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?   

Did you know that in most communities it is the property owners who are responsible for their sidewalk's condition? This is true!

For example, someone falls and is injured on the sidewalk in front of your house. It may be your homeowner's medical expenses coverage that is your wallet's first defense. This coverage is optional on most HO policies and runs generally from $1000- $10,000 in coverage. Medical expenses coverage is designed to pay out for these kinds of claims with no fault attached. If the injury is serious or the injured party succumbs to his or her injuries, your homeowner's liability limit or your personal umbrella coverage may be the only thing standing between you and financial ruin.

Umbrella policies serve as extra liability coverage, that fills in gaps that may not be covered in the other policy coverage you may have. In this case it would work in addition to your Home owners liability and is an optional coverage. 

In my opinion, the best way to help prevent a large claim of this sort is to maintain your sidewalk and your property. The fall injury hazard increases if your sidewalk is in disrepair or if not maintained for autumn and winter conditions, which make sidewalks extra slippery.  Other hazards may include personal clutter on sidewalks, such as tools or toys. Unkept shrubs or trees along sidewalks can pose a serious hazard with injuries possible to the eyes, neck or face of walkers or joggers- especially at night. A regular, periodic check goes a long way. 

Are you are unsure of your liability limits or feel they may not be high enough? Feel free to give me a call anytime so we can schedule an appointment to look over your coverage together. This is something you don't want to put off any longer then needed.