Mike Leonard Insurance Blog

Equipment Breakdown Coverage

2011-09-19T13:35:00.000-07:00

Safeco Insurance has added a new twist to their Homeowner policy. There is now an endorsement that can be added to the home policy for just $2.00 per month that will protect against the breakdown of your mechanical and electrical systems. Typically no home insurance policy covers the mechanical equipment. They usually only cover the damage that occurs from the failure of a system, i.e. water heater springs a leak and floods the house. In this case the damage to the house is covered as a sudden and accidental discharge by the home insurance but, the replacement of the water heater is not covered. Under the new equipment coverage endorsement, the water heater would now be covered for the replacement or repair subject to a $500.00 deductible. The deductible may sound steep, but have you had your air-conditioner replaced lately or more succinctly replaced in the middle of July during the 50+ days of 100 degree summer weather? One other very important benefit is that the claim is not held against your loss experience because the claim is handled through a separate 3rd party and not by Safeco. If you are interested in more information, please call our office for details.

Reducing Auto Insurance Rates

2011-09-16T10:48:00.000-07:00

I am commonly asked by prospects "How do I get cheaper auto insurance"? Same answer everytime, improve your credit and improve your driving habits. Your driving history plays an important role in determning premiums. Most insurance companies now rate for a 5 years on accidents and 3 years on tickets. Studies have shown that drivers with a poor credit history tend to have more accidents therefore, insurers surcharge for bad credit. Be diligent in managing your credit score. Also drive safely to avoid accidents and tickets. Should you get a moving violation take defensive driving or ask for deferred adjudication. When filing deferred adjudication you are basically saying that you are guilty, but you don't want the ticket on your record. You promise to be good and also promise not to get a ticket in the next 6 months. If you don't receive a second ticket within 6 months after your deferred filing, then the ticket is expunged and there will be no record of the original ticket. Lastly, don't let your coverage lapse for non-payment. There are large increases for driving without insurance.

Texas Insurance Rate Increases

2011-09-15T09:44:00.000-07:00

According to the Dallas Morning News on September12, 2011, State Farm is increasing homeowner insurance premiums by 9.6%. Today the News reports that presently auto insurance rates across the North Texas area have increased by an average of 8% during 2011. The reason given by the author was increased medical coverage expenses incurred in accidents and the increased minimum coverage limits for the State of Texas of $30,000 per person and $60,000 per accident which went into effect earlier this year. My immediate impression is what will next years rate increase be for the spring hail losses incurred by all insurance companies not withstanding potential increases for the massive wildfire losses. My suggestion is shop your rate every year.

Texas Wild Fires

2011-09-14T12:43:00.000-07:00

According to the Texas Insurance Council, Texas wild fires have burned just under 2000 homes at an estimated 250 million price tag to insurers. Across the State more that 3.6 million acres have burned which is an area the equivalent of the State of Connecticut. State Farm Insurance was the insurer of over 800 homes lost in the fires.

Jewelry Coverage

2011-09-06T14:56:00.000-07:00

Just how much coverage do you have for jewelry coverage on your homeowner policy? Most companies limit the amount of coverage against theft of jewelry to $500.00. You can increase the theft coverage by an endorsement to the policy or you can separately insure expensive items through a procedure called "scheduling". When scheduling a piece of jewelry you expand the coverage to all-risk, meaning that not only is theft covered but, so is any mysterious disapperance or damage. Don't wait to find out how much coverage you have or don't have, call your agent today.