Source: http://www.flickr.com/photos/aaronjackhalls/499159754/

I have a stationary travel trailer. It’s parked in an RV park and I use it as a seasonal home.  I told my agent I need insurance for my travel trailer.  I paid the premiums.  I’m covered, right?   Unfortunately, there are many types of coverage available for travel trailers, and if your agent simply added your trailer onto your car insurance policy, you have a HUGE gap in coverage.

To understand this gap, you must first understand what exactly the auto policy covers with regards to travel trailers.  I would encourage you to look at your policy right now.  You will notice the following coverages on the trailer: comprehensive (or other than collision), collisiion, and possibly some sort of roadside assistance or emergency expense.  What you will not see is liability coverage.  Why?  Coverage on the auto policy is designed to cover vehicles on the road.  An auto policy only provides liability protection when using the RV as a vehicle – in other words, while it’s being towed.  Once it is parked, there is no liability coverage afforded under the auto policy.

A stationary trailer owner needs liability protection, just like any homeowner does.  Some claims examples are:  A trip and fall or other injury on your site or in your trailer, Animal bite, and Fire legal liability – your trailer catches fire and burns the trailer next door.  Without this liability protection, you would be paying for these damages out of your own pocket.

In addition to lack of liability coverage, surely you have personal belongings in your trailer – furniture, electronics, kitchen supplies, clothing, and more.  You may also have adjacent structures (like a sun room, or decking), those aren’t covered on the auto policy either.

Don’t worry, there is insurance available for park model trailers and traditional RV travel trailers that are used as a primary or seacondary/seasonal residence.  The coverage is affordable and offers very broad coverage.  If you are reading this and know that your trailer is covered on your car insurance, you really need to give this a second look now, before the unthinkable happens.    – Sarah Cordova

Sarah Cordvoa is the mobile home and stationary trailer specialist at Engle & Associates Insurance Brokers, a local full service brokerage serving the Central Coast for over 30 years.    For more information on stationary trailer coverage, please call Sarah Cordova at 805-544-8929 or email her at Sarah@engleinsurance.com. 

Click here if you want to to know more about RV insurance or get a free California RV Insurance quote.

Source: http://www.flickr.com/photos/joebeone/267843349/

In some cases, existing homeowners, health and auto insurance policies provide the coverage you need. In others you may need separate or additional coverage, especially if the student will be away from home. Here are some of the issues to help you decide:

Property Insurance: It’s amazing how the value of a student’s personal belongings quickly add up, often to a five figure number. You should check whether your homeowners insurance covers this – but remember, even that may require expensive items such as computers or valuables to be separately listed in the policy. Otherwise, consider renter’s insurance, which has the added advantage of liability protection.

Health Insurance: Most family policies cover dependents who are full-time students, but definitions of “full time” vary by insurer. Students who marry will likely lose this coverage.  Also, if your policy is through a Health Maintenance Organization (HMO) and the student is outside of their coverage area, although they’ll probably be covered locally for emergencies, they may have to return home for routine medical visits. Separate student health insurance plans are available but benefits are usually limited compared with family policies. Premiums are affected by a range of considerations including deductibles and co-pays. Our health insurance experts can help you review your options and help you figure out what the best choice is for your student.

Auto Insurance: The key issue here is whether the student’s existing auto insurance policy imposes any limitations on coverage for extended out-of-state use.  In addition, you also have to let your agent know when the auto is going to be parked or garaged at a new location, especially, again, if it’s out of state.  Is your student going away sans vehicle?  If so, you may qualify for a discount.

The important point to drive home, is the need to always check the extent of your existing coverage before the student leaves. Of course, we would be happy to work with you on this and provide further information and advice.

For more information, or for a coverage analysis, please call our office at 805-544-8929 or visit us online at Engle and Associates Insurance

Comparing market or real estate value of a home and Replacement cost of a home is like comparing apples and oranges. Market value is the price for which you could sell your home. Market value takes into consideration: land value, neighborhood, comparable sales, and more.  Replacement or reconstruction cost is the amount of money it would take to rebuild your home, with like kind and quality, at today’s costs. Replacement cost reflects the cost for building materials, code compliance, demolition, construction labor, and more.

In the current economy, many people are under the assumption that construction costs have reduced as much as property values. This is simply not the case. The fact of the matter is, today, you can buy an existing home for much less money than it would cost to build that very same home.  Although you may hear from a friend that they got someone to do some work for “super cheap,” this is the exception to the rule. Contractors’ overhead hasn’t reduced much, and cost for building materials hasn’t decreased dramatically either. Contractors are just like everyone else, they need to put food on the table, and I don’t know many non-profit construction companies out there.

The bottom line is, if you’re not sure, give us a call to conduct a current replacement cost analysis of your home.  The amount of coverage you need, should be based on the true reconstruction costs of your home, regardless of current market value.

Click here if you want to know more about home insurance or get a free California Home Insurance Quote.

That’s why I want to talk to you about the true cost of insurance.  We get calls from clients now and then telling us that our price is too high, and that they got a quote on the internet for less money.  My first question is “what did you get for that price?”  In other words, Do you have the same coverage? In most cases, the internet, doesn’t make a very good insurance professional.  The folks who staff the call centers are generally low paid, entry level workers, whose primary goal is to get you signed up.  They are not industry experts who keep abreast of changes in the marketplace, and thoroughly analyze a client’s risk.  No, they are there to sell policies… these are the Walmarts of the insurance industry – the prices can be low, but in most cases you get what you pay for.

So what’s the true cost of insurance?  Let’s say you have a $500,000 auto liability limit right now.  You go online and get a “good price,” but the liability limit is only $300,000.  It saves you $300/year though, so it’s a good deal, right?  Read on for the answer.  You’re in a car accident, it’s your fault, but it’s not that bad of an accident.  Oh and the other party suffers a hand injury.  $300,000 should be enough to cover it right?  Oh, but the person you hit is a plastic surgeon, and with her hand injury, she’s out of work for 4 months.  Her monthly income is $80,000.  There’s $320,000 for just her lost wages.  Now you’ve got the surgeon’s medical bills ($100,000), not to mention, that she was driving a Mercedes Benz S550 ($70,000).  Total cost for you: $490,000.

If you don’t have the cash on hand, the courts can seize your assets, garnish your wages, and more.  But for $25/month, you could have had adequate coverage in place.  With all that said, there is no reason you should be paying high premiums when all else is equal.  That’s why we can do the shopping for you.  We have direct access to over 60 different insurance companies to ensure that you are getting the best VALUE for your insurance dollar – both coverage AND price.  If you feel like you’re paying an unfair price, call my office and let us completely re-evaluate your coverage package.  If you got a quote elsewhere, send it over and let us evaluate it for you – we will tell you if it’s truly a good deal.   -Jayne Engle Allen

If you want to get a free San Luis Obispo Insurance Quote, click here.

Advantages and Disadvantages of Term Insurance

Advantages

• Initially, premiums are generally lower than those for permanent insurance, allowing you to buy higher levels of coverage at a younger age when the need for protection often is greatest.
• It’s good for covering specific needs that will disappear in time, such as mortgages or car loans.
• The new 20 and 30 and year products can provide coverage as long as most people might need life insurance.

Disadvantages

• Premiums increase as you grow older, after the term selected expires, providing it renews past that term.
• Coverage may terminate at the end of the term or may become too expensive to continue.
• Generally, the policy doesn’t offer cash value or paid-up insurance.

Questions to Consider When Considering a Term Policy

• How long can I keep this policy? If you want the option to renew the policy for a specific number of years or until a certain age, what are the terms of renewal of the contract.
• When will my premiums increase? Annually? Or after a longer period of time, such as five or 10, 15, 20, 30 or even 40 years?
• Can I convert to a permanent policy? Some policies allow you to convert the policy to permanent insurance without a medical exam, regardless of your physical condition at the time of the conversion. These policies are known as “convertible term.”

Please visit our website for more information or to get a free California Life Insurance quote today!

When you start thinking about a new car or truck, these safety features should be included among the factors that influence your buying decision. The safety rating of your car could affect how much you pay on your car insurance premium, get free California Car

Insurance quote from us today!

• Airbags for both driver and front seat passenger
• Antilock brakes
• Side impact protection
• Head restraints
• Safety belts

Where To Get Additional Information
It’s hard to compare the safety of one specific car with another because so many factors contribute to performance. However, the following sources can help give you a picture of how safe you and your family might be in different makes and models.

Crash Tests – The U.S. Department of Transportation conducts 35mph crash tests on about 30 cars each year. The results appear in many automotive and consumer news publications, available at most libraries and newsstands. These tests indicate how well a car performs in serious frontal crashes but, because each test crash involves two identical cars, comparisons are only valid between cars of similar size and weight.

Death Rates – The Insurance Institute for Highway Safety publishes lists of recent-model cars according to occupant death rates per 10,000 registered vehicles. Such rates are influenced, of course, by driver behavior as well as vehicle design.

Insurance Claims – The Highway Loss Data Institute* publishes information on the likelihood of having an insurance injury claim in various cars, compared with others, and the comparative amounts of vehicle damage losses from collision. As with death rates, these figures are influenced both by vehicle design and driver characteristics. The numbers tend to reflect mostly minor and moderate injuries, which happen with much greater frequency than serious or fatal accidents.

*Insurance Institute for Highway Safety
1005 North Glebe Road
Arlington, VA 22201
703-247-1500

If you’re looking to get your automobile insured, click here for a free California auto insurance quote.

All those things can make it hard to think clearly and respond properly. And if there are injuries, the stress can be amplified. But that’s when a clear head and quick action are really crucial. Here are some tips for getting through an accident with a minimum of hassle and headaches.

1. After an accident, getting help for the injured is always the first priority.
2. Regardless of the circumstances, report the accident to the police.
3. Record the name, address and phone number of the other driver. Write down the make and license number of all vehicles involved. You’ll want to get as much information as you can about the other driver’s insurance agent, policy and insurance company.
4. Don’t forget to collect the names, addresses and phone numbers of passengers and witnesses. Since many cases end up with the parties blaming each other, third-party witnesses can be important. Don’t hesitate to approach anyone who may have seen the crash.
5. Be careful of what you say. Don’t talk about fault; even casual remarks can be used in court.
6. Examine the damage carefully. Take photos if possible, particularly if the accident occurred on private property, such as a parking lot.
7. Without being overly suspicious, observe the other driver’s actions. If the other driver later claims to have a serious injury, what you notice could be important.
8. Stay calm.
9. Notify our office immediately at 805-781-6336. If the accident occurs after hours, please refer to the my policy section of our website for 24-hour claims hotlines for our insurance companies.

Remember, these incidents are the reason you have insurance in the first place. We know that no car wreck is ever minor if you’re involved. We’re here so that you can relax a little, knowing that Engle & Associates are on your side doing everything possible to ease your stress and give you peace of mind.

Direct Primary, Direct Excess, and Legal Liability – These all have to do with your customers’ vehicles while in your care, custody and control.  Before you get bored with these terms, read below to find out why you NEED to know what they mean.

1. Legal Liability – this is what you will find on most of the cheapest garage packages available.  If a customer’s vehicle is damaged, the customer must prove that you are legally liable (negligent)  in order to recover damages from your insurance.  This can not only create a loss of goodwill if coverage is denied, but it also forces the customer to jump through hoops to prove your negligence.  This doesn’t end well for your relationship with the customer.
2. Direct Excess – this is better than Legal Liability because it doesn’t require your customer to prove your negligence.  However, this coverage only applies after the client files a claim with his own personal auto insurance policy.  If the client’s personal auto insurance denies the claim or the client’s policy limit doesn’t cover all of the damages, then the garagekeepers insurance would apply.  Again, this doesn’t require the customer to prove you are negligent, but it does force the client to file a claim with their own personal auto insurance – another hoop for the client to jump through.
3. Direct Primary – This is the best coverage available because it takes the burden off of the customer and in the event that a customer’s vehicle is damaged while in your care, custody, and control, you will keep a strong customer relationship.  Coverage is provided by the garagekeepers policy without the need to prove negligence and legal liability.  In addition, the client doesn’t need to file a claim on his personal insurance.  Essentially, you, as the garage owner, are taking responsibility for the customers vehicle while it’s in your care.  This is also the assumption that most customers have when they drop their vehicle off for service.  Your garagekeepers coverage pays for the loss from the first dollar without regard to or contribution by the vehicle owner.

Of these three coverages, Direct Primary is the most expensive, but don’t let that stop you from asking for it.  The difference in price can be less than $100/month to go from basic Legal Liability to Direct Primary coverage.   Keeping your customers happy keeps them coming back, and keeps them referring new customers your way.

For more information on Garagekeepers insurance, please call Jayne Engle Allen at Engle & Associates Insurance Brokers – 805-544-8929 or toll free at 877-544-8929. You can also visit our website for more information and a free Automotive Service Insurance Quote.

After accumulating money in an annuity it is not mandatory that the annuitant exercise the annuitization option and relinquish control of his or her cash value and enter into the annuity distribution phase, the annuitant can simply cash out of his or her annuity.

The Accumulation Phase

Features

• During the accumulation phase, the fund grows tax deferred, it does not grow tax free. If the annuity was not purchased as part of a qualified retirement program such as an IRA, 401(k), TSA, or 457 plan, income taxes are paid on the earnings when money is ultimately paid out. If the annuity is part of a qualified plan the entire fund is subject to income taxes as it is withdrawn.
• Surrender charges for early withdrawals. Most offer partial withdrawals free of surrender charges.
• If you withdraw money from your annuity before age 59 ½ it is called a “premature distribution” and is subject to an additional 10% IRS penalty.
• If a premature death should occur, the accumulated funds within the annuity are transferred to the named beneficiary, avoiding probate costs.
• Annuities can vary by payment mode and are available as “single premium” (purchased with one-time payment) or “flexible premium” (purchased with recurring periodic payments). They also vary by timing of the annuity income and may be available as a “deferred annuity” (which means that annuity income payments are deferred until later) or as an “immediate annuity” (which means that annuity income starts immediately).
• For fixed and equity indexed annuities there is safety of principal and earnings.
• Variable products are subject to mortality and expense charges and administrative fees not typically found with other investments.

Types

• Fixed annuities
• Variable annuities
• Equity Indexed annuities

Fixed Annuities

In a fixed annuity, the insurance carrier:

• Declares a current rate of interest for a specified time period. Once the time expires the company will set a new rate which may be higher or lower than the original rate.
• Guarantees a minimum interest rate of return which is specified in the contract, and at no time may the current or renewal interest rate fall below it.
• Guarantees the principal.

Variable Annuities

A variable annuity has two types of accounts:

Fixed Accounts

In a fixed account, principal and interest are guaranteed by the insurance company. Interest rates are usually guaranteed for one year but can be longer.

Variable Accounts

• In a variable account, the annuity owner bears the investment risk. Policy values vary directly with market performance and may result in a loss of principal and prior earnings. Earnings are tied directly to the performance of various underlying investment vehicles which are available within the variable annuity and are selected by the owner.
• Variable annuities offer a guarantee that in the event of death the beneficiary will receive at least all the premiums paid less any withdrawals made no matter what the value of the account.

This means if the account fund is valued less than the original investment, the beneficiary will receive the original investment.

* Equity Indexed Annuities

An Equity-Indexed Annuity (EIA) has interest rates that are linked to growth in the equity market as measured by an index such as the S&P 500. The EIA owner enjoys the upside potential of equities but is not exposed to downside risk. Subject to fixed minimum guarantees, the value of an EIA can only increase due to market growth – it will never decline due to market movement. There are many variations in product design. No two of the EIAs are exactly alike, and some are very different from each other. However, all the various types fall into three general categories: annual high-water mark with look-back. The following is a simple definition of each. Please call us if you would like to know more.

Annual Reset – Also known as the annual ratchet design, the annual reset design resets the starting index point annually. It also credits index increases (interest) annually and compounds annually.

Point-to-Point – The point-to-point design measures the change in the index from the start of the term to the end of the term.

Annual High-Water Mark with Look-Back – The annual high-water mark with look-back can be viewed as a variation on the point-to-point design, except that it measures the index from the start of the term to the highest anniversary value over the term.

* Some annuities allow the insurance company to change participation rates, cap rates or spead/asset/margin fees either annual or at the start of the next contract term. If an insurance company subsequently lowers the participation rate or cap rate or increases the fees, this could adversely affect an investor’s return. Therefore, a prospective investor must carefully review his or her contract in order to examine these issues.

Withdrawal

• Withdrawals may be made at any time. However, the withdrawal may be subject surrender charges and if done before age 59 ½ there will be a 10% IRS penalty. Some contracts allow an annual 10% withdrawal free of surrender charges.
• The owner may pre-authorize a systematic periodic withdrawal plan. The owner of the contract instructs the company to withdraw a percentage or a level dollar amount from the contract on a monthly, quarterly, semiannual, or annual basis.

The Distribution Phase

As part of the distribution phase, the owner has two options, he or she can withdraw money (either in a lump sum or elect a systematic withdrawal plan) or annuitize (purchase an annuity pay out plan).

Annuitization

When the owner annuitizes the funds he or she purchases an annuity pay out plan. In a Fixed and in an Equity Indexed Annuity the owner purchases a monthly income that will be paid to him or her until death. It is a guaranteed income that will not change. In a variable annuity, the owner has an option to do the same or transfer all or part of the contract to one or more of the sub-accounts that are available, and annuitize those funds. The funds that are annuitized in the separate accounts produce an income that will change from month to month based on the performance of the sub-account that the funds are placed in.

Annuity Pay Out Plans

Life Only - Periodic monthly payments to an annuitant for the duration of his or her lifetime and then ceases. It is for a lifetime, the annuitant cannot outlive the payments. The payments are determined at the time of purchase and are based on age and sex.

Life with 10 years certain – Payments will be made for at least ten years, regardless if the annuitant lives for the entire ten years. If the annuitant dies during the ten-year period the remainder of the ten-year payments will be made to a beneficiary. If the annuitant lives longer than ten years he or she will continue to receive payments for his or her lifetime. The guaranteed monthly payments will be less than “life only.”

Life with 20 years certain – Payments will be made for at least twenty years, regardless if the annuitant lives for the entire twenty years. If the annuitant dies during the twenty-year period the remainder of the twenty-year payments will be made to a beneficiary. If the annuitant lives longer than twenty years he or she will continue to receive payments for his or her lifetime. The guaranteed monthly payments will be less than “life only”, and “Life with 10 years certain.”

For more information on Annuities or California Life Insurance, please contact our office today.

Water is essential for many things in life, yet it is one of the most frequent causes of damage in homes. Consider how many rooms in your home are connected to an inside water source or are susceptible to water coming in from outdoors, and you will quickly realize how vital water damage prevention should be.

When water goes where it shouldn’t, even a small leak can become a major problem. Some damage from water is covered by your homeowners policy, some is not. Either way, most damage from water is preventable.

Quick action helps in water emergencies.

It has happened. There is water everywhere — in your walls, under your carpets and soaking into your belongings. Whether caused by a burst pipe, a broken water heater or a flood, there are things you can do immediately to salvage belongings and limit damage or loss.

1. Stop the water. If the water is coming from inside your home, such as a burst pipe or water heater malfunction, shut off the main water valve immediately. (Make sure everyone in your home knows where the shutoff valve is located.)
2. Turn off the utilities* – if the situation calls for it. In a serious water event, turning off the power or natural gas might be necessary to ensure your and others personal safety.
   *In the case of a minor water situation there may not be a need to shut off the utilities, and doing so may leave your home without power until the utilities can be turned back on again.
3. Prevent electrocution. Do not use any electrical appliances if the carpet or flooring surfaces are wet. Use a wet vacuum to remove water, but check the manufacturer’s instructions before starting.
4. Use fans to circulate air and encourage drying. This is especially important in the first 24-48 hours after an indoor flood.
5. Get water out quickly (and safely). Fast action on your part can prevent further damage, help you save more of your belongings and minimize the time and expense of repairs. Clean up as much water as possible by mopping or blotting with towels.
6. Get property to a dry location. As much as possible, move belongings to a dry area. Put furniture on blocks or slide a square of aluminum foil under furniture legs to prevent the wood stain from bleeding into carpeting.
7. Remove area rugs from the floor. The dyes in carpets can stain flooring, carpeting or wood floors.
8. Do not lift tacked down carpet without professional help. It could cause carpet to shrink.
9. Launder any clothes or other washables that have been soaked as soon as possible.
10. Wipe excess water from furniture. Open drawers and cabinet doors for faster drying. Spread out books to speed drying and prevent further damage.
11. Watch for debris and pests. If water is flowing in your house there may be dislodged materials such as nails, or pests such as snakes or vermin.
12. Report claims as soon as possible. The sooner you report damage, the sooner we can help you get your home and life back to normal.
13. Keep track of the time spent cleaning and save receipts for the costs of any rental equipment or payments to professional services. Take photos of any damaged items you may have to discard before an insurance adjuster sees them, and make an inventory list of any damaged goods.

Want to make sure you’re covered?  Get a Home Insurance Quote Today!  CA Home Insurance is  very affordable and a great investment for any homeowner that is looking for protection against unforeseen tragedies.