What It Is And What It Isn’t

First, what it is.  It is a liability only policy that adds a high amount of additional liability coverage to the personal auto and home policies.  In most cases it adds $1,000,000 or more of additional liability protection over the personal auto and personal liability (home) policies.  These catastrophe liability policies are very economically priced, yet offer tremendously high limits of coverage.  A person who owns one house and two autos can purchase a one million umbrella policy for as little as $120 per year.  That means for $120 per year a person has added an extra $1,000,000 of liability protection over their personal liability and auto liability coverage.  There are a few important items to note.  Some companies require that they also insure the home and autos that go “underneath” the umbrella.  Some companies require customers to increase their current liability limits before they can add the umbrella policy.

Most companies do not include un-insured motorists bodily injury with the umbrella coverage and charge extra to add this coverage.

Check with your agent about these things.

What an umbrella policy isn’t.  It does not cover property at all.  It isn’t what it sounds like; it doesn’t cover “everything else” that the other insurance policies don’t cover.  For example, if your home has a fire and you own a boat that is in the garage and it burns up, and the boat is worth $3,000 and the home policy doesn’t cover it, the umbrella policy won’t cover the boat either.  The umbrella policy does not cover any property, it is a liability policy only.

Personal umbrella or catastrophe liability policies are a crucial part of insurance protection.  Folks who own their own business are encouraged to purchase an umbrella policy.  People who have young drivers, or families who’s homes and or assets exceed their auto liability limits should consider owning an umbrella policy.  They are easy to get and very inexpensive.

This endorsement allows auto insurance policyholders to “lock in” their auto insurance premiums for longer than 12 months.  The locked in rate remains in effect year after year until the policyholder does one of the following:

*Adds or removes a vehicle from their policy

*Adds or removes a driver from their policy

*Changes their primary residence

That’s right; speeding tickets, fender benders, accidents, not even company rate changes will change the policy premiums for that policyholder unless they make one of those three changes listed above.  This gives policyholders control over their auto rates by extending Erie’s already 12 month rate.  This new endorsement can be added when one of those three changes occurs or on the policy anniversary (renewal) date.  Other discounts, such as home/car, can be added and take effect immediately as always.  Studies show that about 50% of Erie’s auto policyholders would lock in their rates for at least three years!

Contact our office for more details.

Car Insurance From Lampton/Engle Agency Beavercreek Ohio

Remember to contact Brian, Debi, or Barb about your home or auto insurance, we will call you back!

God Bless everyone, have a joyous and safe holiday season.

Brian

• If you are buying an artificial tree, ensure that it has a “Fire Resistant” label. This does not mean that the tree will not catch fire; it only means that it is more resistant to burning.
• When you are buying a live tree, ensure that it is fresh. If the tree is fresh you will not be able to pull the needles from the branches. When it is tapped on the ground needles will not fall off. If the truck is fresh it will be sticky with resin.
• Inside your home position the tree away from the fireplace and away from radiators. Heated rooms will dry a live tree quickly. Make sure that the tree stand if filled with water. Place tree away from doorways and areas that are used often in the house.

• Use lights that have been tested for safety by a recognized laboratory. Use lights that have plugs and fuses. Use lights labeled for outdoor use for outdoors and those meant for indoor use indoors.
• Check lights both old and new for cracked or broken sockets, bare wires or loose connections before using them.
• Replace damaged bulbs immediately. Use same wattage bulbs.
• Use extension cords that are rated for intended use.
• Use insulated tape to fasten lights outdoors to trees, house wall etc.
• Turn off outdoor light when you go to bed or leave the house.

• Use fire resistant material to decorate the tree. Use nonleaded material for decoration, as leaded material is dangerous if children ingest it.
• Burning candles should be kept in view at all times. Place them out of reach of children.
• Do not place lighted candles near trees or other greens. Use non-flammable holders.
• If you have small children at home, then try not to use decorations that look like candy. As this might tempt them to eat it. Do not use decoration with small removable parts and the children could eat them up.
• While using artificial snow spray, read instructions on the can carefully to prevent lung irritation.

• “Fire salts” produce colored flames when thrown into wood fires. They contain metals and are poisonous if ingested. Therefore keep them away from children.
• Do not throw wrapping paper into the fireplace, as they will burst into flames suddenly causing a fire flash.
• Flying sparks may cause flammable material around the fireplace to catch fire. Prevent this by placing a screen around the fireplace.

What are the factors that can affect the costs of my car insurance?

• Gender, age and even marital status.
• Driving history. The “cleaner” driving record you have, the lower your insurance costs will be.
• The area of driving. The insurance company will quote a higher rate in a big city.
• The condition of your car.
• The amount of insurance.
• Credit history will also influence the amount of your premium.

How can I my auto insurance rates be lowered?

• Drive legally in order to maintain a good driving record.
• Comparison shop for insurance.
• Obtain higher insurance deductibles.
• Get discounts whenever they apply to you.
• Protect your credit rating.

Every Insurance company uses their own rates and they are based on their own experience.  A major factor in auto rates in recent years is a persons credit history.  Insurance companies will rate based on a number of factors relating to that persons credit history, such as the number of loans they have , the number of credit cards they have, and what the credit limits are, their pay history and other factors are used.

The best thing to do is develop a good working relationship with your agent so you can have conversations about these things in order to maximize your coverages and minimize your premiums.  Our agency prides itself on people who genuinely care about our clients and strive to do our best to return calls, provide value and most of all deal honestly with our customers.

Contractors Insurance

We see the work vans and trucks that advertise “licensed, Insured, Bonded”.  What does that really mean?  Licensed, means the contractor has properly qualified for, and purchased the operating licenses from the state in which they operate.  Bonded, can mean different things because there are many different kinds of bonds.  In most cases, if the contractor has to “pull a permit” for the particular job, the contractor may also have to purchase insurance and a bond.  That type of bond is a license/permit bond.  It is usually required by a city or county for specific types of work, such as plumbing, electrical, heating and air etc.  The bond simply stated will “ensure” that if upon inspection of the contractors work it does NOT meet code, the bond will pay another contractor to bring it up to code (up to the limit of the bond).

Insuredmeans that the contractor has purchased what is commonly referred to as a commercial general liability policy.  The basics of this policy is to protect the contractor for mistakes they make that cause bodily injury or property damage to someone or something else. 

What It Covers:

Injuries to others (not workers for the contractor or the contractor himself) caused by the contractors or workers of the contractor’s negligence.   Or damage to property of others (not owned by the contractor or a worker for the contractor) caused by the negligence of the contractor or the workers.  Some examples include:

A paint can falls from the painters ladder onto a passerby, injuring that person.

A spark from the acetylene torch the contractor is using catches the kitchen on fire.

A homeowner is walking across the new deck installed by the contractor and a loose board drops and the homeowner falls breaking his leg.

What It Doesn’t Cover:

The insurance does not cover the contractors “work”.  Nor will it cover injuries to the contractor him/herself, or any of the workers weather or not they are paid by”1099″ or “W2″.  It does not cover the customer not paying for, or not liking the work.  Some examples are:

The homeowner doesn’t “like” the new deck installed because it is the wrong color.

The contractor falls off the ladder breaking his own leg.

The contractor breaks his brand new saw trying to cut a board on the job.

The homeowner won’t pay the contractor for the completed job.

The contractor uses the wrong glue to seal down the new linolium floor and it ruins the new linolium.

The contractor doesn’t put the fence posts in concrete and the fence falls over.

The preceding examples provided are “what if” scenarios and should not be taken for guaranteed claim payment.  All  claims have their own set of unique circumstances, and each claim is reviewed based on the facts, and coverages determined at the time of loss.  In most cases, injuries to the contractor and their workers would be addresses by “workers compensation”.

In the face of financial insecurity in the market place, workers and retirees need to have assurances that their money is safe, sound, secure.  We would like to help.  One of the issues facing workers today is the management of their 401K retirement accounts upon separation from service with an employer.  In todays uncertain economic times safety and security seem to be un-attainable.

We suggest these folks consider insurance annuities.  Annuities are safe, secure and can be used in individual IRAs, Roth IRAs, 401K retirement roll overs, or as a replacement for traditional bank CD’s.  Annuities generally pay a higher interest rate than the bank CD’s and are guaranteed contracts.  This means that the investor will be guaranteed a positive investment result.  We only recommend annuities from the highest rated companies who practice the best, most conservative, financial management and have a history of solid financial ratings.

Contact Brian Lampton today and ask how an annuity could provide peace of mind, and an excellent addition to any one’s retirement portfolio.

Location:

The best place for your smoke alarms:

On every level of your home, including the basement and workshop

Outside every bedroom

On the ceiling or 6 to 12 inches below the ceiling on the wall.  Keep them away from air vents.

Testing:

Test the alarm batteries once a month

Press the test button with your finger

Replace the batteries once a year

Maintenance:

Clean the alarm following the manufacturer’s instructions.

Vacuum the grill-work on the detector periodically to keep it dust-free.

Preventing Nuisance Alarms:

Move the alarm away from the kitchen or bathroom.

Get a different type of smoke alarm, like a photoelectric that’s less sensitive to common causes of false

alarms.

Choose a smoke alarm that has a silencing feature, so nuisance alarms can be stopped quickly and

easily.

Before Winter Storms and Extreme Cold

Add the following supplies to your disaster supplies kit:

• Rock salt to melt ice on walkways
• Sand to improve traction
• Snow shovels and other snow removal equipment.

Prepare your home and family

·         Prepare for possible isolation in your home by having sufficient heating fuel, because regular fuel sources may be cut off. For example, store a good supply of dry, seasoned wood for your fireplace or wood-burning stove.

·         Winterize your home to extend the life of your fuel supply by insulating walls and attics, caulking and weather-stripping doors and windows, and installing storm windows or covering windows with plastic.

·         Winterize your house, barn, shed or any other structure that may provide shelter for your family, neighbors, livestock or equipment. Clear rain gutters; repair roof leaks and cut away tree branches that could fall on a house or other structure during a storm.

·         Insulate pipes with insulation or newspapers and plastic and allow faucets to drip a little during cold weather to avoid freezing. Be certain that your waste plumbing system will safely handle the water without clogging or freezing.

·         Keep fire extinguishers on hand, and make sure everyone in your house knows how to use them. Use one outside to familiarize yourself with the pressure and dispersion, and then have it recharged immediately.

·         House fires pose an additional risk, as more people turn to alternate heating sources without taking the necessary safety precautions.

·         Learn how to shut off water valves (in case a pipe bursts).

·         Know ahead of time what you should do to help elderly or disabled friends, neighbors or employees.

·         Hire a contractor to check the structural ability of the roof to sustain unusually heavy weight from the accumulation of snow – or water, if drains on flat roofs do not work.

Dress for the Weather

·         Wear several layers of loose fitting, lightweight, warm clothing rather than one layer of heavy clothing. The outer garments should be tightly woven and water repellent, and bright colors are suggested for safety.

·         Wear mittens, which are warmer than gloves.

·         Wear a hat. Body heat escapes rapidly from the head.

·         Cover your mouth with a scarf to protect your lungs.

Winter Fire Safety Tips from The U.S. Fire Administration

§         Smoke alarms should be installed on every level of your home. Test the batteries every month and change them at least once a year or when the alarm ‘beeps’ at regular intervals.

§         Space heaters should have an automatic emergency shutoff device in case they tip over. Only use the fuel recommended by the manufacturer.

§         Never refill a space heater while it is operating or still hot. Refuel outside, away from the house.

§         Wood stoves must be properly installed, away from combustible surfaces, have the proper floor support and adequate ventilation.

§         Never use flammable liquids, such as gasoline or lighter fluid, to start or accelerate a fire.

§         Have furnaces and chimneys professionally inspected annually and cleaned if necessary. Creosote buildup is a common cause of chimney fires.

§         Use a glass or metal screen in front of fireplaces to prevent sparks from igniting nearby carpets or furniture.

§         Never thaw frozen pipes with a blowtorch or other open flame. Use hot water or a UL listed device such as a hand-held dryer.

§         Dispose of hot ashes in tightly sealed metal containers placed away from the house.

§         Don’t use the oven to heat homes. Besides being a fire hazard, it can be a source of toxic fumes.

§         Keep fire hydrants clear of snow for easy access. 

• Between 1997 and 2002, the average medical liability payment to claimants in “serious” accidents, that is, accidents in which one person was admitted to a hospital, was $46,199.
• Between 1997 and 2002 62% of all claimants that received any amount of bodily injury liability payments also were paid money for lost time from work.
  • Of those 62%, the median number of days lost from work was seven.
  • 20% of those who lost time lost more than one month of work.
  • The payments for lost work time range from an average of $5,000 for the median claim, $15,089 for one month claims and $30,253 for those out of work 3 months or longer.

These dollars area also paid under the bodily injury per person and per accident limits.

• Between 1997 and 2002, 25% of claimant’s cars in accidents where bodily injury liability payments were made contained more than one passenger. In over 83% of those instances, when one passenger was injured the others were also injured. So, consider the above figures and at least double them in one quarter of accidents.
• Courts tend to be generous with liability awards. From 1997 to 2002, fully 81% of bodily injury claimants received bodily injury payments that were greater than the actual losses they claimed.