Agreed Value vs. Actual Cash Value: What is the best coverage for your boat or camper?

Do you have a boat and/or camper insured (or that needs to be insured)?  Do you know what type of value it is insured for?  You might want to look at your most recent declaration page to see how it is currently covered.

Boats and campers are typically insured one of two ways - either Actual Cash Value (ACV) or Agreed Value (AV).  What is the difference?

• Agreed Value (AV):  Agreed Value means that if we have a boat insured for $10,000, and it is determined to be a total loss in a covered claim, the insurance company would pay the agreed value of $10,000.
• Actual Cash Value (ACV):  ACV pays up to the amount an item is insured for, but the insurance company determines the value.   An insurance company might use NADA and comparables to look up the value of a boat or camper.  With the same example above, the insurance company might determine (after looking at NADA and comparables) that the value is $8,000 so they pay $8,000 if the boat was determined to be a total loss in a covered claim.  

Agreed Value is better coverage, and since the values of boats and campers can be all over the place we recommend changing to Agreed Value coverage.  We have had issues where a client has felt that their camper is worth more than NADA and comparables show - Agreed Value coverage fixes this problem when there is a total loss.  If you would like to discuss how changing from Actual Cash Value to Agreed Value could affect your insurance policy, contact Absolute Insurance today by emailing us at service@insaia.com or calling us at (515)279-2722.

For more information on insuring your boat, check out our Boat Insurance page.

5 Alarms to Consider for your Home

What alarms and sensors do you need in your home? The answer is different for everyone. But, whatever your situation, today’s technology has you covered with options including online monitoring and more. Here are some common alarms, including two everyone needs to have, and three many people should at least consider:

1. Smoke alarms
   No matter where you live — house, condo, apartment — you need smoke alarms. Place one in every room where people sleep, and at least one on each level of your home. Consider alarms that work for both flaming and smoldering fires (they’re different), as well as an interconnected system so that all alarms sound when one detects smoke.
    
2. Carbon-monoxide (CO) detectors
   Here’s another must-have. CO — a deadly, odorless gas generated by the burning of fuels such as wood, natural gas or propane — kills hundreds of people a year in the U.S. You should have at least one CO detector on every level of your home, even if you only have electric appliances and heat sources. Your state may even require you to have one.
    
3. Natural gas detectors
   These alarms usually detect CO and propane leaks, so consider one if you have natural gas appliances in your home. You also need one for your RV or trailer if you use propane to fuel your cooking or heating.
    
4. Water alarms
   Leaks from appliances or pipes can do extensive — and expensive — damage to your home if they go undetected. Water alarm systems typically use sensors placed near appliances or other trouble spots to alert you when they sense moisture.
    
5. Security systems
   Whether you want a do-it-yourself system or one that is professionally monitored, you’ve got more options than ever before. You may even be able to check in on your home from wherever you are using your smartphone.
    

When you’re making these important decisions, here’s one more important thing to consider: Some of these alarms could qualify you to save on your homeowner's insurance!

You can find more information about Homeowner's Insurance coverage at https://www.insaia.com/home_insurance.php

You can also click here for a quote on your Homeowners Insurance.

Please give us a call at 515-279-2722 or email us at service@insaia.com.

Turn Around; Don't Drown

Last week was about as wet and wild of a week as we can handle. In particular, Wednesday night was rather insane. It is not all that common to get over 7 inches of rain in a single night, but for many areas of central Iowa, this and more happened.

The pictures for this article are actually directly in front of our office. Luckily, we suffered no damage but others were not so lucky. In fact, while the office was safe and dry, many of us did get water in the basement, as did I. Remarkably, the water that came into my basement did not get there from the lack or malfunction of a sump pump. My damage was a result of tiny cracks in the basement floor. Seepage from those cracks left for a wet and smelly mess in my basement.

"But, Dan, you are an insurance agent and you have coverage for this type of situation" is probably what a lot of you are thinking. Unfortunately, since the water did NOT come through the sump pump NOR the drain, I have no coverage for this type of event. I must find a way to fix this problem without the help of insurance money. Fortunately for me, this is not the 1st time this has happened and I don't suffer any financial consequences in terms of property. I have everything that is of value on shelves and in plastic sealed tubs. However, for others, there was damage done from this. Some of the situations did merit coverage as pumps did fail. Others are like me: looking at gutter extensions and sloping dirt at more aggressive angles from the house- anything to push the water from the foundation. Then we can get to actually filling the cracks.

After a night like Wednesday night, we all experience the crash course in water tables 101 (and not the fun kind that kids play with under shade trees in the summer breezes) and what happens when the earth simply cannot handle any more water. The flash floods endangered lives and property and strangled commutes for days and weeks later. If you'd like to see what flood insurance would cost you, please feel free to contact your Absolute Agent. Keep in mind that flood policies have a 30 day waiting period before coverage becomes effective, so it is definitely something to purchase in advance. However, not even flood insurance would cover seepage.

Please remember, when you see water over the road to "TURN AROUND; DON'T DROWN." This is completely unsafe! We simply don't know where the road ends and the ditch begins and can't see any other hazards that are possibly in the road. Secondly, this will TOTAL YOUR VEHICLE as the motor will suck in water. Thirdly, do not underestimate how powerful the water is. It can easily pick the up the vehicle and carry it away. There is nothing worth risking yours and your family's lives for on the other side of that flooded road. Turn around; Don't Drown. 

Stay safe and dry, Friends!

Mind the Gap

London, England: perhaps one of the better examples in this day and age of the fusion between rich culture and history with modern flair. From the Tower of London to the nearby Shard that dominates the cityscape today, there are beautiful and wonderful examples of the new and fresh intertwined with old and true. One of the most prevalent and important aspects of the new age London is by far the introduction and utilization of the Underground.Very simply, this is a highly efficient subway system that crisscrosses and connects the entire town and surrounding areas.

While I was visiting this marvelous and beautiful city, my lovely wife and I used the Underground for nearly all of our transportation needs and became quite familiar with it within a few days. One thing that sticks with me, besides for the cleanliness of the system (we were there just prior to the 2012 Olympics and perhaps that was why everything was so clean), was the voice on the speakers as the train stopped to unload and load passengers: "Mind the Gap". That, in addition to several signs, helped passengers be cognizant of the 6 inch gap between the loading platforms and the train itself. Surely, to get a foot stuck or to actually fall between this gap would be more than a mild inconvenience! It would be a complete disaster of life and limb with major financial consequences.

I took to heart the warning and have took to heart the implication beyond simply getting a free foot amputation. Just as another captive company mentions frequently, we all most be cognizant of and recognize the gaps in our insurance policies. Some of these gaps are standard issues that every company has implemented- such as Flood exclusions. Some of these gaps can be solved through the use of riders like water back-up coverage and earthquake coverage. Some of the gaps exist simply because your lifestyle has changed and you now use your vehicle for delivery verses simply driving to one location on a daily basis.

This is where your local, independent Absolute Agent is worth their weight in gold! We can help uncover gaps in coverage and help you understand the ones that will always exist and the ones that can be mitigated against. Keep in mind that the cheapest possible insurance may not be the best for your situation. Also keep in mind that there is value in being able to actually sit down with your agent in the office and not always call the 1-800- WHERE-THE-HECK-ARE-YOU??? and get a different person each time nor always go to the computer for internet quotes and guidance. Help us help you keep your financial livelihood from experiencing an amputation!

Mind the Gap, Friends.

Love. We sell it! Come and Get Your Love Insurance!!!

No, really... you read that right! Perhaps it is not *exactly* what you think when I say we offer and sell love insurance. This is definitely not "broken-heart" or "a-promise-to-find-you-love" insurance, however, there are probably a host of other sites that will do so or at least lay claim to such a feat, but we do offer and sell "Love Insurance".

You see, when you purchase life insurance, you do so for one primary reason: Love. You purchase life insurance because you love someone and respect the idea that when you pass, there will be obligations left behind for your loved ones to have to sort out and deal with. Now, money from a life insurance (or Love Insurance) settlement will never replace you, but it can help to prevent a tragic personal loss from becoming a tragic personal loss compounded with a tragic financial loss.

As it sits today... this very moment... if you are struck by a bus, could your surviving family members, those that depend on your being-there and your paycheck, could they not only make ends meet tomorrow but also do that in addition to paying the raising costs of final expenses? Will the daycare still need to be paid? The mortgage or rent? Will your children have the option for college without soul-crushing student debt? Will... will... will... the obligations are truly endless but, while you may not be there, you can, in the very least, show your final act of true love by purchasing a Love Insurance policy that can help with these financial consequences of a life filled with love, lived. Even though you aren't there, these proceeds can go to help buy your daughters wedding dress, money down for your kids first house... all this for the price of a six pack and pizza (not all that much).

Show your love for your family and contact your Absolute Agent today at 515-279-2722. We have many options to review with you, but when it comes down to it, having something in place is the truly necessary ingredient to bake your love cake. Visit our website at: www.insaia.com 

Meet Dan

Meet Dan. Dan is not a "1-800" number. He is ready to assist you with all your personal lines insurance. Have you compared your coverage and rate lately? Let Dan help: 515-279-2722 or www.insaia.com. Serving the Des Moines Metro and surrounding areas.

Things Insurance Fans Love

As a Local Independent Agent, I often have the pleasure of discussing many facets of life with clients over the phone or in the office. Sometimes these jovial discussions remain just that: jovial and entertaining. However, other times, folks tell me things they don't necessarily care for about insurance. I understand many of these concerns, but when it comes down to the reality of what insurance actually does and how it responds when we are in our most desperate positions, I cannot help but to be a fan and advocate. Usually, upon reflection with the clients, we both end up feeling better about the situations.

Here are just a few items that insurance fans love:

• Risk Transference. This is the basic tenet of insurance. For a fee, we allow another entity to absorb our first dollars worth of liability. This is AWESOME! The insurance company gets behind us when we have momentary lapse of judgement and cause damage to another party up to our policy limits. Without this, our bank accounts, wages, homes, and retirements would all be subject to lawsuit that follows! Better yet, get yourself an umbrella policy and boost those limits even higher with broader ranges of coverage.
• Roadside Assistance. If you have ever broken down alongside the side of the road, then this is an awesome endorsement available via most companies auto policies (restrictions apply per company).
• Water Back-Up/Sump Pump Failure. This is another one of those special endorsements via the home insurance policy. What happens to your sump pump when the power goes out? You guessed it- it goes out as well. If you have a finished basement, these mild irritant just became a costly mess. However, if you this endorsement on the home insurance, it will pay to cover clean up and the cost to replace ruined building items and contents (subject to policy limit).
• Rental Car Reimbursement. You've just had the accident. Sure enough, you were at fault. You have great liability limits and the other party will be handled well through your carrier, but now your sole means of transportation will have to be in a shop for the next two weeks to get repaired. This is more than a mild annoyance. This is devastating! Thankfully you and your Absolute Agent added rental car reimbursement to the full coverage on your vehicle so that you can utilize a rental car while your vehicle is being repaired. Another day saved through a proper conversation with your Absolute Agent (limits apply to per day cost and coverage is only available if comprehensive and collision coverage is purchased on the vehicle).

These are but a few of the things insurance fans love. There are definitely more to review in detail and we will definitely touch on them in the future. Until then, contact your Absolute Agent today at 515-279-2722 for more information. www.insaia.com

Spring has Sprung!

Finally Spring has come and with it comes the possibility of spring showers through April and May. With the rain will come the rejuvenation of the outdoor world. The lawns will turn to green and the tulips will begin to bloom. These are beautiful sights to behold after a winter of being held hostage in homes due to the frigid winds and temperatures. However, as these showers melt away the bits of snow and ice on the ground and as the ground thaws, there can be a lot of extra water coming towards the foundation of your home and ultimately being routed to you sump pump. This is an excellent time to head down to your basement and open the sump pump well do some your regular spring maintenance. No one wants to deal with the problems associated with a malfunctioning sump pump and there are a few steps to take to maintain your pump and keep it in the best working order. These tips are general guides and you should follow the manufactures recommendations first and foremost.
These tips were found at www.homerepair.about.com:
Plan on doing these items every 3-4 months:

• Clean pump inlet screen
• Check power cord and make sure the cord is connected to power
• Dump a bucket of water into the sump to raise the float and make sure the pump turns on

Plan on doing these items every year:

• Remove the pump from the sump and clean it and inspect it
• Clean out the sump
• Check the owner manual to see if the pump bearing require grease or oil. If you do not have the manual look it up on the internet using the manufacturer and model number of your pump or contact the manufacturer
• Replace the pump in the sump
• Check power cord and make sure the cord is connected to power
• Dump a bucket of water into the sump to raise the float and make sure the pump turns on, adjusting the float if necessary

We at Absolute Insurance also STRONGLY advocate that homes with sump pumps should also install a battery back-up pump that will assist your main pump in the event of a power loss. There is also a newer version of a pump that uses the home’s water lines to act as a pump rather than using electricity. This is highly beneficial if you are in area that losses electricity consistently during storms. Call your Absolute Agent today at 515-279-2722!

Annuities: Safe Choice in Choppy Market

With the recent credit and market insecurities, many people have lost as much as 55% of previous investments in their stock driven 401k's and IRA's.  For some, this isn't the end of the world as they may be young enough to make up for the losses in the future.  For others, the loss comes right at the time of retirement and will have devastating financial outcomes. 

Given the current market conditions and the see-saw nature of the S& P and Dow Jones, now may be a great time to consider an investment in an annuity backed IRA.  These operate in much the same way as stock driven IRA's, except without the risk of losing your investment.  These types of IRA's offer guaranteed interest rates which, as we have all now seen, stocks do not!

There are various types of annuity products available, some of which are readily available to transfer your existing stock driven IRA's directly over to a guaranteed interest rate annuity IRA.  Whether you have a qualified or non-qualified fund, we have a solution to fit your needs.

Now is the time to talk with your Absolute Agent and discover the awesome power of guaranteed interest rates combines with the power of compounding interest.  Don't let your money slip away in the market.  Call today for information. 

September is Life Insurance Awareness Month

You may not like to think about it, but your death can be costly to your loved ones.  At the very least, there will be funeral and burial costs.  There may also be estate taxes and outstanding debts to pay, such as medical expenses not covered by health insurance.  If you have dependents, they will have to cope with these costs while not longer having your income to rely on.

Why buy life insurance?

Many financial experts consider life insurance to be the cornerstone of sound financial planning.  It is generally a cost-effective way to provide for your loved ones after you are gone.  It can be an important tool in the following ways:

• Income Replacement:  For most people, their key economic asset is their ability to earn a living.  Proceeds from a life insurance policy can help supplement retirement income.  This can be especially useful if the benefits of your surviving spouse will be reduced after you death.
• Pay off debts:  Consider life insurance so that you loved ones have the money to offset burial costs, credit card debt, and medical expenses, etc.  Life insurance can (also) be used to pay off the mortgage, supplement retirement savings, and help pay college tuition.
• Estate Planning:  The proceeds of a life policy can be structured to pay estate taxes so that your heirs will not have to liquidate other assets.

How much life insurance do I need?

To decide how much life insurance to buy, you need to first figure out what your goals are in purchasing this coverage.  As yourself the following:

• Do I want to spare my loved ones funeral costs and outstanding debts?
• Am I concerned that my spouse will not be able to continue to pay off the mortgage?
• Am I concerned about college savings for my children or retirement savings for my spouse?

While all situations are different, you will have to purchase enough insurance to provide for their future, while considering how much of your budget should be devoted to life insurance.

Some experts suggest that you purchase 5-8 times your current income.  (However), you will also need to figure how much your dependents will need to pay for in terms of the cost of owning a home, college tuition, food, clothing, child care, nursing home, funeral expenses, and estate taxes.

Your insurance needs will vary greatly according to your financial assets and liabilities, income potential and level of expenses.

Call your local Absolute Insurance Agent to help you determine what is right for your life insurance needs.