Desperate Homeowners Turn To Arson - Insurance Fraud Alert

With the foreclosure crisis still rippling across the American economic landscape, some desperate property


owners may be turning to a drastic form of insurance fraud -- burning down their own homes.


Arson insurance fraud involves home and business owners setting fire to their properties so that they can get

insurance money to pay off loans and mortgages. While arson is nothing new, it may be especially enticing

to those who owe more on their mortgages than what their homes are worth, according to the Coalition

Against Insurance Fraud.

If a fire is an accident, or if a random arsonist sets fire to your property, your insurer will pay your claim.

However, if you set the fire on purpose (or if you hire someone to do it), your home or business insurance

company will not pay for it -- and you could end up in prison.


Arson is a serious crime in all 50 states, and the statistics are unsettling. According to the Insurance

Information Institute, more than 56,000 cases of arson were reported to the FBI in 2010. And this was

actually a drop from 2008, when 63,253 offenses were reported.


About 14 percent of arson cases are insurance-motivated, according to the Insurance Research Council,

and it's an expensive crime. Arson led to the destruction of nearly $800 million worth of property in 2010 --

down from about $1 billion worth of property damage in 2008, according to the National Fire Protection

Association.


Insurance companies and law enforcement alike have an interest in thoroughly investigating the true origin

of fires because arson can cause tragic loss of property and life -- and boost the cost of insurance for all

policyholders. In fact, many insurance companies now have special arson fraud divisions dedicated to

investigating suspected arson.

To See How Much Money You Could Save On Your

Home / Auto / Business Insurance.

Get Your Free Insurance Quotes Today By Calling Jason Shroot

at 714-988-3325

jason@diversifiedinsurancequotes.com

www.jasonsellsinsurance.com

Condo Insurance For Dummies 2011

Condominium insurance also known as a HO-6 Policy, has many little nuances that the common person should know about.  There is one area of Condo Insurance that I think is very vital and often times gets overlooked by newer agents trying to close a deal on price and by clients who may not have a full knowledge of this type of coverage.

Call Jason Shroot @ 714-988-3325

 

The area I want to address is called “Building Property.” Not “Personal Contents!” Let me explain the difference. Personal contents is everything that would fall to the ground if you turned your place upside down. Building property is the more permanent types of fixtures, or as some banks call it “Walls In.” let me give a few examples. Kitchen cabinets, granite countertops, tile flooring, carpet, bathroom cabinets, improvements on a staircase, etc…

Now here is where I want to caution the common person. Please evaluate the cost of all that Building Peroperty in your Condo, especially if you did upgrades or remodeling. Review your policy with your insurance company or agent and make sure you have enough “Building Property” coverage to cover it if there was a giant loss due to flooding from the upstairs or due to fire.

Call Jason Shroot @ 714-988-3325
This is an absolutely vital area of coverage that needs to be there on your policy! And we all know there are a lot of Condo’s in this Orange County area. Do not confuse this coverage with the “Master” or HOA policy your Association may carry on the structure of your property and the common areas. Those Master policies will not cover the inside of your home.

Please Contact Jason Shroot at Diversified Insurance Solutions For More Information On The Proper Way To Protect Your Condominium at 714-988-3325.

Why Restaurant Insureds Should Invest in Cyber Risk Coverage

Why Restaurant Insureds Should Invest in Cyber Risk Coverage

I found a great article that I would like to share with you on Cyber Liability coverage for your California Restaurant By Heidi A. Strommen, who is president of ProHost USA, Inc.  http://www.agentandbroker.com/News/2010/11/Pages/ProHost-USA-offers-restaurants-cyber-risk-insurance.aspx

The Internet has dramatically changed the way most companies operate. For many businesses, their insurance may not have kept pace with their exposure when it comes to the rapidly evolving and emerging world of cyber liability. Restaurants are no exception.

In the last few years, it has become commonplace for restaurants to use the Internet in many different ways to promote and to operate their businesses. Any given restaurant will likely have its own website, a Facebook and/or Twitter account, an Internet-connected computer network at one or more office or restaurant locations, and an electronic payment processing system (credit card or e-check). The owner, manager or other employees may own laptops that contain customer information. Some restaurants have a frequent diners club that may require customers to enter credit card information on a website. In addition, restaurants may sell food products or other merchandise online.
These are all useful business tools but they also may leave a restaurant exposed to risk that is not covered under a standard commercial insurance policy. Typical general liability policies often do not cover activities associated with website publishing or network security, for example. Common cyber risk exposures include, but are not limited to:

•Data/security breach
•Copyright or trademark infringement
•Data destruction and/or corruption as a result of a virus
•Cyber extortion
•Hackers, worms, and other cyber meddlers
•Firewall and network security attacks

Restaurants that regard cyber risk coverage as optional may not be accurately assessing their potential uninsured exposure. The cost of cyber liability losses can add up quickly. For example, according to a widely-cited 2009 Ponemon Institute Study, the average business loss from a lost laptop is $49,276 and most of that expense is associated with the cost of a data breach.

It behooves any insurance agent to review with his or her restaurant clients the current coverage in relation to potential cyber liability exposures based on the nature and size of the operation. There are a number of key areas to include in this assessment. (Note – this list is not all-inclusive.)

Website Publishing

A restaurant that maintains a website may be held liable for wrongful acts associated with the content posted on that web site. A wrongful act may include (but be limited to) actual or alleged errors, misstatements or misleading statements that result in an infringement of another's copyright, trademark, service mark or right to privacy.

Network Security

Restaurants that maintain a computer system that is connected to the Internet have a potential liability due to a breach of that system. Unauthorized access may result in the dissemination of personal information held on the computer system and/or the transmission of a virus to a third party. Additionally, the restaurant may incur costs to replace or restore electronic data or computer programs that are damaged or destroyed as a result of a security breach.

Extortion Threats

Cyber extortion is a crime involving an attack or threat of attack against an enterprise, in combination with a demand for money to avert or stop the attack. Cyber extortion may take different forms including the use of software that encrypts a victim's data and then the cyber criminal demands money for the decryption key. Cyber extortion may also include threats to publish a client's personal information or destroy or corrupt records. In recent years, incidents of cyber extortion have grown significantly and the criminals often operate from countries other than those where their victims are located thus making it difficult to prosecute.

Loss of Income

A restaurant may experience a loss of business income and/or extra expense as a direct result of an e-commerce incident. For example, if a virus or other malicious attack damages or destroys a computer system vital to the restaurant operation, it may result in a shut down of operations for a period of time and a corresponding loss of income.
Security Breach Expenses

Insurance agents should be familiar with Data Breach Notification Laws in the state (or states) where they operate. The cost of compliance with notification laws can be a major expense for a business to absorb. When evaluating possible insurance products to address cyber risk, it is important to consider what services the product includes for dealing with the potentially devastating consequences of a data breach. Most businesses will need outside expertise to manage the crisis and to ensure they are meeting regulatory requirements. The leading insurance products today include assistance with tasks like developing an incident response plan and sending notifications to affected people, credit bureaus and government offices. Some insurance carriers provide data breach services via a third party firm that specializes in assessing, mitigating and managing a breach crisis.

Public relations expense is another area that it would be wise to consider. A restaurant may suffer damage to its reputation in the event negative publicity results from an e-commerce incident. The most comprehensive insurance policies will provide coverage for public relations expenses related to protecting or restoring the reputation of the business.

Cyber Risk: E&O Threat or Opportunity Knocking?

The emerging area of cyber risk presents an opportunity for an insurance agent to differentiate him or herself from the competition. The agent who understands the exposures and the available insurance products can provide a valuable service to his or her clients and prospects. On the flip side, the uneducated agent may experience a potential errors and omissions risk if existing clients do not understand the cyber risk exposures that are not covered by their current insurance program. Further, that same agent is missing the potential marketing opportunity that cyber risk represents.

Every restaurant that keeps electronic data and also uses the Internet to conduct e-commerce or general business operations has an exposure.

Jason Shroot With JasonSellsInsurance.com 

Can Be Reached At: 

714-988-3325 

jason@diversifiedinsurancequotes.com

College Costs — Having a Smart Plan in Place

College Costs — Have a Smart Plan in Place
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With the cost of college doubling every 12 to18 years, it's imperative that parents develop a college savings strategy. Having even a modest plan in place can produce dramatic results: Investing just $100 a month for 18 years will yield $48,000, assuming an 8% average annual return. Here are three common college savings plans:

529 Savings Plan   

Contributions are nondeductible. Earnings and withdrawals are tax-free if used on qualified education expenses. Most plans let you save in excess of $200,000 per beneficiary. There are no income limitations or age restrictions, and you can change the beneficiary to another family member, including yourself.

Coverdell Education Savings Account (ESA)

Formerly the Education IRA, ESA contributions are nondeductible and limited to $2,000 per beneficiary per year. Earnings and withdrawals are tax-free if used by the beneficiary before age 30 on qualified education expenses. Eligibility is constrained by Modified Adjusted Gross Income (MAGI): $190,000 or less for couples or $95,000 or less for singles.
Prepaid Tuition Programs

Prepaid tuition programs allow parents to lock in a tuition rate and begin paying the cost of college today. Many states have their own programs but might limit usage to state institutions only. Alternatively, there's a 529 version that can be used at any accredited degree-granting school, whether it is private, public, undergraduate or graduate, regardless of location.

Whichever college savings strategy you choose, look for low-cost plans with an age-based portfolio that gradually shifts the asset allocation from stocks to bonds and cash as your child ages.


Please Speak With Jason Shroot Your License Financial Insurance Agent & Consultant About Any Insurance or Financial Products At 714-988-3325 or Via Email At jason@diversifiedinsurancequotes.com

PROPERLY insuring your Rental Property

So, you’re going to be a landlord! Since it’s nearly ALWAYS a good time to buy real estate, you’re making an excellent move. The long-term value of real estate from an investment standpoint is, in my humble opinion, the best leverage available.

Now that you’ve taken that step, it’s important to get the right kind of insurance to protect not only your investment from the ravages of fire, vandalism, smoke, and broken water pipes, but also protection from the greedy hands of your tenants should they sustain an injury on your property in the form of Liability Coverage.

There’s usually 4 primary areas of coverage you want to explore when looking into insurance for your property that you rent to others. (doesn’t matter if it’s a single family dwelling, duplex, multi-plex or a condo.

1. Building Coverage – Protection for the structure.
2. Personal Property Coverage – Protection for the contents of the unit that you own. This includes refrigerator and window treatments primarily. It would also include any other non-building type items that you own and are stored or used in the rented dwelling.
3. Loss of Rents Coverage – This pays your fair market rent value to you whenever your property is rendered uninhabitable from a covered loss.
4. Liability Coverage – This is that important coverage that protects you when tenants or their guests are injured or sustain some “other kind” of “loss” that they think is YOUR FAULT and they come after you with vengence and an attorney!

1. BUILDING COVERAGE

This coverage is identical to homeowners insurance in that it protects the building against physical loss from perils like fire, smoke, vandalism, water damage from broken appliances and pipes, falling trees, automobiles, etc. It’s usually written on an ALL RISK basis. Which is fancy insurance talk that simply means EVERYTHING except certain listed exclusions is covered. In other words, if something happens to the structure and it’s NOT listed in the exclusions… IT’S COVERED!

You’ll want to get enough coverage here to rebuild the structure at current construction costs. Ask your agent of a general contractor what current constructions costs would be for a place like yours. For a more complete discussion, read HOW MUCH HOMEOWNERS INSURANCE DO YOU REALLY NEED (the section on the building coverage walks you thru the same thinking you’ll need to determine coverage on your rented property.)

2.  PERSONAL PROPERTY COVERAGE

This portion provides coverage for items that you likely brought to the property. (Exception here might be a refrigerator or window treatments) Rule of thumb is that if it’s permanently part of the structure it’s a building item, if not, it’s likely a personal property item. Most window treatment items (curtains, blinds, curtain rods) will be personal property (check with your agent to be sure) Refrigerator is personal property. An installed dishwasher is likely a building item.

Usually you don’t need too much coverage here — $2000 to $5000 is usually enough, but add your stuff up to be sure.

3.  LOSS OF RENTS COVERAGE

This is important to provide a consistent flow of income should you sustain damage to the property that renders it uninhabitable for a period of time. Policies can pay for up to 12 or 24 mos or some offer an indefinite period of time. Usually it’s just for a short time like a few days or a week or two.

4.  LIABILITY COVERAGE

This could be one of the most important decisions you make regarding your rental property insurance. My advice is to think of $1 Milliion as a minimum. The difference between $300,000 and $1 million is likely less than $100 per year ($8.00 per MONTH) Beleive me, a WISE investment in the protection of EVERYTHING you own. Liability losses can be wide ranging and EXTREMELY varied in nature.

Here’s a quick story about one…

Just this year a policyholder called me and told me that they were being sued because their tenant’s girlfriend accidentally let the tenant’s dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor’s dog. The landlord (NOT the tenant or the girlfriend) was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and… well, you know the drill. Fortunately my policyholder had not only their Rental Dwelling Insurance in place but also a $1 Million Liability Umbrella standing between this crazy neighbor and everything they owned. Without that, this could have been their problem…
They could have been paying off this “little problem” for years. They could have risked everything they own in addition to their FUTURE EARNINGS by not having the foresight to get adequate Rental Dwelling Insurance and a LIABILITY UMBRELLA policy.

You can insure your rental property, your personal property and your liability exposure in one simple policy. Be sure to take your time and spend a few minutes in the chaos of the transaction to talk with your insurance professional about these important coverages.

You can always Jason Shroot with Diversified Insurance Quotes with Questions & Quotes at 714-988-3325 or jason@diversifiedinsurancequotes.com

Should You Appeal Your Property Tax?

Should You Appeal Your Property Tax?


As much as 60 percent of taxable property in the United States is over-assessed.

That startling fact comes from the National Taxpayers Union, a Washington, D.C., advocacy group.

A Big Red Flag

Just as assessments increased during the real estate boom, they should now be lower for most homeowners — especially in California, where property values have plunged.

Telltale signs that your property may be over-assessed include:

Your neighborhood looks like foreclosure alley. When homeowners bail out of a neighborhood en masse, property values for the remaining homes can plummet.

Your neighbors have lower assessments. Similar homes (size/age/construction, etc.) should have similar assessments. Likewise, look for comparable homes in the area that have sold for less than your appraised value.

You bought your home in a bidding war. If you bought at the peak of the market and competed with other buyers for the same property, the sales price was probably overvalued. An overvalued property is an over-assessed property.

Your tax bill contains errors. Your tax bill lists your condo as a single-family home, or adds extra rooms to your place. That’s a problem. Mistakes happen more often than you may think. Many assessors don't even come on your property to inspect it. They may use historical information that's wrong (for instance, your home's square footage might have been incorrectly calculated on original construction documents).

You have “value reducers” in your home or area. When compared to other homes, your assessed value should be lower if your home is impacted by drainage problems, easements, heavy traffic, nearby railroad tracks and freeways. Ditto for depreciation factors, such as structural cracks, deterioration or chronic defects.

You Can Fight City Hall

If your property taxes haven't declined along with your house's value, you can take action: Appeal the assessment.

Sure, the process is tedious and bureaucratic, but appeal work is something most homeowners can do — about on par with representing yourself in small claims court.

The good news is that your chances of winning are good. Nationally, about one-third of the people who challenge their taxes see some savings. And we’re talking real money here. Consider an appeal for a $350,000 house where the value is reduced by 5 percent. This would reduce the assessed value by $17,500 and the property taxes by $525, based on a 3 percent tax rate.

Most property tax appeals are resolved at an informal hearing, which is the first step in the process. Your local tax collector’s/assessor’s office is the place to start. You can review comparable home tax valuations in your neighborhood either online or in person (these are public records, so don’t take “no” for answer).

You may also need the services of a good home appraiser (call a reputable real estate agent in your area and ask for a referral). This person will check your home and report his/her findings to your local property tax office. You can also hire a real estate agent with access to your local multiple listing service. They can quickly generate a comparable market analysis of homes both recently sold and those in escrow to hone in on your home's true value.

“I Protest!”

If you meet with the assessor but fail to reach an agreement, the next step is to protest the assessment.

Before your hearing, gather all your evidence and put it in order. For example, you may want to collect photos of comparable properties or put the market data into a spreadsheet that makes it easy for the hearing officials to follow your argument. Consider sitting in on somebody else's hearing before your appeals date to see how the board operates and get a sense of what arguments do and don't work.

To successfully make your case, you'll need to find three, five or more comparable homes in your neighborhood with lower assessments. Remember that truly comparable homes are homes nearly identical to your home's floor plan, age, lot size, improvements and other factors.

For More Information & Free Insurance Quotes Please Contact Jason Shroot @ Diversified Insurance

jason@diversifiedinsurancequotes.com

714-988-3325

Business Insurance for Tow Trucks

Business Insurance for Tow Trucks


We are expanding today on business insurance for tow truck companies. If you own a tow truck or a fleet of tow trucks you should consider a minimum of a $1M/$2M General Liability policy to cover your shop and other mishaps. We recommend $1M to cover the tow truck itself. Tow truck companies should also add at least $100,000 in Garage Keepers Liability depending upon how many customers’ cars are kept on premises. Some states will also request that you have uninsured motorists, under-insured motorists and personal injury protection. Finally we recommend a minimum of $250,000 in on hook protection to cover the cars you are towing.

Please contact Jason Shroot at Diversified Insurance Quotes to discuss your business insurance today!

714-988-3325
jason@diversifiedinsurancequotes.com
www.diversifiedinsurancequotes.com

Best Practices For Surviving An Earthquake

One of the challenges of living in Southern California is the risk of earthquakes.

As the third annual Great California Shake-Out is observed today (www.shakeout.org), the University encourages you to be familiar with best practices for responding to earthquakes.

This information will assist you and your family plan how to respond to an earthquake. Each household member should understand their plan and how he/she is expected to respond.

Best Practices For Surviving An Earthquake:

• If indoors, stay there. Get under a desk or table, or stand in a corner or doorway that does not have doors on it (do not go in a doorway with doors; they can swing back and forth violently). Protect your head, neck, and face.

• If outdoors, get into an open area away from trees, buildings, walls, and power lines.

• If driving, pull over and stop. Avoid overpasses and power lines. Stay in the vehicle until the shaking is over.

• If in a crowded place, do not rush for the doors. Move away from windows and shelves containing objects that could fall.

• If the earthquake causes items to fall off of shelves or cracks in the building, go outdoors after the shaking subsides and stay clear of buildings, walls, power lines, and trees.


Please Contact The Diversified Insurance Group at (714) 988-3325 With Any Questions.

Rising Male Unemployment Increases Need for Women to Buy Life Insurance

Rising Male Unemployment Increases Need for Women to Buy Life Insurance

As the recession drags on and layoffs continue, men now outnumber women on the unemployment line, according to the latest numbers from the Bureau of Labor Statistics.

The national unemployment rate for men is 9.8 percent; for women, it's 8.0 percent.
The reasons for the shift are clear. Men represent the majority of workers in the construction and manufacturing industries that have been hit hardest during the recession. Conversely, women dominate the health care and education sectors, which expanded nearly 3 percent in 2008.

Fewer Women Invest in Life Insurance

While women may be gaining ground in the labor force, they remain a distant second when it comes to protecting their loved ones with life insurance coverage.
Studies show that approximately one-third of women have no life insurance policy, and two-thirds of insured women from two-income households feel the life insurance coverage they do carry is inadequate.

Some Women Don't Realize the Value of Their Contributions

Even as some women serve as the primary breadwinner, most women feel they don't need coverage. Instead, they rely on the male's insurance policy, failing to realize that most two-income households rely on both incomes to make ends meet.

"Today, the traditional family model of husband as breadwinner and wife as homemaker holds only for a very small proportion of couples," said Mahshid Jalilvand, a professor of economics for the University of Wisconsin, in a report from the Bureau of Labor Statistics. "Dual-earner families are a major and growing segment of the labor force."

According to data from the Insurance Information Institute, a non-smoking 40-year-old female with a $500,000, 20-year term life insurance policy can expect to pay between $25 and $50 per month for coverage--a small price to pay to secure a family's economic future.

When dealing in dollars and cents, gender is irrelevant. Male or female, full-time employee or stay-at-home parent, if someone relies on you financially, life insurance is a must-have.

For a Life Insurance Quote Please Call Jason Shroot at 714-988-3325

Insurance Claims - An Inside Perspective

Insurance Claims – The INSIDE STORY

Insurance claims can be a first class PITA!

With that in mind, this little bit of INSIDE INFORMATION is offered.

EVERY CLAIM HAS:

1. An Adjuster (human type)
2. A File (either electronic or paper or both)
3. A Supervisor (also the human type)

The claim process looks like this (considering the three above items)

1. The Adjuster mediates and calculates the value of the claim.
2. The Adjuster documents The File. (Why? Because The Supervisor is going to check that file)
3. The Supervisor reviews the file. (Why? Because once a year, the state insurance commission will audit the insurance company and randomly review claim files to be sure that the money paid out was justified, documented and in accordance with state insurance law. When there’s an issue, the insurance company is fined — HEAVILY! )

Here is the extremely valuable information ! When you’re negotiating with the insurance company to settle your claim, remember while making you happy is important to them, passing the eventual audit is more important. A badly documented or poorly calculated claim can cost the insurance company — MANY MORE DOLLARS than giving you a couple hundred extra for your bent fender.

Generally, the adjuster does not personally care how much they pay to settle the claim. Let me say that again.

Generally, the adjuster does not personally care how much they pay to settle the claim.

I say generally because you will occasionally run into that young buck, fresh out of ‘ADJUSTER SCHOOL” who wants to save the world and treats the insurance company money like his own. THAT’S a discussion for another day. They’re paid employees with families, bills, problems, vacation plans, and a host of other issues just like you and I face everyday.

The claim adjuster doesn’t really care what he pays to settle the claim.
The claim adjuster wants to get the file closed as much as you do.

As long as he can document the amount paid, he’ll write the check now and be done with it.

THEREFORE……

Whatever assistance you can offer to document a better value for your claim, the faster you’ll get paid.

1. When you think your car is worth more than they’re offering, get some documentation that supports that additional value.
2. When your repair job exceeds the insurance company estimate, get a letter or itemized estimate explaining the difference.
3. When the replacement cost of your kitchen exceeds what the insurance company is willing to pay, get pictures of your old kitchen and an itemized bid from the contractor that clearly indicates that you’re putting yourself back as you were — No better, no worse.
4. When the ‘facts of the accident’ are not clear, get witness statements or police report clarification.

The more you’re willing to work WITH the claim adjuster to properly document their file to justify higher payments, the more you’ll get paid for your claim.

Please Contact Jason Shroot with Diversified Insurance Services @ 714-988-3325 and let us help you with your claim process - that's why our agency is here for you !

What is employment practices liability insurance (EPLI)?

What is employment practices liability insurance (EPLI)?




EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.

The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage.

EPLI provides protection against many kinds of employee lawsuits, including claims of:

■Sexual harassment
■Discrimination
■Wrongful termination
■Breach of employment contract
■Negligent evaluation
■Failure to employ or promote
■Wrongful discipline
■Deprivation of career opportunity
■Wrongful infliction of emotional distress
■Mismanagement of employee benefit plans

The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.

To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the first place:

■Create effective hiring and screening programs to avoid discrimination in hiring.
■Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
■Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
■Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.

To locate an insurance agent that specializes in EPLI, go to

Diversified Insurance at 714-988-3325.

There is NO Grace Period in Insurance

There is NO payment grace period in insurance.  I don’t care what you’ve heard from your neighbor or your Dad or Steve your auto mechanic, when the due date for your bill comes and you don’t pay it, you DON’T have insurance anymore. This is called a Lapse In Coverage (Insurance Defined).  Used in a sentence:
“Whoops, I didn’t pay my bill on time and now my insurance has lapsed“

Scenario

You receive a bill in the mail for your Auto insurance.  The payment due date is September 15th.  September 16th comes and you still have not paid your bill.  You get into an accident on September 16th… Too bad, so sorry, better luck next time. You don’t have insurance (This is called a lapse, remember).
I don’t care if you have been with the Insurance company for 20 years or 20 days you only have insurance coverage for as long as you pay for it.  So the day you stop paying for your insurance you no longer have Coverage.

If You Forget To Pay Your Insurance Bill & Need Insurance NOW - Don't Hesitate Please Call Jason @ 714-988-3325 - Now Accepting Texts, Emails, & Collect Calls !!!

The Grace Period

“But JASON, what about the Grace Period? I pay my bill late all the time and its not a big deal”
When you pay your bill late and continue to have coverage that is not a Grace Period.  Your independent  insurance agent has to contact the insurance carrier and get your policy Reinstated (Insurance Defined).  That means for the three, four, five days that you hadn’t paid your bill you Did Not Insurance Coverage.  When you eventually make the payment your independent agent has to convince the insurance carrier that they continue to offer you coverage.

Habitual late bill paying is a Big Deal because it can lead to a non-renewal letter from the insurance carrier.  Every insurance application has a question approximately reading:
“Have you ever had coverage canceled, declined, or non-renewed in the last 5 years?”
You will have to answer this question YES and that means you’ll have to pay more annual premium dollars.

The Rub

I purposefully tried to not to sugar coat this Insurance Myth because I don’t want to you to get caught not having coverage.  You may not think this is fair and you may not think its right, but it is the Truth.  I don’t want you to get Non-Renewed and have to pay more premium.  I don’t make the decision as to whether or not a company decides to Non-Renew you so all I can do is help you to be informed on how to not let that happen and fight for you if it does.

So pay your bill on time.  That way we don’t have to deal with this.  If you are having trouble paying your bill contact your insurance agent and see if there is a different payment plan that might help you.

If You Forget To Pay Your Insurance Bill & Need Insurance NOW - Don't Hesitate Please Call Jason @ 714-988-3325 - Now Accepting Texts, Emails, & Collect Calls !!!

Planning a Halloween PARTY?!?

Planning a Halloween PARTY?!?

We've Got You Covered For Your Special Event - From Liquor Liability to Treaters Although homeowners insurance is not usually the first thing that comes to mind at Halloween, it should be one of the items that is near the top of the Halloween list. The mere fact of the increased exposure (meaning a stream of people visiting the property), increases the possibility of a homeowners insurance claim. Listed below are a few things a homeowner can do to reduce the risk of having to report a Halloween insurance claim: Keep Fido out of the way. The constant ringing of the doorbell and the Halloween hustle and bustle gets dogs excited. It's best to make sure that the dog is occupied or kept away from the door so that he does not feel the need to protect his turf or playfully jump on trick or treaters, knocking them to the floor. The last type of Halloween treat a homeowner wants is a liability suit because of the dog. Practice extreme caution with candles. While the orange glowing effect of a candle adds to the Halloween ambiance, it can cause a fire if the candles are not carefully placed and monitored. Illuminate walking paths for trick or treaters. It is possible to decorate a home for Halloween keeping with the dark and gloomy tradition while simultaneously providing enough light for the walking path. Whether the walkway is lined with glowing pumpkins or the muted illumination of solar lights, it is important for the homeowner to properly illuminate the walking path to avoid unnecessary trips and falls. Be careful of the 'shock and awe' affect. The Halloween celebration invokes thoughts of horror, fright and shock. However, in an attempt to reduce the possibility of a law suit, it is recommended to refrain from tactics such as suddenly jumping out from darkened bushes or other such scare tactics. These blood rushing tactics may be fun at an amusement park fun house, but it opens the homeowner up to another source of liability. Amusement parks carry Haunted House Insurance to cover such risks, homeowners do not. Purchase additional coverage. If the thought of pulling in the reigns on a Halloween celebration puts a damper on the fun, maybe its time to consider purchasing additional insurance to cover the holiday. Homeowners can call their insurance agent, Jason Shroot,  to find out how much it will cost to increase their liability limits to cover the increased holiday exposure. By taking just a few precautions, homeowners won't have to spend their time worrying about potential insurance claims. The only thing they should be concerned about is whether or not they have enough candy for the hungry little trick or treaters. Have A Happy & Safe Halloween Jason Shroot 714-988-3325

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The Surprisingly Fascinating History of (U.S.) Car Insurance

The Surprisingly Fascinating History of (U.S.) Car Insurance ~  By Paul Thompson


Auto Insurance Article  ~  Insurance Experts' Forum, September 1, 2010



The world's first car accident occurred in 1891 (arguably) and involved 2 Ohioans and a tree, but the world's first car insurance policy wasn't written until 1897. That means for 6 (doubtlessly crazy) years, people were driving hither and yon in their fancy new horseless carriages without a drop of coverage. Compound that with the fact that safety measures like, oh, stop signs, right-of-way, and driver training had not yet been invented, and you can begin to imagine the chaos of a world sans car insurance.

It's not like the idea of insurance didn't exist. As a concept, insurance had begun long, long before then. But perhaps more than anything, the mass production of the automobile in the early 20th century helped to revolutionize the industry — making it as standard today as that requisite new-car smell.
Legends, Licensing, and Liability

Since cars first started rolling off Ford's legendary assembly line in 1903, we've been driving them, decorating them, sleeping in them, and, yes, crashing them. But while more and more cars were hitting the road, early drivers were hitting trees, wagons, horses, and inevitably, each other as well.

In 1930, roughly 110 people were killed per day in car accidents. In 2000, with nearly twice the national population, fatalities per day increased by only 4 to 114. That's approximately 10 times more fatalities per registered vehicle back in 1930.

And while this figure is staggering, it's not altogether surprising if you consider that most drivers in the early days were untested and virtually untrained. Back then, they didn't have driving schools, driver tests, or driver licensing laws any more than we have hovercar training today. Massachusetts and Missouri were the first to establish driver licensing laws in 1903, but Missouri had no actual driver exam law until 1952.

In the early days, instead of standing in line for 2 hours at the DMV and taking numerous tests just to wait several weeks for your license to arrive, you could simply walk into your local licensing office, plunk down 50 cents (or so), and walk away the proud owner of a drivers license. Almost as easy as getting one from a Cracker Jack box.

But as we know all too well, simply having a license doesn't necessarily make you a good driver. And imagine what the roads must have been like at the turn of the last century. The combination of amateur drivers and unpaved, unmonitored roads proved tragic and highlighted the rapidly growing need for liability insurance.

Paul Revere XII's Fairly Tame Ride

Sadly, the history of car insurance doesn't have many dramatic revolutionary moments, so we decided to make one up.

After witnessing a devastating pile-up on Route 0 back in 1927, Paul Revere's great-times-twelve-grandson had an idea so revolutionary, so inspirational, he raced (at top speeds of 50 mph!) to the capital building of Massachusetts in his trusty Chrysler Imperial to spread his message. Unable to resist his passionate and eloquent speech on the innumerable merits of car insurance

(and this next part's true), Massachusetts soon became the first state to make liability insurance required by law.

(In an interesting and slightly unrelated twist, Paul Revere and the Raiders produced an album called "Midnight Ride" exactly 40 years later. It was a U.S. top 20 hit in 1967.)

By the 1940s, with the end of WWII and a subsequent surge in automobile production, most states had passed similar laws. Today, New Hampshire is the only state in the union without compulsory liability laws. (The whole "Live Free or Die" thing.)

From the Model T to the Dot-Com

Since Travelers sold the first policy 113 years ago, car insurance has evolved from simple handwritten contracts to the high-tech global industry that it is today. Here at Esurance, we're happy to be included in the car insurance history books (all best sellers, by the way) as one of the very first to offer car insurance online, back in 1999.

And since it first hit the web more than a decade ago, car insurance has continued to innovate and improve (and so have we). Now you can get a quote in just a few minutes, TCOB online, see pics of your car as it's being repaired, and all kinds of other cool stuff that Gilbert J. Loomis, the world's first policyholder, could scarcely have fathomed.

To Learn More About Auto Insurance In 2010 Please Call Jason @ 714-988-3325