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An Irreverent Guide to Motorcycle Safety

Motorcycle (safety) season is here.

The sun is out, the leaves are green, the water is warm – all reasons to get the bike out, wipe it down, and hit the road.  Whether you ride all year or just for quick trips in great weather, now is the time to enjoy the experience that only your motorcycle and a great ride can give you.  But, as insurance agents, we want to make sure you come back from the ride in one piece.  So let’s talk about motorcycle safety.

I know, I know, no one wants to.  But whether you are hitting the mountains for the Parkway, or heading downhill for a little get-together at the beach, or just going to the store for a loaf of bread, the chances of you having a great time are increased exponentially if you do it safely.  And it’s more than just remember to fill up on gas – though you probably should.  So let’s go over some of the basic things we can do to be safe on the road.

Sweet ride.  Wish it had gas.

The Overhead View

How big of a deal is motorcycle safety?  Look at it like this: motorcycles only make up 3% of vehicles that are on the road, but account for 13% of all people killed in traffic accidents.  I’ll let that sink in for a minute.  And it isn’t just young guys out being stupid that are getting hurt.  36% of motorcycle deaths were riders aged 50 and up.  Add all that up and you have a small population of people that are on motorcycles, but they are much more likely to be hurt or killed in traffic accidents, no matter what their age.

Luckily, there are a few things we can do that help prevent us from ending up as a bad statistic.  Starting with that thing that goes on your cranium.

Check Your Head

I’m sure everyone has told you this already.  Your spouse has told you, your co-worker has told you, heck, even usually cool guy in your fantasy football league has told you: wear a helmet.  But it isn’t just that everyone likes telling you what to do – but they totally do.  No, there’s actually science and math that backs this all up, so lets get that.  I promise, no nagging.

Here’s the basics according to the CDC: helmets reduce the risk of dying by 37%.  They reduce the risk of head injury by 69%.  The total economic cost of accidents without helmets is $1 Billion per year.  Crazy right?  Wearing a helmet is the cornerstone of motorcycle safety, and knowing how they work and how to care for them is super important.  Also, never buy a used helmet – any impact such as a crash will use up the structural integrity of the helmet even if it looks the same.  Helmets are useless after they have suffered such an impact, so don’t risk your own head to save a few bucks.

See Dan, I told you I wear a helmet!  Now trade me Aaron Rodgers.

The Road More Traveled

Lot’s of riders think that regular or “surface” roads are safer than highways and freeways, but the math isn’t on their side.  A whopping 91% of accidents between passenger vehicles and motorcyclists happened on country or urban roads, making highways astoundingly safe by comparison.  And the most dangerous place on these streets for motorcycle safety?  Intersections.  One study found that more than half of all accidents involving a motorcycle occurred at an intersection.  Take care not to speed through them, always stop at stop lights and signs, and pay particular attention to vehicles coming from behind you.

Does my beard count as protective clothing?

No Such Thing As Beginner’s Luck

When it comes to motorcycle safety, being a rookie isn’t a good thing.  It takes more skill to handle these well-built machines out on the road than it does a car or truck, and the time to find that out is not the day you get your first Harley because you always thought they looked cool.  Treat yourself and your motorcycle with the respect it deserves and take a safety course.

Wait, what?  You’re too cool for school?

Well check this out: over 50% of motorcycle accidents involve a newbie with less than five months of riding experience.  Pair that with the fact that over 80% of motorcycle accidents end up with someone being injured or killed, and you can see just how dangerous being a new rider can be.  A new rider has a very good chance of being in an accident and hurt or even killed.  Signing up for a course is a sure fire way to get experience and training before you hit the road.  Some courses even have awesome tracks for you to test out and can teach skills that will put you ahead of your friends who are getting into the bike life with you.

A great resource for courses and what they are like is the Motorcycle Safety Foundation.

Good news: I can handle my ride now.  Bad news: I’m lost.

Fishes Get Stitches

It goes without saying, but that has never stopped us before.  DON’T DRINK AND RIDE.  43% of all fatal motorcycle accidents involved an inebriated rider.   Getting on your bike after you have had a few is simply a throw of the dice, and you or your passenger could pay the price if you come up sevens.  Or almost half of the other possible outcomes.

Another fact from the National Safety Council is about the type of motorcycle you ride.  According to their research, from the Insurance Institute for Highway Safety, “‘supersport bikes’ have driver death rates about four times that of cruisers or standard bikes.”  Take care in selecting the right bike for you, and if you do have one of the faster models, make sure you treat it with the care.  Four times more likely to die is no laughing matter.

What’s with all the black and white photography?

Take It Easy

The main piece of advice here is to treat your motorcycle with respect.  It is a vehicle that requires more skill and care than your average automobile or truck.  So treat them right, take it easy, and make sure you don’t end up as a statistic to be quoted because you got careless.

There are monetary benefits as well to being a safe motorcyclist.  A clean claims history can make a huge difference in your insurance premium, saving you hundreds of dollars a year.  Additionally, higher risk bikes are more expensive to insure, so having a clean record will make a massive difference in you being able to afford taking your new pride and joy out on the road legally.

To find out how motorcycle safety helps you with your insurance rate, call or email us today.  Or fill out the form below to speak with one of our agents ASAP.

How To Cover Your Net Worth

How Much Is My Net Worth, Really?

Most of us think we have risk figured out.  We have our cars insured with full coverage, we have our homes or our apartments covered under homeowners or renters policies, respectively.  Almost everyone now has health insurance, and heck, a lot of us even have LIFE insurance.  We’re doing great, right?  Nothing could threaten what we own, let alone our entire net worth.

Unfortunately, these coverages aren’t usually enough.  If you have significant assets, even a mundane car accident could lead to a lawsuit that results in a hefty settlement.  While the liability section of your auto or homeowners policy provides substantial liability protection, usually between $100,000-300,000, the fact of the matter is that courts routinely award greater settlements than what these policies cover.

So, first thing’s first.  How much are you worth?  Because that is how much you have to lose.

Not sure?  Check out a super helpful Net Worth Calculator like this one.

 

Yes, that’s including your Blockbuster stock, Mrs. Conner.

How Likely is a Lawsuit, Really?

Considering that there is an entire industry dedicated to producing them, fairly likely.

According to the U.S. Financial Education Foundation, “[i]t is estimated that over 40 million lawsuits are filed every year in the Untied States and the total number of registered lawyers exceed one million.”  That’s a lot of paper getting pushed around by a lot of attorneys.  While many deal in matters that have nothing to do with tort law, there are hundreds of firms across the country who make their living by civil litigation such as suing after an auto accident or tripping in front of a person’s home.

It is incredibly easy to find information online urging people to file a lawsuit.  A great example is from Nolo.com, where they have an entire post called “Reasons To File A Car Accident Lawsuit.”  They go so far as to say this in the article:

Personal injury litigation boils down to money. If your lawyer believes that your case is worth significantly more than what the insurer is offering, and it is unlikely that the insurer will increase its offer in pre-suit injury settlement negotiations, then it is time to file a lawsuit. (Emphasis added.)

And what profit-minded attorney wouldn’t think they can get more?  After all, AllLaw.com says litigation lawyers make their money from contingency fees that are based on a percentage of the settlement, and “most contingency fees are between 33 and 40%.”  In order to make real money, they need settlements, and that means encouraging your fellow Americans to take you to court.

Let’s get down to business.

You also need to be on the lookout for Personal Injury suits.  These are lawsuits where someone feels injured or insulted and retaliates in court for damages.  Unfortunately, with the rise of social media and online interactions, these kinds of lawsuits are becoming more and more common.  Similar suits are for defamation, libel, and slander.  While you can be sued if you injury someone physically, you can also be sued if your teenager harasses someone else online.

How Much Will a Lawsuit Cost Me, Really?

It depends on if the suit involves an injury, and the opinion of the jury.

If someone is hurt in an accident, the costs can be exponentially increased.  Not only are medical expenses typically included in a settlement, but also loss of wages and, the wild card, pain and suffering.  Generally, the more severe the accident, the more all of these will cost.  If the worst happens and someone is killed in an accident that you caused, settlements average over $1,000,000.  In cases tried as Wrongful Death suits, awards can go as high as $30-150 Million.  These staggering numbers can see just one accident wipe out a family’s entire savings and all assets.

How Can I Be Protected, Really?

Really?  Get a Personal Umbrella Policy.

Come at me, bro.

These policies, also known as Excess Liability policies, offer liability protection that sits on top of your existing auto, home, and other base policies.  In the event that a lawsuit or legal fees are over what your base level policy provides, your Umbrella policy kicks in, offering over $1 Million to $5 Million dollars in extra protection.  And the crazy thing is that these policies aren’t even expensive.  A $1 Million Umbrella policy is typically between $200-300 a year.  That is a ton of extra coverage for not a lot of money, especially for something that could save you from losing everything you own.

If you have any assets at all, you really should be getting this necessary coverage.  When a trip to the grocery store can routinely cost $200, it should be a no-brainer to get $1 Million dollars of coverage for the same price.

For more information, call us, email us, or fill out the form below, and let one of our helpful agents walk you through what you’re really worth, and how easy it is to protect the whole enchilada.

Workers Comp FAQ

Questions About Workers Comp Insurance?

You’re not alone.  Workers Comp is one of the most asked about coverages in business insurance.  Many people know they need it, and that their state may be different than others, but that’s about it.  So, let’s get down to the nitty-gritty and find out what you really need to know about workers comp insurance.

How do I get a workers comp quote?

Getting a workers comp insurance quote is actually easy.  All a company needs to quote you is:

  • Business Info – Name, address(es), FEIN number, contact information.
  • Type of Business
  • Payroll information, including annual payroll amount.
  • Loss runs from current policy, i.e. any workers comp claims from the past.

Safety first, or I’ll kill my mod.

How is my premium determined?

A workers comp insurance policy’s premium is determined by something called an Experience Modification Factor, or “mod.”  Your mod is the result of your previous claims history, typically over the last three years not including the most recent year.  The losses suffered by your business are then compared to the expected losses for the industry that you are a part of – so if you are a bakery your losses will be compared to the losses of the baking industry in general.  The figures from this comparison are fed into a formula that is used to decide your experience modification factor.  If you have a mod greater than 1.0, it is a debit mod, meaning your losses are worse than the industry standard and you will pay a surcharge on your premium.  A mod lower than 1.0 is called a credit mod, which means better than expected losses and results in a credit to your premium, lowering it.

Another factor in how much your workers comp policy will cost is the type of business you have, or your classification.  Different types of businesses have different levels of inherent risk, so, for example, a roofer will have more chance of an employee suffering a serious injury than an accountant.

If this is all very confusing, don’t worry – a workers comp specialist here at Alliance will be happy to help.

What is a waiting period in workers comp?

A waiting period is the time between the date of the injury to a covered worker and the time that benefits begin to accrue.  Some states require retroactive payment for the waiting period.

No pain, no claim.

What if the injury is an occupational disease?

An occupational disease, such as an illness caused by harmful substances on a job site, or a recurring motion injury like carpal tunnel syndrome, may not have an exact injury date.  A “disability date” is determined by the first date that the employee is unable to work or loses time at work due to the occupational disease.  For example, if an office worker develops carpal tunnel syndrome, the first day that they are unable to work due to the illness is the disability date.

What is an IME?

IME stands for independent medical exam.  These exams are a way for an employer or an insurance company to verify an employee’s diagnosis that would lead to a workers comp insurance claim.    They are essentially a second opinion performed by third party doctor, one that did not give the original diagnosis.

Of course I believe you.  But we still need to check.

There are many more questions and issues that may arise as you become familiar with workers comp insurance.  Ask one of our agents if your premium is in line with your loss runs, or if you aren’t sure where you really stand with your workers comp policy.  Call us, email us, or fill out the contact form below to make sure you’ve got this vital coverage all covered.

The Claims Game: How to Win at Losing

No one wants an accident.  It’s so obvious that it shouldn’t even need to be said.  However, when it comes to insurance, a claim is literally the name of the game. In fact, claims are the reason insurance exists.  While we don’t want anyone to have an accident, be it an auto accident or home mishap, the fact that they do is why insurance was invented in the first place.  Your policy is your ticket to getting back to where you were before something bad happened.

But how?  And why is it such a hassle?  Most people see the claims process as a maze with no easy way towards the check in the middle.

My adjuster said left, then right, then… what was it?

The fact of the matter is that there are things we can do to make it easier on both ourselves and the insurance companies.  Here are five tips to help you get paid the amount you need, on time, and without making the experience a nightmare.  Let’s play the claim game.

Tip #1 – Picture This

You know what your car or home looks like better than anyone.  You see it day in and day out, know it front to back, and can drive one or walk through the other while thinking about what you have to do at work, where you need to take the kids, or what is on TV that night.  But your insurance company, usually through your adjuster, doesn’t know it that well at all.  The first time they will see it is usually when they show up and see the gaping hole in the roof, or when your bumper is lying on the side of the road.  It’s like showing up to a first date with a black eye.

Helping me with my new Tinder profile pic.

Get out ahead of this by documenting your stuff!  Take pictures of your car when it’s nice and shiny and clean and with all its parts intact.  Snap photos of your house both inside and outside, and take pictures of your personal property that is of higher value, like your electronics, jewelry, or art.  Having proof is excellent for helping an adjuster know what you had before an accident occurred, and can help them make an accurate assessment of value.  It can also help you remember exactly what you had – there’s nothing worse than not getting paid for an item that was stolen because you forgot it when you were making a list of everything you own while already stressed out after a loss.

Tip #2 – Make a Claims Cheat Sheet

In some games, it’s best to make a cheat sheet in order to know how to win.  The claims game is no different.  Make a list of your items in the house in case of a covered loss, and for your car have all of your maintenance and repair work documented and organized together.  It may seem like a hassle, but when you prove what excellent condition your car is and see the difference in value, you’ll be happy you put a little effort into being prepared.

Pawn to lazy, unprepared, procrastinating bishop.  Check.

Organizing your auto documents and making lists of auto and home belongings can have additional benefits.  You may not realize how much stereo equipment you have and that it isn’t covered on your basic auto policy.  Or you may find that you have a great deal of valuable antiques that you use as furniture, and maybe you need more coverage for your personal property.  Some of us might not know where our auto title is, or how much china we have (and is it insured under normal personal property, or not?  Do I have the right kind of policy to begin with?  Maybe I need to check out Homeowners Insurance 101 after all!)  And I’m about to get my boat out of the backyard – is that covered?

Being prepared can make the difference between coming out on top or facing the agony of not having something covered after a claim.

Tip #3 – Claim Victory During the Accident

So you’re there.  The worst has happened.  You’ve had an auto accident, or something bad has happened at your home.  What do you do?

Where was that button?  Oh, there it is.

DON’T PANIC.  The third key to winning at claims is to stay calm and get as much information as possible.  It may be difficult to do, as accidents of any variety are high-stress situations.  But if we can take a breath and think clearly, we can set ourselves on the path to having insurance reimburse us for our losses – or at the least help us minimize any damage that might happen.

If you or anyone else is hurt, make sure a person’s safety takes priority.  Property can be replaced – life is more precious.  Always take steps to minimize harm and help those in need, even if that means waiting for and complying with police and healthcare professionals.

If everyone is okay, document the damage.  Take pictures of the accident, exchange contact and insurance information with any involved parties, and make sure you do what is necessary to inform the authorities regarding what happened.  If it is an auto accident, contact and be honest with law enforcement.  If it is your home, make sure you call the relevant authority, be it police, firefighters, or any additional agency (the gas company to help with a gas leak, for example).

Anybody got a light?

Also, do not put yourself in harms way to try and fix anything.  However, if something can be done to prevent further damage safely, go ahead and do it.  Don’t reach into a burning car to get your purse!  But if your daughter hit the gas by accident and crashed into the house, busting the pipes and causing water damage, cut the water off to prevent further damage.

Tip #4 – Communication is Key

After your accident, the first person you call is your psychic agent.  The reason you have a fantastic independent insurance agent is to guide you through events just like this, not only to make sure you handle it correctly but also to get advice on what can happen in the following days.  And honestly, most of us agents just like knowing that our insureds are okay after something bad has happened!   Your agent may not predict the future, but they can help you understand the process of claims, help explain how your policy works, and contact your company for you – or walk you through how to do it yourself.  At some point the insurance company will want to talk to you directly, as no one knows more about what happened during the accident than you do.  If the accident happens after office hours, shoot your agent an email so they can contact you first thing the next morning.  You won’t be bugging them by reporting a claim – it’s literally their job.

But my agent says I can get a little… clingy.

If you have all of those pictures, lists, or documents we talked about earlier, feel free to share them with your agent as well.  They will let you know if it is relevant or not, and can forward those on to your adjuster or tell you which documents the adjuster might need.  Be as communicative as you need to be, without expecting a call every hour.  Claims take time, so make sure you contact your agent at first, then give them the space they need to work on your behalf to get you back to where you were before the accident.

Tip #5 – Your Adjuster is Not Your Enemy

There is a common misconception that an adjuster, the person sent by the insurance company to asses the damage, wants to give you as little as possible or, even worse, deny your claim.  This is not true!  The adjuster is not your enemy, but your friend.  Instead of seeing the adjuster as the person who wants to make sure you get nothing, see them for what they are:

The adjuster is the person who can give you the money.

If we fight, hide information from, or work against our adjuster, we make ourselves look suspicious.  Most adjusters have seen people lie in order to try and cheat the system to get more money than they need, and there is a word for that: fraud.  The last thing we want is the person who’s job it is to give us the money we deserve think we are dishonest!  Instead, work with your adjuster to discover what really happened.  Also, share all of those wonderful documents and pictures that you’ve prepared so that they know exactly what your car looked like before the wreck, or how big that sapphire really was on grandma’s stolen heirloom necklace.  In the game of claims, adjusters are the last piece that helps you win it all.

Thank you for your help, Ms. Thompson.  I’ll Venmo the money right over.

If you follow these five tips, you’ll find that what can be a nightmare can be survived, handled, and repaired.  While we can’t always avoid accidents, we can do our best to make sure you come out on the other end good as new.  If you have questions or want to know more about claims, give us a call, shoot us an email, or fill out the contact form below.  At Alliance Insurance, we’re here to make sure you’re not alone when you play the game of claims.

The Alligator in the Backyard: 5 Things to Include in Your Home Quote

As insurance agents, we know that most people don’t like getting a homeowners quote.  It’s time consuming, boring, and many consumers are rightly concerned that they won’t get a good deal from an agent – or whatever monstrously massive company they’re calling because of a funny ad on TV.  The good news is that there are steps you can take to minimize the hassle of quoting and make sure the results are more accurate, the process takes less time, and that your new policy will have the best value for your situation.  A few quick tips are: be prepared, give the agent your declarations page from your old policy, and always tell the truth!

We do however run into the same questions on a regular basis, so let’s talk about the 5 most common things people leave out when we try and give them a homeowners quote.  I’m talking, of course, about the alligator in the backyard.

Taking a Bite out of Your Homeowners Quote

Excuse me, do you have a moment to talk about Alliance Insurance?

The alligator in the backyard is a joke in our office that goes a little something like this:

Agent: Looks like we’ve got your homeowners quote about finished!  Is there anything we’ve left out?
Customer: No, I think that’s it.
Agent: Great!  Here is the homeowners quote, and for less than we thought!
Customer:  Looks great!  One last thing.  I forgot to tell you that I have an alligator that lives in my backyard.

An alligator living in your backyard might have something to do with your homeowners insurance, since what we do is protect people from risk.  While some of our good friends in Florida may disagree with me, living with an alligator probably increases the risk that you or someone else could be bitten.

I’m just loving the new koi pond.

While alligators and other huge reptiles are pretty low on the list of things we run into, the following features are the most likely to be forgotten in the excitement of getting a homeowners quote.

The first most commonly left out risk are swimming pools.  We need to know if you have them, if they are fenced or not, and whether they are above or below ground.

The second often forgotten risk is your son or daughter’s trampoline.  We know they’re fun, but they also can lead to injury for your family or visitors.  It isn’t a deal breaker if you have one, but it lets us know the right place to put your policy so we can insure this properly.

The third item is man’s best friend, your dog.  We know, you love your furry buddy.  But certain breeds have higher risks, and letting us know what kind of dog you have will help us make sure we put you with a company that is comfortable with the breed and can insure it.  Not doing so could leave you in big trouble if Fido ever got scared and chomped down on that annoying neighbor.

Woof woof, Mrs. Simpson.

In fact, let us know about any pets you have – especially if they’re of the farm or exotic variety.

The fourth piece of information is water, or more specifically, bodies of water that aren’t man-made swimming pools on your property.  Let us know about ponds, creeks, fjords, or anything larger than that low point in your yard that floods because your husband won’t fill it in.

The fifth and final risk is all about how you get your heat.  If the answer involves combustion of any kind, we need to know about it, regardless of whether it is a wood stove, an oil tank, or natural gas.  If it is a tank of some sort, make sure you let us know if it is above or below ground.  This is really important information for making sure we get your homeowners quote as accurate as possible.

I was just checking your meter here, and the bad news is I’m an alligator.

Make sure you let your agent know these important details and you can avoid having a nasty surprise when you get your bill – or even worse, if a claim should occur.  If you have any questions about these or other special circumstances at your home, give us a call or fill out the contact form below and we’ll be happy to help.  Also, if you want to know more about homeowners insurance in general, check out our article Homeowners Insurance 101 and get yourself some education.  Knowing your stuff can help make sure your homeowners quote rocks your world – in a good way.

And here’s the video for some additional discussion – enjoy!

What Your Home Is Worth: Market Value vs Replacement Cost

If someone asked you how much your home was worth, how would you answer?  Would you say market value?  Replacement cost?  Sentimental value?

Do we even really know what those first two phrases mean?  Probably not, so let’s break it down, starting with your house.

Market Value

My real estate agent says this new patio adds tons of value.

Your home.  Your castle.  Your refuge.  No matter what you call it, your house is more than just where you hang your hat.  So how do we put a price on something that is the most important thing that we own?  There are two mains ways of looking at it, and they couldn’t be further apart in how they come to their conclusions.  We’ve already mentioned them above, but let’s get into more detail, shall we?

Market value is what most of us think when we talk about home value.  Put simply, market value is how much someone would pay for your home on the open market, or what our friends in the real estate world might call fair market value.  If you’ve got a home that you bought for $200,000, and someone two years later offers you $300,000, you’d probably wouldn’t say, “Sorry, but I’m pretty sure it’s worth only $200 grand.”  Market value can change with a great offer like in this example, or, more likely, it can change over time as your neighborhood increases in value, the other homes around yours improve, you make improvements to your home, or through other supply-and-demand related market functions.  For example, there are fewer homes on the market than previous years at the time of this writing, which will affect the market value of what might be traditionally described as “starter homes.”

No vacancy.

Replacement Cost

Replacement cost is very different.  Put simply, replacement cost is how much it would cost to rebuild your home should you suffer a total loss.  It has nothing to do with how much someone might pay for it, but instead deals with the physical costs associated with your home.  To determine what the value might be, insurance companies typically do what is called a Replacement Cost estimator.  This takes into account the cost of building materials, home features, age of roof and other construction features (to determine depreciation), square footage, and any other factors that would help in figuring out how much it would cost to replace your home as close to as-it-was as possible.

Wait, didn’t they have a chimney?

Knowing the difference between these two forms of valuation can help immensely when talking about insurance.  If a home is out in the country, it may be much more expensive to rebuild it than it would be for someone to purchase it, leading to a very confusion conversation between a homeowner and their insurance agent.  A house in a big city, however, might have the opposite problem, where sky-high market values can lead to a replacement cost that is lower than what someone might pay for the property.  Regardless of where you home might be, knowing these two factors can help you insure your house for the correct amount – replacement cost.  After all, we want insurance to rebuild our home, not give us a potentially lesser amount based on a fluctuating number like market value.

Larry, it’s OK!  They have replacement cost coverage.

If you’re unsure whether you have your home insured for the correct amount, give us a call or fill out the form below.  We will be happy to look over your policy and the details of your home and help make sure you have the coverage you need based on how much it would cost to rebuild your home, good as new.

If you want to know more about Homeowners Insurance in general, click here to check out our blog and video giving you the details on exactly what it covers.  Also, check out the video below:

Know, Know, Know Your Boat Insurance: A Landlubber’s Guide to Safety

What’s cooler than cool?  Safety!  Well, at least when it comes to boat safety and boat insurance.

I know this isn’t what anyone thinks when it comes to boats and boating, but staying safe might be easier than you think.

Avoid Boat Insurance claims by playing it safe.

Me?  In a life vest?  I’d be the laughing stock of the Yacht Club.

While none of us like to talk about it, accidents do happen while boating.  According to data from the U.S. Coast Guard, there were 4,463 accidents in 2016, with 701 fatalities.  While this may seem like a small number for the amount of boats on the water every year, these accidents resulted in a whopping $49 Million in property damage losses, a staggering fee considering the number of accidents.  Some simple boat safety tips might really help get those numbers down.  But how?

How can we minimize our risks, especially from drowning, and hopefully save our valuable watercraft in the process?

Orange is so not my color.

80% of fatalities from boating accidents were from drowning.  Of those in that regrettable statistic, 83% failed to wear a life vest.  This one simple act could save hundreds of lives a year.  Always bring life vests with you, and make sure you have life buoys for emergency situations.

Another thing we can do to prevent accidents is to drink less, or at least responsibly.  Alcohol was the number one factor in boating accidents that resulted in at least one death.  Always drink responsibly when out on the water, and try to have a designated person behind the wheel.  Remember, if you wouldn’t do it on the road, don’t do it on a boat.  Most of the time, boat safety is just common sense.

But isn’t it, like, the law of the ocean or something?

There are also safety certifications and instructional courses one can take to be safer.  While education and framed pieces of paper may seem like a good way to invite ridicule from your friends, they also help to prevent accidents and injuries.  A mere 13% of accidents involving death happened on a boat with an operator that had finished a boating safety course.  It’s just one more thing that can help save lives and prevent catastrophic damage to something as precious as our boat.

The good news is that we can be proactive and help prevent boat accidents from happening.  And, if they do happen, we can be covered from the financial losses with the right boat insurance policy.

Most boat policies are pretty similar to your auto or motorcycle policies, covering you from both damage to your boat and the liability from an accident where you are at fault.  There are, however, some unique coverages for boat insurance that you should ask your agent about.  Let’s take a look at them.

See, I told you I remembered where I parked.

First of all, you can get Total Loss Replacement coverage with some carriers.  This great feature can replace your boat with a new one of similar make and similar quality after a covered loss, getting you back out on the water, in style, in no time.

Another coverage is Replacement Cost Coverage on Fishing Equipment, with some insurance companies offering up to $10,000 of coverage for all the bait, tackle, rods and nets you can shake a fish at.  This probably doesn’t cover dynamite.  Sorry Jethro.

Fire in the hole!

You can also get 24-hour Roadside Assistance for break downs on the way to the lake or shore, and Emergency Towing and Labor for when you break down on the water.  This could really come in handy when you’re trying to impress that someone special and you forget the extra gas tank!

Two more special coverages are Property Damage Liability specifically for cleaning up fuel spills, and Med Pay for Water Skiers, both very important for those specific boating “what-ifs” that can ruin a great day out.

As many of you who watched my Package Policy video know, the more policies you have with an insurance carrier, the more discounts you get.  Boat Insurance is no exception!  In fact, there are discounts for Homeowners, Multi-Policy, Multi-Boat, Responsible Drivers, Safety Course, Claim Free and Prompt Payments.

If you want more great boat tips, watch my video below.  Or contact us with the form at the bottom of the page to get quotes on your boat today.

Homeowners Insurance 101

When it comes to Homeowners Insurance, most of us know one thing for sure: we have to have it.

Whether you are a first time home buyer or you’ve owned a home for years, the simple fact of the matter is that most of us don’t really know what is in arguably the most important insurance policy we have.  Mortgage companies wisely tell us to have one so they can protect their investment, but when it comes to where coverage ends and what exactly the policy covers on your property, most policyholders don’t really have all of the answers.  It’s vital that we really get to know this valuable coverage, though most of us barely know the basics of homeowners.

Let’s see if we can fix that.

Not sure if covered, also known as “Self Improvement.”

Your Homeowners Insurance policy is split into two basic parts, Property and Liability.  Let’s talk about property first.

The piece of coverage that most people are aware of is Dwelling Coverage, or protection for the house itself.  In the world of insurance, we cover a home for replacement cost, or how much it would cost to rebuild a home, not market value, i.e. how much someone would pay for it.  So when your insurance agent says a number above what you paid for your home, don’t panic!  You’ll be glad you have the right amount of coverage if anything should ever happen.

The next piece provides coverage for Other Structures, helping you if something happens to an outbuilding, gazebo, shed or detached garage on your property.  These need to be in good condition and professionally made, so it may not cover your kid’s lean-to tent.

What about my sick yurt, bro?

The third piece is Personal Property coverage, a hugely important part of your policy.  This protects your stuff, like your television, computer, sofas and dining table, even the shameful stuff you probably should have thrown away that you’ve hidden in a downstairs closet.  Certain high-value items have limited coverage, however, so if you have lots of jewelry, furs, art or firearms, you should either add extra coverage on your policy by itemizing them, or get a separate policy called an Inland Marine policy to cover them.

I’m going to need more coverage.  And an armored truck.

The last piece of Property coverage is Loss of Use.  This part of your Homeowners Insurance policy is a really cool protection that helps cover things like hotel and travel expenses when you’re staying somewhere during construction to repair your house – if the repair is to fix a covered loss.  Getting your house repaired after a lighting strike fire and staying at a HoJo – probably covered.  Staying at an Airbnb because your mother-in-law won’t go back to Ohio – probably not.

Put me down and go back to Dayton, Sandra.

The second part of your policy is Liability.  This protects you from most of the dark mechanics of the legal system, or at least the ones having to do with your home.  The most common example of this protection is if someone is hurt on your property and sues you.  The Liability section of your Homeowners Insurance policy will provide funds for court costs and possibly hospital fees that could accrue from the accident.  Having liability coverage is vital in today’s litigation happy world, and it really doesn’t cost that much to get extended coverage in this part of the policy.  You can also get an Umbrella Policy for additional liability protection if you have assets you need to protect.  One bad court case can leave you financially exposed in a way most people never think of until it’s too late.

No, really, it hurts!  I’m calling my lawyer!

For those who want even more coverage, there are better policy types that provide greater percentages of coverage – feel free to ask your agent about them.  The most common Homeowners policy is called an HO3, but there is also an HO5 and, in NC, the HE-7.  These provide greater coverage for those high-value items and can also give you more coverage for Other Structures and Personal Property.

A Homeowners Insurance policy is one of the most important protections you can have to keep you and the things you value most safe from harm.  Make sure you’re covered the way you should be by filling out the form below or giving us a call.

Need more information but not sure if you want to talk to a human being yet?  Here’s a helpful video about Homeowners Insurance below.

 

Doing the BOP: Business Insurance for the Little Guys

Business Insurance can seem like a thick, dark forest, full of unfamiliar coverages, multi-layered policy types, and a bramble of endorsements that can confuse anyone not in the industry.  It can seem especially confusing when compared to personal insurance policies, which are usually pretty straightforward and familiar to most of us.

This better be the right policy…

Luckily, there is an alternative.   Small to medium sized business owners can use a special, pre-packaged policy based on the Homeowners model, called the Business Owner’s Policy, or BOP.  The BOP is a great option for a whole range of businesses, including Mom-and-Pop shops, professional offices, and mid-size regional players.  Even freelancers can find protection with a BOP, with coffee-swilling graphic designers, stay-at-home coders, or pavement-pounding makeup sales gurus all getting the coverage that they need to keep business humming along smoothly.

Do you even BOP, bro?

The BOP is broken down into two main sections, Property and Liability.  If this sounds familiar, then yeah, it is exactly like the policy on your house.  There are a few differences, so let’s get down to it.

Property coverage on the BOP covers your business stuff, whether that be the building you own, the office equipment you use, the computers you process payments on or design rad new fonts with (that’s a thing, right?), and even the chair you’re sitting in as you read this – if it’s your work chair.  If your business owns it, the BOP covers it.  EXCEPT for cars, planes, boats, anything that you can get in and drive around in.  The BOP doesn’t really do those, leaving them to other policies for coverage.  The BOP also doesn’t cover what is IN your computers, i.e. the data.

Another major difference is the special business protection under the BOP’s property section, broken into two parts.  One of these is Business Income Coverage, which helps you make up for any income lost when your business is closed due to a covered loss.  Another is the Extra Expense Coverage, which can help with those extra expenses that can help you stay open after a covered loss.  Both of these are aimed at helping your business stay afloat after a loss to your property that would otherwise put you out of commission, whether that be a fire to your building, or someone stealing your laptop that contains your entire design company in it’s shiny body.  While the work itself won’t be covered, the income that would have kept you in business would be taken care of by your BOP.

Liability protection is based around protecting you from anything that your business can be held responsible for, whether that be someone getting hurt on your premises, a rival business suing you for slander, or infringing on someone else’s copyright.  Not that you would ever do anything like that.

Maybe I shouldn’t have used my ex as my billboard without asking her…

Having the right liability coverage can be the difference between you staying in business and you owing more than your business is worth.  The risks mentioned above can do more than just make you shut up shop, as no one can predict how much a jury will award if a motion goes to court.  Even those of us who think we aren’t exposed to risk just aren’t being honest with ourselves about what can happen in today’s ultra-competitive marketplace.  Having a BOP that covers you from this kind of exposure is vital to moving forward confidently and meeting your goals without looking over your shoulder.

For all you visual learners out there, here’s a short video about BOPs and why they are awesome.

All in all, the BOP is a great policy for lots of different people.  If you think you might be one of them, why not reach out and see if we can help?  Fill out the form below and we’ll be happy to contact you about hooking you up with a BOP.  

Auto Liability: Why You Don’t Have Enough of It

If you have a car, you have auto liability coverage.  But do you have enough?

For a lot of people, auto insurance is not something that protects you, but instead is just another hoop to jump through in order to drive legally.  Insurance offices around the country receive calls every day from people who want whatever the lowest amount of coverage is in that state to satisfy the legal limits of liability.  When we ask what kind of coverage they are looking for, the answer we get is, “Whatever is the cheapest.”

Unfortunately, this view of auto liability insurance is not just wrong, it’s dangerous.  According to the Association for Safe International Road Travel, accidents in the U.S. total $230.6 Billion in damages a year.

That’s a lot of money, and it means that everything that happens, from fender-benders to multi-car pile ups, happen with disturbing regularity.  And they cost more than they ever have, with a new car averaging over $30,000 in 2017.  When you consider that most states have minimum limits at around this mark, for example $25,000 of Property Damage coverage in NC, that makes for a very expensive problem with only one accident.  In the video above, I talk about how disastrous it could be hitting a new Mercedes if you have the minimum limits of coverage.  But you don’t even have to hit and total a high-end vehicle to exceed your minimum limits and owe tons in out-of-pocket damages.

It is even worse if someone is injured, and the sad truth is that people get injured a lot in auto accidents.  Over 2.35 million people are injured or disabled in accidents every year!  Even worse, 37,000 are killed in auto accidents per year in the U.S.  Not only are these numbers tragic and staggering, they are also incredibly expensive.

If you hurt someone in an auto accident, the costs can be massive.  Injuring a person in an accident costs on average over $20,000, while disabling someone averages over $50,000.  The worst case scenario, ending someone’s life in a car accident, is the most expensive, with an average cost of over $1 Million dollars for each fatality.  In a flash, minimum limits like North Carolina’s $30,000 per person, $60,000 per accident can be exceeded, leaving you with a fortune in out-of-pocket expenses.

And that doesn’t even account for potential lawsuits.  (That’s why you need an Umbrella policy.)

Having minimum limits is unnecessarily rolling the dice with your entire financial future.  One mistake could cost you your entire life savings.  And the cost of properly insuring yourself with higher limits of liability really isn’t that much more.  At Alliance, we regularly recommend 100/300/100 in order to protect our insureds from the realities of today’s roads.  Don’t take the risk on yourself when there is an entire industry designed to do it for you.  If you think you may have lower limits of liability, give us a call or email us and let us take a look at your coverage.  You may be surprised at how little it would cost now to save a ton in the future.

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348 Summit Square Blvd.
Winston-Salem, NC 27105
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336-377-9003
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Mt Airy, NC 27030
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336-786-1133
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Walnut Cove, NC 27052
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