Greetings, all. Like most small businesspeople these days I have been very busy trying to make sure I do those things necessary to keep our office busy and profitable in tough economic times. So I thought this would be a good time to talk about how the financial crisis is affecting the insurance companies.
We have all been reading about the failure of many Wall Street firms and banks. Some even have divisions in the insurance business such as AIG whose a widely publicized problems have many people worried because of their insurance policies with various parts of that group. However while banks and brokerage firms were de-regulated a number of years ago which is part of the reason for the current mess, the same is not true of the insurance business.
Insurance is one of the most heavily regulated businesses and New York in particular is considered the model for other states and around the world in keeping New York insurance companies solvent and able to pay their claims. Even in AIG, it is the parent holding company not the insurance units that are having problems.
As long as you were insured with a New York licensed insurance company you would have nothing to worry about in terms of whether claim would be paid up to $1 million, which is a guarantee that is part of the New York State insurance guaranty fund. And if you are one of those people on Long Island who have coastal or waterfront property and have been forced to get your insurance with an unlicensed carrier such as Lloyds of London or any number of other carriers out there, you are probably even safer because these companies have been managed for the long-term as opposed to the short-term money making goals of some of the big American financial companies which is what caused them to get in trouble.
One of my biggest fears about the insurance industry is that up until recently, there was a lot of talk about deregulation for insurance. What we have seen in this financial crisis is that deregulation leads to sacrifice of long-term viability in favor of short-term profits. That might be fine if you are talking about selling TV sets, but insurance simply must be based on a longer-term perspective including reserves for catastrophes that might only happen every 50 years. If we allowed the same sort of short-term thinking that led the large brokerage houses to package up toxic loans and sell them to people and then run with their commissions, we could easily cause a similar disaster in the insurance business by allowing people to suck out this money instead of putting part of it away for long term catastrophe management.
What we are seeing is a huge drop in value of all stocks in the financial sector based on the problems of the banks and brokerage houses. There really is not much reason for this in the insurance industry but there are probably some great bargains to be had on their stocks right now because they have been trampled with the rest of the sector.
But for the average person just wondering if they would get paid if they needed to put in a claim on their flood insurance or homeowners insurance (or car insurance for that matter) then the answer is that in general there should be nothing to worry about and the vast majority of insurance companies have plenty of money to pay claims. What we will most likely see is some consolidation of companies who do have very strong balance sheets who will be out there looking for other companies they can buy at bargain prices.
Thursday, October 16, 2008
Wednesday, September 10, 2008
Can the web save the 6% Commission? Real Estate
Can the Web Save the 6% Commission? from Future of Real Estate
"The publication polled a sample of 3753 readers who sold or tried to sell a home, 4029 readers who bought a home and 7368 readers who did both. The results are illuminating to anyone in the industry; especially some of its findings which will surely be controversial.
Let’s look a bit deeper at the numbers.
First, the good news. Only 1% of sellers tried to use an online web site (craigslist, forsalebyowner.com etc.) to sell their home. 80% chose to go with an agent. It suggests that any fears that online players may someday distermediate the Realtors seem overblown. Sellers want to work with a real estate professional."
Can the web save the 6% Commission? Real Estate
Can the Web Save the 6% Commission? from Future of Real Estate
"The publication polled a sample of 3753 readers who sold or tried to sell a home, 4029 readers who bought a home and 7368 readers who did both. The results are illuminating to anyone in the industry; especially some of its findings which will surely be controversial.
Let’s look a bit deeper at the numbers.
First, the good news. Only 1% of sellers tried to use an online web site (craigslist, forsalebyowner.com etc.) to sell their home. 80% chose to go with an agent. It suggests that any fears that online players may someday distermediate the Realtors seem overblown. Sellers want to work with a real estate professional."
Tuesday, August 19, 2008
Quick Update on Long Island Flood Insurance
Summer is the season where everybody on Long Island has much better things to do than think about their insurance (as opposed to the rest of the year, when it's everybody's favorite pastime). But there is one item I wanted to post about since it may affect some of the readers.
FEMA, the government agency that oversees the National Flood Insurance Program, has been in the process of re-mapping Nassau and Suffolk counties, which is done about every 10 years. This is the first one for our area since Katrina so expect some changes.The new maps take effect next summer.
But in the meantime FEMA is hosting two meetings in Nassau County for anyone who might be interested in more information. The meetings will run from 4 to 8 p.m. and will be on September 9 at Valley Stream High School on Fletcher Blvd and September 10 at Long Beach Middle School on Lido Blvd.According to the Newsday article, 28,000 more buildings will be brought into flood hazard areas next year when the new maps take effect, and of those, the people who have mortgages insured by FNMA and other government backed plans will get a letter advising that they are now required to buy flood insurance where they did not have to before.
In the meantime, people have an opportunity to be 'grandfathered' into the maps and plans that are in effect now. If you buy flood insurance before the change next summer, and your flood zone changes under the new maps to a higher rate, you will still be able to keep the previous zone. So if you think you might be on the border of a flood zone, and may be in a higher rate class next year, you might think of buying coverage now to lock in your current zone.
FEMA, the government agency that oversees the National Flood Insurance Program, has been in the process of re-mapping Nassau and Suffolk counties, which is done about every 10 years. This is the first one for our area since Katrina so expect some changes.The new maps take effect next summer.
But in the meantime FEMA is hosting two meetings in Nassau County for anyone who might be interested in more information. The meetings will run from 4 to 8 p.m. and will be on September 9 at Valley Stream High School on Fletcher Blvd and September 10 at Long Beach Middle School on Lido Blvd.According to the Newsday article, 28,000 more buildings will be brought into flood hazard areas next year when the new maps take effect, and of those, the people who have mortgages insured by FNMA and other government backed plans will get a letter advising that they are now required to buy flood insurance where they did not have to before.
In the meantime, people have an opportunity to be 'grandfathered' into the maps and plans that are in effect now. If you buy flood insurance before the change next summer, and your flood zone changes under the new maps to a higher rate, you will still be able to keep the previous zone. So if you think you might be on the border of a flood zone, and may be in a higher rate class next year, you might think of buying coverage now to lock in your current zone.
Monday, July 21, 2008
Marketing online for real estate
Yahoo conducts study on how the internet effects home buyers and home sellers....
"Yahoo! Inc., just released the results of a study they did on how the Internet influences home buyers and sellers and specifically how it influences consumers when it comes to selecting a real estate agent.
No great surprises in the results (which were tabulated from a survey of 500 participants)… Yahoo’s found that… Yes… the Internet plays a “pivotal role in the selection process and was central in helping consumers identify agents”....." Future of Real Estate marketing
Marketing online for real estate
Yahoo conducts study on how the internet effects home buyers and home sellers....
"Yahoo! Inc., just released the results of a study they did on how the Internet influences home buyers and sellers and specifically how it influences consumers when it comes to selecting a real estate agent.
No great surprises in the results (which were tabulated from a survey of 500 participants)… Yahoo’s found that… Yes… the Internet plays a “pivotal role in the selection process and was central in helping consumers identify agents”....." Future of Real Estate marketing
Friday, July 11, 2008
Insurance Issues as we head into Hurricane Season 2008
Greetings all. have not posted in a while about the Long Island homeowners insurance market because it has been 'more of the same' for a while now. That's not to say the situation has gotten better, but change is what makes news, and there have not been many changes making their way to the public for a while.
It seems a little strange to be blogging about hurricane and flood catastrophes as I sit in my office and look out on to one of the most beautiful days we have had. Still, the 2008 hurricane season is underway, with Bertha chugging around the Atlantic as a reminder. Of course once again you can find experts who are saying that this season will be more active than normal, but those same experts have been saying that for several years and so far they have been wrong. I only wish I had a job like the weatherman, where I could be wrong half the time and still get paid.
There has been one interesting development recently that could make it easier to get homeowners or similar insurance down near the water. The New York Property Insurance Underwriting Association has been permanently authorized by the state legislature. This may not seem like much to the average person, but for years now, this New York State-backed insurer of last resort has had to be re-authorized every year, and has been held hostage by various groups within the legislature. They would only authorize the renewal if downstate legislators, who had to make sure this coverage was available to their constituents, would in turn vote for other things that they did not necessarily want. Ain't politics wonderful?
In any event, they have now been made permanent. In addition, they have been authorized to offer broader coverages, and incentives to partner with regular insurance companies who would then be able to write supplemental coverage known as 'wraparound' so that the two policies together will provide something closer to a homeowners policy. Naturally it will take some time to put this in place, but kudos to the state legislature for getting this done.
Meanwhile, on the flood insurance side, the re-mapping of Nassau and Suffolk Counties continues. Newsday had a big article this week on the changes that are being revealed now in Nassau. A lot of folks who were previously right on the edge of a 'special flood hazard area' as defined by FEMA and the National Flood Insurance Program may now find themselves drawn into the hazard area by the new maps, which use more accurate mapping techniques as well as information drawn from the government's experiences with Katrina and other flooding situations.
If you think you are close to a flood hazard area but not in one, you might want to think about buying flood insurance soon. If you are outside the zone, in what's called a 'preferred zone' and buy coverage at those low rates, then it changes, you are grandfathered in to the low rates for as long as you keep your home. The difference can be thousands of dollars. And if it turns out that you were NOT one of those now lumped in to the higher hazard area, you can always stop carrying the flood coverage in a year or two when we know more about the new maps.
As always, for more information you can contact us through our web site at www.NYInsuranceWithSerivice.com.
It seems a little strange to be blogging about hurricane and flood catastrophes as I sit in my office and look out on to one of the most beautiful days we have had. Still, the 2008 hurricane season is underway, with Bertha chugging around the Atlantic as a reminder. Of course once again you can find experts who are saying that this season will be more active than normal, but those same experts have been saying that for several years and so far they have been wrong. I only wish I had a job like the weatherman, where I could be wrong half the time and still get paid.
There has been one interesting development recently that could make it easier to get homeowners or similar insurance down near the water. The New York Property Insurance Underwriting Association has been permanently authorized by the state legislature. This may not seem like much to the average person, but for years now, this New York State-backed insurer of last resort has had to be re-authorized every year, and has been held hostage by various groups within the legislature. They would only authorize the renewal if downstate legislators, who had to make sure this coverage was available to their constituents, would in turn vote for other things that they did not necessarily want. Ain't politics wonderful?
In any event, they have now been made permanent. In addition, they have been authorized to offer broader coverages, and incentives to partner with regular insurance companies who would then be able to write supplemental coverage known as 'wraparound' so that the two policies together will provide something closer to a homeowners policy. Naturally it will take some time to put this in place, but kudos to the state legislature for getting this done.
Meanwhile, on the flood insurance side, the re-mapping of Nassau and Suffolk Counties continues. Newsday had a big article this week on the changes that are being revealed now in Nassau. A lot of folks who were previously right on the edge of a 'special flood hazard area' as defined by FEMA and the National Flood Insurance Program may now find themselves drawn into the hazard area by the new maps, which use more accurate mapping techniques as well as information drawn from the government's experiences with Katrina and other flooding situations.
If you think you are close to a flood hazard area but not in one, you might want to think about buying flood insurance soon. If you are outside the zone, in what's called a 'preferred zone' and buy coverage at those low rates, then it changes, you are grandfathered in to the low rates for as long as you keep your home. The difference can be thousands of dollars. And if it turns out that you were NOT one of those now lumped in to the higher hazard area, you can always stop carrying the flood coverage in a year or two when we know more about the new maps.
As always, for more information you can contact us through our web site at www.NYInsuranceWithSerivice.com.
Saturday, July 5, 2008
Insurance Claims Secrets - The INSIDE STORY
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! )
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.
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
Wednesday, May 28, 2008
Insurance Claims $147 million Storm Damage
"Insurance industry officials say they expect $147 million worth of claims from the deadly tornadoes and hailstorms in northern Colorado last week. The Rocky Mountain Insurance Institute said Tuesday it expects a total of 20,000 claims for damage to homes and cars. State officials say the tornadoes destroyed nearly 80 homes and damaged roughly 770 others. Oscar Manchester, 52, was killed at a campground near Greeley. The Insurance Institute projects property owners will file 8,000 claims from the tornadoes and hailstorms combined, ranging from window damage to homes that were destroyed. The institute projects 12,000 auto claims ranging from hail dents to totaled vehicles. The $147 million estimate would make it the fourth-most-costly storm in state history". ......Insurance Claims
Insurance Claims $147 million Storm Damage
"Insurance industry officials say they expect $147 million worth of claims from the deadly tornadoes and hailstorms in northern Colorado last week. The Rocky Mountain Insurance Institute said Tuesday it expects a total of 20,000 claims for damage to homes and cars. State officials say the tornadoes destroyed nearly 80 homes and damaged roughly 770 others. Oscar Manchester, 52, was killed at a campground near Greeley. The Insurance Institute projects property owners will file 8,000 claims from the tornadoes and hailstorms combined, ranging from window damage to homes that were destroyed. The institute projects 12,000 auto claims ranging from hail dents to totaled vehicles. The $147 million estimate would make it the fourth-most-costly storm in state history". ......Insurance Claims
Saturday, May 24, 2008
Whose Insurance Does What during "DELAYED POSSESSION"?
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 homeMost 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.
2. Using Renters Insurance if they're moving to a rental
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.
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
Friday, May 23, 2008
Google Maps with Real Estate Listings
Google Maps adds Real Estate Listings
"There's a new option to search for real estate: click on "show search options" and select "real estate" from the drop-down. The search results don't seem to be powered by come from Google Base. Google shows structured information about houses and lets you refine the results by price, number of bedrooms and bathrooms. Even if there aren't too many advanced features, it's interesting to see that Google Maps wants to index all the information that could be displayed on a map......Google Maps Real Estate
Kentucky Insurance- Life Insurance
Insurance in Kentucky
Google Maps Real Estate Listing Search Page
Kentucky Housing Market
"There's a new option to search for real estate: click on "show search options" and select "real estate" from the drop-down. The search results don't seem to be powered by come from Google Base. Google shows structured information about houses and lets you refine the results by price, number of bedrooms and bathrooms. Even if there aren't too many advanced features, it's interesting to see that Google Maps wants to index all the information that could be displayed on a map......Google Maps Real Estate
Kentucky Insurance- Life Insurance
Insurance in Kentucky
Google Maps Real Estate Listing Search Page
Kentucky Housing Market
Google Maps with Real Estate Listings
Google Maps adds Real Estate Listings
"There's a new option to search for real estate: click on "show search options" and select "real estate" from the drop-down. The search results don't seem to be powered by come from Google Base. Google shows structured information about houses and lets you refine the results by price, number of bedrooms and bathrooms. Even if there aren't too many advanced features, it's interesting to see that Google Maps wants to index all the information that could be displayed on a map......Google Maps Real Estate
Kentucky Insurance- Life Insurance
Insurance in Kentucky
Google Maps Real Estate Listing Search Page
Kentucky Housing Market
"There's a new option to search for real estate: click on "show search options" and select "real estate" from the drop-down. The search results don't seem to be powered by come from Google Base. Google shows structured information about houses and lets you refine the results by price, number of bedrooms and bathrooms. Even if there aren't too many advanced features, it's interesting to see that Google Maps wants to index all the information that could be displayed on a map......Google Maps Real Estate
Kentucky Insurance- Life Insurance
Insurance in Kentucky
Google Maps Real Estate Listing Search Page
Kentucky Housing Market
Kentucky Real Estate Investors
Kentucky Real Estate Investors
"KREIA is a networking forum to educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. Whether you are just starting out in real estate investing, or are working on your hundredth deal, KREIA can help you learn more, earn more, and have more fun doing it. ....."
KREIA offers important resources for property investors. KREIA normally meets on the last Thursday of the month at Mastersons. Dick Wats Insurance, proud members of KREIA
Rental-Property-Insurance.com
"KREIA is a networking forum to educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. Whether you are just starting out in real estate investing, or are working on your hundredth deal, KREIA can help you learn more, earn more, and have more fun doing it. ....."
KREIA offers important resources for property investors. KREIA normally meets on the last Thursday of the month at Mastersons. Dick Wats Insurance, proud members of KREIA
Rental-Property-Insurance.com
Kentucky Real Estate Investors
Kentucky Real Estate Investors
"KREIA is a networking forum to educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. Whether you are just starting out in real estate investing, or are working on your hundredth deal, KREIA can help you learn more, earn more, and have more fun doing it. ....."
KREIA offers important resources for property investors. KREIA normally meets on the last Thursday of the month at Mastersons. Dick Wats Insurance, proud members of KREIA
Rental-Property-Insurance.com
"KREIA is a networking forum to educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. Whether you are just starting out in real estate investing, or are working on your hundredth deal, KREIA can help you learn more, earn more, and have more fun doing it. ....."
KREIA offers important resources for property investors. KREIA normally meets on the last Thursday of the month at Mastersons. Dick Wats Insurance, proud members of KREIA
Rental-Property-Insurance.com
Real Estate Investing Rentals- Get Highest Prices
"Success in residential real estate investing is determined by a variety of factors. One of these factors is how well an investor can market the rental property. Whether a potential renter is looking for houses in 'Louisville, KY or Jefferson County Kentucky or Metro Louisivlle' or anywhere else in the United States, these tips can help you make sure your property is seen....."
Low Rate Rental Property Insurance
Dick Watts Insurance 502-245-3625
20 Factors to Increase your Return on Investment on Rental Property......
Real Estate Investing Rentals Get the Highest Prices
Low Rate Rental Property Insurance
Dick Watts Insurance 502-245-3625
20 Factors to Increase your Return on Investment on Rental Property......
Real Estate Investing Rentals Get the Highest Prices
Real Estate Investing Rentals- Get Highest Prices
"Success in residential real estate investing is determined by a variety of factors. One of these factors is how well an investor can market the rental property. Whether a potential renter is looking for houses in 'Louisville, KY or Jefferson County Kentucky or Metro Louisivlle' or anywhere else in the United States, these tips can help you make sure your property is seen....."
Low Rate Rental Property Insurance
Dick Watts Insurance 502-245-3625
20 Factors to Increase your Return on Investment on Rental Property......
Real Estate Investing Rentals Get the Highest Prices
Low Rate Rental Property Insurance
Dick Watts Insurance 502-245-3625
20 Factors to Increase your Return on Investment on Rental Property......
Real Estate Investing Rentals Get the Highest Prices
Thursday, May 8, 2008
I've had a FIRE! What do I do now?
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.
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 ORGANIZEDTAKE 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.
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
Sunday, April 27, 2008
A word about DEDUCTIBLES...
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.
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
- 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 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....
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
Tuesday, April 15, 2008
Kentucky Foreclosures up 45% since Feb
Kentucky Foreclosures up 45% Since Feb.
"Kentucky foreclosures fell 1.3 percent in March from a year earlier, but
rose 45.2 percent from February, according to the latest report from RealtyTrac
Inc.
The state ranked 38th in the nation in terms of foreclosure rates.
Kentucky had 691 filings, for a rate of one foreclosure filing for every 2,733
households, in March.
Indiana had 5,119 foreclosures in March, for a rate of
one filing for every 538 households. That ranked it 11th in the nation.
Indiana foreclosures rose 18.2 percent in March from a year earlier, and
fell 0.5 percent from February. ...." Busines First Kentucky Foreclosures
Kentucky Foreclosures up 45% since Feb
Kentucky Foreclosures up 45% Since Feb.
"Kentucky foreclosures fell 1.3 percent in March from a year earlier, but
rose 45.2 percent from February, according to the latest report from RealtyTrac
Inc.
The state ranked 38th in the nation in terms of foreclosure rates.
Kentucky had 691 filings, for a rate of one foreclosure filing for every 2,733
households, in March.
Indiana had 5,119 foreclosures in March, for a rate of
one filing for every 538 households. That ranked it 11th in the nation.
Indiana foreclosures rose 18.2 percent in March from a year earlier, and
fell 0.5 percent from February. ...." Busines First Kentucky Foreclosures
Thursday, April 10, 2008
A few thoughts on PROPERLY insuring your Rental Property
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.
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
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…You can insure your rental property, your personal property and your liability exposure in one simple policy.
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.
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.
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
Tuesday, April 8, 2008
Pending Home Sales Hit Record Low in Feb
Pending Home Sales Hit Record Low in Feb 08
An industry group said Tuesday that pending U.S. home sales fell in February to the lowest
reading since the index began, signaling the housing market distress is not
yet over. The National Association of Realtors' seasonally
adjusted index of pending sales for existing homes fell to 84.6 from January's
upwardly revised reading of 86.2. The index stood at 107.6 in February 2007.....more
Pending Home Sales Hit Record Low in Feb
Pending Home Sales Hit Record Low in Feb 08
An industry group said Tuesday that pending U.S. home sales fell in February to the lowest
reading since the index began, signaling the housing market distress is not
yet over. The National Association of Realtors' seasonally
adjusted index of pending sales for existing homes fell to 84.6 from January's
upwardly revised reading of 86.2. The index stood at 107.6 in February 2007.....more
Foreclosures Shown on Heat Map
Foreclosures shown on heat map from TechCrunch
"If you want to see in stark colors exactly how the mortgage credit crisis is spreading across the country, go to real estate search site HotPads and look at the foreclosure heat maps in your area. These are map mashups that take foreclosure data from RealtyTrac and overlay them on a color-coded map. Red indicates a high rate of property foreclosures per capita, and blue indicates a low level. Since foreclosures are now hitting record rates, there is a lot of red on these maps...." TechCrunch
"If you want to see in stark colors exactly how the mortgage credit crisis is spreading across the country, go to real estate search site HotPads and look at the foreclosure heat maps in your area. These are map mashups that take foreclosure data from RealtyTrac and overlay them on a color-coded map. Red indicates a high rate of property foreclosures per capita, and blue indicates a low level. Since foreclosures are now hitting record rates, there is a lot of red on these maps...." TechCrunch
Foreclosures Shown on Heat Map
Foreclosures shown on heat map from TechCrunch
"If you want to see in stark colors exactly how the mortgage credit crisis is spreading across the country, go to real estate search site HotPads and look at the foreclosure heat maps in your area. These are map mashups that take foreclosure data from RealtyTrac and overlay them on a color-coded map. Red indicates a high rate of property foreclosures per capita, and blue indicates a low level. Since foreclosures are now hitting record rates, there is a lot of red on these maps...." TechCrunch
"If you want to see in stark colors exactly how the mortgage credit crisis is spreading across the country, go to real estate search site HotPads and look at the foreclosure heat maps in your area. These are map mashups that take foreclosure data from RealtyTrac and overlay them on a color-coded map. Red indicates a high rate of property foreclosures per capita, and blue indicates a low level. Since foreclosures are now hitting record rates, there is a lot of red on these maps...." TechCrunch
Monday, April 7, 2008
FAQ's California Wireless Law effective July 1, 2008
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.
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
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.
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
Wednesday, April 2, 2008
The Paint on my Fender Isn't Going To Match the Rest of the Car
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!
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!
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
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!
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
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!
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
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!
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
Saturday, March 29, 2008
Vacant Homes for Sale... Insurance carriers
Vacant Homes for Sale....Insurance Carriers:
"Insurers in general don't like to cover vacant homes. That's because such occurrences as theft, vandalism, fire and water damage are far more likely to happen in vacant houses than occupied ones and the resultant damage is more likely to be worse because no one is around to report it or stop it......" Vacant Homes for sale, insurance carriers
Vacant Homes for Sale... Insurance carriers
Vacant Homes for Sale....Insurance Carriers:
"Insurers in general don't like to cover vacant homes. That's because such occurrences as theft, vandalism, fire and water damage are far more likely to happen in vacant houses than occupied ones and the resultant damage is more likely to be worse because no one is around to report it or stop it......" Vacant Homes for sale, insurance carriers
Learning About Vacant Homes....
Learning about Vacant Homes:
Rental-Property-Insurance.com"Homeowner’s insurance is something that every homeowner must have in place at all times. But one issue concerning homeowner’s insurance has been occurring a lot lately and causing a variety of problems for homeowners who have a bought a new home yet have not sold their old one yet.
And that is the issue of insuring vacant homes.
In today’s market, it is not uncommon for homeowners to buy a new home without selling their old one first." Vacant Homes
Learning About Vacant Homes....
Learning about Vacant Homes:
Rental-Property-Insurance.com"Homeowner’s insurance is something that every homeowner must have in place at all times. But one issue concerning homeowner’s insurance has been occurring a lot lately and causing a variety of problems for homeowners who have a bought a new home yet have not sold their old one yet.
And that is the issue of insuring vacant homes.
In today’s market, it is not uncommon for homeowners to buy a new home without selling their old one first." Vacant Homes
Real Estate News on Twitter, Do you Twitter?
Now you can keep up with Real Estate news on Twitter with your free Twitter account. Inman News blog now offers info via Twitter:
"you can now keep track of all the breaking real estate headlines from Inman News via Twitter.Just head over to InmanNews profile on Twitter, sign up for your own account and click the 'Follow' button. Do the same on any other accounts you find and you'll instantly start receiving automatic updates from them.
I found a few other sources on Twitter you may consider following adding; CNN, BBC, The Financial Times and the New York Times - you may even want to do a search for your local news outlets too (I found The Oregonian, for example).
Do this and you can stay on top of all the news as it hits and never be caught off guard.".... from Inman News Blog
More Information:
Real Estate News on Twitter, Do you Twitter?
Now you can keep up with Real Estate news on Twitter with your free Twitter account. Inman News blog now offers info via Twitter:
"you can now keep track of all the breaking real estate headlines from Inman News via Twitter.Just head over to InmanNews profile on Twitter, sign up for your own account and click the 'Follow' button. Do the same on any other accounts you find and you'll instantly start receiving automatic updates from them.
I found a few other sources on Twitter you may consider following adding; CNN, BBC, The Financial Times and the New York Times - you may even want to do a search for your local news outlets too (I found The Oregonian, for example).
Do this and you can stay on top of all the news as it hits and never be caught off guard.".... from Inman News Blog
More Information:
Wednesday, March 26, 2008
Flood and Wind Insurance Reform in Congress
The National Flood Insurance program, administered through FEMA which is in turn part of the Department of Homeland Security, is currently how the vast majority of Long Islanders and people all around the country buy their flood insurance when needed. The idea of the program was that because flood is catastrophic in nature, meaning that it can affect large numbers of people at the same time, that only the taxing power of the federal government was enough to make sure that when the time came to pay huge claims, the money would be there.
The problem is that the rates being charged in the program are not nearly enough to pay the claims, so additional monies have had to be put in over the years by Congress, and those funds basically come out of taxes paid be everybody, not just those in the flood hazard areas. There are some social arguments back and forth about whether that's right or wrong, but after Katrina, it was decided that the program needed to be revised to be 'actuarially sound', meaning that it would collect enough premium dollars to pay the claims, without resorting to general tax revenues or other bailouts. The difference is many billions of dollars, and the answer they have come up with is to include more people in the flood hazard areas and also to increase rates.
But since a couple of the people whose homes were destroyed in Katrina happened to be influential members of Congress, they are not looking to stop there. In trying to judge who was responsible to pay the claims of Katrina, there was a lot of finger-pointing on the part of insurance companies who denied some claims that they felt should have been paid under flood coverage. However since many of the affected residents had been told that the work of the Army Corps of Engineers, in building the levee system, would protect them from flood, they did not carry flood insurance and so were left with no way to rebuild.
What is being proposed is to move windstorm coverage from the private homeowners insurance industry to the government-backed flood insurance program, and price it accordingly. Interestingly, this has the insurance industry up in arms. Although as we know here on Long Island, and particularly as you get farther out on the South Shore of Suffolk County, many insurance companies are shying away from providing policies at all because of the windstorm exposure.
Now this sets up an interesting position for the insurance carriers. On the one hand, they are arguing that wind insurance should NOT be taken out of their hands and put into the Government hands. In general, a founding principle of our country was private ownership, and that the Government should not set itself up as a competitor to private industry. But there are many cases (Medicare, Workers Comp...) where private industry was not up to the task and the government stepped in.
To me, it seems simple enough - if covering losses for hurricanes is a money-losing proposition for insurance companies (which one would have to think it must be if they won't write more coverage) then why would they care if the government took it over? And virtually any argument that could be made for or against the government covering windstorm could be easily turned into the same argument for flood insurance. So which is it? The coverage is too risky and they don't want it, or it's profitable and should be left in private hands? The answers being given by the industry suggest they are trying to play both sides of the fence.
As for me as an agent, I have to say it doesn't really matter. I sell both the government flood insurance as well as home insurance for all kinds of waterfront property. Our job is to deliver, explain, and service the product. So I have no great stake in the outcome here, but I know a snow job when I see one.
The problem is that the rates being charged in the program are not nearly enough to pay the claims, so additional monies have had to be put in over the years by Congress, and those funds basically come out of taxes paid be everybody, not just those in the flood hazard areas. There are some social arguments back and forth about whether that's right or wrong, but after Katrina, it was decided that the program needed to be revised to be 'actuarially sound', meaning that it would collect enough premium dollars to pay the claims, without resorting to general tax revenues or other bailouts. The difference is many billions of dollars, and the answer they have come up with is to include more people in the flood hazard areas and also to increase rates.
But since a couple of the people whose homes were destroyed in Katrina happened to be influential members of Congress, they are not looking to stop there. In trying to judge who was responsible to pay the claims of Katrina, there was a lot of finger-pointing on the part of insurance companies who denied some claims that they felt should have been paid under flood coverage. However since many of the affected residents had been told that the work of the Army Corps of Engineers, in building the levee system, would protect them from flood, they did not carry flood insurance and so were left with no way to rebuild.
What is being proposed is to move windstorm coverage from the private homeowners insurance industry to the government-backed flood insurance program, and price it accordingly. Interestingly, this has the insurance industry up in arms. Although as we know here on Long Island, and particularly as you get farther out on the South Shore of Suffolk County, many insurance companies are shying away from providing policies at all because of the windstorm exposure.
Now this sets up an interesting position for the insurance carriers. On the one hand, they are arguing that wind insurance should NOT be taken out of their hands and put into the Government hands. In general, a founding principle of our country was private ownership, and that the Government should not set itself up as a competitor to private industry. But there are many cases (Medicare, Workers Comp...) where private industry was not up to the task and the government stepped in.
To me, it seems simple enough - if covering losses for hurricanes is a money-losing proposition for insurance companies (which one would have to think it must be if they won't write more coverage) then why would they care if the government took it over? And virtually any argument that could be made for or against the government covering windstorm could be easily turned into the same argument for flood insurance. So which is it? The coverage is too risky and they don't want it, or it's profitable and should be left in private hands? The answers being given by the industry suggest they are trying to play both sides of the fence.
As for me as an agent, I have to say it doesn't really matter. I sell both the government flood insurance as well as home insurance for all kinds of waterfront property. Our job is to deliver, explain, and service the product. So I have no great stake in the outcome here, but I know a snow job when I see one.
Thursday, March 13, 2008
Mortgage Rates Increase
Mortgage Rates Increase
"Average 30-year fixed-rate mortgages hit 6.13%, up from 6.03%, the fourth increase in the past five weeks, Freddie Mac reported Thursday.
Rates on 30-year mortgages dropped below the 6% threshold in the second week of January and stayed there for six straight weeks as the economic slowdown stirred concerns about a possible recession....." Mortgage Rates Increase
"Average 30-year fixed-rate mortgages hit 6.13%, up from 6.03%, the fourth increase in the past five weeks, Freddie Mac reported Thursday.
Rates on 30-year mortgages dropped below the 6% threshold in the second week of January and stayed there for six straight weeks as the economic slowdown stirred concerns about a possible recession....." Mortgage Rates Increase
Mortgage Rates Increase
Mortgage Rates Increase
"Average 30-year fixed-rate mortgages hit 6.13%, up from 6.03%, the fourth increase in the past five weeks, Freddie Mac reported Thursday.
Rates on 30-year mortgages dropped below the 6% threshold in the second week of January and stayed there for six straight weeks as the economic slowdown stirred concerns about a possible recession....." Mortgage Rates Increase
"Average 30-year fixed-rate mortgages hit 6.13%, up from 6.03%, the fourth increase in the past five weeks, Freddie Mac reported Thursday.
Rates on 30-year mortgages dropped below the 6% threshold in the second week of January and stayed there for six straight weeks as the economic slowdown stirred concerns about a possible recession....." Mortgage Rates Increase
Wednesday, March 12, 2008
Borrowing from a 401K should be last resort
Borrowing from a 401K should be last resort
Cash-strapped consumers are developing a bad habit: using their retirement
savings to tackle everything from credit-card debt and late mortgage payments to
income tax bills.
In 2007, 18% of employees reported taking out a loan from
their 401(k) or 403(b) (the employer-funded equivalent for public educators and
nonprofit employees), up from 11% in 2006, according to the Transamerica Center
for Retirement Studies, a nonprofit. ... .Borrowing from 401k last resort
Borrowing from a 401K should be last resort
Borrowing from a 401K should be last resort
Cash-strapped consumers are developing a bad habit: using their retirement
savings to tackle everything from credit-card debt and late mortgage payments to
income tax bills.
In 2007, 18% of employees reported taking out a loan from
their 401(k) or 403(b) (the employer-funded equivalent for public educators and
nonprofit employees), up from 11% in 2006, according to the Transamerica Center
for Retirement Studies, a nonprofit. ... .Borrowing from 401k last resort
Tuesday, March 11, 2008
You and Your Liability Umbrella
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.
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
Monday, March 10, 2008
Can the Fed cut Foreclosures?
Can the Fed cut foreclosures in 2008?
With the tough times of 2007 over and done, the big question in real estate is whether 2008 will be any better.
Mortgage reform legislation has passed in both the House and the Senate, the President has recommended an interest-rate freeze for certain loans and HUD has introduced the FHASecure program. These efforts, however, have had little practical impact because final legislation from Capitol Hill has been neither completed nor signed, the President’s proposals are voluntary and as of mid-December the FHASecure program had only funded several hundred loans......Foreclosures
addl information: Foreclosures
Can the Fed cut Foreclosures?
Can the Fed cut foreclosures in 2008?
With the tough times of 2007 over and done, the big question in real estate is whether 2008 will be any better.
Mortgage reform legislation has passed in both the House and the Senate, the President has recommended an interest-rate freeze for certain loans and HUD has introduced the FHASecure program. These efforts, however, have had little practical impact because final legislation from Capitol Hill has been neither completed nor signed, the President’s proposals are voluntary and as of mid-December the FHASecure program had only funded several hundred loans......Foreclosures
addl information: Foreclosures
Thursday, February 28, 2008
Big Changes in Long Island Flood Insurance
Hello all, and please accept my apologies for not having written a blog entry in quite some time. But this morning's Newsday article regarding flood insurance had something in it that got me so frustrated that I had to write.
The article is about the re-mapping of flood zones on Long Island by the FEMA, the government agency in charge of the national flood insurance program. They are using new equipment and techniques to reevaluate all the flood maps which may or may not result in people now being required by their bank or mortgage company to carry flood insurance where they may not have been required before.
FEMA is suggesting that some who live near a flood zone are currently outside of it might want to think about purchasing flood insurance now because the price may change dramatically if they are included in a flood zone after the new maps are issued. For instance right now someone who is not in a flood hazard area here on Long Island would pay under $400 for the maximum flood insurance available from the government. If your house is deemed to be in a flood hazard area when the new maps are complete your rate could easily be four to five times higher.
Under FEMA rules, if you have a flood insurance in place and your zone changes you grandfathered in to the old zone for as long as you keep your insurance in force. So if you live close to a flood zone but outside it you might want to think about buying one of the inexpensive policies now. If you end up in a flood zone and your bank requires the coverage, you will be locked into the lower rate. If you remain outside of flood zone under the new maps, you could cancel the policy after a year if you wish. (FEMA will not allow a policy to be canceled in the middle of the year unless you sell your home)
My problem is that in the article there is a quote from County Executive Steve Levy saying that homeowners should be allowed to make their own decision on whether to carry flood insurance or not, as opposed to having that decision made for them by FEMA or their bank. The fact is that we hear every day from people who are only buying flood insurance because their bank is forcing them because of government regulations. They feel that the fact that they've never seen a flood in their home means they will never be flooded. Unfortunately this is not the case and we only need to look at the ongoing problems resulting from hurricane Katrina to see that.
In addition, the idea coming from the County Executive that people should be able to choose which government programs and mandates they participate in and which they choose not to is absurd. If that were the case most people on the South Shore would probably still have cesspools in their backyards except that the government mandated participation in the Southwest Sewer District in order to protect our drinking water in the long run. The same logic is behind a part of our sales tax collections which go to fund open space purchases.
And how about school taxes? I have no children in school anymore. Can I opt out of school taxes because I no longer see the direct benefit to me? I found this to be a very irresponsible statement by the County Executive and contrary to the whole reason for the existence of virtually every government program. It's fine to be a fiscal conservative with the general opinion that government should take the least role possible in people's day-to-day lives. However say that these decisions should all be left to the individual homeowner and rely on them to make the best decision for everybody for the long-term simply does not work and is not valid.
The article is about the re-mapping of flood zones on Long Island by the FEMA, the government agency in charge of the national flood insurance program. They are using new equipment and techniques to reevaluate all the flood maps which may or may not result in people now being required by their bank or mortgage company to carry flood insurance where they may not have been required before.
FEMA is suggesting that some who live near a flood zone are currently outside of it might want to think about purchasing flood insurance now because the price may change dramatically if they are included in a flood zone after the new maps are issued. For instance right now someone who is not in a flood hazard area here on Long Island would pay under $400 for the maximum flood insurance available from the government. If your house is deemed to be in a flood hazard area when the new maps are complete your rate could easily be four to five times higher.
Under FEMA rules, if you have a flood insurance in place and your zone changes you grandfathered in to the old zone for as long as you keep your insurance in force. So if you live close to a flood zone but outside it you might want to think about buying one of the inexpensive policies now. If you end up in a flood zone and your bank requires the coverage, you will be locked into the lower rate. If you remain outside of flood zone under the new maps, you could cancel the policy after a year if you wish. (FEMA will not allow a policy to be canceled in the middle of the year unless you sell your home)
My problem is that in the article there is a quote from County Executive Steve Levy saying that homeowners should be allowed to make their own decision on whether to carry flood insurance or not, as opposed to having that decision made for them by FEMA or their bank. The fact is that we hear every day from people who are only buying flood insurance because their bank is forcing them because of government regulations. They feel that the fact that they've never seen a flood in their home means they will never be flooded. Unfortunately this is not the case and we only need to look at the ongoing problems resulting from hurricane Katrina to see that.
In addition, the idea coming from the County Executive that people should be able to choose which government programs and mandates they participate in and which they choose not to is absurd. If that were the case most people on the South Shore would probably still have cesspools in their backyards except that the government mandated participation in the Southwest Sewer District in order to protect our drinking water in the long run. The same logic is behind a part of our sales tax collections which go to fund open space purchases.
And how about school taxes? I have no children in school anymore. Can I opt out of school taxes because I no longer see the direct benefit to me? I found this to be a very irresponsible statement by the County Executive and contrary to the whole reason for the existence of virtually every government program. It's fine to be a fiscal conservative with the general opinion that government should take the least role possible in people's day-to-day lives. However say that these decisions should all be left to the individual homeowner and rely on them to make the best decision for everybody for the long-term simply does not work and is not valid.
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