There are many misconceptions when it comes to what renters insurance is and what it covers. Let’s cut through some renters insurance myths. […]
How can personal umbrella liability insurance help me, and do i really need it? What would Jim Marshall say? After a hectic work week, Jim Marshall was looking forward to a relaxing weekend with his wife and kids. He was just a few blocks from home when his cellphone rang. He glanced down to see who was calling. That split-second distraction was all it took for him to miss the approaching stop sign. Download the PDF version Not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2020 MyTPG.com All rights reserved Jim plowed into the side of a passing car. The accident resulted in serious injuries to the driver and passenger of the other vehicle. Jim was sued, found at fault and ordered to pay $1 million for medical expenses, lost wages and the “pain and suffering” of the injured parties. Although he had auto insurance, the policy had a limit of $300,000. That meant that unless Jim had another way to pay the remaining $700,000, his assets (retirement savings and college funds for his teenage sons) were at risk of being garnished. Fortunately Jim was able to keep his assets because he had a personal umbrella liability insurance policy to cover the remaining balance. Just as an umbrella shields you from the rain, an umbrella insurance policy protects you from a downpour—that worst-case scenario where you could lose everything in a lawsuit. Even if your assets are few, umbrella insurance also protects your income; in some settlements, wages can be garnished up to 10 years. An umbrella insurance policy protects you from a downpour—that worst-case scenario where you could lose everything in a lawsuit. In addition to extending the limits of your auto and homeowners policies, umbrella insurance also covers personal injury claims, including false arrest, libel and wrongful eviction, typically excluded by those policies. Dependent teenage drivers on your auto policy are also covered. Why put your nest egg, retirement savings and other hard-earned assets at risk? Umbrella insurance is an affordable layer of protection typically starting with $1 million in coverage, with additional coverage available if your financial situation changes. Contact TPG Insurance Services today for more information. Download the PDF version […]
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What Protection Does It Offer? Many people do not realize this, but most homeowner’s policies do not include earthquake coverage. You will need to purchase either a supplemental policy to your current homeowner’s policy, or a separate earthquake insurance policy. Automobile insurance policies generally cover vehicles for earthquake damage under the optional comprehensive portion of the policy. Download the PDF version Disclaimer: This brochure is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy. ©2020 MyTPG.com All rights reserved. Earthquake policies typically cover damage to your house and your belongings, up to the insured amount. If possible, you’ll want to buy enough to cover the cost of rebuilding your house and replacing your belongings. While your standard homeowner’s policy may cover fire damage that results from an earthquake, an earthquake policy is important to cover damage that results from shaking, such as structural collapse. What’s My Risk? Typically, we think earthquakes strike only in a small portion of the country—namely California, Oregon and Washington. However, more recent experience also shows that the Midwest region is at relatively high risk of earthquakes due to a fault line that runs through those states. How Much Will it Cost? Because of the massive potential damages associated with an earthquake, coverage tends to be expensive. Your premium amount will depend on your location, along with the age and structural composition of your home. In addition, earthquake policies include a percentage deductible, generally ranging from 2 to 20 percent of total damages, which means you’ll still have significant out-of-pocket costs in the event of an earthquake. However, you’ll want to weigh the cost against your risk of experiencing an earthquake, and your ability to survive the financial aftermath of such a catastrophic event. In assessing your financial exposure, it’s important to know that the government typically will not provide much financial aid for earthquake victims, and help may be limited to low-interest loans that you will need to repay. Additional Considerations When buying a policy, you should read it closely to be sure you understand what is covered and what is not. Find out if it covers your house only or the garage as well, whether it will cover additional living expenses if necessary, along with any other exclusions or limitations. You also should know how much time you have to file a claim following a quake, as damage is often not apparent immediately after the incident. Each policy is different. TPG Insurance Services can offer you recommendations and help you shop around to find the policy that best fits your needs and your budget. If you are considering purchasing earthquake insurance, the experts at TPG Insurance Services would be happy to advise you. CONTACT US TODAY: Tel: 909-466-7876 Download the PDF version […]
Auto insurance prices rising slowly is due in large part to inflation, but you may have noticed that your auto insurance has risen more than normal lately. Most lines of insurance cycle between soft and hard markets over a number of years, which has a direct impact on the price you pay. Now, the auto insurance market is currently hardening after many years of a soft market, which has resulted in higher prices for personal auto policies. Download the PDF version All rights reserved. This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2020 MyTPG.com. Between 2011 and 2016, competition between insurance carriers created a soft, buyer-friendly market. Since then, however, a number of factors have caused carriers to exit the auto market or increase their prices in order to make a profit once again resulting in auto insurance prices rising. More Drivers Lead to More Accidents Thanks to low gasoline prices and rising employment rates, more Americans can afford to drive. However, more vehicles on the road have led to more accidents that must be paid for by insurance carriers, and many carriers have transferred this cost to policyholders by raising premiums. The number of accidents has also risen because of an increase in unsafe driving practices. According to the AAA Foundation for Traffic Safety, about 87% of drivers admitted to engaging in at least one risky behavior while behind the wheel, including using their phones and not wearing seat belts. Claim Severity The number of accidents isn’t the only factor affecting auto insurance claims. The size of the average insurance claim—also known as claim severity—has increased as well. The three largest drivers of claim severity include the increase in the costs of medical care, auto repairs and auto parts. According to a recent study by CarMD, the largest repair cost comes from replacing the expensive technology that’s common in newer vehicles, as body shops struggle to afford the special equipment and training required to perform the repairs. Uninsured Motorists Auto insurance is required in most states as a way to cover your own liability and provide compensation to others in the event that you’re responsible for an accident. Despite this, approximately 13% of drivers drive uninsured. Unfortunately, it’s the drivers who follow required insurance laws who end up paying the price in the form of uninsured motorist coverage. According to the Insurance Research Council, uninsured claim payments have risen by 75% over the past 10 years, resulting in a $14 premium increase for every insured individual. Autonomous Vehicles Although autonomous vehicles that can drive themselves have the potential to save lives and reduce injuries, they could also decrease the personal automobile insurance sector to less than 40% of its current size. While this change should be gradual, many insurance carriers have been slowly increasing their rates in anticipation of the shrinking market. Insurance Fraud Insurance is meant to protect you in the event of an accident, but many criminals try to illegally use insurance policies for their personal gain. Most fraud schemes involve a policyholder faking an injury and blaming a third party, or conspiring to cause an accident that can be blamed on someone else. Although insurance carriers attempt to uncover the truth during all insurance claims, the Insurance Information Institute estimates that insurance fraud costs the United States $32 billion per year. Unfortunately, much of this cost is transferred to law-abiding policyholders. Price Optimization Insurers commonly use applicants’ credit history as a factor in determining car insurance rates. However, they also use a practice called price optimization to see how much they can raise their customers’ rates before they decide to choose another company. For example, customers who tolerate small, regular increases to their internet or cable bills are more likely to stay loyal to their insurance carriers when premiums increase. How Can You Save During a Hard Market? With auto insurance premiums on the rise for the foreseeable future, it’s more important than ever to be aware of the steps you can take to save on your premiums. Contact us at 909-466-7876 to discuss your options for saving on your auto policy, even during a hard market. Download the PDF version […]
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Your home is one of your greatest assets and a significant long-term investment. As such, it’s vital to protect your home and its contents with adequate homeowners insurance. Nevertheless, recent research found that many homeowners lack proper coverage. In fact, nearly 2 out of every 3 homes in America are underinsured—which means that the home is protected to an extent by a homeowners policy, but that policy doesn’t have sufficient limits or coverage features to cover the full expense of a potential claim. What’s worse, the average underinsurance amount is over 20%, with some homes being underinsured by as much as 60%. Download the PDF version This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2020 MyTPG.com All rights reserved. Don’t let your home become another statistic and suffer the devastating consequences of inadequate coverage in the event of a loss. Review the following guidance to ensure your homeowners insurance policy meets your unique needs and can offer the best possible protection when disaster strikes. Coverage Elements to Consider When Insuring Your Home Homeowners insurance offers financial protection in the event of an unexpected disaster or accident involving you, your home or your personal property. However, homeowners insurance policies consist of several different types of coverage. With this in mind, it’s important that you review each form of coverage included on your policy to make sure you are adequately insured for your specific risks. Here are some key coverage elements to look out for: Dwelling coverage is the portion of your homeowners insurance policy that can offer compensation for the cost of repairing or rebuilding the physical structure of your home if it gets damaged or destroyed by a covered event (e.g., a fire, a windstorm or vandalism). To secure proper dwelling coverage: Make sure you have enough coverage to compensate the full cost of rebuilding your home in the current market—including construction expenses (e.g., labor and materials) and the associated costs of making sure your home is compliant with any new or updated building codes within your community. Many homeowners make the mistake of only purchasing enough coverage to compensate the real estate value of their home—which is typically far less than the cost of rebuilding. Don’t forget any important features of your home’s structure when determining the cost of rebuilding. This includes the flooring, countertops and the type of or quality of materials used throughout the structure. Further, avoid making a rough estimate when determining the cost of rebuilding. Be as exact as possible and consider getting assistance from a qualified property valuation expert to ensure a correct calculation and adequate coverage. Be sure to recalculate the cost of rebuilding your home and review your coverage needs whenever you make changes to your home—such as renovating the bathroom, remodeling the kitchen or adding an attached garage. Other structures coverage is the portion of your homeowners insurance policy that can help cover the cost of repairing or rebuilding any detached structures on your property (e.g., a shed or fence) if they get damaged or destroyed by a covered event. Similar to dwelling coverage, it’s crucial to ensure that you have enough other structures coverage to compensate the full cost of rebuilding any of your detached structures. In addition, be sure to reevaluate your coverage needs whenever you make changes to any of your detached structures or add a new detached structure to your property. Personal property coverage is the portion of your homeowners insurance policy that can provide reimbursement for the cost of stolen or damaged items inside your home, such as furniture or electronics. To ensure adequate personal property coverage: Review your policy to ensure you have the best form of coverage for your unique needs. At a glance, there are two forms of personal property coverage—replacement cost and actual cash value. Replacement cost coverage can offer compensation for the cost of replacing your stolen, damaged or destroyed property with a brand-new version (as long as it’s similar in kind and quality) following a covered event. Actual cash value coverage, on the other hand, can offer compensation for the depreciated value of your property. This value is determined by the age, condition and expected remaining useful life of your property prior to the covered event. Be sure to weigh the pros and cons of each form of coverage before making a final selection. Maintain an up-to-date home inventory checklist (be sure to include photos) of all of your belongings and their original value, as well as an estimate of their current value. This practice will help you better determine just how much coverage you need to fully protect your personal property. However, keep in mind that certain high-value items—such as jewelry, collectible items or fine art—won’t be covered by your homeowners insurance policy and will require specialized coverage. Loss of use coverage is the portion of your homeowners insurance policy that can help pay for temporary living expenses in the event that you have to move out of your home while it’s being rebuilt or repaired due to a covered event. Loss of use coverage typically equates to up to 20% of the insured value of your home. That being said, make sure you consult your broker if you are concerned that such a value won’t offer enough financial protection for your temporary living arrangements. Also, remember that if you conduct business within your home, this form of coverage will not protect against any loss of income related to your business. You will need to secure specialized coverage for business-related risks. Liability coverage is the portion of your homeowners insurance policy that can offer compensation for the expenses that may result if you are found liable for injuring another person or damaging their property. These expenses include medical payments, pain and suffering settlements, lost wages, legal costs and death benefits. Because […]
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Uber, Lyft and other ride-sharing services can make it easy to get a quick car ride or make some extra income, and they’re only becoming more popular. In fact, in the cities where these platforms are available, taxi ridership has declined anywhere from 10%-30%. However, the convenience of ride-sharing isn’t without risks. Most ride-sharing businesses are in the early stages of development, and the popularity, risk management and compliance issues they’re facing are all in uncharted territory. Download the PDF version © 2020 MyTPG.com. All rights reserved. This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. How the Apps Work Each ride-sharing service has its differences, but they all operate under the same basic concept. Almost anyone can be a driver for these services, but each one has different minimum standards for screening drivers and their vehicles. Passengers can then see available drivers and make a request for a ride through an app on their smartphones. Most apps display the driver’s route and estimated time of arrival, in addition to the driver’s name, photo and vehicle information. The ride-sharing service then takes a cut of the fare, typically between 20%-25%, for each ride a driver completes. These apps are convenient for passengers who need a ride and for drivers looking to supplement their income. Still, they’re not without flaws. For example, it can be hard to determine what regulations or local laws each service and its drivers need to follow, what insurance coverages apply to them and who is considered liable in the event of an accident. When Insurance Kicks In Since ride-sharing drivers use their vehicles for both business and personal purposes, the ride-sharing services have to clarify when drivers are covered by different types of insurance. When a driver is not accepting rides, his or her personal auto insurance is the primary coverage. When the driver turns the app on, but has not yet accepted a ride, ride-sharing services generally offer contingent liability coverage if the driver’s personal auto insurance does not offer protection. When a passenger is picked up, the service’s policy is the primary policy until the end of the ride. State Involvement Unlike taxis, which are regulated on a city-by-city basis and have to follow specific guidelines, ride-sharing services haven’t had to adhere to the same strict regulations. However, this is beginning to change—some states are enacting laws to set standards and insurance requirements for ride-sharing. Additionally, upcoming court decisions will help determine who will be held liable for ride-sharing accidents in the future. Driver Risks Some ride-sharing companies provide liability insurance for their drivers in excess of their personal liability coverage. However, this doesn’t mean that drivers have insurance coverage for all of their risks. Drivers can be dropped by their insurance company if they engage in a commercial activity on a personal auto policy. As a result, drivers need to be honest about how they intend to use their vehicles when they obtain insurance. If a driver fails to indicate the intention to drive for commercial purposes, the insurer could not only deny claims, but also drop the driver from the policy entirely. However, some insurers have created hybrid policies that allow drivers to switch between personal and commercial coverage. Passenger Risks When a passenger gets into a car arranged by a ride-sharing app, he or she automatically agrees to a number of terms and conditions. If the driver gets into an accident and the passenger is hurt, there’s no guarantee that the driver’s insurance company or the ride-sharing service will pay for damages. For example, a driver’s personal insurance company may decide that he or she was driving for profit and, for that reason, isn’t required to pay any medical bills. The passenger would then need to take the driver to court for damages, which can be a costly and time-consuming process. On the other hand, passengers can approach taxi companies directly regarding liability and other safety issues. Safety is also a concern for both drivers and passengers. A driver never knows the type of person about to get into the back seat. Likewise, a passenger only knows how reliable a driver is from the information a ride-sharing service shares about the driver on its app. Tips for Passengers Using a ride-sharing app is generally a safe and reliable method of transportation, but there are safety risks to consider. Keep these safety tips in mind when using ride-sharing services: Share your trip details with a friend or family member in case a ride goes unexpectedly. Some apps allow you to share your route and driver information. Before you get in the car, check that the driver’s photo, name and license plate match what’s listed on the app. Never enter a car with a driver who offers you a ride and claims to be with a ride-sharing service. Never share any personal information that the driver doesn’t need to complete the ride. This includes phone numbers, as ride-sharing apps typically anonymize their passengers’ phone numbers to protect their privacy. Always wear your seat belt. If the car you’re riding in doesn’t have one or appears to be unsafe, instruct your driver to pull over and cancel the ride. Report any unsafe driving on the ride-sharing app immediately. While ride-sharing services evolve to meet the safety needs of drivers and passengers, insurance companies are taking different approaches to claims. Contact us at 909-466-7876 to discuss your auto insurance coverage and make sure you’re always protected. Download the PDF version […]
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Uninsured and underinsured motorist coverage protects you if you’re in an accident with an at-fault driver who doesn’t carry liability insurance or if their limits of liability are too low to cover the damage or medical expenses caused by the accident. Watch this video to learn more. […]
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Auto liability insurance is an important type of auto coverage that pays for the other driver’s expenses if you are at fault in an accident. Watch this video to learn more. […]
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Did You Know? Fun in the sun is even better when you have a swimming pool in your backyard to stay cool on hot, summer days. Despite all the entertainment that a swimming pool offers, there are also homeowner liabilities. To help you minimize your risk, we’ve gathered some safety tips to keep you in the know as you swim. Download the PDF version This flyer is for informational purposes only and is not intended as professional advice. © 2020 MyTPG.com. All rights reserved. To Minimize Drowning Risks: Install safety fences around the pool with a locked latch and place a cover over the pool when you are not using it. Always supervise welcome swimmers at all times. Keep lifesaving equipment near the pool and learn how to properly use it. Do not allow swimmers to horseplay in the pool. To Minimize Disease Risks: Keep the pool water properly filtered and chemically treated. Do not allow swimmers to drink pool water. Keep pets out of the pool. Do not allow swimmers with open wounds or illnesses to go in the water. Do not allow babies to swim unless they are wearing swim diapers. To Minimize Chemical Risks: Avoid over-shocking the pool; keep chemicals at the proper levels. Follow manufacturer’s instructions carefully when adding chemicals to the pool or filtration system. Store chemicals in a cool, dry place where they are away from fire hazards and lawn care products. Safety First As the homeowner, you are liable for the safety of all swimmers. To ensure that you can adequately protect people on your property, consider taking lifeguarding, CPR and first aid courses so you know what to do in an emergency. Download the PDF version […]
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