Did You Change Lately?

Changes in home ownership and occupancy can affect insurance coverage. You must find the right policy for the property and its use— in effect, the round peg for the round hole.

 Here are the basic property insurance policies and what they cover, along with some changing circumstances we often discover that no longer work for these policies.


A homeowner’s policy will cover 1-4 family units and/or contents owned by an individual or a trust, and occupied by the owner, trustees or beneficiaries. It will cover both the property and the liability for stated perils. The home must be occupied and furnished within 60 days of the effective date— sometimes 30 days, if the insurance company’s guidelines require.
A business owner’s policy will cover property units owned by an individual, partnership, corporation or any combination of those. It will cover both the property and the liability for stated perils. The property must be occupied and furnished within 30 days of the effective date.
A dwelling fire policy is designed to cover the structure of a building owned by an individual or a trust which is occupied, but not by the owner. It will cover liability for the premises only.  The home must be occupied and furnished within 60 days of the effective date— sometimes 30 days if company’s guidelines require.

Obviously, the family with a primary home or a rental property occupied by a year-round tenant are the round pegs. But what happens when there are different circumstances than those mentioned above— in essence square pegs? Unusual circumstances seem to be growing more rapidly than the insurance industry can accommodate. Here are some common ones that I am seeing:
For health reasons, a person has to permanently move to a care-giving facility—leaving their home unoccupied.

The home is being foreclosed-on, and the owners have left the home.

For legal or tax purposes, the home ownership shifts to an LLC, LLP or corporation.

You purchase a new home, but want to do work on it before moving in, and it will take longer than 30 days.

You purchase a home with the intention to renovate and resell.

If you do not communicate these changes or intentions to your local insurance agent, Jason Shroot, it can jeopardizes your coverage for claims even though you continue to pay premiums. In some circumstances, homes will be covered until the existing policy period ends, as in the case of a deceased homeowner. In other cases, coverage may extend to your changing circumstances for 30 or 60 days before the insurance contract or specific coverage voids, as in the case of a vacant home. Or at claim time, you could find that you have no coverage since you’re no longer adhering to the insurance contract you signed.
A good example occurs when a primary home becomes a rental home. The remedy is to find a policy that fits the changed circumstances; coverage may be different and more expensive especially in the instance of vacant-home policies. An appropriate policy is a necessity.
These days, Jason Shroot is seeing that the Insurance companies are taking a very hard line with changed circumstances, most likely due to the huge increase in vacancies, foreclosures and arms-length liability transactions— all spurred by these difficult economic times.   Insurance Companies have even increased the scope and frequency of inspections to help manage the situation. In essence, insurance companies no longer allow square pegs in round holes.

Please Contact Jason Shroot at 714-988-3325 and let's please review your insurance policy situations.

Please also contact Jason Shroot at www.JasonSellsInsurance.com or jason@diversifiedinsurancequotes.com

Rising Cost of Building Materials: Is Your Property's Dwelling Coverage Sufficient?

ARE YOU KEEPING UP WITH YOUR COVERAGES?

Insurance Journal recently cited a report indicating, “Commodity price volatility and the rising cost of raw materials such as steel are fuelling a rise in rebuilding costs for plants and facilities, particularly for companies operating in the energy sector.”

Jason Shroot recalls that this report went further on to warn us that this imbalance could potentially have disastrous consequences for individuals and companies that don’t increase their insurance coverage. They could learn that while they are insured against what can happen one minute from normal, their amount of coverage may be inadequate.
In charting a prudent risk management strategy, all companies, not just energy companies, need to regularly update the repair and replacement cost for their property, plant and equipment. In addition to price volatility and rising costs, the replacement cost for equipment can skyrocket. While computer hardware costs may go down, other areas of a business may require increased investment. A machine’s replacement cost could potentially be many times its original cost. This “new normal” must be accounted for.
Choosing the amount of insurance coverage necessary to resume operations is a careful balancing act requiring the help of seasoned professionals who can help you see the bigger picture. Because external issues will invariably change, both sides of the equation must be balanced on a regular basis. The risk management professionals at JASONSELLSINSURANCE will help your company determine if its amount of coverage is adequate to meet any changed circumstances.
Jason Shroot can assist you in reducing the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To Identify and Correct Any Coverage Gaps In Your Insurance Please Contact Jason Shroot at 714-988-3325 or Jason@diversifiedinsurancequotes or http://www.jasonsellsinsurance.com/

Consumers Remain in Denial about Planning for Long-Term Care

Consumers Remain in Denial about Planning for Long-Term Care According to New Study

Study Shows a Lack of Education on Future Long-Term Care Needs and Presents Opportunity for Their Trusted Advisors




KIRKLAND, Wash., Nov. 8, 2011 /PRNewswire/ -- The majority of adults believe that long-term care insurance should be purchased between the ages of 45-64, yet 82 percent of this age group have not purchased a policy, finds a new study from the 3in4 Association. The study, sponsored by Genworth Financial, also shows that since the 2008 financial crisis, only 20 percent of adults have taken any action on their financial strategy and almost half of respondents do not expect to add anything to their plan in the next two years.

"Many people are in a state of paralysis from the economic downturn and are unsure about what to do next. Our goal is to shift their focus from the present to the future and to what they may require as they age," says Margie Barrie, Vice President, 3in4 Association. "Long term care planning specialists can play a large role in helping clients plan for their potential long-term care needs in order to protect their assets in retirement."  Jason Shroot definitely agrees with the idea of having a long term solution for your long term needs.  Please contact Jason Shroot at 714-988-3325 or jason@diversifiedinsurancequotes or please visit http://www.jasonsellsinsurance.com/.

According to the study, younger respondents, the 25-44 age group, are most likely to want more information about long-term care compared to older respondents (65 years or older). This presents an opportunity for long-term care planning specialists, as less than half of those in this younger age group reported turning to a planning expert for information on long-term care.
"Younger generations are especially in need of education on the importance of long-term care as they create and review their financial plans," says Barrie. "We know that 3 in 4 people will need more coverage than for regular healthcare as they age, so a plan that addresses long-term care needs is essential.

About the Study: Sponsored by Genworth Financial for the 3in4 Association, the study was conducted August 17-21, 2011, and surveyed 1,073 adults ages 25 years and older, with incomes of $50,000 and above.

About the 3in4 Association: The 3 in 4 Need More campaign is dedicated to raising awareness of the importance of long-term care planning. The campaign utilizes multiple marketing strategies to increase awareness. The 3 in 4 Need More campaign is a public service of the 3in4 Association, which operates as a nonprofit 501(C)(6) corporation. Members of the campaign cross all industries, genders and ages. The campaign supports an online platform located at www.3in4needmore.com. This resource supports consumer plan development, and products and services that should be considered in long-term care planning. The platform also provides awareness support for long-term care planning specialists.

This release was issued on behalf of the above organization by Send2Press(R), a unit of Neotrope(R). http://www.Send2Press.com.   SOURCE 3in4 Association.

PLEASE CALL JASON SHROOT AT 714-988-3325 FOR MORE INFORMATION ON YOUR LONG-TERM CARE NEEDS.  Jason Can Also Be Reached at www.jasonsellsinsurance.com or jason@diversifiedinsurancequotes.com