Lately, if you live in the Pacific Northwest you have probably heard the growing chatter on the long overdue and expected five minute long, 9.2 Cascadia Earthquake. I mentioned earthquakes in an earlier blog in 2014. It's looking like it's going to be ugly. 

The news about the tsunami wave prediction has since gotten even worse and the government, which was once forecasting 35' tsunami wave height potential from the big Cascadia quake is now predicting 100 foot tsunami wave heights! 

Not that I need to alarm you, because this news should alarm you enough, but it's important to remember that wave height on tsunamis is not just a crashing wave, but a flood of water (up to 60 miles long) at that height, behind the wave. Tsunami waves may continue for many hours after the first wave strikes.

So, you may be thinking that there isn't much you can do to protect yourself from this disaster. Or you may consider flood insurance to be too expensive, not necessarily. There are options. 

The most common option people use to protect their home is through flood insurance, provided by the government (FEMA). Most people will typically try to cover their entire home's value, if possible up to $250,000 rebuild cost and $100,000 contents cost. Others, who are on a stretched budget can chose to insure less for less cost. The point here is that some coverage is always better then no coverage.

Another option for flood insurance is to procure coverage through a private insurance company, outside of  FEMA's National Flood Insurance Program. Flood insurance provided through a private insurance company typically costs more; but one can also insure their home for more than than FEMA's flood coverage limit of $250,000 (on homes) and there is often no 30-day waiting period, like the government's flood program. One could also decide to insure against landslides and earthquakes with the same company, for a bit more.  

My own house is at 100' elevation and near the hospital in Coos Bay, not a flood zone. After considering the projected 8'-14' elevation drop and the possibility for 100' tsunami waves, I found myself  purchasing flood insurance (last night). It's good peace of mind knowing I have one less thing to worry about.  

Remember your house is not protected from a major flood, unless you sought out and paid for a flood insurance policy. Don't assume that you are covered, unless you have proof that you are covered. 

Like I said in my blog regarding earthquakes, please don't wait for quake or a tsunami warning to call your insurance agent, it's too late at that point! Insurance companies prohibit agents from selling insurance in these last minute situations. Think about it now, while I have your attention and if you are interested in avoiding future financial calamity from natural disasters feel free to give me a call (or your agent) now to get a quote. 

While you are thinking about impending doom, please remember to stock up on your drinking water, food and emergency shelter supplies.







  

    

Much has been already been written about the topic of whether or not to purchase rental car insurance, so I will just highlight a few points.

When renting a car you have about 3 options regarding insurance to consider:

1. You can purchase the insurance that the rental agency is offering. This option is usually touted at the rental agency as the best option if you want to keep an unfortunate accident involving their rental car off your record. I'm not certain that is true, but if so that would make it more appealing. The next reason why someone would consider this option is that it covers you for the (loss of use) lost revenue that the crashed car would have created for the rental company, if you hadn't wrecked it. Some kinds of auto policies and credit cards do not cover for this expense. The rental agency insurance is typically the most expensive way to cover your insurance need.

2. The next option for insuring your rental car is to deny all insurance offered by the rental agency and have your credit card cover the insurance risk. This option is typically the least expensive, because it is included by most credit cards for no additional cost, with exceptions and certain exclusions. Some of these exclusions and exceptions involve the make and model of the car and if it is rented in the USA or outside the country. Verify that the insurance provided by the credit card covers "loss of use". 

3. The last of the common options for insuring your rental vehicle is to have your existing car insurance cover liability and damage. Your car insurance policy will not likely cover an overseas rental. However, if you have an umbrella policy it may very well cover the liability risk. You will need to check with your insurance carrier or agent for details on this. Regardless of where the rental will be driven, you will want to verify that your auto policy will cover for "loss of use" to the rental company, should it be needed.

My family just returned from a 3 week tour of Europe. Our family rented a car in Ireland and rented another when we drove extensively on and off the highway in the Netherlands, Germany and France. In both cases I planned ahead and learned that my Visa card, which I paid the rental expense with would provide insurance (including loss of use) on the vehicle models we planned to rent. My $1 million umbrella policy would cover any additional liability coverage, if it were needed. 

It is important to think ahead on this matter, people are generally at greater risk of putting their insurance to work when they are driving an unfamiliar car in an unfamiliar area.




  

As they say in the insurance business, if you don't know what an SR-22 is, you probably don't need it. An SR-22 doesn't refer to a Mexican Spy (Sr.22) or any particular highway. In this instance, it merely refers to a Certificate of Financial Responsibility. This is added onto certain policies as an endorsement, when required by the state, as a condition for some to maintain driving privileges. 

Rejoice, if you didn't know what an SR-22 is! Like most people, it's likely because the state hasn't required you to have one.

An SR-22 is typically required for those who have let their insurance lapse, while still driving or have been nabbed while driving under the influence, among other possibilities. The state of Oregon audits random drivers to make sure that they have coverage and have had coverage at all times. I, myself, was audited at one time and asked to show proof of insurance for a certain period of time on a car that I once owned for a short time, but had long since sold. Fortunately, I always have good coverage. 

An SR-22 requires the person to maintain insurance liability for a certain length of time (3 years in Oregon and most states) with no lapses in coverage. If there is a lapse, the insurance carrier is required to notify the DMV . A lapse typically results in suspension of the license until the SR-22 time is passed, unless it is immediately renewed. The SR-22 requirement may start all over again if one is caught driving without insurance coverage. Getting caught by the police while driving uninsured can result in the immediate revocation of license and impounding of vehicle .    

The actual cost of having an SR-22 added to your insurance coverage varies, but was only $8 more on the last customer SR-22 I wrote in Oregon. The real expense isn't adding the SR-22, it's the situation that causes you to need one, so keep up your coverage!   

 

The last article I wrote covered why one would need commercial insurance when using your personal car to make money delivering people or things. This subject I feel fits right in there, with the same type of thinking and popularity. 

If you want to know if your home owners coverage will cover this sort of activity, the answer is almost certainly No. If you guessed "NO" was the answer based on the last blog article, you are getting the hang of this. The reason is much the same, insurance companies understand that having more people passing through your home presents more opportunities for claims. These claims could be from falls, thefts, dog bites, electrocution and fires, among other possible hazards.

So, while your homeowners insurance may not be the way to go with a B&B you can relax because there are commercial policies which are created specifically for this use. 

Today the newest fad in transportation is ride sharing. Some of these programs are available as apps on your phone. 

Carpooling and limo/taxi services are distinctly different creatures which are treated very differently in the insurance world. The biggest difference is that taxi/limo service is specifically excluded from coverage on private auto policies., whereas carpooling can be covered (talk to your agent) under your personal auto coverage.

As far as insurance carriers are concerned, if you are receiving money or profiting in anyway to drive people from one location to another you are operating a taxi or limo.  

One popular rideshare/taxi site says that they make sure that the drivers who take part in the program are insured and licensed. Unfortunately, many pizza restaurants perform a similiar type of partial "check" on their delivery drivers, risking potentially disasterous results.

Unbeknownst to most of these paid rideshare drivers is that they fall into the same category as delivery drivers and taxis.  To put it simply, their insurance company could chose not to cover any claims because personal lines auto insurance specifically excludes these activities. This would be bad news for the driver who could be forced to pay out of pocket for any injury or deaths that occurs in or from their vehicle. Likewise, an injury could also leave a passenger vulnerable with no other avenue for recouping costs outside of suing the driver/owner.

Of course if the driver would like the proper insurance protection he or she would need to purchase commercial auto coverage. As you might imagine, this type of insurance is typically more money and occasional taxi use may not bring in enough bucks to justify. Not having the correct coverage will leave you and your passengers at extreme risk.

The same is true with other private vehicles being used for delivering pizza or newspapers that don't have commercial auto insurance, but one could argue that the potential for financial ruin is higher when passengers enter the equation. 


If you are considering using your vehicle to make revenue first consider all the costs involved and know that cutting corners on insurance could leave you and your passengers off the cliff to an unrecoverable financial wreck.

The commercials you see and hear on the TV and radio about popular (captive) insurance companies would have you believe that you are better off with them, over less known insurance alternatives offered  by an Independent insurance agency. 

The commercials typically show a disaster in the making or the aftermath and infer that the poor victim is better covered with their popular insurance company over a "cut rate insurance" company.  

I used to think that if I wanted the best coverage I would be better off with the largest, most well known and advertised insurance company.  That was before I started in the insurance business. 

I have since learned that there is nothing to these claims besides pure marketing. In fact I often work with many of these smaller and lesser known insurance companies.  Most of these companies I would consider premium companies, no doubt equal or superior in every way to what the larger carriers offer. Many of these smaller companies may be smaller and not known as well, but in many cases have been around longer and provide equal or better coverage, better service and equal or better pricing then all of the well known and advertised companies you see and hear everyday.

Don't wait for an accident to discover what you have been paying for. Take the time before an accident to see what your coverage really provides and get more protection for your money.    

Recent quakes have inspired me to mention the importance of having earthquake insurance. Most people don't take the time to prepare for disasters until it stares them in the face. In fact I would bet that right now, (if you are like most people) you don't have enough water to last you or your family even a few days "off the grid". Furthermore, you won't be inclined to prepare for such a scenario until an immediate threat motivates you. Am I right?
Some, see insurance as a gamble.  One might wonder what is purchased in return for their premium. I would point out that peace of mind can make it all worthwhile. 

Earthquake coverage is not standard on any home policy, it's added with an endorsement. As an insurance agent I can easily add this coverage to most homes, rental policies and businesses. However not all buildings will qualify for an earthquake coverage endorsement, without modifications. Sometimes the only modification is strapping the water heater, other times it may require a little more work, such as in securing the frame of the house to the foundation. Don't let this stand in your way,  more work and cost are in your future if you ever need EQ coverage and not have it.

In Oregon, especially here on the coast, I encourage every homeowner to have earthquake coverage. Here in the bay area experts warn that we are overdue for a 9.+ earthquake, with a drop in elevation of 8-14 feet . This disaster could very likely take your home and your job with it. Which raises the question, how would you like to pay for the rebuild, as you continue to make your mortgage payments, with possibly no job to help? Where would you stay and how much do you think that would cost ?


If you have earthquake coverage you would have:

1. Peace of Mind 

2. Money to rebuild or repair 

3. Money to pay for your new temporary relocation

4. Money for the contents lost or destroyed in your home

5. More Good Options for your future

Too many wait until a small earthquake or tremor strikes locally before calling their agent to attempt to add coverage. Insurance companies are always monitoring for threats from wild fires, floods, earthquakes, hurricanes, you name it. They, justifiably work hard to prevent fraud or reckless binding from happening, barring agents from binding coverage in zones with recent activity. The same goes for people who call, suddenly interested in flood insurance after a tsunami warning or watch is issued. It's too late!

Insurance is there, much like a protective barrier around you and everything you hold important. It protects you from the hazards you find most threatening. For some this threat is a life of poverty brought from a major liability claim (and a pack of skilled lawyers), for others it could be their reputation, way of life or health at stake. Whatever the threat,  a good defense requires foresight and strategy. Insurance is the barrier that you put in between these unfortunate situations and yourself. Your protective barrier is only as good as you make it.

So, what are you waiting for? Take the time now to make an appointment. While you are at it, start gathering your back-up supplies. You'll thank me later.

Everyone has heard that there are no free lunches, some are still finding this out.  People always ask if a claim will impact their driving record in one degree or another. The answer is unfortunately YES in almost every situation. 

All claims, whether your fault or not (with very few exceptions) do impact your current rating and will almost certainly impact any new insurance quotes you may seek. 

Claim amounts and frequency impact your rates. It's best to self insure (or cover it yourself) on the smaller issues and let your insurance cover the expensive damages which you cannot afford to cover.

The type of insurance you deal with can also affect your rate. When you get or give a small parking lot scuff or ding you should think twice before calling your agent or the provided "1-800" number to ask if you should claim or not. 

One meaningful difference between an Independent agent/broker and a Captive agent is that we have different obligations when it comes to your best interest. 

For example, (and from my from my experience) let's say you call into the carrier's toll free number or  speak to your captive agent.  As is typical, let's say the question is about whether you should make a claim on a parking lot scuff caused by you backing into another person's car.  Chances are very good that you will likely get that claim noted on your record, affecting your tier rating and possibly your premium for the next 3-5 years. 

If you instead decided to call me, as your independent agent/broker you will likely get the answer to your question answered and an understanding that a claim is not required from you in this situation, unless you had damage to your vehicle (from this incident) that you wished to have repaired.   

Both,  the insurance companies and their captive agents are often obligated to report such claims or coverage questions to their respective company, which carry consequences into the long term.  

Give me a call. I'm here to work for you! 


  

Every hour of the day, insureds discover situations that far exceed their policy limits. Some of these unfortunate people are those following state minimums for insurance. Others are finding that their $300,000-$500,000 coverage from their home or auto liability policies are still woefully inadequate when involving a serious injury or death.    

What are some everyday tragedies that could easily exhaust your current liability coverage? 

*Cargo falling off your vehicle and resulting in serious harm to others, directly or indirectly

*Striking a pedestrian or bicyclist with your vehicle

*Accidentally backing over a person

*Being involved in an at fault accident with passengers in your vehicle that result in serious injuries or death

*Your spouse or your teenage driver could also be responsible for any of the above situations  

*An adult or child drowning in your pool, koi pond or hot tub

* A guest suffering a catastrophic injury or death from falling down the stairs or off a balcony

The reason why I mention these particular examples is to highlight some of the many ways in which people can find their life savings, most of their assets and their income (through garnishment) wiped out or threatened in a matter of seconds. It no longer takes a pileup of Ferraris to cause a million dollars damage. Any of the incidents I mentioned could easily reach that amount and exceed it.

A one million dollar umbrella on average costs around $130-$300 a year. This isn't much especially when considering that it adds an extra one million to your current home and auto liability policies. It often includes defense costs on your behalf; most anywhere in the world you may need it. Higher coverage is available. 

Umbrellas get their name from what they do. They simply provide liability coverage over and above your standard auto and home insurance.  Outside of serious accidents, umbrellas also cover personal injury claims, such as claims from Defamation of character, slander, libel and false arrest.      

Intentional acts or crimes by the insured are typically excluded from liability coverage. 


After all, you need not go looking for trouble, in time it may find you. The question is, should it find you, will you have an umbrella or will you get soaked?