The Bad News about Flood Insurance

On the heels of devastating damage on the East Coast due to hurricane Sandy, there has been a renewed concern about homeowners’ lack of flood insurance. While people in California don’t have to be worried about massive hurricanes, there are other dangers which are present. The Association of California Water Agencies has data to show that over the last 20 years, every county in California has at least one federal flood disaster declared. Rainwater from storms, tsunamis, mud and debris flows, as well as other types of floods are typical in California. At this time, homeowners are provided with flood insurance from the National Flood Insurance Program which is run by FEMA. It is far too expensive for insurance companies to pay for themselves so it is funded by the government. Though, it is purchased through private insurance companies as an extra to your homeowner’s insurance policy. Presently, the debt-strapped National Flood Insurance Program has a $20.8 billion cap in the amount of money it can borrow from the U.S. Treasury to pay flood-loss claims. But the program has already borrowed around $18 billion, mainly to pay for Hurricane Katrina in 2005. Flood Insurance Policies typically cost around $600 a year, but can start as low as $129 in low-risk areas, according to the Federal Emergency Management Agency. The average claim paid last year was more than $28,000. Coverage is provided for up to $250,000 for the home itself, and $100,000 for possessions. Don’t be caught off guard like the people on the eastern seaboard of the United States. Contact a helpful insurance agent at Wise Insurance Agency in Marin County today who will help you protect your property.

Prop. 103’s Influence on Car Insurance in California

Californians have a reason to smile when they compare their auto insurance rates to other states in the USA. Prices in California have seen a decline of 4 percent between 1989 and 1998. An opposite trend compared to other states which have seen increases of an average 38.9 percent, according to a new survey released by Consumer Federation of America. The Consumer Federation of America has also reported that the nation averages more than $700 per vehicle and $1,500 per household. The total that car insurance companies make is $100 billion nationwide. It is a credit to proposition 103, which was passed in 1988. This law tightened regulations to insurance, bringing lower rate increases, fewer uninsured drivers and more insurance companies to choose when buying car insurance. Prop. 103 affected these changes by forcing insurance companies to justify increases, give discounts to safe drivers, and provide customers with rate comparisons. If you feel like you are paying too much for car insurance, you deserve to compare rates from other insurance companies. Don’t forget to take advantage of the terms outlined by Proposition 103 and reap the benefits of savings. Contact an experienced insurance agent at Wise Insurance in San Rafael today

Who Needs Life Insurance?

Most people think that only people with children need life insurance but that just isn’t the case. It is important that anyone who depends on you has the financial means to carry on without you. What is known as a death benefit can cover your funeral costs, living expenses and even college funding. No one wants to think about what happens to their family after they die, but it is important to think about protecting their futures even if you are not around. This means setting down some time when you can imagine a worst case scenario. Consider how your family will pay for medical bills, taxes, debts, lawyer fees and any other expense you can imagine. It doesn’t matter if you are old or young, single or married, have children or do not, life insurance may figure into your plans no matter where you are in your life. Anyone can be left with end of life costs that someone will be responsible for. As a breadwinner for your family (whether that is your parents, kids, spouse, or any one that depends on you) you need to consider life insurance. What would happen to your family if they could no longer pay for financial obligations? Even if your spouse is working, there might not be enough money to pay off car loans, credit card debt or a mortgage. Children compound the reasons to purchase health insurance because it is expensive to raise a child. If you are a stay at home parent, it is still integral to have a life insurance policy even if your financial contribution is not in the form of a check every two weeks. Costs that would exist without your contribution would be childcare, transportation, cooking, cleaning all of which are severely underestimated. If you were unable to assist your family with these duties, would they be able to pay for them? Besides taking care of your family, life insurance can also protect your business. A life insurance policy can be structured to fund a “buy-sell” agreement, which provides an exit strategy for your family’s interest in your company. Your family will be able to sell your share of any business for the proceeds of the life insurance bought for you by your business. If you are considering purchasing a life insurance policy or need someone to talk to about what payouts you will need to protect the people you love, contact a dedicated insurance specialist at Wise Insurance Agency in San Rafael.