Q. I thought all you did was car and home insurance! (OK. Not really a “question”, but we hear it all the time.)
A: The Gannon Agency is an Independent Insurance Agency. Always has been. A good portion of our business is Auto & Home Insurance with Erie Insurance but we also represent Travelers, Grange, Progressive, The Hartford, Foremost, Modern American and others for personal lines. AND..we help our clients buy a lot of life insurance! We represent many life insurance companies to get the best deals we can find. Plus, we also handle Business Insurance (i.e. Commercial Auto, General Liability, Workers Comp, etc.) and more. I hope you’ll give us a chance to help with whatever you need!

Q. What is your fax number and mailing address?
A. The Gannon Insurance Agency’s fax number is (215) 891-9995. Our office address is: 2383 Pasqualone Blvd. Bensalem, PA 19020

Q. What is a deductible?
A. In insurance policy terms, it is the amount that must be paid out of pocket before the insurer will pay for any damage to your home or vehicle. In practical terms, insurance companies include a deductible in the policies to keep premiums down by avoiding payouts on relatively small claims. A typical auto insurance policy for example, may carry a $500.00 collision deductible. If the owner of that car noticed that his vehicle was hit while in a parking lot, he would have to pay the first $500.00 of the repair bill out of his own pocket.

Q. If I borrow a vehicle from a friend and I am involved in an accident, whose insurance pays?
A. In most cases, insurance follows the vehicle first so your friend’s insurance would be the primary coverage. Your policy would be secondary. Always check with your agent on your policy specifics.

Q. Why is my mortgage company requesting that I supply a copy of my insurance policy?
A. Mortgage companies want to make sure that their interest in the property is properly protected by insurance. At renewal, insurance companies sell mortgages to other companies or change addresses without notifying the insurance agency. Any request for proof of coverage should be mailed or faxed to the Gannon Insurance Agency. We will send the proper evidence of insurance to your lender.

Q. Why does my homeowner’s coverage continue to increase each year?
A. The increase in coverage reflects the increase in the replacement cost of your home. The replacement cost was originally determined at the inception of your policy using a replacement cost estimator. Insurance companies automatically update the replacement value of your home each year based on the inflation guard for this region for that particular year. This is due to the fact that the cost of building materials, supplies and labor often increase even when the real estate value may have decreased.

Here’s the question…”Why do you want to know about the other people living with me?” They don’t drive my car.” The answer to that question takes us to some core concepts about insurance that everyone needs to understand. It’s simple-it’s all about analyzing RISK!

Though the details are complex, at its foundation insurance is quite simple. Your policy is a contract with the insurance company. The company assumes the risk of paying your covered claims in exchange for your premium-the price of your insurance. What is and isn’t covered is the complex part, but the principle is very simple.

The risk to the company is enormous…tens or hundreds of thousands, even millions, of dollars! So, before they take on such risk by selling you a policy, they analyze your “risk of loss”. They ask, “What’s the chance you’ll have a claim as compared to the general population?” And they continue to analyze your risk of loss as your actual claims experience and life circumstances change.

If your risk is comparatively low, you pay a lower price. If you risk is comparatively high, you pay a higher price. And in some cases-or with some companies-you may not be able to get insurance at all, because your risk is too great.

Enter the Other Household Members

Other household members are simply people who live with you. Usually they’re family members, but they can also be unrelated, like roommates.

Like it or not, these people represent potential additional risk to the insurance company. Statistically speaking you can’t argue with that statement… And that’s what insurance companies work with…statistics.

For example, compare two groups of 100,000 people. Each group is exactly the same in every way…The same car, the same distance to work, the same age, the same driving experience, etc. The only difference is the members of the first group live alone, while the members of the second group each have a licensed roommate.

It’s a statistically proven fact that the members of the second group will have more claims than the first group, just because they have a roommate. Why? Because the roommate is more likely to drive the insured car than that of a non –roommate.

No matter how much you insist that your roommate-or brother, parent, child, whomever-does not drive your car, the insurance company, frankly, isn’t listening. They primarily base their decisions on statistical analysis. After all, everybody says their roommate doesn’t drive their car, but the statistics prove otherwise. Therefore, the company wants to know about your other household members, so they can analyze the risk those people represent. Remember, risk analysis is a core concept of insurance.

Higher Prices? Not Necessarily

Interestingly, each company treats other household members differently. The principles on which they analyze them, as I explained above, are the same, but how they handle their findings can be quite different.

What they do boils down to qualification, pricing or both.

For example, some companies analyze other household members only for qualification, but don’t charge for them. In this case, all household members must qualify the same as the applicant, because the company does not want the risk of any bad drivers in the household.

Other companies don’t really care about other household members as long as those members have their own car insurance. However, uninsured household drivers are considered as if they were the applicant. And the company charges additional premium for them.

Still other companies will allow you to voluntarily exclude a bad driver from your policy to avoid paying a higher premium. In this case your claims are not covered if the excluded driver gets behind the wheel of your car.

The Bottom Line

The bottom line is insurance companies analyze risk.  All household members increase risk, so the companies want to know about them.  And what a company does about a household member can be quite different from company to company.

• After the accident, pull your car out of the way and into a safe location.
• Exchange names, addresses, phone numbers and insurance information with other drivers. Make sure you SEE the driver’s license and insurance information of all other drivers. Insist that all parties must exchange information for insurance purposes. If they do not want to comply, call the police.
• Get the names, addresses and phone numbers of any witnesses. This is one of the most important tips I can give you regarding parking lot accidents. Witnesses can help verify what happened during the accident.
• Even though you may be upset, take note of the facts surrounding the incident such as time, date, location, weather conditions and parking lot conditions. Write them down. Take pictures if you have a cell phone with a camera.
• Call the police. Do this even if someone has already done it or several hours have passed since the time of the collision. Most police officers will not come to a parking lot accident (private property = no jurisdiction). However, if they do not come to you, you can go to the closest police station and file a “walk-in report”. Write down everything you know and exactly what happened. This will help you later on to document your claim. Sometimes this will be the only piece of evidence that will come in. DO THIS WHILE IT IS FRESH IN YOUR MIND.
• Even if your parking lot accident is minor and the damages are not significant, call the Gannon Agency right away – we can give you information on how to proceed. This will protect you in case the other party makes a claim against you. Remember that a parking lot accident is the single most disputed accident out there.
• If you do not have a witness, talk to the business owners (or managers) of stores in that parking lot. Many parking lots in America have surveillance cameras and it is likely that the accident was recorded. This will be the single most important piece of evidence.
• If there is no video, take pictures of the parking lot or draw a diagram of the accident. It can simply be boxes and lines to show the position of the vehicles. This will help your insurance claim’s adjuster determine how much visibility you had, etc.

How to Determine Who is at Fault:

People are expected to drive their vehicles with care and thought. Failure to do this is the cause of many accidents and can lead to lawsuits. There can be no-fault accidents, in which case the person who had the right of way is not responsible for the loss. However, if you were backing out of a parking spot and hit a car, you would be at fault since you had the greater duty of care when backing out of your spot. Even though the other person may not have had their lights on or was driving very quickly, because they had the right of way, they’re not at fault. Now if both parties are backing out of parking spots and collide, the loss could be considered 50/50 in which case both parties are partially at-fault.

How to Avoid Parking Lot Accidents:

Park far away from other vehicles, if possible Use a turn signal when making a turn, even in a parking lot Park in the center of a parking space – not on the lines Pay EXTRA attention when pulling into and backing out of parking spots Drive VERY SLOWLY in parking lots – be careful when entering and exiting a parking lot Do not park next to obstructions or hazardous objects Try to get an End parking spot A worthwhile investment that I strongly recommend is getting the back-up sensors installed on the rear bumper of your car, especially if you drive a pickup truck, SUV or van. The back- up sensors will run about $300 – $400 but if it prevents just 1 small claim it was well worth it, especially when you consider that most people have a $500 collision deductible.

You can easily shop for insurance deals against volcanic eruptions if you hire an experienced natural disaster special company. There are many insurance companies that offer a complete range of insurance solutions against the natural disasters and calamities, including volcanic eruptions. Insurance Company Bensalem is one of them, besides; you can also search for seasoned and professional insurance company out there in Warrington, Bucks County, Southampton, Levittown and many more. These insurance companies are aware about all the natural causes that can strike, and how to help an individual in those hours of need. The natural disaster and calamity insurance is done to help an individual financially from the loss which has occurred from any human or natural disaster. These disasters largely include, fire, floods, earthquakes, landslides, volcanic eruptions, thundering, lightening, Tsunami, Katrina, Rita etc. The significant thing to find out here is the extent of damage. If the extent of damage is really huge, then certainly the insurance claim is big, and most of the times it is 100% insurance coverage. Likewise, if the extent of devastation is not huge the insurance company will make the assessment of the damage.

In most of the cases the damages due to volcanic eruptions are more intense and widespread. Families staying close to a dormant or active volcano are given volcanic eruptions insurance coverage and it is a special type of coverage that offers more than what is lost as the result of serious natural calamity like volcanic eruptions.

The best way to know what will be the insurance coverage, and how much you’d otherwise get in the insurance coverage will largely depend on various factors. In such a situation it is always a good idea to check out with a professional insurance company that will provide you with the best and most updated information over the insurance coverage. This will turn out to be helpful for you and your family in case of natural disasters, just like in case of volcanic eruptions.

Shop for the insurance company online that provide you with comprehensive and exclusive insurance cover against volcanic eruptions. With the disaster of the type like a volcanic eruption, there’s always customized solution available, provided you hire professional insurance company for your needs. A professional and experienced insurance company can do a lot to help you in extreme critical situations.

When kids get excited they can be reckless. And what could be more exciting that playing dress-up and getting free candy! It’s a fun-filled combination that could also lead to accidents and injury. So, let’s have fun AND be safe. Check out these tips…

The Costume

• Fire-proof materials are a must. And use light-colored material, or put reflective tape on them so drivers will see your child.
• Make sure the length will not trip your child
• Mask eye holes should be large enough for good peripheral vision. Better yet, skip the mask and try a hypoallergenic, non-toxic make-up kit. It will be more fun, too!
• Make sure any props have smooth, flexible edges in case your child, or someone else, falls on it

Trick-or-Treating

• Remind your kids that “all the time” safety still applies-like looking both ways before crossing, crossing with the lights, not getting into cars with strangers, staying on sidewalks or walking against traffic, etc.
• Either escort your children or make sure they travel in groups of three or more.
• Give them flashlight and an emergency cell phone, if you can.
• If you’re not going with them, map their route for them. Ask them to call if they plan on deviating from the map.
• Advise them to not eat anything while out. While tampering is rare, it’s better to be safe than sorry. Have a fun dinner before they go and they’ll be less likely to eat while out.

YOUR House

• Remove things that might cause someone to trip, including wet leaves and other slippery things
• Turn on outdoor lights and replace burnt out bulbs.
• Make sure any open flame-like candles and jack-0-lanterns are well away from walking paths. Let’s not lights any costumes on fire! Battery powered items are preferable
• Control your animals..for their safety and the safety of the kids. Pets can become unexpectedly frightened and “defend” themselves as a natural reaction.
• Consider alternative to candy for teats. Try fruit rolls, mini boxes of raisins, popcorn packets than can be prepared later. Even non-food treats the kids can use.

There’s a ton of information on the web about Halloween safety. Search for Halloween Safety or check these sites out…

www.halloween-safety.com

www.caringforkids.cps.ca

www.sosnet.com/safety/hallowween.tip.html

FREE Halloween bags!

Visit the Gannon Insurance office and get free Halloween bags for your little ones. The bags include a coloring book, crayons and some treats!

Thanks very much for your business. We appreciate it!

Hitting deer is part of where we live. There are lots of roads, lots of cars on those roads and lots of deer crossing those roads. Car/deer collisions are inevitable.

A deer can cause a lot of damage to a car. Sometimes the driver or passengers get injured, but its rare. Even rarer still are serious injuries (for humans, that is) resulting from a deer hit. Where things get bad for the humans is when they swerve to miss a deer and instead find trees, embankments, bridge abutments and other cars.

So here are some tips for safe travels during our fall deer season.

Tips To Keep You And Your Loved Ones Safe

• Slow down. That’s pretty simple and always a good idea. Going 50-55 mph on a back road with a 35 mph limit is a recipe for deer disaster.
• Be extra alert during the fall. This is when deer are most active. It’s rut season, and they’re all running around with their hormones out of control.
• When you see one, assume there’s more! When that deer crosses the road 150 yards ahead of you, it’s likely her buddies are waiting in the wings. Slow down. Look carefully and proceed cautiously. AND put on your 4-way flashers! Even worse than hitting a deer is getting rear-ended by the guy coming up behind you.
• Brace yourselves animal-lovers…I love nature and animals as much as the next guy, but there’s a cold hard fact to face here. You, your passengers and other drivers are MUCH more likely to be seriously hurt, or even killed, when you swerve to miss the deer. I know it’s an eye-blink reaction to swerve. I’ve been there. But try not to.
• What should you do? Apply your brakes, keep the wheel straight and keep your car under control. Will you hit the deer? Maybe. But trading your life for its life, though unfortunate for the deer, seems a justifiable trade-off to me. Will you feel bad hitting and even killing the deer? Probably. But it won’t compare to hurting or killing another person instead.
• Did I mention…slow down! Low speeds allow you shorter braking distances. Maybe you can keep your car under control and NOT hit the deer, too.

“Is There An Impact On My Policy?”

In addition to these safety tips, keep in mind that hitting an animal is considered a “comprehensive” claim on your auto policy. It has no impact on your continued eligibility for insurance.

But, if you miss the deer and wreck your car, that goes on your record as an at-fault accident – affecting your price and eligibility for insurance. (I know that doesn’t seem fair, but don’t shoot the messenger. I’m just letting you know how it works.)

Why? Because, unfortunately, people lie – especially to insurance companies. When someone wrecks their car and says, “I had to swerve to miss a deer”, the adjuster has no way to verify the truth of it. If insurance companies accepted everybody at their word, suddenly every accident that ever occurred would be met with the explanation, “I had to swerve to miss a deer”!

Unfortunately, the few dishonest people penalize the honest majority. Such is life. So, if you miss the deer, but hit something else, it’s an at-fault accident as if the deer had never been there. (And sometimes it never was!)

Finally, people ask, “What if I hit the deer AND wreck my car?” Answer: That’s a comprehensive claim – NOT an at-fault accident.

Be careful out there. Watch out for the deer. You’ll see more and more in the coming months. Be cautious behind the wheel, and have a beautiful and safe fall season. Go Penn State!

July-August 2010 Newsletter

Well, our policy is pretty simple. We don’t release your information to anyone without your permission. So, in such a case, we’ll call you to make sure it’s OK. Why?

First, there are privacy laws – the Graham-Leach-Bliley Act of 1999 for one, and the Pennsylvania Information Security Program Regulation for another.

Now, in all honesty, I haven’t read either of these laws word for word. I leave that to the attorneys. But I know what they say … we are legally bound to protect your information from all unauthorized access, period. I and my staff take that responsibility very seriously.

Second, identity theft is one of the fastest growing crimes in America, perhaps the world. I’m not going to release information about you to someone else just because they call and ask for it! It doesn’t matter if they claim to be a family member, a mortgage company, a bank, a car dealer, another insurance agent … or a garage owner. For all we know, the person on the other end of the phone is a criminal. It’s unlikely, sure. But I’m not going to be the one who takes that chance, when all it takes is a simple phone call to you to make sure.

Here are only some of the other ways we protect your privacy …

• We have a written Information Security Program in compliance with state law. All employees are required to read, understand and sign off on their responsibilities for protecting your information.
• We maintain the most modern computer firewalls to stop hackers from getting into the system. PLUS … we have a consultant try to hack in to ensure the firewalls are working!
• All documents – with as little as just your name on them – get cross-cut shredded and turned into confetti!
• And, going back to the beginning of my story … we don’t release your information to anyone without your permission.

Well, this garage owner was beside himself. But don’t worry! We don’t let anyone bully us into violating your privacy. We simply call you and get your permission. Almost every one of our clients thanks us for contacting them first. They appreciate us protecting their information.

Can it be a small hassle sometimes? It can be. So, here are some tips to help you avoid the hassle…

1. Whenever possible, give current documents to third parties, so they have no need to contact us.
2. If that’s not possible, give us a quick call or e-mail in advance and let us know who you’re dealing with. That way, we can help them immediately when they contact us. This is especially important when buying a new car!
3. Make sure we have your current phone numbers, so we can get your permission pronto when needed.

Privacy laws are in place to protect YOU. Yes, sometimes they get in the way of a hassle-free life. Unfortunately, we can’t have it both ways. So, rest assured we place the privacy of your information first. The hassle of a 30-second phone call today far outweighs a stolen identity. I hope you agree.

Thanks for your business!

Springtime means thunderstorms and high, gusty winds. Sometimes those winds bring down trees. And sometimes those trees land on your stuff!

The damages caused by such an accident are covered under your home policy – which is nice. However, your deductible applies, and that means money out of your pocket. Plus, it puts a claim on your record, which could affect your future rates and eligibility for insurance.

With that in mind, what if your neighbor’s tree falls on your property? It doesn’t seem fair that you should put a claim on your policy and pay your deductible out of pocket, does it? After all, it’s HIS tree!

Here’s a phone call we’ve had many times with our clients… “Hey, my neighbor’s tree fell on my property. He’s responsible for that, right? The unfortunate answer…probably not.

Warning: Insurance Content

Generally speaking, responsibility for damages in an insurance claim comes down to a question of negligence. The negligent party is responsible for what happened.

For example, the guy who runs a red light and causes a car accident is responsible for the damages, because he was negligent when he ignored the traffic signal. In real life it may not be that black and white, but you get the idea.

But what about when the wind blows a tree over? Things are definitely not cut and dry now! (Leaf pun intended!) Think about this…

There’s a tree standing in your neighbor’s yard. Here comes the wind, and now the tree is laying in your yard. Your fence is broken, and your shed is smashed. Can your neighbor, or anyone else, be found negligent on behalf of the wind?

Live Trees Versus Dead Trees

An argument can be made – and has been made many, many times – that there’s a difference between live trees and dead trees. No, not the difference of one being alive and the other not, smarty pants. I mean the potential for negligence to apply differently depending on the tree’s health.

Clearly, if a live, healthy tree falls over, who could have seen that coming? But what about a dead tree? What about one that’s been dead for quite a while now? Every day that tree remains upright it poses a greater and greater threat of falling over. Surely, the tree’s owner can see THAT coming, right? Wouldn’t a conscientious person cut that tree down to remove the hazard? And, if they don’t cut it down, is that negligence? Are they responsible for the damages that tree causes when it falls?

I’d love to answer with a resounding, YES! Because it’s common sense, isn’t it? The dead tree poses a hazard. If the property owner doesn’t cut it down they are negligent in their “non-action”, right?

Common Sense And The Law Don’t Mix

Unfortunately, it’s not that simple for the courts or for insurance companies. Based on past court decisions, the insurance company knows they can’t win that argument. Your neighbor won’t be found negligent for a tree that falls over, even a dead one. Even though it makes perfect sense to the rest of us, the courts don’t agree.

But wait … there’s something you CAN do to protect yourself.

What To Do About Dead Trees That Threaten Your Property

First, if you’re the owner of the dead tree – or any tree that’s unstable in any way – cut it down. Don’t wait any longer. Get it taken care of. A dead or unstable tree is a hazard to both property and people. The last thing any of us wants is someone to be badly injured, or even killed, by a falling tree … especially a tree that should have been removed long ago.

Second, if the offending tree is in your neighbor’s yard, the claims department recommends the following.

Start with the neighborly approach. Talk to your neighbor and explain your concerns. See what they say. Most people are reasonable, and they may get on it right away. Problem solved. If you’re so inclined, you may even want to chip in on the removal cost.

If talk gets you nowhere, put it in writing. Put your concerns in a letter, keep a copy for your records and give it to your neighbor. If something does happen, you have proof that you pointed out the hazard to your neighbor. And since your neighbor refused to act on that knowledge, it’s much more likely he’ll be considered negligent, and, therefore, be responsible for the damages to your property.

If you’re really motivated, you can also contact your municipal authorities. You may be able to convince them that the hazard the tree creates is so dangerous that they will require your neighbor to have it removed. Nobody likes strained relationships with their neighbors. But nobody wants to be crushed by a falling tree, either. Which is worse?

What About Live Trees?

Forget about live trees. You’ll never convince a court that your neighbor was negligent by not cutting down a live, healthy tree.

If a live tree falls from your neighbor’s property onto yours, just accept it as an act of nature. Stuff happens. Yes, it stinks, but it’s nobody’s fault. And the good news is your home insurance covers it.

Why Won’t The Insurance Company Cut Down My Tree For Me?

You can’t have a discussion about falling or hazardous trees without somebody smugly bringing up this point. It sounds like this…

“If this tree falls it will cause a lot of damage, say $20,000 worth. It will only cost $1,000 to cut it down. I’d think the insurance company would rather spend $1,000 to prevent the accident than spend $20,000 after it happens. Hah!” Yeah. Nice try.

Your insurance protects you against sudden and unforeseen events. That’s the nature of insurance. You are responsible for maintenance of your property. If you buy the tree argument above then why wouldn’t the insurance company also replace the brakes on my car for me before I rear-end someone? Or replace my bald tires that are guaranteed to cause me to slide in the next rain storm? Or fix the leak in my upstairs toilet before the pipe bursts and really causes some damage? Where would you draw the line? And who would make that decision? Insurance companies drew the line long ago. And they won’t be budging on it anytime soon! You are responsible for maintenance. They will pay when accidents happen.

In summary, remove dead trees promptly. Compel your neighbor to do the same. Put it in writing if you have to, and keep a copy just in case his tree winds up in your yard.

Two key issues are the risks of meeting up with unsavory types through social media like Facebook and in chat rooms, and the possibility of your kids encountering pornography and other unsuitable material. There’s also the danger that they might unwittingly download malware onto your PC, with the attendant risk of theft of sensitive information.

The most important thing you can do to prevent this is to talk to your kids about the dangers, especially of assuming people they “meet” and sites they visit are who or what they say they are. Never allow them to physically meet anyone unless you’re with them and don’t allow them to download anything without your consent.

These days, you can buy software that will both monitor everything they do and restrict the sites they can visit. To them, such measures probably sound draconian, but that’s a reflection of their trust and innocence. You know better.