Jan 29

Why should I buy life insurance?

Life insurance

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

  1. Replace income for dependents
    If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.
  2. Pay final expenses
    Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
  3. Create an inheritance for your heirs
    Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
  4. Pay federal “death” taxes and state “death” taxes
    Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.
  5. Make significant charitable contributions
    By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
  6. Create a source of savings
    Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).

Source: Insurance Information Institute http://www.iii.org/

Jan 18

Do You Need Insurance For Your Drone?

Don’t Get “Drone” for a Loss this Holiday Season

Be Sure You’re Covered Before Taking to the Skies with Your New Flying Gadget

drone, drones

More than a million drones are expected to land under Christmas trees this year, according to the Federal Aviation Administration (FAA). Piloting a drone might be a dream for kids of all ages, but before you take flight, contact your Insurance Professional.

Recently, the FAA has mandated registration for most drones and has issued guidelines for drone hobbyists. But what happens in the event of unplanned equipment failure, or pilot error? (After all, most drone and model aircraft operators start out with little or no aviation experience.) Also, with some models tipping the scales at up to 55 pounds, rogue drones can pose a significant threat to people and property, which is why it’s always a smart call to add insurance to your pre-flight checklist.

Below are insurance coverages and how they are likely to apply. Keep in mind all claims are handled on a case-by-case basis, and there may be more exclusions and conditions that apply as drone technology evolves. Finally, don’t expect coverage if you’re operating your drone in the commission of illegal activities.

Homeowners and Renters Insurance

Drones are most likely covered under a homeowners insurance policy (subject to a deductible). Coverage also applies to renters insurance.According to the latest I.I.I. PulsePoints survey, only 40 percent of renters in the United States have this coverage, so it’s imperative that people who rent purchase this coverage before operating a drone, as their landlord’s insurance policy will not protect them.

Liability

The liability portion of your homeowners or renters policy may cover you against lawsuits for bodily injury or property damage that you or family members cause to other people with a drone. It may also cover privacy issues–for example if your drone inadvertently takes pictures or videotapes a neighbor who then sues you. It will not cover any intentional invasion of privacy.

No-fault medical coverage

Your policy may provide no-fault medical coverage if a friend or neighbor is accidentally injured by your drone. (Coverage levels vary, so check with your Insurance Professional.) But be aware that this coverage will not pay medical bills for your family members or pets if they are injured by your drone.

Theft or loss of a drone

While the cost of a drone can be as low as $40, the cost of more elaborate ones with UHD video recording, GPS navigation, etc., can soar higher than $2,000, so it’s important to review your policy or talk to your Insurance Professional to determine if your coverage is sufficient to replace the drone if it is stolen. (A deductible may also apply.)

Auto Insurance

If your drone crash-lands into your car, damage may be covered under your auto insurance if you purchased optional comprehensive insurance. (Comprehensive insurance covers damage to a car from fallen objects and other disasters, subject to a deductible).

Commercial Insurance

Damage or injuries caused by a drone used for commercial (i.e., business) purposes are not covered by a standard homeowners or renter’s insurance policy. If you are operating a drone for commercial purposes, contact your insurance broker to make sure that you have the appropriate types and amounts of insurance coverage.

Sure, the sky’s the limit for drone operators (well, below 400 feet); however, anyone operating a recreational drone without the right insurance risks exposing themselves to unlimited personal liability.

For more information on drone regulations and registration information, fly on over to the Federal Aviation Administration.

Source: Insurance Information Institute http://www.iii.org

Jan 13

Five Insurance Mistakes to Avoid… And Still Save Money

Piggy Bank

 We are all concerned with saving money and it is important to shop around when looking for insurance coverage. However, simply reducing your coverage or dropping important coverages altogether can leave you dangerously underinsured in the event of a disaster.

Following are the five biggest auto, home, flood and renters insurance mistakes consumers can make, along with suggestions to avert those pitfalls while still saving money:

1. Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.

2. Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.

3. Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas. Furthermore with the significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance.

A better way to save: Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Additional information on flood insurance can be found at www.FloodSmart.gov.

4. Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued—and those costs may be steep.

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

5. Neglecting to buy renters insurance. A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.

Source: Insurance Information Institute http://www.iii.org/

Jan 11

Credit and Insurance Scores

Insurance scores and credit scores differ. Credit scores predict credit delinquency while insurance scores predict insurance losses. Both are calculated from information in a credit report, such as outstanding debt, bankruptcies, length of credit history, collections, new applications for credit, number of credit accounts in use, and timeliness of debt repayment. Insurers or scoring agencies then calculate the insurance or credit score by assigning differing weights to the favorable or unfavorable information in the credit report. Information such as income, ethnic group, age, gender, disability, religion, address, marital status and nationality are not considered when calculating an insurance score.

Credit and insurance scores measure how well individuals manage their money—not how much money they make. And actuarial studies show that how a person manages his or her financial affairs is a good predictor of insurance claims. Statistically, people with a low insurance score are more likely to file a claim.

The good news is, most people have good credit and most people will pay less for insurance than they would if insurance scores weren’t considered.

Source: Insurance Information Institute http://www.iii.org/

Jan 07

Insurance for the Small and Medium-sized Business Owner

Insurance for the Small and Medium-sized Business Owner

A Business Owner Policy, or BOP, may be what your need as a small or medium-sized business owner.  A BOP covers your business for property and liability and helps keep your assets safe.  Learn more in this video produced by Russell Productions in NYC in association with the I.I.I.

Source: Insurance Information Institute http://www.iii.org/

Jan 05

Water and Flood Damage: What Is and Is Not Covered

 

Source: Insurance Information Institute http://www.iii.org/

Dec 23

Small Business Safety – Part 2

Workers’ Compensation: Why it’s important for Small Businesses

Writing a business plan, choosing a business location, financing your business, obtaining a tax identification number, business licenses and permits seems like a long list and a lot of work. Even after all those requirements are completed, there is still one very important element missing—Workers’ Compensation insurance. Not only is Workers’ Compensation insurance required in most states, it’s also important to help protect both you and your employees from the unexpected.  Read more here…http://blog.foremost.com/workers-compensation-why-its-important-for-small-businesses.asp

Dec 21

The Insurance Shop Offers Tips to Help You Save on Auto Insurance

Purchasing the auto insurance that is right for you can be confusing, especially for first-time buyers. By learning the basics on how to get the most for your money, you can save on your auto insurance and feel confident you have adequate coverage. The Insurance Shop and Travelers, a leading provider of auto and homeowners insurance, offer these tips to lead you in the right direction when you purchase your car insurance.

  • Be a safe driver. Drivers with good driving records can save as much as 60 percent over drivers who cause accidents.
  • Enroll in a driving class. Drivers who complete a state-approved defensive driving course, or drivers under the age of 21 who take a driver training course, could qualify for savings.
  • Buy a car that includes safety features such as anti-lock brakes, alarms or other security features, airbags, and automatic seat belts.
  • Choose a higher deductible (what you pay before your insurance policy kicks in), which can mean paying less for your policy.
  • Eliminate unnecessary coverages. If you drive an older car with little cash value, consider eliminating “collision” or “comprehensive” coverage, which pays for damage to or theft of your car.
  • Insure more than one car with the same company, and you may be eligible for savings.
  • Insure your car and home with the same company. You could save money if you have more than one type of policy with the same insurance company (for example, an auto policy and a homeowner’s policy). The more good business you give the company, the more valuable you are as a customer.
  • Look for low-mileage discounts if you car pool or do not put a lot of miles on your car annually.
  • Check for student discounts such as a good student credit for maintaining a B average, or if a driver in your household is living away at school and not driving as much.
  • Buy a safer car that will cost less to repair and less to insure. Check crash-test reports, repair records and manufacturer recalls of any car you are considering.  A consumer protection magazine can be very useful or check car sites on the Internet.

 

Established in 1969, The Insurance Shop is an independent insurance agency offering a full range of insurance products including AUTO, HOME, BUSINESS, LIFE, and more.  For information and quotes on insurance coverage, please visit The Insurance Shop at 7143 Henry Clay Blvd., Liverpool, NY 13088 or call 315-457-1511.

 

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business.  The company’s diverse business lines offer its global customers a wide range of coverage sold primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has operations in the U.S., Canada, U.K. and Ireland. For more information, visit www.travelers.com.

Dec 16

Small Business Safety – Part 1

Protect Yourself Against Phishing

If you’re a busy person who’s always on the go, you probably check your email on your phone. Gartner reports that almost 75% of smartphone owners use their devices to check their email. And if you’re really on the go, you read your email quickly. In fact, Movable Ink’s US Consumer Device Preference Report of 2014 via Email Monday states that most mobile users only spend about 10 seconds to view each message. 10 seconds isn’t a long time especially if you’re multitasking. How many of you are guilty of reading your email while walking down the hall, sidewalk or cafeteria?

Combine the quickness of our culture plus the growth of phishing, and you’ve got an increased risk for identity theft. Phishing (pronounced like fishing) is the activity of defrauding an online account holder of financial information by posing as a legitimate company.

According to a Google study, phishing emails work 45% of the time. Read More here…http://blog.foremost.com/protect-yourself-against-phishing.asp

Dec 15

December, January & February are the LEADING Months for Home Fires!

December, January and February are the leading months for home fires and fire deaths in the United States. On average, more than one-third of home fire deaths in the United States occur during the winter months. Here are tips to help you protect your family and your home.

How can I heat my home safely?
According to a report from the National Fire Prevention Association, heating equipment fires are the second-leading cause of fire deaths in American homes and the biggest fire culprit December through February. According to the association, most fires could be avoided by taking simple safety precautions.

  • Select equipment that bears the mark of an independent testing laboratory.
  • Be sure the equipment is installed by a trained professional, in compliance with local fire and building codes.
  • Keep all portable heaters (whether powered by electricity or fuel) at least 36 inches from anything that can burn—including furniture, bedding, clothing, pets and people.
  • Run space heaters only when you are in the room and awake. And, supervise all children and pets when the heaters are in use.
  • If you are using a portable kerosene heater, use only the fuel recommended by the manufacturer. Store the kerosene away from heat or open flame in a container approved by your local fire department, and be sure it’s clearly marked with the fuel name.
  • Have your chimney inspected (and cleaned, if necessary) prior to the start of every heating season.
  • If using a wood stove, follow the manufacturer’s recommendations for installation, use and maintenance.
  • When disposing of the ashes from your fireplace or wood stove, first make sure all embers are extinguished. Put water on them to be sure. Discard away from the home.

What hazards should I look out for during the holiday season?
’Tis the season for celebrating—more entertaining, more cooking and an increased risk of fire. Keep your family safe this holiday season with these tips.

  • Use care when burning candles. Make sure they are in sturdy holders, kept well away from decorations and out of the reach of children or pets.
  • Never use candles to decorate your Christmas tree.
  • Don’t leave items you’re cooking unattended—it’s the leading cause of fire in the United States.
  • Choose an artificial or fresh Christmas tree and place it well away from heat sources. Water fresh trees every day.
  • If using an artificial tree, make sure it’s flame retardant.
  • Replace any lights with frayed or damaged cords. And, always unplug all lights before leaving home or going to sleep.
  • Don’t overload electrical outlets.
  • Be sure the candles in your menorah have burned out before you leave the house or go to sleep.
  • Refrain from running electric wires underneath rugs.

Also, be sure your homeowners insurance reflects the amount of coverage you need to replace your home and possessions. This could mean checking to be sure you have replacement cost coverage. Call our agency. We’ll be glad to review and explain your coverage to you.