings.

Contact Brian Lampton today and ask how an annuity could provide peace of mind, and an excellent addition to any one’s retirement portfolio.

Location:

The best place for your smoke alarms:

     On every level of your home, including the basement and workshop

     Outside every bedroom

     On the ceiling or 6 to 12 inches below the ceiling on the wall.  Keep them away from air vents.

Testing:

Test the alarm batteries once a month

     Press the test button with your finger

     Replace the batteries once a year

Maintenance:

Clean the alarm following the manufacturer’s instructions.

     Vacuum the grill-work on the detector periodically to keep it dust-free.

Preventing Nuisance Alarms:

Move the alarm away from the kitchen or bathroom.

     Get a different type of smoke alarm, like a photoelectric that’s less sensitive to common causes of false

     alarms.

     Choose a smoke alarm that has a silencing feature, so nuisance alarms can be stopped quickly and

     easily.

Before Winter Storms and Extreme Cold

Add the following supplies to your disaster supplies kit:

• Rock salt to melt ice on walkways
• Sand to improve traction
• Snow shovels and other snow removal equipment.

Prepare your home and family

·         Prepare for possible isolation in your home by having sufficient heating fuel, because regular fuel sources may be cut off. For example, store a good supply of dry, seasoned wood for your fireplace or wood-burning stove.

·         Winterize your home to extend the life of your fuel supply by insulating walls and attics, caulking and weather-stripping doors and windows, and installing storm windows or covering windows with plastic.

·         Winterize your house, barn, shed or any other structure that may provide shelter for your family, neighbors, livestock or equipment. Clear rain gutters; repair roof leaks and cut away tree branches that could fall on a house or other structure during a storm.

·         Insulate pipes with insulation or newspapers and plastic and allow faucets to drip a little during cold weather to avoid freezing. Be certain that your waste plumbing system will safely handle the water without clogging or freezing.

·         Keep fire extinguishers on hand, and make sure everyone in your house knows how to use them. Use one outside to familiarize yourself with the pressure and dispersion, and then have it recharged immediately.

·         House fires pose an additional risk, as more people turn to alternate heating sources without taking the necessary safety precautions.

·         Learn how to shut off water valves (in case a pipe bursts).

·         Know ahead of time what you should do to help elderly or disabled friends, neighbors or employees.

·         Hire a contractor to check the structural ability of the roof to sustain unusually heavy weight from the accumulation of snow - or water, if drains on flat roofs do not work.

Dress for the Weather

·         Wear several layers of loose fitting, lightweight, warm clothing rather than one layer of heavy clothing. The outer garments should be tightly woven and water repellent, and bright colors are suggested for safety.

·         Wear mittens, which are warmer than gloves.

·         Wear a hat. Body heat escapes rapidly from the head.

·         Cover your mouth with a scarf to protect your lungs.

Winter Fire Safety Tips from The U.S. Fire Administration

§         Smoke alarms should be installed on every level of your home. Test the batteries every month and change them at least once a year or when the alarm ‘beeps’ at regular intervals.

§         Space heaters should have an automatic emergency shutoff device in case they tip over. Only use the fuel recommended by the manufacturer.

§         Never refill a space heater while it is operating or still hot. Refuel outside, away from the house.

§         Wood stoves must be properly installed, away from combustible surfaces, have the proper floor support and adequate ventilation.

§         Never use flammable liquids, such as gasoline or lighter fluid, to start or accelerate a fire.

§         Have furnaces and chimneys professionally inspected annually and cleaned if necessary. Creosote buildup is a common cause of chimney fires.

§         Use a glass or metal screen in front of fireplaces to prevent sparks from igniting nearby carpets or furniture.

§         Never thaw frozen pipes with a blowtorch or other open flame. Use hot water or a UL listed device such as a hand-held dryer.

§         Dispose of hot ashes in tightly sealed metal containers placed away from the house.

§         Don’t use the oven to heat homes. Besides being a fire hazard, it can be a source of toxic fumes.

§         Keep fire hydrants clear of snow for easy access. 

• Between 1997 and 2002, the average medical liability payment to claimants in “serious” accidents, that is, accidents in which one person was admitted to a hospital, was $46,199.
• Between 1997 and 2002 62% of all claimants that received any amount of bodily injury liability payments also were paid money for lost time from work.
  • Of those 62%, the median number of days lost from work was seven.
  • 20% of those who lost time lost more than one month of work.
  • The payments for lost work time range from an average of $5,000 for the median claim, $15,089 for one month claims and $30,253 for those out of work 3 months or longer.

These dollars area also paid under the bodily injury per person and per accident limits.

• Between 1997 and 2002, 25% of claimant’s cars in accidents where bodily injury liability payments were made contained more than one passenger. In over 83% of those instances, when one passenger was injured the others were also injured. So, consider the above figures and at least double them in one quarter of accidents.
• Courts tend to be generous with liability awards. From 1997 to 2002, fully 81% of bodily injury claimants received bodily injury payments that were greater than the actual losses they claimed.

See above photos of my office and our roof damage, notice the very top of the roof and the missing shingles

Some Homeowner coverage’s relating to the wind damage from Ike 09/14/08

Ohio has been declared a disaster from the storm that produced 80 MHP winds on 9/14/08.  The last time Ohio was declared a disaster was 1979.  I can’t help but to think that I thought we (in Ohio) would be safe from a hurricane?!

My home is still without power, and my agency’s office building sustained roof damage.  I want to address some of the coverage questions with our customers relating to fallen trees, damaged roofs, and spoiled food.

If your Homeowner policy is with ERIE Insurance:

The policy will provide debris removal coverage for fallen trees.  This coverage is up to $1,000 per occurrence with a limit of $500 per tree.  The policy deductible applies.

If a fallen tree damages covered property the cost of removing that part of the tree that hit that property will be covered along with the repair or replacement of that property.  The policy deductible applies.

The homeowner policy provides coverage for loss of the contents of the refrigerator or freezer units on the residence premises from power failure.  The only exception is for contents used for business purposes.  The policy deductible applies.

If you have experienced shingles blown off the roof, the policy will either repair or replace, based on examination and extent of the damage.  If only one side of the roof is damaged then that part of the roof may be all that will be paid for.  The claims department will make the final determination and the policy deductible applies.

If your home is insured with Auto-Owners Insurance:

The policy will provide debris removal for trees fallen in the yard up to $500.  The policy deductible applies.

The food spoiled in the refrigerator or freezer on the residence premises in the standard un-endorsed policy is $250 per loss.  If your home policy has the “enhancement “Plus” endorsement the coverage is increased to $750.  The policy deductible applies.

If you have shingles blown off the roof, the treatment is the same as Erie Insurance, if the roof can be repaired then it will be, if not, then the policy will pay for replacement of the damaged part of the roof.  Often times in a storm like this only one side of the roof is damaged, or just the front, or back.  In that instance, the insurance carrier will most likely pay for that part of the roof replacement. 

ONE MORE IMPORTANT NOTE:  If “your” tree falls in your neighbors yard, or hits your neighbors house IT IS NOT YOUR FAULT, (unless you were made aware that that tree was dead and poses a threat to their property).  The same thing goes for a tree from your neighbors yard, if it hits your car or house YOUR insurance will be responsible. 

Please call us if you have “what if” questions, or need recommendations for contractors, or just want to talk about these or other insurance related issues.

As many as a million Americans may have been affected by identity theft during the last year alone, according to the federal trade commission.  Identity theft is when someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain or to commit crimes(s).  These crimes include stolen credit card numbers, bank account information used for the financial gain of the criminal.  Loans can be obtained falsely, properties purchased and bankruptcy filed all under another person’s name.  On occasions crimes are committed, warrants for arrests issued under another person’s name.  Illegal aliens use false social security numbers to obtainwork, establish credit, buy a home, pay taxes, usually using their own names but with another’s social security number.

What steps can be taken to reduce an event of identity theft.  Review your financial information at least annually, including running your credit report, credit card statements, and bank statements.  Keep your personal data on a need to know basis.  Only provide this information to trusted sources and vendors.  Destroy documents that contain personal information before it is thrown in the trash, including all junk mail, and credit card offers.  When travelling, have a trusted neighbor retrieve your mail each day while your away.  Be careful when you are on the phone especially when giving away personal information.  Pay attention to who is standing with in ear shot, and to whom you are speaking.  Run a full background check on yourself at least annually.  Hire a private investigation service to run a standard “pre-employment” check on yourself.  This type of service shouldn’t cost too much.

Most homeowner insurance companies will now offer FOR ADDITIONAL PREMIUM the option to add identity theft coverage.  The most important part to remember about this coverage is that it will NOT pay for lost funds or stolen monies from accounts or charged through those accounts.  The coverage is designed to pay for reasonable and necessary expenses that are incurred as a direct result of an identity theft.  Examples could include costs for re-filing applications for loans, attorney fees, and document reconstruction, time off work, and additional day care expenses.  There is no coverage for a business or professional entity and it’s identity.  There is no coverage for an act of an insured to another insured.  What this means is a spouse who still lives at home in the process of a divorce gets money from an account, or racks up huge credit card debt and “sticking it” to the spouse.  There would be no coverage for a grandchild living with a grandparent and uses the grandparents information for financial gain.  The claim is triggered when the theft of id is DISCOVERED, this becomes the date of loss and it is the policy at that time that will respond.  The theft must be reported to the insurance company within 60 days after the theft has been discovered.

At the time I wrote this article, I received an e-mail from what appeared to be my credit card company stating that I had been “locked out” from logging on their web site because the wrong password had been used.  I called the credit card company and they told me that the e-mail was a scam.  The e-mail that was sent to me looked very authentic, including the credit card company logo.  I will be checking my next few credit card statements for unauthroized charges.  For more information on the insurance coverages available please contact our office.

What Does It All Mean?

Insurance companies use terms that are difficult for some folks to translate so it can be understood.  We will attempt to help define some terms and try to simplify them so they are easier to understand.

Comprehensive or “Comp”:  This term refers to coverage for your car.  The best way to put it is that this coverage refers to damage to your car caused by everything other than a collision.  The “Comp” coverage should include things like theft, vandalism, hail, falling objects, glass (windshield) breakage, flood, insects, anything other than collision.  This will also include hitting an animal or person.  Hitting a deer that tears up the front of your car would be considered a “comp” claim.  What it won’t cover are the usual things such as wear and tear, intentional acts, war, manufacturing defects, and so on.  The “comp” coverage on your car is about the broadest most comprehensive type of insurance that you can buy because it includes things such as flood, earthquake, rodents, vermin, and insects.  Remember each company is different so it is important to read your policy or talk with your agent.  This coverage usually has a deductible, which means, the customer pays the deductible FIRST, before the insurance company will pay.  The higher the deductible, the lower the premium charge.

Collision:  This term is fairly well understood.  This is when your car is damaged by a collision with another vehicle, bike or object.  Remember that hitting an animal is not a collision.  If a kid on a bike hits your parked car that is a collision.  If you hit a pothole that is a collision, or hitting a ditch would be a collision.  Hitting a tree or other stationary object is a collision.  This coverage also usually has a deductible.

ACV:  This term refers to Actual Cash Value or in english, the value of the car.  What is the book value or retail value of the car just before the moment of loss.  Many factors are involved in determining the “value” such as the year, make, model, current mileage, options, and overall condition of the car.  Insurance companies have extensive data bases to calculate these values based on the area of the country you live and what price the car could be reasonably be sold.  This is often a source of great frustration with people because it never seem “fair”.  Our web site has a link to the NADA and to auto-trader to help folks determine the ACV or value of their car.

Bodily Injury Liability:  This is very important coverage that pays on behalf of the customer for injuries they caused in an accident.  Included in this coverage are defense costs.  This means the insurance company will hire and pay for the defense of a suit against the customer who may or may not have caused an accident.  Even though most accidents don’t involve injuries, when there are injuries, the medical bills, time off work, pain and suffering costs can really multiply.  The law requires owners or operators of motor vehicles to have this coverage, the call it financial responsibility.  There is usually no deductible for this coverage.  Some people call this the insurance for the other guy.

Un-insured and under-insured bodily injury:  This is a fun one.  First of all, this coverage is designed for INJURY only, not for coverage for a car.  This coverage is activated in the event that YOU are injured in an accident, and you are not at fault AND the person(s) at fault has no or less insurance than you.  Then you can collect injury, pain and suffering, loss of work, and such against the person who CAUSED the accident from your own policy.  A lot of claims are paid under this coverage because 20% (or so) of Ohio drivers do not carry any liability insurance.  This coverage protects the customer from financial loss just like the “regular” bodily injury does. 

We recommend people carry high deductibles to help keep their insurance premiums down, but we also recommend people consider and carry high limits of liability.  We are a very litigious society and one mistake that leads to an accident can dramatically affect a persons financial future or worse wipe out their life time of savings.

What is and what isn’t covered regarding a rented car

It is summer time, the time for family vacations.  How will the personal auto policy cover a rented car?  Does the credit card company cover it?  What about buying the protection from the rental car agency? 

Insurance companies will vary on how they provide coverage to a rented car so check with the insurance agent regarding coverage extending to the rented car.  Typically, the liability insurance will transfer to the rented car.  Actually the liability will extend to a rented moving van or truck in most cases as well.  Be careful that the rented vehicle is rented personally, for personal use.  Personal auto policies are not written to cover business uses.

Ok, so the liability will extend, what about coverage for the rented car itself?  Again, check with the insurance agent regarding what coverage will extend to the rented car.  In most cases, the insurance carrier will extend the “comp” and “collision” coverages to the rented car if they are already providing it on the current auto policy on at least one of the owned vehicles.  At least one of the vehicles on the personal auto policy must have the “comp” and “collision” coverage listed.  There is another “catch”.  The rented vehicle must be a “PRIVATE PASSENGER AUTO” as defined by the carrier.  Pick up trucks, passenger vans are usually ok, anything bigger are not.  Watch out for the moving vans and trucks, flat bed trucks, box trucks are examples of vehicles that would NOT be covered. 

Be aware that the auto insurance policy may not cover all the expenses that could occur should the rented car get damaged.  Most rental car agencies will charge a “claim processing fee”.  This will not be covered by the personal auto policy.  If the rented car is going some time to get repaired the rental car agency will continue to charge rental fees because the car is “unable to be rented” and this extra charge will not be covered by the insurance.  There are other things that could be charged by the rental car agency that the personal auto policy won’t cover.

We suggest buying the “damage waiver” from the rental car agency.  This is NOT insurance.  It is just what is says, a damage waiver.  The car can be returned in 50 garbage bags and the renter could walk away without owing a dime.  Provided the conditions of the contract were met.  Be careful to understand the contract and all the conditions regarding who can drive the car, where it can be driven, and the condition of the driver while the car is being operated.    

Ask the insurance agent about what the insurance carrier will and will not cover, and find out how much the rental car agency charges for the “damage waiver”, then decide based on how long the car will be rented, and think about the “possibility” or “risk” of an accident or damage to the car.  It could be the rented car is being driven in Boston or Chicago or another big busy city, which would increase the risk.  Perhaps it is a replacement for a wrecked car and it is just for a couple of days at home.  There is no “wrong” or “right” decision, but a little planning and knowledge can save hundreds perhaps thousands later.

Top 10 Ways To Lower Your Car Insurance Bill
By Warren Clarke, Automotive Content Editor

1. Get more than one rate quote before you commit. “Company prices are very different, and it pays to shop around. You can easily wind up paying double from one company to the next,” says J. Robert Hunter, director of insurance with the Consumer Federation of America, a national watchdog group.Want to get a sense of who the low-priced carriers are? The National Association of Insurance Carriers offers a map on its Web site that lists each state’s regulators. Click on your state and you’re taken to the state’s Department of Insurance Web site. Its consumer buying guide compares insurance premiums across a range of companies. You’ll also learn how many complaints each company has logged. Surprisingly, you don’t have to sacrifice service quality to score a low premium. “A lot of the lower-priced companies have the best service rates,” says Hunter.
2. Evaluate insurance costs before you buy your vehicle. The year, make and model of your vehicle can have a profound impact on your insurance rate. All else being equal, new, expensive or sporty cars will cost more to insure than older, cheaper and more utilitarian vehicles. But you could find a substantial discrepancy even when comparing the cost to insure similar cars. So if you’ve got a few models on your shortlist, contact your carrier to see what rate each vehicle commands. Doing so could ultimately net you a windfall in savings when the time comes to pay your premium.
3. Go high on deductibles. If you’re willing to give a little with your deductible, you can wind up saving big on your rates. “If you go from a $250 to a $1,000 deductible, you can save between 25 and 40 percent on your policy,” says Hunter. You can then set aside a portion of these funds to cover your costs in the event of a claim.
4. Nix collision and/or comprehensive coverage on older cars. If your older car has comp and collision coverage, you might find yourself paying more in insurance than the car is worth. “Take your comp and collision premium and add it up, then multiply it by 10. If your car is worth less than that, don’t buy the coverage,” says Hunter. If you’re worried about being left overexposed, consider this: The typical policyholder makes a claim only once every 11 years, and reports a total loss only once every 50 years.
5. Mind your credit score. An increasing number of carriers are considering credit scores when making rate calculations. “Your credit score can be very important in determining your rate,” says Hunter. “You can wind up paying up to 50 percent more if you have a bad credit score.” Keep your credit score in tip-top shape by paying bills in a timely manner and by regularly checking that there are no items on your history that do not belong to you.
6. Ask about low-mileage discounts.Many carriers offer discounts to policyholders whose annual mileage is lower than the norm. Maybe you have a short commute. Or maybe your participation in the office vanpool results in fewer hours spent in your daily driver. Whatever the case, your low mileage can score you a reduced rate with some companies, so be sure to inquire about available discounts.
7. Ask about group insurance discounts. Oftentimes, insurance companies offer discounts to policyholders who are members of certain organizations or professions, such as veterans, engineers or teachers. Request a list of these groups from your carrier to see if you qualify — you might be pleasantly surprised.
8. Ask about all other discounts.Some carriers offer discounts to policyholders whose vehicles bear certain safety features, like anti-theft devices or motorized seatbelts. Others give reduced rates to senior citizens, and to students whose grades meet certain requirements. “Many carriers offer discounts. Ask for them when you’re shopping,” says Hunter.However, Hunter offers one caveat: “Some of the companies that offer the highest discounts have the highest rates, so don’t get too focused on discounts. Some high-priced companies offer high discounts, but at the end of the day you’re still paying more.”
9. Avoid lapses in coverage. Even a brief lapse in coverage can disqualify you from receiving discounts. “They use lapses in coverage to increase your premium,” says Hunter. Pay your insurance bills on time. And if you’re switching carriers, make sure not to quit your previous carrier until the new coverage takes effect.
10. Think twice about paying in installments. Most carriers charge an administration fee to pay in installments. One carrier surveyed levied a $10 charge per installment to those who opted to break up their bill. The solution? Pay your premium up front, if at all possible.Of course, this charge is more significant for those with small premiums. If you’ve got a king-sized premium and feel you’d get a better rate of return by investing your funds elsewhere instead of paying up front, then the installment route will probably best suit your needs.