Protect your family with the insurance Texans trust and save an additional 10% on your Germania home premium. Many of the Germania life policies will cost less than the amount of the discount on the home premium.
If your family depends on your income, planning for their future needs is very important. Germania Life Insurance Company offers a wide range of life insurance products that can provide you with the help you need to secure the dreams and plans you have for your loved ones. Think of it as family insurance.
Contact Randall or Lillian today and let us quote your life insurance needs and see if we can save you money!
Wednesday, December 2, 2009
Tuesday, November 17, 2009
You Can't Judge a House by its Market Value
The Henrys purchased their 2005 custom built home for $195,000.
Their insurance agent had their Replacement Cost Coverage (the amount
it would take to rebuild their home to its previous like kind and quality) at
$195,000 when the Henrys closed on their home.
SHOCK NUMBER ONE
Four years later they decided to downsize and buy something “more
affordable.” Their realtor appraised their home and due to current market
conditions, regrettably explained their house should be listed at $180,000.
SHOCK NUMBER TWO
With their realtor’s appraisal in hand, they headed to their local Germania
agent’s office. After reviewing their paperwork and plugging in data
through his residential construction cost estimating software, the Henrys
received an even bigger shock. They were underinsured by 20 percent!
MARKET VALUE IS NOT WHAT IT WOULD COST TO REBUILD
YOUR HOME
“This is one of the most common, yet poorly communicated issues in
the insurance industry,” said AVP of Underwriting, Mike Kroll.
Even though the “market value” of their home had dropped considerably, due
to rising construction prices (roofing materials have increased by over 50
percent in 2008* alone) it would cost the Henrys roughly $234,000 to
rebuild their home in the same spot with the original materials used to
construct their home in 2005.
STILL SHOCKED…BUT ENLIGHTENED
Like millions of Texans around the state, most find insurance confusing
and do not understand its true purpose — to protect your home, its contents
and make your house “whole” again in the event of a loss.
REALLY?
The Henrys aren’t alone. Roughly 50 to 70 percent of Texas homeowners are
underinsured.
“It’s unfortunate that most people don’t realize they’re underinsured until
disaster strikes,” said Germania’s AVP of Claims, Russell Hill. It’s important to
revisit the amount of insurance coverage you have on your home annually.
GET PROACTIVE
A great way to get the ball rolling? Contact your agent to discuss what your
current coverage is — and ultimately — does it reflect the cost to rebuild your
home should the unthinkable happen.
As one of your most sizable assets, it’s worth the call.
Factors That Determine What It Would Cost to Rebuild Your Home
If you’re like most people, the concept of how much it would cost to rebuild
your home to its original grandeur is difficult to formulate. Your Germania
agent is equipped with the tools necessary to evaluate your home’s unique
features and take current construction costs into account, based on where
your home is located.
FROM SIMPLE TO UNIQUE
Replacement Cost Coverage, the cost to rebuild or repair your home to its
original state with materials of like kind and quality (without a reduction for
depreciaition) changes each year.
For example, your agent can assist you with determining the replacement
cost of your home based on its unique features by using industry-standard
software to estimate how much coverage you should obtain to protect your
home against perils such as fire, hail, lightning, etc.
Construction classifications are designed to take into account innumerable
options that would make the most avid fan of the Home & Garden Network
recoil in surprise.
ROOFING MATERIALS: 24 choices* of
materials that can increase — or decrease — the
amount of coverage you need on your home.
EXTERIOR WALL MATERIALS: 44 unique
items* are taken into account — including vinyl
siding, hardboard siding, stucco, brick veneer and
the more costly Austin stone veneer.
FLOORING: 26 different styles* of flooring
options from less expensive (carpet) to very
expensive (marble).
Not All Homes Are Created Equally !
Discussing your home’s interior/exterior features with your agent is imperative
if you want to make sure your home is insured for the correct amount a.k.a
“Insurance-to-Value.”
It is important to communicate with your Germania agent if any significant
remodeling has been done, as your agent can update your policy so that the
proper coverage is adequately reflected.
* Source: MSB Residential Construction Cost Changes
* Using Marshall & Swift / Boeckh (MSB) ITV Property Index benchmark
WHY POLICYHOLDERS ARE MISGUIDED IN THINKING
“THAT WILL NEVER HAPPEN TO ME”
As far as Mother Nature’s fury is concerned, Texas takes
the cake as one of the most topographically diverse and
disaster prone states in our country. With over 32,000
recorded hail events over the past 30 years* (Florida
has recorded 3,713 hail events over the same span
of time) coupled with over 20,000 thunderstorms, 6,238
tornadoes and 8,533 floods occurring throughout all
regions of the Lone Star state – suffice it to say that no one
and no structure is safe.
*Source: National Climatic Data Center
Copied from http://www.germaniainsurance.com/
Their insurance agent had their Replacement Cost Coverage (the amount
it would take to rebuild their home to its previous like kind and quality) at
$195,000 when the Henrys closed on their home.
SHOCK NUMBER ONE
Four years later they decided to downsize and buy something “more
affordable.” Their realtor appraised their home and due to current market
conditions, regrettably explained their house should be listed at $180,000.
SHOCK NUMBER TWO
With their realtor’s appraisal in hand, they headed to their local Germania
agent’s office. After reviewing their paperwork and plugging in data
through his residential construction cost estimating software, the Henrys
received an even bigger shock. They were underinsured by 20 percent!
MARKET VALUE IS NOT WHAT IT WOULD COST TO REBUILD
YOUR HOME
“This is one of the most common, yet poorly communicated issues in
the insurance industry,” said AVP of Underwriting, Mike Kroll.
Even though the “market value” of their home had dropped considerably, due
to rising construction prices (roofing materials have increased by over 50
percent in 2008* alone) it would cost the Henrys roughly $234,000 to
rebuild their home in the same spot with the original materials used to
construct their home in 2005.
STILL SHOCKED…BUT ENLIGHTENED
Like millions of Texans around the state, most find insurance confusing
and do not understand its true purpose — to protect your home, its contents
and make your house “whole” again in the event of a loss.
REALLY?
The Henrys aren’t alone. Roughly 50 to 70 percent of Texas homeowners are
underinsured.
“It’s unfortunate that most people don’t realize they’re underinsured until
disaster strikes,” said Germania’s AVP of Claims, Russell Hill. It’s important to
revisit the amount of insurance coverage you have on your home annually.
GET PROACTIVE
A great way to get the ball rolling? Contact your agent to discuss what your
current coverage is — and ultimately — does it reflect the cost to rebuild your
home should the unthinkable happen.
As one of your most sizable assets, it’s worth the call.
Factors That Determine What It Would Cost to Rebuild Your Home
If you’re like most people, the concept of how much it would cost to rebuild
your home to its original grandeur is difficult to formulate. Your Germania
agent is equipped with the tools necessary to evaluate your home’s unique
features and take current construction costs into account, based on where
your home is located.
FROM SIMPLE TO UNIQUE
Replacement Cost Coverage, the cost to rebuild or repair your home to its
original state with materials of like kind and quality (without a reduction for
depreciaition) changes each year.
For example, your agent can assist you with determining the replacement
cost of your home based on its unique features by using industry-standard
software to estimate how much coverage you should obtain to protect your
home against perils such as fire, hail, lightning, etc.
Construction classifications are designed to take into account innumerable
options that would make the most avid fan of the Home & Garden Network
recoil in surprise.
ROOFING MATERIALS: 24 choices* of
materials that can increase — or decrease — the
amount of coverage you need on your home.
EXTERIOR WALL MATERIALS: 44 unique
items* are taken into account — including vinyl
siding, hardboard siding, stucco, brick veneer and
the more costly Austin stone veneer.
FLOORING: 26 different styles* of flooring
options from less expensive (carpet) to very
expensive (marble).
Not All Homes Are Created Equally !
Discussing your home’s interior/exterior features with your agent is imperative
if you want to make sure your home is insured for the correct amount a.k.a
“Insurance-to-Value.”
It is important to communicate with your Germania agent if any significant
remodeling has been done, as your agent can update your policy so that the
proper coverage is adequately reflected.
* Source: MSB Residential Construction Cost Changes
* Using Marshall & Swift / Boeckh (MSB) ITV Property Index benchmark
WHY POLICYHOLDERS ARE MISGUIDED IN THINKING
“THAT WILL NEVER HAPPEN TO ME”
As far as Mother Nature’s fury is concerned, Texas takes
the cake as one of the most topographically diverse and
disaster prone states in our country. With over 32,000
recorded hail events over the past 30 years* (Florida
has recorded 3,713 hail events over the same span
of time) coupled with over 20,000 thunderstorms, 6,238
tornadoes and 8,533 floods occurring throughout all
regions of the Lone Star state – suffice it to say that no one
and no structure is safe.
*Source: National Climatic Data Center
Copied from http://www.germaniainsurance.com/
Wednesday, November 4, 2009
Randall L Harred Insurance Agency Website
If you have a chance, check out our new website at http://www.randallharred.com/ or http://www.texanstrustharredagency.com/ .
Wednesday, October 14, 2009
Should I purchase the Loss Damage Waiver on rental car?
Rental Car Coverage - Texas Personal Auto Policy
Should I purchase the Loss Damage Waiver offered by the rental agent when I rent a vehicle?
This is a great question, and one that our customers ask frequently. Whether you rent a vehicle for personal use while on vacation, or as a substitute while your vehicle is out of commission for repair or service, or for business use while out of town, there comes that time when you’re standing at the rental car counter and the agent asks the inevitable question: “Do you want to buy our loss damage waiver (or our insurance coverage)?”
Most loss damage waiver (LDW) fees are outrageous. Sometimes they cost more than the daily rental fee itself. But are they worth the additional cost? The answer may depend on your tolerance for risk and inconvenience. You must decide if the extra cost is reasonable, considering the potential for an uninsured loss should something happen to the vehicle during the term of the rental contract, and the resulting inconvenience of dealing with the rental company and your insurance company to satisfy the rental company’s demands.
First, you should know that the LDW is not actually an insurance policy. It is a waiver of the rental company’s requirement in the rental contract that you bring the vehicle back in the same condition as when it left their lot. Most rental contracts make you responsible for any damage to the vehicle, including theft and weather-related damage. When you purchase the LDW, the rental company is removing that provision from the contract on a conditional basis.
If you don’t purchase the LDW and the vehicle is damaged, here are some of the costs for which you could be held responsible under the rental contract:
1. Cost to repair damage to the vehicle, or the full value of the vehicle if it is a total loss
2. “Diminished value” of the vehicle – the difference between what the vehicle was worth before the accident and what it is worth after repairs have been made
3. “Loss of use” – the amount of money the rental company loses on rental fees while the vehicle is out of service for repair or replacement
4. Administrative or loss-related expenses incurred by the rental company, such as fees for towing, appraisal, and claims adjustment, plus general office expenses for handling the paperwork
Whether all or any of these costs are covered by your personal auto policy depends on several factors.
Reasons to purchase the Loss Damage Waiver:
1. Your limit of liability may not be sufficient to satisfy the rental company’s demands.
Coverage for damage to the rental car and related costs are provided by the property damage liability section of your personal auto policy. If the property damage limit of liability is not sufficient to cover the value of the vehicle you rent, plus pay for any other costs the rental company demands, you will be personally responsible for the costs that exceed what your insurance company has to pay.
2. Your policy may exclude rented pickups and vans used for business purposes.
If you rent a pickup or van for business purposes, your personal auto policy may not provide coverage at all. Some insurance companies consider an SUV to be a pickup or van, and may therefore not cover any damages arising out of the use of an SUV rented for business purposes.
3. Your premium may go up or your policy may not be renewed if you have an at-fault accident.
You are driving an unfamiliar vehicle in unfamiliar territory. If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.
4. Your line of credit may be adversely affected.
If you don’t buy the LDW, the rental company will probably ring up an estimated damage amount on your credit card, pending notification to and settlement by your insurance company.
5. You may suffer a huge inconvenience.
When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away. When you haven’t purchased the LDW, you may have to spend a significant amount of time dealing with the rental company and your insurance company.
Bottom Line
We recommend that you buy the Loss Damage Waiver from the rental company.
This article was prepared and made available to your agent by the Independent Insurance Agents of Texas, which is solely responsible for its content. Please read your insurance policy. If there is any conflict between the information in this article and the actual terms and conditions of your policy, the terms and conditions of your policy will apply. The Independent Insurance Agents of Texas is a non-profit association of more than 1,500 insurance agencies in Texas, dedicated to helping its members succeed, in part by providing technical resources that explain insurance policies sold to their customers.
Copyright with permission IIAT 2009
Should I purchase the Loss Damage Waiver offered by the rental agent when I rent a vehicle?
This is a great question, and one that our customers ask frequently. Whether you rent a vehicle for personal use while on vacation, or as a substitute while your vehicle is out of commission for repair or service, or for business use while out of town, there comes that time when you’re standing at the rental car counter and the agent asks the inevitable question: “Do you want to buy our loss damage waiver (or our insurance coverage)?”
Most loss damage waiver (LDW) fees are outrageous. Sometimes they cost more than the daily rental fee itself. But are they worth the additional cost? The answer may depend on your tolerance for risk and inconvenience. You must decide if the extra cost is reasonable, considering the potential for an uninsured loss should something happen to the vehicle during the term of the rental contract, and the resulting inconvenience of dealing with the rental company and your insurance company to satisfy the rental company’s demands.
First, you should know that the LDW is not actually an insurance policy. It is a waiver of the rental company’s requirement in the rental contract that you bring the vehicle back in the same condition as when it left their lot. Most rental contracts make you responsible for any damage to the vehicle, including theft and weather-related damage. When you purchase the LDW, the rental company is removing that provision from the contract on a conditional basis.
If you don’t purchase the LDW and the vehicle is damaged, here are some of the costs for which you could be held responsible under the rental contract:
1. Cost to repair damage to the vehicle, or the full value of the vehicle if it is a total loss
2. “Diminished value” of the vehicle – the difference between what the vehicle was worth before the accident and what it is worth after repairs have been made
3. “Loss of use” – the amount of money the rental company loses on rental fees while the vehicle is out of service for repair or replacement
4. Administrative or loss-related expenses incurred by the rental company, such as fees for towing, appraisal, and claims adjustment, plus general office expenses for handling the paperwork
Whether all or any of these costs are covered by your personal auto policy depends on several factors.
Reasons to purchase the Loss Damage Waiver:
1. Your limit of liability may not be sufficient to satisfy the rental company’s demands.
Coverage for damage to the rental car and related costs are provided by the property damage liability section of your personal auto policy. If the property damage limit of liability is not sufficient to cover the value of the vehicle you rent, plus pay for any other costs the rental company demands, you will be personally responsible for the costs that exceed what your insurance company has to pay.
2. Your policy may exclude rented pickups and vans used for business purposes.
If you rent a pickup or van for business purposes, your personal auto policy may not provide coverage at all. Some insurance companies consider an SUV to be a pickup or van, and may therefore not cover any damages arising out of the use of an SUV rented for business purposes.
3. Your premium may go up or your policy may not be renewed if you have an at-fault accident.
You are driving an unfamiliar vehicle in unfamiliar territory. If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.
4. Your line of credit may be adversely affected.
If you don’t buy the LDW, the rental company will probably ring up an estimated damage amount on your credit card, pending notification to and settlement by your insurance company.
5. You may suffer a huge inconvenience.
When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away. When you haven’t purchased the LDW, you may have to spend a significant amount of time dealing with the rental company and your insurance company.
Bottom Line
We recommend that you buy the Loss Damage Waiver from the rental company.
This article was prepared and made available to your agent by the Independent Insurance Agents of Texas, which is solely responsible for its content. Please read your insurance policy. If there is any conflict between the information in this article and the actual terms and conditions of your policy, the terms and conditions of your policy will apply. The Independent Insurance Agents of Texas is a non-profit association of more than 1,500 insurance agencies in Texas, dedicated to helping its members succeed, in part by providing technical resources that explain insurance policies sold to their customers.
Copyright with permission IIAT 2009
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