If Disaster Strikes Is Your Texas Home Covered?

tornado-damage-aerial-viewImagine how devastating it would be to lose your home in a fire or tornado.  If disaster struck your home today do you have enough coverage? Are you sure?  Have you reviewed your policy lately?  According to Marshall Swift/Boeckh, the global leader in building cost information, 61% of homes in the U.S. are underinsured by an average of 18%.  If this figure is applied to a Texas home with a replacement cost of $300,000, it might be insured for only $246,000 leaving a possible shortfall in coverage of $54,000.  This is a huge gap that most homeowners are not prepared for.

Here are some tips/steps to take to reduce the likelihood of your home being underinsured:

  • Schedule an Annual Review.   The best way to be sure that you are covered is to schedule an annual review with your insurance agent.  Just like we do an annual physical checkup, we should take care of our financial health.  Take the time to make sure the coverage you purchased years ago still meets your needs.
  • Identify Available Credits.  You might also save money by double checking to make sure you are getting all the discounts you qualify for.
  • Check your Deductible.  A deductible is the amount you pay after a loss before your insurance company steps in.   Raising your deductible can be a great financial move.  It not only allows you to significantly reduce your premium costs but it also prevents you from being too quick to call your insurer for coverage.  The more claims you make, the more likely the insurance is to raise your premiums or cancel your policy.
  • Look At Your Personal Liability Coverage.  This is the coverage you need when you get sued.  Little Johnny runs across your front yard and trips on one of your sprinklers and his parents sue you for $250,000.  Make sure you don’t scrimp here.  It’s not too expensive to increase your coverage.  You might even consider an Umbrella Liability Policy.
  • Check the mortgagee clause.  Here’s where you can be sure that the current mortgagee on your home is listed correctly.  Check the lender, address and your loan number.  Maybe you had a Home Equity line of Credit or a second mortgage that no longer applies.  Be sure to get them removed.
  • Create an Inventory of Your Contents.  You can write everything down in a notebook, for example.  Or you can take pictures, writing information on the back of the photos, or put information on your computer.  If you have a video camera, you can walk through your house filming and describing the contents at the same time.  If you have a personal computer, you can access free online software that makes creating and keeping a home inventory easy at: https://www.knowyourstuff.org/iii/login.html

Taking the time for an insurance checkup and monitoring your coverage’s can result in a lot of savings AND peace of mind.

Position Open | Personal Lines Account Manager

Dallas Insurance JobsQualifications:

  • REQUIRED – Active Property, Casualty Insurance License – industry designations a plus.
  • REQUIRED - Minimum 2 years personal insurance experience.
  • Ability to effectively communicate orally and in writing.
  • Full knowledge of personal insurance products, policy forms, rating procedures and industry operations.
  • Ability to efficiently utilize computer programs such as Excel, Word, and PowerPoint.

Primary Functions:

  • Review and approve new business applications received from agents
  • Determine if additional information is needed to quote
  • Quote online with appropriate companies; or submit to appropriate carriers
  • Forward quotes as received to agent for review
  • Offer options to agent if standard markets are not available
  • Review binding applications for appropriate information and forms
  • Issue policies
  • Mentoring of new agents with respects to business development, completion of applications, companies, products, etc.
  • Receive and process endorsement requests from agents
  • Distribute electronic carrier communications to agents
  • Other duties as assigned

Personal & Organizational Development:

  • Sets priorities and manages workflow to ensure efficient, timely, and accurate processing of transactions and other responsibilities.
  • Maintains a cordial and effective relationship with clients, co-workers, carriers, vendors, and other business contacts.
  • Keeps informed regarding industry information, new product information, legislation, coverages, and technology to continuously improve knowledge and performance.
  • Interacts with others effectively by utilizing good communications skills, cooperating purposefully, and providing information and guidance, as needed, to achieve the business goals of the agency.
  • Understands how to perform technical tasks to expedite client service.

Position Title:   Personal Lines Account Manager
Reports To:   Agency Operations Manager

To apply for this opportunity please contact Rhonda Cox at rhonda.cox@coverica.com or call directly at (972)490-2249.

Dear Mom, I Wish You’d Had Life Insurance

life-insurance-drowning-in-billsBrittany Lacombe’s life was changed forever while on a Mother’s Day camping trip with her mother and sisters in 2011.  Her mother’s foot started bothering her so much that they called 911 and she was taken to the hospital.  They thought everything would be fine after an overnight stay.  Unfortunately things went very wrong during the night her mom died of a pulmonary embolism.

At age 20, Brittany was now the head of the family, and had to take care of her sisters who were then age 15 and 16.  Then it was one painful discovery after another.  She found out her mom had only $300 in the bank and was way behind on her bills.  On top of planning for and figuring out how to pay for the funeral she had to deal with notices that the house was about to be foreclosed on and that the water and electricity were about to be shut off.

Death is something most people never think about or prepare for.  Brittany’s mom had a small life insurance policy with her job, but lost it when she was laid off.  He mom never thought she needed life insurance because she was only 49 years old.

You can read Brittany’s full story by clicking on the link below.  http://www.dailyfinance.com/2013/04/24/life-insurance-essay-contest-brittney-lacombe/

Life insurance may be one of the most important purchases you’ll ever make.  In the event of a tragedy, life insurance proceeds can help pay the bills, provide for funeral expenses, finance future needs like children’s education, and protect your retirement plan and much more.

Life Insurance is far more affordable and easy to buy than most people think.  Noted financial guru Dave Ramsey and SmartMoney.com recommend buying term life insurance as its low premiums allow consumers to get maximum coverage at little cost.  But don’t take my word for it, call your agent and find out for yourself.

CoVerica Acquires the Assets of Dallas Based Pacific Agency, Inc.

CoVerica, Inc., one of the largest and fastest growing insurance agencies in Texas, continued its expansion by acquiring the Pacific Agency, Inc. Pacific is a Dallas based commercial property & casualty agency that was founded 19 years ago. Over the years they have specialized in insuring artisan contractors, property managers, personal lines and a wide variety of other risks.

Mike Lipes, Pacific’s Founder and President said, “We feel this move to CoVerica offers additional competitive options for our clients. CoVerica has access to more national and regional insurance markets, has greater negotiating power and employs a large and experienced staff focused on personal service.”

Long time Pacific employees Donnell Reed and Pamela McCord have joined the service team at CoVerica. They will continue their roles of customer sales, support and service as they have in the past, as well as undertaking new roles for CoVerica.

Michael Sterlacci, CoVerica’s President and Chief Executive Officer, commented, “I am very excited to about the opportunities this acquisition provides for CoVerica and its employees and am pleased to welcome Donnell Reed and Pamela McCoy to the CoVerica team. Their presence at CoVerica will continue to solidify the ongoing relationships with the Pacific Agency clients and provide valuable additions to the CoVerica operation.”

CoVerica is an innovative nationwide insurance agency based in Dallas and serves the entire DFW Metroplex and beyond. They offer competitively priced, comprehensive insurance options including commercial property and casualty, employee benefits, bonds and personal insurance.

Additional information about CoVerica, Inc. may be obtained by contacting CoVerica’s President and CEO, Michael T. Sterlacci at CoVerica’s headquarters, 5999 Summerside Drive, Suite 200, Dallas, TX 75252, telephone number (972) 490-8800, or by visiting CoVerica’s website at www.Coverica.com.

It’s Time to Get Serious About Cyber Liability

Data Breach InsuranceHave you been reading #1 New York Times bestselling author Tom Clancy’s newest book Threat Vector like me? If not, without giving too much away President Jack Ryan faces a new international threat. Chinese cyber warfare experts have launched a devastating attack on American infrastructure.

It turns out that the book may not be all fiction. In a recent report on National Public Radio we learned that U.S. industry has faced devastating cyber-attacks over the past several years from a Chinese Military unit based in Shanghai. During that time over 141 corporations across 20 different industries have had their intellectual property and data compromised.

If this is happening to major corporations, just how safe is the data in your firm? According to a recent survey by Zurich Insurance Co. Ltd. Only 19% of businesses have purchased insurance specifically designed to cover cyber risk. The survey conducted by Harvard Business Review Analytic Services found that while 76% of respondents expressed concerned about information security and privacy over the past three years relatively few are taking concrete actions.

When asked to access their own individual risks respondents to the survey responded that malware and viruses were top concerns. Other worries included administrative errors or mistakes by employees and incidents caused by third-party data suppliers.

So let me ask you a question, in the event of an attack are you covered under your standard business liability insurance policy? In most cases the answer is no. Liability loss of customer or employee data is not typically covered under a business insurance policy which generally only covers so-called “tangible assets”.

This is a great time to put in a call to your insurance professional. Talk to them about the options that are available to you. Each insurance carrier’s policy forms will not be the same. There will be significant differences in coverage’s and policy exclusions from carrier to carrier. This is not a homeowner’s policy; this is an advanced business policy that demands discussion.

What Does “Full Coverage” Really Mean?

insurance coverage explainedIn the insurance industry, the words “full coverage” have more than one meaning. It all depends on who you’re talking to. To an insurance agent, “full coverage” is simply providing enough coverage to fully protect a vehicle for all perils that could cause damage to the vehicle. The first portion of this coverage is comprehensive, which is sometimes referred to as “other than collision.” This coverage will protect the vehicle in all cases where a collision with another vehicle or fixed object does NOT occur. It includes things like vandalism, theft, hitting an animal, and even weather-related losses such as hail. The second portion of “full coverage” is collision. This coverage will protect your vehicle in the event of a collision with another vehicle or a fixed object of some sort – like a guardrail or utility pole. These two coverages combined are what make up “full coverage” on your auto insurance policy, and there is always a deductible associated with claims involving comprehensive or collision. Most people carry $500 deductibles, but you have the option of choosing anything from $50-$1000 with most insurance companies.

To you as the consumer, “full coverage” might mean that you are fully protected no matter what and unfortunately, this could not be further from the truth. In reality, it only means that the vehicles you choose to carry full coverage on are fully protected. You and your passengers are NOT guaranteed protection for your injuries and thus hospital bills and time off work unless you have additional coverage on your policy for these things. Take for example, you driving down the road and being rear-ended by a vehicle that isn’t insured. If you have comprehensive and collision (“full coverage”), the damage to your vehicle will be repaired after you pay the applicable deductible, but what about any injuries you and your friend in the driver seat incurred as a result of the collision? Without having uninsured motorists bodily injury listed on your policy, your injuries would have to be covered under your health insurance. You’d have to cross your fingers and hope that your friend has health insurance coverage as well, because if they don’t, you could be the one responsible for covering their injuries since they were in your vehicle when the accident occurred.

All too often we talk with members who believe they have every coverage available just because they asked for “full coverage” when they got their last policy. After consulting with one of our agents, they revisit their coverages and find out they don’t. It’s usually the uninsured motorists, personal injury protection, roadside and rental car coverages that have been left out. And although carrying these four additional coverages might mean paying a bit more on your monthly insurance bill, leaving them out altogether could cost you – whether it’s having to pay the rental car bill when you have an accident and put your car in the shop or, even worse, having to hire a lawyer once you find out that you’re being sued by a passenger in your vehicle from the uninsured motorist that rear-ended you. Even if you don’t want to pay a higher premium for more coverage, it’s best to know what you’re paying for now so you can plan for something better in the future once your budget allows for it. It’s also beneficial to know the details on your coverage when shopping around for better rates. If it’s been awhile since your last “insurance check-up,” give one of our licensed agents a call at 800.490.8800 and have your policy ready. We can shop around with over 16 different auto insurance companies on your behalf. Just remember that the first step to making a positive change requires you know what you’re paying for now. How else would you be able to judge whether what you’re paying now is too much? At the end of the day, insurance is just like anything else you buy – you pay for what you get. Your price should indicated the level of coverage you have on your policy, and if it doesn’t then it’s time to give us a call!

Preparing for the Unexpected

Insurance for the unexpectedLife situations can change your day in an instant here in Texas. Hail, thunderstorms, tornados, fires, burglaries, accidents, major illnesses, disability and even death are events most of us are not well prepared for. Taking the time to prepare can minimize the impact on us and our families and avoid some of the stress that comes with these unexpected emergencies. When faced with an emergency, having the right insurance in place for you and your family could make all the difference. Below are some issues you should spend some time thinking about so you will be prepared for the unexpected.

Select a health insurance policy that matches your needs with appropriate coverage, deductibles, co-payments and choice of medical providers.

Protect your earning power with long-term disability insurance. If you can’t get adequate short and long term coverage through work, consider an individual policy.

Confirm that your auto and homeowner’s policy coverage and deductible work for you. Take the time to call your agent and schedule an annual review. Go over your policies and discuss what’s covered and what’s not. Talk to your agent about flood insurance if it is a concern in your area.

Check out this article from the Insurance Information Institute regarding issues you should be prepared to discuss during your annual review

Life insurance. Take advantage of the policy offered by your employer, and get outside coverage if the policy is not transferable or if you need additional life insurance. If you need help in determining how much life insurance you need, go to Bankrate.com and check out their Insurance Calculator. By answering questions they can help you make an informed decision.

Additional Liability coverage. A personal liability “umbrella” policy may be a cost effective way to increase your coverage against liability lawsuits by providing $1 million or more. Protect yourself and your family with an extra layer of affordable liability protection over your current homeowners and auto insurance policies. You might need a personal umbrella policy if you

  • Own a car
  • Own a home
  • Want to protect your future earnings
  • Want to protect your assets against a lawsuit or judgment

Who Will Finish the Job? Learn the Importance of Surety Bonds

Surety-Bonds-dallas-insurance-agencyWhat happens when a large road contractor goes bankrupt, in the middle of a construction project? Who picks up the pieces and who pays to finish the job? That’s the problem faced in San Antonio as reported by WOAI in this recent article.

Although surety is an ancient concept, its prime mission can be stated simply: performing a service for qualified individuals/companies whose affairs require a guarantor. In the United States, surety guarantees have been issued by corporations for over a century. These corporate sureties have the necessary capital to make numerous commitments in the form of surety bonds.

Because insurance companies issue many surety bonds, some people think that insurance and surety bonds are the same thing. While there are similarities, there are also major differences. A bond guarantees the performance of a contract or other obligation. Bonds are three party instruments by which one party guarantees or promises a second party the successful performance of a third party.

        1.

The Surety

      — is usually a corporation which determines if an applicant (principal) is qualified to be bonded for the performance of some act or service. If so, the surety issues the bond. If the bonded individual/company does not perform as promised, the surety performs the obligation or pays for any damages.

 

        2.

The Principal

      — is an individual, partnership or corporation who offers an action or service and is required to post a bond. Once bonded, the surety guarantees that he will perform as promised.

 

        3.

The Obligee

    — is an individual partnership, corporation or governmental entity which requires the guarantee that an action or service will be performed. If not properly performed, the surety pays the oblige for any damages or fulfills the obligations.

The purpose of a surety is to protect public and private interests against financial loss. Here’s a recent example of how Surety Bonds saved the state of Texas, the city of San Antonio and tax payers millions of dollars when a large contractor went into bankruptcy. The city and state had 10 contracts with the contractor when work on all those projects stops. The surety bonding companies Liberty Mutual Insurance Company and Zurich American Insurance Company came in and received court approval to take financial control over projects and eventually restart work on them.

Source: WOAI 4

When Meteorites Attack – Would My Homeowners Insurance Cover It?

If you haven’t read the news today, Russia had an asteroid encounter today, February 15th. The footage coming in is absolutely incredible. Hundreds of videos are pouring in from dash cams and cell phones which look like something taken from Hollywood’s latest “this is how the world will end” summer blockbuster.

Check out some of the best video footage compiled here:

So the question begs asking, “If my home was damaged from a meteor or an asteroid, would my homeowners policy cover it?” The more likely question might also be “would the resulting shockwave be covered” as that would affect far more people than a direct strike or impact (check out 9:30 in the above video). The answer to that question, like many insurance questions, depends on the homeowners insurance policy that you purchased.

Many insurance carriers will only offer a policy that covers “Named Perils.” Unless they specifically name the cause of loss, it’s not covered. A typical named peril policy might read, “Damage is covered as long as it results from fire, lighting, theft, wind, and water damage not caused from flooding.” Notice a few things missing from this list, specifically: flood, foundation settling, power surge, wear/tear, earthquake, riot, war, civil unrest and yes, asteroids and meteorites.

On the other hand, if you have an open peril policy, or what is sometimes referred to as an all-risk policy, you’re covered for anything NOT specifically mentioned. An all risk policy may read, “All damage is covered unless it results from flood or wind driven rain.” That basically means anything other than flood or wind driven rain, which can be purchased on a flood policy, is covered. Sonic booms, asteroids, alien invasions, and anything else you could dream up would be covered as long as it’s not specifically named in the policy.

Now where’s Bruce Willis from Armageddon when you need him?

Gauging Your Distraction – Texting While Driving

According to a recent survey by the Insurance Council of Texas, which represents 500 insurance companies that sell auto coverage, about 9 out of 10 Texans believe that drivers who are in a car accident because they were texting should get higher insurance rates.  Council spokesman Mark Hanna said “We have worked for years to get drunk drivers off our roadways.  Now we are dealing with a driver that is much more dangerous.” 

Studies have shown that the average driver takes their eyes from the road for 4.6 seconds each time they send a text.  Going down the highway at 55 mph means that a driver can go the length of a football essentially on autopilot.  Similar studies have shown that a driver is up to 23 times more likely to crash when they’re texting, compared with a driver with 0.08 blood alcohol content, the legal driving limit.

Distracted driving is becoming increasingly common and has hazardous consequences.  In 2011, there were more than 81,000 Texas crashes involving distraction, driver inattention or cell-phone use.  Of these, 361 were fatal.  In fact, nearly one in four crashes in Texas involves driver distraction.

Do you have some friends or family that don’t believe that texting while driving affects their driving ability?   Have them take this challenge.  The New York Times has a game posted on their website where you can see how texting affects your driving ability.  Click on the link below for instructions and then you can test your skills.

http://www.nytimes.com/interactive/2009/07/19/technology/20090719-driving-game.html

Regardless of your results, experts say, you should not attempt to text and drive.