Why Buying Insurance Online is A Bad Idea

It seems like very day, we see tons of TV ads for auto insurance companies. This either can involve a cartoon, a little lizard, or even a perky little brunette. All of them advertise how you can buy a policy online. They advertise how you can get discounts for buying online. They advertise it like gold and glitter. In this blog, I am gonna go past all the excitement about buying a policy online, and actually tell you why its a bad idea.

  • The information they ask can be very hard to understand. Most of the time consumers enter in information incorrectly, which will give you an inaccurate quote.
  • Most companies, shows the lowest price. This usually means the lowest coverages.
  • Most quotes you get off the internet, are the bare minimum liability coverages. This is bad, because if you get in a bad enough accident, you personal assets could be at stake.
  • Most companies don’t include coverages such as uninsured motorists property damage, and also uninsured or under insured motorists coverage. With a lot of drivers uninsured or under insured, this coverage is a must.
  • If you have a newer car and has a lien or lease on it and its needs comp and collision coverage, a computer can’t understand this.
  • An online quoting system might not know if towing and rental car reimbursement is something you should or shouldn’t have on your policy.
  • Most consumers don’t understand what some coverages mean and what it does. When a consumer doesn’t understand a coverage, they don’t buy it. This could be costly, because a consumer might need it.

I could continue on with many points, but in conclusion, a computer can’t think, and counsel you into the right policy. Only a human can. When it comes to insurance, every person is different in needs. Only an experienced  broker like us, can give you advice and steer you in the right direction. A computer can’t give you advice on how much coverage you should buy, if its ideal to carry a 1000 dollar deductible or a 500 dollar deductible. It can”t answer questions such as, what if I drive my friends car, will my policy follow me to that policy?

Please feel free to leave a comment. We can write insurance in 45 states.


Understanding An Indirect Loss On An Insurance Policy

When a loss occurs, and a claim is filed, the is more underneath the problem than first understood. That loss could be a pipe breaking in your house, a fire in the kitchen or any other type of occurrence. During this time all that is on the policyholders mind, is the loss at hand. But there is another loss creeping up on them, most of the time realizing it at the last second.  This is known as an indirect loss.

What is an indirect loss?

An indirect loss is a loss that occurs because of another loss.  It is an underlying loss that takes place because of a larger loss.   On a homeowners, loss of use of a home would be an indirect loss.    An example of this is, Johnny’s house catches on fire, because of the smoke, Johnny cannot stay in the house.  Johnny has to rent a hotel room because of the smoke in his home.  This is an indirect loss.

An example on an auto insurance policy is when Judy crashes her car and has to have it repaired.  She rents an auto to use while her car is being repaired because she doesn’t have a car to drive back and forth to work.   The expense of the rental car is an indirect loss.

An example of an indirect loss for a business is lack of business income.  Because of a loss, the business can no longer gain income and therefore profits are hurt.

In conclusion, an indirect loss comes from a bigger loss.


Personal Articles Floater(PAF), Insuring Individual Valuble Items

A Lot of us when setting up homeowners insurance, forget a very important item on our policies. Personal article floater insurance. A lot of us have very valuable items, that we don’t insure. One of these very obvious items is mostly you or your spouses wedding ring.

In this blog, I am going to cover what a personal article floater insurance policy is, and why you might be cutting yourself by not insuring something important.


What is a personal article floater?

Since valuable things such as jewelry are limited on the amount of coverage a home owners policy’s will cover, the industry offers this policy. The industry offers policies for jewelery, guns, coins, stamps, golf clubs camera’s and other items. This all depends on what the insurance company offers. The policy insures the individual item. Both the insured and insurer agree on insuring at a certain amount. An appraisal or some sort of proof of value is required. Sometimes a deductilbe does apply, at usually a very low level.  The most common personal article floater policies are for jewelry, mostly wedding rings.

Is this policy idealistic for me?

This all depends on the client. If you have a valuable wedding ring worth 50 thousand dollars, yes you should insure it. That alone is a small investment and fortune. Sometimes people decide its idealistic to self insure. I know a couple of gun collectors who don’t insure there guns. Th reason is so much cost over time. Sometimes you are better off getting a really good safe, and locking up your valuables in there, or even getting a safety deposit box.


A Nice Homeowners Insurance Inventory Check List- Courtesy Colorado DORA Division Of Insurance

It is always good to take time and produce an inventory of your homes valuables and property. Here is a link to the Colorado Division of Insurance, courtesy inventory checklist. Please keep in mind that it is always a good idea, to store these documents externally. I would recommend Google Documents.

If you have any questions, feel free to contact us. We can write insurance in 45 states. Or Leave A Comment.

Thrift Retail Store Insurance | Get A Free Business Insurance Quote

 Today with the economy being what it is, more and more people are turning to thrift stores to buy clothing and goods for their families.  Thrift stores are finding themselves to be very busy with walk-ins daily averaging much more than two years ago.  That is why having an excellent insurance policy is a must.

At our National Independent Insurance Agency, we will take the time, to work with a business to accommodate its needs. Our agents are fully licensed and knowledgeable to create a comprehensive policy that is best for the client.

Our Business Owners Policy

Our policies are superior in industry standard. We believe cutting corners on an insurance policy, could potentially hurt a business owner if a claim were to occur. We provide superior coverage, all at a competitive rate. Here is a basic break down of coverages we offer.

  • General Liability
  • Building
  • Business Property and Inventory
  • Crime Coverage
  • Employee Dishonesty
  • Loss Of Business Income
  • Excess/Umbrella Liability
  • Workman’s Compensation
  • Commercial Auto Insurance
  • Equipment Break Down
  • Outdoor Signs
  • Accounts Receivable
  • Newly Acquired Building
  • and more!

For more details on our Business Owners Policies, Please Click Here.

Our Companies Claims Process Is Excellent

We only write insurance with companies that have an excellent claims process. A claim can be complicated, but our companies will treat you fair and keep the process as simple as possible.

Personalized Service

Our agency is family based and understands insurance. You will work one-one-one with an experienced agent who will find a policy that best fits your business needs. We believe in “good old-fashioned customer service”.

Get A Business Insurance Quote

Please contact us during normal business hours at 1-888-270-0995. Or use our quick form and we will contact you right away. You will work with a licensed experienced agent, who will work with you, to get a free competitive quote.

Will my home insurance policy pay to fix a broken sewer line?

(old broken sewer line, considered to be a maintenance issue)

It s always a devastating experience to have a sewer break take place with your home.  It is not only inconvenient, troublesome, but expensive.  As an insurance agent I get a lot of questions, this is one of the most common questions I get.  Not only is this true of homeowners, it is true with commercial lines as well.  “Will my insurance policy pay for a broken sewer line?”  To give a short answer to this questions, no and yes.

Sewer backup coverage only covers the damage due to a sewer backing up.  For example, the pipe clogs towards the middle or towards the street on your sewer line, causing sewage and water to back up in your house and small flooding, the insurance will pay for the damage caused from the sewer backup.

What decides if a insurance company will pay for a broken sewer line, all depends on the condition of the pipe and how old it is.  If the sewer line breaks due to it being old, and it needs to be replaced, then the insurance company is not going to pay out anything.  Insurance companies don’t pay for maintenance, they only pay for accidental and sudden losses.

The industry rarely pays out on this type of incident. The only time they were to possibly consider, is if its not due to a warranty issue, and the line must be up to date and new. Even then, there is more than likely no coverage. For Example: an insurance company will not pay out on a 50 year old clay line, that broke due to natural wear and tear and its at the end of its life use.

Please contact us with any questions, we can write insurance in 45 states.  Feel free to leave comments.

Why State Minimum Limits For Auto Insurance, Is Not A Good Idea…

In my previous blog, I discussed what is required by law in Colorado, for car insurance limits. In this blog, I am going to explain why the state minimum limits are not a good idea to carry. Not only does this information pertain to Colorado consumers, it applies to all consumers in the United States.

The reason why State Minimum limits are a bad idea, is because the policy seriously lacks coverage. In Colorado those limits are 25/50/15. This means your insurance has to pay out a maximum to a potential 3rd party of, $25,000 per person bodily injury, $50,000 total accident bodily injury, and $15,000 dollar property damage.

To put this short, if you got into a bad enough at fault accident, your limits most likely won’t be enough. Chances are the other person is going to have more than 25,000 dollars in hospital bills, and if there was more than one person in the vehicle, chances are $50,000 isn’t going to be enough. On top of that, most cars cost more than $15,000 dollars. If  this was you in the at fault accident, chances are after you policy limits are exhausted, the 3rd party will personally come after you.

The reason that the state laws makes the limits so low, is to make sure car insurance costs stay low enough, so people can afford it. Having something is always better than nothing, especially is this situation.

How you can protect yourself from an under insured motorists, is by making sure you have sufficient limits on you auto insurance policy under insured motorists coverage.

Please contact us with any questions, we can write in 45 states.


What Is Medical Payments Coverage, On A Car Insurance Policy?

As we all know vehicle insurance can be very complicated at times. So I am going to go over medical payments coverage. Or also known in other states other than Colorado, personal injury protection. This coverage only applies to states that use an at-fault tort system.

What is Medical Payments?

Medical payments coverage pays for bodily injury, and other expenses for the at-fault party in an accident. Coverage is usually available in the following increments, per person in the at fault vehicle. $5,000,  $10,000, $25,000, $50,000 and sometimes as high as 100 thousand.  This will cover such things as medical bills, ambulance ride and most other expenses. There is no deductilbe. Keep in mind this coverage is only for when you are in a at fault accident.

Why It Is Good To Carry Medical Payments?

There are always two scenario’s, when medical payments is good to have on your policy. For one you might have a high deductilbe on your health insurance. Most of the time, medical payments coverage will pick up all out of pocket expenses in your health insurance. So for example if you have a 5,000 health insurance dollar deductible, and have $5000 in med pay. Chances are you will not have to pay anything out of pocket. The other scenario is if you don’t have heath insurance. At this point I would recommend buying a much medical payments coverage as you can. At the very least, $5,000 in coverage.

How Much Does Medical Payments Coverage Cost?

Med pay is usually a very inexpensive coverage on your policy. We have seen at as low as $15 dollars every 6 months. This all really depends on you driving record, past accidents, and credit. Other factors come in to play also. For more information on this coverage feel free to contact us. We can write insurance in 45 states.

As A Landlord, Should I Require Tenant’s To Carry Renter’s Insurance?

Having an investment property can be a great return on investment. But on the contrary, you do have the management aspect. This can include maintenance, leases, insurance and etc. One of them being your insurance policy. In this blog were going to cover why your tenants should have renter’s insurance, or better known as a homeowners policy number 4.  If you want to know more about landlord insurance, please visit this link.

What Is Renters Or Tenants Insurance or Known As A Ho-4?

A HO-4 policy, also known as renter’s insurance, covers only the tenants interest. This includes the following coverage,

  • Personal Property
  • Medical Payments
  • Loss Of Use
  • Personal Liability
  • Other Coverages are available

So Why Should I As Landlord, Require  My Tenants to have Tenants Insurance?

To avoid any legal problems or losses from your tenant.  A Renters Policy has a personal liability built in.  If your renter were to encounter any legal problems or losses, she/he is covered.  Here are some examples of what could happen.

-A renter invites a guest over and they slip and fall on the premises.

-They could accidentally start a fire in the premises.

With renters insurance, any type of law suits, or premises losses are going to fall on their policy. If your renter does not have insurance, you as a landlord are going to have to use your own policy.  Requiring your renter to have insurance can avoid huge headaches in the event of a loss or legal problems. The last thing you need to deal with as a landlord is getting sued for one of your tenant’s actions. In additon if a loss does occur on your policy, chances are your premium is going to increase on next renewal.

How much personal liability coverage should your renter have?

All you should be worry about on your tenant’s policy is their personal liability.  I would recommend a $300,000 liability requirement and it costs the tenant $15.00 – $30.00 per year extra.  This for the most part will cover most law suits that a tenant could encounter.  This for the most part covers the average cost of a dwelling or condo if were to completely burn to the ground.  If you feel that this will not be sufficient, your renter could go with a $500,000 personal liability or higher.

How much does Renters Insurance cost my tenant? 

Depending on how much coverage the tenant decides to go with besides your liability requirements, it can run as low as $80 per year all the way up to $300.  A lot of this depends upon the renters credit, previous losses, and how much other coverage they decide to buy and etc.

How do I get Proof Insurance As A Landlord?

You should get a Certificate of Insurance or Coverage Confirmation from the company or agent writing the insurance policy. I would also recommend getting listed as an additional insured on the policy if possible. That way you are always getting notified on any major policy changes, but mostly if the policy is being cancelled for any reason. Just like the insured, you get a policy packet  in the mail with detailed coverages, and notifications just like the tenant would.

Please contact us with any questions or for any quote requests for both Landlords and Tenants.

What Type Of Insurance Policy Do I Need For A Rental Property?

Rental property’s can provide great residual incomes, and right now with the rental market in demand, a lot of people are putting their house’s up for rent or buying investment properties. Before you do this, your insurance policy must be written correctly, or else you could have some major gaps in coverage.

First of all lest highlight some of the most common types of properties.

  • Apartment Building
  • Condo
  • Dwelling

Apartment Building Insurance

This policy is designed for a building that houses multiple units, usually more than 3.  The policy includes building coverage, a general liability, business personal property coverage, loss of use, crime coverage and more.  This policy is strictly designed for apartments.

We usually write these policies through Travelers, Philadelphia or Middle Oak.

Landlord Condo Insurance

This policy is built for someone who owns a condominium and rents it out. It includes interior dwelling coverage, loss of rent, medical payments, and landlord liability. You can add things such as extended liability coverage, and loss assessment. This policy is usually written under Dwelling Fire Policy Form 8.

Landlord Dwelling Insurance

Investment houses are either written under a DP-1 or a DP-3. Or known as a dwelling fire policy. Most policies are written under a dp-3, because it gives you replacement cost coverage on the dwelling, which is better than the dp-1 actual cash value coverage on a dwelling. Always make sure you have the following coverages on your dwelling rental property.

  • replacement cost on dwelling(dp-3)
  • extended dwelling coverage, at least 120 percent
  • landlord business property(stove top, dishwasher, fridge, washer dryer, etc)
  • other structure coverage
  • loss of use, for at least 12 months
  • landlord liability
  • sewer back up
  • Ordinance & Code Coverage

If you have any questions or want a quote contact us.