Credit based Insurance scores

How does Credit Affect Your Insurance Rates?

   Your credit score is run any time you shop for a home or auto loan, rent a home or apt. And your credit is run when you shop for Insurance.  Keep in mind, your "Insurance score" is different than your "Credit score". Your credit score will be based on your credit history and a few other factors, like your income. Insurance carriers will take your credit information and put it into a model with many other factors, like payment history, bankruptcies, collections and the amount of credit you have incurred.  For example if you have never been late on your mortgage payment, you have a better insurance score than someone who pays late. If you have "maxed out" your credit cards, you will have a lower insurance score than someone who pays them off each month.
  Your credit score can tell someone how responsible you are.  Studies at both the federal and state level, have show your credit score correlates with the probability of an Insurance loss. The higher the Insurance score, the lower the risk, so the lower the rates. Now, other factors are included in Insurance rates- where you live, are you married, your age, male or female. Insurance carriers have several rating "Tiers" customers are placed into based on the details of their lives. Then you factor in claims history. Then the type of car or the construction of the home. So many things affect your rates, but it does start with your Insurance score. 
Insurance scores do NOT consider the following in their assessment:
*Income                                       *Disability
*Ethnic Group                             *Nationality
*Religion
   Insurance carriers will use at least one of three credit bureaus to request your credit history:
*Experian
*TransUnion
*Equifax

You are entitled to one free credit report a year. Contact one of the above bureaus to get your report. You have the right to dispute any discrepancies. The bureau is required by law to correct any errors. If you are ever denied Insurance coverage, based on your credit information, you are entitled to a free report from the bureau that provided the information to the carrier.
   Bottom line, Yes- your credit can affect your insurance premiums. Just one more reason to pay bills on time and keep credit card balances low. You can fix your credit or you can build a good credit history from scratch.  
Your credit is important. Know what your score is and keep it high!

Personal property coverage

Protecting Grandma's China (and other knick knacks!)

It isn't as popular to pick out china patterns as it was when my parents were married. But many of us have inherited china, crystal and silver from our mothers and grandmothers. Is it covered in the case of a loss? That depends. If you have antique patterns, worth more than the everyday patterns of today, your policy may not cover the replacement. (Not that you can truly replace these family heirlooms.)
Most homeowner's policies will have an optional coverage called Scheduled Personal Property. If you have a single item/collection worth more than your coverage allows, you want to shedule the property out. For example- many policies will cover up to $2500 for a single piece of jewelry, or camera equipment. If you have an item/collection worth more than what is covered, you will be out of luck in the case of a loss. The policy will not pay more than the coverage calls for, regardless of the proof you may show. Ask your agent what your limits are. 
Scheduled Personal Property will offer additional types of coverage your basic Personal Property coverage might not. There is no deductible, and most will cover theft or loss of any kind. There are exclusions such as wear and tear and war. 
Other items to consider scheduling out would include:
* Engagement and wedding rings (any jewelry if a single piece is above the included limit)
* Coin collection 
* Gun collection 
* Electronics
* Camera equipment
* Furs (as politically incorrect as these are nowadays, there is still coverage)                               
To put a Scheduled Personal Property endorsement in place, you will need a certified appraisal, dated within the last 3 years. Pictures are a good idea as well.  This coverage is in place to make sure you are compensated for the Replacement Cost in the case of a loss. I know many things can't be "replaced" if lost or stolen,  but many things can be. 
This is what insurance is for. Use it!
Contact your Insurance agent to find out about this valuable coverage. 
Thanks for reading!

Holiday Safety

Celebrate Safely!

Next week is the 4th of July. The celebration of our county's Independence. Boy do we know how to celebrate this one!
There will be Backyard BBQs, Lakeside picnics, Beachfront bonfires. And Fireworks. Lots and lots of Fireworks.  
There is no end to the possibilities when we celebrate our Country! 
But with holiday fun can come liability and safety concerns. 
   How about that Backyard BBQ you are hosting? Are you a Master Griller? More importantly, are you a SAFE master griller? Check out this Grill tip sheet for safe grilling. Are you serving alcohol? If so, do you know how your guests are getting home? You can be held liable for a drunk driving accident if you knowingly served an already drunk person.  Think about asking someone to be a designated driver. Or just invite neighbors who will be walking home anyway. And don't forget the bug spray. They are brutal this time of year!
   How about going to the lake for that all day family picnic? Plan on having a few beers? Great! have a few- but do you know how you are getting home safely?  Have a contingency plan. Again- a designated driver will work well. Keep an eye on anyone swimming in the lake, especially kids. Do you know CPR? Maybe you should print out this 3-step CPR guide, just in case. Grill safely here too, and don't forget the bug spray. They are brutal this time of year!
   How about that Beach front bonfire? Is there a better way to spend the 4th? I think this would be my favorite way to celebrate. The waves, the sand, the horizon. Add in good friends and family and WOW!
Grilling safely will be important here also. If you are drinking, again- a contingency plan for getting home safely is a good idea. You may want to check out how to safely build a bonfire. Make sure you put it out entirely before you leave! And don't forget the bug spray. They are brutal this time of year!
   Then there are fireworks. I know so many people like to set their own fireworks off. My suggestion? Leave it to the experts! When I was young, one of my older brothers had a friend who set off a Roman Candle - right into his stomach! Talk about pain, not to mention scarring!

We live in a great country and we should celebrate the 4th of July in BOLD ways. 
But please celebrate SAFELY!

Swimming Pool Liability

Staying Afloat!

It's summer time! For those of you with backyard pools, it is a busy time. Neighbors and kids come out of the woodwork to befriend you! But are you protected against accidents in that refreshing pool?
   We have all heard the horror stories of children getting hurt, or drowning in pools. In most cases, there was adult supervision. But the unthinkable still happened. What about when teens or adults get a little careless and run (oh!) and slip and fall? concussions and broken bones are sure to result.
   Are you covered? Yes, if you have a good Homeowner's policy in place. Your Homeowner's policy should carry Personal Liability protection. You can get different amounts of protection for different pricing. I suggest you review your coverage immediately with your Insurance agent. (or my agency, if you don't like your current agent!) 
   Many carriers will not insure homes with pools that have slides or diving boards. I don't know of a carrier who will insure a pool owner who's pool isn't fenced. Statistics have shown the rate of accidents in homes with pools is very high. And these days, where there is an accident, a lawsuit is sure to follow. Your Liability coverage will protect you. It will cover claims or lawsuits against your for bodily injury caused by an accident on your property (in this case in your pool). 
   But you must have safety precautions in place. If there is negligence on your part, the claim can be denied and you would be responsible for the payment, not your insurance company. 
Common Pool Safety tips include:
* Children must be supervised at all times. Drowning can happen in a few seconds. 
*Before allowing anyone in the pool, make sure there are no objects in or around the pool that could hinder their safety. Look for fallen tree branches or pool toys.
*Keep electrical devices away from the edge of the pool. 
*Evacuate the pool at the first sign of a storm. (especially if there is lightning!)
*Know the experience level of your swimmers. Who may need special supervision, who is allowed out of the shallow end...
*Extra supervision should be given to swimmers who are diving- off the edge or a diving board.
Maintaining a safe pool area can save you money and, more importantly, anguish over an accident. 
  
 Sometimes I have customers who insist on cutting insurance costs by lowering their Liability coverage. If they have a pool, I won't do it. That $50 you may save in premium could cost you $100,000, $200,000 or even more if there is an accident in your pool. I also suggest looking into a Personal Umbrella Policy for homeowners with swimming pools. An umbrella policy is extra Liability above and beyond the Personal Liability of a Homeowner's policy.  Again, it may cost you a little more money, but it could save you so much more in the case of an accident. 
   Insurance is there to protect you when something terrible happens. Look at it as protecti on, not an expense. Make sure you have enough Liability protection so you can enjoy your pool this summer with a little less worry.

Wind/Hail Coverage

Don't Get Blown Away!

We have all seen the devastation to the communities hit by recent tornadoes.  We are certainly not strangers to these storms here in Texas.
But what  is a homeowner's recourse after a devastating storm? This is where your insurance should protect you. This is why you have been paying those premiums! So that you can rebuild/repair that home that has been lost or damaged.
  On your homeowner's policy you should have a coverage for "Wind/Hail" listed. This will cover damage done to your home by Hail, Wind, Tornadoes and Hurricanes. (But not Flood- this is a separate policy altogether) Wind/Hail is listed as a deducible amount, not a coverage amount. In most cases, your wind/hail coverage should be the same amount as your "Dwelling Coverage". You will pay a set deductible before that coverage kicks in. The deductible is usually a percentage. For example, 1% of a $200,000 dwelling value would be $2,000. So  you would pay the first $2,000 of the repair/rebuild amount and your insurance would (should) cover they remaining amount. This coverage will just cover the actual building (or home). It doesn't cover Personal Property (contents). Fortunately most policies will cover Personal property as well. 
   One thing you want to make sure of is that you have a Replacement Cost policy, both for your dwelling AND your personal property. (They are 2 different types coverage and have separate rules governing them.) Some companies will try to sell you on a lower price without telling you it is an Actual Cash Value (ACV) policy. A Replacement Cost policy will pay out the amount to "replace" your home and it's contents at today's value. An ACV policy will pay out what it cost minus depreciation for the time and wear on your home and it's contents. It is your choice. But do yourself a favor. Spend a little more money and get a great deal more coverage with a RC policy. 
  Your agent is there to make sure you have the coverage you need and want. Ask him or her questions. You pay a premium to make sure you, your family, your home and your possessions are taken care of. Make your agent earn his/her keep by explaining what coverage you have, what your limits are.  Insurance is there to make you whole again in the case of a loss. After a devastating storm like the recent tornadoes, you need to know your insurance will do what you bought it for- Protect you!

Can we help you? call The Brockman Agency toll free 1-877-987-8683


    

Commercial Auto Insurance

Do you own a small business? Do you use a car for your business?

Did you know most Personal auto insurance policies exclude the coverage if the car is used for business?  Most policies exclude the coverage if the auto is used primarily for business, but where is the line? When does occasional use become primary use? Most carriers don't have a set answer for that question.

If you use you car at all for business, you should research and consider purchasing Commercial Insurance. A serious accident can financially ruin a small business. Is that risk greater than the premium? That is what you have to decide.

If you are considering commercial insurance, answer these questions:

* Is the car in your personal name or the business? (if business, personal policies rarely cover the claim)

* Do employees drive the car in the course of business?

* Do you pick up goods or people for a fee?

* Do you visit job sites often?

If you answered "business" to the first one and/or "yes" to any of the other 3, you definitely want to consider commercial insurance.

A commercial auto policy covers you in much the same way a personal auto policy does. There is Liability coverage, Uninsured Motorist, Collision and Comprehensive. You can get towing and rental. There are different types of coverage you can add on as well, such as "non-owned"autos. This covers your employees if they use their personal car to run business errands such as make deposits, get lunch for the office...). Or "hired autos" which cover you if you lease, rent, hire or borrow a car from someone other than an employee.

Your limits can be higher with a commercial auto policy than on a personal auto. Liability can go into the millions, thus protecting your small business. Again, it can save your business from going under after a claim. The premium is no fun, but when are they? Better to pay the premium than lose the business!

If you are considering Commercial Auto, be sure to call an Insurance professional.Ask questions. Know the coverage you need and make sure you get it. 

Don't have an agent you trust? Give us try! Call The Brockman Agency toll free 877-987-8683

Boating Insurance

We are not all in the same boat!

Boating season is upon us. Whether you are an experienced boat owner, or a potential buyer, you need to evaluate your Insurance. Boats are unique. Their insurance needs to be unique also. Some Homeowners policies will  cover small boats (usually without motors). But if you have a motor boat of any kind, you need a policy with specialized coverage tailored for boat owners. 
What makes a Boat policy different from a Home or Auto policy?
Boat policies are a mixture of Home and Auto policies. 
Similar to Home insurance, a boat policy will cover liability if someone is injured on your boat and it gives you the choice of Replacement cost coverage (you want this!) or Actual Cash Value coverage (this is less coverage). 
Like auto insurance, boat coverage typically includes coverage for bodily injury that your boat inflicts on others, property damage your boat inflicts on docks and other boats, and physical damage to your boat should you hit something or run aground. You can also add comprehensive coverage for theft, vandalism, fire and flood, personal property coverage for your fishing gear, uninsured boater insurance and even roadside assistance in case you need a tow (on land or water!). 
Some policies will allow you to "suspend" coverage during non-boating seasons, thus saving you a little money. 
Many carriers, like Progressive, Safeco and Travelers offer additional coverage that is specifically designed for boats. 
* Fuel spill liability coverage the cost of damage caused by an unintentional spill for which you are liable.
*Wreckage removal will pay the cost of any attempted or actual removal of the wreckage of a covered boat if you are liable.
* Personal effects replacement cost pays for our personal items while they are on board the boat.
*Fishing equipment replacement cost pays for your tackle, rods and reels. (There is usually a set limit)
*Total Loss Replacement replaces your boat with a brand new one of similar make and model. 
*Pet Injury covers the cost of Vet bills (usually up to $1,000) if your dog or cat is injured in an accident while on your boat.

Being out on the lake with family and friends is one of the best ways to spend a summer day. Make sure your boat and those you have on board are properly covered!


Questions? Call the Brockman Agency and let us take care of you! toll free 877-987-8683