Preparing for Winter: A Homeowner's Guide

The leaves are starting to fall, the days are getting shorter, and Husker Football is in full swing. Just around the corner is winter, and with it brings many possible headaches for homeowners. This article will give a list of items to do to prepare the exterior of your home for the winter.

The autumn chill has set upon Nebraska, whether we like it or not. The months ahead will only get colder, and with Nebraska weather you never quite know what to expect. Though there are some things you just can’t avoid (thus your Homeowner’s policy), there are a few maintenance items that you can do to help keep your home claim-free this winter:

• Start out with a visual inspection of your roof. If it’s a pitched roof, make sure there aren't any missing shingles or tiles. Also make sure to check for warping and worn-out shingles. For those with flat roofs, make sure bubbles haven't formed, and make sure that the gravel is thoroughly covering the membrane. Have any problems fixed.

• Next, inspect the flashing. The flashing is the covering where your roof changes from sloped to vertical (or horizontal to vertical).  It can also be found around skylights, vents, and chimneys. Worn out flashing is a great place for water to slip underneath, causing big headaches later on. Make sure to have any damaged or worn out flashing replaced.

• While still on the roof, make sure all of the gutters and downspouts are clean. Leaves, dirt, and shingle bits can clog them (parents, you might find some missing toys while you're at it!). Clogged gutters will trap water, and when it freezes, all sorts of problems can happen.

• Now make your way off the roof to inspect the premise. Make note of any trees with dead branches or branches that hang over your home. Make sure to have these types of branches trimmed, as the weight of snow and ice along with high winds could make them fall, damaging your roof or hurting someone walking underneath them.

• If you found large problems with your roof and it needs to be replaced, now is the time to consider upgraded hail-proof roofing products. Many insurers will provide a discount for new roofs, and most offer an additional discount for hail-proofing.

Nobody likes claims, so take an afternoon to check over the exterior of your home. Catching a small problem before it turns into a big one could save you a lot of time and money! 

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

Property & Casualty Insurance Lingo

The Property and Casualty (P&C) insurance industry is a vast segment of the insurance industry, and there are numerous terms used in it. The following list was made to explain common terminology used in Personal and Commercial Property and Casualty insurance:

Property Insurance: It covers any physical item that could suffer a loss. Examples: your home, your car, your office building, your jewelry, your copier/printer, etc. 

Casualty Insurance: Any situation where you might be liable for harming someone or someone's property. It is a cover-all term for liability insurance coverages. 

Deductible: Also known as a Retention. The Deductible is the amount the insured must pay in order to have the rest of the claim covered. 

Exposure: As in, exposure to loss. Some businesses have exposures that require specialty insurance. Example: The Exposures of an amusement park are harder to cover than a bakery’s.

Peril: A cause of loss. Examples of Perils: Fire, Wind, Hail.

Risk: The possibility of a loss. Example: Contractors have more risk than an ice cream parlor.

Hazard: Something that increases risk; something that increases the chances of a loss. Example: Wet floors in a grocery store, cracked pavement in a parking lot.

Inception Date: Also known as the Effective Date. The day and time when your policy starts to cover you.

Expiration Date: Also known as Ex-Date. The day and time when your policy stops covering you.

Coverage: A single line of insurance. Property coverage is a single line of insurance. A Homeowner’s policy has multiple coverages.

Package policy: A Package policy combines two or more coverages into a single policy, where you pay one premium and the coverage all have the same Inception. A Homeowner’s policy is a package policy, as it has property and personal liability coverages.

Personal Lines: These are the coverages that deal with the risk of the average consumer. These products are far simpler than Commercial Lines, and the products are fairly consistent between insurance companies.

Commercial Lines: These are the coverages that deal with the risk of businesses and organizations. The products in Commercial Lines vary greatly between insurance companies, and the total number of products available is vast.

Standard Insurer: An insurance company that has products for the general public. The products are broad with competitive prices, with the goal of gaining market share.

Surplus Lines: An insurance company that has products for special exposures (such as a bad claim history). These companies specialize in writing high-risk exposures. The products are non-standard, meaning that the policy wording will be less broad, and the premium will be higher.

Assigned Risk Worker’s Compensation: Also known as ‘the pool’. Assigned Risk is for companies that have a bad Workers’ Comp claim history and/or companies that are in a high-loss industry. Being similar to Surplus Lines, the premium you pay with Assigned Risk will be far greater than a Standard Insurer.

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

What to Do if Your Engine Overheats

With the dog days of summer upon us, you can bet that the number of cars parked along the side of the road with their hoods up will increase. It’s Murphy’s law that on the hottest day of the year, your engine's temp will start creeping up into the red. So after you grumble a bit and let out a sigh, do you know what to do? Let's start with ways to keep an overheating engine at bay.

Steps to Prevent Engine Overheating:

Determining the Normal Operating Temperature: Keeping your car from dangerously overheating is done best when you know how warm your engine should be. A properly working car will take 5-10 minutes to fully warm up in hot weather, and you’ll know it’s fully warmed up when the temperature gauge’s needle stops moving. Note: Even in sub-zero temps, a properly working car will run as warm as it does on a hundred degree day. So once the needle stops moving, make a mental note of where it is—this is your normal operating temperature.

Be Proactive: Now that you know where your engine should be running, make sure to keep an eye on the engine temperature. You don’t have to constantly hover over it, but checking on it occasionally is a good habit to have—this is especially so on extra hot days.

Note: Running your car’s A/C puts a lot of extra load on your engine. So on very hot days, don’t be surprised if your engine runs a little hotter than usual if your A/C is on—just be extra attentive to the heat gauge if your A/C is on!

Maintain: The easiest way to prevent you engine from overheating is to keep the coolant level at 'Full'. To keep your coolant properly filled, you'll first need to know what to look for: the coolant tank is usually a translucent plastic container that can be found under the hood. It will have markings on the side indicating the proper coolant level. If it's below full, add a 50/50 mixture of water to coolant fluid to get it back to full. Note: The fluid in your coolant reservoir is usually a 50/50 mix of water to coolant fluid, but make sure to read your owner's manual to make sure! The cooling system is a closed system, so theoretically, your coolant level should never drop. However, leaks happen, and low-quality coolant evaporates, so make sure to keep an eye on the coolant level. 

How to Handle an Overheating Engine:

When the Needle Starts to Rise: If you notice the engine’s temperature rising past normal, you have a few options before you have to pull over. First, turn off your A/C immediately. It won’t be as nice as air conditioning, but rolling down your windows should still keep you cool. If that doesn't fix it, turn your heater on as high as possible. This will redirect some of the hot air in the engine and hopefully keep it cool (you’ll have to sweat it out, though).

Pulling Over: If those two options still haven't changed anything, pull over as soon as you safely can. Find a good shoulder on the highway or interstate, or find a side street or parking lot if you're in town. Get as far away from traffic as (safely) possible. Also, wait for an overpass to park underneath or a shady tree if you can. Note: It’s recommended to never go more than a quarter mile while your engine's temperature is in the red!

Opening the Hood: Once you’re safely pulled over, turn off the vehicle and open the hood, but don’t touch it with your bare skin! If you have gloves, wear them while raising the hood. A towel or shirt might work as well. Also, there might be steam or smoke trapped under the hood, so be careful as you’re opening it! With the hood up, it may take over thirty minutes to cool your engine down to a safe temperature. Note: DO NOT pour water directly onto the engine/into the radiator! 

Playing Mechanic: When the temperature has gone down, it’s time to start troubleshooting.The best place to start is checking the coolant level. The coolant tank is usually made out of translucent plastic, and the proper coolant level will be marked, often with a line with “Full” by it. If the level is below full, you can add water to get you where you need to go. Note: again, a 50/50 mixture of water to coolant is typically recommended, so put in some coolant as soon as you can. 

However, if the tank is almost or entirely empty, you've probably sprung a leak. Check for cracks in the coolant tank, or cracks in the radiator (the radiator is at the very front of your engine. You'll know it's the radiator because there will be a metal cap on it that has an orange sticker on top of it, and the sticker will say something like: “Warning: Never open when hot"). If you can't find any cracks, look for hoses that are worn out or disconnected. If you've found the broken/worn-out part, it's probably not going to be an easy fix—it's time to call a tow truck.

If your engine has overheated but the coolant level is where it should be, the problem could be a clog in your cooling system, or it could be a mechanical/electrical issue. Again, it's time to throw-in the towel and call a tow truck. 

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

IRMI Tip of the Month: Maintain Your Clothes Dryer

According to the U.S. Consumer Product Safety Commission report, there are approximately 10,000 annual residential fire losses in which the source of the fire is in the clothes dryer or vent. Dryers are the third most common type of equipment involved in fires, ranking behind stoves and fixed area heaters. Clothes dryers can catch fire due to excessive lint build-up in the exhaust pipe or inside the dryer; this lint build-up is often out-of-sight. As a result, you should take the following steps to reduce the chance of your dryer starting a fire.

• Follow the manufacturer’s instructions when installing the vent pipe.
• Keep the dryer vent clean and unplugged. Check for a plugged vent if the dryer does not dry clothes efficiently.
• Remove and clean the lint screen before each use.
• Keep all combustibles away from the clothes dryer.
• Hire a qualified technician to periodically inspect gas clothes dryers.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2008, International Risk Management Institute, Inc.

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

How to Find Insurance for Your New Business

Entrepreneurship is at the heart of the American Dream, and has led to many worldwide companies—McDonald’s, Coca-Cola, and Apple, just to name a few! The freedom and empowerment of owning your own business can be very fulfilling, but it takes a lot of work to get your new venture up and running. You’ll be facing plenty of ‘red tape’, along with making a business plan, finding a location, finding funding, and much more. Once you get most of that figured out, you’ll need to line up your insurance before you can open your doors for business.

Most first-time entrepreneurs have never dealt with anything more than Homeowner’s and Automobile insurance before. The transition from personal lines to commercial lines can be a bit rough—commercial insurance is a huge sector with varying policy language, scores of different coverages, and new exceptions and exclusions that you’ll never see on a personal lines policy. These differences make sense since businesses inherently deal with more risk and operate in a very different manner than your average homeowner. Even though it’s different than what you’re used to, commercial insurance still serves the same basic function—keeping you safe. Commercial insurance just expands the coverage you’ll be receiving, so both you and your business are safe!

Once you have figured out where your business is going to be located, whether or not you’ll have employees, and how you’re going to deliver your product/provide your service, you should contact an independent agent to see what your new business’s insurance options are. Contacting an independent agent will allow for multiple quotes from a single agent, saving you valuable time. When you meet with the agent, bring along the following information to increase the quote’s accuracy: square footage of your rented/purchased business space, estimated gross revenue for the first year, your resume showing pertinent experience, and your business plan (also, if you’re going to have employees, bring along the number of part time and full time employees you’ll have, and an estimated gross payroll for each). Also make sure to discuss exactly what your new business will be doing, where you will be doing it, and how you’ll be doing it. Underwriters love information, so the more details you can share about yourself and the processes your business will go through to perform your service/deliver your product, the better your premium will be!  

With that information, the agent should be able to get you an estimated premium for one year’s worth of coverage. This premium will most likely be higher than the average premium for other businesses in the industry, as you do not have any claim history yet. The agent should also discuss with you any additional coverages you’ll need that you might not have thought of or even known that you would need.

Here’s a brief list of coverages you will likely see:

General Liability: To cover slips, trips, falls, personal liability, and property damage caused by you, your business, your employees, and your premises. For contractors, it also covers any damage done by your completed work. All businesses need this coverage.

Professional Liability: For any job that requires a license, you’ll typically need to have Professional Liability (also known as Errors & Omissions insurance). Other occupations with high levels of risk may need Professional Liability as well.

Property: Commercial property forms will cover your building and your business personal property. It will also cover your business’s detached signs and will have options and policy language exclusive to commercial lines.

Business Income: After a covered loss, your business may not be able to function, but bills will still need to be paid. Business Income will pay you your expected net income while your business is out of operation.

Workers’Compensation: Any business with at least one employee is legally required to have Workers’ Compensation, even if your only employee is a family member and/or the employee works part-time.

Once you receive your quote(s), you may want to adjust your business plan to reflect the exact insurance expense you’ll be incurring, and adjust the rest of your plan accordingly. You may also want to look into limiting or adjusting some of your business’s products or services to reduce your risk, and thus reducing your premium. Discussing premium-saving options with the insurance agent is highly recommended. Risk reduction is very easy to implement before your business starts, but can be nearly impossible to do once it is in operation!

Entrepreneurship can be very challenging, but it can also be very rewarding. If you’ve decided to follow the entrepreneurial path, make sure you partner with an agent that has experience with start-ups. Also make sure that the agent is willing to work with you on developing best practices to reduce risk and keep your business claim-free and generating revenue!

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

The Secret of Cut-Rate Auto Insurers

“The bitterness of no coverage is remembered long after the sweetness of low price has been forgotten.” These wise words from insurance educator Jon Eubank , CPCU, ARM, perfectly exemplifies the problem with cut-rate insurers. Saving 15% in 15 minutes could cost you thousands (or more) from denied claims!

Bill Wilson, Big “I” associate vice president of education and research and director of the Big “I” Virtual University has made a 12-point list of common cut-rate auto insurance exclusions and coverage limitations that would otherwise be covered by a standard insurer:

1. Undisclosed Household Residents Are Excluded. How many of you have ‘boomerang’ kids who came back to live at home?
2. Business Use of Non-Owned Auto Is Excluded. Have you ever borrowed a neighbor’s car or made a business stop in a dealer loaner auto?
3. Business Use of Any Auto Is Excluded. Do any of you ever run to Staples or the post office on company business?
4. Use of Any Non-Owned Auto Is Excluded. Better not drive anyone’s car but your own.
5. Vehicles Over 10,000 Pounds In Gross Value Weight Are Excluded. Have you ever rented a U-Haul truck or an RV thinking your liability coverage extended to the rental?
6. Any Type of Delivery Is Excluded. Denied claims include pizza, newspapers, Mary Kay cosmetics, etc. are not covered
7. Permissive Users Only Get Minimum Limits. This can apply to people who borrow your car or even unlisted household drivers.
8. “Street Racing” Is Excluded. Google “street racing” and see how often people are killed or critically injured in the process.
9. Criminal Acts Are Excluded Or Limits Are Reduced. DUIs or even speeding tickets may preclude coverage!
10. Medical Payments Only Include Licensed Physician Fees. One insured incurred a $25,000 “life flight” helicopter fee that would not be covered, even in part, by a cut-rate policy with this exclusion.
11. Theft Without Evidence of Forced Entry Is Excluded. One insured had a four-figure vehicle-theft loss denied because he left his keys in the car.
12. Sales Tax Is Not Covered Under Loss Settlement. This cost one “same coverage” insured more than $2,000 out of pocket for sales tax on a replacement auto.

Most people never read through their insurance policies. For those with standard insurers (though it is inadvisable), it often turns out alright. However, for those buying insurance through a cut-rate insurer, do you really know what you’re paying for? Odds are that your cheaper price comes with a lot more exclusions and limitations. Think through it logically—you just can’t sell the exact same thing for a lesser price.

The 12-point list was adapted from Bill Wilson’s article ‘Price Check’ that was featured in ‘ia: Insight + Analysis For The Independent Agent’ magazine’s July 2014 issue. To find out more about how insurance isn't a commodity, you can visit IndependentAgent.com.

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

Keeping an Inventory

When insuring property, commercial or personal, it can be highly beneficial to create an inventory of all your items. There are many advantages to keeping a schedule of your items, and taking inventory can be aided by technology.

Homeowners, Condo-owners, Renters, and businesses all have something in common—they have a lot of stuff! Now, the items may be a bit different for each, but the need to schedule these items is vital for all of them.

Why should I make a list of my possessions?

• Making a list of your items will help determine the amount of personal property coverage to initially obtain
• In a claim, an inventory can speed up the claims process, getting you paid sooner
• In a claim, an inventory will ensure you get completely and accurately reimbursed for your loss
• After a catastrophe, you will need to quantify your losses to qualify for tax breaks or disaster assistance.

So how do I do it?

Though it may seem overwhelming to keep track of all the items you have, know that even a partial list is better than no list as all, and the list can be organized however you see fit. You could organize it by highest cost item to lowest, by room, by most recent purchase, by item type, or any way you find intuitive.

Taking inventory can also be aided by technology. Apps such as the Insurance Information Institute’s ‘Know Your Stuff’ app allows you to write down the item location, category of item, item name, item’s make, and the item’s model. It also allows you to take a picture of each item. The information is then synced to their website where you can easily access it from anywhere with an internet connection, keeping it safely stored online.

If you decide to make a list by hand or in a spreadsheet, make sure to save a copy of it outside of the home, perhaps at work, a family member’s house, or a copy saved to a Cloud database. Also, you may find it beneficial to store other important information with your inventory list. Some useful information to save would be a copy of you and your family’s legal documents, financial records, passwords, and PINs for bank accounts.

Creating a list of your items can seem to be a very daunting task. Maintaining it will be an ongoing process as well, but remember that a partial list is better than no list at all, and that keeping a list will make sure you get the full use out of the insurance coverage you bought!

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

IRMI Tip of the Month: Helping Teenage Drivers

There are several things parents can do to help keep their teenagers safe behind the wheel. Here are a few tips.

• Coach Your Son or Daughter. You should "coach" your teenage driver. Talk openly and frankly with him or her in order to determine his or her attitude about being behind the wheel. Work with your teen to set ground rules, such as the number of people allowed in the car, where the car may be taken, and curfew.
• Utilize Emergency Road Service. If you do not belong to a motor club, you should consider joining one that provides 24-hour emergency road service. That way, your teenager may call for help at any time if they need gas, need a jump-start, are locked out, or need a tire changed. You can also arrange with the motor club to provide service for your teen if they are in a friend's car.
• Have an Open Discussion About Driving Under the Influence. While no one wants to think about the possibility of their teenager drinking and driving--or being in a car with an impaired friend at the wheel--we need to be realistic. History has shown that teenagers will experiment with alcohol. You should make it clear to you teen that driving after drinking is not acceptable, and is very dangerous for everyone. However, if they ever do drink, or are in a car with someone else who is impaired, make it clear to your teen that he or she can call you at any time of the day or night and that you will come to get them--no questions asked.

Two other effective, though more costly, things that can be done are:

• Install a "Governor." Many vehicles, such as school buses and certain types of delivery vehicles, have a "governor" installed in them that restricts the amount of fuel that can be injected, thus preventing the vehicle from being driven over a certain speed. A governor in your teen's car may help keep him or her within the speed limits.
• Install a Global Positioning System (GPS) in the Teen's Car. You can program it to let you know where your teenager is driving at any time. With the GPS, you can set a radius of operation and the GPS will notify you if your teen has taken the car outside of that radius. It can even alert you when the speed limit is being exceeded. Finally, A GPS can notify you if the car is being kept out past an agreed upon curfew. Note: We realize that this may seem like a rather extreme measure. Use of a GPS may best serve those parents who have a reason to mistrust their teenager.

When your son or daughter gets a drivers license, work with your insurance agent to review various options for both of you. It is important for you—and your son or daughter—to remember that, yes, your auto insurance rates will go up, but they will come down after a couple years of driving experience. However, the rates will really go up if your teenager has tickets or gets into accidents.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2008, International Risk Management Institute, Inc.

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

Save Money on Your Insurance with Update Information!

A plethora of information goes into deciding your rates in property insurance: your credit score, loss history, location, structure type, and much more goes into configuring rates. On top of all that, each company weighs each of the factors differently. However, one of the easiest ways to save money with any company is having a thorough update history.

An Update History is an itemized list of all updates/major repairs that have happened since the initial construction of the building. All insurance policies that cover buildings, personal or commercial, will ask you for any known updates, and the more you know, the better the rate/coverages you'll get. Not everything will qualify for discounts, but the following items will:

Roof: One of the largest factors in getting a preferred rate is the year the roof was replaced. An old, worn-out roof increases the chances of a loss occurring tremendously, so the newer the roof, the better. Also, many insurers give a discount for hail-resistant shingles, so replace your roof with certified hail-resistant shingles when yours are worn out. 

Wiring: The building's electrical system can play a big part in rating. During the 60’s to 70’s, copper prices soared, so instead of copper, they used aluminium wiring…with disastrous effects. Aluminium isn't suitable for building wiring, and it has been the cause of numerous fires. Another very important item is if your building is using a fuse box or a breaker box. Breaker boxes replaced the fuse box because fuses created many hassles and safety hazards (E.g. fire hazards). So if your building has copper wiring and a breaker box, you’ll get a much better rate. Note that some insurers won't even insure buildings with aluminum wiring and/or a fuse box!

Plumbing: Way back, someone decided to use lead pipes for plumbing before we found out about all the 'fun' side-effects. Then copper piping used to be the norm, but as we all know from Lady Liberty, copper and water don’t exactly play nice together. Today, homes are made with plastic and/or non-oxidizing alloy plumbing. If your home has had its plumbing replaced, a discount might be available.

HVAC: Heating, Ventilation, and Air Conditioning units are another area where you can receive a preferred rate. When you have these replaced, always note if it gas, oil, or electric, and the type it is (Heat Pump, Forced Air, Central Air, etc.)

For each one of these, save receipts that verify when the update occurred and what was done. Keep everything in a file, and make a simple list of updates for quick reference. Also, when buying an older home, make sure the seller has all the update information!  

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

A Non-Mechanic's Guide to Winterizing Your Vehicle

One of the best ways to keep your vehicle from breaking down is proper preparation. Winter conditions can be very hard on your car, and often turn small mechanical problems into large ones. While there are things that are best left to the professionals, we have compiled a list of things anyone can easily check to minimize the chances of having a mechanical failure this winter:

• Anti-Freeze (Coolant):
• Fill the reservoir if it is below full:
• A 50/50 mixture of anti-freeze(coolant) to water is recommended to properly cool and to not freeze.
• Battery Cables and Connections:
• Batteries should be replaced periodically. A bad battery will often die on the first freeze.
• Cables connecting the battery to the engine should be in good condition, not visibly warn or wrinkled, and (especially) not showing the wire underneath:
• Replace any rubber coverings that are in this condition asap.
• Connection points on the battery should be corrosion-free and should be firmly tightened to the battery.
• If corrosion (usually a white-crusty substance) is built up around the connection points, disconnect both battery connections before you clean:
• Use baking soda mixed with water.
• Alternatively, use a can of Coke.
• Brakes:
• Make sure the brake fluid reservoir it is filled to the proper level
• Note that the brake line is a closed system. If the brake fluid level has gone down, that means you have a leak, which should probably be serviced as soon as possible.
• If your breaks squeal or squeak when breaking, it might be time to replace the brake pads.
• Replacing the pads yourself is a fairly simple process if you have the proper space and tools.  
• Note that the squeaking is not a sure-fire sign of the brake pads needing to be replaced.
• Fuel Tank:
• Keep a full tank of gas in case of an emergency.
• A full tank of gas will keep the fuel line from freezing.
• Heater/Defroster:
• Make sure each works properly, have them serviced if not.
• Lights/Hazard Signal:
• Make sure all lights and signals work: 
• If they don't, first try replacing a possibly burnt-out bulb:
• If the new bulb doesn't fix it, have it serviced.
• Oil:
• Check for correct oil level:
• Fill if below recommended level.
• Check the oil weight:
• Heavier oils congeal more at low temperatures, and thus do not lubricate your engine as well.
• A guide to oil weight can be found HERE. 
• Windshield Wiper Equipment:
• Repair worn-out blades.
• Ensure wiper-fluid is full and works properly:
• Make sure your wiper fluid is made for winter conditions!
• Tires:
• Replace tires if the tread is worn out or is not made for winter conditions:
• The test to determine worn out tires is to find a penny, and stick it into the grooves of your tires with Honest Abe's head-down. If the tread does not cover the top of his head, they need to be replaced.
• Thermostat:
• make a mental or physical note of where the thermostat's needle normally is once the engine is fully warmed up.
• Variance from the normal temperature may require professional servicing, or just the addition of more coolant/water.

There's hundreds of things that could cause a problem on the road, but following this guide can help prevent a lot of them. Self-diagnosing and fixing a potential problem before it turns into one can save a lot of time and money. 

Note: While working in and around your car, make sure the engine is off and the car is in park/has its park-brake on. A cool engine will work best for checking these things, and remember to follow all of the guidelines on/in your car and in your owner's manual. When in doubt, check it out--your owner's manual will show where all of the reservoirs are, where they should be filled to, and what they're supposed to be filled with. Double check before pouring! Be safe this winter!

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

How to Make a Winter Emergency Kit

Winter weather is already here for most of us, and with it comes a host of additional risks while driving. With Christmas and New Year's just around the corner, you should consider keeping some extra emergency items in your car for winter emergencies. The following list was compiled to be an ideal emergency kit that can keep you prepared for almost any winter-related problem:

• Rock salt (to melt ice)
• Sand or kitty-litter (for traction)
• Snow shovel
• Ice scrapers
• A blanket
• An extra, warm outfit 
• Battery-powered radio (so you don't have to waste your car's battery/gas for the radio)
• Non-perishable snack foods 
• LED Flashlight (very bright with low-energy consumption)
• Extra batteries
• Water
• Booster/jumper cables
• Tow rope
• Emergency flares
• Matches
• Pocket knife/Swiss Army knife
• First-Aid kit
• Solar-Powered USB charger (it can rest on your car's dash and recharge your phone for emergency calls) 

We recommend finding an old backpack or duffle bag to keep all of these items in. While we hope you don't ever have to use it, we know these things will come in handy if you do! Stay safe out there!

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

Newsletter Links

Our agency subscribes to four very helpful newsletters that we want to share with you! Down below, you will find links to each one. Note that each updates monthly.

Construction Insurance Bulletin: This newsletter provides excellent information for anyone in construction, real estate development, architects, and building related industries. It's articles pertain to the interests of small to medium-sized construction companies.

Business Protection Bulletin: The Business Protection Bulletin is a very popular newsletter with business owners and executives. It will cover topics in business and professional liability insurance, errors and omissions insurance, commercial auto, and miscellaneous related topics.

Personal Protection Bulletin: This is a great resource for consumers of personal line insurance. This will keep the reader up-to-date on auto insurance, homeowners/renters insurance, personal risk, and miscellaneous pertinent topics.

Workplace Safety Bulletin: The articles of the Workplace Safety Bulletin will help readers stay current on important topics for any business that buys worker's compensation insurance. It provides valuable insights on reducing exposures and maintaining an excellent modification factor.

We hope these will benefit you. Remember, knowledge is power!

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

Why Are My Rates Increasing? I Haven't Had Any Claims!

Insurance companies use various factors to determine the rates they use, and rate increases often have very little to do with you, personally.

Everyone knows a bad driving record or a hail loss on your home is going to make your rates go up; that’s to be expected. But what happens when your rates increase even though you've been a perfect angel this year? That is not an easy question to answer, because it could be one or a combination of the many factors that decide your final insurance premium:

Inflation: 

Insurance, just like everything else, is subject to inflation. Insurance companies are just like any other business; they need to make a profit to stay afloat. So when the costs of things go up (rent, labor, utilities, etc.), the cost of your insurance has to go up as well.  

Location: 

Actuaries are the ladies and gentlemen behind the scenes who crunch the numbers and come up with rates. These folks use location specific data for part of the rate calculations, which create different rates for different areas. They compile the loss information from an area, such as how likely they are to be affected by certain perils (hail, wind, snow), and then they have to predict the losses for the coming year. From these calculations and predictions comes your location-specific rate.

Example:

Let’s compare Omaha, NE to Lincoln, NE. Omaha has been hit with far more severe storms over the past few years, costing Omaha-insurers millions of dollars to cover the wind and hail losses. So you’ll find insurance rates are higher there than in Lincoln, simply due to more severe weather. Similarly, Omaha has higher rates of crime (vandalism, insurance fraud, arson) which increase the chance of loss to property. They also have a significantly higher population than Lincoln, increasing the chance of auto accidents. All of these uncontrollable factors add up to their higher location rate for Omaha than Lincoln's. 

Demographics: 

Similarly, actuaries divide the population between males and females, ages, education levels, marital status, years licensed, etc. They have access to statistical data that provide an insight into each of the different demographic segments, and how risky insuring each is. A good example is this: knowing nothing else, would you rather loan your car out to a sixteen-year-old boy, or a thirty-year-old mother? 

Financial Score: 

A little known rating tool of insurance companies are your insurance-specific credit scores. They have found that using your credit history is a good indicator of how good of a risk you are. While it may not be true for everyone, they have found that the higher the credit score, the lower the risk.

Legal Expenses:

Having a lawyer isn't cheap. Having them defend you in court isn't cheap either. After attorney fees, court fees, bonds, rewards, and penalties, that leaves a hefty tab to pick up.  Everyone remembers McDonald’s Hot Coffee lawsuit of 1994 that was initially settled for 2.86 million dollars. Insanely high awards are becoming more common, and all of the fees leading up to the final decision are increasing as well.

Litigation Frequency: 

Compounding the problem with Legal Expenses is the frequency of law suits. The lawsuits keep coming, and keep getting more expensive. We've gone from suing over coffee to suing for baking neighbors cookies. With an overly litigious society comes an even larger tab left for the insurance industry to pick up. 

Insurance and the Law of Large Numbers:

Insurance itself is simply having a large amount of people pooling their money together, and having the insurance company use that money to pay off people's claims. With the Law of Large Numbers, actuaries can accurately measure how many claims they'll have and how severe those claims will be. Then, along with their other calculations, they use that information to determine how much everyone has to pay.

Medical Expenses: 

Another trend is the ever-increasing prices of medical care. Going in to get that cough looked at can easily cost one hundred dollars, plus a thirty dollar prescription. So you can imagine what it would cost to fix-up a house guest that accidentally slips and breaks their arm.

Rebuilding Expenses:

The market value of your home or office building and the amount it would cost to replace it after a claim are very different values. Replacing or repairing a building costs far more than it did when it was originally built. These increased costs increase your rates.

"Hardened Market": 

Nationally, the insurance market fluctuates, and it has periods of being “Hard” and being “Soft”. A soft market occurs when an insurance company builds up enough profit that they decide to take market share by aggressively advertising and cutting insurance rates. In order to keep up, the remaining companies start doing the same. Eventually, you have companies with extremely low rates and companies who accept anyone, regardless of their claim history. That type of operation ends up with too many claims and poor profit margins for the insurance companies, so then they'll be forced to increase their rates and restrict the types of people/operations that they'll insure. That type or market is a hard market. (We are currently in a hard market)

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.