Unfortunately, there are several myths that surround umbrella liability insurance:

• It is too difficult to coordinate with an existing insurance policy (i.e. your homeowners)
• Premiums are too pricey
• It is only for those who are rich (in other words, have much to protect)

These myths are just that – myths. Umbrella liability coverage is actually quite affordable, is not meant just for those who have more than the average Joe, and coordinate easily with existing insurance policies.

The term “umbrella liability” is so named as it acts like an “umbrella” over your auto and homeowners (or renters) liability policies to provide you with even more protection.

Here are some examples of when your umbrella coverage would give you the extra insurance you need:

• Someone injures themselves while on your property, then sues you under your homeowners insurance.
• An item from your property causes an accident on another’s property because of a natural disaster (i.e. a tree in your yard falls during a storm and hits your neighbor’s car).
• Someone you’ve hit with your car sues you under your auto insurance policy.

Your homeowners and auto policies do have some liability coverage that is part of your regular insurance and would assist you in settling legal claims should the circumstances arise; but what would you do if a settlement/judgment required you to pay the injured person(s) $100,000 and you are only covered with $450,000 of liability? Your insurance company would pay the $450,000, of course, but where would you get the remaining $550,000? You would likely lose everything in an effort to pay off the debt. Some states do protect certain types of assets (i.e. your home) from being taken, but there still is much to lose.

This is where umbrella liability insurance comes into play; an umbrella policy will pay over and above what your basic policy will, so you could potentially have several million dollars worth of coverage you might otherwise be without. And, truly, for the protection it offers, liability premiums are really very reasonable. You can usually find $1 million worth of coverage for just $200 or $300 a year. The cost, as with any insurance, will vary by the criteria you use, like the amount of coverage you choose and your personal risk factors (i.e. if you live in an area prone to tornados or perhaps your credit history).

Umbrella policies do usually carry high deductibles – $300,000 or more is pretty typical – but they are designed not to kick in until your other policies are fully utilized. If you opt to get your umbrella policy through the same company with which you have your auto and homeowners insurance, you will likely receive a substantial discount on your premiums; additionally, you won’t have to deal with several companies if you should ever have to utilize the policies.

It’s definitely worth considering the extra coverage an umbrella policy has to offer. After all, you never know when disaster will strike – it’s always better to be safe than sorry.

As we quickly move into tornado season, the Property Casualty Insurers Association of America (PCI) is encouraging all homeowners, business owners, and renters to review the coverage they carry and get in touch with an agent or their insurance company to discuss any additional coverage they may need.

Tornado season begins in the months of March and April, peaks in the southern plains during May and June, and will take hold of the Midwest and northern plains in June and July. The National Oceanic and Atmospheric Administration’s National Climatic Data Center estimates that over 1,150 tornadoes touched down in 2009. Most were clustered in the Southeast and Midwest, with the largest outbreak occurring on April 10^th, killing two people.

Most losses that occur because of tornadoes, windstorms, hail, and the like are covered by homeowners, renters or commercial policies; tornado losses to your home should be covered under the “windstorm” peril coverage portion of your homeowners policy. Renters insurance would cover possessions lost in severe weather and business owners would have coverage under their commercial policies.

Donald Griffin, vice president personal lines for PCI says, “with wind speeds that can reach nearly 300 MPH, tornadoes can be deadly and cause severe property damage. Because tornadoes can occur rapidly and with little warning, advanced preparation is very important. We encourage consumers to know the warning signals used in their community and be prepared to take cover when alerted. Maintaining an emergency storm kit with a radio, flashlight, batteries and first-aid items is the first step in preparation. Other steps include conducting tornado drills with your family and ensuring that your property is adequately insured.”

So stay alert to warning signs this year during the severe-weather months and be prepared!

Buyers of disability insurance must be aware that there is no regulation regarding the various terms used in individual long-term disability insurance. The definition of “own occupation” stated within one provider’s contract is not necessarily the same as another’s. As is typical for most of us, the consumer is not likely to read an entire contract to discern the differences in definitions. You may believe that an “own occupation” policy is the same as “modified own occupation one.”

You need to know that some insurance agencies will market disability insurance policies with the words “own occupation” on their marketing materials, but the policy is actually anything but the “own occupation” insurance as defined just ten years ago. What the companies are actually marketing are income replacement contracts.

As you might think, based on the name of the insurance, “own occupation” should mean that if you are injured to the point of being unable to perform the duties of your chosen occupation, the insurance company will pay you regardless of whether or not you are capable of performing another. However, the new (and, in my opinion, quite deceptive) contracts usually state “so long as you are not engaged in any other occupation” meaning that if you make a claim and then begin working in another field, the insurance company will reduce your disability benefits accordingly. They may possibly end the claim and not pay you anything.

You should never take the word “own occupation” for granted; to make sure you are receiving the best definition of total disability look for something like this:

“Because of sickness or injury you are unable to perform the material and substantial duties of your regular occupation. We will consider you to be totally disabled even if you are at work in some other capacity, so long as the disability prevents you from performing your original occupation”

If the words “any other occupation” or “gainful occupation” are in the contract, you may want to look elsewhere to see if you are eligible for a true “own occupation” policy. Certain occupations are simply not eligible for this type of coverage.

There is a tremendous amount of information to understand in a disability policy; they are often easily misinterpreted by anyone unfamiliar with how the insurance coverage works. You should always contact a professional and ask all the questions you can think of to fully understand what your contract covers – AND, what it doesn’t.

The DC insurance regulator announced to the nation this week that he has rescinded the 35% increase in healthcare insurance premiums for the not-for-profit insurer, CareFirst BlueCross BlueShield that had been previously approved.

The rate increase was approved in October of 2009, but following a consumer plaint, the agency looked into further approval. Additional details requested from the insurance organization concluded that a mistake was made in the original filing.

CareFirst BlueCross BlueShield has been instructed to return to the previous rate level and return the excess charges along with 5% interest to the consumers. Rate increases are pending the filing of a new application; meanwhile rates have returned to their original cost levels.

Reminiscent of the 39% rate increase imposed by WellPoint that was implemented earlier in 2010, the increase caught the attention of the California insurance regulator as well as that of President Obama. WellPoint had also agreed to put its rate increases on hold.

These two insurance organizations’ rate increases lead me to wonder just how many healthcare insurance providers have implemented rate increases this year. Hopefully regulators in all states will be checking for these steep rate increases and making sure they remain in check. I, for one, know that an increase in my state’s insurance costs of 39% would be detrimental not only to me, but to everyone I know.

As a business owner, the level of insurance coverage you obtain is completely up to you; you, of course, will want to be sure you are adequately protected, while not paying for insurance that has no relevance to your business.

Take into consideration the following when deciding on the best coverage for your unique business:

Size:

Often, businesses will begin small – you may even have started your business from your home or garage. When entrepreneurs work from home, they often assume that their business assets will be protected by their homeowner’s policy; this is not, however, always the case. You may want to consider looking into “work-from-home” insurance policies. This type of insurance will be tailored to small, start-up businesses and have the basic level of asset and liability insurance. These policies are usually quite inexpensive.

Be sure to review your policy as your business grows to be sure you have the coverage you need. If you employ someone, your liability level increases; there is always a risk for human error, so you need to protect your customers as well as yourself and your employee(s). Workman’s compensation insurance is legislated for full-time employees in most states.

Type:

Businesses in different industries will carry varying levels of risk; naturally the insurance coverage should be tailored accordingly.

A good example is restaurants and bars: They have high volumes of people come through each day meaning that they need to have insurance that will cover equipment, food, customer and product liability, workman’s comp, and property insurance at the very minimum.

A manufacturing business won’t need to have food spoilage coverage, however they carry greater risks in terms of property, equipment and product liability as well as higher workman’s compensation risks. They would need more insurance in these areas, than, say, a completely service-oriented business such as a cleaning service.

Assets and Perceived Risks:

Consider the following two factors to determine the level of insurance you need:

Your assets – you’ll want to ensure you have your assets protected so you can continue to generate an income should your business have difficulties. This type of insurance is called business interruption and shouldn’t be overlooked.

The risks – the industry of your business or the region in which you conduct business may be susceptible to certain risks; find information from local industry associations or colleagues to help assess your insurance needs.

Most people would probably agree that the Aflac duck is adorable and a great marketing tool; what everyone can’t agree on is whether or not it’s wise to choose one of their many insurance policies.

Aflac, a Fortune 500 company based in Columbus, Georgia and founded in 1955 by the Amos brothers, Paul, Bill, and John, is available to everyone in the U.S. as well as various overseas markets. In fact, Aflac is the insurance of choice for a fourth of the households of Japan.

Aflac shares have been performing quite well lately, proving that the company prides itself on offering and providing high-quality products and services at competitive prices. Additionally, Aflac is consistently reported to be one of the -most employee-friendly companies, especially so for working mothers and minority women.

Aflac offers term life insurance, whole life, or a combination of both. You won’t be required to have a medical exam or blood tests when applying for insurance with Aflac, so the company can’t disqualify you based on your current state of health. The coverage you’ll receive will include a Waiver of Premium Benefit and an Accelerated Death Benefit.

Aflac consistently receives grades of A+ (the best being A++) from a variety of independent insurance rating companies. Generally speaking, Aflac shows customers as happy with the insurance coverage they’ve received; they like the flexibility of its plans and the quickness of fulfillment of claims.

Aflac carries a wide variety of insurance including long-term care, life insurance that can be used to care for your family should you die or as retirement income, insurance that will cover your expenses should you be unable to work, cancer insurance (not available in all states), and supplemental health insurance (to work in combination with health insurance you already have or to diminish the costs of healthcare if you are not able to afford regular insurance).

As a former Aflac salesperson, I can personally recommend the company if you have a need for unique coverage; excellent and affordable, Aflac can be a great addition to the coverage you already have.

Save on Your Auto Insurance when You Qualify for Discounts

Auto insurance companies want your business, especially if you’re a good insurance risk, so much so that they will often offer a discount to customers who fit the description of “good risk.” When asking for quotes be sure to ask companies about any discounts they offer. If you qualify, it can significantly lower your auto insurance payments.

Driving Discounts

If you do have a clean driving record, you’re just the type of client auto insurance companies desire, so they will most likely offer you a discount. Auto insurance is generally lower for those who haven’t been the cause of any accidents for three years or more. A three year period with no speeding tickets or other moving violations could also ensure an auto insurance discount; insurance companies view clean driving records as evidence of practicing safe driving habits.

If you’re a new driver, it’s likely you are paying rather high auto insurance rates. Many companies offer a discount to any new driver who takes a defensive driving course. If you don’t drive your car very often, be sure to let your insurance company know; low annual mileage usually means a lower premium.

Auto Insurance Companies and Vehicle Safety

Auto insurance companies are also partial to safer vehicles. Safety features reduce the chances of injury if you’re involved in an accident. Cars with airbags and antitheft devices may qualify for insurance discounts as well.

Extra Cars and Homeowner Insurance

If you carry multiple policies with your insurance company, you will more than likely receive a discount. Additionally, if you use the same insurance company for your homeowners and auto insurance, you may also qualify for a discount.

Other Discounts

Auto insurance companies usually offer lower auto insurance rates for other reasons as well. Drivers over the age of fifty often receive age-related discounts. Students with good grades may also qualify for a discount. If you’re part of a carpool, you may also qualify for lower auto insurance rates. And, certain occupations, such as teacher, may receive discounted rates as well.

Contact your agent to be sure you’re receiving all the auto insurance discounts available to you!

Choose Your Insurance Provider Wisely

When you purchase insurance, whether it be auto, health, home, renters or life, choosing the right provider should be a major part of your decision-making process. You should remember that cost alone should not be the only deciding factor of who to buy your insurance from. Whichever provider you decide upon, your agent should help you get the best possible coverage at the best price.

First, your insurance provider should be licensed to sell insurance in your state; check with your state’s insurance department to verify they are. Do NOT purchase insurance from a provider that is not licensed with your state! The department should also be able to provide you with provider recommendations; they keep files on providers that have complaints as well as those who come highly recommended. Be sure to check into any complaints against a provider you are considering to find out why customers had issues with them. You should also utilize friends, associates, and family for recommendations as well.

Second, look beyond the lowest price when you choose your provider; take their experience into account when you are evaluating companies to make your decision. An insurance agent is paid the same commission regardless of their level of experience. A more experienced provider is likely going to be able to help you maximize your coverage while saving you as much money as possible.

Third, the provider you choose should regularly review your policy; this is a service you should expect. Ask any of the providers you are thinking of utilizing how often they will look over your policy. Consistent reviews will ensure your policy is not outdated and that you have the coverage you need and want.

Finally, you should look for an insurance provider who will fight for you to resolve any claims you may need to make on your insurance. Be sure they will support you if you are involved in an accident, disaster, or catastrophe.

The closer you look into a provider’s reputation, the better off you’ll be; remember, it’ll likely save you money in the long run if you choose the best one!

Truck Drivers Should Carefully Choose the Right Insurance

Truck drivers and owners generally know that keeping their trucks safe is a primary concern, including – but, of course, not limited to – having a safeguard should the truck be stolen, involved in an accident, or simply fail to function properly. A commercial truck insurance policy will provide this crucial safeguard.

It isn’t usually an easy task for a truck driver to obtain the commercial truck insurance he or she needs, therefore, a proper investigation into what type of insurance is suitable in adequately protecting the truck, the driver, and cargo being carried is necessary. As a general rule, a commercial truck insurance policy will have standard coverage, cost, and liability for covering these three things.

If you are a truck driver who must carry cargo to difficult to access or remote areas, such as special deliveries to Alaska, your policy may need to be modified to cover you accordingly. This, in particular, is one of the reasons it is so important for a driver to do thorough research to ensure the insurance policy will cover all elements and/or events that may add risk to you as a driver as well as to the likelihood of having issues with your truck.

If a truck driver fails to choose the correct policy, any unfortunate event could raise the deductible. While changing insurance companies at such a time would seem to be a valid solution, more often than not, it isn’t as the problem you’ve experienced will follow you to any insurance company, which will keep you at a higher deductible regardless of where you are able to find insurance.

Owning a business that involves a big rig requires that you have adequate insurance. While finding an insurance company that offers competitive commercial truck insurance quotes is often easier said than done, the Internet is a great place to begin your research and usually provides you with an easy solution.

Health Insurance Terms You Need to Know

Sometimes, your insurance plan terms – or descriptions of provisions and coverages – can be quite difficult to understand. The following is a list of common health insurance coverage terms and what they mean.

Deductible

A deductible is the amount of money you, as the insured, will need to pay before the benefits from your insurance policy will kick in. This is typically an annual amount, so when your policy is renewed – generally after a year’s time – the deductible would once again be in effect. There are usually separate deductible amounts for each individual as well as a family as a whole.

Co-Payment

A co-payment is a fixed amount that you will be required to pay when receiving medical treatment or visiting your doctor. Typically a co-payment is required for basic doctor visits and when buying prescription medicines.

Co-Insurance

Co-insurance is usually a percentage amount that you, as the insured, is responsible for. For instance, if your co-insurance split is 70/30, the insurance will pay 70% of the cost of a hospital stay or procedure and you will be required to pay the other 30%.

Out-of-Pocket

This is the amount of money you will pay from your own pocket. This expense refers, in general, to the co-payment, co-insurance, and deductible. When the term “annual out-of-pocket maximum” is used, this refers to the total amount you will pay for the year, excluding your premiums.

Pre-existing Conditions

Insurance policies will often not cover a condition that you or your covered family members had prior to becoming insured with a particular company. Some plans will cover pre-existing conditions after a certain length of time, while others won’t cover them at all.

Exclusions

Exclusions are things your insurance policy will not cover; pay close attention to these items as they could include things like emergency room visits and certain types of illnesses.

Coordination of Benefits

Should you have two or more sources to cover healthcare for certain conditions, the insurance company will not double your benefit amount, but will coordinate with the other company to ensure each plan pays for a portion of the service(s) you’ve received.

Grace Period

You have a certain amount of time to pay your health insurance premium after the original date on which it is due before the company will terminate your coverage.

Lifetime Maximum

As the term suggests, this is the maximum amount the health insurance company will pay for your healthcare over your lifetime. Individual lifetime maximums may be different from lifetime maximums for an entire family.