Take the “What the Flood” quiz


How much do you know about flood insurance? Probably very little, unless you’ve had an experience with flooding or your insurance agent has discussed it with you. Check it out – take this quick What the Flood interactive quiz to see if you understand the insurance protection that would apply should common water damage scenarios occur. The quiz is promoted by the National Association of Insurance Commissioners (NAIC), who offer great info on Understanding Flood Insurance.

Here are a few common flood insurance myths

  • Myth: I don’t need flood insurance because I already have homeowners insurance.

Reality. Homeowners insurance rarely covers flood damage – talk to your agent.

  • Myth: I don’t need flood insurance because I don’t live in a high-risk flood zone.

Reality: More than 20% of the National Flood Insurance Program’s (NFIP) claims come from outside high-risk flood areas.

  • Myth: It’s already hurricane season so I am too late to buy flood insurance this year.

Reality. You can purchase flood insurance any time, but it generally takes effect 30 days after purchase for coverage to take place.

Here’s a handy NAIC infographic that shows homeowners vs flood insurance coverage:

Why not have a chat with your insurance agent to find out if flood insurance makes sense for you? Here are some great questions that NAIC offers as discussion points when you talk to your insurance agent about flood insurance.

What’s an insurance deductible?


couple revieiwing insurance policy

Like many other industries, insurance has its own unique jargon that can sometimes make shopping for coverage seem overly complicated. Your local independent insurance agent is always happy to break things down for you and explain any language or terms that you don’t understand. One term that is commonly used in auto, health and in other insurance policies is “deductible.”

In simple terms, a deductible is the amount of money that you, the insured, must pay for a claim before your insurance will kick in.

If you have a deductible, it means that you will be responsible for any losses or payment of services up to the stated dollar amount in your insurance policy. Usually, deductibles are defined as a dollar amount, but they can also be defined as a percentage.

Deductibles can be beneficial both for the insured and for the insurance company. For the insured, it can be a way to are a way to reduce the cost of insurance: The more risk for loss that you, the insured, agree to pay before the insurance kicks in, the lower your premium. For the insurance company, it is a way to avoid the cost of processing and paying a high volume of small claims. Talk to you insurance agent about what deductible options are available to you and how they will affect the cost of your coverage.

Let’s look at an example: You are in an auto accident and your car’s damages are assessed at $1250 in damages. If your insurance policy has a $500 deductible, you will have to pay the first $500 of the damages to your car out of your own pocket and the insurer will pay the remaining $750. Generally, once the deductible is met, any future losses that you might have during the term of that policy will be covered in full.

The Insurance Information Institute has a great article on understanding your insurance deductibles that explains how deductibles work to prevent surprise costs and save money. It’s a good introduction with clear examples. They also discuss homeowners disaster deductibles for hurricane, wind/hail, flood and earthquake coverage. (Reminder: your homeowners insurance does not automatically cover you should your home be damaged by flood, earthquake, and other natural catastrophes – talk to your insurance agent about what your homeowners does and doesn’t cover.)

Businesses can also opt for deductible plans for certain types of business coverage such as workers compensation programs.

Many people are familiar with deductibles through their health insurance coverage. Learn more about health insurance deductibles at HealthCare.gov.

As with all insurance matters, you need to check your own policy. Insurance can vary by state law, by type of coverage, and by individual policy. It’s a good idea to read your policy and to ask your insurance agent to explain any terms that you don’t understand.

 

What’s most likely to kill you? Check out your odds for National Safety Month


cartoon of a business man hanging on to a rope above swimming sharks

It’s National Safety Month, which is a great time double down on safety both at work and at home. But where to start? One way to think about safety practices and injury prevention is to focus on the types of injuries that are most common and most likely. With the summer approaching, expect that any day now we will start seeing alarming stories about shark danger. While no one wants to get attacked by a shark and it’s certainly good to take precautions, in reality, there’s a greater chance you will die by choking on your lobster roll than by being eaten by a shark. Media attention to sensational stories about crime, disasters and unusual tragedies tend to distort our sense of what the real risks we face actually are.

The National Safety Council puts things in perspective in this short video:

The purpose of insurance is to offer you financial protection from accidental risks and calamities that may befall you. But even when you are properly insured, it’s still in your best interests to try to manage those risks as best you can because insurance may not make you whole – particularly when the risk involves life and limb. We often don’t do a good job of managing our risks. Sometimes, what we fear the most is actually less risky than other common every day occurrences. Human nature being what it is, people often worry more about rare events and can be too casual about dangers that are more pervasive.

Learn the top causes of unintentional injury and death in your homes and communities from the National Safety Council, or see this chart and learn more on Mortality and Risk from the Insurance Information Institute.

Plus, check out one of our most popular past posts: What are the odds? Mortality calculators, where we various tools and calculators that let you assess your mortality. Don’t miss one of the web’s longtime favorite sites, the Internet Death Clock, where you can calculate optimistic or pessimistic estimates of how much time you are likely to live.

Despite the odds, one sad fact remains: None of us get out of here alive, so as the late Warren Zevon advised, “Enjoy every sandwich.” And as long as you are thinking about odds, it might also be a good time to think about taking care of your survivors:

Life Insurance Survey: Most people have too little.

A few other past posts on the topic of risks and dangers

 

Hurricane Season 2019: What’s shaping up


2019 hurricane season infographic

The 2019 Hurricane Season began on June 1 and runs through November 30. The National Oceanic and Atmospheric Administration, or NOAA, predicts a 40% chance of a  “near normal” hurricane season. There’s a 30% chance that the season could be worse, and a 30% chance that it could be better than the average season.

For 2019, NOAA predicts a likely range of 9 to 15 named storms (winds of 39 mph or higher), of which 4 to 8 could become hurricanes (winds of 74 mph or higher), including 2 to 4 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher). NOAA provides these ranges with a 70% confidence. An average hurricane season produces 12 named storms, of which 6 become hurricanes, including 3 major hurricanes.

But don’t let the “near normal” prediction lull you into a false sense of security – hurricane preparation is still urgent, particularly for those who live in the southeast and in Atlantic coastal areas. According to a recent Storm Surge Report by CoreLogic, the Atlantic hurricane season puts 7.3 million homes at risk with an estimated reconstruction cost of $1.8 trillion.

“Florida stands out as the most vulnerable state, with more than three times more homes at risk (2,913,886) than second-ranked Louisiana (827,032). Florida also stands out in terms of potential damage, with at-risk structures having an estimated reconstruction cost of $604 billion — a third of the total for all 19 Gulf Coast and Atlantic Coast states.

Narrowing down to metropolitan areas, Miami, New York City, Tampa, New Orleans and Virginia Beach, Virginia hold the greatest risks. In the New York City metro area, which includes Philadelphia and much of New Jersey, 831,000 homes with estimated replacement costs of $330 billion stand in harm’s way. In the Miami metropolitan area, which includes West Palm Beach and Fort Lauderdale, 827,000 homes are at risk with an estimated replacement cost of $166 billion.”

Florida hurricane prep underway – get tax-free hurricane supplies through June 6!

Florida doesn’t take hurricanes lightly. The Orlando Sentinel posts thoughts from the region and talks about past storms in their news report,  Welcome to hurricane season 2019.

Floridians should act quickly for a discount on some hurricane supplies. Through June 6, certain hurricane supplies can be purchased tax-free during Florida sales tax holiday. Learn more from the Florida Department of Revenue’s Tax Information Publication:   Disaster Preparedness Sales Tax Holiday – May 31 through June 6, 2019

Hurricane Prep resources

 

Motorcycle Mania: Your spring guide to insurance, safety, training, laws and more


Despite the good news that motorcycle fatalities are trending down in recent years, motorcycle riders still represent a disproportionate share of traffic fatalities. May is Motorcycle Safety Awareness Month, a good time for riders and those who share the road with motorcyclists to double down on safety as we all get ready for the warmer weather and summer road trips. Here’s a guide to important information that you need to be prepared and to ride safely, as well as to comply with licensing, insurance and other legal requirements. .

Motorcycle Laws

If you operate your motorcycle on public roads, you must register it with your appropriate state authority and must be licensed to drive it.

AAA Digest of State Motor Laws – Motorcycles

State-by-State Guide to Motorcycle Laws – helmets, headlights, passengers, noise restrictions and more

III: State Motorcycle Helmet Use Laws (chart form)

State Highway Offices

Motorcycle insurance

Most states require that you carry at least a minimum insurance coverage – Florida, Montana and Washington are exceptions. Those states that do require insurance vary as to coverage requirements; most require a minimum of liability insurance to cover bodily injury and property damage.

Whether required or not, we think it’s pretty risky to go without coverage. Should an accident occur resulting in an injury or property damage, without insurance, you are on the hook. In fact, it is generally worth looking into expanding your coverage beyond the minimum. Options to consider are comprehensive and collision, which would cover other potential losses, such as replacement if your bike were stolen or damaged.. In some states, uninsured/under-insured motorist coverage is required; in others, you may be required to have specific coverage for passengers.

Motorcycle owners sometimes ask if they can cancel insurance in the winter when they aren’t riding but that can be risky and leave you exposed if the bike is stolen. Some insurers offer winter lay-up insurance options.

Talk to your independent insurance agent, who will be able to recommend the best coverage for your local requirements and your particular circumstances. Be sure to ask if there are any discounts that you may qualify for, such as for bundling multiple policies, for being a safe driver, for having participated in training, or any other circumstances.

For more, see the Insurance Information Institute (III): Find the right coverage for your bike

Motorcycle Safety

The Motorcycle Safety Foundation is a valuable resource. It is a not-for-profit resource, internationally recognized for comprehensive, research-based, Rider Education and Training System (RETS), which promotes lifelong-learning for motorcyclists and continuous professional development for certified coaches and trainers. MSF also actively participates in government relations, safety research and public awareness campaigns.

Check for available trainings and download their popular guide, You and Your Motorcycle: Riding Tips. Check out their other guides for three-wheelers, scooters, off-highway riding and more.

III: Background on: Motorcycle crashes

NHTSA: Motorcycle Safety

Choose the right helmet – how to find the right fit for safety

Helmet safety ratings – Make sure your helmet has the DOT symbol on the outside back; this means it meets Federal Motor Vehicle Safety Standard (FMVSS) No. 218.

Motorcycle Industry Council Tire Guide

NHTSA: Safety Issues and Recalls – search by VIN

Additional Resources

How to Prepare your Motorcycle for Spring

Consumer Reports: Motorcycle Buying Guide & Ratings

Motorcycle Club Listings