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Find all of the answers you need at http://www.personalinsuranceanswers.com/.

All the same great content, but on our own site.  Ask questions and get answers to your personal insurance questions without wasting a lot of time.

If you don't see the answer to your question submit it to us and we'll respond. Chances are someone else has the same questions.

See you there.

Why am I paying more for car insurance after being hit?

It's not fair.  You didn't do anything wrong except being in the wrong place at the wrong time.  So why are your insurance rates going up?  It wasn't you that just rear-ended the car in front of you, or merged into a lane with other cars in it.  You're the victim.....in more ways than one.

Auto insurance carriers have developed intricate and sophisticated computer programs that analyze everything.  Credit, driving record, location and gender are just a few of the factors that go into a rate. The predictive modeling done by insurance carriers tells them exactly how much they have to charge a particular driver in order to make enough money to cover all expenses, claims, marketing and profit they have in their budgets.

One factor is Not-At-Fault accidents.  The computer says drivers that have been in a not-at-fault accident are statistically more likely to get into an At-Fault accident.  It's apparently just math.  And it's not fair to a lot of drivers.  But it is understandable on some level.  For instance, it's probably more likely that an aggressive driver will get hit by another car because of how they drive...changing lanes, speeding up and slowing down, etc...  A defensive driver, on the other hand, is probably more reliable and predictable.  They don't follow too close, they don't stop short that often and they change lanes only when necessary.

All of this means you have to be very careful about what gets reported to your insurance company when you're not at fault in an accident.  If you can be reasonably assured you'll get a proper settlement with the other driver's insurance than that may be the best choice.

Your agent should have a quick conversation with you about what to do in the case of an accident or claim so you can make an educated decision.  If not, you're probably not getting the service you deserve.

How do you prove what you lost?

Can you remember everything you owned, where you got it and what it cost?  Those are some of the questions you'll need to answer if you want to take advantage of your insurance policy's Replacement Cost for your personal property.

After a loss, most insurance companies will give you a check that covers the Actual Cash Value (aka: depreciated value) of your personal property (couches, TV, clothes, etc...)  In order to get the full replacement cost you have to re-buy the stuff.  However, many companies want to have some idea of what was in your home before you replace an Ikea couch with something from Ethan Allen.

It's a good idea to take pictures of your home.  Get a snapshot or two of each room and then put the images somewhere safe OUTSIDE OF YOUR HOME.  It's a whole lot easier to prove what you had (and what you didn't, i.e. original Picasso) and it should only take you a matter of minutes.

Contact us for more good ideas that aren't that exciting, but really do make sense.

Insurance a must in the dorms

If you're counting on your parents insuranc to cover you in your dorm, or in your apartment at school, it may not cover everything you think.  Small property claims (i.e. stolen/misplaced laptop) aren't really covered because most of the time they won't be more than the deductible your parents carry on their house.

Read this article for more information.

Insurance a must in the dorms

There are also niche programs that offer what you need.  Like this one:
https://www.gallagherkoster.com/students/student-personal-property/

How Personal Injury Claims are Evaluated

So you were hit by another vehicle and were injured in the accident. Now what? Hopefully none of us will ever be in this position! Just in case, here's a great article that explains how personal injury claims are evaluated to help you be well informed if you ever find yourself in this position.

http://www.accidentattorneys.com/resources/accidents/accident-claims/how-personal-injury-insurance-claims-evaluated

When my car gets hit, when does it get fixed?

One of the stickiest situations for an insurance agent is when their client gets into an accident and it's the other person's fault.  Why, you ask?  Because any report, of any kind, to your own insurance company becomes part of your driving history.  So you're at the mercy of the other party's insurance carrier, and that's where things can get ugly, or usually just slow.

I'll explain more after the jump.

A Few Tricks to Keep Your Treats

Halloween is quickly approaching! Here is an article to help keep everyone safe this Halloween.

http://www.suite101.com/content/halloween-safety-tips-for-homeowners-a147959

My apartment is ruined. Now what?

What happens after there is a covered loss at your apartment?  Half of your stuff is undamaged, but the landlord says you can't live in the building while the damage is being fixed.  What happens next?

If you have renters insurance then you're probably in luck, there is coverage for the extra expenses you incur after a loss.  On most policies it's called "Loss of Use".

Porch Collapse

Here's a question that came into our inbox regarding the liability faced by having a porch at your apartment/condo....

Hi Dan:

I was listening to the radio as I was driving home last night and there was a story about a Chicago apartment's porch falling and injuring 10 people. Who would be liable in this case? Would it be the landlord since it's their property or could the renter be held liable as well? I have a porch and entertain quite often so I want to make sure I'm insured properly.

Thanks!

Condo Insurance FAQ

Across the broad spectrum of personal insurance policies and quotes you'll find homeowners on one end and renters on the other. Somewhere in themiddle is condo owners insurance.  You're responsible for more than just your contents, but for less than you would be if you owned a single family home.

There are a lot of ins and outs, so we'll tackle the most common questions and differences here.

Wear and Tear Not Covered

Prior to entering the insurance industry, I thought insurance covered any and all claims resulting from a loss. Boy was I wrong!

I was scanning the internet this morning and came across the blog linked below by Ryan Hanley of New York. The blog discusses wear and tear not being covered under your Homeowners Policy. I recommend you all take a look at this post as it provides helpful insight on what perils are covered and provides a great example of wear and tear on property.

http://www.ryanhanley.com/2010/09/10/wear-and-tear-is-not-covered/

Have Some Valuables? Personal Articles Coverage

Here's a question that came into Personal Insurance Answers:

I'm a 25 year old girl who my family finds to be picky and tough to buy for. Therefore, my family has resorted to purchasing jewelry for Christmas and birthdays as an easier solution. They know I'll like it, which I always do!

I've accumulated quite a collection over the years. So how do I insure my jewelry properly? Is it insured on my Renters/ Homeowners Policy under contents? How do I place a value on my grandmother's jewelry, that, in my eyes, is irreplaceable?

Personal Insurance Answer(s):

Your Homeowners Policy can provide some coverage, but with deductibles and limitations. A Personal Articles Policy might be a better option because it can provide the additional coverage that may be needed. Besides jewelry, Personal Articles Policies can also cover furs, cameras, musical instruments, golf equipment, fine arts, collectibles, sports equipment, and computer equipment.  It can be written as part of a homeowners/renters policy or it can be written separately. All the details of that are here.

Needless to say, I purchased a Personal Articles Policy to cover my valuables and have recommended my friends to do the same!

Auto Insurance: Rental Reimbursement

A common option on most auto insurance policies is something called "rental reimbursement" or "extended transportation expense".  Basically they help pay for a rental car should you not be able to use your own car. Typically the coverage is for 30 days, and the policy will give you a per day allotment ($30 or $40).

However, that doesn't mean you always get up to 30 days to rent a car when you don't have access to your own.  If you car is totalled in an accident you may have as few as five days of rental coverage before you're on your own.

Think about it, you've just been in an accident that damaged your car so much that the insurance company has deemed it a total loss.  You reported the claim, waited for the adjuster to make his decision and then realized you needed to start car shopping.  The clock is running.

This probably differs from company to company, but just be aware that you probably don't have a lot of time to make a decision.

Ask your agent for more information on your specific policy because you might be surprised.

Dan

4 Items to Consider Prior to Remodeling

As the housing market continues to struggle Americans are finding it difficult to sell their homes. Off hand, I know 3 individuals that have had their homes on the market for over a year and have not had any potential buyers! They've tried everything. Hiring real estate agents, professional cleaners, and finally, remodeling, my friends are feeling the pain of their hard earned cash escaping their pockets.

Sinking more money into the existing home in hopes of making their home more attractive to home buyers can be a great solution. Sometimes, however, remodeling is not the route to go. Here are 4 things you should consider before remodeling your home.

http://www.usatoday.com/money/economy/housing/2010-08-27-personalfinance27_ST_N.htm

Going Hybrid is Going Green (in a weird way)

Back when hybrid cars first hit the market there was a certain type of person that was attracted. For the most part, they were environmentally friendly and aware, they were defensive drivers on the road and they actually got credits on their insurance policies because they were "safe" drivers compared to the rest of us.

Not any more.  I've been hearing this talked about for a couple of months, but hadn't seen it actually proven, other than some insurance company underwriters making jokes.  I just read an article from Insure.com that makes the case that, for insurance purposes, driving a hybrid car will cost you money.

If you don't drive a hybrid you can laugh and exclaim "I knew it!"  If you do drive a hybrid feel free to tell yourself that you're not one of the problems.

http://www.insure.com/car-insurance/hybrid-drivers-social-responsibility.html

Enjoy.

Auto Insurance After a DUI

Hopefully it's something that you'll never have to deal with...getting insurance after being convicted of Driving Under the Influence (DUI).  It's not impossible, but it will almost certainly cost more and will mean moving your insurance to another carrier.

In most cases, after your day in court, in order to drive at all you need to have an SR-22. That's the form name for a "statement of responsibility" or in other words a document from an insurance carrier to the government saying you've got coverage.  It's the form required when you've lost your regular driving rights and that can happen for more than just a drinking-related offense.

After a conviction, or sometimes just the ticket itself, you might be non-renewed from your current carrier.  You'll then need to find something else quickly.  We use Progressive Insurance. They are a very good company that, to my knowledge, will take all comers.  Yes, it will be more expensive, but that was a foregone conclusion.

It's also possible that nothing will happen and your carrier doesn't find out about the incident. That depends on the state and insurance company as some carriers will do periodic motor vehicle record checks on existing insureds and some don't.

Either way, the sooner you speak with your agent the better because this process does take some time.  If you have more detailed questions about your situation or if you have more information you'd like to share please post in the comments section.

Replacement cost increases? In this market?

There is a battle being waged everyday in the offices of independent agencies across the country over what is commonly known as "inflation protection".  The idea is that a personal homeowners policy will increase the replacement value of a home year-over-year to keep up with perpetually rising costs.

Then came 2007, 2008, 2009 and now 2010, when if you've picked up a newspaper, turned on a TV or listened to the radio you would have heard something about the housing market and it's not so sunny outlook. We'll lay out the reasoning behind both arguments and discuss how that effects homeowners insurance quotes, premiums and rates.

Replacement Cost vs. Market Value

In homeowners insurance there is a constant question between insured and carrier about the amount of insurance on a home.  Insurance carriers want to insure a home for its reconstruction cost, the actual price of materials and labor to rebuild the home.  The homeowner typically thinks of his home's value in terms of market value. And while there are certainly some commonalities between the two...they are separate concepts.  We'll explore the relationship between Replacement Cost vs. Market Value next...

Take Action! after a water loss

We get dozens of calls a year from people with water problems...water in the basement, sump pump failures, leaky roof, damp walls, etc.....  There are a few action steps that people should take immediately to minimize the damage.  We are going to detail some of the most important first steps on this blog that should help you and minimize your insurance loss.

Travel Insurance

Travel insurance takes many forms and has many variations, so how do you know which one is right for you?  Not to throw more questions at you than answers, but the answer is "it depends."  You need to ask yourself a couple of questions first....

-What am I spending on the trip?
-Is any of the cost of the trip refundable?
-Are we going somewhere with access to decent medical care?
-Do I need coverage for my belongings?
-What happens if I have a pre-existing condition.

Here's an article from the New York Times that hits on these points and more.

http://travel.nytimes.com/2010/06/20/travel/20prac.html?ref=travel

I work with a company called Travel Guard that has customizable solutions for whatever you want. The cost ranges from about 4% of the trip cost to 25%.  Please note that if you buy this through a travel agent, they will probably give you a comprehensive option that has a whole lot more add-ins than you want or need.

Call me if you have questions.

Lightning Strikes and Power Surges

Most insurance carriers will reimburse you if your electronic equipment is damaged from a lightning strike. The carrier will probably ask for confirmation of lightning from another source such as your computer or tv repairman or electrician.

There can also be damage from a power surge - a surge of power sent through when your electricity has been out or interrupted and then restored. The overload of momentary power can also blow out your electronics such as your computer or tv just as a lightning strike can. Damage from a power surge is not necessarily covered by your homeowners or renter's insurance. Talk to your agent to determine if you do have coverage for this.

You can prevent a power surge from damaging your personal property by unplugging the items if you lose power. This way, when the power returns, the surge won't go through your equipment. You can safely plug the items back in after the electricity is back on.

And remember, if you lose your power, it's safer to use flashlights than candles!!!

As always, contact us if you have any further questions.

Power Surges and Lightning Strikes

There have been numerous storms throughout the Chicagoland area recently. I was wondering if my insurance protect against power surges and lightening strikes? If there is coverage, how does my insurance respond?

How to choose Umbrella limits

So we may have advanced past Insurance 101 here with this topic.  Actually, understanding what an "umbrella" is in the first place already puts you in the 200-level.  Now that we know what it is (repeat: liability above and beyond the primary limits on the auto or home policy) we have to decide on a proper amount.

Not to complicate things, but at this point I have to say there is no one right amount. That's sort of cheating, but it's true in that nobody can pick the right amount for you for legal reasons, and everybody is different.  Everybody has a different risk profile so there isn't any "one size fits all" limit.

We'll discuss the general rules of thumb after the jump.

Driving in Canada?

Oh, Canada. While many times you seem like U.S.A. North in so many ways including entertainment and sports, and your generally open policy towards border crossings for U.S. and Canadian citizens, there are some differences that are just unexpected.  Like auto insurance.

Did you know that in order to drive in Canada you have to have a special ID card issued?  Not only that, but it has to be an "original" card, meaning faxed copies are not allowed.  I just got off the phone with Travelers Insurance and they said it was lucky that I called ahead because it takes about a week to have the card processed and mailed out to me.  The card is also only good for 30 days, so if you're planning to be in Canada for longer, you'll have to work that out with the insurnace company and possibly buy something more permanent at your destination.

Why do U.S. drivers need to have this special ID card?  Here's a snippet from the U.S. State Department's travel.gov website:

Driving in Canada is similar to driving in many parts of the United States. Distances and speeds, however, are posted in kilometers per hour and some signs, particularly in Quebec, may only be in French. U.S. driver’s licenses are valid in Canada. Proof of auto insurance is required. U.S. auto insurance is accepted as long as an individual is a tourist in Canada. U.S. insurance firms will issue a Canadian insurance card, which should be obtained and carried prior to driving into Canada. For specific information concerning Canadian driving permits, mandatory insurance and entry regulations, please contact the Canadian National Tourist Organization.


Here's my experience on this whole thing...the cards are "required", but Canada also recognizes your U.S. auto insurance case of an accident.

I think the reason the cards are required is because they have to be issued by the insurance company and can't just be printed off by an insurance agent, or by a policy holder, online. This tells the Canadian authorities that the insurance is valid.  And since Canada has it's own laws regarding coverage this is important.

If you're renting a car in Canada when you get there and you purchase the rental car company's insurance, they will give you the required documentation (or it's probably already in the car).  However, if you're relying on your own insurance to cover you while renting (which is what I do), then you'll need to contact your insurance company to have them issue a card. It will be for your owned vehicle, but it will suffice.

If you have any other questions please give me a call and I'll be happy to help.

Insuring Boats

Insuring a boat isn't difficult, but it usually takes an additional step beyond what you normally do for renters or auto insurance.  The reason?  Fewer companies are interested in recreational vehicles as a risk. 

Most insurance companies like to insure what I'll call "common stuff".  Common stuff is basically what the average person has, a suburban house, or apartment, a sedan, a minivan and then an engagement ring and pair of earrings.  Why do insurance companies like this?  They can accurately predict what their potential losses will be.  They have decades of data about car accidents, house fires and theft. When you get outside of this "common stuff" zone, insurance companies have to take a closer look. When asked to insure something outside of the ordinary, they are not as sure about the outcome.  That's why insuring a boat is different than insuring a Ford.

Dog Bite Liability

Man's Best Friend, can be a homeowner or renter's worst enemy if they aren't properly insured. According to an article at the Insurance Information Institute, dog bites are responsible for 800,000 injuries that require medical attention and they account for one-third of all homeowners liability claims.

A lot of 20-somethings I talk to usually don't think about renters insurance because they say they don't own anything worth insuring, and they don't have any financial assets to protect because they just started working full time.  That thinking is wrong on so many levels.  Sure, you may not have enough furniture and property to worry about insurance, but you have the same liabilities as anyone else.  And if you don't have the money now to pay off a lawsuit, the courts have a way of collecting on judgements well into the future, like paying off student loans a bit at a time.

So, if you own a dog, read this.

http://www.iii.org/individuals/homei/tips/dogbiteliability/

This is a problem that is easy to protect against, so contact me if you have more questions.

What's your water damage IQ?

We've spoken before about the difference between flood and sewer and water backup, but now I found a video from the Insurance Information Institute that does a good job of laying out some more examples that we deal with every day.

Don't worry so much about the dollar amounts offered in the video because those are dependent on so many different factors.  Also, let me know if videos and audio clips make the website more useful and informative than just straight articles and blog posts.

Umbrella Insurance

I wanted to introduce the concept of an umbrella when it comes to insurance.  You may have heard of the term before, but not known what it meant or if it referred to the Travelers umbrella.

An umbrella is additional liability coverage that sits "over top" of your primary liability on your home or renters' and auto insurance. It usually comes in one-million dollar increments up to $5m. The point of an umbrella is to have more protection for current and future assets should there be a lawsuit against you.

Your primary auto and homeowners'/renters' policies have "Personal Liability" or primary liability limits anywhere from $100,000 to $1,000,000.  (We recommend nothing lower than $500k)  The umbrella would sit directly on top of that, effectively extending the amount of insurance available in case of a lawsuit.

The need for an umbrella typically rises as you have more assets to protect and greater ways to put them at risk (i.e. teenage drivers, boats, etc...), but it's always a good idea because the cost is not great compared to the protection given.  Lawsuits can lead to a judgement that will garnish future wages.  So even if you're just renting an apartment now and have one car, don't think for a second that's all you have to lose.  $200 now for a million dollar umbrella is worth it considering what you could lose down the road.

If you have questions please contact me for more information.

Why Buy Insurance?

I just read this article and the parts about renters' and homeowners' are spot on.  I had never been to mint.com before, but have heard of them from friends that use them to balance their financial lives.

http://www.mint.com/blog/how-to/rethinking-insurance-06292010/

Let me know what you think.

Tropical Storm Alex

Whenever we see stories about tropical storms and hurricanes we think about Florida, Texas and of course New Orleans, LA.  Those, along with Mississippi and Alabama are the usual suspects of "Named Storm" damage.  Insurance policies in those states are much more complicated and unique than policies we would find in, say, Chicago.

So I wanted to just touch on a few key differences that make insurance in Chicago a whole lot easier than in, Fort Myers, FL, or Galveston, TX.

Buying a New Car

It's not that you should necessarily consider the insurance costs when purchasing a new car, because there are a lot of more important factors to consider, but it's certainly one part of it.  We're going to cover a couple of common scenarios in this post 1) What do you need to insure your first car...and 2) What needs to happen when you're upgrading to a new car.

When you're buying your first car (new or used) to get insurance you're going to need basic facts about the car and driver(s).  On the car; Year, Make, Model, VIN.  If you're leasing it or have a loan, you'll need the bank/finance company's name and address.  On the driver(s): Name, DOB, DL#, up to 5 years of Accident/Ticket history.  Then it's just a matter of picking the right insurance carrier, which we covered here.

If you're upgrading your car, you should notify your insurance carrier right away. New cars (new or used) are sometimes picked up automatically on an existing insurance policy if you buy comprehensive and collision, but that's not guranteed. Your proof of insurance from your old car will suffice to get you off the lot (provided you're not crossing state lines).  Eventually you should notify your agent to have the new car added because if you pass 30 days there may not be coverage in case of an accident or loss.  I usually recommend making the change right away when it's on your mind.

If you have any questions please contact me and I'll be happy to chat.

Moving Apartments? Are you covered?

Most people don't stay in the same apartment year after year, so there is always going to be issues with moving.  Do I rent a truck?  Do I pay a couple of guys with a pickup truck?  Do I volunteer my friends to help me move and pay them with pizza and beer? (Insert Seinfeld reference here.)

Are your belongings and your liability covered when you're either in-between apartments or occupying more than one?  The answer here, as it is with most insurance questions, depends on the circumstances.  We'll cover a couple of those after the jump.

Moving Out!

Hi Dan:
My roommate and I are in the process of moving our apartment. We've basically sprawled out and are living out of 2 places! Is there anything we should do or know, insurance related, to help us with the transition and make sure we are covered?

Protecting Against Water Damage

A lot of questions about water damage come into my mailbox, so I thought I would address a one of the most common. What is the difference between Flood and Sewer/Water Backup? One of them can be included in your policy and one has to be purchased separately.

After the jump we'll examine each one and let you know how to tailor your insurance policy to suit your needs.

Affordable vs. Coverage

A question was posed about the desire to save money, but also have adequate coverage on personal property and belongings.  I have lots of thoughts, and some of them are actually relevant to this topic, I hope.

The balancing act between a quote that includes the coverage you need at the affordability you want is always there.  It comes down to choices like; what deductible can you afford should a loss happen? and what amount of insurance will allow me to rebuy everything that I'll need going forward?

Dan:

I'm trying to cut down on living expenses and am looking for any way to save money on my insurance. When I increase deductibles and lower limits my insurance cost decreases, but I don't know how to determine what limit or deductible I should purchase. I'm worried I won't buy enough insurance! Any advice?

What is my insurance actually covering?

Insurance policies are long...and detailed...and incredibly dry.  Remember some of your textbooks from school? Like that.  Your insurance agent is the best person to talk to about what is covered - and more importantly what isn't.

Here's a pretty comprehensive look at what is covered under most insurance policies and where many of them fall short from Forbes magazine. In the article they speak with an underwriter from MetLife Auto & Home, which is one of the carriers we represent at Gallagher.

http://bit.ly/9kpT4B

As always, contact me if you have more questions.

SOS - Stolen Winter Wardrobe!

Dan:

I'm a girl living in downtown Chicago and, as you can imagine, don't have a ton of closet space. I tried a "spring clean," but simply couldn't part with some of my beloved clothing items.

To try to solve my closet predicament I packed up my winter wardrobe and stored the suitcases in my car. Over the weekend my car was broken into and my entire winter wardrobe was stolen!

I currently purchase Auto and Renter's Insurance. Would any of these policies cover my stolen clothes?!

Do you have insurance questions? We have answers.

Please feel free to post any questions you may have in the comments section of this blog at anytime and the faithful writers of Personal Insurance Answers will get crackin' with a response.

Remember, whatever question you have is probably shared by thousands of other people in similar situation.

Let's throw back the covers on this whole "insurance" thing.

Should you pay for rent-a-car insurance?

Here's are article from MSNBC about the basic do's and don'ts at the car rental counter.

http://bit.ly/9KwxN5

The most important point is to plan ahead.  Find out what you have in place before you leave, because when you've just gotten off the plane, waited 30min for your bags, and you're ears are still numb from the guy in the middle seat telling you about the "shower curtain sales" business, is not the time to be thinking about insurance.

What to do with jewelry?

If you're like me at all after college there wasn't a whole lot that I owned that needed insuring.  I had recently bought some pants, without holes, and shirts for work (though I worked in small-time radio and didn't really care how people saw me at 4am) and I had a TV and stereo.  There was really nothing that stood out to me as being a target for theft.

But then again, I wasn't living in the nicest of neighborhoods and in fact did have my door broken down one day while at work.

I bring this up because there is one class of property that you would be wise to insure.  Jewelry.

Flood Map Changes Are Coming

Flood insurance is probably the most under-purchased property coverage in the homeowners market, but there are changes afoot in the country's flood-mapping from FEMA.  Areas that once were considered low risk (Zone X) are being reclassified after several "100-year floods" in the past couple of years, especially in the midwest.

Check out this article from FloodSmart.gov that talks about the various changes to come and what you can do to prepare.

www.floodsmart.gov/floodsmart/pages/flooding_flood_risks/map_change.jsp

As always, give me a call if you have more questions.

Auto Insurance Basics

Now that you've got the new apartment, used futon, 46" plasma screen and renter's insurance, you're ready to take the next step in protecting yourself.

Auto insurance.

It's not rocket science, but there's a first time to learn everything and you can't rely on your parents to do your laundry and keep you on the auto policy forever.

I Just Got My First Apartment...Now What?

Finished school.  Check.

Found a job.  Check.

Rented an apartment.  Check.

The next step is often overlooked, but is one of the most important in your present situation and your future outlook.  Insurance.