Sorry … that’s NOT covered by your insurance!

Friday, January 15th, 2010

In the past few months, I’ve come across numerous articles highlighting the findings of new research by the National Association of Insurance Commissioners. I found the report so shocking that I wanted to get the information in your hands as soon as possible.

Get this

In spite of ALL the publicity surrounding the uninsured flood damage from Hurricane Katrina, we’ve discovered that one out of every three homeowners incorrectly believes that flood damages would be covered by their homeowner’s insurance policy. You need to know that the typical property and liability policy does NOT cover home damage from floods, earthquakes, water line breaks, termites, mold and several other perils.

The NAIC survey further revealed these alarming statistics about homeowner misunderstandings when it comes to common loss situations – none of which are covered by standard home insurance policies – such as:

• 68% think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered by their Homeowners Insurance.
• 48% think that Identity Theft is automatically covered.
• 37% think that damages outside of the home, due to a break in the sewer line that connects to their municipal sewer system, are covered.
• 35% think damages from earthquakes are covered.
• 34% think mold damage is covered.
• 31% think termite damage or damages from other infestations are covered.
• 22% think pets stolen from or injured on their property are covered.

What you don’t know CAN hurt you!

The more I read the survey results, the worse it gets. Too many homeowners don’t even understand what type of coverage their insurance provides. Twenty-four percent believe their home is covered for Actual Cash Value, 64% said Replacement Cost, and 12% had no idea at all. This is a very important distinction as Actual Cash Value represents only what it would cost to repair or replace damage to your home and contents “after” depreciation (in case you’re wondering…ACV coverage is generally not a good thing).

Spend a little…Save a lot

The survey showed that a significant number of respondents are rightfully more concerned about being sued today than they were five years ago. Although we’ve been suggesting it to our clients for many years, statistics show that most homeowners – 63% – have never added a relatively inexpensive umbrella liability policy to protect themselves against this risk.

What to do?

If you’re uncertain about your coverage…call us. If you don’t have an umbrella liability policy… call us today!

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Putting Your Cell Phone on ICE

Friday, January 15th, 2010

What would happen if you were incapacitated and paramedics didn’t know who to contact? A good friend of mine experienced this frightening situation a number of years ago when his mother-in-law was at the hospital for an appointment and collapsed in the waiting room. Through the quick actions of medical personnel she was resuscitated and then placed in intensive care. Unfortunately, she had nothing in her purse to indicate who to contact in case of an emergency. It was hours later before her family realized she was “missing”; and then it took a series of calls before they were able to determine her whereabouts and rush to her bedside.

I just recently learned about a simple and effective way to provide emergency responders with a quick link to your emergency contact(s). The idea is that you store the word “ICE” in your cell phone address book along with the number of the person you would want to be contacted in case of emergency. (Incidentally… I.C.E. is an acronym for In Case of Emergency.)

If you have multiple contacts you can use ICE1, ICE2, and so on. Another great idea is to also enter the name of the individual.

Here are a few additional suggestions to help you get the most out of ICE-ing your cell phones. Make sure…

1. …the person whose name and number you are using has agreed to be your ICE contact.
2. …your ICE partner has a list of people to contact on your behalf, including your place of employment.
3. …to always include every phone number for that individual – home, work and cell.
4. …your ICE partner’s number is one that’s easy to contact. For example, a home number could be useless in an emergency if the person isn’t home.
5. … your ICE partner knows about any medical conditions that could affect your emergency treatment. For example, any allergies or current medications.
6. … to encourage your family, friends and loved ones to make an ICE entry in their cell phones, especially if it will give them peace of mind. Always include written emergency contact and medical information elsewhere as a safety precaution.

At this time, ICE is not so commonly used that paramedics know to look for it. We hope increased worldwide awareness will make it a universal application in the coming years. Tell a friend and help spread the “ICE”.

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The Emergency Contact Program

Thursday, January 7th, 2010

Click here to download the The Emergency Contact Form

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19 Reasons to do Business with Gannon Insurance Agency

Thursday, January 7th, 2010

1. GREET YOU with a real person – no irritating maze of button pushing
2. ANSWER YOUR CALL  in three rings or less
3. RETURN YOUR CALL the same day – normally in less than 45 minutes
4. ANSWER YOUR QUESTIONS on the spot OR get back to you within 24 hours
5. MAKE CHANGES to your policy in less than 10 minutes
6. FOCUS on proper protection at all times
7. TO BUILD our Protection Team with only the most competent, professional, and friendly people in the industry – this means you will always receive the HIGHEST level of service
8. RECOMMEND limits to assure that you are protected against lawsuits
9. MAKE YOU FEEL like you are our only client
10. RETURN ALL OF YOUR UNEARNED PREMIUM if you should decide to cancel your policy for whatever reason
11. REVEAL INSIDER SECRETS on how to get the best pricing
12. PAY YOUR CLAIM as quick and fair as humanly possible
13. PROVIDE TIPS on leveraging your deductible so that you save money each and every year
14. HELP YOU UNDERSTAND your policy
15. EXPERIENCE – Our licensed Agents have over 63 combined years of insurance experience and regularly pursue continuing education
16. PROACTIVE – we make an effort to review your policy before the next renewal and send you updates or options to save you money
17. CONSISTENT RATES – we will not lower your premium one year to hook you and spike it the next!
18. PROVIDE you with Quick/Free ways to conveniently contact us at all times: office: (215) 891-9990, steve@gannonagency.com or Fax (215) 891-9995
19. 24/7 DIRECT CLAIM REPORTING

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Are You Properly Covered?

Thursday, January 7th, 2010

• What is an umbrella policy?

  It is a policy that provides you with $1 million dollars of liability protection. In most cases it is an excess of your home and automobile policies. However, in some cases it can provide coverage where your other policies do not.

• What will an umbrella policy do for me?

  Most likely your Erie Automobile policy has a per person limit of $250,000, your “umbrella” policy would then provide an additional $1 million dollars coverage. Without it, you would be responsible for any portion of the settlement over $250,000. In addition it provides excel liability on homeowner claims in excel of your standard liability listed on your policy. Also, if you do not have an umbrella policy, Erie’s duty to defend ends when your underlying limit has been reached.

• Still not sure you need more liability coverage?

  Check the newspapers. You will find many situations where lawsuits exceed the limit of liability on your current policies. Ask around. We are not the only ones that suggest purchasing this coverage. Man of policyholders call on the advice of their lawyers and accountants.

• But is it expensive?

  Not at all – the average family with one home and two automobiles can get a policy for about $163. Add $30 for each additional auto; $85 if there are drivers under 24; subtract $30 if you have only one auto. Other charges/credits can apply but this will give you an idea of the cost.

• How can I get an “umbrella” policy?

  Call our office at (215) 891-9990 and we will get some rates together for your specific needs.

• Can I get more that $1 million?

  Yes, however Home Office approval is required. Simply give our office a call and request a policy for $2 million.

CALL GANNON INSURANCE TODAY AT (215) 891-9990

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When the Other Guy’s at Fault

Thursday, January 7th, 2010

What Happens To Your Deductible When The Other Guy’s At Fault?

For the most part everybody understands how their deductible works. If you have a claim, the total amount of the loss is first determined. You pay up to the amount of your deductible. Your insurance pays the rest.

By way of example (and let’s focus on car insurance here), let’s say you back into a pole and cause $1,500 worth of damage to your car. If you have a $500 deductible the insurance company will pay $1,000 for your damages – $1,500 damage minus $500 deductible equals $1,000 paid by the insurance company.

You Gotta Believe Me… I Didn’t Do It!

But what happens when somebody else hits you? What if it’s their fault? Do you still have to pay your deductible out-of-pocket? If yes, that doesn’t seem fair. Why should you have to cough up your deductible when the other guy hit you?

Great questions. Let’s get some answers!

When you’re involved in an accident, and it’s the other guy’s fault, you basically have two options for handling your claim. Which way you go depends on what’s more important to you… cash flow or the hassle factor.

Option 1: Work Directly With The Other Guy’s Insurance Company

Hassle: High

Cash Flow: Good

If the other driver’s company isn’t disputing the fault of the accident you can work directly with them. In this case, you would not submit a claim on your own policy.

Instead, you would work directly with their claims adjuster to get your car fixed. They would pay all your repair costs, and your deductible doesn’t come into play. You pay nothing out-of-pocket… which is nice. That’s why the Cash Flow is rated Good on this option.

The Hassle Factor is high on this option because you’re at the mercy of a company you’re not insured with. Will they treat you well? Will you have to chase them around?

We, your Protection Coaches can help, for sure. But if we don’t represent that company, we don’t have any influence over them, either.

Option 2: Submit The Claim On Your Policy

Hassle: Low

Cash Flow: Not As Good

Many times fault is not a cut and dry matter. Often it’s one driver’s word against another’s. Or one company alleges that both drivers had some level of fault.

And even if fault clearly lies with the other driver, their company might give you the run around.

In these cases, you can submit the claim to your insurance company and let them go to work for you. They’ll pay to fix your car, and then they’ll go after the other driver’s company to get the money back. This “collection process” is called subrogation.

The Hassle Factor is low for this option because your company is working for you – as they should be! But because you’ve submitted a claim on your policy, your deductible will apply. That means you’ll have cash out-of-pocket for the amount of your deductible.

Good news, though… when your insurance company collects from the other company, you’ll get some, or all, of your deductible back! Either voluntarily or through arbitration, the companies assign a portion of fault to each driver. If the other driver is 100% at fault, you get your entire deductible back. If the other driver is 75% at fault, you get 75% of your deductible back. Etc.

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Life Insurance Guide

Thursday, January 7th, 2010

It’s not a ton of dough, but it’ll go a lot further for your family than a big fat goose egg.

In all my years in this business, I’d say the one product that drives people nuts is life insurance. When a guy doesn’t have it, he squirms when the subject comes up; it gnaws away at him when he sleeps. Nothing but questions, confusion and, yes, guilt:

• “How much?”
• “When?”
• “What kind?”
• “I don’t want to go through all that medical stuff, what if they find ‘something’?”
• “Forget this, pass the remote.”

On the other hand, when that policy is finally issued, the same guy who was squirming suddenly feels relieved.

As a buyer and seller of life insurance, I can assure you this is true. Over-thinking the particulars of life insurance fuels our natural, all-too-human inclination to put off the purchase.

Here’s my take: Yes, do your research. Look into whole life, universal life, variable life, annuities, etc. (I can help.) But while you’re becoming an expert, please don’t miss the forest for the trees.

A family (YOURS!) needs the extra financial cushion to weather the financial catastrophe that follows the death of a breadwinner. Apply for $100,000 – $250,000 of 20-year level term protection now. For most people, this will fit into the family budget. For most families, it’s still not enough, but it’s better than nothing. It’s a good start. Underwriting and issuing this amount of life insurance is relatively ‘painless’. And I haven’t read yet about the widow who gave back the life insurance check to the company. “No thanks, my family doesn’t need this – give it to someone else more deserving.”

Two more quick points:

• Life insurance can’t be taken away once you’ve got it. BUT you may not be able to afford it or get any protection if you become ill before you apply (diabetes, heart disease. cancer, etc.)
• The world’s financial ‘flu’ infects the life insurance industry too. Rates and fees are rising. You can lock in your costs now with one of several top-rated companies.

Our agency is here to advise and sell you all the insurance products to protect your family – not just home and car insurance. Life insurance is a critical piece to your family’s security.

Call me for a quick indication of what $100,000 – $250,000 would cost you – I can give you a price in SECONDS. Call 215-891-9990 and ask for Steve.

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How Do You Get the Most for Your Money?  10 Ways to Save Money on Your Car Insurance

Wednesday, January 6th, 2010

10 Ways to Save Money…

So you’re shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 10 - that you can save money. Many of these money-saving ideas may apply to you.

1. One Insurer, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you’re paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company.
   These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.
   *Tip.  Talk to your agent about multi-policy discounts.
2. Good Driver, Good Price? – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.
   Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies.
   These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?
   The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, probably, no one told them there was even a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.
   * Tip.  Make sure you’re getting the best discount for your driving record.  Talk to your agent.  And remember, be a safe driver.  It will save you money.
3. The Beauty of the Bus (or Other Mass Transit) – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.
   * Tip.   Some drivers should consider mass transit. Yes, there’s a price there, too. But you will reap the savings of gas and lower insurance costs.
4. Low Mileage, Low Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
   * Tip.   If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.
5. High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.
   * Note.  To get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying – write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the “Highway Loss Data Chart.”
6. Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The lower the deductible you choose, the more you pay. If you have assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim.
   *Tip.  If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.
7. Drop Unnecessary Coverages – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.
   *Tip.  As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.
8. Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.
   *Tip.  Make sure you are taking advantage of all the discounts available to you!
9. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.
   *Fact. Rates can really vary from state to state. If you’re living in New Jersey, Massachusetts or Hawaii, you’re paying several times more, on average, than you would in North Dakota, South Dakota or Idaho.
10. Taking the Defensive – Many insurance companies also offer discounts to those who have completed defensive driving courses recently.

At Gannon Insurance Agency, we take a personal interest in our customers. We like to share information that comes to help you protect yourself and your family from financial loss. If you have any questions, regarding this information or your insurance coverage, please don’t hesitate to give me a call (215) 891-9990 or e-mail me personally at steve@gannonagency.com.

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