We are coming to the conclusion of a very difficult year as insurance professionals. At the beginning of the year I expressed my belief about the changing insurance market approaching in 2002. Even with those comments, I was obviously not prepared for the extent of the increase in pricing and restrictions in the availability of coverage that has taken place during the year. If you are a business owner and your cost of insurance has increased by 25%, feel fortunate. Homeowner's insurance customers have seen their prices increase by at least 10% and much more in many cases. Automobile Insurance has also increased for the first time in many years. Why has insurance increased so dramatically now after many years of premiums being stable or even decreasing? Rates are rising for some of the following reasons: 1. Insurance Companies count on investment returns such as increasing stock market prices to offset claims costs. Since there have not been any positive returns the last couple of years, insurance companies are increasing the prices they charge to make up for these lack of returns. 2. In the Homeowners Insurance and Apartment Insurance market the cost of water damage claims has risen dramatically. "MOLD" is the reason for these claims increasing. While mold has been around since the beginning of time, lawyers and the media have decided that mold is a tremendous health hazard. The cost of water damage claims has increased from an average of $2,000 per claim to over $10,000. Since water damage claims account for 35% of all property claims you can see the effect on the insurance companies profitability. 3. The frequency of claims is rising. While this is a cyclical statistic, unfortunately we are seeing an increased number of claims. With the price of insurance increasing and the availability decreasing, we are challenged to provide you with the best product and price available. Our staff has worked diligently offering alternatives to the high cost of insurance. I am very proud of the level of service we can continue to offer during these times. We seem to be analyzing virtually every renewal for alternative options to bring the cost of insurance lower. Suggestions that we can offer include increasing deductibles, changing insurance carriers, and removing coverages that do not make sense at this time. In these difficult economic times we have increased the number of employees to serve your insurance needs. In fact we have increased the number of employees by 10% over the past 12 months. We feel it is our responsibility to provide you with the highest level of service we can. Everyone at Tri County Insurance Calabasas wishes you a healthy and happy holiday season. Here's to a great 2003 and more stability in the insurance marketplace.
Floodwaters can change a family's fortunes overnight. People move to hillside areas or lowlands around a stream, lake or ocean for many reasons. Most of them give no thoughts to the extreme devastation and financial hardship that can hit them if the weather takes an unexpected turn. It's a tragedy made worse because the flooding losses often are not insured. Homeowner's policies issued by most insurance companies do not insure against surface water runoff on hillsides or flooding caused by rising rivers, lakes or oceans. Floods are excluded to keep rates as low as possible for the great majority of policyholders who do not need flood insurance. The solution for persons living on hillsides or in flood zone lowlands is special coverage underwritten by the National Flood Insurance Program (NFIP). Now is the time to assess your needs, if any. Once the rains start it is too late. Coverage cannot be provided until your application and premium deposit is accepted by the NFIP. For more information please contact your service representative. The above information applies to Dwelling structures and personal belongings within those structures. The land, outbuildings, fences and walls cannot be insured. Automobiles that are insured for Other Than Collision coverage (Comprehensive) are insured against flood damage.
Mechanical breakdown - Firsthand testimonial. There I was in the new car showroom sweating out the details in financing and which car to purchase. The finance manager in the auto showroom was selling me several options for the car, but should I purchase the extended insurance warranty? I decided not to purchase it from the dealer. Knowing that American Mercury offers Mechanical Breakdown coverage, I wanted to check it out through our insurance agency through where I work and insure my car. When I returned to the Insurance office, I reviewed the cost and benefits of purchasing the Mechanical Breakdown Insurance policy through American Mercury. I noticed the added benefit of the extras offered through the policy, such as vehicle rental, towing service, Trip Interruption and tire protection. These are available even while the original manufactures warranty is still in force!I purchased the 5 year 80,000 miles coverage, which extends coverage from the first day of service of my vehicle. It was several hundred dollars less than the original offered at the dealership. I had payment options and I could even make payment through my credit card. It was easy! Well, my investment paid off! At just 37,000 miles, just 1,000 miles after my manufacturer's warranty expired, my starter failed. The dealer called me with the bad news that the starter needed replacing and my warranty expired. I explained that I had a Mechanical Breakdown policy with American Mercury. The dealer called American Mercury directly and was paid with a credit card over the telephone. I paid my low $25 deductible and drove my car off the lot with a brand new starter and no hassles. Later, my smart decision paid off again. At just 46,000 miles, again my original warranty expired, the transmission failed and required replacement at $2,300! The transmission mechanic, one I chose, called American Mercury and again they paid for the service over the telephone after the mechanic faxed over his repair estimate. I called American Mercury to confirm the conversation with the mechanic and they even advised me of my $175 vehicle rental benefit available. This was a great added extra since my car was out of service for over 3 days! Consequently, the Mechanical Breakdown Insurance policy with American Mercury has been a great investment. I keep up with my manufactures requested maintenance schedule, (a requirement of American Mercury), and I am aware that I pay for incidentals such as normal maintenance, service items, fluids and etc. The people at American Mercury have always been very helpful and made the inconvenience of auto repair easier for me. When my next purchase for a vehicle comes, I am sure to purchase the American Mercury Insurance policy. Be sure to request a quote when you advise your CSR at Tri County Insurance of your vehicle purchase.
There is a 75% chance that if your home burns down tomorrow, your insurance would not be adequate to replace the structure. A nationwide survey performed by Marshall & Swift / Boeckh of Princeton, NJ showed that 3 of every 4 homeowners are underinsured. Marshall & Swift / Boeckh is a company that specializes in estimating construction costs throughout the nation. This point was driven home again this year by the Colorado wildfires.
Term life insurance has always provided maximum protection for the lowest outlay of premiums. Now you can obtain this coverage and receive 100% of all premiums paid if you survive the period of coverage you select (15,20 or 30 years). Call Sandi Sanders or Glen Futterman for a complimentary quote. Here are some reasons given for the underinsured amounts: 1.Insurance policies cover less than in the past. In the past five years, the vast majority of insurers have done away with, or radically modified, their guaranteed replacement policies. Whereas once your company would rebuild your home no matter the cost, today most insurers cap how much they will pay above your policy limits. 2.Construction costs are on the rise. The cost of rebuilding a home has risen about 3% a year on average in the past decade according to the director of research for the National Association of Home Builders. 3.Homeowners are remodeling like crazy. Americans spent $180 billion last year updating their homes, often boosting the value of their homes in the process. An estimated 75% of remodels fail to notify their insurance agents of the remodel, leaving them woefully underinsured. It is important for a homeowner to know the replacement value of their home. Although Tri County constantly asks you, its client, about changes and additions you have made to your homes, it is important for you to let us know when you have made those changes. Here are some steps to help tell you if you are adequately insured: 1. Read your policy. Most homeowners policies are easy to read even if the reading is not exciting. You should be able to get a good idea of what is covered and what is not. If you have any questions, call us. 2. Insure the house, not the land - or the mortgage. The price you paid for your home, the amount it is worth now and the mortgage amount you owe are irrelevant when it comes to determine the cost of rebuilding your home. Call a local contractor and ask what the current cost of rebuilding your home would be. After all if your home burns to the ground, a contractor will be involved in its rebuilding. 3. Consider adding upgrade coverage. The older your home, the more it will cost to bring it up to current codes - and those costs typically are not covered in the standard replacement policy you may now have. Upgrade coverage is a relatively inexpensive addition to your policy that could pay off should you ever face disaster. And, after all, disaster is the reason you are insuring your home in the first place. Make sure you have enough insurance so any disaster will not compound your tragedy by not having enough money to rebuild your home.
Michelle Manthei - A licensed agent since 1987 and a valued part of our staff since January 2001, Michelle has an excellent sense of humor. She has developed many business relationships with her clients (and friendships as well). She is married and has one very active, young son. Sharon Eskra - Has been in the insurance business since 1972 when she was a claims adjuster for Aetna in Pennsylvania. In 1976, after graduating from Wilkes College with a Bachelor of Science degree, she moved to California and went to work for various Independent Insurance Agencies. Sharon has been a valued addition to our staff since the beginning of 2002.
Here are excerpts taken from a business article published in the Apartment Owners Association magazine which explore 4 reasons for the current explosion in insurance rates, 3 impacts we all are facing, and finally a "financial stability checklist". Four (4) reasons why insurance rates are rising so rapidly: 1. Insurance companies have been losing money on their policies for years. During the 1990's insurance companies were paying out over $1.12 for every $1.00 they collected in premium. 2. Before 2002 they were able to make up the losses and then some through investment income. This came to a screeching halt in the year 2000 with the advent of the bear market. 3. Tragedy struck America in September 2001. This has greatly impacted the insurance marketplace, especially in the field of reinsurance. Greater rates there lead to increased premiums for every casualty policy sold in the marketplace. 4. The Law of Supply & Demand is coming into play. Insurance needs continue on an increasing scale, however because of the disaster of 9/11 and the ongoing economic slowdown there is less capacity in the insurance marketplace. Therefore another pressure to increase premiums. Three (3) direct impacts on you, your family and your business: 1. The price you will be paying for insurance is going up. Cost of Business Insurance will see a much greater increase than personal policies, but all will be rising. 2. Some businesses will be hard pressed to get insurance at any price. 3. Obtaining policies will take longer. Companies are requiring more detailed applications and are inspecting more premises to make sure proper safeguards are maintained. Here is a FINANCIAL STABILITY CHECKLIST for you to study and use: 1. If practical, use only one insurance agent for all your insurance (personal and business). 2. Make sure the agent you use understands your business. 3. Your agent should have access to more than one insurance market. 4. Cooperate fully with your agent. The companies are requiring much more detail this year. If your agent calls you with questions, get the answers to him/her as quickly as possible. 5. Know the company you are insured with, make sure they are financially stable. 6. Your best long-term interest is to place your loyalty with one agency. Trust them to find the best policies for you. Jumping from agency to agency could prove to be disastrous. 7. Comply with company safety recommendations and voluntarily take steps to make sure your business has no hazardous conditions. Make a list of the actions you have taken to reduce your risk, they will come in handy as the time to renew your policies approaches. 8. Minimize your claims. You should handle your own small claims, use your insurance for the claims that can be disastrous. 9. Keep your agent informed whenever you have changed aspects of your business. This will make sure you are properly insured at all times. 10. Increase your deductibles. This will save you premium dollars. There have been ups and downs in the insurance industry in years past. The current crisis will not last forever. By working with your agent, your premiums should quickly stabilize. This agency is constantly monitoring the marketplace and aligning ourselves with the best companies available. Take advantage of us, we are always willing to meet and discuss any of your concerns.
Long-term-care insurance offers coverage to pay all or some of the expenses that may be incurred if someone needs nursing home care, adult day care and/or home health care. The benefits are usually in the form of a daily benefit (e.g. $100/day) with the option of choosing benefits lasting a few years or as much as a lifetime. For more information, contact Glen or Sandi. Once you are disabled it cannot be obtained.
