CYA Insurance

For those of you still waiting to take an inventory of all the stuff in your house or apartment, here's your first reminder of the season.  It'll probably take you less than 30 minutes to inventory your things using a video or digital camera but it will save you dozens and dozens of hours spent trying to think of what's been blown 4 miles away after a tornado comes ripping through your neighborhood.  So consider yourself warned.

P.S. Although making an inventory log is smart, keeping the inventory log at your home is not.  :)

 

 

If you own a business or travel for business then you need to check out this video.  It could save you a fortune!  And yes, this does happen.  I've seen it happen with every insurance company. The #1 thing you need to know is the moment you mention the word "business" in any claim, whether it's home or auto insurance, the insurance company is going to automatically deny your claim.  Period.

 

I realize boat season is all wrapped up but that doesn't mean you should drop your boat insurance.  In fact, since you'll have more free time now it's a great time to review your current boat insurance and see what you have or what options are available.  For example, if your boat is damaged would the insurance company give you a settlement amount less than the value of the boat (ACV or Actual Cash Value) or would they give you enough money to replace the boat you just lost (Replacement Cost)?

Remember just because you're not using the boat for the next 6 months, doesn't mean you can't damage the boat.  And no, contrary to popular belief your homeowner's policy DOES NOT cover your boat...or any other mode of transportation for that matter.

This video from News 9 is a great reminder to review you current coverage to see how you're protected. 

 

Anyone who has a teenager has experienced the insurance sticker shock. I get pounded with this question all the time and I love it because there are so many options for parents and kids.

Let’s start with the obvious; you can get a discount for multiple cars on the same policy, if your home and auto are with the same company, a liability only car for the teenager, and of course no tickets or accidents will save you big bucks!

Here are some less obvious ways to save: (Sshhh! This is top secret. Not really, but it SHOCKS me that some agents won’t tell their clients about this.)

1) Take a defensive driving course. (driver’s education is not the same) Not only will this help give you peace of mind but it will keep some cash in your wallet.
2) Students with a GPA of 3.0 or better may qualify for a good student discount. Yet one more reason to tell Johnny to keep his grades up!
3) Zip Code where the car is “garaged” makes a difference; meaning if you live in North OKC but your kid goes to Stillwater, chances are it’s cheaper to have their car insured in Stillwater. Yes, you can still have them on your policy you just have to ask your agent to change the zip code for that vehicle to Stillwater.

That 3rd way is my FAVORITE way for parents to save money. It’s almost like cheating the insurance company, but it’s perfectly legal and acceptable. (I still can’t figure out why agents don’t tell their customers this info. I know it’s crazy talk but shouldn’t customers be given options to lower their premiums if it makes sense???)

In most areas of our lives we expect to get what we pay for. We pay more for a steak dinner at Mahogany than a burger at McDonald's; we pay more for an Armani sport coat than the best Target can offer. But, for some reason we expect to get caviar insurance on a pizza budget; why is that?

Answer: Insurance has the “what if” factor; meaning, you only use it “if” something happens. Thus, we naturally don’t view it as having as much value since it’s not tangible.

The truth is insurance is tangible—just ask anyone who’s totaled their car and insurance replaced it for them. The moment an event happens insurance becomes ULTRA tangible. I know it can be tough to write the check each month but when the time comes to cash it in you will be thankful you did.

It’s so painful to get a call from someone who was not adequately covered when the “what if” happened. There’s nothing that can be done to recoup their loss. The house that burned to the ground. The car that was stolen. It’s all just gone.

I talked about ways to save money in the last blog, and there’s nothing wrong with making sure you get the best price for the product you need. But, in the words of James Goldsmith, “if you pay peanuts, you’ll get monkeys”.

This is a common question and for good reason. The price of everything is going up! So why not ask how you can save money on your insurance? (Please keep in mind you get what you pay for. Cheap insurance does necessarily mean goooood insurance.) Here’s some helpful info:

Let’s look at homeowner’s insurance. One of the easiest ways to save BIG MONEY is to increase your deductible. Lots of people don’t like giving insurance companies their money every single month, yet they keep their deductible so low it’s actually costing them money. Listen people, YOU CAN BE SO CHEAP THAT YOU HURT YOURSELF! If your deductible is less than $1000, then you’re probably one of these people. Often times increasing your deductible from say $250 or $500 to $1000 can save you 20% on your premiums. Here’s an example:

$500 deductible that’s costing you $1000/year
$1000 deductible that could cost you $750/year

You could save $250/year by increasing your deductible and you’re money ahead in 2 years! Just think about it. How often do people turn in claims? For most people it’s 1 time every 7-10 years. Think about those savings…
$250/year x’s 7 years = $1750 SAVINGS!!!

Here’s what you need to consider when increasing your deductible:

1. How much am I going to save by increasing my deductible?

2. How many years before the savings makes up the difference of increasing my deductible?

3. If I have a claim, can I afford to pay this deductible?

4. Would I rather pay more each month with my current deductible in case I can’t come up with the extra cash of a higher deductible?

Here are some other simple (and less risky) ways you may be able to save on your insurance:

1) Buy your home and auto insurance from the same carrier.
2) Install a burglar alarm, some companies offer a discount.
3) See if your provider offers a non-smoker or senior discount.
4) Buy a newer home the insurance will be cheaper.
5) Don’t build your home on a fault line, below flood level or in a hurricane prone area.

For most of us it’s so hard to hold back when there’s an abundance of something available. Whether it’s candy, money, pets, jewelry, food (guilty), drinking, or even talking it’s best to exercise some restraint. Some suffer from an abundance of insurance—insuring everything you have simply because you can.

OK, so the truth is you can never have too much insurance because you never know what can happen. Everyone, however, has a budget and no matter how big or small, WE ALL PAY TOO MUCH, right?

So what do you insure for then? And how much is too much? Sure there’s always outlandish examples of when people lose everything because they slammed into Roseanne Barr and she sued for everything they had. But what’s the chance of that happening?

What you should insure for is the everyday occurrences that can cause your family Financial Catastrophe. These are events like tornado's, fire, or hail storms that damage your home causing thousands of dollars worth of damage.

On the auto insurance side, you gotta worry about slamming into that person you really don’t like at work and them suing you for everything your worth…including your future wages! (Yes, they can do that)

Personally, I believe YOU are the most important thing to insure. You are the biggest asset your family has and if something happens to you the money stops. Game Over.

I could go on and on with examples but instead I’ll give you some guidelines to consider. You should insure if:

1) You could lose substantial money (thousands of dollars) from a loss on an asset—be it equity or income on an asset,

2) There’s a good chance you could harm yourself or someone else by using it--car, motorcycle, boat, ATV, golf cart (it actually happens)

3) A loss or disability could cause financial hardship for you or your family-- loss of life, loss of income (disability), or loss of health.

4) An item is practically irreplaceable (emotional attachment doesn’t count) or the cost to replace it would exceed what you paid for it--antiques, paintings, jewelry, or your 1950’s Topps Red Backs baseball card collection.

I’d love to hear some of the crazy things you’ve heard of people insuring or even stories of people being saved by having the right insurance.

Check us out on Facebook to post your comment there.

The other day someone asked me why we chose CYA, or Cover Your Assets, as our company name.  As you can imagine, with a name like “CYA” we get that a lot!  So I thought I would take the time to tell you the story behind CYA.

About a year ago I began to realize something, whether or not all insurance agents are the same, they sure are perceived that way.  Have you ever noticed that insurance agents seem to outnumber the general public 2 to 1?  And that every one of them wants to give you a “free quote”?  Whether agents want to admit it, most people view insurance agents as “used car salesmen”.  All they want is to find a way to “get you into that new policy”, even if it means giving you a “great deal” on a policy isn’t in your best interest.

The fact is, no one should have to “sell” insurance of any kind.  You either need a particular type of insurance protection or you don’t.  

It’s sort of like going to the doctor, you know you have a need, you may not know exactly what it is, but the doctor should have your best interest at heart and recommend an appropriate treatment, right?  The same goes for an agent.  

When you talk with your agent they should:
    --Ask questions
    --Give you options
    --Give simple explanations you can understand
    --Let you make the decision that’s best for you and your family

An agent’s job is to cover your assets.  Period.  That’s why we’re CYA.

Spring is heating up and golfers are finding every excuse possible to get out there and make a fool of themselves--which includes me.

It seems every year I “swing for the fences” and end up hitting at least a few houses and come close to breaking a few windows.  Fortunately, I can rest easy knowing that my insurance can help take care of those shanks.

What’s different is personal golf carts.  You would think that since it’s a method of travel it would be covered under your auto insurance, but that’s not the case.  There’s most likely a bit of coverage through your homeowner’s policy but naturally, there’s a limitation to liability and physical damage to the cart.  The biggest exclusion to coverage is when you or someone else is using your cart off your property or off the golf course…like using the cart as a method of travel in a retirement community or letting your kids drive it around the neighborhood for kicks.

As we’ve all experienced there’s bound to be some injuries with moving vehicles on and off the golf course.  However, the more serious injuries seem to happen when people are using the cart for non-golfing means, like the examples above.  These typically lead to people falling out or jumping out of the cart and getting a serious neck or head injury, like a concussion.  This is why you need to CYA.

(Btw, coverage for your Golf Cart is usually quite cheap. Averaging, $8/month)

So talk to your agent for recommendations on coverages, ask them about these things:
Liability (helps protect your assets if someone sues you)
Guest Passenger Liability (helps cover your assets if your cart buddy sues you)
Medical Payments (helps pay medical expense for you or anyone else in the cart)

 

In the mean time here’s some easy guidelines to check out:
Pay Attention—watch your kids if they’re driving around on the cart and who is riding with them.
#1 Rollercoaster Rule—keep all hands and feet inside the cart at all times and remain seated.
2 seats=2 people—not 13 people all hanging on for dear life.
Don’t drink and drive—just like any other vehicle, use your head.

This is the Cover Your Assets (CYA) Insurance blog - a place to not only tell you a little bit more about ourselves in an informal setting, but a place to talk about our industry in general… how insurance works, how you can make sure you’re protected with the right type of insurance, how you can work with a company like us to best serve your needs, and so on.

Check back here often for our updates, and of course, if you want us to talk about anything in particular - just let us know in the comments section (and we’d be glad to oblige).

Thanks,
The CYA Insurance Team