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Coverage for your kid while away at school

Last week I had a conversation with a friend about his son going off to college and if his insurance would cover him while away at school. The answer is jaw droppingly simple – yes, no and maybe! Let me explain the important points to consider:

1. Regarding his stuff, most possessions of students who live in an on-campus dormitory are covered under their parents’ homeowners or renters insurance policy. there are some variations to the automatic coverage. According to the Insurance Information Institute, some policies limit such coverage to 10 percent of the total amount of a policy’s coverage for personal possessions. In addition, some standard policies may also limit coverage for more expensive possessions like computers and electronics; full coverage could require the purchase of floaters or stand-alone insurance. Your policy most likely also doesn’t cover your child’s possessions if your child lives off-campus. As a result, you’ll have to check with your agent to determine exactly what your policy covers.

2. Regarding his car – being away at school, he may be able to save some money on auto-insurance premiums. If his college is at least 100 or 150 miles away and he leaves the car at home, the insurer could rate him “restricted,” which reduces your rates but still provides coverage when he comes home to visit or if he drives someone else’s car that has lower coverage limits.

3. Regarding his grades - the insurer’s good-student discount may apply. Many insurers will give you a price break if your child maintains at least a B average in college

4. Regarding his health care options – typically his son will have 5 options regarding health insurance coverage while away at school, they are:

1. Parents’ health insurance plans. A provision of health reform law that becomes effective in 2010 allows adult children to keep their coverage under a parent’s health insurance policy until age 26, whether or not they are currently enrolled in college. The parent’s policy might be group coverage sponsored through an employer or an individual or family policy purchased by the parent. Some employer-based plans are accepting students now while others may wait until January 1, 2011 before allowing student to re-enroll.

2. Individually-purchased health insurance plans. Many students purchase coverage on their own in the form of an individual, non-group policy. There is a broad variety of individual coverage options to choose from nationwide. However, until 2014, in most states it is still possible to be declined for individual coverage based on pre-existing medical conditions.

3. School-sponsored health plans. Many colleges and universities offer their own health insurance plans to students. Some of these plans place strict limits on the range of benefits covered and may limit access to only those doctors and services available through an on-campus student health center. As regulations for health reform laws continue to be written, the future of school-sponsored plans is uncertain.

4. Individually-purchased student health plans. These plans may resemble school-sponsored plans by placing specific limits on certain benefits, but they typically offer more freedom in obtaining medical care away from campus. Student health plans may be especially valuable for those going to school in a different state. While the post-reform future of these products is also uncertain, new and innovative student health plans with richer benefits are being introduced to the market.

5. Government insurance options. These may include state or federal insurance programs such as Medicaid or high risk pools. In order to qualify for some of these products you must have a diagnosis for a pre-existing medical condition on file with your doctor. You may also need to have been previously uninsured for a minimum of six months.

Again, I urge every with concerns regarding this topic to do some research and/or contact their insurance agent. Different companies vary when it comes to coverage for kids who live in the household and insurance coverage while they are away at school

ITV, Coinsurance & More

My experience with insurance to value has taught me that this is not an area that should go ignored by commercial as well as homeowner policyholders. Initially, I took a contrarian view as I thought it was the agents job to monitor and maintain the insurance to value on an insured property. Although it is the professional responsibility of the insurance sales professional to meaningfully participate, the main impetus is on the policy holder to make sure the (ITV) is accurate, current and relevant.

What is (ITV)?
Insurance written in an amount approximating the value of the property insured. In other words, the property for various reasons could increase in value and as it does, so should the amount of coverage on the property. A replacement cost (replacement cost is very important when it comes to addressing ITV) calculation (physical inspection in most cases) is the means by which the (ITV) is determined.

(ITV) is important for several reasons:
The insured: Many insurers of homeowners offer "Guaranteed Replacement Cost" coverage--but generally it is only provided in their "preferred" programs and it is limited to a modest amount (usually 20 percent to 25 percent) above the actual amount of coverage purchased. Home improvement a national pastime and construction costs rising, it’s a good idea to check your policy limits once a year. Planning to remodel your home? Just finished adding that new deck or garage or fence in your front yard? It could be time to review your limits.
Therefore, many homeowners may find that their policies will not cover the replacement of their homes, if they face a total loss. So what could happen in the event of a claim wherein the (ITV) is not up to current? The policy holders claim settlement could be reduced for not having the accurate (ITV) and corresponding coverage on the property.

The Insurance company:
When underwriting insured properties, insurers need to obtain accurate insurance-to-value ((ITV)) calculations so they can charge the right premiums for the risks they assume. Adequate (ITV) is not an issue to be taken lightly. If insurers do not receive accurate values for the properties they insure, their premium pricing is based on faulty data and their long-term financial stability could be at risk. In layman’s term’s they need make sure that they are collecting enough many to fully insure the risk.

One of the principle tenants of (ITV) is coinsurance. Simply put, coinsurance is the amount of self insurance you assume per policy agreement. Property coinsurance obligates the insured to keep a specific amount of insurance in force on the insured property, or else face penalties in the event of loss. Typically, the policyholder is regarded as a joint insurer only when insuring property for less than the required portion of its full value; only then does the insured become jointly and proportionately responsible for losses. The required level of insurance may be a stated amount or a percentage of the property value. In the event the insured purchases a policy with a face value equal to or greater than the required amount, coinsurance does not play any role in calculating indemnity on insured losses and a covered loss will be fully insured beyond the deductible.

Next up: The coinsurance clause defined

THE COST TO DRIVE IS GOING UP 4.8% PER AAA


The average cost to own and operate a sedan has risen 4.8 percent to 56.6 cents per mile thanks in part to the increasing prices motorists are paying at the pump, AAA says today in its annual driving costs study.Increases in the costs of gas, tires and insurance were the primary factors causing a rise in all categories of vehicles in the U.S., the motor club said. Fuel costs were almost 13 percent higher than the cost of fuel in last year's study.

The average costs of full coverage insurance on sedans also rose 5.7 percent over last year, while tire costs increased an average of 8.7 percent.The disappointing news in the report is that costs could go higher. Crude shot to an 18-month high above $87 this week, from $69 in early February, on investor optimism oil demand would increase following a recovering global economy.

The average cost of a gallon of gas was hovering above $2.80 in Indianapolis today and $2.83 statewide, according to AAA and Oil Price Information Service. That almost $1 higher than at this point a year ago.John Nielsen, director of AAA Auto Repair and Buying, said higher prices affect depreciation values, as the most fuel-efficient vehicles hold their value longer.

The per-mile cost of a small sedan is 43.3 cents compared to an SUV, at 73.9 cents per mile.AAA has published "Your Driving Costs" since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per

2010 Storm Names

The following names will be used for named storms that form in the North Atlantic in 2010. Retired names, if any, will be announced by the World

Meteorological Organization in the spring of 2011. The names not retired from this list will be used again in the 2016 season.

This is the same list used in the 2004 season with the exception of Colin, Fiona, Igor, and Julia, which replaced the names of the four major hurricanes that made landfall in Florida in the U.S. in 2004: Charley, Frances, Ivan, and Jeanne, respectively.

1. Alex (unused)


2. Bonnie (unused)


3. Colin (unused)


4. Danielle (unused)


5. Earl (unused)


6. Fiona (unused)


7. Gaston (unused)


8. Hermine (unused)


9. Igor (unused)


10. Julia (unused)


11. Karl (unused)


12. Lisa (unused)


13. Matthew (unused)


14. Nicole (unused)


15. Otto (unused)


16. Paula (unused)


17. Richard (unused)


18. Shary (unused)


19. Tomas (unused)


20. Virginie (unused)


21. Walter (unused)
    
    
    
    
    
    
    
    
    
    

Social Media And Insurance Claims

Using Facebook or Twitter 'could raise your insurance premiums by 10%

People who use social media websites such as Twitter and Facebook have been warned that they could eventually face rises in their home insurance premiums of as much as 10pc.
Services such as Twitter, FaceBook, Foursquare and Buzz can alert criminals when users are not home, according to Confused.com
Services such as Twitter, Facebook, Foursquare and Buzz can alert criminals when users are not home, according to Confused.com, the price comparison service. Foursquare, for example, shows that people are in a specific spot and, more importantly, that the user is definitely not at home, Confused.com added.
It predicted that the new wave in social media could eventually lead to big rises in home insurance premiums.
Darren Black, the head of home insurance at Confused.com, said: "I wouldn't be surprised if, as social media grow in popularity and more location-based applications come to fore, insurance providers consider these in their pricing of an individual's risk. We could see rises of up to 10pc for people who use these sites.
"Criminals are becoming increasingly sophisticated in their information gathering, even using Google Earth and Streetview to plan their burglaries with military precision. Insurance providers are starting to take this into account when they are assessing claims and we may in future see insurers declining claims if they believe the customer was negligent."

The company offered the following advice to users of social networking websites:
1. Never post your home address or other personal information such as your home phone number on social networking sites
2. Don't follow people you don't know on social networks and use block others from seeing your profile if you don't know them
3. Turn off location-based services on Twitter and Facebook unless you absolutely need to use them

Let’s get this party started or you might want to not start it once you know how you may be liable for the actions of the attendees if you serve alcohol. We all like to have a good time particularly during celebrations for events such as graduation, holidays, anniversaries, New years and the list goes on. Did you know that as a “social host” (which is what you are if you are serving alcohol at your event) you are liable the actions of third parties who go out and cause harm to others such as an auto accident.Dram shop liability refers to the responsibility of the tavern, restaurant or other business (or social host) that sells or gives the alcohol to an obviously intoxicated person or a minor who then causes harm to another. Dram shop liability laws vary widely by state in regards to serving alcohol to an intoxicated person. For instance, ten states such as Nevada have no dram shop liability laws at all. Most states impose liability on social hosts where: Alcohol is served to a minor which is fairly obvious or The host was reckless in serving alcohol or should have recognized the extent of the guest's intoxication and not served him or her more alcohol. So what should you do? Consider the following:

• Don’t serve drinks to minors
• You might consider using chaperones to monitor quest – a designated driver, if you will
• Host the event at a liquor licensed restaurant, bar or other facility which would be responsible for serving drinks
• Some say implement a “Cash Bar” I don’t share that view as you could possible be on the hook
• Don’t serve drinks at all

Please know that the aforementioned is not a guide but a researched opinion. You should consult a legal professional in your state to get precise information on this topic.

Click here to see Social host/dram shop laws for each state.

How the new credit card changes affect you



Interest rates What has changed: Credit card issuers can no longer raise interest rates on existing balances. For example, if you're carrying a balance of $5,000 with a 13% interest rate, your credit card issuer can't raise that rate, except under certain circumstances. In addition, if you open a new credit card account, the issuer can't raise the interest rate for 12 months. This provision is the most significant reform in the legislation and has the potential to save consumers a lot o money as consumers can no longer experience enormous rate increases.
What hasn't changed: The legislation imposes no limits on the rates credit card issuers can charge new customers. Nor does it limit how much card issuers can raise rates on future purchases, says Josh Frank, senior researcher for the Center for Responsible Lending.The prohibition on retroactive rate increases means credit card companies "are going to be more aggressive at changing rates on future purchases, and rates in general for new accounts are going to be higher than they were," says Ben Woolsey, director of consumer research for CreditCards.com.There are also exceptions to the retroactivity rule. Credit cards can raise rates on existing balances if:•The card has a variable interest rate and the underlying index — such as the prime rate — increases. In anticipation of the reforms, most banks have moved away from fixed-rate cards. In July 2009, less than 1% of bank-issued cards offered fixed rates, down from 31% in December 2008, the Safe Credit Cards Project says.•The card has an introductory "teaser" rate for a specific period and that period expires.•You're more than 60 days late on a monthly payment. However, the issuer must restore the old interest rate after six months if you make on-time payments during that period.



Fees What has changed: Credit card companies are no longer allowed to charge a fee when you exceed your credit limit unless you sign up for this service.Card issuers will also be prohibited from charging extra because of the way you pay your bills. For example, you can't be charged a fee for paying your bill by phone unless you request expedited payment or ask for help from a customer service representative, Bourke says.
What hasn't changed: Credit card issuers will still be allowed to charge annual fees, inactivity fees and other types of fees, Woolsey says. And an increase in those types of fees is a certainty, says John Ulzheimer, president of consumer education for Credit.com. Card companies are facing the loss of billions in revenue in over-the-limit fees, he says, "which means higher fees elsewhere and new fees we've never even heard of yet.

"Billing practices What has changed: Many borrowers have several lines of credit with different interest rates on the same credit card. For example, you could have one rate for a cash advance, another rate for purchases and still another rate for a balance transfer. In the past, when borrowers sent in a payment, issuers usually applied the entire amount to the balance with the lowest interest rate first. Now, issuers will be required to apply any amount paid beyond the minimum to the balance with the highest rate, Bourke says. Other changes:•Credit card issuers must mail or deliver your bill at least 21 days before your payment is due.•Due dates must be the same every month. If the due date falls on a weekend or holiday, the payment must be credited on the next business day, with no late penalty.•Banks can no longer use a customer's average daily balance over two months to calculate interest, a practice known as "double-cycle billing.
"What hasn't changed: When card holders have credit lines with different interest rates, card issuers are still allowed to apply the minimum payment to the lowest-rate debt. "If you're making just the minimum payment, this won't help you," Bourke says.



Disclosures and notices What has changed: Card issuers are required to give 45 days' notice before raising interest rates, changing certain fees, such as annual fees or cash advance fees, or making other significant account changes.Credit card issuers must provide borrowers with more information about the cost of carrying a balance. In monthly statements, you'll receive an explanation of how long it will take to pay off your balance if you make the minimum monthly payment. Your statement also will include an explanation of how much you'll need to pay monthly to eliminate your balance in three years.Statements also must disclose the dates by which payments must be received to avoid late charges.
What hasn't changed: Card issuers can close your account or lower your credit limit for any reason, without giving you advance notice, Frank says.In recent months, credit card companies have sharply lowered credit limits for thousands, a trend that's expected to continue, credit card analysts say.Still, the new provisions will change some of the industry's most egregious practices, Bourke says. Now, "If you use your credit card for purchases, pay your bills and occasionally you're a couple of days late, your card is not going to blow up in your face," he says.

The Coveragejet 2010

Must have Insurance a Small Business Owner Should Have



1. General Liability Insurance: Every business, even if home-based, needs to have liability insurance.  The policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party.

2. Property Insurance:  If you own your building or have business personal property, including office equipment, computers, inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc.  You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.

3. Business owner’s policy (BOP): A business owner policy packages all required coverage a business owner would need. Often, BOP’s will include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . Based on your company’s specific needs, you can alter what is included in a BOP. Typically, a business owner will save money by choosing a BOP because the bundle of services often costs less than the total cost of all the individual coverage’s.

4. Commercial Auto Insurance: Commercial auto insurance protects a company’s vehicles. You can protect vehicles that carry employees, products or equipment. With commercial auto insurance you can insure your work cars, SUVs, vans and trucks from damage and collisions.  If you do not have company vehicles, but employees drive their own cars on company business you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage.  Many times the non-owned can be added to the BOP policy.

5. Worker’s Compensation: Worker’s compensation provides insurance to employees who are injured on the job. This type of insurance provides wage replacement and medical benefits to those who are injured while working. In exchange for these benefits, the employee gives up his rights to sue his employer for the incident. As a business owner, it is very important to have worker’s compensation insurance because it protects yourself and your company from legal complications. State laws will vary, but all require you to have workers compensation if you have W2 employees.  Penalties for non-compliance can be very stiff.

6. Professional Liability Insurance: this type of insurance is also known as Errors and Omissions Insurance. The policy provides defense and damages for failure to or improperly rendering professional services.  Your general liability policy does not provide this protection, so it is important to understand the difference.   Professional liability insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers to name a few..

7. Directors and Officers Insurance: this type of insurance protects the directors and officers of a company against their actions that affect the profitability or operations of the company. If a director or officer of your company, as a direct result of their actions on the job, finds him or herself in a legal situation, this type of insurance can cover costs or damages lost as a result of a lawsuit.

8.  Data Breach:  If the business stores sensitive or non-public information about employees or clients on their computers, servers or in paper files they are responsible for protecting that information.  If a breach occurs either electronically or from a paper file a Data Breach policy will provide protection against the loss.

9. Homeowner’s Insurance: Homeowner’s insurance is one of the most important kinds of insurance you need. This type of insurance can protect against damage to the home and against damage to items inside the home. Additionally, this type of insurance may protect you from accidents that happen at home or may have occurred due to actions of your own.

10. Renter’s Insurance: Renter’s insurance is a sub-set of homeowner’s insurance which applies only to those whose who rent their home. The coverage is protects against damage to the physical property, contents of the property, and personal injury within the home.

11. Life Insurance: Life insurance protects an individual against death. If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death. You pay a premium in exchange for the payment of benefits to the beneficiary. This type of insurance is very important because it allows for peace of mind. Having life insurance allows you to know that your loved ones will not be burdened financially upon your death.

12. Personal Automobile Insurance: Another very important type of insurance is auto insurance. Automobile insurance covers all road vehicles (trucks, cars, motorcycles, etc.). Auto insurance has a dual function, protecting against both physical damage and bodily injury resulting from a crash, and also any liability that might rise from the collision.

13. Personal Umbrella Insurance: You may want some additional coverage, on top of insurance policies you already have. This is where personal umbrella insurance comes into play. This type of insurance is an extension to an already existing insurance policy and covers beyond the regular policy. This insurance can cover different kinds of claims, including homeowner’s or auto insurance. Generally, it is sold in increments of $1 million and is used only when liability on other policies has been exhausted.
 

WHAT TO DO ABOUT YOUR AUTO INSURANCE SURCHARGE

What do you do if your auto policy is surcharged? What is a surcharge? Insurance companies typically collect insurance surcharges from policyholders whose driving records include certain motor vehicle offenses. The surcharges that are imposed are different for different offenses. Surcharge-able events include (but aren’t limited to) alcohol and drug related offenses, regulatory offenses such as driving without a license, driving without valid insurance or driving while suspended, and accumulating violation points in a certain time period. If you had an accident and was not at fault or if you are not guilty of the aforementioned offenses, then you may have valid reason to contest the surcharge. To do so, do the following:

1. Call your agent to discuss this issue. Have them review your record
2. Check with family members to see they drove your car with out your permission and had an accident or moving violation
3. Did one of your friends use the vehicle and commit a violation?
4. Were you late on a premium payment
5. Was this surcharge based on changes in your credit report?
6. Did you get a ticket that was later dropped
7. Clarify your carriers policy on surcharges
8. What is the monetary threshold regarding surcharges. i.e. how much do they have to pay on your behalf before your rates go up?
9. Do you need to contact your state department of insurance to request their input regarding surcharges on your policy
10. If you had an accident and was not at fault but was surcharged, you may want to get a copy of the police report to show to your agent, claims person and underwriter.

The above should assist you in appealing auto insurance claims surcharges. They serve as a good starting point. You will have to pursue the matter to conclusion.

HOW TO READ YOUR INSURANCE POLICY

It is very important that you know how to read your insurance policy. It should be in a readable format but that is not always the case. Every kind of insurance has to be explicitly stated. What is covered and for how much? There should be no ambiguity whatsoever in any statement and you must understand it. To obtain a copy of your insurance policy, you should contact your insurance company or your agent/sales representative. The parts of your policy:

Declarations - identifies who is an insured, the insured's address, the insuring company, what risks or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy period and premium amount. These are usually provided on a form that is filled out by the insurer based on the insured's application and attached on top of or inserted within the first few pages of the standard policy form.

Definitions - define important terms used in the policy language.

Insuring agreement - describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. It summarizes the major promises of the insurance company, as well as stating what is covered.

Exclusions - take coverage away from the Insuring Agreement by describing property, perils, hazards or losses arising from specific causes which are not covered by the policy.

Conditions - provisions, rules of conduct, duties and obligations required for coverage. If policy conditions are not met, the insurer can deny the claim.

Endorsements - additional forms attached to the policy form that modify it in some way, either unconditionally or upon the existence of some condition. Instead of allowing nonlawyer underwriters to directly customize core policy language with word processors, insurers usually direct underwriters to modify standard forms by attaching endorsements preapproved by counsel for various common modifications.

HOME MAINTAINANCE 2010

HOME MAINTAINANCE SCHEDULE 2010

The only way I know of to keep home maintenance goals from becoming an overwhelming nightmare is to tackle maintenance work in small doses on a regular schedule. This schedule will help you decide what time of year is best for each safety precaution Use this Home Maintenance tool to make sure your home is in good repair and for more information on why each of the following steps is important. Email me at support@coveragejet.net and I will email you this helpful tool that you can use for 2010 to improve your property