Regency Insurance Agency Blog

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Homeowners Insurance - Buyer Beware! I received a call today from an existing client telling me he received a better homeowners rate from a national carrier. He was going to purchase the policy online and was asking why our insurance was higher. When he told me the name of the carrier, I immediately knew why. Insurance companies are losing money on their homeowners products. Claims have been very high over the last 3 years .In fact some companies are paying out $1.30 in claims for every $1.00 they are taking in on premium. What are insurance companies doing about it? One of three things: Raising premiums (as much as 40%), raising deductibles, and/or lowering coverage. I explained to the client above that the internet policy he was looking at had a deductible for wind and hail claims that was the greater of $2,500 or 1% of the dwelling amount. That means if you have a home insured for $300,000, you'll pay a deductible of $3,000 for any claim caused by wind or hail. This company also limited their cost by lowering coverage. I explained to my client that any roof loss or siding loss would be settled on an actual cash value instead of replacement cost if the roof (or siding) was over 10 years old. So, let's say you have a 15 year old home insured for $250,000. One night, a hail storm causes severe damage to your roof. Now let's say the replacement cost of the roof is $12,000 (roof prices have shot up over the last 5 years). The low priced internet policy will determine the life of your roof (20 years?), and only pay the cash value (replacement cost less depreciation) less the deductible. In this case, the payout is based on replacement cost of $12,000 less the depreciation of $9,000 (15 year old roof with a 20 year life) which equals $3,000. Now subtract your deductible (1% of $250,000 or $2,500) and you end up receiving a whopping check for $500! Not much of a deal no matter what the premium savings. Some clients don't want to talk to their agent, especially when it's about leaving for another company or agency. But, it's in your best interest to do so. Especially when trying to buy these complicated products on your own. A little bit more premium now could end up saving you thousands later. Regis Coustillac \| \| Posted Friday, February 10 2012 4:42 PM View / Post Comments
Texting + Driving = Tragedy It’s more dangerous on the road than you think. “American Agent & Broker” reports that, according to the National Highway Traffic Safety Administration (NHTSA), nearly half of all drivers 21 to 24 have texted and emailed while driving. In fact, at any given minute, one in every 100 drivers (of all ages) were using hand-held devices while driving. What does these mean in terms of accidents? The Federal Communication Commission’s website (fcc.gov) cites a shocking statistic from the NHTSA. In 2008, 16% of all fatal crashes (5,800 deaths), 21% of crashes resulting in an injury (515,000 people wounded) was caused by driver distraction. What’s the lesson? Be careful and be aware of those around you. Now more than ever, it pays to be a defensive driver. Regis Coustillac \| \| Posted Monday, January 09 2012 3:14 PM View / Post Comments Tags : texting, driving, deaths, crashes
Windshield Claims...Don't Wait Too Long! This is the time of year when windshield claims become more common. Road salt, debris, and alot of other gunk seems to be on the roads just waiting to be picked up by the rear tire of the guy in front of you....POP! The next thing you know, you've got a chip in the windshield. Now if you're like me (which means your old enough to remember when men wore hats...real hats...fedoras!), you were told that you might as well wait until the windshield completely cracks before you replace it. Not so anymore, as long as you have comprehensive coverage on the vehicle. Advances in technology allow glass companies to repair many of these little dings. In fact, most insurance companies will waive your comprehensive deductible if the windshield is repairable. It doesn't hurt to check it out. A qualified glass representative will be able to tell you if the damage can be fixed. By the way...do you have a $500 deductible on comprehensive? Call us to see what a $100 deductible would be. You might be pleasantly surprised. If you are an existing client, we can change it with a phone call (as long as you don't have existing damage to the vehicle). Also, ask us about Auto-Owners Insurance. They offer a $0 glass deductible at a small extra cost. \| \| Posted Saturday, January 07 2012 11:49 AM View / Post Comments Tags : auto insurance, winshields, chip, comprehensive

Blog Archive

2012
- February
  - Homeowners Insurance - Buyer Beware!
- January
  - Texting + Driving = Tragedy
  - Windshield Claims...Don't Wait Too Long!