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.

Parents of Youthful drivers.

So I get this question often. “Mike, we are thinking of giving our son/daughter the car and let them get their own insurance, what you think”

Well since I am not speaking direct to anyone I will tell you what I really think. It is a cop out; it is socially irresponsible and the lawyer who suggested that there is no chance of liability coming back to you could be very wrong.

I would be glad to elaborate on this subject but I think I can sum it up by asking this: How much liability insurance would you like the youthful driver that injures you to have? 15,000 or 500,000?

Non Profit Volunteering

Unfortunately the number of lawsuits against non-profit workers, board members and volunteers are on the increase. Before you volunteer or join a non-profit board please confirm liability insurance protection has been purchased and directors and officers coverage is in place.

Diminished Value:

Please see the list of items a rental car company can charge you for damage to the rental car. Some of these expenses may not be covered by your insurance. This is why I always take the rental car companies insurance.

Damages to the car: (covered by your insurance)
Appraisal fee: (covered by your insurance)
Towing and Storage: (limited coverage)
Administration Fee: (undefined)
Loss of Use: (if you have it)
Diminished Value: (undefined and can be substantial)

hiring the right contractor

As of October 1, 2001 all California Contractors are legally required to disclose to homeowners, in writing, whether or not they carry General Liability Insurance. If the contractor does carry General Liability Coverage he is then required to provide the name and phone number of his insurance company to the homeowner. Any time you, the contractor, do a job for someone there is a chance that you could be sued, whether you are legally liable or not. A General Liability Policy typically obligates the insurance company to defend the insured against all allegations that, if true, would be covered by the policy. The policy also obligates the insurance company to pay damages, up to the policy limit, for which the insured is legally liable