Randall L Harred Insurance

2012-01-31T09:32:00.000-06:00

Study: Auto Loan Markups Cost $25.8 Billion

Consumers financing a new or used vehicle through a dealership will drive off the lot and pay more than $25.8 billion in hidden interest-rate markups over the lives of their loans, according to a study by Washington based Center for Responsible Lending (CRL).

Your out-of-pocket cost is significant, averaging $714 per consumer, with an average rate markup of 2.47 percentage points. States with the highest markup costs are California ($2.6 billion), Texas ($2.2 billion), New York ($1.6 billion), Florida ($1.5 billion), and Pennsylvania ($1.2 billion), with Alaska having the lowest ($54 million).

Also known as “dealer reserve” or “dealer participation,” hidden interest-rate markups are described by dealers as their compensation for the time they spend putting a financing deal together. It’s considered “hidden” because consumers usually don’t know what interest rate they actually qualify for.

The Consumer Federation of America, National Association of Consumer Advocates, and CRL offer these suggestions:

* Run your credit report. Do this before you visit the

dealership. Visit annualcreditreport.com or call

877-322-8228. Get one free report a year from Experian,

Equifax, and TransUnion.

* Buy your credit score. Order one individual score

(FICO Standard) directly from FICO for $15.95 at

myfico/com/Products/Products.aspx. Here’s a tip: If your

score is low, take steps to improve it before you apply for a loan.

* Be skeptical of ads for “0%” loans. You’ll likely be switched to a higher rate, or find it difficult to

negotiate on the price of the vehicle.

* Research prices. Check price information at Edmunds.com. For used cars, visit kbb.com.

And the best tip of all: Line up financing at Germania Credit Union. Get prequalified for a loan

before you shop for a vehicle. You don’t have to accept financing from a dealer; the sales and

finance people may tell you they can provide the best financing, but kickbacks and markups add to the cost you’ll pay.

A Germania Credit Union loan officer can help you size up any financing offer and likely make you a better one. Stop in or call 800-392-2202 today to land your best car deal.

2011-06-23T17:55:00.001-05:00

Should I purchase an umbrella liability policy?

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

2011-03-30T15:31:00.000-05:00

Germania Local Chapter Meeting

Our Annual Germania Local Chapter #435 meeting will be held on Sunday, April 17th, at the Verdi Community Center at 1:00 PM. We will serve a meal. After the meal we will have a short business meeting and door prize drawings. Our District Director, Bruce Germer, will be on hand to address our members.

All members of the Pleasanton Local Chapter #435 are invited to attend the annual meeting. If you have a Germania Farm Mutual policy, you are a member of Local Chapter #435. We look forward to seeing you on the 17th if you are able to attend our meeting.

2011-03-18T09:18:00.000-05:00

When Your Teenager Starts to Drive

My teenager just received a license to drive. Do I need to add him/her to my policy now? Will it increase my premium?

These are great questions that our customers ask frequently.

The short answers are “yes” and “yes.”

Most personal auto policies written in Texas extend liability coverage to anyone using a covered auto with your permission, including children when they begin to drive. However, some policies exclude family members who have not been reported to the insurance company and are not listed as drivers on the policy.

Failing to report your newly-licensed teenager is a dangerous game to play with your family assets. In fact, some companies may consider this to be “insurance fraud” and refuse to pay a claim involving a young driver who has not been reported – especially if the youngster had a license when the policy was first purchased.

Insurance companies expect you to report all drivers in the household and will charge a premium based on the appropriate driver classification. In the case of a youthful operator, that premium will depend on whether the driver is the principal operator of a family vehicle or just a part-time operator.

Be sure to discuss your family’s insurance needs with your insurance agent. After considering your specific circumstances, you and your agent can make a decision regarding auto insurance that is appropriate for your family and your insurance budget.

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 1,800 insurance agencies in Texas, dedicated to helping its members succeed, in part by providing technical resources that explain insurance policies sold to their customers.

Hit by an Uninsured Driver PSA - "Carlos"

2011-01-20T16:49:00.000-06:00

Hit by an Uninsured Driver PSA - "Carlos"

Germania Connect

2011-01-20T15:38:00.000-06:00

   Renelle and I spent last weekend at the Germania Agents Conference in Austin. We had a great time and learned how the Germania Companies are making it easier for their clients to do business with them.

   It is now possible to access your policy online with Germania Connect at http://www.germaniainsurance.com/. You can pay online with e-check or credit card. Ever need an Auto ID card (proof of insurance) on the weekend or after hours? Now you can print your own with Germania Connect! Other services available are; View policy information, Check claims status, View billing history and payment history. It is quick, easy and free to register at http://www.germaniainsurance.com/.

    This doesn't mean that we at Randall L. Harred Insurance Agency aren't here to help. We are always happy to see or talk to our clients and be of service. That's what we are paid for! However Germania Connect will be there as an added convenience for our clients. Check it out when you get a chance.

"Because He Loved Me"

2010-09-30T14:48:00.002-05:00

He did the dishes,
Rubbed my feet,
Surprised me with tulips,
Took me to musicals even though he didn't like them,
Carried my bags while I did the shopping,
Held my hand.

He died of cancer four years ago.

Because he loved me,
I can stay in our home,
I can be here for our children.
I can afford to pay for their college education.
I can worry about the other things in life besides money.

He still loves me. And he still shows it.

This poem was produced by the nonprofit LIFE Foundation and is a great testament to what life insurance can do for a family ath their time of need.

Home Inventory

2010-08-18T14:40:00.000-05:00

How do I take a home inventory and why?

Would you be able to remember all the possessions you’ve accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For clothing, count the items you own by category -- pants, coats, shoes, for example –- making notes about those that are especially valuable. For major appliance and electronic equipment, record their serial numbers usually found on the back or bottom.

■Don't be put off!

If you are just setting up a household, starting an inventory list can be relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can be daunting. Still, it’s better to have an incomplete inventory than nothing at all. Start with recent purchases and then try to remember what you can about older possessions.

■Big ticket items

Valuable items like jewelry, art work and collectibles may have increased in value since you received them. Check with your agent to make sure that you have adequate insurance for these items. They may need to be insured separately.

■Take a picture

Besides the list, you can take pictures of rooms and important individual items. On the back of the photos, note what is shown and where you bought it or the make. Don’t forget things that are in closets or drawers.

■Videotape it

Walk through your house or apartment videotaping and describing the contents. Or do the same thing using a tape recorder.

■Use a personal computer

Use your PC to make your inventory list. Personal finance software packages often include a homeowners room-by-room inventory program.

■Storing the list, photos and tapes

Regardless of how you do it (written list, floppy disk, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you’ll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.

Copyright 2010, Insurance Information Institute, Inc. - ALL RIGHTS RESERVED

Our Pledge to Our Clients

2010-07-30T10:17:00.000-05:00

Trusted Choice Pledge of Performance

Trusted Choice® agencies are insurance and financial services firms whose access to multiple companies and commitment to quality service enable us to offer our clients competitive pricing, a broad choice of products and unparalleled advocacy.

As a Trusted Choice® agency, we are dedicated to you and are committed to treating you as

a person, not a policy. This commitment means we shall:

• Work with you to identify the insurance and financial services that are right for you,

your family or your business and use our access to multiple companies to deliver those products.

• Guide you through the claims process for a prompt and fair resolution of your claim.

• Help you solve problems related to your coverage or account.

• Explain the coverages and options available to you through our agency, at your request.

• Return your phone calls and e-mails promptly and respond to your requests in a timely manner.

• Provide 24/7 services for our customers, offering any or all of the following: emergency

phone numbers, Internet account access, e-mail and call center services.

• Use our experience and multiple company relationships to customize your coverage as needed.

• Commit our staff to continuing education so they may be more knowledgeable in

serving you.

Treat you with respect and courtesy.

• Conduct our business in an ethical manner.

We pledge this to you, our clients and ask that you let us know if we fail to meet our

commitment, so we may take corrective action.

Personal Injury and Medical Payments – Personal Auto Policy

2010-06-21T10:42:00.001-05:00

If I have health insurance, why do I need Personal Injury Protection or Medical Payments coverage on my auto policy?

This is a great question, and one that our customers ask frequently.

Personal Injury Protection (PIP) coverage provides payment for medical bills, funeral expenses, lost wages or replacement services (for homemakers) if you or a member of your family are injured in an auto accident. This coverage also applies to passengers in your vehicle, who may or may not have health insurance.

It's a broad "no-fault" coverage that will pay, even if others pay, allowing in some cases to double-dip for expenses. It has very few exclusions.

Medical Payments coverage is like PIP in that it reimburses covered persons for their medical expenses up to the policy limit. But that’s where the similarities stop. Medical Payments coverage does nothing to reimburse the injured person for lost wages or replacement services. And, unlike PIP, it coordinates with insurance that may be provided by another auto policy or coverage, thus preventing double dipping.

Either coverage can be used to cover deductibles and co-pays under a health insurance plan.

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.

Germania Personal Computer Coverage

2010-05-26T11:29:00.000-05:00

Germania policyholders are now able to add the GFM 126A Personal Computer Endorsement to their Germania Farm Mutual Dwelling policies. The endorsement provides coverage for direct physical loss to personal computer equipment owned by an insured. (Except for PC equipment used for business purposes) The deductible for a covered loss is $100. Many policies now carry 1% deductibles in order to take advantage of the lower premiums that come with a higher deductible. However, in many cases the 1% deductible is higher than the loss of a computer due to a covered claim (exclusions apply). This endorsement lowers the deductible to $100 for the covered computer equipment for a very reasonable additional premium.

10 Things You Can do to Control Insurance Costs

2010-05-18T15:21:00.000-05:00

1. Investigate coverage and product options with your independent insurance agent. One of the advantages of using an independent agent is that s/he represents a number of insurers with different products and can assist customers in fitting the right product at the right price for the unique exposures you present. Also note that this tip deliberately avoids advising you to "shop around" because that implies price comparisons should drive the decision.

2. Carefully consider whether increasing deductibles NOW is appropriate. While increasing a deductible can save money, it's important to do it at the right time. Don't raise the property deductible well past the point of sensible premium reduction on the theory that "it will never happen to me"...insurance purchasing decisions are often made with little regard to post-loss consequences of our current buying decisions. A higher deductible could pay for itself in 3-5 years, but it could take 7-10 years and not be a good investment. The preferred approach is to increase deductibles during good economic times when you can afford a $1,000 - $2,500 loss while accumulating a deductible fund that can be used during hard times if a loss actually occurs then.

3. Consider multiple-policy discounts. This is common advice and generally good advice. Having homeowners, auto, and umbrella policies in the same company will likely save money and, perhaps even more important, will make it less likely that a coverage gap will show up when more than one insurance company is involved in a claim. Likewise, in business insurance, having general liability and auto coverage in the same insurer using "ISO-standard" or superior forms is often critical.

4. Ask for credits. Too often, consumers are entitled to credits for alarms, extinguishers, good student driving discounts, etc. Ask your agent for a list of everything that could reasonably reduce your premium and see if you can meet those standards. A good example is how your auto is rated for use. If you're laid off from work or you've found a job closer to home, you might very well be entitled to a lower premium. Unless you tell your agent about these kinds of changing circumstances, you won't reap the benefits of reduced risk.

5. If you're going to drop coverages, consider dropping noncritical coverages. Examples include towing and rental reimbursement, credit insurance, etc. Your independent agent can assist you in making these decisions. Consider discontinuing high-risk activities such as using ATVs, jet skis, etc. Catastrophic injuries are common with vehicles of these types.

6. CAREFULLY consider dropping physical damage coverage on your vehicles. As outlined above, this is not always a good idea unless you can absorb a significant 4- or even 5-figure loss. Keep in mind, too, that as an auto loses value, the physical damage premium generally declines as well. Do not be fooled by any simple formula that says you should drop coverage when the value of the vehicle drops below "X" times the premium. You should base your decision on what you can afford to lose and, if your car was destroyed and you could not replace it, how would that affect you financially.

7. Weigh risk management alternatives to insurance. For example, you could place jewelry in a safety deposit box rather than scheduling it. Needless to say, this is probably more risky, but it's a reasonable consideration. Also, do not cut back on maintenance and loss control procedures that yield long-term benefits like the reduction of frequent losses and those often excluded by insurance policies.

8. If necessary, sell some possessions. Can you get by without certain autos, motorcycles, ATVs, jet skis and boats, homes, jewelry, guns, etc.? If so, you can drop the insurance on those items. However, it is generally a good idea to not drop insurance on property until your exposure to loss no longer exists. This is especially true of any possession that has a significant liability exposure.

9. Seek expert advice. Start with your independent insurance agent who is familiar with you and your circumstances, not a consumer web site or publication that presents generalized, sometimes suspect, advice, nor someone who lacks the training and experience to provide sound insurance advice. Work with your agent to seek outside advice from other experts. If you are getting insurance advice from your attorney or accountant, run it by your insurance agent to see what impact it might have on your policy coverages.

10. Question any advice you get, even the advice in this article! It may not be right for YOU. Before you make decisions to reduce or eliminate insurance coverages, assess your risks of loss. What are your exposures? What can you lose? What exposures represent losses you cannot afford? What exposures can you retain? The quality of your decisions may be the difference between economic survival and bankruptcy. Carefully chose an insurance representative who can help assess risk with a degree of sophistication and business acumen.

Copyright 2009 by the Independent Insurance Agents & Brokers of America. All rights reserved.

2010-05-12T10:40:00.000-05:00

“Reducing Your Insurance Costs…Distinguishing Bad Advice from Good Advice”

Many Americans are struggling financially in the current economy; particularly those struck by lay-offs, and are faced with tough decisions about how to reduce expenses. As a result, much has been written in recent months about how to reduce insurance premiums as one aspect of a belt-tightening strategy. Unfortunately, too much of this advice has been BAD and much of this bad advice comes from consumer web sites and publications that have little understanding of insurance and risk management. The purpose of this article is to identify some of the bad advice being bandied about and to reinforce some of the good advice. It concludes with 10 reasonable things you can do to reduce your insurance costs.

The first myth we want to dispel is that all policies are alike, the difference only being the price. Insurance policies are legal contracts and, aside from some industry standards, each insurer's policy is unique. Some cover far more or less than others. For example, some auto policies do not cover nonowned autos. Do you ever drive someone else's car? Some auto policies do not cover business use. Do you ever run by Office Depot, the post office, or the bank on behalf of your employer? Some auto policies exclude undisclosed household residents. Is it possible that a child might move back home for economic reasons and you forget to tell your insurance agent? Might you drive that resident child's car after they move in? Did you know that some auto policies won't cover you while driving a resident family member's car? Has a family member taken on a second job delivering pizzas to make ends meet? Some auto policies cover this, some don't.

These are all very real examples of coverage shortcomings that the "low cost" auto insurance advertisers don't tell you about. In fact, if you ask to see their policies before buying, chances are you won't get a copy. Consumers shop for most things based on value, not just price. The same should be true for insurance which is far too often portrayed as some sort of homogenous commodity. The amount of coverage you need depends on your exposure to loss and what assets and income you need to protect today and in the future, not what you'd like to pay.

A second myth is that you can rely on insurance advice from consumer web sites and publications. Sadly, consumers often accept insurance advice from attorneys, plumbers, roofers, cops, and accountants before they'll listen to their own insurance agent. A major national publication included advice from a "consumer expert" that recommended dropping replacement cost coverage for "actual cash value" coverage, something that is likely to save the insured little in exchange for much in the way of lesser coverage. In the late 1980s and early 1990s, Charles Givens made a name for himself, in part, by recommending that consumers drop various kinds of insurance. Lawsuits ensued when consumers who followed his advice suffered catastrophic uninsured losses.

One popular consumer insurance web site recommends that consumers consider dropping their physical damage and uninsured motorists coverage completely while reducing their liability coverage to the state minimum requirements. At a time when consumer assets are at their greatest peril, now is not the time to be reducing or eliminating critical coverages that protect you from catastrophic loss. The article shows that, by dropping your liability limits from 100/300/50 to 25/50/10 and eliminating the physical damage and uninsured motorists coverages on your auto, you can reduce your total premium by just over 50% on average.

What they don't show is that the average values of the autos they used in the examples ranged from $12,000 to $22,000 according to Kelly’s Blue Book. How many economically depressed or out-of-work families can afford even a $12,000 loss, much less a 6- or 7-figure liability claim? Auto liability limits of 25/50/10 mean that each person you negligently injure in an auto accident gets no more than $25,000 ($50,000 total for all injuries) and any property damage you cause, such as damage to the other vehicle, is limited to $10,000. Is it possible that a hospital bill might exceed $25,000? Is it likely that the other vehicle you total is worth more than $10,000? Of course, particularly considering that all of the autos they used in their examples of how you can save money by dropping physical damage coverage were worth more than that!

According to the Insurance Research Council, 1 in 6 drivers may be driving uninsured by 2010. With the number of uninsured drivers already over 25% in some states, what happens when a family member is permanently disabled by an uninsured driver and the family has dropped its uninsured motorists coverage? A much better recommendation would be to begin cost-cutting measures by eliminating the purchase of pizza, cigarettes and beer instead of critical insurance coverages.

A third myth is that you can drop some coverages because others exist to pay in their absence. For example, so-called financial experts may recommend dropping uninsured motorists and medical payments coverage on an auto policy if you have health or workers compensation insurance. Uninsured motorists insurance covers much more than just medical expenses. Given the growing number of uninsured motorists, removing or reducing this coverage can expose you, your family members, and passengers to catastrophic loss.

In the case of business insurance, many business owners are looking, if the law permits, to drop workers compensation insurance or have officers with strong health insurance plans exempt themselves. Workers compensation typically pays UNLIMITED medical benefits, plus disability, rehabilitation and even burial benefits. In addition, some health insurance plans exclude work-related injuries or work injuries that could have been covered by workers compensation. Some businesses are considering eliminating business interruption insurance even though studies have shown that few businesses survive a major loss long enough to be able to reopen their doors.

A fourth myth is that you should insure the market value of your home or business building. Market value is based not only on the cost to rebuild but also on the value of the location and land value. It's also a function of how much someone is willing or able to pay for your property based on their financial position and the ability to obtain a loan. Your insurance limit is based almost exclusively on the cost to repair or replace the building. The market value can be significantly higher or lower and, just because the market value of your home or business building has declined doesn't mean you should reduce your insurance limit. In fact, while home prices countrywide have declined measurably in the past year, the cost to rebuild those homes has risen about 4%.

These are just a few examples of what consumers and business owners are doing to reduce their insurance costs, many of these approaches coming from extraordinarily bad advice from consumer writers and others who lack the knowledge to understand what they are suggesting. Attorneys, for example, often suggest that youthful drivers be placed on their own minimum-limits policies (and their vehicle titled in their name if possible) in order to insulate the parents' assets from a lawsuit. Many, if not most, auto policies have an exclusion that would result in the parents having NO coverage under their own policy for some claims, an unintended consequence that arises from advice given by someone who lacks the intimate understanding of the insurance contract necessary to provide sound insurance advice.

(10 Things You Can Do to Control Insurance Costs Continued next installment)

Copyright 2009 by the Independent Insurance Agents & Brokers of America. All rights reserved.

NOTE: Policy coverages and circumstances can change at any time, so the information above may not be accurate at the time of reprinting or subsequently to that time. IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information. The most current, up to date version of this article can be found at IIABA’s Virtual University at www.independentagent.com/VU.

Are your Insurance Policies ready for storm and hurricane season?

2010-04-22T16:07:00.000-05:00

     For many people, their home is their greatest asset. Yet studies show that 59 percent of today’s homes are underinsured by an average of 22 percent (according to Marshall & Swift). To protect their investment from disasters, homeowners should update their insurance regularly to include improvements, major purchases and increased rebuilding costs.

     In particular, the cost of building or repairing a home has increased dramatically in recent years. According to the U.S. Census Bureau, homeowners spent over $218 billion on additions, alterations, maintenance and repairs in 2005, up from $201 billion in 2004. Materials like lumber, cement, gypsum and structural steel products have become scarcer, not only because of the devastation from recent year’s storms, but also because of increased global demand. In fact, the cost of lumber climbed 6.1 percent in 2005, according to statistics from the U.S. Department of Labor.

     To properly insure your home, it is important to ask your insurance agent or company representative four key questions.

1. Do I have enough insurance to rebuild my home?

     Your policy needs to cover the cost of rebuilding your home at current construction costs. Unfortunately, some homeowners simply purchase enough insurance protection to satisfy their mortgage lender. Others confuse the real estate value of their home with what it would cost to rebuild it. Quite simply, you should have enough insurance to rebuild your home in the event that it is completely destroyed. Be sure to consider the following:

■Replacement Cost

     Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality.

■Extended Replacement Cost

       This type of policy provides additional insurance coverage of 20 percent or more over the limits in your policy, which can be critical if there is a widespread disaster that pushes up the cost of building materials and labor.

■Inflation Guard

     This coverage automatically adjusts the rebuilding costs of your home to reflect changes in construction costs. Find out if your policy includes this coverage or if you have to purchase it separately.

■Ordinance or Law coverage

     If your home is badly damaged, you may be required to rebuild it to meet new (and often stricter) building codes. Ordinance or law coverage pays a specific amount toward these costs.

■Water Back-Up

     This coverage insures your property for damage from sewer or drain back-up. Most insurers offer it as an add-on to a standard policy.

■ Flood Insurance

     Standard home insurance policies provide coverage for disasters such as fire, lightning and hurricanes. They do not include coverage for flood (including flooding from a hurricane). Flood insurance is available through the federal government’s National Flood Insurance Program (www.floodsmart.gov), but can be purchased from the same agent or company representative who provides you with your home or renters insurance. Make sure to purchase flood insurance for the structure of your house, as well as for the contents. Excess Flood Protection, which provides higher limits of coverage than the NFIP in the event of catastrophic loss by flooding, is available from some insurers. Keep in mind that there is a 30-day waiting period before the insurance is valid.

2. Do I have enough insurance to replace all of my possessions?

      Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of coverage on the structure of your home, you would be covered for $50,000 to $70,000 worth of the contents of your home, depending on the policy.

      The best way to determine if this is enough coverage is to conduct a home inventory, which details everything you own and the estimated cost to replace these items if they are stolen or destroyed by a disaster. To help with this task, you can download the I.I.I.’s free home inventory software [link]. Remember to keep your home inventory in a safe place, and take it with you if you need to evacuate your home during a disaster.

     You can insure your possessions in two ways: by their actual cash value or their replacement cost. Make sure you review with your agent or company representative which type of coverage is best for your particular situation.

■Cash Value Policy

     This coverage pays the cost of replacing your belongings minus depreciation.

■Replacement Cost Policy

     This coverage reimburses you for the full current cost of replacing your belongings.

     To illustrate the difference between the two types of policies, suppose, for example, a fire destroys a 10-year-old television set in your living room. If you have a replacement cost policy for the contents of your home, the insurance company will pay to replace the TV with a comparable new one. If you have an actual cash value policy, it will pay only a small percentage of the cost of a new TV set because the old TV has been used for 10 years and is now worth a lot less than its original cost. Some replacement cost policies specify that the new item be purchased by the insurance company as they may be able to purchase at a bulk or special rate. The price of replacement cost coverage is about 10 percent more than that of actual cash value.

3. Do I have enough coverage for additional living expenses?

     Coverage for additional living expenses pays the extra costs of temporarily living away from your home if you can't live in it due to an insured disaster such as a hurricane. It covers hotel bills, restaurant meals, transportation and other living expenses incurred while your home is inaccessible or being rebuilt. It is important to note that it covers only those expenses that are over and above your regular living expenses, so it would not cover your mortgage, or regular trips to the grocery store. If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

     Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20 percent of the insurance on your house. Some companies will sell you a policy that provides you with an unlimited amount of loss of use coverage, for a limited amount of time.

     Make sure you know exactly how much coverage you have for additional living expenses, and whether there is a time limit. If the standard coverage is not adequate, it can generally be increased for an additional premium.

4. Do I have enough insurance to protect my assets?

     Although not a key element in disaster planning, it is also important to have adequate liability protection. This covers you against lawsuits for bodily injury or property damage that you or your family members may cause to other people. It also pays for damage caused by pets. Liability insurance pays for both the cost of defending you in court and for any damages a court rules you must pay—up to the limits of your policy. Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available.

     It is important to purchase enough liability insurance to protect your assets. If the standard liability coverage in your homeowners policy is not sufficient, you may need an excess liability, or umbrella, policy, which provides additional coverage over and above what is covered in your home (and auto) insurance policy.

Copyright 2010, Insurance Information Institute, Inc. - ALL RIGHTS RESERVED

Annual Meeting Thank You!

2010-04-19T15:40:00.001-05:00

Thank you to all that attended the Germania Local chapter 435 Annual Meeting yesterday at the Verdi Community Center. The weather was just right for a meal and meeting on the outdoor patio. We had 40 members and guests present. After the BBQ meal, Germania District 12 Director Bruce Germer of Lockhart spoke to the members present about the history of the company and the reinsurance program. Bruce also answered questions from the audience about the Germania Companies.
We sincerely appreciate all our clients and members and had a good time visiting with all that were able to attend!

Germania Local Chapter Meeting

2010-03-31T11:12:00.000-05:00

Our Local Chapter 435 meeting will be held on Sunday, April 18th, at the Verdi Community Center at 1:00 PM. We will serve a meal. Our District Director, Bruce Germer, will be on hand to address our members. After a short business meeting, we will have door prize drawings and dessert. All Germania members from the Atascosa Area Local Chapter #435 are invited to attend the meeting. If you need directions to the Verdi Community Center or would like to RSVP for your family, please call Randall or Lillian at 830-569-3114. We hope to see you on the 18th!

Law Enforcement Instant Insurance Verification

2010-03-18T10:28:00.000-05:00

     Texas Sure, the vehicle insurance verification program, is the program that the DPS and other law enforcement agencies will now use to verify insurance information instantly. Insurance companies are now reporting insurance information to Texas Sure. The officer will be able to verify insurance information on each vehicle using the license plate number or the Vehicle Identification Number (VIN).

    A client called yesterday because he recived a letter from Texas Sure regarding one of his vehicles. The information that the insurance company was reporting did not match the title information. It was easy to check the VIN numbers and determine that the VIN information on the policy was incorrect; two numbers had been transposed. We were able to correct the VIN number on his policy so that it would match the title and the other information available to Texas Sure and the law enforcement officers. This could potentially prevent a ticket for no insurance on this vehicle.

     It might be a good idea for all vehicle owners to double check the information on your insurance cards now that Texas Sure is operational. Take a look at the policy declaration page or Insurance ID card and check the VIN numbers on it against the VIN number on the dash of the vehicle. If the numbers don't match, call your agent or insurance company and have them corrected.

     Title information will also need to be correct now with Texas Sure and the DOT. For instance; if a title has not been transferred on a vehicle, Texas Sure may look up the insurance information for the prior owner. If the prior owner sold the vehicle and removed it from his policy, the vehicle may show up as uninsured even if the new owner has a policy on it.

     Just having an Insurance ID card will no longer be enough. Texas Sure will be able to determine if the ID card is still in-force and effective. It will be more important than ever to make sure the information on the vehicle title and insurance policy is correct.

     In Texas, 20% of the vehicles on our roads have no insurance coverage. That is 1 in every 5 cars and trucks. Law abiding Texans are paying an estimated $1 billion in optional insurance coverage to protect themselves against uninsured and underinsured motorists.

Why Should I Buy Life Insurance?

2010-02-28T21:46:00.001-06:00

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

Replace income for dependents

If people depend on your income, life insurance can replace that income for them if you die.

The most commonly recognized case of this is parents with young children. However, it can

also apply to couples in which the survivor would be financially stricken by the income lost

through the death of a partner, and to dependent adults, such as parents, siblings or adult

children who continue to rely on you financially. Insurance to replace your income can be

especially useful if the government- or employer-sponsored benefits of your surviving spouse

or domestic partner will be reduced after your death.

1. Pay final expenses

Life insurance can pay your funeral and burial costs, probate and other estate administration

costs, debts and medical expenses not covered by health insurance.

2. Create an inheritance for your heirs

Even if you have no other assets to pass to your heirs, you can create an inheritance by

buying a life insurance policy and naming them as beneficiaries.

3. Pay federal “death” taxes and state “death” taxes

Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other

assets or take a smaller inheritance. Changes in the federal “death” tax rules between now

and January 1, 2011 will likely lessen the impact of this tax on some people, but some states

are offsetting those federal decreases with increases in their state-level “death” taxes.

4. Make significant charitable contributions

By making a charity the beneficiary of your life insurance, you can make a much larger

contribution than if you donated the cash equivalent of the policy’s premiums.

5. Create a source of savings

Some types of life insurance create a cash value that, if not paid out as a death benefit, can

be borrowed or withdrawn on the owner’s request. Since most people make paying their life

insurance policy premiums a high priority, buying a cash-value type policy can create a kind

of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if

the money is paid as a death claim).

This information provided by the Insurance Information Institute.

Protect your family with the insurance Texans trust and save an additional 10% on your Germania home premium. Contact Randall Harred today and let us quote your life insurance needs and see if we can save you money!

Germania at the San Antonio Home & Garden Show

2010-02-25T08:44:00.000-06:00

Germania Insurance will be participating at the 30th Annual San Antonio Home & Garden Show this weekend, February 26th through February 28th. The show will be held at the Alamodome. If you go to the garden show this weekend, be sure to stop by booth #656!

Windshield Chips

2010-02-05T14:37:00.001-06:00

Germania partners with Safelite to Offer Windshield Repair and Auto Glass Replacement.

We know the importance of repairing your windshield or replacing damaged auto glass, and that is why Germania makes the process easy and convenient for you. Germania Insurance offers cost-saving windshield repair to policyholders in need. If the chip or crack is less than the size of a dollar bill (6 inches), chances are that the damage can be repaired. Germania even waives the deductible for windshield repair service, so there is no out-of-pocket cost to you (certain restrictions may apply). Keep in mind, if your windshield is chipped it's only a matter of time before it spreads into a larger crack and must be replaced.

If your windshield has a chip that needs repair or if any glass on your vehicle requires replacement, you can conveniently report auto glass claims on the Safelite website or call Germania Glass Service at 1-800-392-2202 and follow th ephone prompts to report your auto glass claim to a customer service representative.

Instant Insurance Verification now active!

2010-01-29T11:09:00.000-06:00

TexasSure Vehicle Insurance Verification

What Is Vehicle Insurance Verification?

TexasSure, the vehicle insurance verification program, came about when the Texas Legislature directed the Texas Departments of Insurance, Public Safety, Motor Vehicles, and Information Resources to develop a system to reduce the number of uninsured motorists. Working together, the agencies have compiled a database that connects every registered vehicle in the state by its license plate, vehicle identification number (VIN), and liability insurance policy. That means that law enforcement officers and tax assessor-collectors can immediately access the database and verify if you are driving without insurance.

In Texas, 20% of the vehicles on our roads have no insurance coverage. That’s 1 in every 5 cars and trucks. Law-abiding Texans are paying an estimated $1 billion annually in optional insurance coverage to protect themselves against uninsured and underinsured motorists.

Got insurance? Great, you’re good to go and there’s nothing else you need to do.

Driving without insurance? The TexasSure program will put an end to the days of uninsured motorists, drivers dropping coverage after receiving a valid insurance card, and fraudulent insurance cards. So, get insured!

Q. Will all police officers use the TexasSure system or just Department of Public Safety troopers?

A. The system is available to all law enforcement agencies statewide.

Q. If I get pulled over, will TexasSure tell the officer whether I have insurance?

A. In most cases, yes.

Q. What if I don't have my proof of insurance card, and TexasSure verifies my coverage, will I get a ticket?

A. Each law enforcement agency will set its own policies; however, the law states that you must show proof of insurance. So it’s best to keep that card available at all times.

Q. What happens if I'm pulled over and I don't have my proof of insurance card and TexasSure doesn't verify my coverage?

A. Your chances of getting a ticket go up dramatically. However, each law enforcement agency will develop its own policies.

Back to the office!

2010-01-22T17:32:00.000-06:00

I have been out of the office off and on for the last couple of months and have not posted here since early December. Our son Russell graduated from Texas A&M in December with his Master of Agribusiness and was married to Rachel Reed of Pittsburg, TX on January 9th. Wedding showers, holidays, graduation, and the wedding kept us away quite a bit. I will try to be a little more timely with the blog in the future. I am attaching a photo or two of the newlyweds.

Germania Life Insurance - Don't let your family go unprotected!

2009-12-02T11:43:00.000-06:00

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!

You Can't Judge a House by its Market Value

2009-11-17T12:11:00.000-06:00

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/

Randall L Harred Insurance Agency Website

2009-11-04T22:38:00.000-06:00

If you have a chance, check out our new website at http://www.randallharred.com/ or http://www.texanstrustharredagency.com/ .

Should I purchase the Loss Damage Waiver on rental car?

2009-10-14T16:51:00.000-05:00

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