Federal Flood Insurance Expires May 31 ~ Hurricane Season Starts June 1
Buyers and homeowners alike need to be aware that the National Flood Insurance Program (NFIP) expires May 31, just one day before the opening of Hurricane Season.
Homeowners with a policy in force will have active policies during the halt of the Flood Insurance Program.
Buyers who need flood insurance for their closing must secure coverage before the May 31 deadline. Sellers may be able to transfer their policies to the Buyers. Buyers and their agents must be pro active about Flood Insurance policies at the beginning of a contract.
There will be no Flood Insurance available after the May 31 deadline.
The type of Homeowner's insurance that most homeowners have does not cover rising water in a home. NFIP insurance covers flooding from heavy rains, melting snow (not a problem here) and coastal storm surge. The NFIP policy pays $250,000 per house and $100,000 for contents. There is a 30-day waiting period from the start of the policy to its coverage date. Otherwise, every home in the state would file for flood insurance three days before the next hurricane. There is pending legislation in Congress extending this program for 5 years with discussions of increasing the policy payment to $335,000 and contents coverage to $135,000. Please contact your Congessman and Senator and urge them to extend this program immediately.
To Ensure Proper Flood Insurance Coverages at Low Cost Please Contact
As the policy debate over the medical malpractice insurance crisis continues dueling claims about its causes and suggestions for policy solutions have highlighted the need for better understanding of how medical malpractice insurance works, why premiums change and what can be done about it.
Medical malpractice is professional negligence by act or omission by a health care provider in which care provided deviates from accepted standards of practice in the medical community and causes injury or death to the patient.
Of course there is insurance to protect medic al professionals. In fact medical professionals are required to maintain professional liability insurance, in most states, to offset the risk and costs of lawsuits based on medical malpractice.
Most health care providers need to buy professional liability insurance. Nearly all states require that physicians have liability insurance. Even in states that don’t, physicians usually have to have insurance coverage in order to get privileges to see patients at a hospital. There are states, like Florida, where physicians can choose to “go bare” (i.e. carry no liability coverage). It is estimated that approximately 5% of physicians do not carry liability coverage.
Medical malpractice insurance is usually purchased from commercial or physician-owned mutual companies either individually or through a group practice. Typically, hospital and other health care facilities purchase their own insurance, and hospitals that directly employ physicians buy a policy that covers both the hospital and its medical staff. When a physician is employed by the federal government they don’t buy insurance; if they are sued the suit is brought against the federal government, which insures itself.
Insurance companies set premiums based on 1) their expected payouts for providers in a particular risk group; 2) the uncertainty surrounding this estimate; 3) their expected administrative expenses and future investment income; and 4) the profit rate they seek. They use information on past losses and expenses, combined with other information, to help them set rates.
A physician’s professional liability insurance does not work like auto insurance, which is generally experience rated. When a motorist has a claim, their insurance premiums will undoubtedly go up. Physician malpractice premiums, by contrast, are usually priced according to the physician’s specialty and geographic location only (note that some insurance companies also consider number of hours worked and types and setting of work within the specialty).
On average it takes four (4) to five (5) years to resolve a claim from the date of an incident. In most states plaintiffs (the injured party) can wait two (2) or three (3) years after discovery of an injury that allegedly resulted from malpractice to file a claim. This is unfortunate for the insurance company as it leaves a lot of uncertainty about what the insurance companies’ liability will ultimately be. The difficulty of estimating what their liability will be makes it hard for insurance companies to set premiums accurately.
Malpractice insurance is regulated by state commissioners to ensure rates are not excessive, inadequate or unfairly discriminatory. Stakeholder groups disagree about whether the current environment should be labeled a “crisis”, but there is general agreement that malpractice insurance has become less affordable and available.
If you're a Medical Professional or Know of A Good Doctor In Need Of Our Services Please Have Them Contact Jason Shroot @ 714-988-3325 or Jason@diversifiedinsurancequotes.com
Ensuring The Proper Auto Insurance Coverage Choices
Car insurance is a necessity in being able to drive a car legally. Many states have passed a law that you cannot get licenses or car license renewals without showing proper car insurance. This means that whether you like it are not your monthly expenses will have to include car insurance. Luckily there are over 30+ different companies that offer car insurance and most usually you can find great coverage at a decent monthly rate. It will depend on a lot of things such as age, gender, marital status, and your credit scores. When you are deciding between the choices in coverage you can have there are many things to consider.
First I will tell a little tale as an example. A woman had a 1984 jeep renegade that had an oil leak. She didn’t know much about mechanics and felt the vehicle was safe enough to drive for a week until her father could help find her a mechanic in the college town she was living in. What she didn’t know is that oil leaking on to a carburetor could catch fire in less than ten minutes. While the jeep had been taken to a mechanic three times prior the mechanic had not fixed the problem, didn’t warn her of the danger, and wasted time until the car had to be shipped to her new address. After a week of having the vehicle it caught fire because of the oil leak. She was only covered for liability since that was all she could afford while going to college. The car insurance didn’t cover fire.
The reason I have described this story is that had she had fire coverage she would have been able to file a claim and get a little money for the damage towards a new car or towards having that one fixed. When you are trying to ascertain how much you can afford to pay and the coverage available you have to consider what could happen and how expensive it could be to you if you don’t have proper coverage.
When you consider the choices in coverage you have liability, comp and collision, and choices in the actual monetary coverage for the motorist, uninsured motorist, and other aspects of car insurance. You need to select a coverage that you can afford, but that will not leave you in a situation where the car is not covered enough. In other words it is best to look at the cost of the car, the year it was made, and the potential hazards of where you live. In Alaska they offer moose and bear coverage under the comp and collision policies just in case. If you live in a large city you are going to want to have a lower deductible for damage in the event the car is broken into and your radio is stolen to meet the deductible with ease. Also consider the roadside assistance and car rental replacement if you don’t have roadside service.
For More Coverage Options Please Contact Jason Shroot @ Diversified Insurance Quotes At 714-988-3325 or Jason@diversifiedinsurancequotes.com
Have You Ever Hired Maids To Help Clean Your Home?
When one mentions employment practices liability insurance, most homeowners likely would think of
corporations, small businesses, hospitals, schools or commercial construction sites.
Yet according to the U.S. Dept. of Labor, there were 917,120 maids and housekeepers employed in 2009. And households who hire residential employees should be aware of the potential risks associated with becoming an employer, because domestic employees also sue.
Homeowners must recognize that they become employers the moment a domestic employee first walks through the front door. This relationship exposes the homeowner and all household residents and guests to litigation for conduct toward domestic employees.
Consider the following scenarios:
1 The maid begins to feel like she has been sexually harassed because the husband often displays a bawdy sense of humor and tells obscene jokes
2 The wife makes a racially derogatory comment to a friend on the phone, which is overheard by the employee, who is later fired
3 The property manager brings a groundless sexual harassment lawsuit against his employer because he has fallen on hard economic times
4 The employer terminates the nanny because the employee was unwilling to do something illegal or immoral.
The above examples show how accusations of harassment and discrimination—originally found in the workplace—have entered into the perceived safety of the home as well.
Jeff Cox, president and CEO of Lloyd Bedford Cox Inc., with offices in Bedford Hills, N.Y., and Greenwich, Conn., said that his clients should know about significant exposures when they hire domestic help. "It’s amazing how quickly a relationship can turn south when there is a dispute and money is involved," he said.
Cox pointed out that his agency uses a "risk analysis interview" to identify its clients’ exposures. Once the agency assesses the clients’ lifestyles and realizes that they have domestic employees or are planning to hire someone, the conversation switches to personal-line employment practices liability (EPL) coverage.
"Clients are bound by the employment rules and regulations of their state, so we work with them and the carrier to insure proper coverage," Cox said.
Liability
In today’s litigious society, inappropriate words from a guest to a housekeeper or a few seemingly innocent jokes can create a hostile work environment and ultimately cost a client thousands, if not millions, of dollars.
Moreover, homeowners are subject to wrongful employment allegations. According to reports from Jury Verdict Research, the median employment practices settlement for 1999-2005 was $75,000; this figure increased from the previous time period of 1997-2003, in which the settlement was $60,000. However, these settlements do not factor in the incalculable cost of a damaged reputation. Even if the allegations are false, substantial defense costs averaging more than $100,000 can result. Additionally, research has shown that juries have a tendency to be sympathetic to the plaintiff in these cases.
With today’s shrinking economy, some homeowners may decide they need to trim their domestic staff. Letting employees go may open homeowners to wrongful termination lawsuits. To help avoid a suit, a written agreement between homeowners and employees should contain an "employment at will" clause that allows termination without cause for any reason.
Employers’ Responsibilities:Even conduct among the residential staff creates exposure. Clients often lose sight of their responsibilities as employers because the household is seen as a safe and informal space and verbal contracts are often vague.
Wealthy individuals often think of domestic employees as "part of the family" instead of maintaining a traditional employer/employee relationship. However, state and federal employment laws do apply to these relationships. Homeowners place themselves at high risk if they do not manage their staff by communicating clear rules and expectations. In fact, with the assistance of qualified legal counsel, homeowners should draft employment manuals and contractual agreements.
Household employers need to clearly communicate their expectations and keep a well-organized and documented human resources file on every employee. An appropriate household management assessment can provide clients with advice on hiring, legal issues and security measures with regard to household employees. Proper background checks, well beyond simple Internet research, are recommended for anyone working in the home.
Homeowners also need to know that they cannot totally control the work environment. They can be held liable for conduct that might be perceived as obscene, discriminatory or offensive. Thus, homeowners should take steps to educate themselves and their families about their responsibilities toward domestic help. Staff members also need to be trained on proper work conduct.
Employment Practices Liability:EPL insurance can provide coverage for settlements, legal fees and jury awards for insured employers accused or convicted of wrongful employment acts. In addition, this insurance sometimes includes
overage that can help pay public relations expenses to minimize damage to the homeowner’s reputation.
Homeowners and umbrella policies exclude employment-related exposures. For the few insurance carriers that offer domestic EPL insurance, it may be offered as stand-alone or as an endorsement to a homeowners or excess liability policy.
Homeowners need to be aware of the many liability exposures that are associated with hiring domestic help. "Clients should not be afraid of the risks, but understand that these realities do exist," Cox said.
Clients of Jason Shroot & Diversified Insurance working closely to help their clients mitigate the risks and secure proper employment liability practices coverage in the event a loss does occur.
If you live in a condominium or rent an apartment, your landlord's or condo association's insurance should cover damages to the building -- meaning the structure itself. But such a policy only covers their building and not your belongings. That's why you should have renter's insurance. Regardless of whether you live in a house, condo or apartment, replacing your stuff or defending yourself against a liability lawsuit can take a big toll on your bank account.
Basic home insurance policies are generally known by their number. Both the HO-4 (for renters) and HO-6 (for condo owners) policies cover losses to your personal property (or what is known as "Perils"):
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicles
Smoke
Vandalism or malicious mischief
Theft
Damage by glass or safety-glazing material that is part of a building
Volcanic eruption
Falling objects
Weight of ice, snow, or sleet
Water-related damage from home utilities
Electrical surge damage
That just about covers it, doesn't it? You may notice, however, that floods and earthquakes aren't on the list. If you live in an area prone to those, you'll need to buy a separate policy or a rider on your renter's policy.
It is necessary to understand that renter's insurance policy may be written as "actual cash value" (ACV) or "replacement cost coverage."As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen. So, if you bought a television five years ago for $300, it would be worth significantly less today. While you'd still need to shell out about $300 for a new one, your insurance company will pay only for what the old one was worth, minus your deductible.
Replacement cost coverage, on the other hand, will pay for what it actually costs to replace the items you lost. Usually, you'll have to pay out of your own pocket to replace your damaged items and submit the receipts to the claims adjuster for reimbursement. Even so, you'll still get a bigger chunk of change back than if you bought ACV coverage.
Make sure you also let your agent know about any particularly valuable items you have. Things like jewelry, antiques and electronics may be covered up to a certain amount, but if you have some items that are unusually expensive, like a diamond ring, you'll probably need to purchase a separate rider. If you don't talk to your agent about an expensive item when you buy the policy, you probably won't be able to recover the loss.
Contact Jason @ 714-988-3325 To Ensure You Obtain The Proper Coverages With Low Cost Insurance. Diversified Insurance Will Insure You, Your Family & Your Peace of Mind !
If you think about it, a regular paycheck is the foundation of financial security. Every
person’s income pays the bills, funds savings and retirement accounts, and supports their lifestyle. Income is often a source of self esteem and self worth. Imagine the effect it would have on a breadwinner if they were no longer able to provide for their household.
Not every worker will experience a loss of income because of an illness or accident, but ignoring the possibility of such an event is like playing Russian roulette....There is a disconnect between a consumer’s perception of the risk of disability and the actual facts — and at the root of this are myths and denial. It is Jason Shroot's responsibility with the help of Diversified Insurance Services is to help clients understand the reality of the risk and adequately plan and protect themselves and their families. Myth # 1: It won’t happen to me
People certainly hope it won’t happen to them, but do they really understand the odds?
Research from the Council for Disability Awareness (CDA) found that while about 30 percent of employees will face a long-term disability during their working career, 73 percent of workers think their odds are 10 percent or lower, and 32 percent estimate their chances of disability at 2 percent or lower.
Myth #2: If I become disabled, it won’t last long
It’s true that most work absences are short, and people get back to work in a few days. But three in 10 workers will miss work during their careers for three months or more as a result of accident or illness, and when that happens, they can expect that disability to last an average of two-and-a-half years.
Myth #3: I’m covered at work
Many employers, especially the smaller-sized ones, don’t provide sick pay or long-term disability benefits for their employees. According to the Social Security Administration, 69 percent of workers have no private disability insurance. Surprisingly, many workers who are not covered at work think that they are. So encourage clients to learn about their benefits, and help them understand whether they have enough protection to pay their bills should a disability strike.
Myth #4: Workers’ comp should cover me CDA’s research shows that 95 percent of disability claims are not work-related. The top three causes of long-term disability — heart disease, cancer, and musculoskeletal disease — are usually not work-related, and therefore not eligible for workers’ comp.
Myth #5: Social Security should be enough
Although Social Security Disability Insurance (SSDI) is important for more than 150 million U.S. workers, it is difficult to qualify for — half of all initial SSDI claim filings are denied — and the average monthly benefit is only $1,062.
Myth #6: I have enough to live on . . . if I’m ever disabled
Seventy-one percent of American employees live from paycheck to paycheck without enough savings to cushion a financial blow. Many nest eggs were severely depleted by the most recent stock market crash, and many Americans carry too much debt.
For Questions & Quotes Contact Jason Shroot @ www.diversifiedinsurancequotes.com
714-988-3325 or jason@diversifiedinsurancequotes.com
How Does Credit History Affect Car Insurance Rates?
How Does Credit History Affect Car Insurance Rates? Many personal car insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new car insurance, keep in mind that many insurers are looking at your credit history to determine your car insurance rates. I hope that we will be able to let you know why and how they do this.
The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.
Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.
The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.
Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says it’s OK to run a consumers credit for insurance purposes.
Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.
