Scheduled Property–-The Solution for Sublimits

Homeowner’s insurance covers your home, your liability, and your items in your home. However, having a standard homeowner’s policy does not necessarily mean all of your items are properly insured. Certain categories of items are subject to limitations by sublimits. This article will discuss how you can properly protect yourself by scheduling your property.

The Homeowner’s policy covers just about every piece of property inside your home. Most policies even cover items you’re storing for others. Most policies typically extend $1,000 of coverage for damages to other's property while you are away from home. One of the biggest pitfalls with the property coverage of a homeowner’s insurance policy, however, is its sublimits. All standard homeowner's policies have sublimits, which are limitations on your personal property limit, assigned by category. Though almost all kinds of property is covered, it is only covered up to the sublimit’s stated value. These limitations can create the need to schedule your property if they are worth more than the total of the sublimit.

Scheduling property is a fairly simple thing to do. At anytime, give your agent the type of property it is (E.g. Jewlery), a vivid description of the property (E.g. Women’s white-gold wedding ring, ½ kt. Princess-cut diamond with diamond paving), and the appraised value. Some categories of items don’t need a professional appraisal, but most companies will require a professional appraisal if the total value of an items is over a pre-determined threshold.

The cost to schedule property is very affordable. The typical item only costs about a dollar per $100 of value. For example, a guitar scheduled for $700 would only cost about $5 per year. The biggest problem with scheduling is getting the correct value, especially for jewelry. The price of precious gems and metals are continually increasing, so having an appraisal every year or two is vital. The $1000 wedding ring you bought in 1990 is definitely not worth only $1000 anymore. Also, the need for professional appraisals becomes increasingly vital as the value of the item goes up.

On the opposite side of things, depreciation drastically affects other categories of items, especially technology (E.g. The $2000 you spent on technology a few years ago may only be worth $400 now).  Some things can be easily appraised on your own using the internet, but professional appraisals are always the most accurate way to ensure you are setting limits properly. Appraising is usually a better option than paying too much for over-insured items as well.

By scheduling your high-worth items, you can bypass the sublimit’s limitations on coverage. Depending on your insurer, you can sometimes schedule your items for agreed value, instead of the actual cash value you would get if the item is only covered under the sublimit’s coverage. Scheduling property is one of the best ways to make sure you have your items properly insured come claim time.

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.

Myths of Renter's Insurance

Only 14% of renters are insured in the United States. Renter’s insurance is often overlooked, due to untrue assumptions. Being insured as a renter is a vital personal risk management tool, and typically only costs approximately $12 a month. It is a safeguard for your future, and can benefit both you and your neighbors! This article debunks insurance myths about apartment/multiple-occupancy style living.

Why do so few people have renter’s insurance?

The typical renter does not know the danger they are in. Most believe that if a fire starts, someone breaks in, or if someone gets hurt on the property, the landlord will be responsible. These are all completely untrue and can have terrible consequences. In fact, we’d argue that renters need insurance even more than the typical homeowner! Let’s discuss this further by discussing a few myths:

‘If a fire burns down my apartment, my landlord will replace my property.’

This could not be further from the truth. In event of a random fire, you are solely responsible to replace your property. The landlord has no contractual obligation to pay for your items, nor is there any law requiring your landlord to. It is solely on you. There are a few other ways a fire loss could go, so let’s illustrate those with a few more fire examples.

‘If my neighbor starts my building on fire and it destroys my property, the neighbor and the landlord will take care of me.’

Once again, it is not required that the landlord replaces or reimburses you for that property. In this case, if your neighbor can be proven negligible in starting the fire, that neighbor is the one responsible for replacing your property, and any damages to the building. The problem with this is the fact that so few renters have insurance! Without insurance, the negligent neighbor will only be able to pay you whatever they have on hand, which is most likely going to be next to nothing, especially since they'll have to pay the landlord and the other neighbors as well.

‘If I start a fire that damages the building and other people’s property, I won’t be held responsible for it.’

No, if you negligibly started that fire, your landlord is going to sue you for the damage you caused to the building. Your neighbors will then sue you for the damages you caused them. If you don’t have insurance, this will be all out of pocket, and will most likely leave you penniless, and will also leave your neighbors’ damages unpaid.

‘If a disaster makes it so I can’t live in my apartment, my landlord will furnish a new place to live.’

If some disaster makes your apartment uninhabitable, you landlord is not required to pay for a new place to live. The landlord isn't even required to help you find a new place! The time you have to spend in a hotel before you can find a new place to live will be up to you to pay for. As for the previous myth, if you were to make another person’s unit uninhabitable, you would be held responsible for any extra costs they faced because they had to find a new place to live. Each of these could be easily covered by a Renter’s policy, but won’t be easily covered out-of-pocket.

‘My roommate has insurance, so I have insurance.’

This isn't necessarily true, unless you are legally married to your roommate, or your roommate is part of your immediate family (even extended-family-roommates might not be covered, so make sure to ask your agent!). Otherwise, your roommate’s policy covers only his/her property and liability. So if you were to start a fire, you would still be held liable for everything, and your roommate’s policy would only cover his/her property that you destroyed, though his/her insurance will try to collect the damages from you.

'What's the big deal--I'll just claim bankruptcy'

This can be a misconception, depending on the situation. If you were to be liable only for financial damages, your bank accounts would be depleted and your belongings would be sold off. Anything after that could possibly be written-off with a bankruptcy. However, the problem is if someone were to be injured or killed. The damages you owe to someone when it involves bodily harm or death cannot be written-off with a bankruptcy. What you owe to the victims will be taken as a lien on you, garnished wages, or both. This same concept applies for those without/with too little auto liability insurance.

The Bottom Line:

Many renters believe that they don’t need insurance, but in truth, renters should have MORE liability insurance than homeowners! This is especially true when you’re part of a very large apartment building—just think of what it could cost you to take care of all the people living in the units adjacent to yours, coupled with the costs to repair the building after you started a fire or flood! On the other hand, even if you don’t cause the disaster, think of how likely it is for someone else around you to flood the place or start a fire! Having all of those neighbors only increases the chances of something going wrong!  

As I mentioned, renter’s insurance is cheap, and will pay you in the event of someone else not having insurance. It is a very worthwhile investment, and can make all the difference when tragedy strikes. That $10 a month can be paid off by skipping fast food for a single meal! Renter’s insurance is a small, but worthwhile safeguard for your future, and can protect both you and your neighbors.

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 Independent Agent—America’s Best Kept Secret

What makes someone an independent insurance agent? What does it matter to individuals and businesses? What are the benefits? Are there any drawbacks?

An Independent Agent, or in our case, an Independent Agency, is an agency that is not bound to a single company. For example, Copple Insurance Agency has contracts with many companies, including but not limited to: the Cincinnati Insurance Companies, CNA, General Casualty, Bituminous, Progressive, Met Life, and so on.

Having a multitude of companies to choose from is a huge benefit for our customers! We are not forced to sell from only one company. This allows us to choose the right company for each situation.  By giving us a few pieces of information, we can give multiple quotes on each line of insurance, and select the policy that has the right coverage at the best value.

Being an Independent Agency, we strive to provide stellar customer service. Our clients know that when they need us, we’ll be there. They also know that when they call in, they will be talking with a real person that cares about them.  We also strive to create a lasting relationship with our clients. In fact, we would rather call them our friends and partners. So, our friends know that they can count on us to be honest, dependable, and caring for them. You don’t have to take our word for it though, click HERE to see what they are saying about us online!

We are a one-stop-shop; we can take care of your Homeowner’s, Automobile, Personal Umbrella, Boats, Aircraft, and Valuable Property insurance. We can also take care of all of your business’s insurance too: Property, General Liability, Commercial Umbrella, Worker’s Compensation, Commercial Auto, Inland Marine, Professional Liability, Bonds, and more! Just think about how convenient it could be having all your insurance with the same agency you know and trust!

As Independent Agents, we take a consultative approach to insurance. We believe insurance is not a commodity, and needs to be respected for the intricate creature it is. That’s why we explain what we're selling, because an informed buyer is the best buyer. We are committed to selling you only what you need, and have years of experience in finding coverage gaps and other potential pitfalls. We also offer risk management through the companies we represent and in-house methods. Everything we do is to create a better experience for our friends and partners.

If you've never heard of an independent agent, that’s because we don’t have multitudes of television, radio, online, billboard, and print advertisements constantly reminding you.The independent agent typically relies heavily on word-of-mouth to find him or her new clients. 

So if you’re not already with an independent agency, consider giving one a chance the next time you’re looking for insurance. You might just be pleasantly surprised what your hometown-agency can offer. If you are already with one, tell a friend—let them know what they've been missing!

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.

Those Sneaky Sublimits

The property in your home is insured for a set amount of personal property. However, did you know that just because you have X amount of dollars of insurance on that property, other limits apply in the event of a loss? Find out what sublimits are, and how they can affect your settlement come claim time!

Sublimits are in all standard homeowners' policies, and are applied by category.  These sublimits come into play when there is a loss on personal property. There is a sublimit assigned to different categories of items (see below), and they limit coverage of that category to the amount selected for the sublimit. 

The following is a non-exclusive list containing many of the probable coverages that may be subject to a sublimit:

• Money, Bank Notes, Gold, Silver, Platinum

• Securities, Deeds, Passports, Tickets, Stamps

• Watercraft & Equipment

• Musical Instruments

• Trailers (non-watercraft)

• Jewelry, Watches, and Furs

• Firearms & Equipment

• Silverware & Goldware

• Trees, Shrubs, & Other Plants (subject to a % of Coverage A, and a per-item limit)

• Fire Department Service Charge

• Grave Markers

• Land Stabilization

• Ordinance or Law

• Refrigerated Products

• Electronic Media

• Fire Extinguisher Recharge/Replacement

• Increased Day Care Expense

• Computer Records

• Fungi/Wet Rot/Dry Rot/Bacteria Coverage

• Damage to Property of Others

The total sublimit of each category ranges from insurer to insurer. Some insurers will allow you to change the sublimits, some will not. The typical range of the sublimit is from $500-$5000, but there are exceptions, and ways to increase the amount past that. Depending on the insurer, some of the aforementioned coverages might be simply excluded altogether. 

Example Claim-Scenarios Involving Sublimits

Let's say (tragically) your house and all of your belongings burnt down. Let's also say you had a fine watch collection worth $50K. Almost all policies have a sublimit on jewelry/watches, and your policy (for this example) had a sublimit of $5K. You probably have other jewelry and your spouse or children may have watches and jewelry as well. That's an unpaid loss of over $45K.

Another example (and this one is a more intricate one) is the sublimit for your trees, plants, and shrubs. This coverage has a total limit of (typically) 10% of your Coverage A (the total value of your home). So if you have your home insured for $150K, you have a total coverage of $15K. Another sublimit is typically applied as a per-item limit, so for this example, your per-item limit is $500. Now if a fire engulfs your yard, replacing any of your rare plants/shrubs or re-planting your 20+ year old trees can get expensive, very fast. For example, a four-foot tall blue spruce can cost over $600 a piece! So you're looking at only being able to afford to replant saplings, and only up to the $15K total limit.

How Do I Make Sure I'm Properly Covered?

As I mentioned above, some insurers will allow you to increase the amount of the sublimit. Unless you have a large collection, or one or many high-value pieces, simply increasing the sublimit for that category will adequately cover you. If your insurer won't allow you to increase the sublimit to an adequate level, (which is often the case if you have a sizable amount) you can schedule your property. By scheduling your property, you can individually insure your high-valued items to properly cover them.

Another caveat to being properly covered is knowing whether or not your personal property is insured for Replacement Cost or Actual Cash Value. The difference between Replacement Cost and Actual Cash Value valuations can be the difference of hundreds or thousands of dollars. 

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.

Ordinance or Law Coverage--Properly Protecting Your Buildings

There’s a provision that most standard insurers don't cover: Ordinance or Law. Many insurers give the option to insure for Ordinance or Law losses, but most don't come standard. But what is Ordinance or Law coverage for? What happens without it?

Every community has building and zoning ordinances, and these ordinances are constantly being modified and reinvented as new technology and information comes out. Easy examples would be the banning the use of asbestos and the requirement of egress windows being used for basement bedrooms. These and many other ordinances and laws come into play when a certain percentage of your building is destroyed (the exact percentage depends on your current city code, but is typically 50%), or when certain things need to be replaced. The coverage comes into play because the basic insurance policy itself often only covers you to replace to the exact same condition to what was lost, instead of up to the new code standards. Let me show a few examples.

For my first example, let's say you have a $200K home built in 1910, and (for simplicity’s sake) a storm destroys exactly half of your home. Being half destroyed, the city ordinance requires you to rebuild the whole home up to current standards. In this case, the standing part of your home must be demolished and rebuilt, even though it is technically undamaged. With Ordinance or Law coverage, the cost to demolish the standing portion would be covered, along with any increased costs of construction from building up-to-code. Without Ordinance or Law coverage, you would be held responsible for all of the demolishing and extra rebuilding expenses.

The next example pertains more to commercial property owners. Let’s say your building was completely destroyed. The insurance company is going to pay to rebuild, but the problem is that the city has rezoned, or new land use ordinances have been created. These new laws may require you to move your building elsewhere. The extra cost of the new land would not be covered without Ordinance or Law coverage. Also, you may be required to rebuild in a completely different fashion. Due to the Americans With Disabilities Act of 1990, you may be required to rebuild with the building being accessible to those who are physically disabled. That may require elevators, entryway-ramps, widened doors, raised toilet seats, etc, that weren't there previously. These increased costs would not be covered without Ordinance or Law coverage.

Laws and ordinances are being changed all the time. If your home or commercial building is fairly old and hasn't been remodeled or changed much since it was built, you’re at even more risk in the event of a loss. Remember that undamaged parts of your building may have to be remodeled or completely rebuilt to satisfy the new codes. Also, the new materials and structures that are needed can drive up costs as well. Don’t worry if you can’t keep up with all the new laws, just make sure you are properly insured to cover anything in the event of a loss. Please contact your agent to see what it would take to properly cover you! 

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.