Simply Explaining Insurance

Umbrella policies are generally very affordable and becoming more and more important as the cost of medical costs increase and lawyers find new ways to file lawsuits (social media slander) Get in to learn more.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #105- Umbrella policies explained appeared first on Dietz Agency.

The post Simply Explaining Insurance #105- Umbrella policies explained appeared first on Dietz Agency.

I have clients call me regularly asking if something is covered on their insurance. Something has happened. Something got damaged. They want to know if it is covered. The answer can be like Chinese algebra. It’s hard to figure out.

If I try and call my claims office they will tell me to file the claim and we won’t know until a claims adjuster surveys the damage. My service center who is aware of how insurance works and has access to what is covered and what isn’t, likes to direct me to claims because they don’t determine coverage.

It is this fun endless loop that I got tired of riding. So now, I go straight to the people on the ground who do determine coverage. Claims adjusters. As an agent, I have access to these hardworking professionals whose main job, is to determine if there is coverage and to help fix what is broken.

Now I call them. Adjusters are always happy to talk to agents. If we can pass on bad news to a client before them, it saves them a hard conversation. If it is covered, we get to share the good news with the client first.

What I am trying to do, is to help my clients avoid filing a claim that isn’t covered. This type of claim activity can’t be removed and you don’t want to file 2 claims in a 3 year period. At that point, you are at risk of being non renewed and shopping for a new insurance carrier that will charge you twice as much as you are paying today.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance#104- Your best chance at determining if there is coverage. appeared first on Dietz Agency.

The post Simply Explaining Insurance#104- Your best chance at determining if there is coverage. appeared first on Dietz Agency.

There are some situations where a claim has been filed on your homeowners policy that shouldn’t have been. Since claims have a direct effect on your premiums, it’s important to know how to have these removed.

Every claim is reported to a master claims database that other insurance companies and other entities have access to. They can affect your premiums and even have an impact on selling your home. We want to make sure that the information on this report is accurate.

We have had some instances where a claim was filed in error. There are ways to have this removed. In some cases, you will need to contact the reporting service directly to file a dispute. In some instances, your insurance agent can help you with the resources they have.

This IS NOT to remove a claim if you filed one that did not offer coverge. Those are there for good.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #103- Removing Claims appeared first on Dietz Agency.

The post Simply Explaining Insurance #103- Removing Claims appeared first on Dietz Agency.

This episode explains the difference between a claims-made and an occurrence made policy. It is very important to understand the difference between these two policies.

Insurance companies may provide two different types of liability coverage—occurrence or claims-made—and each comes with its own set of advantages and disadvantages.

The limitations associated with each type of policy are largely dependent on two factors:

1. When an incident occurs
2. When a claim is filed

Occurrence Policy: An occurrence policy protects a business from any covered incident that happens during the policy period, regardless of when a claim is reported. This type of policy will cover a business even if the claim comes in after the policy is canceled, so long as the incident occurred within the time frame enforced by the initial policy.

Example: Bob the business owner purchased an occurrence policy in 2010 but switched to a new form of coverage or insurance supplier in 2015. Bob gets sued in 2018 for an incident that occurred in 2012. In this instance, Bob is still covered by his original occurrence policy, because it was active at the time of the incident.

Claims-Made Policy: A claims-made policy provides coverage for claims that occur, and are reported, within the specific time period set forth by the policy. This means that if a policy is canceled, or a premium isn’t paid, any claim that comes through will not be covered, even if the incident occurred during the period when the policy was active.

Example: Bob the businessman purchases a claims-made policy in 2010 and continues coverage through 2012, then cancels. He does not purchase any extension (tail coverage) on the policy’s original limits. In 2013, Bob is sued for an incident that occurred in 2011. Since the claims-made policy is no longer in effect, and he did not purchase tail coverage, Bob is the liable party obligated to pay for damages—not his old insurance carrier.

Tail Coverage, or, officially, an extended reporting period (ERP), is an additive option that becomes available only after a policy has been terminated. In effect, a ‘tail’ endorsement extends the limits of claims-made coverage indefinitely. For a claims-made policy to cover claims made after the expiration date, a tail can be purchased to protect the policyholder from past incidents, despite a claim being made post-policy cancellation.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #102- Occurrence made Vs. Claims made appeared first on Dietz Agency.

The post Simply Explaining Insurance #102- Occurrence made Vs. Claims made appeared first on Dietz Agency.

I get this question once in awhile in my agency and I think it’s a very valid question. Every coverage in your auto policy comes with a price. The way it works is that the cost to cover your vehicle as it ages, actually does decrease.

It is the liability portion of the policy that continues to increase. As the cost of medical expenses and cost to repair vehicles rise, insurance premiums will follow. These cost increases outpace the decrease in costs on an aging vehicle.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #101- Why does my insurance go up as my car gets older? appeared first on Dietz Agency.

The post Simply Explaining Insurance #101- Why does my insurance go up as my car gets older? appeared first on Dietz Agency.

I have had a few instances of clients who have had damage to their homes or separate structures and went through with the repairs without filing the claim first.

This would not be our recommendation. The specific issue that I address in this podcast is that there was no proof that anything was damaged. The client didn’t take any photos. In one instance, there was a roof that caved on a separate structure. The client went and got a new roof on before filing the claim and didn’t take any pictures. The claim was denied.

The simple lesson here is at the very least, if there is damage, take pictures. I would also recommend if you want to use your insurance, determine if there might be coverage and then file the claim. The insurance companies have an entire process lined up to help clients fix whatever is damaged.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #100- Take Pictures of damage! appeared first on Dietz Agency.

The post Simply Explaining Insurance #100- Take Pictures of damage! appeared first on Dietz Agency.

Workers compensation is a policy that offers coverage for W2 employees who are injured while on the clock. The policy is designed to pay for medical expenses that accrue for the injury. It will also cover lost wages if the employee missed work.

There is a waiting period for lost wages. This waiting period varies from state to state. For example, Idaho’s waiting period is 5 days and the amount covered is 67% of the wages lost.

Check with your agent or contact the governing body who oversees workers compensation for your state to find the details of this coverage.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #99- Workers Comp waiting period appeared first on Dietz Agency.

The post Simply Explaining Insurance #99- Workers Comp waiting period appeared first on Dietz Agency.

In Idaho, we are having an influx of people moving here from out of state. Many of them are renting Uhauls to transport their belongings to their new home. Do they need to buy the coverage from the rental truck facility when the pick up the truck?

My best and simplest answer to that is “yes”. Most auto insurance policies from most carriers will transfer to a rental vehicle if the vehicle is of like size. This is based on gross vehicle weight and if you dig into the policy, you will likely find an actual maximum weight that is allowable on the policy.

The types of trucks rented to move generally are heavier than the maximum allowable weight on a personal auto policy. Therefore coverage would not be transferrable to the truck.

As always, it is smart to call your agent to verify as policies vary from company to company and state to state.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #98- Coverage for a Uhaul appeared first on Dietz Agency.

The post Simply Explaining Insurance #98- Coverage for a Uhaul appeared first on Dietz Agency.

It continues to amaze me how after 15 years, I am still running into situations that are new. I have actually been asked this question in the past but never had a client go through it. In episode 70, we talked about this happening and almost a year later, it did.

I had a client whose neighbor had a tree drop a large branch onto their roof causing damage. The situation played out exactly as I was told. His homeowners policy will cover the damage. He wanted to used his neighbor’s policy because he felt she was negligent.

He had multiple conversations over the past few years about trimming this tree back. The missing piece here is proof. He couldn’t prove that he has spoken to her. There was no paper trail or emails to reference. That is ultimately what the insurance company is going to need to see to prove negligence.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #97- Neighbors tree Vs. Roof appeared first on Dietz Agency.

The post Simply Explaining Insurance #97- Neighbors tree Vs. Roof appeared first on Dietz Agency.

I had a client call in this week and inform me that they put a new roof on their house and I am glad they did. This allowed me to update the information of their home in our system and it actually lowered their premium.

If you have made any major changes or upgrades to your home, you will want to let your insurance agent know. Things like a new roof, new electrical, new plumbing, if you upgraded your kitchen, put on new siding, installed new floors, added solar panels to your roof, etc are all things to let us know about.

In some instances, these upgrades will lower the cost to insure your house. At the same time, the value of your home may have been increased and we will want that reflected in the amount of coverage we have on your house. If the house is going to now cost more to rebuild or fix, it will need to be shown in the policy.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

Simply Explaining Insurance on Spotify.

On Stitcher

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Simply Explaining Insurance #96- Have you upgraded your house? appeared first on Dietz Agency.

The post Simply Explaining Insurance #96- Have you upgraded your house? appeared first on Dietz Agency.