Tag Archives: Bragg Insurance

Has Your Deductible Changed Without Your Knowledge?

For the past several years homeowner’s insurance companies in Indiana have been losing money, primarily because of wind and hail claims. Storm patterns in recent years have pelted the Midwest with wind and hail related claims that reach into the $ billions. In fact many insurance companies are paying out 2 dollars in claims, for every dollar they receive in premium.Hail-damage-house-OK-6-2011-lg

This has been the primary reason the industry has seen such an increase in homeowners insurance premiums over the past few years. While this trend is not likely to end any time soon, some insurance companies are also changing the way they pay out claims.

Traditionally a homeowner’s policy has a dollar amount named as the deductible. That amount is subtracted from the amount of the claim. For example, if the policy has a $1,000 deductible and there is a $5,000 claim, the insurance company would pay out $4,000.

However there is a trend in the industry that has some companies changing their deductibles from a dollar amount to a percentage, especially if the claim has been caused by wind or hail.

Hand over your moneyI recently spoke to a married couple who had damage to their roof caused by the outbreak of tornadoes we experienced in the month of November. They called their insurance company to file a claim, and discovered that their deductible for a wind claim is 10% of their dwelling value. Their dwelling value is $360,000 which made their deductible $36,000. Needless to say they ended up having to pay for the repairs to their roof out of their own pocket.

Did you catch that? Their deductible was $36,000 for wind and hail damages!

Unfortunately many other companies are following suit. Some very large and well-known insurance companies are changing their wind and hail deductibles to a % and most of their clients are unaware of the change. Often times clients are only notified of this change within the mountain of paperwork they receive in the mail from the company at the policies renewal.

Let’s face it; most people do not have the time to sift through that much paperwork. They file it away and assume that the coverages have remained the same.

The example given above of a 10% deductible is the most extreme case that I have seen. More frequently I am seeing wind and hail damage deductibles changing from a dollar amount to 1% or 2% of the dwelling coverage. 1% or 2% of the dwelling is still a significant amount of money to pay out of pocket at the stressful time of a claim.take action

Protect yourself.

1. Review your documents. Take the time to review the documents when you receive information in the mail from your insurance company. If you do not understand the language or have questions, take the policy to your agent and have them explain the coverages.

annual review2. Insist on an annual review. Your agent should be sitting down with you on an annual basis to review your coverages and to answer your questions. There are too many changes taking place in the homeowner’s insurance arena right now to ignore the paperwork and hope for the best.

3. Educate yourself. Too often times I hear people say that they paid their premium so the assumed everything was OK. Don’t turn a blind eye to your insurance coverages. Insurance is expensive so you should do you best to make sure that you understand what you are paying for.

Be on the Alert for Deer

My favorite time of year is Harvest Season. I love the cooler weather, wonderful colors, fall parties, and watching the farmers in their fields. Fall is also deer season…not just deer hunting season, but also “watch out for that deer” season.White-tailed_deer

As the corn and beans grow during the summer deer can easily move from woods to woods without being detected and with very little human interaction, but when it’s time to cut beans or pick the corn that all changes. Grain farmer will confirm that they lose crops every year from deer who feed on the corn and beans.

When the harvest starts and combines go into the fields, deer sometimes freak out! They run, and sometimes they run right into a car.

To compound the issue bow hunting season starts (this year on October 1st) and then shot gun hunting season (this year on November LargerDrawnBow16th.)  Deer are constantly on the move, trying to avoid tractors, combines, and hunters.

Deer are also nocturnal and with our diminishing daylight hours they are much more active in the fall and winter months. Nearly 50% of all deer related accidents happen between the months of October and December.

According to the National Highway Traffic Safety Administration about 1 million car accidents each year are a caused by deer / vehicle collisions. These collisions kill about 200 people each year (not to mention a lot of deer). The accidents cause about 10,000 personal injuries and cost about $1 billion in property damage.

If you’re from Indiana, I don’t have to tell you that hitting a deer can cause a lot of damage and even death.   In fact, I will bet you have either hit a deer yourself, or personally know someone who has.

What can you do to protect yourself?deer-and-car_100324859_m

1. Be on Alert! Especially at dawn and dusk, this is when deer are on the move. Also be aware of your surroundings. Are you driving in a rural area where deer are more likely to be seen? Are there farmers in the fields?

2. Watch your speed. If you are in an area and/or at a time where deer are likely to be seen, take your foot off the accelerator and slow down.

3. Use your high beams. Look for deer in the headlights.

4. If you see one deer there are likely to be more and take precautions.

5. Don’t swerve. This may cause you to lose control and hit another vehicle or lose control of your vehicle.

6. Wear your seat belt! Many deaths and injuries are a result of being thrown through the windshield. Seat belts save lives.

The Umbrella Policy

What if the unthinkable happened to you?  You were the cause of a major accident that caused death or serious injury.  Would your insurance liability coverage be enough to cover the injured parties expenses, and protect your from financial ruin?Auto%20Accident%20C

For the vast majority of people the answer is “No”, but the umbrella policy can help you change that.

The umbrella policy starts at $1,000,000 in liability coverage and it covers your excess liability over your auto and homeowners insurance limits.

This means that if you auto insurance liability limit is $250,000 per person; with the umbrella policy in place you will then have $1.25 Million in liability coverage.  If your homeowner’s liability limit is $500,000; with the umbrella policy in place you will then have $1.5 Million in liability coverage.

Do you really need that much coverage?

If you are the cause of a serious accident you will suddenly be thrust into a “perfect storm” of financial ruin.  The combination of high medical expenses, attorney’s fees, and a “sue happy” society could cost you’re your life’s savings, future earnings, and equity that you have built in your home.

How much does it cost? 

Fortunately this type of coverage it is very affordable.  It varies from person to person, but I typically see a premium range of $200 to $300 per year.  $25 per month is not a lot of money to protect everything that you’ve worked for your whole life, especially in light of how much we spend for gas, cable TV, and dining out.

Yellow HouseWho needs an Umbrella Policy?

As an agent it is vitally important that I get to know my clients as best as possible.  This helps to recognize different risks associated with their occupation, hobbies, and life style.

I recommend this coverage to all of my clients, but I strongly recommend this coverage to people who have occupations that make them more susceptible to law suits, such as people who work with children.  It is my opinion that every teacher, Sunday school teacher, bus driver, day care worker, and little league coach have the umbrella policy as part of their insurance portfolio.Brian Bragg compressed

I also strongly recommend this coverage to people that have money that they want to protect.  Equity in homes, savings accounts, retirement accounts, future earnings, and other assets are all at risk when there is a serious accident.

For more information on the umbrella policy or to review your coverages, contact Bragg Insurance Agency.