It doesn’t matter weather you own or rent your home, weather you are rich or poor, weather you live in town or out in the country, everything you have is wrapped up in your home and if something happens to your home then your are at risk of loosing everything.  That is why the world invented homeowner’s insurance.  If you don’t own your home you still need a homeowner’s policy – a renter’s policy.

Renters insurance provides the protection that you need if there is a loss or destruction of your property when you rent a house or apartment. The owner of the property, your landlord, may be sympathetic to a burglary, or fire caused by your iron,  but the loss of your possessions is not usually covered by your landlord’s insurance and he is not legally responsible for it.  The good news is that because renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.

Renters insurance covers  your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods), and it will also cover your personal liability:  your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Don’t let anybody ever try to sell you anything but a replacement cost insurance policy.  If you buy anything that does not specifically state “replacement cost” coverage you will be paid garage sale value for your property.  In other words, that sofa that you bought six months ago for three thousand dollars will be valued at about three hundred dollars.  Let me repeat:  Replacement cost coverage only.

In future posts I’ll talk about the value of a floater – purchasing additional coverage for a specific item:  wedding ring, art, ect.

A post from: ABC Insurance Services

Prom is almost here.  It is a fun and exciting time and can be a night to remember for the rest of your life; however, it can also be dangerous and deadly.  Don’t forget to caution your teenagers about the use of alcohol and driving and remember the night for all of the right reasons… not the wrong ones.

The Insurance Information Institute has put out a video about the subject.

A post from: ABC Insurance Services

Every insurance company is in the business of making money by providing a valuable service to the public. Insurance is vital to the national economy and to our own personal economy.

When we have an accident we all want prompt courteous response to our request for payment of the claim and we want to be paid fairly. I believe that most people aren’t out there trying to “game the system” and profit off the claim. Most people simply want what the insurance company owes them – reimbursement for the loss.

However there are a few people out there that really do want to play the game and profit from the accident as if they had just won the lottery. We all know who those people are and we have seen them do it. We also know that insurance money isn’t free. You have to pay for insurance each and every month. That money comes directly out of your pocket.

The Supreme Court in the State of New Mexico has recently had several rulings that have greatly benefited the consumer. Or have they? The recent ruling have greatly increased the amount that insurance companies have to pay in the event of an accident, but these same rulings have greatly increased premiums.

The question that I have is a personal one and there is not right or wrong answer, but there is a choice to be made.  You can’t have your cake and eat it too.  You can either have lower insurance payouts or lower premiums, but not both.  Which would you prefer?

A post from: ABC Insurance Services

Let’s face it:  nobody looks forward to buying insurance.  It’s not like going to the movies or buying a new pair of shoes.  Buying insurance is more like paying for a prostate exam -  neither the exam or paying for it was fun, but it was the right thing to do.  That being said we all try to spend as little as we can on auto insurance, but pinching pennies can cost a lot in the long run.

Let’s take a look at your “Limits of Liability.”  You will find it on the first page of your policy and it is usually expressed as Per person/Per accident/Property Damage.  The state minimum limits in New Mexico are 25,000 per person/50,000 per accident/10,000 property damage.  An insurance company cannot legally sell lower limits in New Mexico and still comply with the financial responsibility laws in the state.

What do all those numbers mean?  Well if you injury someone in an accident your insurance company will pay their total medical bills, lost wages, pain and suffering, etc.  up to $25,000.  What if their injuries exceed the 25,000?  You are responsible for the rest.  Your insurance company has fulfilled their obligation and are not going to pay any more money.  The same holds true for the other coverage limits:  per accident and property damage.

We all know that medical costs continue to skyrocket, but lets take a look at property damage.  Property values have not increased at the same rate as medical costs, but most cars are worth a whole lot more than the $10,000 minimum limit.  If the $10,000 property damage limit is no longer enough then consider the skyrocketing costs of medical expense and you will see that $25,000 per person is a paltry sum.

How much does additional coverage cost?  Well, on average it will cost an additional $1.00 to $3.00 per vehicle to increase coverage from the $10,000 limit to $25,000, that’s more than double the amount of insurance for the cost of a cup of coffee.  In my opinion it is crazy to carry state minimum limits.

I wish the state would change the minimum limits to about $100,000 per person/$300,000 per accident/ $50,000 property damage, but if wishes were fishes…….Actually I don’t know how that ends, but I know it’s a saying.

A post from: ABC Insurance Services

Tire care and upkeep is crucial for a better ride and gas mileage for your vehicle.  Follow these four simple steps for better driving safely.
1.  Keeping tires inflated to the manufacturer’s recommended tire pressure will help tires wear evenly and provide proper traction.
2.  You can find the maximum cold inflation load limit on the sidewall of all tires. Here’s an explanation from aa1car.com:
3.  Want to know how to read your tires for potential tire wear problems? This link from procarcare.com shows you how:
4.  A pocket tire gauge is a perfect gift idea to help promote tire safety with drivers of all ages.

A post from: ABC Insurance Services

Your 21-year old daughter finally saved enough money to move out of your house and into her own apartment. When she moves, she takes “her” car with her. It is not really “her “car, as it is titled to you, so the car remains on your personal auto policy on which both you and your spouse are the Named Insureds.

The Problem is that several months later, while jogging, the daughter is hit by an uninsured car and seriously injured, so you turn in a claim for your daughter’s injuries to your auto insurance company.
No problem, right? After all, your personal auto policy still has the daughter listed as a driver and the vehicle is still insured on the policy.

Wrong! There is a BIG problem, as neither Part B – Medical Payments nor Part C- Uninsured Motorists will provide coverage for your daughter’s injuries.

Former “Family Members” – Coverage and Lack of Coverage
Children who no longer reside with their parent (or parents) are only an “insured” under the parent’s auto policy when driving or occupying the parent’s “your covered auto”. These former “family members” now fall within the commonly used term of permissive user and are only covered under their parent’s policy for:
1. Liability while driving the parent’s “your covered auto”
2. Medical Payments while occupying the parent’s “your covered auto”
3. Uninsured/Underinsured Motorists while occupying the parent’s “your covered auto”

Former “family members” no longer have the following coverages:
1. Liability while in an auto other than the parent’s “your covered auto”
2. Medical Payments while in any auto other than the parent’s “your covered auto”
3. Medical Payments while a pedestrian
4. Uninsured Motorists while in any auto other than the parent’s “your covered auto”
5. Uninsured Motorists while a pedestrian

No doubt you will agree – these are important coverages to be without!

The Solution is to write a personal auto policy with the child as a Named Insured and attach the Named Non-Owner Coverage endorsement (ISO: PP 03 22). This endorsement is used in the ISO Personal Auto program to provide insurance coverage for the person who does not own a vehicle, but still wants insurance protection.

It can be used to provide Liability, Medical Payments and Uninsured/Underinsured Motorist coverage for the individual(s) named in the Schedule. These coverages must be individually selected with a Limit of Liability and a Premium shown on the schedule.

A post from: ABC Insurance Services

Summer is here! If you don’t have enough to do already here’s a few things that will add beauty to your life and home.

If you’ve installed a deck at your home or rental property, it’s a considerable investment that adds to the value of your property. Adding plants and creative outdoor lighting will help you make the most of this space.

Plants are an easy and inexpensive way to add color to your deck. Do some research online or ask a local gardening store about what kinds of containers and plants are best for your area. This is a great time of year to get started in most climates!

Hanging planters are another way to add color and flair to your deck. Local gardening stores sell hanging baskets already planted with a variety of plants and flowers, or you can create your own by selecting flowers and plants that work with your climate and design plan.

Create a railing planter by using materials that are left over from building your deck, or buy new materials and stain them to match your deck.

Consider installing some lighting on your deck. Options include lamps over the corner posts, small lights at the base of each post, step lights or umbrella lights. Check out a home improvement store to look at different options and styles.

All wood decks should be stained to protect them from sun and water damage. Always make sure the wood is clean and dry before you get started, and then follow the directions on the container. Don’t get started if rain is in the forecast – most stains need several hours to dry after application.

A post from: ABC Insurance Services

Why choose and agent? and why and independent agent? Trusted advise in making difficult financial decisions is the first and easy answer to that question. It’s always helpful to have a professional on your side, especially when it can save you money in both the long and short term.
Check out this video for some additional ways.

A post from: ABC Insurance Services

Own a previously owned vehicle? Or been in an accident where the airbag deployed? Your airbag system could be at risk.
When purchasing a used car, use available resources to verify the car’s history including if the airbag has ever been deployed.
Less-than-reputable repair shops have scammed unsuspecting car owners by installing non-functioning or inappropriate airbags rather than properly repairing or replacing the system.
Two out of five vehicles “totaled” or given salvage titles are rebuilt and resold. This literally opens cars up for airbag fraud.
Avoid airbag fraud: get a vehicle history report on any used car and only use reputable mechanics and body shops when you need to.

A post from: ABC Insurance Services

Watch for ways you can practice fire safety to keep your family safe.

Run at least two fire drills per year so everyone is aware of what to do if a real fire occurs. Set up multiple scenarios during different times of day and designate a meeting place outside your home. Remember to include family pets.

Make sure every window and door is fully functional before each fire drill. Teach your family how to unlock and open all possible exits. Instruct them to break their window with a heavy object if it does not open.

Store a multi-purpose fire extinguisher in the kitchen and on every level of your home. Keep them recharged and ready to use and teach all family members how to operate them. If the fire is not out after using the extinguisher, get out and call the fire department.

Install at least one smoke detector on every level of your home and make sure there is a battery back-up for hard-wired alarms. Test them monthly and change the batteries at least once per year.

If a fire does occur, crawl to the nearest safe exit with your head 12 to 24 inches above the floor. Carefully touch the bottom of all doors to check for heat before opening them, and if your clothes catch on fire, remember the stop, drop and roll rule.

A post from: ABC Insurance Services