The San Diego Insurance Blog

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2010-04-30T01:58:00.000-07:00

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How to Review Your Homeowners Insurance Renewal Statement

2010-02-10T18:18:00.000-08:00

For most of us, our home is our single largest and most important investment. Many of us have poured thousands of dollars and countless hours into maintaining, improving and (hopefully) paying off our homes. Many people own their homes free of any mortgage. These assets are pure equity. Certainly its worthwhile to invest 15 minutes a year to be sure it's properly insured.

Thankfully, the insurance company offers you a perfect reminder and opportunity in sending out your annual renewal statement. Even if your insurance is paid by your mortgage company as part of your impound account, the insurance company still mails you a statement of renewal every year to update you with your current coverage limits and deductible.

Here's a few important steps you can take to be sure that HOME SWEET HOME is properly protected.

1. Check the basics. Check your name, address and any other description of the insured property. Make sure there's been no change of vesting or ownership that needs to be updated. Check your address to be sure no numbers are transposed.

2. Check the mortgagee clause. Here's where you can be sure that the current mortagee on your home is listed correctly. Check the lender, address and your loan number. Be sure there's no old information there. Maybe you had a HELOC (Home Equity Line of Credit) or a second mortgage that no longer applies. Be sure to get them removed.

HEADS UP: Whenever you have a significant claim, the mortgage company will be one of the payees on your claim settlement check. Just that alone can be an inconvenience. But it becomes a major hassle when one of the institutions listed no longer has a vested interest in your home. The insurance company is bound by contract to include the mortgage company on all settlement checks beyond a stated threshold.

*3. Check the coverage on your home (dwelling or building). This is without question the single most important coverage to examine, consider and adjust whenever necessary. Having been an agent during the two raging firestorms in San Diego, CA in this decade, I can tell you that underinsured homes are just NO FUN! Two of my clients lost their homes in the 2003 fires and fortunately they were both adequately insured. (we call all our homeowner clients once a year to review their coverages and suggest improvements and adjustments) But I can tell you that there were literally hundreds of people in the area that were not so fortunate. Many were underinsured by over $100,000! Contractors were giving rebuilding bids on homes for $400,000 with insurance policies with limits less than $300,000. See if that doesn't tweak your financial well-being just a little. Here's the solution.

Get an accurate rendering of the square footage of your home. Check county records, take a look at zillow.com, call your favorite Realtor, or get a tape measure and do your thing. Usually you don't include the garage in this calculation. Once you get your square footage, then you need to determine the building cost per square foot in your area for a home like yours. Call a local contractor for a quick estimate or you can call your insurance agent. Average costs in San Diego run about $200 per square foot. With that, a 2000 square foot would take about $400,000 to rebuild. Custom homes can be significantlly more. For a more complete discussion of this, check out: How Much Homeowners Insurance Do You REALLY Need?

Your contents coverage is usually 75% of the amount you have on your home. For example, if you have $400,000 on your home, you'll have an additional $300,000 to cover your personal property (furniture, clothing, dishes, TV, collections, shoes, tools, etc) Usually this is enough, but think through it anyway. If you have antiques, art, collections of any kind then you may need more. Ask your agent for help if you need to.

4. Look at your Personal Liability Coverage. This is the coverage you need when you get sued. Little Johnny runs across your front yard and trips on one of your sprinklers and ruins his chances to become America's Next Top Model and his parents sue your for $250,000. Make sure you don't scrimp here. It's not too expensive to get $500,000 or even $1 Million of liability coverage. If you have $100,000 or less, you could be setting yourself up for a mess just waiting to happen. Put a really big checkbook between your assets and someone who sees an injury as a lifetime paycheck. You might even consider a Liability Umbrella.

5. Check your 'special limits'. This is a REALLY BROAD subject that I just can't do justice to here in this post. Simply stated, there's limits on many things such as cash, computers, cameras, jewelry, furs, goldware, silverware, tools, etc. Call your company and ask for a review. You can increase many of these limits for just a few dollars a year. Sometimes the available increase isn't enough. That's the perfect time to consider a Personal Articles Floater (or it's called many different names) It's a policy that's designed to place stated amounts of coverage on many items from jewelry, business tools, iPods, hearing aids, cameras, musical instruments and on and on. If you have more than 'the average Joe' of ANYTHING, then check this out FOR SURE!

6. Check your deductible! This can be a tremendous cost-control tool in your insurance spending. Simply stated: The larger your deductible, the greater your savings. Usually you can save close to $100 per year just by going from a $500 deductible to $1000. Pick the largest number you can stand without losing sleep at night and ask your agent or company the savings you'd realize by changing. If you have a $250 or smaller deductible, it's definitely time to change it UP! Keep in mind that you usually hit a point of 'diminishing returns' once you get to $4000 or more. This means that you'll save less and less for each additional $1000 you choose. It might make sense to go from $1000 to $2000 if you save $85 a year by doing so, but not from $5000 to $6000 if you only save another $21 by making that jump.

Monitoring your insurance costs and coverages can result in a lot of savings AND peace of mind. Be sure you keep notes and file your thoughts and changes from year to year. These recoreds will make your annual call quicker and easier each year.

Feel free to contact me anytime if you have questions.

Till next time...

It's a Good Life !

Dennis Volz Insurance Agency
10791 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
eMail:Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com

Insuring Savings With A Simple Checklist

2009-08-21T11:50:00.000-07:00

Insurance needs change with age and circumstance, yet few people take the time to review their insurance needs and find savings to fatten their monthly budget. It is, though, one of the easiest ways to cut living expenses and save money. On the bright side, it takes just a phone call to switch policies, get a new quote, or change the terms of an existing policy. Here are a few things to check every year, to determine if you can save money on your insurance bills.

* Get new quotes – Every year, it pays to look around and see what other companies are offering for their insurance policies and costs. Just shopping around can save hundreds.

* Bundle your insurance needs – If you have your car with a company that also offers homeowners insurance, it can save you money on both, typically a 10% discount.

* Check your deductibles – If you can stand to have higher deductibles, it will lower your insurance premium.

* Opt out of term life insurance – Once your kids are no longer dependent on you for support, you can cancel your term life insurance policies. Otherwise, you should carry about seven times your income on term life insurance to take care of your kids in case you die.

* Go with a group – Are you a member of a group that offers special discounts on life insurance? Check them out. Members of the AARP, teachers, student body alumnae, retired, or military personnel all can find group discounts for being a member of any of these groups.

* Remove extras you don't need – If you already have towing benefits with AAA, there's no need to carry towing insurance through another provider too. Collision insurance is only good to carry for cars that are less than 10 years old, otherwise, it's the same as replacing the old car out-of-pocket (about $1000).

* Pay yearly or semi-yearly – You can save another 5 to 10% of the policy simply by paying ahead of time, instead of monthly. A few extra dollars a month to process the loan on a monthly basis may seem like little, but it can add up to 10% by the end of the year.

Keeping, Dropping or Changing Your Comprehensive or Collision Coverage

2009-03-29T14:19:00.000-07:00

Managing the cost of your insurance car insurance northern ireland, for example) can be as simple as answering a few simple questions. Here's a short discussion that will walk you through the process of deciding to keep, drop or to change (different deductible) your comprehensive and/or collision coverages in your car insurance policy. First we need to do a very short 'inventory.'
TAKING YOUR FINANCIAL PICTURE -

Insurance is simply the management of risk. Owning and driving an automobile is a risk. You risk injury, loss of your vehicle, and potential liability for damage to others. The purchase of insurance is merely an agreement with the company to transfer some of your risk to them. You are saying, "I choose not to assume all of this risk myself. In exchange for my premium dollars, the insurance company will suffer some of the financial loss instead of me." With this thought in mind, you must decide how much risk to transfer and in doing so, decide how much risk you are willing to keep yourself in the from of deductibles and unpurchased coverages.
Before we can get to ways to save money on your premium, you need to take a short inventory of your financial picture. Before you get to deciding whether to take a $100 or a $500 deductible on your collision coverage you first need to decide that you can reasonably handle a $500 loss. So before we jump into any tricks of the trade, lets take a moment to diagnose your "loss threshold."
Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!
In addition to settling on your personal loss threshold, it is important to consider your previous history of insurance losses. If you have had several losses in the last 10 years, you may be wise to lean more heavily on your insurance coverage. If, on the other hand, you go almost forever between losses, you will save premium dollars by assuming more of the risk yourself in the form of higher deductibles or dropped coverages. Now, if assuming this extra risk is going to give you some sleepless nights and make you a nervous wreck every time you get into your car, then don't do it! Part of what you buy in the purchase of insurance is peace of mind.
What matters most is where you are comfortable. Take a moment to apply a value to your "Loss Threshold." Try thinking in terms of $50, $100, $250, $500, and $1000. How much money can you, with peace of mind, place at risk? As you will see below, once you determine your Loss Threshold, you need only to weigh the cost of the coverage versus the potential for loss to you. Insurance can be a reasonably simple commodity to manage.

1. DROP YOUR COLLISION COVERAGE-

So you have been driving "Old Betsy" now ever since Noah was working on his boat. To you, its worth every bit of what you may have paid for it way back when but to another car buyer, its just an old bucket of bolts, rubber, faded upholstery. Unfortunately, the insurance company views your precious 4-wheeled family member with the same cold business approach as a prospective buyer. Its only worth...well, its worth a lot less than you would hope.
There comes a time in the life of almost every car when its value does not warrant the cost of collision coverage any longer. Collision coverage is that portion of your insurance that pays to fix damage to your car suffered by a collision. You will need this coverage for your car when you are in an accident that is your fault or if your car is the victim of a Hit & Run accident. Looking back to your Financial Picture we discussed above, compare the cost of your coverage with the potential for loss.
In discussions with your agent or by examining your renewal bill, identify the annual cost of your collision coverage. By looking in the newspaper or car-trading publications, determine the actual retail value of your car. Be careful to be objective here and remove whatever emotional attachment you may have to your car that might unrealistically increase its perceived value.

Let's say that the real value of your car is $1200 and the annual cost of just your collision coverage with a $100 deductible is $150. Now here are the Test Questions:

Can I afford to withstand this loss without any help from the insurance company? (in this case $1200)
Would I rather save $XX (in this case $150) every year and risk the loss of the car myself? By not getting this coverage I am saving $XX ($150) per year. I will save enough to make up the loss ($1200) in Y (8) years. (1200 ÷ 150 = 8)
Does my driving and claim history lead me to believe that I might go Y (8) years without suffering that sort of loss?

If the answers to these questions are yes, then you might be well on your way to cutting your insurance costs by dropping your collision coverage. These simple Test Questions can be applied to virtually any insurance-buying decision. Take a look at the next example.

2. DROP YOUR COMPREHENSIVE COVERAGE -

Comprehensive coverage like collision coverage is designed to protect your car from loss. Much of the same logic that we applied to collision coverage can be used to decide on the fate of your comprehensive coverage. There are, however some important considerations to weigh in your analysis.
Comprehensive coverage covers almost anything that happens to your car except collision. The most commonly submitted claims are broken windshields, stolen hub caps, stolen stereos, vandalism and theft of the entire vehicle. Note here that many of these losses produce the same amount of financial loss regardless of the value of the car. It costs virtually the same to replace a windshield in a 75 Ford as it does in an 85 Ford. Consider also that the cost of comprehensive coverage is much less than collision coverage. The ratio between money saved and dollars put at risk is smaller and therefore you may be less eager to drop this coverage. Ask yourself the Test Questions that we did for collision coverage and make an informed decision.
If your vehicle is financed or leased, always remember to check with your financial institution before changing these coverages. Your loan contract may have certain requirements and deductible limitations that somewhat restrict your options.

3. RAISE YOUR DEDUCTIBLES -

If deleting collision and comprehensive coverage puts you at greater risk than you are willing to assume at this time, you may want to consider increasing your deductibles as a compromise. As you increase your deductibles you decrease your premium. The insurance company is going to give you a break on your premium here for two reasons. First, when you have a loss, the insurance company will pay you less money when you have a higher deductible. Secondly, with a higher deductible, you will have fewer claims that are presented to the insurance company in excess of your deductible.
When you take a higher deductible you are saying that you, for the consideration of a lower premium are willing to assume a greater portion of the loss yourself. You trade the certainty of a lower premium for the uncertainty of more loss to you should a claim occur.
If you have decided in your Financial Picture that you are comfortable with a $500 loss (and the premium savings is enough) and you own a car worth $3000 then you probably do not want to drop your collision coverage completely. But you can increase your $100 collision deductible to $500 and your zero comprehensive deductible to $100. Let's examine the numbers. If you save $30 per year on your comprehensive coverage and $65 per year on your collision deductible you realize a $95 per year savings the first year and every year thereafter. You are only increasing your risk by $100 on the comprehensive coverage and by $400 on the collision coverage. Remember you already had a $100 deductible on collision and increasing it to $500 changes your participation in the loss by $400. Again, ask yourself the same questions.

Can I afford to withstand this loss (the bigger deductible) without any help from the insurance company?
Would I rather save this money ($95) and risk the larger deductible loss myself? By taking this bigger deductible I am saving $95 per year. I will save enough money to make up the loss in one year for a comprehensive loss and in just over four years for a collision loss.
Does my driving and claim history lead me to believe that I might go one or five years without this sort of loss?

If the answers are primarily yes then most likely an increase in deductibles is right for you.

It's a Good Life !

Dennis Volz Insurance Agency
10791 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
eMail:Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.

How to Review Your Auto Insurance Renewal Statement

2009-03-29T14:17:00.000-07:00

You can save TONS OF MONEY by just taking a few minutes to look over that annoying little renewal statement that has your insurance bill attached to it.

We sure get a lot of paper these days. Seems that in this paper-LESS society, we shouldn't have quite as much paper as we do. True... we can scan it, archive it, or just throw it away. There is one piece of paper that you'll want to pay attention to -- Its your Auto Insurance Renewal Statement. You'll get these once or twice a year depending on how often your auto insurance renews. You'll probably also get one whenever you adjust your coverage or change vehicles.

One of the reasons the insurance company sends these statements out to you is to give you an opportunity to pause and determine if those coverages and limits and deductibles you started with so long ago still apply to you. Things change and so should your insurance policy. Sometimes people keep up with it; sometimes they don't. By not paying attention to these renewal statements, you could be spending needless premium on coverage you no longer need or want, or you could be setting yourself for an uninsured or underinsured loss by having limits that are too low or thinking you have coverage that you really DON'T have.

Here's a few steps to help you quickly and systematically look over that statement in just a few minutes.

1. Quickly review all the basic information: Name, address, vehicle description. OK there?

2. Next take a look at the rating information. You might need a little help from your company or agent on this one. Companies apply different rating factors for different driving characteristics Thes can include how many miles you drive, your age, your years of driving experience, ticket, accidents, etc. A quick call to your company or agent and they can walk you through these in just a couple minutes.

3. Check your LIABILITY LIMITS. This is usually the first coverage listed. This is probably the most important coverage to examine. This is the coverage that stands between some accident that you may cause and everything that you own.

Individual state laws mandate different minimums. California minimums are 15/30/5. Others are listed here. This means the insurance company will pay up to $15,000 for the injuries you cause to any one person, up to $30,000 for the injuries you cause in any one accident, and up to $5,000 for any property damage you may do (the car, house, light post, whatever you happen to hit). While these limits may seem like lots of money, they can evaporate very quickly. Consider a recent client of mine who sustained injuries in an accident and spent over $14,000 before ever even leaving the emergency room.

My recommendation is to think in terms of at least 100/300/50 instead of whatever your state minimum might be. Consider more if you own a home or have appreciable assets. Cut and slice and minimize on other coverages, but this one is where you protect everything you own against the possibility of a large liability lawsuit.

4. Check your Medical Payments. This is usually listed second. It's the coverage that provides (depending on your state insurance laws) coverage for injuries to you and other pople in your vehicle. There's some overlap here with your health insurance. This can be used to pay deductibles, copayment and other portions of your medical bills that may not be covered by your health insurance.

5. Check the coverage on your vehicle -- Specifically Comprehensive and Collision coverage. Collision coverage pays for your car when you sustain damage from a collision. Comprehensive covers (almost) everything else. Decide if the annual cost of these individual coverages makes sense compared to the value of your car. Check here for a more detailed discussion of this process.

6. Don't neglect Uninsured and/or Under Insuraced Motorist Coverage. There's LOTS of uninsured drivers on the road these days. Some surveys estimate as high as 25%. That means one out of every 4 drivers on the road can be uninsured. This is the coverage that for just a few dollars a year 'constructively' gives all those drivers insurance coverage to pay you if they cause an accident with you. You should consider having limits at least equal to your liability limits (#3 above.)

6. Make sure you're receiving ALL the discounts you can get. Here's where that phone call can pay some dividends. There are many discounts available. There are discounts related to your car: Airbags, alarm system, theft tracker systems and others. There are also other discounts. One of the biggest can be the Multi-Line Discount. This is where you save even more on your auto insurance if you have other policies such as homeowners or life insurance with the same company. Also remember to check for short mileage, good student, mature driver, defensive driving class, loyalty (with the same company for a long time). Just call the company and ask them to list all of the possible discounts to see for which ones you can qualify.

This process might take you a little longer the first time you do it. I suggest you make some notes right on your renewal notice and file it for next time. Then when you get your next renewal, you can get your first one out and compare and use the notes you make to ask more questions that will either save you money or better protect your hard-earned assets.

Till next time...

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Website: Dennis@DennisVolzInsurance.com

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.

Current State Minimum Auto Insurance Liability Limits

2009-03-28T14:20:00.000-07:00

Alaska 50/100/25
Alabama 20/40/10
Arkansas 25/50/15
Arizona 15/30/10
California 15/30/5
Colorado 25/50/15
Connecticut 20/40/10
Delaware 15/30/5
Florida 10/20/10
Georgia 15/30/10
Hawaii 20/40/10
Idaho 20/50/15
Illinois 20/40/15
Indiana 25/50/10
Iowa 20/40/15
Kansas 25/50/10
Kentucky 25/50/10
Louisiana 10/20/10
Maine 50/100/25
Maryland 20/40/10
Massachusetts 20/40/5
Michigan 20/40/10
Minnesota 30/60/10
Mississippi 25/50/25
Missouri 25/50/10
Montana 25/50/10
Nebraska 25/50/25
New Hampshire 25/50/25
New Jersey 15/30/5
New Mexico 25/50/10
Nevada 15/30/10
New York 25/50/10
North Carolina 30/60/25
North Dakota 25/50/25
Ohio 12.5/25/7.5
Oklahoma 10/20/10
Oregon 25/50/10
Pennsylvania 15/30/5
Rhode Island 25/50/25
South Carolina 15/30/10
South Dakota 25/50/25
Tennessee 25/50/10
Texas 20/40/15
Utah 25/65/15
Virginia 25/50/20
Vermont 25/50/10
Washington 25/50/10
Wisconsin 25/50/10
West Virginia 20/40/10
Wyoming 25/50/20

Condo Unit Owner? Here's the Insurance You Need!

2009-02-18T05:08:00.000-08:00

Read through the article and your HOA "secret" is indicated with ***** below.

Your condominium or Condo as we affectionately call it is a very important investment. Protecting it properly is critical to your financial security. If you’ve only been guessing until now, then guess no longer.

Insurance for your condo need not be a shot in the dark. There are simple ways to determine EXACTLY how much insurance you should have.

Even though insurance has been part of our culture for over 100 years, to most people – It’s still a just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”

I want to end that for you.

I'm an industry "insider": A licensed member of “The Club”
I’ve been inside the insurance business for over 30 years and I know it like the back of my hand: From policy to claims and back again.
I've sold insurance.
I've studied it.
I've discovered what makes "good insurance" -- and what makes "bad insurance".

I know that not all insurance is "created equal".

If you’re not properly insuring your condo you could be either wasting needless premium money on excess coverage or you could be setting yourself up for a severely UNDERINSURED loss that could cost you tens of THOUSANDS of dollars or even MORE!

I’ve been around the insurance business for a long time and I’ve seen it all.

I’ve seen people standing next to smoldering ashes that just hours before was their home and everything they own.
I’ve comforted those who have just received a 50-page lawsuit because their sprinkler flooded their neighbor’s yard or their dog bit a friend’s child.
I’ve reassured clients that they have coverage after their toilet flooded their house over an entire 3-day weekend.
I’ve seen clean-up bills for just water damage in excess of $100,000.

And I’ve been able to pay all these losses for these very frightened people because we made sure that their insurance was right for them – That it would be there to “write the check” should these shattering losses happen to them!

Condo insurance, when purchased properly, can give you the security of continuing life as you know it in the event of a catastrophic casualty or liability loss.

Condo insurance is POWERFUL and very comprehensive in the scope of coverage it offers.

Here’s a little overview….

It protects your condo (more on that later)
It protects your stuff at home
It protects your stuff on vacation
It protects your stuff in the USA
It protects stuff you may have in a storage facility
It protects your stuff all over the world !
Yes, that’s right… you lose your stuff ANYWHERE on the planet…you’re covered just as you are in your own backyard.
It protects your CHECKS & CREDIT CARDS if they’re stolen
It gives you Liability protection....that’s when you get sued
It gives you protection for stuff you’d never imagine.
Here’s just a few examples

Money, Bank Notes, Coins (including collections) up to $200

Property used or intended to be used in business

On premises up to $1,000

Off premises up to $250

Watercraft and equipment up to $1,000

Securities, Checks, Traveler’s Checks up to $1,000

Trailers (not used with watercraft) up to $1,000· Stamps, trading cards, comic books (including collections) up to $2,500

Theft loss of:

Jewelry and Furs up to $1,000

Firearms up to $2,500

Silverware and Goldware up to $2,500

Rugs, tapestry, wall hangings

Per Item up to $5,000

Aggregate up to $10,000

Home Computers up to $5,000

WOW, you say!
That’s quite a list.
Yes it is…and there’s MORE…
Yes, there’s a LOT more…
But before we get to that … the WHAT and HOW TO BUY Condo Insurance,
let’s talk about the WHY!!
Why would anyone need or want Condo Insurance?

Most Homeowners Associations (HOA's) purchase insurance for the buildings in the condo complex. That cost is paid from a portion of your monthly HOA fees.

*****And here's the IMPORTANT PART:

Generally (and I say that because every HOA is different) but GENERALLY, the HOA covers only the outer portion of the buildings and the roof and common areas. YOU are responsible to insure the interior walls, cabinets and fixtures. And you are responsible to cover your personal property: your clothes, bed, furniture, TV, iPod, dishes.... All your "stuff".

Properly structured Condo Insurance provides protection for your interior structure, your personal property,
AND Protection in case of a liability lawsuit.

“WHAT?!?!” you say. “Lawsuit ! !”
Yep, lawsuit. Could it happen to you? The answer is…
Of course it could ! !

But we’ll talk about that in a minute. So….

Let’s talk about the nitty-gritty of Condo Insurance. There’s certainly not room here in this report to cover all of it, but I promise, that when you’re done you’ll know more about condo insurance than 95% of the planet. Having a good handle on your insurance decisions is the only way to best prevent problems and surprises at claim time.
There’s three main parts to your condo coverage: 1. Coverage for the interior structure 2. Coverage for your stuff 3. Liability coverage

Let’s take these on one at a time.

COVERAGE FOR YOUR Interior Structure

Remember that the interior structure includes all the interior walls, cabinets, built-ins, carpet, tile, bathroom sinks, toilets, showers, closets - EVERYTHING inside the outer perimeter of your unit.

This is probably the least understood of the three. And the biggest question is HOW MUCH? How much coverage to I REALLY NEED to properly and reasonably cover my interior?

It’s really a simple answer. This is probably worth the entire time you’d spend reading 10 of these POSTS.

You need just enough coverage to rebuild your condo.

That’s the magic question, for sure! The answer is that you calculate it by using cost per square foot. You’ll need to know how many square feet of living space you have.

Ideally you’d like to get a licensed contractor to your house to estimate that for you. Get one who is currently building houses in your area. Believe me, he knows the cost.

Remember though, EVERY HOUSE IS DIFFERENT! The range in San Diego is usually $60-$75 per square foot. Where you fall in that range is dependent in the quality of your interior. Average is probably $65-$70. So, if you have 1200 square feet and your think $60 per foot is sufficient, you need $72,000 of BUILDING coverage on your policy.

I have several contractors insured and I keep up with them on the current cost of construction in my area. I hesitate to just give you a number here as it changes all the time and you need to tweak it a little based on the configuration of your house. For example, if your house is a track house, (one that was built among a bunch of others that are about the same) your cost of construction will probably be less than if you lived in a custom house. You have to ask questions like these:

Do I have carpet or marble tile?
Do I have a central vacuum system?
Do you have Upgraded Counter tops? Granite?
Are my kitchen cabinets standard or custom?
Do I have central air conditioning, ceiling fans, custom wood stair rails, etc?

With just a quick phone call to my office, we’ll be happy to help you determine your cost per square foot.

Another common point of confusion is that people think they need to insure their condo for it’s market value. NOT SO! Your house is (almost) always going to be worth more than it takes to build it. Remember there’s value in your land, neighborhood, schools, view, etc. All that is unaffected by the loss of your home. And remember this….

NO MATTER HOW MUCH COVERAGE YOU PUT ON YOUR CONDO, THE INSURANCE COMPANY WILL ONLY PAY YOU WHAT IT COSTS TO REBUILD IT.

So here’s how a typical house can look. Remember there’s 3 key numbers associated with your house: Market Value, Amount of your Mortgage, and Rebuilding Cost.

If your 2500 square foot condo has a market value of $650,000 and your local building costs are $70/square foot, your rebuilding cost would be $175,000 (2500 x 70). Your mortgage could be $120,000, $400,000 or $0. Regardless of the loan amount or the market value, you’d want to have approximately $150,000 of insurance on the interior building coverage for your condo. There’s some tricky thinking here that you need to consider.
The cost of construction isn’t static, it’s always changing. Lumber cost changes almost daily, as an area builds more and less through changes in economy, the cost of subcontractors will fluctuate. At the end of this report you’ll see a special feature that my office offers you to help you be sure that you don’t get caught short as construction costs rise and fall. Look for this picture. -->

Usually your condo has what’s called ALL RISK coverage on the structure. That means that, except for a few exclusions, anything that happens to your condo is covered. If there’s a loss to your condo, the adjuster looks at the list of exclusions and if what happened isn’t there… it’s probably going to be covered. Remember that all insurance companies are different and it’s the policy contract that decides, not what I say here!

Some common exclusions include flood (the natural kind, not water from a broken pipe which IS COVERED), earthquake, riot, freezing of pipes in an unoccupied, vacant, or under-construction building, vandalism and malicious mischief if the building has been vacant for more than 30 days, normal wear and tear, intentional damage, damage from animals, birds, or fish, and war. These are just a sampling of exclusions. See your policy for your actual exclusions.

Equally as important as the coverage for your home is your coverage for your stuff – Your Personal Property.

COVERAGE FOR YOUR STUFF

If your stuff is stolen from your car,
IT’S COVERED under your Condo Unitowners Insurance!!!
There might be damage to your car though. THAT’S covered under your auto insurance. I’m sure you have car insurance ! ! ! (see 10 Ways to Beat the High Cost of Auto Insurance (Part 1) & (Part 2) )

This is the coverage that insures your personal property: Your sofa, dishes, clothes, television, stereo, art work, silver, china, watches, jewelry, blender and your socks. How much do you need? That's the important question. Start thinking at a minimum of $30,000. I insured a condo once with personal property coverage of $250,000! Yes, he was a doctor and she a surgical nurse. Lots of money there!

Again... just a quick phone call to my office and we can help you decide the right amount for you.

Here’s an important distinction on the actual coverages for your personal property as compared to the coverage for your structure. You’ll remember that your structure is covered for all losses EXCEPT for those specifically excluded. Your personal property is only covered for a specific list of losses. Here’s a typical list:

Fire or lightning
Weight of ice, snow or sleet
Explosion
Aircraft & vehicles
Smoke
Sudden and accidental tearing or bulging of heating or cooling systems
Windstorm or hail
Theft
Riot or civil commotion
Falling objects
Vandalism or malicious mischief
Sudden and accidental water discharge from plumbing or appliances
Freezing of plumbing systems

Once again it’s important to check your own policy language for the specific coverages for your personal property. If you’re not sure, just give us a call. 619-670-1000

Now before we talk a little about the most important portion of your condo policy -- Your Liability Coverage, let me mention one VERY COMMON MISCONCEPTION.

Condo insurance DOES NOT cover the mortgage if one of the owners should die. You’ll need MORTGAGE INSURANCE to cover that.

Mortgage Insurance is simply life insurance that’s designed to pay off the mortgage at the death of one of the owners.

Life insurance can be somewhat overwhelming to purchase. You’re so afraid of making a mistake.

It’s easy to incorporate your mortgage insurance TOGETHER with your regular Life Insurance and SAVE TONS OF MONEY in the process. Learn how with this:

7 Things You Need To Know BEFORE You Buy Life Insurance

It’s simple and easy and probably NOT AS EXPENSIVE AS YOU MIGHT THINK.

You can usually get mortgage insurance for your home for about the price of a DVD a month!

Think about it. Safety, security and peace of mind for about the cost of a DVD a month!

Liability Coverage

Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you! There’s ALSO coverage in your CONDO INSURANCE for THAT !

Liability is the portion of your condo insurance that protects your home, your assets, your retirement savings and your future income!

Someone slips and falls in your place,
Breaks their leg, or cuts their hand.
(Bummer if it’s a Plastic Surgeon)
Your policy will pay whatever you’re legally liable to pay. (up to the limit of the policy, of course) That’s why at least a $1,000,000 limit is important there (especially if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $7/month, you get TEN TIMES the coverage -- Almost a crime not to take that.

If you own your condo you should probably consider a Liability Umbrella. It gives you $1,000,000 coverage on your house and all your personal vehicles. You have just too much equity in your house and too much of your net worth tied up there to risk it by saving a few dollars a month.

Let me tell you a story….

Just this year a policyholder called me and told me that they were being sued because their son’s girlfriend accidentally let their dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor’s dog. The homeowner was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and… well, you know the drill. Fortunately the homeowner had not only their homeowners insurance but also a Liability Umbrella standing between this crazy neighbor and everything they owned. Without that, this could have been their problem…

They could have been paying off this “little problem” for years. They could have risked everything they own in addition to their FUTURE EARNINGS by not having the foresight to get (in this case) HOMEOWNERS INSURANCE and a LIABILITY UMBRELLA policy.

You can insure your home, your personal property and your liability exposure in one simple policy.

BUT WAIT ! ! ! ! THERE’S EVEN MORE ! ! !
Condo insurance also includes Medical Payment coverage. That pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn’t pay for medical expenses for you or members of your family that live with you.

BUT WAIT ! ! ! ! THERE’S MORE!!!!!!
You also get what’s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we’ll pay the cost to put you up someplace else while your place is being repaired. I’ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS! ! Hopefully you won’t be out that long,
but it’s THERE IF YOU NEED IT ! ! ! !

BUT WAIT ! ! ! ! THERE’S SOME MORE!!!!!!
You know how things just get more expensive every year. We’ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew you policy each year, it will be for the newer IMPROVED amount of coverage.

BUT WAIT ! ! ! ! THERE’S STILL MORE!!!!!! (starting to sound like one of those Ginsu Knife Commercials..?)
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they’re out there spending YOUR MONEY, you’ll have coverage for that up to $1000.
“WOW”, you say!
And all that’s included in the Condo Insurance we provide in our office.

Hey, Let’s talk about Deductibles for a second….
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we’d pay the rest.Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium. ... you know what, just ask us when you're in the office and we'll show you how simple it is to calculate.

SO what’s the best way to buy CONDO INSURANCE ?

RULE #1 – Don’t over-insure and don’t under-insure. Get the right amount of coverage. Yes, you’ll have to estimate how much stuff you have.

We have convenient calculators in our office to estimate this for you.

RULE #2 – Take the biggest deductible you can afford. (within reason). Increasing your deductible from just $500 to $1000 will usually save you about $75 per year. Let us help you do the math to see how long it takes you to absorb the difference in the two deductibles.

We can help you walk thru those numbers and find the best blend of deductible and price... Takes about 3 minutes.

RULE #3 – Get at least $500,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.

You need someone who explains and helps you with this. It’s just what we do...

RULE #4 – Only get policies with REPLACEMENT COST coverage for your contents. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we’ll pay you what it costs to get a brand new one rather than what your old one was worth.

We automatically add this to all your policies unless (for some reason) you tell us not to.Looks like this. Someone steals your 8 year old TV set that’s worth $75 and a new one is $350, we’ll pay you based on the $350 rather than the $75! VERY COOL!

RULE #5 – Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian’s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.

We automatically add this one too. Unless you don’t want it...

RULE #6 – Don’t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There’s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don’t forget EARTHQUAKE coverage.

We’ll walk you thru a checklist of all those things just to make sure we don’t forget anything. You may not need any of them, but we just want to be sure.

RULE #7 – Only get a condo policy with GUARANTEED EXTRA REPLACEMENT COST (GERC) coverage for your structure. This is SO IMPORTANT. We offer policies that will pay you up to an EXTRA 20% above the actual amount of coverage. For example, let’s say you’ve lost your 2500 square foot home to a fire and it was insured for $200 a foot -- $250,000. But there’s a recent spike in the cost of materials and the real cost comes to $285,000. OUCH! Looks like you’re going to have to dig into your pocket for $35,000! Not so with the policies we write in our office. Our company offers you, AT NO EXTRA CHARGE the GUARANTEED EXTRA REPLACEMENT COVERAGE at an additional 20%. Your $250,000 will actually pay you up to $300,000 to rebuild your home.

With GERC, your policy for $250,000 will actually pay you up to $300,000 to rebuild your condo. And OH BY THE WAY... This is included automatically at no additional premium on ALL of our condo policies!

And don’t forget EARTHQUAKE coverage. I know there’s a lot to think about. So let us help you remember all of it. One step at a time.

This can be so simple and easy to do.

We do all the work for you and in less than 30 minutes, you’ll have protected your condo, your personal property, your current assets and your future earnings.

Why somebody wouldn’t buy CONDO INSURANCE this way is simply beyond me.
BUT LET ME MAKE A LITTLE EASIER FOR YOU…

In our agency we offer you 5 different ways to pay for this. You have your choice of Annual, Quarterly, Semi-annual, monthly and SPECIAL MONTHLY…
“So what’s so special about SPECIAL MONTHLY,” you might ask.
It’s special cuz it’s just so insanely easy.

We set it up for you and your monthly payment comes right out of your checking account: Same day; Every month.

(of course of your insurance is already part of your house payment, we’ll set things up so that continues just as it’s always been for you)

So, here’s what you get…

Coverage for your condo: The right amount so you sleep well.
GUARANTEED EXTRA REPLACEMENT COST for your condo. AN ADDITIONAL 20%
Coverage for your stuff: TV, stereo, blender, dishes, clothes, etc.
This coverage at REPLACEMENT COST (as I explained above)
Liability Protection. (assets AND your future earnings)
A place to live while we put your place back together
We’ll walk you thru the whole process (probably will take less than 30 minutes)
Confidence that you’re buying the insurance you need: NOTHING MORE, NOTHING LESS

It Just doesn’t get any better -
OR EASIER - than that…

You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

10 Ways to Beat the High Cost of Auto Insurance (Part 1)

2009-02-01T17:19:00.000-08:00

(the SECRET from the ad is marked with 3 stars (***) in Part 2 of this article. This first part is pretty good though... :) )

Insurance has been one of the necessary evils of life for over 100 years. In this day of higher taxes, rising food prices and soaring housing costs, it is possible for you to get a handle on your own auto insurance costs. If you have been frustrated by an inattentive agent and constantly rising insurance premiums, this is the book for you!
Insurance can be complex and technical. Some people are paralyzed by simple buying decisions. Should I have collision coverage on my 15 year-old car? Would it make more sense to have a $500 deductible instead of a $100 deductible? Since I have adequate medical coverage at work, do I really need medical coverage on my car insurance as well?

I will show you how nearly all of your auto insurance-buying decisions can be simplified by answering 3 simple Test Questions.

With the overall cost of living swelling up around us, and insurance taking an increasingly larger portion of our income, it is important that we leave no stone unturned in controlling our insurance dollar! During the period from 1970 to 1990, auto insurance costs rose 40% faster than the overall cost of living. With this kind of increasing burden on your already stretched consumer dollar, it is imperative to get a handle on the auto insurance portion of your budget. One of the most important parts of your strategy is your agent and the working relationship that you share.
Sometimes, a newer agent will be energetic and willing to take the time required to effectively manage your insurance portfolio. But the newer agent may lack the experience required to exercise all of the potential money-saving applications available. Your agent must be experienced enough to know the ins and outs of the rating rules of the insurance company. Each company has rating and underwriting rules that, if properly applied can save you big dollars on your premium.
Your agent must also be willing to invest the time required to orchestrate your insurance portfolio. Older and more experienced agents generally know all of the little tricks but lack the drive and initiative to be of any real help to you. Some of the methods described below require personal and concerned attention. Agents that are too busy to sit down with you and devote the kind of time required to milk every ounce of protection out of your insurance dollar do not deserve your business. If your agent is hard to reach or doesn't appear to be giving you a 100% effort, don't give him or her even 1% of your insurance money!
Find another agent!
There are agents out there that have the right blend of experience and availability for you. Don't sell yourself short here! You should be as willing to spend the time necessary to find a good agent as you are to shop for a competitive price. Furthermore, you must be willing to be ever vigilant in the management of your auto insurance. As you will see in the methods below, each time any part of your life changes, it may require some change in your insurance coverage. Each time one of these changes occur or when you receive your renewal statement, take a moment to consider your current needs verses your current coverage. The longer you wait between review sessions, the more money you may be needlessly giving the insurance company. When your renewal bill comes due, DON'T BE CAUGHT SLEEPING AT THE SWITCH !

TAKING YOUR FINANCIAL PICTURE -

Insurance is simply the management of risk. Owning and driving an automobile is a risk. You risk injury, loss of your vehicle, and potential liability for damage to others. The purchase of insurance is merely an agreement with the company to transfer some of your risk to them. You are saying, "I choose not to assume all of this risk myself. In exchange for my premium dollars, the insurance company will suffer some of the financial loss instead of me." With this thought in mind, you must decide how much risk to transfer and in doing so, decide how much risk you are willing to keep yourself in the from of deductibles and unpurchased coverages.
Before we can get to ways to save money on your premium, you need to take a short inventory of your financial picture. Before you get to deciding whether to take a $100 or a $500 deductible on your collision coverage you first need to decide that you can reasonably handle a $500 loss. So before we jump into any tricks of the trade, lets take a moment to diagnose your "loss threshold."
Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!
In addition to settling on your personal loss threshold, it is important to consider your previous history of insurance losses. If you have had several losses in the last 10 years, you may be wise to lean more heavily on your insurance coverage. If, on the other hand, you go almost forever between losses, you will save premium dollars by assuming more of the risk yourself in the form of higher deductibles or dropped coverages. Now, if assuming this extra risk is going to give you some sleepless nights and make you a nervous wreck every time you get into your car, then don't do it! Part of what you buy in the purchase of insurance is peace of mind.
What matters most is where you are comfortable. Take a moment to apply a value to your "Loss Threshold." Try thinking in terms of $50, $100, $250, $500, and $1000. How much money can you, with peace of mind, place at risk? As you will see below, once you determine your Loss Threshold, you need only to weigh the cost of the coverage versus the potential for loss to you. Insurance can be a reasonably simple commodity to manage.

1. DROP YOUR COLLISION COVERAGE-

So you have been driving "Old Betsy" now ever since Noah was working on his boat. To you, its worth every bit of what you may have paid for it way back when but to another car buyer, its just an old bucket of bolts, rubber, faded upholstery. Unfortunately, the insurance company views your precious 4-wheeled family member with the same cold business approach as a prospective buyer. Its only worth...well, its worth a lot less than you would hope.
There comes a time in the life of almost every car when its value does not warrant the cost of collision coverage any longer. Collision coverage is that portion of your insurance that pays to fix damage to your car suffered by a collision. You will need this coverage for your car when you are in an accident that is your fault or if your car is the victim of a Hit & Run accident. Looking back to your Financial Picture we discussed above, compare the cost of your coverage with the potential for loss.
In discussions with your agent or by examining your renewal bill, identify the annual cost of your collision coverage. By looking in the newspaper or car-trading publications, determine the actual retail value of your car. Be careful to be objective here and remove whatever emotional attachment you may have to your car that might unrealistically increase its perceived value.

Let's say that the real value of your car is $1200 and the annual cost of just your collision coverage with a $100 deductible is $150. Now here are the Test Questions:

Can I afford to withstand this loss without any help from the insurance company? (in this case $1200)
Would I rather save $XX (in this case $150) every year and risk the loss of the car myself? By not getting this coverage I am saving $XX ($150) per year. I will save enough to make up the loss ($1200) in Y (8) years. (1200 ÷ 150 = 8)
Does my driving and claim history lead me to believe that I might go Y (8) years without suffering that sort of loss?

If the answers to these questions are yes, then you might be well on your way to cutting your insurance costs by dropping your collision coverage. These simple Test Questions can be applied to virtually any insurance-buying decision. Take a look at the next example.

2. DROP YOUR COMPREHENSIVE COVERAGE -

Comprehensive coverage like collision coverage is designed to protect your car from loss. Much of the same logic that we applied to collision coverage can be used to decide on the fate of your comprehensive coverage. There are, however some important considerations to weigh in your analysis.
Comprehensive coverage covers almost anything that happens to your car except collision. The most commonly submitted claims are broken windshields, stolen hub caps, stolen stereos, vandalism and theft of the entire vehicle. Note here that many of these losses produce the same amount of financial loss regardless of the value of the car. It costs virtually the same to replace a windshield in a 75 Ford as it does in an 85 Ford. Consider also that the cost of comprehensive coverage is much less than collision coverage. The ratio between money saved and dollars put at risk is smaller and therefore you may be less eager to drop this coverage. Ask yourself the Test Questions that we did for collision coverage and make an informed decision.
If your vehicle is financed or leased, always remember to check with your financial institution before changing these coverages. Your loan contract may have certain requirements and deductible limitations that somewhat restrict your options.

3. RAISE YOUR DEDUCTIBLES -

If deleting collision and comprehensive coverage puts you at greater risk than you are willing to assume at this time, you may want to consider increasing your deductibles as a compromise. As you increase your deductibles you decrease your premium. The insurance company is going to give you a break on your premium here for two reasons. First, when you have a loss, the insurance company will pay you less money when you have a higher deductible. Secondly, with a higher deductible, you will have fewer claims that are presented to the insurance company in excess of your deductible.
When you take a higher deductible you are saying that you, for the consideration of a lower premium are willing to assume a greater portion of the loss yourself. You trade the certainty of a lower premium for the uncertainty of more loss to you should a claim occur.
If you have decided in your Financial Picture that you are comfortable with a $500 loss (and the premium savings is enough) and you own a car worth $3000 then you probably do not want to drop your collision coverage completely. But you can increase your $100 collision deductible to $500 and your zero comprehensive deductible to $100. Let's examine the numbers. If you save $30 per year on your comprehensive coverage and $65 per year on your collision deductible you realize a $95 per year savings the first year and every year thereafter. You are only increasing your risk by $100 on the comprehensive coverage and by $400 on the collision coverage. Remember you already had a $100 deductible on collision and increasing it to $500 changes your participation in the loss by $400. Again, ask yourself the same questions.

Can I afford to withstand this loss (the bigger deductible) without any help from the insurance company?
Would I rather save this money ($95) and risk the larger deductible loss myself? By taking this bigger deductible I am saving $95 per year. I will save enough money to make up the loss in one year for a comprehensive loss and in just over four years for a collision loss.
Does my driving and claim history lead me to believe that I might go one or five years without this sort of loss?

You may be beginning to see that insurance is not all that difficult! If the answers are primarily yes then most likely an increase in deductibles is right for you.

In Part 2, we'll examine the rest of the 10 Ways to Beat the High Cost of Auto Insurance.

It's a Good Life !

Dennis Volz, Agent
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolz.com
Websites: Company Site: DennisVolz.COM, Client Convenience Site: 6701000.com

My 'Other Blogs'

Working by Referral

Musings from California

Homeowners Insurance - HOW TO CLOSE YOUR ESCROW -- How to buy it, How much to get, and HOW TO SAVE MONEY

2009-01-28T19:21:00.000-08:00

The informed purchase of your homeowners insurance can be the most important minutes you invest into the purchase of a home.

So, you've purchased your new home, navigated the rigors of escrow including home inspections, termite tenting, title searches, legal wrangling, paper work, signatures, delays, changes, lost documents, unreachable loan officers, and the dog ate my disclosure!

Then you get the call..."I'll need a copy of your homeowners insurance to close escrow TOMORROW!"

So now what ?

If you've done the following.....YOU WON'T EVEN GET THE CALL! EVER!!!!!

There's a few simple steps you can take to avoid this last minute panic.

Contact YOUR insurance "team member" you trust EARLY in the escrow (like the day you open). (he is a member of your team that helps you avoid ulcers during escrows.)
Your agent then gets completely ready w/ the information, inspects the house, relays his information (phone, fac, etc) to escrow and waits. (Check to make sure he's going this. Sometimes escrow contacts him when there's like 20 minutes left till the rate lock expires....) Make sure he's all "warmed up" and ready to go just like the pitcher in the bull pen.

What should you look for.

You need to primarily consider 3 major points of the insurance. (there's MUCH more to it than this and you can read about that HERE.) This is just a quick peek at the basics of what you should look for.

INSURANCE TO VALUE - HOW MUCH? People need to insure their homes to the COST OF CONSTRUCTION of the home. Not the sales price, not the loan amount, but the amount of money it would take to rebuild in the case of a total loss. Living thru the TWO MAJOR SAN DIEGO FIRES in 2004 and 2007, I can tell you that this can be a PROBLEM. Get insured correctly going in the front door and the renewals should increase to keep pace (but check 'em out anyway...that's why they mail you an annual renewal notice.)
Get a good amount of Liability Coverage. This is the , GAWD, I'M GETTIN SUED coverage. Think minimum of $500,000 and maybe even a $$MILLION$$.
Don't take too low a deductible. Many clients take $2000 up to $5000 and even $10,000 deductibles for substantial reduction in their premiums. Look at the numbers and decide.

That's just a short view of the INSURANCE portion of your escrow. Most important, get an insurance agent you trust that will take good care of you and who will get to know you BEFORE he recommends coverage. Everybody's different with different insurance needs.

Find an agent that you can call who is willing to spend the time with you to be SURE you new home is adequately and COMPLETELY insured!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

Insurance Claims Secrets - The INSIDE STORY

2008-07-05T09:43:00.000-07:00

Insurance claims can be a first class PITA!

With that in mind, this little bit of INSIDE INFORMATION is offered.

EVERY CLAIM HAS:

An Adjuster (human type)
A File (either electronic or paper or both)
A Supervisor (also the human type)

The claim process looks like this (considering the three above items)

The Adjuster mediates and calculates the value of the claim. (Why? Because that's what he's paid to do)
The Adjuster documents The File. (Why? Because The Supervisor is going to check that file)
The Supervisor reviews the file. (Why? Because once a year, the state insurance commission will audit the insurance company and randomly review claim files to be sure that the money paid out was justified, documented and in accordance with state insurance law. When there's an issue, the insurance company is fined -- HEAVILY! )

Here is the extremely valuable information ! When you're negotiating with the insurance company to settle your claim, remember while making you happy is important to them, passing the eventual audit is more important. A badly documented or poorly calculated claim can cost the insurance company -- MANY MORE DOLLARS than giving you a couple hundred extra for your bent fender.

Generally, the adjuster does not personally care how much they pay to settle the claim. Let me say that again.

Generally, the adjuster does not personally care how much they pay to settle the claim.

I say generally because you will occasionally run into that young buck, fresh out of 'ADJUSTER SCHOOL" who wants to save the world and treats the insurance company money like his own. THAT'S a discussion for another day. They're paid employees with families, bills, problems, vacation plans, and a host of other issues just like you and I face everyday.

The claim adjuster doesn't really care what he pays to settle the claim.
The claim adjuster wants to get the file closed as much as you do.

As long as he can document the amount paid, he'll write the check now and be done with it.

THEREFORE......

Whatever assistance you can offer to document a better value for your claim, the faster you'll get paid.

When you think your car is worth more than they're offering, get some documentation that supports that additional value.
When your repair job exceeds the insurance company estimate, get a letter or itemized estimate explaining the difference.
When the replacement cost of your kitchen exceeds what the insurance company is willing to pay, get pictures of your old kitchen and an itemized bid from the contractor that clearly indicates that you're putting yourself back as you were -- No better, no worse.
When the 'facts of the accident' are not clear, get witness statements or police report clarification.

The more you're willing to work WITH the claim adjuster to properly document their file to justify higher payments, the more you'll get paid for your claim.

Contact me if I can help you in any way.

After all..... it's what I do.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

Whose Insurance Does What during "DELAYED POSSESSION"?

2008-05-24T09:51:00.000-07:00

Got this great question from Jennifer Allan, author of Sell With Soul today and thought the answer might be helpful.

Hey Dennis...

What's the deal when a home sells and closes, but there's a delayed possession - that is - the seller retains possession of the property for a few days past closing to move out?

If there's damage... which homeowners policy pays? The buyer's (who owns the property, but hasn't yet taken possession) or the seller's (who no longer owns the property)?

J

WOW! Great questions, Jennifer.

Homeowners insurance for the buyer goes into force to close escrow. After the closing, the BUYER owns and insures the house. Should there be damage to the home, it would fall on the BUYER'S insurance to cover the loss. The new owner would be responsible to pay the deductible. (there could be some stipulations in the RENT BACK AGREEMENT about that, but without some agreement to the contrary, that's how it would likely settle out.)

Loss to any contents of the SELLER (those items remaining while they move out) could be covered one of two ways.

1. Using the homeowners insurance for THEIR (the sellers) new home
2. Using Renters Insurance if they're moving to a rental

Most insurance companies offer at least 30 days of "EITHER PLACE" coverage. In other words, their stuff can be covered by their existing policy for up to 30 days in the old OR the new location. So if they're moving to another home, they will have homeowners insurance in place on that new home. If they're moving to a rental, they need to roll their old homeowners insurance over to RENTERS INSURANCE for the new residence at the close of escrow, In either case, the EITHER PLACE coverage still applies using the new insurance policies to cover their contents during moving.

If you have any questions, please call, write, email, signal flags, or smoke signals.... :)

p.s. My insurance company, which is available nationwide, offers additional location coverage without a time limit. In other words, your stuff is covered anywhere in the world -- PERIOD. Doesn't matter if you're moving, storing, vacationing, or stocking your Ski Chalet in Switzerland.

Point here being that not all insurance companies handle this situation exactly the same. Check with your local insurance professional to be sure.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

I've had a FIRE! What do I do now?

2008-05-08T11:42:00.000-07:00

Fire can be one of the most traumatic and devastating losses anyone can experience.

If you've had a fire and there were injuries or a death, my sincere condolences. If you've experienced just loss to property, please take a moment to be thankful that there we no injuries or death.

You're probably still in shock that this has happened to you and bewildered by the seemingly endless task ahead of you. This is going to be a ONE DAY AT A TIME process. If you can settle into that thinking, this will be much easier. Every day that you make progress toward rebuilding your life is a WIN. Ask yourself at the start of each day, "What does WIN THE DAY look like TODAY?" Make a VERY SHORT list of a few things that will get you to that WIN THE DAY feeling and be happy with that.

FIRST THINGS FIRST
If your loss is a severe one (a total loss or one where SUBSTANTIAL work is required to get you back into your home) then you need to first think about some long-term living arrangements.

This should be your first priority. You might be put up with friends or in a hotel at first and you may need to get some basic items like clothing, personal items (toothbrush, etc) but don't get involved with any other stuff until you're settled into where you're going to live.
Your insurance company should be very generous here. You can usually rent a place similar to yours at their expense. They won't pay you any extra though.

For example, if you were renting a house or apartment, you won't be required to pay rent while you're out of your home, so you'll just be paying rent someplace else. The insurance company might make up the difference if there's nothing available similar to yours. The goal is to keep your monthly expense about the same.

If you owned a house, you'll still be responsible for your mortgage so the insurance company should pick up the entire cost of renting another place.

Just rent some furniture for now and then SLOWLY, replace it with items you purchase along the way. You'll have plenty of time to shop for furniture once the contractor gets busy rebuilding your home.

OK. So now you have a "home base" from which to rebuild your life. Its important to have this so you can focus on gathering, replacing, purchasing the things, memories and items necessary for daily living.

DON'T BE TOO HASTY TO "HIRE" THE SERVICES of a 'PUBLIC ADJUSTER'. This is someone who will show up EARLY. (like while the fire department is putting the hoses back on their truck) They will tell you that they will do all the negotiating with the "big bad" insurance company for you for a small fee. SAY NO FOR NOW.... (you can always go to them later and their "small fee" is THOUSANDS of dollars....) You're better of without them.

Your claim adjuster is going to be your new best friend. That's an important mind-set to adopt. Look to him as a source of information, encouragement and ideas to get the most out of your insurance policy. The company I'm with (and most companies) will look for ways to BE ABLE TO PAY YOU rather than looking for ways to get out of paying you. Remember, losses are calculated into what they charge and a good claim experience and positive results serve them much better than saving a couple thousand dollars by nickel and diming you to death.

GET ORGANIZED
TAKE NOTES. You should pick up a 3-ring binder w/ some paper. You might want to get some tabbed pages to keep track of THINGS TO DO, NOTES ON CALLS, CONTACT INFORMATION, etc. Remember think MARATHON not SPRINT. You're going to need a central location (the notebook and maybe a small file box) to keep track of your information.

They're going to start by giving you an overview of the entire process. There will be a contractor to find, plans to draw up, lists to create, receipts to keep, and plans to make. Take good notes and remember to keep thinking 'just one day at a time.'
KEEP YOUR PERSPECTIVE AND HAVE FUN! Yeah, I know that sounds a little off. But this is such a once-in-a-lifetime opportunity. You get to start all over. Fresh! New!

Make a decision to enjoy this process -- This curve ball that life has thrown your way. If you're married you can play 'newlyweds' all over again. If you're single you can make a substantial change in your lifestyle, your look, anything you want.

Decide to be BETTER not bitter because of it.

Yes.... Make a conscious decision that this is probably one of the most exciting adventures you'll ever have. Get just a few things and relish in how simple life can be. You'll "clutter back up" soon enough so just enjoy the spartan simplicity.

Buy a different brand of underwear, splurge on some really plush socks, or get a pair of just THE COOLEST JEANS EVER! Try out new ways of cooking with new dishes. Get back to enjoying the simple things in life. You'll be a bigger and better person because of it.

Don't forget to let your friends help you. You'll deepen your relationships and forge new friendships along the way. Just let it all happen.

THOUGHTS ON REBUILDING
There's way too many variations and possibilities to go into within the scope of this blog. But here's a few things to think about as you begin to work with your adjuster and contractor.

The insurance company will generally pay to build the house just like the one you lost but YOU DON'T HAVE TO BUILD IT THE SAME WAY. If you've always wanted a big picture window on the west side... then GET ONE!
Take your time with your architect or making your own sketches of how you want your house rebuilt. You might even be able to change the "footprint" of the slab (the basic shape and orientation of the house) One of my clients who lost their home in the San Diego fires of 2003 had always lamented that the side of the house with the best view had just one little tiny window. Well.... They fixed that w/ 4 huge picture windows and instead of having the bathroom there, it was their den and fireplace area. Turned out BEAUTIFULLY!
Have a plan to refurnish your home. Just slowly replace your rented furniture with your new stuff as the "building the home" process unfolds.

The process of rebuilding your home can be the most challenging event you've ever experienced. It can also (at the same time) be the most rewarding and life-changing! After all, if you can survive this, sitting in traffic or having to replace your refrigerator just won't phase you any more.

Contact me if you have any questions.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

A word about DEDUCTIBLES...

2008-04-27T08:09:00.000-07:00

Simply stated: A deductible is the amount that you pay toward a loss or claim before the insurance company begins to pay. The higher your deductible, the lower your premium.

The more you are willing to participate in your loss, the greater the savings on your premium.

The insurance company will offer your a lower premium if you take a higher deductible because your LOSS FREQUENCY and your LOSS SEVERITY will be lower. Consider if you have a $2000 deductible instead of a $500 deductible:

You'll make fewer claims because you won't be making claims for $600, $900 or $1995 losses. You'll simply pay those yourself. (FREQUENCY)
When you do submit a claim the insurance company will be paying $1500 LESS than if you had the $500 deductible. (SEVERITY)

There is no "correct" deductible to choose. It depends on what I like to call your personal LOSS THRESHOLD. So before we get too far ahead, lets take a moment to diagnose your "loss threshold."

Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!

ANOTHER SIMPLE CALCULATION....

OK. Let's say you're ok with a loss threshold of $1000 or less. Now you can choose between a $1000 deductible or a $500 deductible. Here's all you have to do.

Find the premium difference between the two.
Let's say you save $80 a year in premium to take the $1000 deductible.
Now look at the DIFFERENCE between the 2 deductibles which is $500. It would take you over 6 years ($80/yr x 6 years = $480 ) to save the DIFFERENCE between the deductibles.
Now you simply ask yourself, "Do I think I'll have more than 1 claim in the next 6 years?"
If the answer is yes, you should probably take the lower ($500) deductible.
If the answer is no, then the higher deductible ($1000) probably makes more sense.

If you're still confused by this, just give me a call and I'll walk you through it....

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

A few thoughts on PROPERLY insuring your Rental Property

2008-04-10T07:47:00.000-07:00

So, you're going to be a landlord! Since it's nearly ALWAYS a good time to buy real estate, you're making an excellent move. The long-term value of real estate from an investment standpoint is, in my humble opinion, the best leverage available.

Now that you've taken that step, it's important to get the right kind of insurance to protect not only your investment from the ravages of fire, vandalism, smoke, and broken water pipes, but also protection from the greedy hands of your tenants should they sustain an injury on your property in the form of Liability Coverage.

There's usually 4 primary areas of coverage you want to explore when looking into insurance for your property that you rent to others. (doesn't matter if it's a single family dwelling, duplex, multi-plex or a condo.

Building Coverage - Protection for the structure.
Personal Property Coverage - Protection for the contents of the unit that you own. This includes refrigerator and window treatments primarily. It would also include any other non-building type items that you own and are stored or used in the rented dwelling.
Loss of Rents Coverage - This pays your fair market rent value to you whenever your property is rendered uninhabitable from a covered loss.
Liability Coverage - This is that important coverage that protects you when tenants or their guests are injured or sustain some "other kind" of "loss" that they think is YOUR FAULT and they come after you with vengence and an attorney!

There's other coverages to consider like Medical Payments (usually included), Flood and Earthquake Coverage(BOTH usually NOT included).

Ok so now you at least have a place to start. Let's take a quick look at each one to give you just a little guidance.

BUILDING COVERAGE
This coverage is identical to homeowners insurance in that it protects the building against physical loss from perils like fire, smoke, vandalism, water damage from broken appliances and pipes, falling trees, automobiles, etc. It's usually written on an ALL RISK basis. Which is fancy insurance talk that simply means EVERYTHING except certain listed exclusions is covered. In other words, if something happens to the structure and it's NOT listed in the exclusions... IT'S COVERED!

You'll want to get enough coverage here to rebuild the structure at current construction costs. Ask your agent of a general contractor what current constructions costs would be for a place like yours. For a more complete discussion, read HOW MUCH HOMEOWNERS INSURANCE DO YOU REALLY NEED (the section on the building coverage walks you thru the same thinking you'll need to determine coverage on your rented property.)

PERSONAL PROPERTY COVERAGE
This portion provides coverage for items that you likely brought to the property. (Exception here might be a refrigerator or window treatments) Rule of thumb is that if it's permanently part of the structure it's a building item, if not, it's likely a personal property item. Most window treatment items (curtains, blinds, curtain rods) will be personal property (check with your agent to be sure) Refrigerator is personal property. An installed dishwasher is likely a building item.

Usually you don't need too much coverage here -- $2000 to $5000 is usually enough, but add your stuff up to be sure.

LOSS OF RENTS COVERAGE
This is important to provide a consistent flow of income should you sustain damage to the property that renders it uninhabitable for a period of time. Policies can pay for up to 12 or 24 mos or some offer an indefinite period of time. Usually it's just for a short time like a few days or a week or two.

LIABILITY COVERAGE
This could be one of the most important decisions you make regarding your rental property insurance. My advice is to think of $1 Milliion as a minimum. The difference between $300,000 and $1 million is likely less than $100 per year ($8.00 per MONTH) Beleive me, a WISE investment in the protection of EVERYTHING you own. Liability losses can be wide ranging and EXTREMELY varied in nature.

Here's a quick story about one...

Just this year a policyholder called me and told me that they were being sued because their tenant's girlfriend accidentally let the tenant's dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor’s dog. The landlord (NOT the tenant or the girlfriend) was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and… well, you know the drill. Fortunately my policyholder had not only their Rental Dwelling Insurance in place but also a $1 Million Liability Umbrella standing between this crazy neighbor and everything they owned. Without that, this could have been their problem…

They could have been paying off this “little problem” for years. They could have risked everything they own in addition to their FUTURE EARNINGS by not having the foresight to get adequate Rental Dwelling Insurance and a LIABILITY UMBRELLA policy.

You can insure your rental property, your personal property and your liability exposure in one simple policy.

Be sure to take your time and spend a few minutes in the chaos of the transaction to talk with your insurance professional about these important coverages.

You can always call or email me if you have any questions.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

FAQ's California Wireless Law effective July 1, 2008

2008-04-07T15:35:00.000-07:00

NEW HANDS-FREE CELL PHONE LAW IS EFFECTIVE 7/1/08.

California finally catches up to what's safe and realistic by enforcing a requirement to use cell phones while operating a motor vehicle with either a wireless or "wired" ear piece. Soon we'll all look like Spock and Lieutenant Uhura from Star Trek with those funny "listening devices" protruding from our ears.You can check out the Official FAQ's at the California Department of Motor Vehicles website, but here's my personal spin.

There will be no grace period. That sounds like really bad news, but it doesn't count as a "real ticket" and the fine for the first offense is only $20.

If you're under 18, you can't talk on the phone AT ALL while driving. This includes talking AND texting. HOORAY! (interestingly, the law doesn't specifically address texting by over 18 operators.

Speaker option is OK. Push to talk is NOT. I guess HANDS FREE means just that.

Calling 911 in an emergency situation is an exception. Makes sense to me.

Good luck. I think this is a law that's LONG OVERDUE and should be enacted in all states. The ONLY accident I've been involved in my last 25 of driving was when I was rearended while stopped at a light when a young girl was REACHING FOR HER CELL PHONE and took here eyes off the road.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

The Paint on my Fender Isn't Going To Match the Rest of the Car

2008-04-02T06:35:00.000-07:00

Face it. Paint fades over time. Your car sits out in he sun and gets weather-beaten by rain, snow, etc. After a few years, the paint looks OK, but you can tell that it isn't like it was when the car was brand new.

Then.... you have a little fender bender and your left front fender is crunched. Damage isn't all that bad, but you need a new headlight and some paint when it's all done.
Doesn't matter how good the body shop is at matching the color. Actually most of it is completely computer driven and there's specific formulas for a given year and make of the car. The body shop can match the paint spot-on PERFECT. That's NOT your problem though.

The new paint is new and the rest of the paint is not. While it will match perfectly to the color it won't look the same and you want to paint the rest of the car. You think the insurance company should pay for that.

THEY WON'T. (usually)

Matching paint is not their concern. It's been round and round in the courts and it's just not a case you're going win. There could be an exception if you're dealing with the insurance company of the AT-FAULT driver who hit your car. I'll talk abou that next.

Sadly the case is that the insurance company is NOT obgligated to match the paint on the rest of the car. You might get an adjoining door painted or a little "blending" of some kind, but if you want the paint matched by painting the whole car, you'll have to pay for the DIFFERENCE yourself.
Take heart though! This is an OPPORTUNITY!

You might be able to strike some kind of deal with the body shop to paint the whole car. Remember most of the cost of painting is to set up the job -- Masking; mixing the paint, booth time, drying time, etc. That's all the same if they paint a fender or the whole car.

Make a deal with the body shop OUTSIDE of the insurance deal to paint the rest of the car. You'll get a better price and you can ethically let the insurance pay for all that set up on THEIR nickle.

If you were hit by someone else and are dealing with THEIR insurance company, you might be able to get some consideration for the non-matching paint. NOT MUCH, mind you, but something. This won't work if the accident was your fault because your car is being repaired under the collision portion of your policy and there's no provision for a liability-type payment (which this is) in that portion of the policy and the adjuster (even if they want to) CAN'T pay for that for you.

Before you go after this, be sure you get into the head of the adjuster and know WHAT THEY NEED to write you that check by reading (at least the Purple Section of: They're NOT offering me enough for my vehicle.

You'll need to document the reduced value of your car because of the non-matching paint. It may only be worth a few hundred dollars, but it might be worth your time. Talk to some used car lots or people who sell cars a lot and you'll get some ideas. You'll need to get something in writing so you might want to be willing to type something up on their stationery and return to get their signature. Ask them what to say and you'll be on your way.

Remember the claim settlement gig is a process. Take your time and help the adjuster document their file and you'll get a better settlement.

GOOD LUCK!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

Options When You Have Damage from a Prior Accident

2008-04-02T06:31:00.001-07:00

A client called me yesterday with an interesting dilemma. Said that recently, when his car was parked on the street, it was hit by a Fire Truck on a call. Kind of unusual as Fire Truck Drivers are usually pretty good at what they do.

Nevertheless, he was concerned because on the same side of the car there was some damage from a prior accident and wanted to see if he could get that fixed at the same time. He also wanted to make sure the paint matched the rest of the car. So here's the advice I offered to Steve.

The insurance company is only going to pay for the damage that was a direct result of the accident caused by the Fire Truck. Nothing more, nothing less.

Your best bet is to make a deal with the body shop OUTSIDE of the parameters of the insurance company settlement. Here's why.

Anytime you repair a car there are some fixed expenses that are there regardless of the size of the job. The car has floor time, rack time, parts to order, paint booth time, drying time, set up the paint sprayer time, set up the sander time, on and on and on. The body shop will appropriately include most of that in the estimate for the insurance portion of the repair. Then the body shop might to ahead and fix your "other fender" for less because they have to go through all that set up stuff anyway.

Talk to your estimator at the shop see if you can't make a bettter deal. I bet you can.

GOOD LUCK!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

You and Your Liability Umbrella

2008-03-11T06:52:00.000-07:00

In the world of meteorology, whenever it looks like rain, an umbrella is good to have around. In the world of insurance, a Liability Umbrella can protect you from getting soaked as a result of losing a liability lawsuit.

People are suing each other today more than ever. Verdicts amounting to hundreds of thousands of dollars are being awarded by juries across the country in increasing numbers. If you accidentally injure someone or damage their property, you could be the one being sued. Even though your underlying policies may provide substantial liability limits, it is not uncommon today for juries to award damages that exceed those limits.

Coverage amounts are written in increments of $1 million and supplement your present policies to provide additional personal liability protection.

So, how does it work?

Typically you'll have insurance on both your home and your vehicles. Those policies can cover both loss through physical damage and protect you if you are sued. You can get sued for any number of things but usually you'll get sued if someone is injured at your home or injured as the result of an auto accident that is your fault.

Courts can award damages to cover doctor costs, pain and suffering, lost wages, loss of future income, loss of companionship (in the event of a death) and many others -- the list can be almost endless.

A Liability Umbrella steps in and pays when the limits of those policies are exceeded in the judgment. A $1 Million Umbrella gives you an additional million dollars of protection over and above BOTH your Home and Auto policies

Example: Your auto policy will pay up to $250,000 in personal injury damages when you are found at fault for an accident. You happen to hit a doctor one rainy Saturday night and he can't work for a couple years. The court awards $750,000. If you have a $1 Million Umbrella, your auto insurance pays $250,000 and your umbrella kicks in with the additional $500,000.

Obviously, umbrellas can go a long way to protecting your hard-won assets. I've seen cases where the judgements exceed their protection. They have to either go into the equity of their homes and pay from there or they get put on the LIFETIME MONTHLY PAY PLAN and have to sacrifice significant portions of their earnings for many, many years to pay the judgment. NOT a pretty picture.

The saddest part is that Umbrellas are generally extremely cost effective.

You can get a $1 Million Umbrella usually for under $300 a year. Many companies (including mine) will give you a sizable discount if your home and autos are insured with the same company. That can bring your cost down to the low $200's. In some cases a $2 Million, $3, or even a $5 or $10 Million Umbrella will make sense. Generally the more your net worth the higher your limits should be.

Liability Umbrellas are sensable, cost effective and serve to protect EVERYTHING you've worked so hard to accumulate throughout your life.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

They're NOT offering me enough for my vehicle.

2008-02-28T07:30:00.001-08:00

Whenever your vehicle has been declared a total loss, the insurance company will offer you a settlement based on the fair market value of your vehicle. (this works for cars, motorcycles, RV's, boats, etc.)

In the realm of United States tax law, the definition of "fair market value" is found in the United States Supreme Court decision in the Cartwright case:

The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. United States v. Cartwright, 411 U. S. 546.

So you get offered some money for your vehicle. They give you a number. Sometimes you'll like the number... sometimes you won't.

Here's what to do when you don't.

First of all, you should always have a number in mind when you begin to enter the final phase of the claim.. That requires that you do a little research on your own. Please keep this important truth in mind as you do.

MOST PEOPLE OVERESTIMATE THE REAL VALUE OF THEIR VEHICLE.

I know that YOU wouldn't do that, but some do. Just think about if for a second: Most people list their vehicles at a given price either in the paper or Auto Trader and then end up settling for less than that when they actually sell.

Remember: The price that the vehicle actually sells for is the FAIR MARKET VALUE of the vehicle.

Ok, so with that in mind, let's get about finding the FAIR MARKET VALUE of your vehicle. Here's your BEST sources.

Call ads in the newspaper for vehicles that are as close to yours as possible. Hope to find people who have already sold the vehicles. WHY? Well because you quickly explain your situation and ask them if they would mind telling you the price for which the vehicle ACTUALLY sold. Might be more or less than the advertised price. Make a record of the ad, the phone number and the ACTUAL PRICE. Get as many of these as you can.
Call a local used car dealership and explain your situation and ask for their help. Be willing to go see them. REMEMBER, you're in the market for a new car if yours has been totaled. Ask them help you determine the value of you car by looking in their records to see what similar models of theirs had sold for.
BE SURE the insurance company has the right specifications on your car. If you had leather seats and power EVERYTHING, make sure they have that noted in the file. (more on this later.)

So once you have a number in mind, you're ready to begin discussions with your insurance company. We'll get to that in a minute.... (and let me remind you here that I'm an agent not an adjuster, but I've worked with adjusters for over 30 years and I know how they think and what they need to write you that check...)

Here's a couple of things that are IMPORTANT to keep in mind as you proceed.

The claim adjuster is a hard workin' person just like you are. They're given MANY files a week to work through. I've seen it as high as 75!
They want to get this file off their desk as much as you want to get your money.
Most likely they DON'T REALLY CARE HOW MUCH THEY GIVE YOU FOR YOUR CAR! Yes, that's probably true. It's not their money. BUT... They have to justify in the file the amount they give you. If you can give them good justification for the value that you want, they are happy to write the check and get on the the next file.
If you become their ally in this effort, you'll get a much easier and (likely) more profitable settlement.
Insurance companies usually use an outside vendor to determine the value of the vehicle. (remember we talked about having your car accurately described to the insurance company....Leather Seats, etc???) The insurance company simply forwards that information to this vendor who researches SOLD VEHICLES in your area to determine the FAIR MARKET VALUE. It's usually NOT the adjuster who crunches the numbers..... he's just the messenger.

OK, now...back to the settlement.

ALWAYS have your acceptable number in mind before you call and ALWAYS let them make the first offer. You might be thinking $5,500 and they offer you $5,800. If that happens, simply say, "That sounds reasonable to me, can you mail the check today or would tomorrow be easier for you."

Have your documentation at the ready. You've done your research so you're ready. If the number is too low DON'T come unhinged. Ask them how they got the number and let them explain. Listen calmy and patiently without interrupting. Remember.....he wants settle and get rid of this file as much as you do.

Offer your documentation to help him justify paying a higher amount to you. Use phrases like, "Can I get a copy of this to you to help you with the file?" or "Would it help if I gave you some documented sales that were several hundred dollars above your offer?"

Calm... Collected and in control because you are. You don't have to settle until you're completely satisfied that you're getting fair market value.

If you don't have enough documentation, you'll have to go out and get some more. The more examples you can find, the better settlement you'll get for your vehicle.

Remember it's a process, not necessarily a one-time phone call. Take your time and win a friend along the way.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

7 Things you need to know BEFORE you buy LIFE INSURANCE

2008-02-22T14:05:00.000-08:00

The delivery of TAX-FREE LIFE INSURANCE proceeds is one of the most powerful social and economic forces in our country. What a shame that so many people don’t understand or appreciate its value.

As you carefully read this post, you’ll be better able to make wise and forward-thinking decisions regarding your LIFE INSURANCE.

By far and without exception, a life insurance claim is the most sobering and rewarding aspect of my profession as an insurance agent.
Sobering in that it reminds me of the brevity of this life and the certainty that it will end for all of us… eventually.
Rewarding because it’s an opportunity for me to deliver: A stay-at-home mother to children and the promise of a quality education for them, a paid-for house and a debt-free existence to the family, or a comfortable retirement for a weary widow.

It’s ONLY with the incredible power of LIFE INSURANCE that these are possible. When it comes time for you to consider this valuable cornerstone to your financial plan, you’ll want to make some very informed and calculated decisions.

Let me walk you thru some of them to help you make the ones that are best for you.
If you’ve read any of our other reports, you’ll know that even though insurance has been part of our culture for over 100 years, to most people – It’s still a just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”
I want to end that for you.

I'm an industry "insider": A licensed member of “The Club”
I’ve been inside the insurance business for over 25 years and I know it like the back of my hand: From policy to claims and back again.
I've sold insurance. I've bought Insurance.
I've studied it and I've learned that there's "good insurance" -- and there's "not-so-good insurance".
All insurance is "created equal".
Let’s take a quick trip with your imagination.

Picture yourself gone. Yes, I mean GONE, gone! Kind of morbid, I know. So if it makes it easier, go ahead and picture your exit as some grand, heroic or adventurous one. Maybe you went out skydiving or chasing wild horses in Wyoming. Or possibly you saved some kids from drowning when a school bus plunged into the lake. Either way… you’re gone.

Now -- Just ask yourself a few of simple questions.

Are there some bills left to pay? Funeral? Credit cards? Maybe a car? Or possibly a gambling tab out at Viejas Casino?

Is someone going to suffer without your income?

Is there anything to which you’d like to leave a legacy? Possibly you’d like to start a scholarship fund for some special group or just kids who need it. Maybe you’d like to have a small part of funding Meals-on-Wheels or grant some wishes come true through Make A Wish Foundation. Or maybe you’d like to leave something for your church. The possibilities are really endless.

If you answered yes or will be answering yes to any of those in your future, then LIFE INSURANCE is something you should seriously consider.

LIFE INSURANCE IS USUALLY THE LEAST EXPENSIVE WAY TO PAY FOR ANY OF THE ABOVE ITEMS.

“How is that possible?” you ask.

Life insurance dollars come to your beneficiaries costing just pennies on the dollar. Here's how it works... Dollars you earn and have put into savings, on the other hand, cost MORE THAN A DOLLAR for every dollar you receive. You work; you get taxes taken out of your pay. Every dollar you spend really costs you about $1.27 to get after you’ve paid the tax man. Life insurance, on the other hand, is ALWAYS delivered for just a fraction of a dollar! You may pay $500 per year for $100,000 of insurance. You may have it for 25 years before you die. $500 x 25 years is only $12,500, yet the policy will pay $100.000. You've paid only 12.5 cents for every dollar of benefit.

I think I know what you’re thinking about this point.
You’re thinking of all the hassle it is to decide what kind and how much and then complete the application and then to get the physical (often you DON’T need one) and then on and on and on…

I know how you can quickly get past all that…
In reality, it only takes about an hour. You can just skim this report to get an overview of what you need to be thinking about and then if you’d like…JUST CALL ME.
I’ll likely take about 10 minutes of your time on the phone to see where you’re at and then, if you’re ready, we’ll set a time to get together. If you just want the information for future reference, that's fine too. It’s really pretty simple and I’LL DO MOST OF THE WORK FOR YOU.

After all… It’s what I do.

So let’s just hop right into it….

7 Things you need to know BEFORE you buy LIFE INSURANCE

--------------------------------------------

Life Insurance Need-to-Know #1
Don’t buy it unless you need it

The truth is that nearly everybody could probably use a little Life Insurance. Remember the questions we asked above? If you answered yes to any of those or you’d just like to make your exit a little easier on those who are left to sort out the pieces and arrange your funeral and wake, you’re probably a good candidate for at least a little policy.
If you buy the right kind of policy, you’ll build up cash values within the policy and in many cases you’ll build more than the premiums you’ve paid. So if you’re thinking you might need some life insurance, go ahead and get a small policy that builds cash for you and you’ll be on your way.

Sometimes, people just don’t need or want any life insurance. You might be single with no debt and sufficient money in the bank to take care of ALL of your final expenses such as funeral cost, paying off all your debt, enough money to pay for the disposal of all your personal property, etc, etc. If you are, and you just don’t want any life insurance and think that you’ll never need it, then don’t buy it.

But....

If you think you might need it in the future you might want to get a small, cash value policy with a GUARANTEED INSURABILITY OPTION. (means you can buy more later, but you don't have to...)

Life Insurance Need-to-Know #2
If you’re going to buy it, buy the right amount

We could make this portion of this report very lengthy, but I’ll give you a couple of simple options.

First is just the REPLACE MY INCOME estimate. Use the one-step chart below and there’s your answer.

Table 1-Income Replacement

First Column: Annual income to be replaced. Top Row: Years of replacement income required. Table Body: Lump sum life insurance required. Assumptions: Annual inflation rate assumed to be 4.0%; Annual investment return assumed to be 6.0%.

It’s just as easy to buy too much life insurance as it is to buy too little. You want to be sure you have the right amount of coverage.

You should also consider life insurance on your spouse or any other person on whose income you depend to make ends meet each month.

If you’re married with children you should also consider if there additional expenses should you and your spouse die at the same time or within a short time of each other. For example, you might want to provide additional monthly income to whomever you have designated to finish raising your children for you.

This short form can enable you to get a little more specific if you’d like to. It might give you’re a better idea of how much you’ll need.

1. Would you like to pay off your mortgage or have money available to pay the rent? If so, either enter the mortgage amount or your Annual Rent Cost times the Number of Years)You’d like to Provide. (Rent x Years = TOTAL)
$ __________________________

2. How much do you want available to pay off any other debts like credit card balances, car loans, student loans, personal loans, etc.?
$ __________________________

3. How much of your annual income will your family need each year after your death? (Remember if you paid off the house above or provided rent money, you won’t need to include that in their annual needs.) Use the INCOME REPLACEMENT TABLE above.
$ __________________________

4. How much do you want to set aside to pay your funeral costs? You may also want to complete this calculator for your spouse to see if they have a need for life insurance.

$ __________________________

5. How much do you want to set aside for any other needs such as an emergency fund, gifts to charity, or a family member with special needs?
$ __________________________

6. How much do you want to provide for your children's education if you die?
$ __________________________
7. TOTAL NEEDS: (add 1-6 above) $ ____________________

-------------------------------------------
-------------------------------------------

A. How much life insurance (individual and group) do you have now?
$ __________________________

B. What other assets (such as savings accounts, CDs, mutual funds,
stocks, bonds, 401k, retirement plans, or pension plans) would you
want your family to use to meet these needs?
$ __________________________

C. TOTAL RESOURCES: (add A & B above)
$ __________________________

TOTAL Need for LIFE INSURANCE: (Subtract Line C from Line 7)
$ __________________________

You may also want to complete this calculator for your spouse to see if they have a need for life insurance.

Can I give you a little hint?
If you’re married, let your spouse decide how much life insurance to get on YOUR life -- And vice-versa. Whoever will be around to fix the problems should get to decide how much $ will
be available.

As you fill in the amounts, keep in mind the people that will be dealing with these issues. Do what’s best for them and you’ll be on the right track.

Life Insurance Need-to-Know #3
If you need it, then buy it, AND BUY THE RIGHT KIND

A SIMPLE EXPLANATION OF THE DIFFERENCE BETWEEN TERM AND CASH VALUE INSURANCE Probably one of the best analogies I’ve heard and have used for most of my 25+ years as an agent is this: Cash Value (aka: Permanent, Whole Life, Universal) life insurance is like owning a house. Term life insurance is like renting. When you own a house, initially you will pay a little more each month than you would if you were renting. Yet, in the long run, with the appreciation of the value of your home, you’ll likely make more money than it costs you to live there. Your monthly house payments are really contributing toward your own wealth. It’s like mailing money ahead to YOURSELF! When you rent, you pay less each month but you’re not building any equity or cash value and when you leave, you just leave all that rent money sitting in the landlords bank account. Your monthly rent ends up contributing to your landlord’s wealth instead of your own.

Face it! Odds are you’re going to live a long, happy and healthy life and your family WON’T need this policy. So buy the kind of life insurance where you get some or all of your money BACK when you’re older.

“Cash Value” or “Permanent” life insurance policies are tremendously powerful financial instruments. BUT…they’re designed for insurance that you’ll need to keep for all of your life.

You’ll probably want a little permanent life insurance in your plan because you will SURELY make a claim on it someday. Hopefully it will be when you’re VERY old & wrinkled and your need for life insurance is at a minimum: Just enough to pay off a few bills and cover your funeral expenses.

Realistically, TERM insurance is usually a better choice for those needs you may have now, but will not have forever.

So here’s a couple of help questions for you:

Do I want some life insurance in force when I die? (probably yes)
What’s my best guess of when that will be? (let’s say you guess 78)
How much do I want in place at that time?

Whatever your answer is for question 3, THAT’S how much permanent insurance you should have. Consider term insurance to fill the rest of your needs.If you’re currently one of the bread-winners in your household and there are people depending on your income for everything from food to tuition, then you probably need a pretty big chunk of life insurance – For NOW at least. You likely won’t need that much for the long term. THAT’S where TERM insurance is likely your best bet.

Get some permanent insurance for the long haul; maybe $25,000 - $100,000. Usually you won’t need more than that. Get TERM INSURANCE for the temporary times in your life that you need more. Then DROP IT! No loss.

And here’s the real rub! TERM insurance is usually only renewable to a certain age and even then it gets VERY expensive. When you’re 70 or so (and your income is less because you’ve retired) your term insurance could be too expensive to keep and you may still want or need some life insurance. With permanent insurance, there’s usually enough cash value there so that you can just QUIT PAYING and be insured for life.

Life Insurance Need-to-Know #4
Once you buy it – KEEP IT until your reason for buying it no longer exists

Too many times I’ve seen people buy life insurance: Either term or permanent and then, for some reason, let it drop. Usually it’s for one of a couple of reasons.
They initially got in a little over their heads with too big of a monthly premium and it’s finally caught up to them.
They didn’t buy for the right reasons.

Make a commitment when you get your life insurance to make it comfortable on your budget so you can keep it with no financial pressure. And commit to keep it until the reasons for purchase no longer exist.

For example, if one of your reasons is to ensure that your kids complete college, and then keep it until they’ve all walked across that stage and received their diploma. (Or at least until you’ve made that last tuition payment.)

If you don’t buy this way, you’ll just be wasting your money if you keep the policy for several months and then quit.

Here in the Dennis Volz Agency, we want you to be comfortable with your insurance.
We’ll explain your LIFE INSURANCE options in simple, everyday language that you can understand.
We strive to personalize every insurance policy to be sure you have exactly what you need and want.
NOTHING MORE; NOTHING LESS

Life Insurance Need-to-Know #5
Let Uncle Sam help you pay your premiums

When you purchase permanent life insurance, the money accumulates tax-deferred. You end up saving even more because the accumulation is tax favored. This could make you think that even the Federal Government thinks that life insurance is a good idea!

Life Insurance Need-to-Know #6
Don’t touch the Nest Egg

Money that you contribute to you permanent life insurance can build a significant amount of cash over time. This money is available to you. Let me encourage you that as those numbers start to grow, LEAVE IT ALONE!

Here’s a good rule of thumb to govern your dipping into the nest egg.

NEVER TOUCH THE NEST EGG EXCEPT FOR AN EXTREME EMERGENCY OR A PHENOMENAL OPPORTUNITY.

No, a year-end sale on a Corvette doesn’t count as a PHENOMENAL OPPORTUNITY! Nice try !

Life Insurance Need-to-Know #7
Review, review, review… But only once a year or so

Every year that you’re living with either too much insurance, the wrong kind of insurance or not enough, you’re probably wasting some money.

A simple review that can take as little as 10-15 minutes over the phone with your agent can prevent this. Sometimes changes in your life can be so much and so harried that you don’t even realize when things affect your needs for life insurance. An agent who’s willing to spend the time required with you and asking the right questions can uncover these changes and often save you hundreds of dollars in the process.

A FEW RANDOM QUESTIONS...

What about my GROUP insurance at work?
Group insurance is probably the LEAST EXPENSIVE of all life insurance policies. Sometimes it’s even FREE! (Well, paid for by your employer anyway) My advice is TAKE IT! But don’t depend on it. Count it as just a little extra, but in addition,
Have your own plan that YOU CONTROL.
Group insurance can come and go. The company can “change the deal.” You could change jobs and be with out coverage for a time. Maybe the new job doesn’t offer group life insurance.
I’ve seen people become uninsurable for health reasons, change jobs and then they’re unable to replace their group insurance. Keep your life insurance under your control not your employer’s or other circumstances beyond your control.

Can Life Insurance double as my RETIREMENT?
Permanent insurance should NEVER be a substitute for a good retirement plan. Any agent that tells you to dump hundreds of dollars a month into a permanent life insurance plan to fund your retirement before you’ve established a good, regular investment program outside of life insurance for your retirement should be questioned.

The permanent portion of your life insurance does give you flexibility in your retirement years. You can keep the insurance, sometimes stop paying the premiums (and continue to be insured), draw on some of the cash value if you need to and a host of other options. But life insurance should never be your main vehicle to retirement planning.

A word about beneficiaries…
The beneficiary is the person who receives the proceeds of a life insurance policy at the death of the insured. Carefully structure and word your beneficiary clause. You can cause big problems if you’re thinking one thing and actually say something else in the beneficiary section of the policy.

Carefully discuss this with your agent. Something as simple as a Per Stirpes clause can save a lot of confusion.

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So how do I know just how much I can afford to spend on my life insurance?

Well we have some suggestions for that for you too. The trick is to know how much you’re spending and where you’re spending it. You can’t know that unless you have a written budget. It’s really the most important key to effective money management. We have some help for you there too. Making a budget isn’t as difficult as you might think. We’ve actually broken it down to 7 simple steps that anyone can follow. If you’ve been frustrated with your money get your FREE REPORT: 7 SIMPLE STEPS Make a budget and STICK TO IT ! just click the link above or give me a call 619-670-1000 or drop me an email
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What about Life Insurance on my kids?
Getting a small policy on kids is usually a great idea. While kids generally don’t need insurance for financial reasons it does a couple of things for them.

First it protects their insurability. Kids can sometimes develop physical problems that make them uninsurable. Doesn’t happen very often, but it’s probably a good idea to get them a nominal permanent policy.
Second, it locks in a nice low monthly premium for them. Life insurance rates on kids are phenomenal. The monthly premium on just a small $25,000 policy on a 30 year old is nearly DOUBLE what it is on a 2 year old. And that premium is good for life!

You’ll always want to get what’s called the GUARANTEED INSURABILITY OPTION. (Look back to the yellow insert )

Why should I buy Life Insurance when I'm young?

Life insurance is cheaper when you’re younger. On the permanent portion of your insurance plan, the longer you put your money to work for you, the better the result!
When you’re young, you’re insurable. When you’re older; maybe you’re not. We’re all just one doctor visit away from NOT being able to buy life insurance. If you’re diagnosed with even a minor ailment the cost of your life insurance can go up dramatically and in some cases, you won’t be able to buy it at all.

Other questions I could answer (but I won't here...)
Is it ultimately cheaper to pay annually or monthly?
How can I be sure that my life insurance company is safe?
What are ‘Banded Premiums” and how can they save me money?
What about Accidental Death and Dismemberment Riders? Should I have one?
Should I own my own policy or should my spouse?
Can I buy insurance on my business partner?
Is the Non-Tobacco rate really THAT MUCH BETTER?
What’s the difference between dividends and cash value?
What’s a “contestable clause” and how could it hurt me if I don’t understand it?
What are PAID UP ADDITIONS and how can they increase my insurance coverage?

Really.. I could really fill a book.
That’s why you really need a committed agent to do all this thinking with you.
After all… You probably have better things to do.

If you're in or near San Diego County, I'd be happy to help. If you're not, find a good, knowledgeable agent in your area. Take your time... it's an important decision.

When it comes to buying life insurance, you should always deal with a LARGE, WELL-KNOWN, REPUTABLE INSURANCE COMPANY. One easy rule is that if you haven’t heard of them, be suspect. I guarantee you’ve heard of ours – we’ve been at it for over 75 years! Today we have over 7 million life and annuity policies in force. Since 1929 we have been protecting American families one policy at a time. Just go to www.DennisVolz.com . (don't worry, this window will stay right here...)

WOW! Kind of impressive!

I think so.

And it’s ALL included at no additional premium...

We offer NATIONWIDE AND 24 HOUR CUSTOMER SERVICE. That’s right -- Doesn’t matter if it’s a claim or a question. You simply call my office number, 619-670-1000 and you’ll have access to our 24 Hour Customer Response Team and/or to my personal cell phone.
Should you need insurance help while away from home, we have over 1000 claim offices and over 16,000 agent offices across the United States and Canada all committed to giving you friendly, efficient home-town service (even if you’re from California ! )

We also offer free 24 hour online access to your policy information. Our company website offers you more insurance information than your brain can possibly hold. It’s all available with just the click of your mouse, 24/7/365.

We’re a friendly, local office with a licensed, trained team to assist you in every phase of your insurance. We’ve been in business here in San Diego County for over 25 years.
And, BONUS!
Whenever you call us during regular business hours, there’s NO ELECTRONIC TELEPHONE MENU to navigate -- Just a friendly voice on the phone ready to help you. (if you call after hours, there is a single-choice menu where you simply choose to leave a voicemail or to speak to a real, LIVE person)
Go ahead try it right now. If it’s during business hours, you’ll get us; after hours and you’ll get the Customer Response Center. 619-670-1000 !

“WOW”, you say!
“And that’s all included at no additional premium?”

This is so simple and easy to do.
We do all the work for you and in usually less than 30 minutes, you’ll have protected your family, their future financial stability, and your peace of mind!

Why somebody wouldn’t have their LIFE INSURANCE with us is simply beyond me.

In our agency we offer you 5 different ways to pay your premiums.
You have your choice of annual, semi-annual, Quarterly, Monthly and SPECIAL MONTHLY…
“So what’s so special about SPECIAL MONTHLY,” you might ask.
It’s special cuz it’s just so insanely easy.

We set it up for you and your monthly payment comes right out of your checking account: Same day; Every month.

Once again, If you're in or near San Diego County, I'd be happy to help.

You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
ALL RIGHTS RESERVED. Copyright (c) 2006 – SmarterInsurance Inc -- No part of this document may be reproduced in any form, or by any means, without prior written permission of the copyright owner. LEGAL NOTICES: While attempts have been made to verify the information provided, SmarterInsurance Inc will not assume any responsibility for errors, inaccuracies, or omissions. Since this document presents general discussions, always consult a qualified professional regarding your specific tax, legal, financial, and personal circumstances. (911.21740)

Term Life Insurance – Beware of the Ticking Time Bomb

2008-02-21T11:01:00.000-08:00

Beware Of Your Term Insurance -- THE TICKING TIME BOMB!

WHAT KIND OF INSURANCE IS BEST FOR ME?

If you’ve read any of our other reports, you’ll know that even though insurance has been part of our culture for over 100 years, to most people – It’s still just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”

I want to end that for you.

I'm an industry "insider": A licensed member of “The Club”
I’ve been inside the insurance business for over 30 years and I know it like the back of my hand: From policy to claims and back again.
I've sold insurance. I've studied it. I've discovered what makes "good insurance" -- and what makes "bad insurance".

I know that not all insurance is "created equal". Life insurance is certainly no exception. Placing all your coverage in TERM LIFE INSURANCE can be one of the costliest mistakes you could make.

To help us get started, please answer this question for yourself:

WHEN DO I WANT MY LIFE INSURANCE TO BE IN FORCE?
(IN FORCE means that it’s paid, current and ready to pay a death benefit if you should die. )

Well, the obvious answer is: WHEN I DIE!! Of course…

OK, when do you plan to die????

The next obvious answer (at least MY answer is) When I’m old.
VERY OLD.
THE OLDER, THE BETTER!
Let’s face it. You purchase life insurance really hoping that you’re NOT going to use it any time soon. And you know what? Odds are that you probably won’t. Most likely you’re going to die when you’re older – Much older. But just in case you don’t, you purchase life insurance to protect the financial future of those you love.

So let’s look at the facts of term life insurance. Nothing emotional or prejudged – Kind of like an FBI agent just examining the evidence to see where it leads.

Here’s what Term Life Insurance life rates look like. This is just a typical example for a $100,000 5 year Term Policy, Male, non-tobacco rates. You can get different rates from a hundred different companies. What will be the SAME from ALL THE COMPANIES is the UPWARD TREND of the rates.

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FACT #1 – Term life insurance is not very expensive when you are young. Notice how the rate doesn’t even change for the first 3 years.

FACT #2 – Term life insurance premiums increase as you get older. Take a look at the chart. Except for the first few years, the rate increases EVERY YEAR.

FACT #3 – Term life insurance gets VERY EXPENSIVE when you’re older. Notice how it increases VERY SLOWLY until about age 50 when it really starts to take off.

FACT #4 – The premiums you pay for term life insurance never come back to you. You see term insurance is kind of like renting an apartment. Certainly cheaper every month than buying a house, but when you leave you leave all your hard earned money with your landlord.

FACT #5 – At some point in time, you’ll look at your monthly premium for your term life insurance and say, “I just can’t afford this any longer.” It usually happens just about the time you retire and your income is going down a little and the cost of your life insurance is rocketing through the roof! Check the premium at AGE 71… WOW!

Could be a problem, don’t you think?

At age 71 you may not need the insurance any longer. But let’s just say that you do. Maybe the house isn’t quite paid for, there’s some money you’d like to leave to family, grandkids, spouse, your church… could be a hundred different reasons. The problem is that if you want to keep your insurance, you probably can’t because it’s just become too expensive for you.

Wouldn’t you like to have the option to keep it or not?

Let me show you how you can have that choice then by making a simple decision today.
Get a small permanent life insurance policy today that will give you options when you are older.

Here’s what permanent insurance can do for you.
1. Provides you with insurance you can keep for the rest of your life.
2. NEVER increases in premium.
3. Usually allows you to stop paying the premiums just about the time you retire and REMAIN INSURED FOR THE REST OF YOUR LIFE.
4. Sometimes you can even have the policy PAY YOU a monthly income.
(I’ll include a few more for you at the end of this section…. Look or this little guy again. ---------------------->

Remember -- Odds are you’re going to live and your term insurance isn’t going to pay a death benefit for you. But it fills a need when you’re young. Generally in your younger years 30-55, your financial responsibilities are high. You have kids, house payments, extra cars, college to pay for, on and on and on…

Usually, when you hit 55-60 or so, those obligations are MUCH LESS! You don’t need the amount of life insurance you needed when you were younger. The kids are out of the house, you have fewer cars to “support”, college is done, the house is paid for (or nearly so…).

BUT…. There will still be expenses to handle when you die – Funeral, maybe some small debts to pay off, or possibly you need to provide an income for your spouse at the loss of you retirement income.

The cheapest way to pay those expenses is ALWAYS WITH SOME LIFE INSURANCE. Much cheaper than drawing money out of the savings account.
But here’s the problem with that…

If you need $500,000 of insurance coverage today because your obligations are still in the fast lane, you probably can’t really afford to buy all of your life insurance as PERMANENT insurance.

$500,000 or permanent insurance would cost you at least $300-$400 per month.
And here’s the answer….

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Get the term insurance you need to cover your obligations today. Get a small amount of permanent insurance to keep for the rest of your life – maybe $50,000 or $100,000. Drop the term insurance when it gets too expensive and keep the permanent insurance.

************************

Life insurance is the ONLY kind of insurance you buy where you’re GUARANTEED to make a claim. Your term insurance may or may not be in force when you die. Your permanent insurance will be.

And here’s the real rub! Even if you decide to pay the additional premiums, TERM insurance is usually only renewable to a certain age. You may live longer than the policy can be renewed

Here’s some more benefits of permanent insurance if you choose UNIVERSAL LIFE as your policy:

5. Your earnings are TAX DEFERRED which means Uncle Sam actually is helping you pay your insurance premiums.
6. Your policy PREMIUMS are flexible which means that if you hit a period of financial hardship you can actually STOP PAYING for a short period of time and continue to be insured.
7. You can adjust the amount of your coverage up and down depending on your changing needs. (you’ll need to be insurable of course to increase the coverage unless you’ve planned ahead by adding GIO to your policy. Good to get, but too much to explain here. Ask me when I see you.)

So here’s all you need to do…

Get the numbers on your own permanent insurance plan and just look at 'em. (that's FREE for Pete's Sake) For just the price of a Starbucks a day OR LESS, you can have the peace of mind that comes with owning a permanent insurance plan that can make your life so much easier when you are older.

NO obligation, no pressure, just take a look then decide.

So here's a couple of help questions for you:

1. Do I want some life insurance in force when I die? (probably yes)
2. What's my best guess of when that will be? (let's say you guess 78)
3. How much life insurance do I want in place at that time?

Whatever your answer is for question #3, THAT'S how much permanent life insurance you should have. Consider term insurance to fill the rest of your (temporary) needs.

If you have any questions, just give me a call 619-670-1000 or drop me an email to Dennis@DennisVolz.com

(if you'd like to look at your numbers,)

I just need to know three things:
1. Your age
2. If you want $50,000, $75,000, or $100,000 or permanent insurance (you can choose any amount above $50,000 of course, but most choose one of those three.)
3. Do you use tobacco in any form?

I’ll email you an illustration of your policy and then let you decide.

It just doesn’t get any better -

OR EASIER - than that…

You’ve got everything to gain and NOTHING to lose.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

101 Ways To Save Money And Live Better

2008-02-20T10:35:00.000-08:00

101 Ways to Save Money and Live Better is provided for one purpose and one purpose only!

TO CHANGE YOUR THINKING.

You thought I was going to say, “To save you money,” didn’t you?

You will save money by using these ideas. You might even save a lot of money. But…

Until you change your thinking about how you spend your money,
you’ll only be scratching the surface of what you could do!

Many of our clients, who really use this guide to change their money habits, take off on their own when they “get the fever.”

These ideas will not work unless you do!

The more you save, the more you can save for yourself in the form of retirement, mutual funds, bonds, whatever you think is best for you.

It will take a purposeful dedication to your goals, but you can change your situation!

Well I promised you 101 Ways To Save Money And Live Better, so here it is.

In General

1. Don’t go shopping! If you don’t go shopping, you won’t spend ANY money. Of course if you really need something from the store, go and buy it. But don’t just go shopping. Don’t get trapped like 34,300 surveyed mall shoppers who were asked the primary reason for their visit to the mall. Only 24% said they had come for a specific item.

So don’t go shopping. And while you’re at it, stay away from the advertising that whets your appetite for stuff that you don’t need and likely don’t even want! And for heaven’s sake, don’t tune in to the Home Shopping Network.

2. Avoid Everything Stores like K-Mart, Target, or WalMart. These stores are just too dangerous. Because they carry everything in the world it’s just too easy to go and stray from your plan. If you need hairspray, get it at the grocery store when you do your food shopping. If you’re especially weak in these stores, take your spouse or a good friend who understands your quest for Intelligent Frugality and ask them to be sure you stick to your list.

3. Live within your means. This notion is so outmoded that some readers might not even know what it signifies. To live within your means is to buy only what you prudently can afford and to avoid debt. Living within your means suggests that you wait till you have the money before you buy what you need. No interest charges, no sweating the end of the month and no unconscious spending. It also gives you a “waiting period” in which you may very well discover that you don’t need or want those things after all.

4. Take care of what you have. This is sort of a no brainer but some people simply don’t care for what they have. When you neglect what you have, when you defer inexpensive maintenance and care for replacement instead, you feed the system instead of feeding yourself. Get into changing the oil in your car, clean your tools, clean you appliances (hair dryer, vacuum, refrigerator, etc.) Machines, unlike our bodies, are not self-healing. You let ‘em go, they’ll let you down.

5. Wear it out. I know this sounds contrary to what you just read. It’s not. Think for a minute – What’s the last item you actually wore out? Americans discard 1,455 pounds of garbage every year. Much of it is perfectly usable. We replace, upgrade, trade up to the newest fashion, and just plain junk perfectly good electronic equipment, furniture, clothing, kitchenware, linens and automobiles.

Think of ways to recycle (for yourself) items that are just a little worn and possibly not just the latest. Think of ways to use parts of items you’re going to discard. And before you buy anything new, ask yourself, “Do I already have something that will do the same job this one will?”

6. Learn to enjoy each moment as a special gift. Truly in the 90’s we can get so busy chasing the carrot, raising the kids, improving our minds, eating low-fat, striving for excellence in all that we do, that we fail to enjoy doing any of it. Part of the title is Living Better and with that goes some change in our thinking. One very important factor in living better is to enjoy each moment. Waiting in line, driving to the beach, drifting off to sleep, reading a story to the kids, making dinner, and answering the phone are all necessary components of our lives. Just accept it. Learn to love the process of getting there instead of always focusing on that distant goal or achievement that will “make you happy.”

7. Do it yourself. Can you tune your car? Fix a plumbing leak? Do your taxes? Rewire a toaster? Think of all the things you pay others to do that you could at least try yourself. There’s hundreds of books (FREE at the library), or sites on the BIG WWW that will walk you step by step through just about anything from building your own computer to changing out a broken window.

8. Anticipate your needs. Forethought of purchases can bring you tremendous savings. With enough “lead time” you can get items at savings of 20 to 50 percent under the usual price. Think in terms of white sales, end-of-the-season clothing sales (buy your winter coat at the end of winter when they’re all on sale). When you wait till the last minute to buy things you need you’re at the mercy of whatever is out there RIGHT NOW. A little planning allows you time to search for sales, coupons, and garage sales.

9. Get it for less. With the availability of discount catalogs, discount chain stores and the miracle of the Yellow Pages, and shopping on Ebay or other WEB sites, you can, with just a little effort usually save up to 30 percent just by checking a few options before getting out that checkbook!

10. Buy it used. Reexamine your attitudes about buying used items. You might say, “I don’t want to get any used items.” Well let’s just think about that . . . EVERYTHING YOU OWN IS USED! It’s true. Buying used requires a little forethought (see #8) in that you may not be able to find what you need as quickly as buying new. At least give it a try.

11. Write down everything you spend for 30-60 days. You would be amazed how unconsciously you spend your money. Be sure to write down EVERY PENNY you spend. Do it for at least 30 days. My lovely bride did this about 15 years ago and learned that she was spending over $100 a month at MacDonald’s! Things changed real quick. J

12. When you want a non-budget item, write it on a Want List. Then, just before payday, if you have some extra money, you can grab your Want List. This is an excellent habit for a couple of reasons. You will be more disciplined throughout the month because you know that there’s something else you really want. The time between writing it down and the actual time of purchase may be enough time to decide you don’t really need the item anyway. If that’s the case, cross it off the list.

13. Study and follow all the steps of this program. The steps in this program have been followed successfully by thousands of people. They have found that doing all the steps leads to a transformed relationship with money. When you change your thinking, tremendous things will happen!

Probably most important of all is that you have a plan for your money and your future. Planning is just too easy to let worry and frustration over money get in the way. There are simple models to follow based on your income, goals, and financial situation.
* * * * * (Please see me for additional information: Call me at 619-670-1000 or Email me at Dennis@DennisVolz.com )

Transportation Expenses

14. Learn to do certain minor automobile repairs yourself. It’s not true that men can naturally fix cars and women cannot. Whatever labor costs you save are like making money at a part time job. If you normally spend $20 at “Slimy Lube” for an oil change, you can make about $14 an hour at your part-time oil changing job by spending $6 for oil at K-Mart and doing the job yourself.

15. Shop around for a reliable, reasonable mechanic before you need one. Ask around. Check with people you trust. Then when you run up against a repair you can’t do or just don’t know what’s wrong, take it to them. After time you’ll build a relationship and they’ll treat you really well. Sometimes paying them $10 just for a few minutes to tell you what’s wrong will enable you to fix the car yourself.

Sometimes you can shop for parts yourself, often saving 15 to 20 percent and then, if needed, your mechanic can install them for you.

16. Perform regular maintenance (or do it yourself). I’m sure you remember the old commercial with the mechanic and the oil filter. “You can pay me now (he holds up the oil filter), or you can pay me later (he holds up some oily, drippy, ruined part from the car engine). It’s oh so true. Regular maintenance will add years of life to your automobile. It will add years to your life through reduced stress and anxiety from a car that is not reliable.

17. Assess whether or not that extra car (or two) is necessary. Go ahead and figure out what that car costs you. Don’t forget license, insurance, maintenance, gas, oil, storage, time and energy. Be careful not to over rationalize or confuse need for want.

18. Walk to do local errands. How far is too far to walk? Is it good exercise? You might enjoy the walk as an escape from it all. Short trips in your car on a cold engine are the major contributors to wear and tear and poor gas mileage.

19. Use public transportation. I know this may sound a little “out of the box”. Just consider the cost of going downtown is more than just parking; it’s gas, wear and tear, and more. If the IRS computes mileage at 27 cents a mile, shouldn’t you.

20. Carpool to work. It can be a little inconvenient, but once you get used to it, you’ll never go back. You will reduce your expenses, form new relationships, possibly reduce your commute time because you can use the “commuter lane” and zip past all the single-occupant cars!

21. Move closer to your job, or get a job closer to your home. You might even go so far as to get within walking distance (or at least bicycle distance). In order to really get ahead on your finances, it will require some real “thinking out of the box.” Just explore the possibilities. If you live close enough to bike to work and you don’t have a bike, borrow one for a few weeks and then if it makes sense, go out and buy a good used bike.

22. Check out insurance rates before you buy a car. Once you buy your car, hopefully you’ll keep it for a long time (till the wheels fall off!) That way you’ll get maximum value for your purchase. So in consideration of keeping the car awhile, check out the insurance rate you’ll be paying on that car for it’s stay with you. Even if you save $50 a year by getting one model instead of another, that’s $50 you can use for investment or debt reduction. Remember, THEY ALL ADD UP!

23. Repair your older car rather than purchase a new one. It can be a little inconvenient but consider the added insurance costs for a new car, the car payment, and you’ll probably wash your newer car more. Keep a record of your maintenance costs. By doing that, when you consider purchasing a newer car, you can look at accurate figures to see if you’re really spending more than your new car payment will be. At $300 a month for a new car payment, your old car would have to be in the shop a full week out of every month to exceed that expense!

24. Consolidate errands to conserve money. Every trip you take costs you money. Keep a notepad at home or in your car to jot down things you need to do and get. Then, once a week or so, do all of it at once. Do it all at one shopping center if you can.

25. Get off of the Advertiser’s Bandwagon. If you listen to them, it’s impossible to be happy, or sexy, or young, or successful unless you are driving a brand new whatever. Given a line of diminishing returns, older cars are better for you. When I compare the years of car payments up to my neck or years without them, I’ll pick the minor repairs anytime.

And if you’re afraid that your friends or work associates will judge you unfairly based on what you drive, here’s a clue. THEY WILL. They will make judgements about you whatever you do. Stop buying to impress others and start buying to wow yourself with your cash flow!

On Your Job

There are more ways to make more money on your job than there are ways to save money. After all, isn’t that what the job place is all about? Making money. The first consideration is your wage. I know people who say they make $10 an hour, or they make $27.50 an hour, or whatever. They think they make money for the time they spend. Not true. If that were true, they could just say home and have their company send the money.
In reality, they get paid for the value they bring to the hour. If that’s the case, here is a question for you. Is it possible for a person to become more valuable and therefore receive more money for the value they bring to the hour? The answer is, of course. As we bring more value to the market place, we will be compensated accordingly.
Why would large corporation pay its Chief Executive Officers millions of dollars a year. They have become more valuable. If an executive makes a company a billion dollars, why wouldn’t they pay him several million?
With that in mind, let’s see how we can affect our financial condition at the workplace. Here’s a couple of ideas – a few on saving and a few on becoming more valuable.

26. Stay away from the “snack area” or the “break room.” This is a double whammy! You’re likely to be spending money on things you don’t need to eat and aren’t healthy. You’re also likely to be talking with the negative complaining bunch. Instead, grab an apple from your lunch pale and spend the time enriching you and your work environment. Use the time to talk with someone who might have a position in the company that you’d like to have someday. Ask to help out with some project, take some work home, or study some of the appropriate manuals in the area.

Do what you can to make yourself more valuable to your employer. Despite that negative bunch you used to hang out with, they will recognize your improvement and pay you accordingly. If they don’t, you are more valuable and another company will pay you for your improved condition. Speaking as an employer, I’ll always keep and pay more to the person that has become more valuable, dependable, or trustworthy!

27. Ask the boss for a raise. I’m amazed at the number of people who fail to do this. Maybe it’s fear or lack of confidence. The truth is that if you go into the situation with some reasonable documentation or logic, the boss will be more than likely to grant your request. There are books at the library that will teach you how to go about the process.

28. Cut your wardrobe expenses by 20 percent. Most of the time, companies are much more concerned about your job performance than your wardrobe. Although you can’t come to work looking like a homeless person, you don’t need to have all the latest and totally trendy clothes just to go and get the job done. As long as the clothes are neat, clean, and presentable, your employer will prefer superior job performance to fashionable presentation any day!

Medical Costs

29. Consider getting a major medical insurance policy with a $1000 - $2000 deductible. Usually deductibles are annual and some can be carried into the next year if expenses are incurred during the last quarter. If you follow the rest of the suggestions in this section, you won’t need to be going to the doctor as often.

30. Comparison-shop for medical services and supplies just like you shop for anything else; EVEN A DOCTOR. We’ve been so conditioned that doctors are almost god-like. Don’t be afraid to call several doctors’ offices and ask them their prices. Ask them if they will discount their price if you pay cash. Even if you have insurance you will save on deductibles, co-pay, and you will get better prices for your insurance company that will help control premiums. (Remember, insurance companies don’t decide the rates, they only compute the rate necessary based on costs.)

31. Eat a proper diet. Preventative maintenance works just as well for your body as it does for your car. Except you can’t trade your body in when you wear it out. Get some good nutritional books from the library, exercise regularly, don’t snack, drink lots of water, all that stuff your mother told you still makes sense.

32. Stop smoking cigarettes. Not only to non-smokers have fewer health problems, but insurance companies honor that by giving them lower rates. In addition, consider just the cost of the cigarettes. If you smoke a pack a day, you’re up to at least $2 per day with cost of cigarettes and ruined clothing. Of you quit at 30, put that $60 a month into a tax shelter, you’ll retire with $49,450.87 more than you would without quitting. Not to mention you’ll probably love longer and better!

33. Get proper rest. According to Reader’s Digest, in the time before the electric light bulb was invented, people slept nine and a half hours. Now, if you sleep more than six or seven hours, people think you lack drive and ambition. Depriving yourself of needed rest will create problems in your thinking, your health, and your attitude. All will affect your pocketbook! Give yourself what money can’t buy; A good night’s rest!

34. Maintain the proper body weight. You will save on food, medical costs, clothing, and you’ll just feel a heck of a lot better. Keep from using an expensive diet program by making small adjustments in your eating habits – One at a time, every few months. Get good nutritional advice for free from books at the library and find a friend who has good height/weight ratio and who eats well and ask them for help.

Living Expenses

35. Move to a less expensive area. Try to keep the theme of living close to your work, but compare living expenses against commuting expenses. An apartment in Honolulu will run you abut $980 a month. The same apartment in Oklahoma City will rent for $308 a month. It DOES make a difference. Moves within your own city can see drastic differences in your living expenses. Also consider schools, proximity of shopping, parks, church activities, and whatever “things” that take you away from home.

36. Sell your house and live in a motor home. Have you ever herd of “snowbirds?” They are retired people who have sold their homes and now live in very nice motor homes and follow the summer! There are magazines and books that will offer you information on this kind of lifestyle. Even if you’re younger with children, there are places in your city that will accommodate a motor home as a permanent living arrangement. You might even consider this as a temporary arrangement to help you power out of debt or save to buy a home.

37. Buy a piece of property and put a used mobile home on it. A couple I know of purchased a piece of land and a used mobile home just forty minutes outside of Seattle for $10,000. She couldn’t believe she had paid over $1000 a month for a home for so many years. There are cheaper ways to live.

38. Do your own home repairs. If you own your home, maintenance can put a terrible damper on your cash flow. Learning to do it yourself isn’t as formidable as you might think. It’s usually just a matter of knowing the little “tricks of the trade.” Several years ago we remodeled our home. I watches the workmen rip my home apart. I flinched with each hole in the wall, each piece of shattered plaster. Then I watched them put it all back together and found myself saying, “Well, I could have done that!” Of course I could . . . AFTER I WATCHED THEM DO IT. Get someone to teach you, get videos at Home Depot, or watch “This Old House” on TV. Most tasks around the house are a lot easier than they seem.

39. Another variation on doing your own repairs is a working potluck. When there’s yard work or home maintenance, get together with a friend. Work at his house and then they come to yours. Maybe it’s regular maintenance items (yard work or auto maintenance) or a project such as removing storm windows or painting the fence. If you agree on some maintenance items that each of your homes need, you can share the time, share the tools, and possibly get a better deal on buying the materials you need for the job The task ends up like a quilting bee with the socializing making the time fly.

Around the House

40. Remove your shoes at the door. This works for a couple of reasons. First, when you get home and remove your shoes it’s kind of a symbolic thing. I’m home, I’m going to relax! Second, it will reduce wear and tear on your carpeting. My kids tell me that they like to run and slide on the tile. (Keeps it clean!)

41. Keep the thermostat at 68º in the winter and at 78º in the summer. Just a few degrees off of the heater or the air conditioner can save substantially on your utility bill. Wear a sweater around the house in the winter and during the summer, if you have air conditioning and the house feels hot, step outside for a few minutes. The house will feel great when you go back inside.

42. Run the dishwasher only when full. My mother, in her later years when living by herself, ran her dishwasher about once a week. She just waited till it was full and ran it. Also you can usually use half the recommended amount of soap and never know the difference.

43. Check your phone bill for unnecessary or unwanted features and charges. Could be just a little thing, but they will remove items you don’t want and if they were unwanted they will give back credit for a reasonable time.

44. Call the local utility company for a free evaluation of your home. They will come to your home and advise you energy-saving ideas. They will test for gas leaks. While on the phone be sure and ask for any free energy saving devices they offer. Also keep an eye on your bills for announcements of various saving ideas and tools they will offer for free or at reduces cost.

45. Install attic vents. Attic vents (those silvery things that spin on your roof) can save you up to 30 percent on cooling bills in the summer. If you have them or get them, be sure to close them in the winter to prevent unnecessary heat loss.

46. Keep your blinds closed during the day. This will not only wave money on cooling but will also reduce fading and deterioration caused by the sun on furniture, clothing, and carpeting.

47. Reduce your water heater setting to 120º. For each 10º you reduce your water heater you will save 6-10% of its cost. Most appliances will run just fine at 120º.

Taxes

Ah, yes. Everybody’s favorite subject. Tax laws change so frequently that it would be hard for specific information to remain current. Here are some general hints that will transfer a few dollars from Uncle Sam’s pocket to yours.

48. If you get a tax refund, redirect that money into an IRA. Tremendous tax advantage! If you receive a $1500 tax refund each year, you are loaning the government your money INTEREST FREE! Change your exemptions at your job so that they will withhold less taxes (about $100 a month – which will reduce your refund by $1200 to $300). Put that money into a tax deferred IRA. The deduction you realize will increase your refund back up to about $700. Magic!
* * * * * (Please see me for additional information: Call me at 619-670-1000 or Email me at Dennis@DennisVolz.com )

49. Start a home-based business. Some of the greatest benefits of running a business from your home are the tax advantages. But be careful! Although there are tremendous tax advantages, there are also a dozen ways to lose your shirt. Review the basic considerations of running any kind of home-based business: How to avoid stupid start-up costs; How to minimize an audit from the IRS; How to pay your children as employees; and How you can let your voice-mail become a 24 hour sales person for you. You can be cashin’ in while you’re snoozin’ out!
* * * * * (Please see me for additional information: Call me at 619-670-1000 or Email me at Dennis@DennisVolz.com )

50. Pay your children to help in your home-based business. Your children cam become employees and be paid money that you would be giving to them anyway – Now it’s just tax deductible money! Plus, if you get them an IRA to boot (there’s no age limitation on an IRA) the money they receive won’t be taxed. * * * * * (Please see me for additional information)

51. Take an aggressive posture on your tax return – When In Doubt, DEDUCT! Less than 2% of all tax returns get audited. Some parts of the tax law are gray at best. While I don’t encourage anyone to knowingly evade taxes they owe, people seem so unnecessarily intimidated by the IRS that they’re afraid to take the completely legitimate deductions for fear it will trigger an audit. I

Interest and Financial Charges

52. Pay off your credit cards. Credit card companies can rip you off for interest rates of 16 to 21 percent of your unpaid balance. That means that for every $1000 you carry on your balance, you pay $200 per year for that privilege (at 20 percent). Although credit cards are a convenience, they’re no bargain. If you pay off your balance every month instead of carrying an average of balance of $2500, you save $500 a year in interest charges! If you invest that $500 a year at just 10% interest, you will accumulate a mere $13,069.78 in 20 years.

53. Eliminate all but one credit card for emergencies and stop paying unnecessary annual fees. With rare exceptions, each credit card you have will carry with it an annual fee of from $20 to $300. With a little “shopping” you can get a card with no annual fee.

54. Pay cash for all purchases, even major purchases like your car. Follow this simple rule and you will get rich! Use the savings you realize in these ideas to start a MPSA (Major Purchase Savings Account). Save for refrigerators, washers, cars, home remodels, etc.

55. If have to take a loan, be sure to get a simple interest loan with no fees. You can pay hundreds of unnecessary dollars if you’re not careful. Most loans at the car dealership are not an especially good deal. You can get a much better deal through your credit union or, in this case, through your insurance agent . . . ME. * * * * * (Please see me for additional information)

56. Pay off your mortgage as quickly as possible. Choosing to extend your mortgage to the 30 year term (as preferred by the mortgage company) you can pay up to three times the purchase price of your home before the loan is paid off. Simply double your principle amount every month. Notice I didn’t say double your house payment, just the principle amount. On a $1200 house payment, $200 of it might be principle. Give your mortgage company a call and ask the easiest way to do this. Usually it’s simply just sending larger check each month.

57. Put most of the money you save in this program to retire other debts. Debt (a.k.a. Monthly Payments) is the killer of even the best income. You are strapped to the debt wagon and are controlled by it every month. Retire your debt and then prudently invest those monies in your future.

58. Avoid paying unnecessary fees to your bank every month. Check with your bank and see how you can configure your account to avoid ALL FEES. Don’t get trapped into, “Well, it’s only $10 a month.” They all add up! There may be a minimum balance requirement. Decide if you can meet that consistently. If all else fails, go shopping. There’s always some bank begging for your business with a year or so of free checking. There’s no marriage contract with your bank and there’s no magic staying with the same one for years and years.

59. Don’t bounce checks. Keep an accurate record of your spending. Bounced check fees can eat you alive. A client of mine was victim to an electronic deposit error by his employer. With only four returned items in his account, the fees totaled over $250! Fortunately the employer reimbursed my client, but the point is made – Bounced Checks Are Worse Than Bank Fees.

Sharing

Are all of your possessions in use all the time? Of course not! So what’s wrong with letting others use one of them when you aren’t using it? Begin to promote a sharing philosophy with your friends and neighbors. When you lose a little of the “mine mentality”, life will be cheaper and more fun. You can also barter goods and services.

60. Start a neighborhood tool and skill swap. (This works with your church, or civic group, or any group.) Make a list of tools and skills you have to offer and encourage your friends and neighbors to do the same. Distribute them among your group and see how often the help you need is as close as next door.

61. Swap services – Haircut for Health care. Or try baking for pruning, or oil change for sewing, etc. The more you know about your friends and neighbors, the more services you can exchange.

62. Start a babysitting co-op. Many parents have banded together to exchange babysitting services. It frees more of your time and money to do things that would normally cost you quite a pretty penny. How many times have you opted to stay home because the babysitter bill at the end of the night was just more than you could handle?

63. Borrow books and magazines from the library instead of buying them. I find that I rarely want to own the book or magazine, I just want to read it. And, with the exception of some great motivational, reference type books or my Bible, I can’t ever remember reading a book twice.

64. Share subscriptions to magazines or newspapers with a friend or neighbor. Chances are that someone you know shares your interest. One neighbor gets the morning paper, reads it in the morning before work and drops it on his neighbor’s porch who reads it after dinner.

Your Food and Shopping

65. Never shop when you’re hungry. Your hunger will override your good intentions every time.

66. Stick to a list prepared ahead of time. A little discipline will save you lots-a-bucks.

67. Learn to cook from scratch. Get out your cookbooks and be BRAVE! You will save a lot of money; you’ll eat better. If I can do it . . . anyone can!

68. Shop with cash. You will be a much more careful shopper knowing that if you’re over, you’re in trouble! J

69. Use coupons carefully and religiously! Carefully is important because often you will pay more using a coupon to buy a name brand than you would buying your regular generic item without one and is usually EXACTLY THE SAME STUFF! Religiously because you can cut 10%-15% off your grocery bill by using coupons every time.

One of the greatest ideas we’ve used in the past is to put our children in charge of clipping coupons and then managing them during the shopping at the grocery store. They have more time than I do to clip and will remember better than I do which coupons we have. Here’s the DEAL . . . the kids love it! Whatever we save at the register – they keep half of it. We end up saving more than if I did the coupons myself even after our children get their “commission!”

70. Don’t shop at convenience or specialty stores. You won’t find any bargains there! Avoid them.

71. Know your prices. Take a day and check out the stores in your area. Check the most standard items on your grocery list. You can’t recognize bargains if you’re not familiar with other prices.

72. Make milk and produce runs ONLY with a list. When you have to make a trip between you major shopping run, go with a list! Get in and get out.

73. Find a market that offers DOUBLE COUPON Value! This practice varies from time to time. Be on the lookout. Be sure it’s still a better deal with double coupons (usually it is because they don’t figure they’re going to run up against a coupon animal!) Sometimes you can even find a TRIPLE COUPON Deal!

74. Shop less frequently. You will be forced to make the food last longer and you will become much more creative. If you go to the market everyday, stretch it to every other day. Once a week? Shop for two weeks next time! You’ll waste less, use less, and spend a bunch less !

75. Make up menus seven to ten days ahead of time and base your meals on what’s on sale. You will save money because you’ll buy what’s cheap and you won’t overbuy on items that will go unused.

76. Be resourceful. If you run low (or out) of an item before your next shopping day, improvise with what’s on hand instead of running to the store. Remember that more frequent shopping trips will increase your spending. You’ll probably pick up several “other” items on that trip.

77. Know the “loss leaders” at your stores. Merchants use loss leaders to get people into their store. These are items that the merchant will sell at or below his cost to get you into the store knowing that “as long as you’re there” you’ll get other items you need as well. Beat him at this game. Find the loss leaders (they’re usually the items in the ads) and when you find something you can stock up on, raid the store for as much as they’ll let you buy.

Vacations

78. Relax closer to home. You might even enjoy just being around the house. Try using you house for a home base while you explore your local area. Adventures are made in the heart. Remember: If you need to “get away”, 3 miles and 300 miles are both away. Vacation is not any time to try to prove you’re making it financially.

79. Buy airline tickets well in advance. If you buy your tickets at least a month ahead of time, you can get a better deal. Also, be sure to take advantage of mid-week fares. If you fly during the week and stay over the weekend, you will avoid the higher weekend air fares.

80. Take a camping vacation. As U.S. citizens we each “own” 3 acres of land. There are beautiful parks, both state and federal, that you can visit for pennies a day. You might feel more relaxed at the end of a week full of listening to a babbling brook and the wind through the trees than you’ll ever feel racing from sight to sight so you’re sure to get your money’s worth on your vacation.

81. Avoid restaurant food as much as possible. Restaurant bills can put a tremendous dent in vacation funds. Eat in your room whenever possible. If traveling in your car, take an ice chest and cold cuts for sandwiches. Snack on fruit instead of prepared, expensive junk food.

Entertaining and Dating

The key to frugal entertaining and dating is to remember why you’re doing it – to enjoy the company of other people. If you really think about it, beyond a certain level of comfort, money doesn’t really make an encounter any more (or less) delightful.

82. Have potlucks rather then dinner parties. Potlucks are the ultimate in ease and relaxation. I personally love potlucks. There’s more variety of food, it usually tastes better, and the atmosphere is just so relaxed that I can focus on the people rather than the event. Often your guests only want to take home their empty dishes, leaving you lots of leftovers that can feed you for several days!

83. When you do invite friends to share a meal with you, eat what you would normally have prepared. Mom’s casserole might be old hat to you, but quite a treat for your guests. Entertaining in your home doesn’t have to cost any more than a couple of extra servings.

84. Invite friends to view a movie or documentary with you. This can stimulate some very interesting discussions. You will get to know your friends on a deeper level and it’s a whole lot cheaper than going to the movies at $10 a pop.

85. Have a progressive dinner party. This will work well in a neighborhood or a small town but can be adapted to larger cities and wide open spaces. Start at one person’s home with appetizers, go to the next person’s house for soup, then another for salad. Keep a theme through the evening (or afternoon). It’s like a potluck but no one person gets all the work or clean up.

86. If you just can’t wait for a movie to come out on video, go to inexpensive matinees. The afternoon prices are about half of the evening prices, the crowd just isn’t there, and when the movie is over, you’ve still got lots of the day to finish chores, errands, or to take an afternoon nap.

87. If you like to attend movies or play regularly, check into ushering. Some local theatres will trade you an afternoon of ushering for several free movie passes. It’s a better deal for the owner and you get movies for free. My wife and I ushered at a local playhouse. We’d show the people their seats and sell refreshments during intermission. In exchange we watched the play for free.

88. Instead of dating expensively, go for quality of encounter. What the heck does that mean? Take an evening at the local coffee house and then on to the bookstore to browse and discuss. Drive to a local lake or beach and take a walk. Watch planes land at the local airport. Take your favorite game and some refreshments to a local park. Eat at home and go out for just dessert and coffee. Remember: It’s the encounter and quality time together that’s the reason for the date.

If you have young children, work a babysitting exchange with a friend or neighbor.

Insurance

Insurance has been one of the necessary evils of life for over 100 years. In this day of higher taxes, rising food prices and soaring housing costs, it is possible for you to get a handle on your insurance costs. Sometimes insurance can be complex and confusing but here’s just a few ideas that may help.
* * * * * (Please see me for additional information on all the insurance items: Call me at 619-670-1000 or Email me at Dennis@DennisVolz.com )

89. Drop your collision coverage. There comes a time in the life of almost every car when its value does not warrant the cost of collision coverage any longer. You will need this coverage for your car when you are in an accident that is your fault, or if your car is the victim of a hit and run accident. Ask your agent how to decide if this is right for you.

90. Drop your comprehensive coverage. Use the same decision process to decide if it’s the right time for you to do this.

91. Raise your deductibles. If deleting collision and comprehensive coverage puts you at greater risk than you are willing to assume at this time, you may want to consider increasing your deductibles as a compromise. As you raise your deductibles your insurance company will lower your premium. You get this reduction for two reasons: First, when you have a loss, the insurance company will pay you less money when you have a higher deductible; second, with a higher deductible, you will have fewer claims presented to your insurance company.

92. Evaluate your medical coverage. Medical Payments coverage is designed to pay for injuries sustained by you and anyone else in your car. Particulars of this coverage vary so the details are best discussed with your agent. But, here's the basic idea. If you have good medical insurance through your work or a private plan, it may be wise to minimize your medical payment coverage on your auto insurance. As far as the coverage applies to you, there might be a lot of overlapping coverage. It is probably not a good idea to drop this coverage completely as you are never sure just what kind of health insurance others that ride in your car may have.

93. Double check your mileage. Most companies consider the mileage you drive quite heavily when computing your premium. Be sure to learn from your agent what the categories are and just where the markers are between short and long mileage. Become an expert in this area. It can put dollars in your pocket. Definitions may vary greatly between companies.

94. Double check your ticket and accident record. Insurance companies handle thousands of policies on a daily basis. They make mistakes on a daily basis! You may be being charged for tickets and accidents that are not yours. Check with your agent to see exactly what items show on your record that may be increasing your premium. If you are not sure of your record, go to local motor vehicle office and ask for a print-out of your record and compare it with the insurance company records. Removing these errors can save you 30% and more on your premium.

95. Get all the available discounts. Discounts offered by insurance companies are as varied as the cars they insure. Cross examine your agent to be sure that you are getting every possible savings opportunity that you can! Ask for a list. Check for the availability of the following discounts: Non-Smoker; Accident-Free; Citation-Free; Longevity with the company; Passive Restraint Devices (such as automatic seat belts and air bags); Car Alarm; Over 21; Over 50; Over 65; Driving Safety Course Completion.

Marketing conditions dictate that insurance companies constantly update their discount programs. Be watchful in your renewal notices for notification of new ways to save your premium dollars.

96. Use care in rating your youthful driver. Certainly one of the most expensive items for young people today is the cost of auto insurance. Because the inexperienced operators do cause a higher percentage of claim costs, they get to pay higher percentage of the premiums. Take heart! There are ways to effectively minimize the impact on your checkbook.

By far, the greatest savings on the insurance bill is wrapped up in the kind of car that the youthful operator drives. Almost 50% of your premium is shelled out to protect the more expensive car that is too valuable to withhold comprehensive and collision coverage. Consider buying a car that is within your "write-off" limit as defined in your Financial Picture. Selling this idea to your 16 year-old may be much more of a challenge than just paying the higher premium. But, it will provide substantial premium savings.

Additional tricks for the youthful driver include the Good Student Discount. The usual threshold is a B-average or better but some companies will accept statements from the school that the student is in the upper 20% of the class or similar alternative requirements. Some parents have made the B-average the requirement for the young person to drive. No B's -- No Keys! Check out all of the rules of your company involving the rating of youthful operators.

97. Check the amount of insurance you have on your home or renters insurance. (You should have one of them!) You may be over insuring your possessions or your home. If you are you are wasting your money and making the insurance company very happy. On the other hand, it’s foolish to spend money on insurance that’s not enough. When you need it, it’s not going to do the job you need. So don’t over-insure, don’t under-insure.

98. Consider not insuring your heirlooms, jewelry, and antiques. Would you really replace them? Sure it would be nice to get the settlement from the insurance company, but insurance is designed to help you recover from an unrecoverable loss.

99. Increase your deductible on your homeowners/renters policy. You can save between $50 and $150 a year by increasing your deductible. The average homeowner has a loss every 10 years. Learn to handle the little losses yourself and save the insurance for the big ones that you can’t handle yourself. The premium you save just might be your own.

100. Review your life insurance at least once a year. Things change! Again the goal is to be properly insured, not too much, but enough. The decision for term or whole life insurance is best solved individually. If you’re disciplined to be investing elsewhere in your future (IRA’s, Mutual Funds, etc.) then term is probably best for you. If it’s difficult for you to discipline yourself for that necessity, whole life might be the only way you’ll secure your financial future.

There are simple formulas to determine exactly how much life insurance you need. I have several.
* * * * * (Please see me for additional information: Call me at 619-670-1000 or Email me at Dennis@DennisVolz.com )

101. Don’t buy credit life or credit disability insurance with a loan. Instead get separate life and disability policies that will do the job for you regardless of the loan. Loans will come and go but your insurance needs are fairly constant. You’ll get more bang for your buck with a regular insurance policy rather than the specific credit stuff.

Please Share Your Ideas With Us!

We value your ideas and input. Many of the ideas you’ve read come from our clients. Who knows, you could be part of:

101 Ways to Save Money And Live Better – The Sequel

Please visit us at www.DennisVolz.com and…
Please send us your ideas Dennis@DennisVolz.com -- You can call us at 619-670-1000, FAX us at 619-670-1121, or drop us a note in the mail at: PO BOX 1961, Spring Valley, CA 91979.

If we use your idea, we’ll get you a FREE copy of . . . The Sequel

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

ALL RIGHTS RESERVED. Copyright (c) 2006 – SmarterInsurance Inc.-- No part of this document may be reproduced in any form, or by any means, without prior written permission of the copyright owner. LEGAL NOTICES: While attempts have been made to verify the information provided, SmarterInsurance Inc will not assume any responsibility for errors, inaccuracies, or omissions. Since this document presents general discussions, always consult a qualified professional regarding your specific tax, legal, financial, and personal circumstances. (911.21740)

How Much Homeowners Insurance Do You REALLY Need?

2008-02-20T10:25:00.000-08:00

Your home is likely your single largest investment. Protecting it properly is critical to your financial security. If you’ve only been guessing until now, then guess no longer.

Insurance for your home need not be a shot in the dark. There are simple ways to determine EXACTLY how much insurance you should have.

I know that not all insurance is "created equal".

If you’re not properly insuring your home you could be either wasting needless premium money on excess coverage or you could be setting yourself up for a severely UNDERINSURED loss that could cost you tens of THOUSANDS of dollars or even MORE!

I’ve been around the insurance business for a long time and I’ve seen it all.

I’ve seen people standing next to smoldering ashes that just hours before was their home and everything they own.
I’ve comforted those who have just received a 50-page lawsuit because their sprinkler flooded their neighbor’s yard or their dog bit a friend’s child.
I’ve reassured clients that they have coverage after their toilet flooded their house over an entire 3-day weekend.
I’ve seen clean-up bills for just water damage in excess of $100,000.

And I’ve been able to pay all these losses for these very frightened people because we made sure that their insurance was right for them – That it would be there to “write the check” should these shattering losses happen to them!

Homeowners insurance, when purchased properly, can give you the security of continuing life as you know it in the event of a catastrophic casualty or liability loss.

Homeowners insurance is POWERFUL and very comprehensive in the scope of coverage it offers.

Here’s a little overview….

It protects your home
It protects your stuff at home
It protects your stuff on vacation
It protects your stuff in the USA
It protects stuff you may have in a storage facility
It protects your stuff all over the world !
Yes, that’s right… you lose your stuff ANYWHERE on the planet…you’re covered just as you are in your own backyard.
It protects your CHECKS & CREDIT CARDS if they’re stolen
It gives you Liability protection....that’s when you get sued
It gives you protection for stuff you’d never imagine.
Here’s just a few examples

Money, Bank Notes, Coins (including collections) up to $200

Property used or intended to be used in business

On premises up to $1,000

Off premises up to $250

Watercraft and equipment up to $1,000

Securities, Checks, Traveler’s Checks up to $1,000

Trailers (not used with watercraft) up to $1,000· Stamps, trading cards, comic books (including collections) up to $2,500

Theft loss of:

Jewelry and Furs up to $1,000

Firearms up to $2,500

Silverware and Goldware up to $2,500

Rugs, tapestry, wall hangings

Per Item up to $5,000

Aggregate up to $10,000

Home Computers up to $5,000

WOW, you say!
That’s quite a list.
Yes it is…and there’s MORE…
Yes, there’s a LOT more…
But before we get to that … the WHAT and HOW TO BUY Homeowners Insurance,
let’s talk about the WHY!!
Why would anyone need or want Homeowners Insurance?

Well, in most cases you’re required to have it by your lender. Now you could get just about ay old insurance company to insure your home to satisfy your lender. But…

Here’s a question for you…
WHY would you want to trust your biggest investment to
just any old insurance company ?
And hopefully your answers is…
“I don’t,”

You’re sitting outside on a cool October night. You have a warm, wool blanket wrapped around you and around you is the sound of people working, cleaning, the hum of a diesel engine. The blanket was given to you by a firefighter, the people working are firefighters , and the hum of the diesel engine is the fire truck that’s just dumped 30,000 gallons of water on your, now black and flattened residence.

You’re just a little freaked out but you’re ok. So is everyone else who was in the house with you. All that is ok, but EVERYTHING YOU OWN is toasted to a crispy black residue that’s still smoldering from the heat of the fire. It’s all gone: your home, your garage, your favorite chair, your entire wardrobe, big-screen television AND THE REMOTE (now I’m starting to sweat), stereo system, all the dishes in your kitchen, furniture, bed linins, towels, silverware, blender, your Xbox, your digital camera and last, but not least…. your treasured iPod

You see, here’s the problem with all those ASSETS…. You probably saved over a long periof of time to purchase your house. You bought your stuff just a little at a time. You know, a CD here, a blender there, a couple of jackets somewhere else. Then, before you know it, it’s all there cluttering up your drawers, your closet and every other space in your place.
Would you buy scuba or skydiving equipment from “Jimmy’s Discount Dangerous Sport Second-Hand Equipment Store?” Of course you wouldn’t. You wouldn’t trust your life to used, junk equipment.

You also wouldn’t buy it without thoroughly understanding how it works and making sure it would work to your specifications and your individual needs.
Properly structured Homeowners Insurance provides protection for your house, your personal property,
AND Protection in case of a liability lawsuit.

“WHAT?!?!” you say. “Lawsuit ! !”
Yep, lawsuit. Could it happen to you? The answer is…
Of course it could ! !

But we’ll talk about that in a minute. So….

Let’s talk about the nitty-gritty of Homeowners Insurance. There’s certainly not room here in this report to cover all of it, but I promise, that when you’re done you’ll know more about homeowners insurance than 95% of the planet. Having a good handle on your insurance decisions is the only way to best prevent problems and surprises at claim time.
There’s three main parts to your homeowners coverage: 1. Coverage for the house 2. Coverage for your stuff 3. Liability coverage

Let’s take these on one at a time.

COVERAGE FOR YOUR HOUSE (the structure)

This is probably the least understood of the three. And the biggest question is HOW MUCH? How much coverage to I REALLY NEED to properly and reasonably cover my home?

It’s really a simple answer. This is probably worth the entire time you’d spend reading 10 of these POSTS.

You need just enough coverage to rebuild your house.

Here’s what you DON’T NEED! You DON’T NEED to insure it for its market value (what you could sell it for). You also DON’T NEED to insure it up to the LOAN AMOUNT. Both of these numbers have NOTHING TO DO with the cost to rebuild your house.

If you determine that you need $200,000 to rebuild your house and your lender tells you that you have to insure it for $300,000 because that’s the amount of your loan. You tell them that you know different! If you can’t get this through their thick heads, call me. I’ll take care of it for you. There’s a law I can cite to them that will cool their jets in a hurry. (And I’ve done it many times in my 3 decades of helping my policyholders)
The cost of lumber can fluctuate wildly depending on the season.
So how much do I need to rebuild my house?

That’s the magic question, for sure! The answer is that you calculate it by using cost per square foot. You’ll need to know how many square feet of living space you have. Generally, an appropriately sized garage is included in the cost per square foot. For example, if you live in a 800-1000 square foot house, you’ll likely have a 1 car garage. If you live in a 4000 square foot house, you’ll usually have a 3 or maybe even a 4 car garage.

Ideally you’d like to get a licensed contractor to your house to estimate that for you. Get one who is currently building houses in your area. Believe me, he knows the cost.

Remember though, EVERY HOUSE IS DIFFERENT!
I have several contractors insured and I keep up with them on the current cost of construction in my area. I hesitate to just give you a number here as it changes all the time and you need to tweak it a little based on the configuration of your house. For example, if your house is a track house, (one that was built among a bunch of others that are about the same) your cost of construction will probably be less than if you lived in a custom house. You have to ask questions like these:

Do I have carpet or marble tile?
Do I have a central vacuum system?
Do I have a composition shingle roof or concrete tile?
Is my kitchen standard or custom?
Do I have central air conditioning, ceiling fans, custom wood stair rails, or granite counter tops in the kitchen?

With just a quick phone call to my office, we’ll be happy to help you determine your cost per square foot.

Another common point of confusion is that people think they need to insure their house for it’s market value. NOT SO! Your house is (almost) always going to be worth more than it takes to build it. Remember there’s value in your land, neighborhood, schools, view, etc. All that is unaffected by the loss of your home. And remember this….

NO MATTER HOW MUCH COVERAGE YOU PUT ON YOUR HOUSE, THE INSURANCE COMPANY WILL ONLY PAY YOU WHAT IT COSTS TO REBUILD IT.

So here’s how a typical house can look. Remember there’s 3 key numbers associated with your house: Market Value, Amount of your Mortgage, and Rebuilding Cost.

If your 2500 square foot home has a market value of $650,000 and your local building costs are $200/square foot, your rebuilding cost would be $500,000 (2500 x 200). Your mortgage could be $120,000, $400,000 or $0. Regardless of the loan amount or the market value, you’d want to have approximately $500,000 of insurance on that house. There’s some tricky thinking here that you need to consider.
The cost of construction isn’t static, it’s always changing. Lumber cost changes almost daily, as an area builds more and less through changes in economy, the cost of subcontractors will fluctuate. At the end of this report you’ll see a special feature that my office offers you to help you be sure that you don’t get caught short as construction costs rise and fall. Look for this picture. -->

Usually your house has what’s called ALL RISK coverage. That means that, except for a few exclusions, anything that happens to your house is covered. If there’s a loss to your house, the adjuster looks at the list of exclusions and if what happened isn’t there… it’s probably going to be covered. Remember that all insurance companies are different and it’s the policy contract that decides, not what I say here!

Some common exclusions include flood, earthquake, riot, freezing of pipes in an unoccupied, vacant, or under-construction building, vandalism and malicious mischief if the building has been vacant for more than 30 days, normal wear and tear, intentional damage, damage from animals, birds, or fish, and war. These are just a sampling of exclusions. See your policy for your actual exclusions.

Equally as important as the coverage for your home is your coverage for your stuff – Your Personal Property.

COVERAGE FOR YOUR STUFF

If your stuff is stolen from your car,
IT’S COVERED under your Homeowners Insurance!!!
There might be damage to your car though. THAT’S covered under your auto insurance. I’m sure you have car insurance ! ! ! (see 10 Ways to Beat the High Cost of Auto Insurance (Part 1) & (Part 2) )

This is the coverage that insures your personal property: Your sofa, dishes, clothes, television, stereo, art work, silver, china, watches, jewelry, blender and your socks. Generally, the amount of coverage the insurance company gives you for this is a percentage of the amount you have on the house. Usually it’s 75%. If you carry $200,000 on your home, then you’ll have an additional $150,000 for coverage on your personal property. Again, see your policy for your exact limits.

Most of the time, this is enough. Occasionally you’ll need more. You can’t reduce it, but there’s usually a provision to increase the coverage if you need to.

Here’s an important distinction on the actual coverages for your personal property as compared to the coverage for your house. You’ll remember that your house is covered for all losses EXCEPT for those specifically excluded. Your personal property is only covered for a specific list of losses. Here’s a typical list:

Fire or lightning
Weight of ice, snow or sleet
Explosion
Aircraft & vehicles
Smoke
Sudden and accidental tearing or bulging of heating or cooling systems
Windstorm or hail
Theft
Riot or civil commotion
Falling objects
Vandalism or malicious mischief
Sudden and accidental water discharge from plumbing or appliances
Freezing of plumbing systems

****Once again it’s important to check your own policy language for the specific coverages for your personal property. If you’re not sure, just give us a call. 619-670-1000

Now before we talk a little about the most important portion of your homeowners policy -- Your Liability Coverage, let me mention one VERY COMMON MISCONCEPTION.

Homeowners insurance DOES NOT cover the mortgage if one of the owners should die. You’ll need MORTGAGE INSURANCE to cover that.

Mortgage Insurance is simply life insurance that’s designed to pay off the mortgage at the death of one of the owners.

Life insurance can be somewhat overwhelming to purchase. You’re so afraid of
making a mistake.
It’s easy to incorporate your mortgage insurance TOGETHER
with your regular Life Insurance and SAVE TONS OF MONEY in the process.
Learn how with
7 Things You Need To Know BEFORE You Buy Life Insurance

If you own a home and anyone depends on your income to keep the home then mortgage insurance is a must for you! You have far too much invested in your home to allow those you love and provide for to risk having to lose the house if one of the bread winners dies.

It’s simple and easy and probably NOT AS EXPENSIVE AS YOU MIGHT THINK.

You can usually get mortgage insurance for your home for about the price of a DVD a month!

Think about it. Safety, security and peace of mind for about the cost of a DVD a month!

Liability Coverage

Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you! There’s ALSO coverage in your HOMEOWNERS INSURANCE for THAT !

Liability is the portion of your homeowners insurance that protects your home, your assets, your retirement savings and your future income!

Someone slips and falls in your place,
Breaks their leg, or cuts their hand.
(Bummer if it’s a Plastic Surgeon)
Your policy will pay whatever you’re legally liable to pay. (up to the limit of the policy, of course) That’s why at least a $1,000,000 limit is important there (especially if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $7/month, you get TEN TIMES the coverage -- Almost a crime not to take that.

If you own your home you should probably consider a Liability Umbrella. It gives you $1,000,000 coverage on your house and all your personal vehicles. You have just too much equity in your house and too much of your net worth tied up there to risk it by saving a few dollars a month.

Let me tell you a story….

Just this year a policyholder called me and told me that they were being sued because their son’s girlfriend accidentally let their dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor’s dog. The homeowner was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and… well, you know the drill. Fortunately the homeowner had not only their homeowners insurance but also a Liability Umbrella standing between this crazy neighbor and everything they owned. Without that, this could have been their problem…

They could have been paying off this “little problem” for years. They could have risked everything they own in addition to their FUTURE EARNINGS by not having the foresight to get HOMEOWNERS INSURANCE and a LIABILITY UMBRELLA policy.

You can insure your home, your personal property and your liability exposure in one simple policy.

BUT WAIT ! ! ! ! THERE’S EVEN MORE ! ! !
Homeowners insurance also includes Medical Payment coverage. That pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn’t pay for medical expenses for you or members of your family that live with you.

BUT WAIT ! ! ! ! THERE’S MORE!!!!!!
You also get what’s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we’ll pay the cost to put you up someplace else while your place is being repaired. I’ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS! ! Hopefully you won’t be out that long,
but it’s THERE IF YOU NEED IT ! ! ! !

BUT WAIT ! ! ! ! THERE’S SOME MORE!!!!!!
You know how things just get more expensive every year. We’ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew you policy each year, it will be for the newer IMPROVED amount of coverage.

BUT WAIT ! ! ! ! THERE’S STILL MORE!!!!!! (starting to sound like one of those Ginsu Knife Commercials..?)
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they’re out there spending YOUR MONEY, you’ll have coverage for that up to $1000.
“WOW”, you say!
And all that’s included in the Homeowners Insurance we provide in our office.

Hey, Let’s talk about Deductibles for a second….
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we’d pay the rest.Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium. ... you know what, just ask us when you're in the office and we'll show you how simple it is to calculate.

SO what’s the best way to buy HOMEOWNERS INSURANCE ?

RULE #1 – Don’t over-insure and don’t under-insure. Get the right amount of coverage. Yes, you’ll have to estimate how much stuff you have.

We have convenient calculators in our office to estimate this for you.

RULE #2 – Take the biggest deductible you can afford. (within reason). Increasing your deductible from just $500 to $1000 will usually save you about $75 per year. Let us help you do the math to see how long it takes you to absorb the difference in the two deductibles.

We can help you walk thru those numbers and find the best blend of deductible and price... Takes about 3 minutes.

RULE #3 – Get at least $500,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.

You need someone who explains and helps you with this. It’s just what we do...

RULE #4 – Only get policies with REPLACEMENT COST coverage for your contents. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we’ll pay you what it costs to get a brand new one rather than what your old one was worth.

RULE #5 – Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian’s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.

We automatically add this one too. Unless you don’t want it...

RULE #6 – Don’t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There’s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don’t forget EARTHQUAKE coverage.

We’ll walk you thru a checklist of all those things just to make sure we don’t forget anything. You may not need any of them, but we just want to be sure.

RULE #7 – Only get a homeowners policy with GUARANTEED EXTRA REPLACEMENT COST (GERC) coverage for your home. (the structure!) This is SO IMPORTANT. We offer policies that will pay you up to an EXTRA 20% above the actual amount of coverage. For example, let’s say you’ve lost your 2500 square foot home to a fire and it was insured for $200 a foot -- $250,000. But there’s a recent spike in the cost of materials and the real cost comes to $285,000. OUCH! Looks like you’re going to have to dig into your pocket for $35,000! Not so with the policies we write in our office. Our company offers you, AT NO EXTRA CHARGE the GUARANTEED EXTRA REPLACEMENT COVERAGE at an additional 20%. Your $250,000 will actually pay you up to $300,000 to rebuild your home.

With GERC, your policy for $250,000 will actually pay you up to $300,000 to rebuild you house. And OH BY THE WAY... This is included automatically at no additional premium on ALL of our homeowners policies!

And don’t forget EARTHQUAKE coverage. I know there’s a lot to think about. So let us help you remember all of it. One step at a time.

This can be so simple and easy to do.

We do all the work for you and in less than 30 minutes, you’ll have protected your home, your personal property, your current assets and your future earnings.

Why somebody wouldn’t buy HOMEOWNERS INSURANCE this way is simply beyond me.
BUT LET ME MAKE A LITTLE EASIER FOR YOU…

In our agency we offer you 5 different ways to pay for this. You have your choice of Annual, Quarterly, Semi-annual, monthly and SPECIAL MONTHLY…
“So what’s so special about SPECIAL MONTHLY,” you might ask.
It’s special cuz it’s just so insanely easy.

We set it up for you and your monthly payment comes right out of your checking account: Same day; Every month.

(of course of your insurance is already part of your house payment, we’ll set things up so that continues just as it’s always been for you)

So, here’s what you get…

Coverage for your home: The right amount so you sleep well.
GUARANTEED EXTRA REPLACEMENT COST for your home. AN ADDITIONAL 20%
Coverage for your stuff: TV, stereo, blender, dishes, clothes, etc.
This coverage at REPLACEMENT COST (as I explained above)
Liability Protection. (assets AND your future earnings)
A place to live while we put your place back together
We’ll walk you thru the whole process (probably will take less than 30 minutes)
Confidence that you’re buying the insurance you need: NOTHING MORE, NOTHING LESS

It Just doesn’t get any better -
OR EASIER - than that…

You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

One Picture is Worth a THOU$AND DOLLAR$

2008-02-17T21:57:00.000-08:00

Yes, I know a picture is worth a thousand words, but it could also be worth a thousand (or THOUSANDS OF) dollars!

I can't tell you the number of times in my 30+ year career in the insurance business that I've listened to a distraught policyholder after a loss struggle to remember everything that was stolen or lost in a fire. Many times I'll get a call many months after the loss because the client just discovered that, "They got my Grandma's silver too. We didn't realize it until we were setting the table for Thanksgiving dinner."

The whole process wouldn't probably take you more than an hour. Just walk around your house and take pictures of everything you own. Well, you don't need to document your underwear drawer, but take pictures of almost everything else. Here's a short list to get you started...

(remember the purpose of the pictures is twofold:
a. To help you remember every thing you have.
b. To document (i.e. prove) to the insurance company) that you really did own all this stuff!)

So here we go...

Take a panoramic shot of every room in the house. Some rooms may need pictures from several different angles to get it all in.
Then open your cabinets in your kitchen and get pictures of all your dishes, cookware, etc.
Take a look in all the drawers and take pictures of any unique items you may have.
Get a black cloth or towel and spread it out on your floor or bed. Lay out any special or expensive items such as Jewelry, Silver, furs, CD collections, collectables, baseball cards, plates, dolls, etc for better close ups.
While you're at it, take pictures in the garage: Tools, cars, contents of your cars, file cabinets, lawn mowers, etc.
Take a picture of your back yard patio furniture, tool shed, etc.
Open your closets and take pictures of your clothing. Reminds you of the amount and some of the pieces.
Take close-ups of all the pictures, art and decorative items hanging on your walls.
Take pictures of your cars: Inside and Out. All the way around

I think you get the idea.

Now.... here's the important part..... ! ! ! !

If these are digital pictures, put them onto your computer and make a couple copies onto some CD's. Take one to your office and give one to a friend or mail one to your Uncle in Toledo, but GET IT OUT OF YOUR HOUSE. Last thing you want is to remember that all your "pictures" burned up in the fire... :)

Make a reminder to at least consider updating the pictures once a year AND whenever you make a major purchase like stove, refrigerator, art pieces, jewelry, etc.

This will make your life SO MUCH EASIER if you ever have a loss.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

The Miracle of Renters Insurance

2008-02-17T21:13:00.000-08:00

Here's the secret -- Your Landlord's Insurance DOES NOT cover ANY of your stuff. Not your TV, clothes, stereo, iPod, Laptop, dishes, furniture, NOTHING! Please read on and see how inexpensively you can protect your valuable possessions for just pennies a day.

OK ! I know you’re thinking ‘What could possibly be so MIRACULOUS about Renters Insurance?

Well…. Here’s the inside scoop !

Here’s a little overview….
(All policies are slightly different. These are examples of what a typical policy might have.)

It protects your stuff at home
It protects your stuff on vacation
It protects your stuff in the USA
It protects stuff you may have in a storage facility
It protects your stuff all over the world !
Yes, that’s right… you lose your stuff ANYWHERE on the planet…you’re covered just as you are in your own backyard.
It protects your CHECKS & CREDIT CARDS if they’re stolen
It gives you Liability protection....that’s when you get sued
It gives you protection for stuff you’d never imagine. Here’s just a few examples
For example:
Money, Bank Notes, Coins (including collections) up to $200
Property used or intended to be used in business
On premises up to $1,000
Off premises up to $250
Watercraft and equipment - up to $1,000
Securities, Checks, Traveler’s Checks - up to $1,000
Trailers (not used with watercraft) - up to $1,000
Stamps, trading cards, comic books (including collections) up to $2,500
Theft loss of:
Jewelry and Furs - up to $1,000
Firearms - up to $2,500
Silverware and Goldware - up to $2,500
Rugs, tapestry, wall hangings
Per Item - up to $5,000
Aggregate - up to $10,000
Home Computers - up to $5,000

WOW, you say!
That’s quite a list.
Yes it is…and there’s MORE…Yes, there’s a LOT more…
But before we get to that … the WHAT and HOW TO BUY Renters Insurance,
let’s talk about the WHY!!
Why would anyone need renters insurance….

The answer is simply this…
Because you’ve got LOTS OF STUFF ! !

“No I don’t,” you say…

Well, imagine, JUST FOR SECOND, if you would please…..

You’re sitting outside on a cool October night. You have a warm wool blanket wrapped around you and around you is the sound of people working, cleaning, the hum of a diesel engine. The blanket was given to you by a firefighter, the people working are firefighters , and the hum of the diesel engine is the fire truck that’s just dumped 30,000 gallons of water on your, now black and flattened residence.

You’re just a little freaked out but you’re ok. So is everyone else who was in the house with you. All that is ok, but EVERYTHING YOU OWN is toasted to a crispy black residue that’s still smoldering from the heat of the fire. It’s all gone: your entire wardrobe, TV and DVD player, stereo system, all the dishes in your kitchen, furniture, bed linins, towels, silverware, blender, your Xbox, your digital camera and last, but not least…. your treasured iPod.

Here’s a typical list of the average single-person household. If there’s 2 or 3 or more of you, it’s even higher

Personal Property Replacement Value

Furniture $ 8,907
TV, VCR, Stereo, Tapes, and CDs $1,777
Home Computer $1,647
Microwave $151
Other Appliances $240
Clothing $3,700
Paintings, Prints, Photos $792
Glassware, China, and Silverware $612
Sports Equipment $600
Cameras and Photographer’s Equipment $795
Books $704
Jewelry $1,023
All Other Property $4,000

TOTAL PERSONAL PROPERTY $24,948

You see, here’s the problem with all that STUFF…. You bought it just a little at a time. You know, a CD here, a blender there, a couple of jackets somewhere else. Then, before you know it, it’s all there cluttering up your drawers, your closet and every other space in your place.
I know…You’re probably thinking that RENTERS INSURANCE is really expensive. Well here are the facts….

For just pocket change a day, RENTERS
INSURANCE can provide affordable basic
protection for your personal property,
AND
in case of a liability lawsuit.

“WHAT?!?!” you say. “Lawsuit ! !”
Yep, lawsuit. Could it happen to you? The answer is…

Of Course It Could ! !
But we’ll talk about that in a minute.

So…. For just about the cost of a DVD a month, you get protection for
ALL YOUR STUFF.

Protection for all your stuff ANYWHERE IN THE KNOWN UNIVERSE. Doesn’t matter if you’re in the good old US of A, Mexico, China or Australia…

If your stuff is stolen from your car,
IT’S COVERED!!!
There might be damage to your car though. THAT’S covered under your auto insurance. I’m sure you have car insurance !

Here’s all the kinds of things that your stuff could be covered for…

Fire or lightning
Weight of ice, snow or sleet
Explosion
Aircraft & vehicles
Smoke
Sudden and accidental tearing or bulging of heating or cooling systems
Windstorm or hail
Theft
Riot or civil commotion
Falling objects
Vandalism or malicious mischief
Sudden and accidental water discharge from plumbing or appliances
Freezing of plumbing systems

So you can see that there’s coverage for many different circumstances. Realistically, the most likely ones you’ll need in your lifetime are FIRE, THEFT, SMOKE DAMAGE and maybe VANDALISM.

So for the price of a DVD A month you get all that…

And just like the TV commercials tell you….
BUT WAIT ! ! ! ! THERE’S MORE!!!!!!!! (this WILL begin to sound like a Ginsu Knife Commercial!!!)

Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you and there’s ALSO coverage in your RENTERS INSURANCE for THAT !

Just this year a policyholder called me and told me that the tenant in their rental property was being sued because his girlfriend accidentally let his dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor’s dog. The renter was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and… well, you know the drill. And yep, you guessed it… The tenant had NO RENTERS INSURANCE. And the LANDLORDS INSURANCE does not cover the tenant’s liability!!!! Here’s their problem…
The tenant will be paying off this “little problem” for years. He’s put both his current AND HIS FUTURE EARNINGS at risk by not having the foresight to get a little RENTERS INSURANCE policy.

For just pocket change a day, RENTERS INSURANCE can provide affordable basic protection for your personal property,
AND in case of a liability lawsuit.

Someone slips and falls in your place, breaks their leg, or cuts their hand.
(bummer if it’s a Plastic Surgeon)
Your policy will pay whatever you’re legally liable to pay. (up to the limit of the policy, of course) That’s why at least a $300,000 limit is important there (more if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $2/month, you get TRIPLE the coverage. Almost a crime not to take that.

BUT WAIT ! ! ! ! THERE’S EVEN MORE ! ! !
Medical Payment also pays for…. YOU GOT IT…. It pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn’t pay for medical expenses for you or members of your family that live with you.

BUT WAIT ! ! ! ! THERE’S MORE!!!!!!
You also get what’s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we’ll pay the cost to put you up someplace else while your place is being repaired. I’ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS ! ! Hopefully you won’t be out that long, but it’s THERE IF YOU NEED IT ! ! ! !

BUT WAIT ! ! ! ! THERE’S SOME MORE!!!!!!! (see, I told you....)
You know how things just get more expensive every year. We’ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew your policy each year, it will be for the newer IMPROVED amount of coverage.

BUT WAIT ! ! ! ! THERE’S STILL MORE!!!!!!!!
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they’re out there spending YOUR MONEY, you’ll have coverage for that up to $1000.

“WOW”, you say!
And all for about the price of a DVD a month.
Hey, Let’s talk about Deductibles for a second….
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.
For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we’d pay the rest.
Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium.

SO what’s the best way to buy this Miraculous RENTERS INSURANCE???

RULE #1 – Don’t over-insure and don’t under-insure. Get the right amount of coverage. Yes, you’ll have to estimate how much stuff you have.

RULE #2 – Take the biggest deductible you can afford. (within reason). What does THAT mean????? Well, don’t increase your deductible from say $500 to $1000 if is only saves you $13/year.

RULE #3 – Get at least $300,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.

RULE #4 – Only get policies with REPLACEMENT COST coverage. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we’ll pay you what it costs to get a brand new one rather than what your old one was worth.
Looks like this. Someone steals your 8 year old TV set that’s worth $75 and a new one is $350, we’ll pay you based on the $350 rather than the $75! VERY COOL!

RULE #5 – Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian’s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.

RULE #6 – Don’t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There’s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don’t forget EARTHQUAKE coverage.
We’ll walk you thru a checklist of all those things just to make sure we don’t forget anything. You may not need any of them, but we just want to be sure.

This is so simple and easy to do.
We do all the work for you and in less than 30 minutes, you’ll have protected your stuff, your current assets and your future earnings.

Why somebody wouldn’t have RENTERS INSURANCE is simply beyond me.

So, here’s what you get…

Coverage for your stuff: TV, stereo, blender, dishes, clothes, etc.
Coverage at REPLACEMENT COST (as I explained above)
Liability Protection. (assets AND your future earnings)
A place to live while we put your place back together
We’ll walk you thru the whole process (probably will take less than 30 minutes)
Confidence that you're buying the insuance you need: NOTHING MORE, NOTHING LESS.

Yep, you guessed it…
All for about the price of a DVD A month…

No insurance product offers you more BANG FOR YOUR BUCK than simple, but oh so powerful RENTERS INSURANCE….

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
ALL RIGHTS RESERVED. Copyright (c) 2006 – SmarterInsurance.org -- No part of this document may be reproduced in any form, or by any means, without prior written permission of the copyright owner. LEGAL NOTICES: While attempts have been made to verify the information provided, SmarterInsurance.org will not assume any responsibility for errors, inaccuracies, or omissions. Since this document presents general discussions, always consult a qualified professional regarding your specific tax, legal, financial, and personal circumstances. (911.21740)

A Word About Deductibles...

2008-02-17T20:28:00.001-08:00

Simply stated: A deductible is the amount that you pay toward a loss or claim before the insurance company begins to pay.

The higher your deductible, the lower your premium.

The more you are willing to participate in your loss, the greater the savings on your premium.

You'll make fewer claims because you won't be making claims for $600, $900 or $1995 losses. You'll simply pay those yourself. (FREQUENCY)
When you do submit a claim the insurance company will be paying $1500 LESS than if you had the $500 deductible. (SEVERITY)

There is no "correct" deductible to choose. It depends on what I like to call your personal LOSS THRESHOLD. So before get too far ahead, lets take a moment to diagnose your "loss threshold."
Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!

ANOTHER SIMPLE CALCULATION....

OK. Let's say you're ok with a loss threshold of $1000 or less. Now you can choose between a $1000 deductible or a $500 deductible. Find the premium difference between the two. Let's say you save $80 a year in premium to take the $1000 deductible.

Now look at the DIFFERENCE between the 2 deductibles which is $500. It would take you over 6 years ($80/yr x 6 years = $480 ) to save the DIFFERENCE between the deductibles.

Now you simply ask yourself, "Do I think I'll have more than 1 claim in the next 6 years?" If the answer is yes, you should probably take the lower ($500) deductible. If the answer is no, then the higher deductible ($1000) probably makes more sense.

If you're still confused by this, just give me a call and I'll walk you through it....

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

10 Ways to Beat the High Cost of Auto Insurance (Part 2)

2008-02-17T18:25:00.000-08:00

Part 1

We've been evaluating 10 Ways to Beat the High Cost of Auto Insurance. Part 1 included the introduction and Ways 1-3. We'll finish it up here.

4. EVALUATE YOUR MEDICAL COVERAGE -

Medical Payments coverage is designed to pay for injuries sustained by you and anyone else in your car. Particulars of this coverage vary so the details are best discussed with your agent. But, here's the basic idea.

If you have good medical insurance through your work or a private plan, it may be wise to minimize your medical payment coverage on your auto insurance. As far as the coverage applies to you, there is probably a lot of overlapping coverage. It is probably not a good idea to drop this coverage completely as you are never sure just what kind of health insurance others that ride in your car may have. Limits available on this coverage usually range from $1000 per person up to $100,000 per person. Driving around with $100,000 of coverage when you have adequate health insurance may be some overkill. A limit of $1000 or $5000 per person might make more sense. On the other hand, if you do not have adequate health insurance, then the premium for the $100,000 of coverage might be money well spent! Weigh the benefits and decide what is best for you.

Once again! This can be a very tricky area so the details are best discussed with your agent. A complete understanding of your health insurance coverage is necessary before making any decisions to cut out your auto medical coverage.

5. WEIGH THE VALUE OF "FRINGE" COVERAGES -

Insurance companies offer a variety of coverages other than the core coverages of Liability, Medical, Comprehensive, Collision and Uninsured Motorist Coverage. They offer these coverages because they are additional ways to generate premium dollars for the company. Generally, the company makes money on these coverages. Consider them carefully before buying them even if they are only a few dollars apiece. Some of them are very worthwhile and some are not. You need to make your own best decision.

***One of the coverages that you probably should at least strongly consider is Rental Reimbursement. This is the coverage that pays for the cost of a rental car while your car is being repaired in case of an accident. Most people think this is covered in their basic policy. IT IS NOT! Picture your life for 2 weeks without your car. Do you need to have one? Can you borrow one? Can you afford to rent a car yourself? If these answers are YES, NO, NO, then you need to have Rental Reimbursement Coverage. Cost is usually about $20 a year. Could save you humdreds of dollars if you have an accident.

One of the most commonly offered coverages is towing or emergency road service. The premium is usually nominal and lets face it, even the most well maintained cars occasionally break down. Towing coverage runs about $6 per year. The average tow can cost $30-$50 and more. That's one tow that can cost you seven years of premium. If you think the odds are pretty good that in the next seven years you will need some roadside service, then it might be a good idea to get the coverage.

Auto Death Indemnity is another coverage that is commonly offered. It provides coverage for death when caused by an automobile. It should never be used as a substitute for a good life insurance portfolio. Auto Death Indemnity can insure the principle operators of the vehicle and some companies also offer coverage for the children and other relatives of the insured that reside in the household. This coverage can also provide compensation for dismemberment; the loss of a hand or an arm as the result of an auto accident.

Some companies offer Auto Disability coverage. This is the coverage that is designed to replace part of your paycheck if your are disabled in an auto accident and are unable to perform your normal occupation. The limits of this coverage are usually very limited and again should not be used as a substitute for an adequate disability insurance program.

Remember, these life and disability benefits only pay for losses that are auto related. If you are killed or disabled because you fall from a tree or drown while swimming for instance, these benefits will not pay.

Some people are in either temporary or permanent situations that prevent them from buying basic life and disability coverage. These fringe coverages can offer some coverage but should be backed up with the more traditional forms of life, health and disability insurance whenever possible.

6. DOUBLE CHECK YOUR MILEAGE -

Most companies consider the mileage you drive quite heavily when computing your premium. Be sure to learn from your agent what the categories are and just where the markers are between short and long mileage. Become an expert in this area! It can put dollars in your pocket. Definitions may vary greatly between companies.

There may be categories for annual mileage, long and short mileage for commuting back and forth to work. Some companies may not place you in the commuting category if you drive less than 30 miles per week to and from work. If you car-pool, be sure to count only the miles that your car commutes. If you drive 60 miles per week to and from work but only drive one week out of three then your commuting average is 20 miles per week. If you have a spare car sitting around check to see that it is rated as pleasure only and short annual mileage. Consider alternating cars that drive the farthest to work to possibly get a short mileage rating on both cars. Ask you agent to work with you to find the best combination for your situation.

7. DOUBLE CHECK YOUR TICKET AND ACCIDENT RECORD-

Insurance companies handle thousands of policies on a daily basis. They make mistakes on a daily basis! You may be being charged for tickets and accidents that are not yours! Check with your agent to see exactly what items show on your record that may be increasing your premium. If you are not sure what you should have, go to local motor vehicle office and ask for a print-out of your record and compare it with the insurance company records. Removing these errors can save you up to 30% and more on your premium.

8. GET ALL OF THE AVAILABLE DISCOUNTS -

Discounts offered by insurance companies are as varied as the cars they insure. Cross examine your agent to be sure that you are getting every possible savings opportunity that you can! Ask for a list. Check for the availability of the following discounts: Non-Smoker; Accident-Free; Citation-Free; Longevity with the company; Passive Restraint Devices (such as automatic seat belts and air bags); Car Alarm; Over 21; Over 50; Over 65; and Driving Safety Course Completion. Marketing conditions dictate that insurance companies constantly update their discount programs. Be watchful in your renewal notices for notification of new ways to save your premium dollars.

9. USE CARE IN RATING YOUR YOUTHFUL DRIVER -

Certainly one of the most expensive items for young people today is the cost of auto insurance. Because the inexperienced operators do cause a higher percentage of claim costs, they get to pay higher percentage of the premiums. Take heart! There are ways to effectively minimize the impact on your checkbook.

By far, the greatest savings on the insurance bill is wrapped up in the kind of car that the youthful operator drives. Almost 50% of your premium is shelled out to protect the more expensive car that is too valuable to withhold comprehensive and collision coverage. Consider buying a car that is within your "write-off" limit as defined in your Financial Picture. I fully realize that selling this idea to your 16 year-old may be much more of a challenge than just paying the higher premium! But, it will provide substantial premium savings.

Additional tricks for the youthful driver include the Good-Student Discount. The usual threshold is a 'B' average or better but some companies will accept statements from the school that the student is in the upper 20% of the class or similar alternative requirements. Some parents have made the 'B' average the requirement for the young person to drive. No B's- - -No Keys! Check out all of the rules of your company involving the rating of youthful operators. Some companies offer part-time driver rates that are substantially less than the full-time rates. This area can be very tricky! This is the time to get down and get serious with your agent. Also ask your agent when the company will start to charge you the increased rate. Some companies will not begin to charge you the increased rate until the first renewal after the addition of the youthful operator.

10. SHOP FOR SERVICE AND PRICE -

Managing your insurance is not an easy job. The more work that your agent does for you the less work you will have to do. It is important to have both the service you need and the price that you can afford. Some companies offer agent service and others do not. Some cost less, others more. As in each of the management decisions we discussed above, you must weigh the cost versus the benefit. First you must decide what kind of insurance buyer you are. Do you like to get into the nitty gritty yourself or do you prefer to have someone do all of that for you? Are you willing to follow-up on changes and claim activity yourself or do you just not have the time? Do you feel a certain security from being with one company for years or can you jump from carrier to carrier with each renewal notice?

Find out from your company what benefits you gain as you stay with the company over the years. Some companies offer increasingly larger claim-free discounts the longer you are with them. If you encounter some ticket or accident problems, some companies will even reconsider cancellation of your policy if you are a long-time, loyal policyholder. Remember when you shop for insurance to weigh the parameters of your longevity and familiarity with the company, their price, and their service. Consider also the relationship with the agent, his or her willingness and availability to assist you with these ongoing decisions or the availability of service personnel with a non-agent company. You are the consumer. There are companies to suit every style you can imagine. Find what is best for you!

HOW MUCH LIABILITY COVERAGE -

This is the part of your insurance that pays for the damage done to the other person or property when the accident is your fault. Cut, slice and trim as much as you like in the areas above but be wise here. This is the part that protects your home, your future earnings, and whatever other assets you have managed to accumulate thus far. Some state minimums are down in the $15,000 per person range. A seriously injured person can spend that money without ever leaving the emergency room! Don't be Penny-wise and Pound-foolish in this area. Consider as a minimum at least $50,000/100,000/25,000 or a single limit of $100,000. I would recommend buying more than that but at least start with those limits. This point may not save you a lot of money but it will save you a lot of sleepless nights wondering if that accident that you caused in that one moment of inattention will wipe-out your life savings and your future earnings.

IT'S YOUR MONEY !

Yes, the proper management of your insurance does take a little time, study, and effort. You can effectively manage those premium notices that previously seemed to be out of control. Learn to weigh the savings with the benefit and make decisions that are best for you. Stay within your Financial Picture and update your portfolio at least once per year. And remember: The money you save just might be your own!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

My 'Other Blogs'
Working by Referral
Musings from California

WELCOME

2008-01-17T06:12:00.000-08:00

Welcome to the San Diego Insurance Blog. This is a place to connect our community and discuss the (sometimes) complicated role of insurance in our lives today.

Insurance is sometimes required by law, required by lending institutions, and sometimes its just good common sense to have some.

We'll be discussing various aspects of insurance and the frustrations and problems it can bring our way.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

The San Diego Insurance Blog

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WELCOME

Life insurance can be somewhat overwhelming to purchase. You’re so afraid of making a mistake.

It’s easy to incorporate your mortgage insurance TOGETHER with your regular Life Insurance and SAVE TONS OF MONEY in the process. Learn how with this: