Simply Explaining Insurance

.I have had some uncomfortable conversations with some clients regarding their life insurance.  It has come from clients I have absorbed over time from other agencies. These clients weren’t counseled properly on how to fund their permanent life insurance policy.

Permanent life policies are a different animal and they require a small amount of constant work.  What ends up happening, is the client funds this policy, but they underfund it.  You can start these policies with a small monthly amount but over time, the cost of insurance in some of these (mainly universal policies) will increase.

These policies have a separate account for cash.  That cash can grow over time.  When the policy is funded properly, it can grow ALOT.  If it is underfunded and you are just essentially taking care of the cost of insurance, it will never do what it is intended to do.  If this is your strategy, term life insurance is the best way to go.

The best course of action, is to overfund these polices from the start so that the cash grows.  As the cash grows, the magic of compounding interest kicks in, and the interest and earnings will greatly outpace the increase in insurance costs later in life.  It is highly recommended that you get with your insurance agent regularly, to make sure that these polices are on pace to perform properly for you.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #57- The #1 Life insurance mistake appeared first on Dietz Agency.

The post Simply Explaining Insurance #57- The #1 Life insurance mistake appeared first on Dietz Agency.

If you own a camper or a trailer, it’s important to make sure you have it covered properly.  There are a few ways you can do this.  With my company, you can add it directly to an auto on your auto policy and add comprehensive or collision coverage to the camper or trailer.  OR if you don’t want to add any coverage to it, that is fine as well.  The liability from the auto will extend to the camper or trailer in the event of an accident.

You can also cover it on it’s own policy.  When you do this, there are some additional options that are available.  Coverage like, vacation liability, gap coverage, additional living expense and more are available.  In some instances, it might even be less expensive to get a stand alone policy so it is wise to look at it both ways.

The one time you want to have it insured by itself and not attached to an auto policy, is if you are going to be staying in the camper for an extended period of time.  Say more than 30 days.

Also, if you are going to loan your camper to a friend for the weekend, the coverage will come from your policy, not there’s.  You are the one with insurable interest, meaning your friend has so financial attachment to the camper.  You are assuming the risk by allowing them to borrow it.

In any event, get with your agent to discuss the proper options for covering your camper or trailer.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #56- Campers and Trailers appeared first on Dietz Agency.

The post Simply Explaining Insurance #56- Campers and Trailers appeared first on Dietz Agency.

When you purchase a new homeowners insurance policy, it is common for the insurance company to come out and take a lap around the outside of your house and inspect it.  Why do they do this?  To see if there are any existing issues that might lead to future claims.  If they see certain things, they may decline the policy.

What do they look for?  They look at the roof first.  The roof is one of the most important things protecting a house.  If there are any missing shingles, or lifting or curling shingles the insurance company may decline the policy.

They look for any wear and tear that hasn’t been fixed.  Pealing paint for example is a sign of neglect and they may decline.  Torn screens or broken windows are signs of neglect as well.  Homes with pealing paint and broken screens/windows statistically have more claims files against them.

They will look for things that will lead to an existing liability claim.  For example stairs leading up to the house without a railing.  Unfenced trampolines or pools are also things that insurance companies don’t like.  These things are called “attractive nuisances”.  They might attract kids or teenagers to enter your property and hurting themselves.

It’s a good idea to be honest with your new agent and disclose this information before paying for a policy.  If a main insurance carrier declines a risk, there are other companies that will take these risks, but they generally are more expensive.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #55- Home Inspections appeared first on Dietz Agency.

The post Simply Explaining Insurance #55- Home Inspections appeared first on Dietz Agency.

Should you carry a commercial auto insurance policy?  This is a question you should ask yourself if you are self employed, or if you own a business.

A regular personal lines auto policy is there for an average daily use vehicle.  It is for people who commute to and from work, run errands, take the kids to school and activities, going to social events, etc.

Anything on top of that, you want to have a conversation with your insurance agent.  If you are driving your car for work to go to sales meetings there is a provision on some personal line policies called “business use”.  This expands the coverage on the policy.

If you are taking clients in your car, like a realtor, you want to make sure that you have enough coverage on your policy, but your personal line policy, may still be right for you.

You should carry a commercial policy if the vehicle is owned by the business or if the vehicle is used by employees for the business.  If you are going to and from job sites every day, or hauling equipment for the company, you should have a commercial policy.

Listen to the podcast to hear my thoughts on when to consider covering your vehicle on a commercial policy.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #54- Commercial auto insurance? appeared first on Dietz Agency.

The post Simply Explaining Insurance #54- Commercial auto insurance? appeared first on Dietz Agency.

This is an area where business owners have some confusion.  How to handle workers compensation when you hire a 1099 subcontractor.  There has to be workers comp in force whenever you are exchanging money for labor.

Employers can hire workers as an employee, or as a subcontractor. I would encourage you to consult an accountant when deciding how to pay for your labor.  There are very specific qualification that need to be met if you are going to sub out work.

If you do hire a subcontractor, it’s your responsibility as a business owner to ensure there is workers comp in force at the time of a job.  There are two ways to satisfy this.

If you hire a sub, and they don’t have workers comp in force, this will be flushed out in your annual payroll audit.  A question on the audit is, “Did you hire subcontractors”.  If you say “yes”, you have to provide proof through certificates of insurance.  If you can’t provide them, you will end up being charged for their payroll on your audit.  This can be a heavy expense depending on your business and how much you paid them.

Make sure you get this one right. It’s a pricey lesson to learn if you misstep.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #53- Workers comp and subcontractors appeared first on Dietz Agency.

The post Simply Explaining Insurance #53- Workers comp and subcontractors appeared first on Dietz Agency.

Slow leaks in a home are the worst.  They generally not covered on most homeowners policies.  Water is covered from when the loss is “sudden and unexpected” like a burst pipe.  Things that are generally not covered are wear and tear and neglect.

As houses age, things break down.  It is the obligation of the homeowner to do what is necessary to keep it safe.  What are some things that can be done to locate slow leaks?  Here is a great 6 minute video showing some thing you can do to see if you have a slow leak.  Things like looking at your water meter, checking your water bill, stains on the ceiling or floor, checking your crawlspace for water and more.

This is a frustrating conversation for all parties involved if there is damage that isn’t covered so I wanted to share some things that you can do as a homeowner to prevent these things from happening.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #52- Slow Leaks appeared first on Dietz Agency.

The post Simply Explaining Insurance #52- Slow Leaks appeared first on Dietz Agency.

It’s important to have coverage for your stuff.  Whether it is your personal property in your home, or your equipment for your business.  I encourage everyone to evaluate their coverage amount and at the same time, make sure that coverage is there for you if you need it off your premises.

On a personal lines policy, you will want to know if your personal property is covered if you have your things stored in a storage facility or a second home.

In your business, there is an extra line of coverage called “off premises property”.  Again, if you have you equipment stored off site, this coverage will need to be added and dialed in.  Your base policy, will cover your belongings, but it will exclude coverage if you have things stored off site.

There is another coverage called “blanket” coverage if you have multiple locations for your business.  If this options is selected, your equipment will be covered at any of the locations listed on the policy.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #51- Off Premises Property appeared first on Dietz Agency.

The post Simply Explaining Insurance #51- Off Premises Property appeared first on Dietz Agency.

Most people understand why it is important to keep your auto insurance in force.  It’s the law.  That doesn’t scare 1 out of 7 people out there who are driving around uninsured.  What you may not know, is there is a financial consequence to having a gap in your auto insurance.

People who have gaps in their auto insurance, file more claims.  It’s a statistical fact.  So if you let your insurance cancel, and go to get another policy, your premiums could be drastically different.

The length of the gap may be dependent on your state or your insurance company.  I know with my company, if your insurance lapses with us, you have 30 days to reinstate the policy and keep it going.  If you come to me with ANY gap from another company, I cannot write you in our preferred company.  We have to place you with a higher risk carrier.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #50. Prior Insurance appeared first on Dietz Agency.

The post Simply Explaining Insurance #50. Prior Insurance appeared first on Dietz Agency.

There are two coverages inside of a commercial auto policies that you need to be aware of. Hired and non-owned auto will protect your business if you and/or your employees are in an accident.

Hired auto will cover you if you are renting a car for business.  The liability from your policy will transfer over if you are in an at fault accident.  There is another coverage available in some states called, “Hired physical damage” which will cover the car itself.  It’s important to know if you have this on your policy.

Non-owned auto, will cover your employees if they are driving their car for business purposes.  Their vehicle will not be covered but the liability from your business policy will transfer over to cover any medical expenses or property damage from the resulting at-fault accident your employee is in.

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Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #49. Hired and Non owned Auto appeared first on Dietz Agency.

The post Simply Explaining Insurance #49. Hired and Non owned Auto appeared first on Dietz Agency.

Workers compensation is a need for any company that has W2 employees.  It is a policy to protect your employees if they are injured on the job.  The pricing on a workers compensation policy can be confusing at first, but it’s really pretty simple when it is explained.

There is your payroll, your industry rate, and two options to earn discounts or surcharges.  The first is called an experience mod.  In the simplest terms, you can earn discounts if you don’t file many or any claims.

The second is called a schedule mod.  This is the only opportunity the insurance company has to influence the rate.  If they think you are run a safe business, they can drop your rate. They can also raise it if they think you are a higher than average risk.

There is a also a discount in some states called the drug and alcohol credit.  If you have a written drug and alcohol policy stating the consequences to showing up to work drunk or high, you can get a discount on your WC premium.

My Website

Music by Roger Clyne and the Peacemakers

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The post Simply Explaining Insurance #48 Saving on Workers Compensation appeared first on Dietz Agency.

The post Simply Explaining Insurance #48 Saving on Workers Compensation appeared first on Dietz Agency.