Simply Explaining Insurance

Claims can tough. I get calls every week from clients telling me that there is damage somewhere and asking if there is coverage. Unfortunately, that question is never easily answered.

What I help a client with, is determining the source of loss. If there is water damage, where did the water come from? Was it sudden and accidental or did it happen over time? The roof is leaking. What caused the roof to leak? Was it a bad storm or ice dam or did the roofer make a mistake upon installation?

It is only when these questions are answered, can we determine if there is coverage in your policy. Remember, neglect, wear and tear, and faulty installation are excluded from most homeowners policies. We suggest doing what you need to do to prevent further damage.

Next, have an expert in the proper field, come out and determine what caused the damage. Relay that information to your agent and an educated decision can be made on whether to file the claim or not.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #77-Source of Damage appeared first on Dietz Agency.

The post Simply Explaining Insurance #77-Source of Damage appeared first on Dietz Agency.

My agency gets asked these questions often. “How are my things covered when I am moving”? Or, “Are my things covered in Storage?” If you have a homeowners policy in place, the simple answer is “yes.”

There is situation where your belongings may only covered up to 10% of what your homeowners policy says. It does not apply to storage facilities or moving. If you have belongings in a secondary residence, and that residence does not have a policy on it (my claims supervisor calls this the “cabin rule”), only 10% of your belongings will covered from your primary homeowners policy.

Should you buy the coverage that the moving company is going to offer to you when you move? If you have no homeowners policy or renters policy in force, I would urge you to buy what they offer. If you do have one in force, I think it’s still worth considering. In the event that something does happen during transit, you will avoid a claim on your policy and paying out your deductible. Plus if something breaks or gets damaged, it might not be something you would want to claim on your homeowners policy. The cost to fix or replace may be below your deductible.

See how much it costs to have the moving company cover your stuff, and do what feels right to you.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insuance #76- Moving and Storage appeared first on Dietz Agency.

The post Simply Explaining Insuance #76- Moving and Storage appeared first on Dietz Agency.

The agreement you have with an insurance company to insure your autos or home is a two sided mutually agreed upon situation. If either side wants to bow out, they have the right to do so.

We see this more often on the consumer side when a client chooses to change companies. It can be also be done by the company. I recently had a situation where a client was non-renewed because it was discovered through a claim, that his roof was rotting out.

The claim wasn’t covered (see dryrot podcast episode) and the company recognized this was no longer an acceptable risk and non renewed them . By law, the company has to give a proper amount of time to find another policy and in this case it was 8 weeks.

It is the responsibility of the homeowner to do their best to keep their home safe. If it is neglected or regular wear and tear isn’t repaired, the company can walk away. Statistically, homes with existing damage are the source of more claims. It’s a business decision, not personal.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #75- Nonrenewals appeared first on Dietz Agency.

The post Simply Explaining Insurance #75- Nonrenewals appeared first on Dietz Agency.

Deductibles are a part of just about every type of insurance policy. It is what you will pay in the event of a claim and the higher your deductible, the lower your premium.

I think it’s smart to look at your options and run the numbers. In some cases, raising a deductible on your auto from $500 to $1500 could save hundreds of dollars per year on your insurance.

You could carry a very high deductible on your home. I had a conversation with a client who wanted me to run some different deductible options on her house. We have a ton of options. $500, $1000, $1500, $2500, $5000, $7500, $10000. We also have percent deductibles. You can pick a 1%-5% deductible. This means your deductible would be 1% of the building coverage of your home.

If your house is covered for $500,000 and carried a 1% deductible, you would have $5000 deductible. You could carry a 5% deductible which would make it a $25,000 deductible. This could lower your premium 70%.

You can also carry split deductibles. For example, $1000 deductible but $2500 for wind and hail. All kinds of fun options are available for you out there!

It’s a good idea to talk to your agent and calculate which package is right for you!

The post Simply Explaining Insurance #74- Deductibles appeared first on Dietz Agency.

The post Simply Explaining Insurance #74- Deductibles appeared first on Dietz Agency.

The insurance industry pours billions of dollars a year into advertising and their ads are unavoidable. The issue I have with these ads, is while they are undeniably entertaining, they have no caloric value.

While they are entertaining, I think they are a little misleading. Companies saying it’s easy to get a quote and a policy online. Almost every company is capable of this.

Companies saying 15 minutes can save you 15%. The key word in that ad is “can”. They can also be 15% higher.

Companies saying that if you have cut rate insurance, you might not have coverage. Auto insurance doesn’t vary much AT ALL between companies. Even “cut rate” companies.

I am on a crusade to have people understand how their insurance really works and these ads don’t do anything to help the general public achieve that. It’s why you have a good agent who is there for you from the beginning and when the sh*t hits the fan.

The post Simply Explaining Insurance #73- Insurance Commercials appeared first on Dietz Agency.

The post Simply Explaining Insurance #73- Insurance Commercials appeared first on Dietz Agency.

The individual health insurance space is a confusing landscape to navigate.  It’s important to consult a licensed professional when discussing options and plans.  On this podcast I talk about a health plan that is available that many are unaware of.  Short term health insurance.

These plans offer really nice coverage at an affordable price.  They aren’t designed to replace the plans available that are compliant with the Affordable Care Act (ACA) or Obamacare, but that isn’t stopping some families for looking at this as an option.

All plans are going to differ from state to state and I can only speak to the ones that I am familiar with her in Idaho.  The short term plans available in Idaho, are good for as little as one month and as long as 10 months. The deductibles are as low as $500.  Some offer prescription coverage, and they are generally 80/20 plans. This means the insurance will pay for 80% of health expenses after deductible.

The main difference between these plans and plans on the ACA, is that these do not cover pre existing conditions.  They also have a $1,000,000 lifetime max benefit.

Before considering purchasing a plan like this, I urge you to consult a licensed insurance professional and go over all of the benefits of the plan.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #72- Short term health insurance appeared first on Dietz Agency.

The post Simply Explaining Insurance #72- Short term health insurance appeared first on Dietz Agency.

Tis the season for health insurance and I have had a number of very good conversations with clients.  When most people think of health insurance, they think of three things:

These are good questions to ask, but there is one part of all of these plans that aren’t discussed enough.  What is the Maximum out of pocket?  This is the maximum amount of money you will spend in a 12 month period on your health care, not including premiums (as long as your care is in network and it’s in your network, blah blah blah).  Also Maximum out of pocket coverage is about the same regardless of what plan you have. 

Let’s break this down.  There are three levels of coverage on most health plans.

Example.  You have a $50,000 hospital bill.  Your deductible is $3000 (pretty low these days), Co insurance is 30%.  Maximum out of pocket it $8000.  You would pay $3000 to reach your deductible.  This leaves a balance of $47,000.  Insurance will cover 70% of that or, $32,900.  Which leave you a bill of $14,100.  But your max out of pocket is $8000 so that is all you would pay.  You will pay $8000 for that $50,000 bill.

Let’s look at example #2.  Lets say you carry a high deductible, $7500!  And your co insurance is 40%, your Max out of pocket is $8000 and you have the same hospital bill. What will you pay?  You will pay your deductible which will leave $42,500 left over.  Insurance will pay 60% of that or $25,500.  Which leave you a balance of $17,000.  BUT your Out of pocket max is $8000 so that is what you would pay.

What I am getting at here- is in situations where you are staring at a large medical bill, you will end up paying the same amount out of pocket regardless of what plan you have.  That lower deductible plan may be costing you $3000 more in premium every year.  Does that make sense for your health needs?

There are some plans where people need to pay more and you have to look at more than just this factor.  Prescription cost can play a huge role in what plan you choose.  I am just saying that this part of the conversation is overlooked.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #71- Out of Pocket Max appeared first on Dietz Agency.

The post Simply Explaining Insurance #71- Out of Pocket Max appeared first on Dietz Agency.

If your tree falls on your neighbors house and no one hears it, is it covered?

I jest a little, but this question gets asked regularly in my agency.  I did some research with a claims supervisor and found out that trees falling on houses, are considered an act of god.   Acts of god are covered on your homeowners policy much like a wind storm or hail storm.

Whosoever house is damaged is whose policy is used.  If your neighbors tree falls on your house, it’s your policy that is used to fix the damage.  I am sure you are wondering, what if the tree was dead and my neighbor is negligent?  You would need to prove with a paper trail, that this topic has been discussed between you and your neighbor. Then you would have to show that nothing was done to rectify a potential hazard.

I discuss a few more scenarios in this 7 minute podcast, including, public trees, trees damaging cars, and how to cover trees on your policy from wind and hail.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #70- Trees falling on houses appeared first on Dietz Agency.

The post Simply Explaining Insurance #70- Trees falling on houses appeared first on Dietz Agency.

If your garage door closed on your car and smashes the rear window of your car is this covered as a

Ill bet you’re wrong.  Find the answer in the podcast or audio embedded in the blog below.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #69- Comprehensive vs. collision appeared first on Dietz Agency.

The post Simply Explaining Insurance #69- Comprehensive vs. collision appeared first on Dietz Agency.

In this episode I talk about the repercussions of filing an auto insurance claim. I have had a few instances in my career where a client had filed a claim, or had one filed against them and they wanted it withdrawn.

This is the rub of my business. Everyone is paying for a product they don’t want to use.  The fact is, filling an at fault claim can impact what you pay because the insurance company charges you by how risky they think you are using numerous metrics. If you are filing claims you are statistically more likely to file another one and your premiums will go up.

It’s really that simple. This problem is, if a claim is filed and a customer decides to withdraw it and take care of it themselves, they can’t.  Why not Matt?  Why can’t they pay for it themselves? They actually can pay for it and have a $0 payout on a claim.  BUT, the insurance company knows the act of the at fault accident happened and you cannot unring that bell.

Once the cat is out of the bag, it changes the way the insurance company measures your risk and your premiums may increase.  Your policy may have accident forgiveness on it in which case there wouldn’t be an increase.  Or, some insurance companies won’t trigger a premium increase unless they pay out more than $800 on a claim.

In any case, it’s wise to get the full picture before filing a claim and that should start with calling your agent.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Stitcher

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

The post Simply Explaining Insurance #68- Withdrawing Claims appeared first on Dietz Agency.

The post Simply Explaining Insurance #68- Withdrawing Claims appeared first on Dietz Agency.