Pinnacle Point Insurance

Six Questions to Ask When Shopping for Homeowners Insurance

Aaron — Thu, 23 Feb 2012 16:34:42 +0000

KNOW WHAT YOU NEED COVERAGE FOR BEFORE BUYING OR RENEWING A POLICY

Being an informed consumer means not only reading your homeowners insurance policy closely but also asking experts what constitutes the right type, and amount, of coverage you need for your home, according to the Insurance Information Institute (I.I.I.).

“Besides knowing the basics of what a standard homeowners insurance policy covers, consumers should ask a series of questions, and receive satisfactory answers to each of them, before buying a new policy, or renewing an existing one,” said Michael Barry, vice president, Media Relations, I.I.I.

A qualified insurance agent or insurance company representative can guide you in your choices. Here are six basic questions everyone should ask before buying or renewing a homeowners insurance policy:

1. How much would it cost to rebuild my home in its current location in the event of a total loss? Your homeowners insurance policy should cover the cost of building a new home from scratch. Your insurance agent or insurance company representative will have knowledge of your neighborhood, and familiarity with the construction materials used when your home was originally built and can accurately calculate this cost. In general, homeowners policies cover partial or total damages caused by fire, hurricane, hail, lightning or any other disaster listed in your policy. Flood and earthquake-related losses must be insured separately because both perils are excluded in standard homeowners insurance policies.

2. How much is the personal property in my home worth in the event of a total loss? Your homeowners insurance policy should cover the cost of replacing all personal property (furniture, appliances, clothing) should it be stolen or destroyed by fire, hurricane or another insured disaster. Most companies provide personal property coverage equal to about 50 to 70 percent of the amount of insurance you have on the structure of your dwelling. So if you have $100,000 worth of dwelling protection, most insurers would recommend $50,000 to $70,000 worth of personal property coverage. The best way to determine if this recommendation is appropriate for your specific situation is to conduct a home inventory. To make creating your inventory as easy as possible, the I.I.I. provides free Web-based home inventory software, Know Your Stuff®. The software includes secure online storage so you can access your inventory anywhere, anytime. If you have an iPhone, you can also download the new Know Your Stuff® – Home Inventory app in the iTunes App Store (or search for “iii inventory”).

3. How much liability protection do I need? Liability covers you against lawsuits for bodily injury or property damage that you, or your family members, cause to other people. It also pays for damage caused by your pets. The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world. Liability limits generally start at about $100,000. Most insurance agents and company representatives recommend that you purchase at least $300,000 worth of liability protection. If you have significant assets and need more liability protection than is offered under the standard homeowners policy limits, ask your agent about umbrella liability.

4. What level of additional living expense coverage do I need? The Additional Living Expenses (ALE) provision is found in standard homeowners insurance policies. It pays for the costs of living away from home if you cannot reside there due to damage from an insured disaster. ALE covers hotel bills, meals and other expenses over and above your customary living expenses. ALE coverage differs from company to company. Many policies provide coverage equal to about 20 percent of your dwelling protection. For example, if the structure of your home is insured for $100,000, you would have $20,000 of ALE coverage. Some companies impose a time limitation, such as 12 to 24 months.

5. Should I buy a separate flood and/or earthquake insurance policy? There were numerous flooding events and earthquakes in the U.S. in 2011 but relatively few Americans had coverage for either type of natural disaster because these perils are excluded from standard homeowners insurance policies. Check with your insurance agent or insurance company representative to see whether you might need specialized coverage beyond your standard homeowners insurance policy. Flood coverage for homeowners is available from the federal government’s National Flood Insurance Program (NFIP) and from a few private insurers. Earthquake coverage is usually available in the form of a supplemental policy from your insurance company, or, in California, from the California Earthquake Authority. Fire and water damage due to burst gas and water pipes following an earthquake is covered under standard homeowners policies in most states.

6. Do I qualify for any discounts? If you have smoke detectors, burglar alarms and/or dead-bolt locks in your home, you can often get a premium rate discount. Sophisticated sprinkler systems and alarms that ring at monitoring stations often reduce your homeowners insurance premium, too. Ask your agent or company representative about discounts available to you. If you are at least 55 years old and retired, for instance, you may qualify for a discount of up to 10 percent at some companies. If you have completely modernized your plumbing or electrical system recently, a few companies may provide a price break.

The I.I.I. also advises homeowners to take the time to review and understand their coverage choices by taking an annual homeowners checkup.

Accredited to -

February 15, 2012

FOR IMMEDIATE RELEASE

New York Press Office: (212) 346-5500;media@iii.org

10 Car Insurance Myths (Auto Insurance Myths)

Aaron — Tue, 21 Feb 2012 15:54:10 +0000

Understanding all the legal mumbo-jumbo of an insurance policy is hard enough. So auto policy holders should know what’s fact and what’s fiction about what insurers look for when determining premium rates. Here are 10 auto insurance myths debunked.

1. The color of my car matters.

Red cars may be a hot ticket item, but they do not drive premium prices up as is widely believed. Car insurers are more interested in the make and model, year, body style, engine size and, in some areas, location (street parking versus driveway/garage-kept vehicles, for instance). What does count, however, is drivers’ behavior. Moving violations, like speeding or reckless driving that result in “points”, certainly affect the cost of premiums no matter what color the vehicle happens to be. You may care what color your car is, but insurance companies don’t.

2. My old car won’t be a target for theft.

Wrong. According to a National Insurance Crime Bureau report, car thieves preferred older models because they are easier to steal. In fact, a 2007 bureau report that listed the most stolen vehicles included a 1995 Honda Civic, a 1991 Honda Accord and a 1989 Toyota Camry.

The insurance bureau’s report also suggests that thieves’ preference varies from state to state. Crooks in Texas grab trucks, while thieves in California prefer Hondas, Toyotas and other imported models.

3. I’m covered if my car is stolen, vandalized or damaged by hail, wind, fire or flood.

Comprehensive and collision coverage are optional when purchasing an insurance policy. So it’s not an “automatic” if a tree limb smashes your windshield or vandals spray-paint graffiti on your door. Comprehensive and collision riders are usually required if you’re leasing or financing your vehicle; but once the car is yours, you must request this additional coverage.

4. Credit scores don’t affect insurance rates.

Most car insurers take a lot of factors into consideration when determining your premium rates. Since your credit score is an indication of how well you manage your financial affairs, many companies look at this number if you want to purchase, renew or change an insurance policy. (Credit is one factor that may affect your rate.)

5. My insurance company can cancel my policy at any time.

Unless you give them an adequate reason to do so, car insurers can’t arbitrarily cancel a policy in the middle of a term. Grounds for cancellation may include fraud or non-payment of premiums.

6. My friend borrowed my car, so he’s responsible if there’s an accident.

Car insurance companies follow the car, not the driver. So you are ultimately responsible for an accident and any damages that occur.

7. Personal property inside my car is covered.

Sorry. If your expensive golf clubs get ruined when your car is rear-ended, you’re out of luck. Likewise, if expensive items like a laptop or fur coat are damaged or stolen from your car in the course of an incident, you may file a claim through your homeowner’s (or tenant’s) policy but not through your car insurance.

8. I’m automatically covered for a rental car.

If your car is stolen or damaged, rental car reimbursement is not automatically included in your policy. But it is one of those very affordable additions. According to the Insurance Information Institute, rental reimbursement coverage is available for $1 to $2 a month with most insurers.

But take heed: Even with this additional coverage, there may be limits on how many days you can rent a car, or how much is allowed per day toward rental costs (including a maximum cap).

Speaking of rentals, don’t assume your coverage will be sufficient if you’re using a credit card for the transaction. Each credit company has its own policy inclusions and exclusions. So check the fine print first, or you may get stuck with a hefty bill.

9. Drivers of sports cars pay more insurance because of more tickets.

This may be true if you’re also a high-risk driver (younger than 25) or have a checkered driving history with multiple moving violations. But according to a study published in 2009 by Quality Planning, drivers of the Hummer H2/H3 led the pack with the most violations and, more than likely, higher premium rates. Others on the list included drivers of the Scion xB multipurpose wagon and the Subaru Outback station wagon — definitely not hot sports cars.

10. Having no-fault insurance means it’s not my fault.

No-fault insurance varies from state to state. But in a nutshell, it means you and the other party will be covered for immediate expenses, such as medical attention or lost wages, while the insurance companies arm-wrestle about who will pay for the accident itself.

But you may still be liable for repairs and other damages if the insurance companies ultimately determine the accident was your fault.

The Bottom Line

It may take a little reading of the fine print and asking questions of your agent, but you can save yourself a lot of headaches and pain in your wallet if you understand fact from fiction about your auto insurance policy.

(These “10 Car Insurance Myths” were brought to you by Angela Daidone/Investopedia)

Space Heater Safety Tips – Prevent Home Insurance Claims

Aaron — Fri, 04 Nov 2011 17:07:40 +0000

In 2004-2008, most home heating fire deaths (82%) and injuries (64%) and half (51%) of associated direct property damage involved stationary or portable space heaters. Cold weather is upon us so be safe when using a space heater. Here are some tips to do just that -

Do not use an extension cord or strip plug. If you must use an extension cord, make sure it is a heavy duty cord marked with a power rating at least as high as that on the label of the heater itself.
Run the power cord so that no one steps on or trips over it.
Inspect the heater’s cord periodically to look for frayed wire or damaged insulation. Do not use a space heater with a damaged cord.
Turn off the heater when you leave the room ‐ unplug the heater when you leave for the day. Never leave a space heater unattended or running while you sleep.
When buying a heater, look for one that has been tested and labeled by a nationally recognized testing company.
Place the heater on a level surface away from areas where someone might bump it and knock it over.
Keep electric heaters away from water. Never use them near a sink or in the bathroom.
Use space heaters only as a supplementary source of heat. These devices are not intended to replace the home’s heating system.
Check periodically for a secure plug/outlet fit. If the plug becomes very hot, the outlet may need to be replaced by a qualified technician. This could be the sign of a
potential home wiring issue.
Heaters should be placed on a flat, level surface. Do not place heaters on furniture since they may fall and become damaged or break parts in the heater.
Unless the heater is designed for use outdoors or in bathrooms, do not use in damp, wet areas.
Keep the heater at least three feet away from bedding, drapes, furniture, and any other flammable or combustible materials.
Keep children and pets away from space heaters.

Special thanks to Columbia Lloyds for providing these valuable tips.

Pinnacle Point Insurance is Authorized to Offer the AARP Auto Insurance Program from The Hartford.

Aaron — Thu, 27 Oct 2011 19:04:44 +0000

If you haven’t already heard, The Hartford AARP Auto Insurance Program is available through Pinnacle Point Insurance. We’ve placed a link on our Claims & Service page to webpages designed to provide you with all of the information AARP members need to know about the AARP Auto Insurance Program. A copy of that link is below -

Let us help you take advantage of the great rates designed to meet the needs of AARP members.

Old Spice Commercial Spoof – Pinnacle Point Insurance

Aaron — Wed, 26 Oct 2011 15:38:18 +0000

Check out our new Pinnacle Point Insurance video! It’s a spoof of an Old Spice commercial that most of you have probably seen at some point. We hope you enjoy!

Hello Ladies!
If your insurance agent was me, you would have the best rate on your auto insurance, home insurance, life insurance, health insurance, and business insurance. Pinnacle Point Insurance has access to multiple insurance companies so we can provide you with the best policy and rate. Give us a call – 281.543.7493

Home Insurance Solicitations – A Closer Look

Aaron — Tue, 18 Oct 2011 19:46:27 +0000

If you’re a homeowner, you’ve probably received several home insurance solicitations over your years of home ownership. And if you’re like me, you probably take a look at them to at least see what the rates are in comparison with what you’re currently paying. Unlike me though, you might not know what else to look for to more accurately compare them with your current insurance policy.

Some of my long-standing clients have come from home insurance solicitations that I sent out a few years back so I’m not knocking insurance agents and/or companies for sending them out. On the other hand, what I’d like to do is show you some of the home insurance solicitations that I received this year and give you an idea of what to look for when comparing. I’ve marked through the names of the insurance agents/agencies in order to protect the innocent (or guilty?).

As you’ll see from the solicitation below, this carrier’s rate is assuming that I will also place my auto insurance with them and that I have a monitored burglar alarm. All of the quotes I’ve received include these discounts and since my current policy also includes these discounts, I won’t bring this up again. It’s just important that you are aware of this if you are with an auto insurance carrier that you are happy with that doesn’t also write home insurance.

The most important thing to take notice of in this quote is the 3% wind/hail deductible, which includes hurricanes. This means that if a hurricane or hail storm were to roll through town and damage my roof that the damage would have to be more than $6,133.20 before this insurance company would pay anything. Most insurance companies have a minimum 2% deductible for wind/hail in Harris County, but you could easily find a lower deductible if you live north of Harris County. There are several insurance companies that have broken this deductible down so you could have a 2% deductible for hurricanes/tropical cyclones while having a 1% deductible for wind and hail.

3% Wind/Hail Deductible - Home Insurance Solicitation

In following soliciation you’ll see that this is one of those insurance companies that breaks down the wind/hail deductible so I have one deductible for wind and hail and another deductible for hurricanes. This quote looks pretty competitive, but the hurricane deductible is a very high 5%. I’d have to have more than $11,300 in damage from a hurricane before this company would pay anything. If you live on the coast, you may not have any other options. On the other hand, I have options and I’m pretty sure I could get close to paying for replacing my roof myself before I’d receive a dime from this insurance company. I’d pretty much only have protection from a hurricane if it did significant damage to my house.

5% Hurricane Deductible - Home Insurance Solicitation

The image below is a copy of my current home insurance policy. Note that the rate I’m paying is lower and I still have a 1% deductible for any and everything. This means I’d have to have no more than $1,980 before this insurance company would pay for a claim.

My Current Home Insurance Policy

While having a higher wind/hail deductible can help to lower your home insurance premium, it’s important to compare the deductibles when comparing home insurance solicitations. All are not created equal.

Another thing you’ll want to consider when comparing home insurance policies is the type of policy the insurance company is offering you. In Texas, the policy forms I’ve seen the most frequent are HO-A, HO-A plus, HO-B, and HO-3. An HO-A plus policy will provide you with coverage for most of your typical claims, but an HO-B or HO-3 will give you even more protection. Having a basic HO-A policy is something you’d probably want to avoid unless you really don’t have any other options.

You can compare just about any carrier’s policy in Texas by visiting – http://www.opic.state.tx.us/

Please give me a call or shoot me an email if you’d like to see what we can come up with for your home insurance needs. We’ll be happy to help you compare it to your current policy and walk you through any recommendations.

Four Speeding Facts to Make You Think Twice – Auto Insurance

Aaron — Thu, 06 Oct 2011 17:15:43 +0000

Four Facts About Speeding

Exceeding posted speed limits accounts for nearly one-third of all fatal car crashes. Next time you are rushing to get somewhere and find yourself speeding, consider the following facts from the National Highway Traffic Safety Administration (NHTSA):

Don’t Let Low Traffic Fool You: Speeding-related fatalities are twice as likely to happen in rural areas as they are on urban streets. In fact, only 12 percent of speeding-related fatalities occur on Interstate highways.
Ten Miles Per Hour Makes a Difference: The probability of death or a debilitating injury doubles for every additional 10 mph when a vehicle is traveling 50 mph or faster.
Wear Your Seatbelt: One in three drivers killed in car accidents are not wearing safety restraints.
Talk to Your Teen: The likelihood of fatality in a speeding-related crash is highest for divers in their teen years. Young men are particularly at risk. They have twice as many fatalities from speeding when compared to women.

This post has been brought to you by our friends with GMAC Insurance.

Can Cavemen use Smartphones to do Smart Things? – Pinnacle Point Insurance

Aaron — Tue, 20 Sep 2011 23:00:27 +0000

Can even a Caveman use a smartphone to do a smart thing like calling Pinnacle Point Insurance for a quote?

Avoid Auto Accidents with a Four-Point Safety Check

Aaron — Wed, 14 Sep 2011 20:28:06 +0000

Want to prevent a car accident?

Implement a Monthly Four-Point Safety Check

To ensure you’re driving a safe vehicle, take a few minutes to conduct this monthly Four-Point Safety Check. Your car and your safety may be riding on it!

Tire Pressure: Make sure all tires are inflated to the pressure recommended in your owner’s manual (not the maximum pressure noted on the tire’s sidewall). The correct pressure will ensure your tires wear evenly which will reduce the chance of blowouts.
Check Front End Alignment: Any pothole or bump can knock your car out of alignment. While driving slowly in an empty parking lot, see if the vehicle is pulling to one side. If so, have a qualified mechanic realign your front end.
Take a Brake: When in park, check your brake pressure. There should be resistance to the pedal when depressed. And, any grinding, squeaking or shuddering you hear or feel when you hit the brakes means it’s time to have them serviced.
Keep Your Lights On: Blown out brake lights and turn signals can be a big hazard on the road. Have a friend help you make sure all lights are working properly.

This post has been brought to you by GMAC Insurance.

Five Back-to-School Carpooling Tips

Aaron — Wed, 17 Aug 2011 15:36:53 +0000

It’s time to go back to school! Consider these valuable back-to-school carpooling tips as you pile the kids in the car and take them to school.

Meet with your fellow carpoolers. Get to know your fellow carpoolers to gauge how responsible of a driver they are. Use that time to establish some ground rules in terms of pick-up and drop-off times so everyone is on the same page.
Make sure all passengers are buckled-up. Before driving away, make sure all adults and children in the car have a fastened seatbelt. Never let kids share a seatbelt and never transport children in the cargo area of a pickup truck, station wagon, or van.
Keep your eyes peeled. Avoid situations where you’ll have to back up in areas where young children are walking or playing. Also, make sure children get into their house once you drop them off before driving away. Always pay attention to your surroundings in the car.
Don’t play parent in the car. When you are driving carpool, your most important responsibility is driving. When children begin acting out, don’t try and solve behavior problems while driving. If the problem is affecting your driving, pull the vehicle over at a safe place to deal with the issue.
Pay attention to school guidelines on carpool lines. All schools have different systems in place to manage their carpool lines. Be observant of your school’s system and abide by their speed limit and drop-off and pick-up locations and times.

Considering an umbrella insurance policy would also be wise if you are involved in a carpool. It would provide you with more liability protection in the event that you are involved in a car accident.

Special thanks to GMAC Insurance for sharing these helpful tips!