If you drive a lot of the local kids around to ball practice, scout meetings or other gatherings, think about getting a Personal Umbrella Liability policy. You could have tremendous liability exposures if you should be involved in an accident – a sad fact, but true.
Are you the local “chauffeur?”
February 24th, 2010Protect Your Jewelry Investment
February 15th, 2010Protect Your Jewelry Investment
Olton,TX January 31, 2008–Valentine’s Day accounts for a large percentage of jewelry purchases, yet many consumers don’t know enough about protecting these valuables against costly losses, says Jeff Mayo, an agent with Mayo Agency in Olton.
Much of this jewelry–particularly diamond engagement rings–will be excluded from full coverage under standard homeowners and renters insurance policies. “Most policies provide as little as $500 for loss by theft, and you will have to pay a deductible on top of that, leaving you with virtually nothing,” says Mayo. “Worse yet, if your ring simply disappears or if you lose the stone, most homeowners’ and renters’ policies provide little or no protection at all.”
The average engagement ring value in the U.S. is $2,000, according to the most recent statistics from the Diamond Registry. However, for brides over the age of 25, that average climbs to about $3,000.
“After you have chosen that very special diamond or other valuable jewel, your very next decision needs to be how you will insure it for any unexpected loss,” says Mayo. “An expensive loss could really take the sparkle out of the joyful times these jewels so often commemorate.”
You usually should purchase a policy add-on called a “floater” to insure your fine jewelry against theft and damage. Annually, this coverage should cost about $5 to $10 per $1,000 in value. The best protection, though, is a personal jewelry policy, says Mayo.
You will need an appraisal of the piece to begin this process, but these policies–which provide coverage for loss by theft, damage or disappearance, and will pay for repair or replacement with like kind and quality–are very flexible and will allow you to add more jewelry as your collection increases.
OTHER IMPORTANT TIPS:
- Some insurance companies require an appraisal by an independent third party, or someone not working at the store where the jewelry was purchased. Ask your agent what your policy requires.
- When shopping for an appraisal, always ask trusted friends and family for a referral and look for credentials from the Gemological Institute of America, the American Society of Appraisers or the Accredited Gemologists Association.
- Fewer than 20 percent of jewelry stores have a properly credentialed gemologist on the premises. Shop around.
- Some insurance companies require that jewelry be stored in a safety deposit box while the owner is traveling or not wearing the item.
- Insurance companies report that most jewelry claims result from theft in the home by friends, family and service workers.
- Don’t forget to have your jewelry re-appraised when upgrading or adding additional stones.
Mayo Agency is a local Trusted Choice® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your personal or business needs. You can visit Mayo Agency online at www.mayoagency.com or call it at 806-285-2604.
Liability Limits on the Personal Auto Policy
January 26th, 2010Today’s rate of inflation is increasing the cost of almost everything, including the amount of jury awards and legal costs. That’s why we want to remind you to review your auto insurance policy to make certain your coverage is sufficient to protect you fully. Your coverages may be increased, or additional coverages added, for a small additional premium.
If you should be at fault in an accident, you would want liability limits that are at least as high as any possible court judgment. With medical care costs increasing rapidly, you should evaluate your Bodily Injury Liability limits to make certain they are sufficient.
Since the value of most autos and commercial vehicles easily exceeds the minimum Property Damage Liability limit, this is a very important coverage to carry in an adequate amount.
Life Insurance: Can You Live Without It?
December 2nd, 2009In the thick of an economic slump, many consumers aren’t likely to have “buy life insurance” at the top of their to-do lists.
Yet life insurance is indispensable. Parents and business owners—indeed, anyone who has people dependent on them financially either at home or at work—can benefit from the unique advantages of life insurance.
In the United States, consumers and businesses owned more than $19 trillion of life insurance as of year-end 2007, reported the American Council of Life Insurers.
Yet a myth persists that life insurance is too costly, falsely contributing to the perception that life insurance is not a necessity. But life insurance has actually declined or flattened in price in the past several years, according to a recent report by the Insurance Information Institute.
A 2008 survey by the Life and Health Insurance Foundation for Education noted other obstacles for consumers: 23 percent of consumers just had not gotten around to buying it, and 22 percent confessed they did not know enough about it.
What is life insurance? Life insurance is a financial contract in which a life insurance company agrees to pay an amount of money to a person upon the death of another person, in exchange for regular payments (known as premiums).
Life insurance serves two key financial functions. First, it’s a tool for prepaying for immediate expenses needed soon after the time of a person’s death. Second, it’s a way to generate substantial investment capital to produce future income (to replace income that an insured person would have been providing if they had not died).
Because a deceased breadwinner no longer is providing an income stream from salary, commissions or wages, a family needs to have invested funds that can generate replacement income. Likewise, a business owner who passes away leaves behind co-owners and employees who need funds to replace the person’s expertise and revenue-generating capabilities, or to restructure the business.
Life insurance provides that large sum of capital, at a time (death) that cannot be predicted.
To determine if and how much life insurance is appropriate, a Trusted Choice® independent insurance agent or broker can help answer two important questions:
1) How much cash will be needed upon the death of a parent, business owner, or other individual? These immediate costs often include uninsured medical expenses and funeral expenses. Additionally, many consumers and business owners have financial obligations that do not go away upon death: a mortgage loan, auto loans, business loan or line of credit, credit card debt and college costs, to name the most common.
2) How much annual income would sustain a household? An estimate of income for a family starts with the amount of income earned in the year prior to a breadwinner’s passing. From there, additional expenses (child care, for example) should be added; while living expenses for the deceased person can be subtracted.
A Trusted Choice® agent, like Mayo Agency, can help calculate the amount needed today that would provide an annual income for a certain number of years in the future. That’s the starting point in a decision of how much life insurance you need for your family or business.
Your Trusted Choice® agent can help sort out other potential sources of funds, such as Social Security benefits, pension income, group life insurance benefits, and investment income from other assets. These amounts typically reduce a person’s need for life insurance, but don’t eliminate the need.
Life insurance comes in two broad types: term (or temporary) and permanent (or lifetime). Term life insurance pay benefits if the death of the insured person happens during the “term” of the policy (anywhere from one year to as much as 20 years). Permanent life insurance pays benefits no matter when the insured person dies. (It is known as “whole life” since it is in force the whole lifetime of the insured person.) There are varieties of permanent life insurance, such as universal life, variable life and traditional whole life.
More than 1,000 licensed life insurance companies in the United States make for a competitive marketplace for consumers. That competition has driven down costs for term life insurance, reported the Insurance Information Institute, while keeping permanent life insurance costs stable.
Premiums are calculated for each person who applies for life insurance, based on cost tables. Age (the older, the higher the cost) and health status are two key factors life insurers use to set premiums. One lesser-known discount: per-unit cost for life insurance goes down with larger amounts purchased.
Life insurance is distinct from other financial products because of two key tax advantages: the money paid into a permanent life insurance policy can accumulate free of income taxation; and the benefits paid from a life insurance contract are free of income taxation.
Some people may think they can live without life insurance, but in reality it’s their families and businesses that cannot. If you want to increase the financial security of your family or business, contact a Trusted Choice® insurance agent or broker to begin a discussion of life insurance needs and solutions.
Liability Coverage on the Homeowners Policy
November 3rd, 2009Perhaps the best value in insurance is the Personal Liability coverage provided by your Homeowners Insurance.
Liability claims are harder to grasp than property claims, after all property is tangible – I can see it, touch it, I know how much I paid for it. Liability claims occur far less frequently but are potentially much, much more costly.
So the question then becomes, “How much liability coverage do I need?” It is a question that unfortunately has no reeady answer. You need a liability coverage limit that will meet or exceed any possible judgement against you. In today’s litigious society, we would say that most people should have a liability coverage limit of at least $500,000.
The personal liability coverage discussed so far has applied to Bodily Injury and Property Damage claims against you. The kinds of claims people make in our modern world are not confined to Bodily Injury and Property Damage, though. It is highly recommended that you add Personal Injury Coverage to your policy. This endorsement expands the definition of liability to include coverage for claims alleging libel, slander, false arrest, malicious prosecution, etc. This coverage also is very reasonably priced.
If you have not done so in a while, check over your policy and make sure that the liability limit is adequate for you and that you have the Personal Injury Coverage endorsement.
Protect Yourself
September 17th, 2009WHY SHOULD I HAVE TO PAY FOR OTHER PEOPLE’S INSURANCE?
We frequently hear this question when a client asks us about Uninsured Motorist coverage. Many people seem to think that these premiums are pooled together by the state to help poor people purchase insurance. That is not the case.
The sad fact is that, although the State of Texas requires motorists to have a minimum level of liability insurance, fifteen to twenty percent or more of Texas drivers have no insurance. Of those that do have insurance, about eighty percent carry only the state-required minimums of $25,000 Bodily Injury per Person, $50,000 Bodily Injury per Accident, and $25,000 Property Damage.
Will it cost more than $25,000 to replace your vehicle?
How many days can you spend in the hospital – how much work could you miss – for $25,000?
Uninsured Motorist coverage protects you from those who either truly can not afford adequate insurance or are so irresponsible as to forego insurance. That is why we recommend that you carry Uninsured Motorist coverage limits matching your Liability coverage limits.