Back to School: Kids in College

As the days slowly close out sooner and the weather begins to cool down, we know it is time for recent high school grads to ship off to college and start their higher education process.  This is a wonderful time for both parents and students alike, but also one that can be emotionally and financially depleting.  As your student goes away to school, some interesting problems can develop in terms of how to cover the property of the new student while living outside the home.

To begin, living arrangements for new students can vary widely, whether they must stay in the dorms or our living in an apartment, or rented home.  Some other issues may present themselves as to whether the student will return home for the breaks and summer, or will they have a permanent address while living in the college town.  Some of the answers to these situations may lead you down different paths for the proper coverage of the students property.

While most companies are willing to extend the personal property out to the student in the event that they are full-time students and their permanent address is still at home, there can be variances on how things are covered in the event that they live in an apartment and consider that their permanent mailing address.

Another aspect to consider is the fact that some of these students will be operating a vehicle while at school and it will become important to correct the vehicle garaging zip code.

Consult your Absolute Agent and describe your situation in order to ensure you have the correct coverage for you and your college student.

You've Got Some Q's: We've Got the A's

Q:  My wife lost her wedding ring while we were on vacation.  Is this covered under my house insurance?

A:  No.  It would have to be stolen in order to be covered UNLESS it was scheduled on the home policy as "Scheduled Personal Property"


Q:  A tree has landed on my house and has caused damage to my home.  Will insurance replace the tree?

A:  No.  Home insurance protects your home and detached structures.  Trees are not covered.


Q:  My vehicle was broken into and personal property was stolen, is this covered under my full coverage auto insurance?

A:  No.  Only items that were attached to the vehicle as stock items are covered.  Personal property losses would only be covered under a home, renters, condo/townhome, or mobile home policy.  Auto insurance never covers personal property.


Q:  Water came up through my sewer drain and destroyed my roommate's belongings.  Will my homeowners insurance cover this?

A:  No.  Your home insurance will cover only those things belonging to you or a family member.  Unless you have Water Back-up coverage, your home insurance would not even cover your belongings.  In this situation, your roommate would need to get a renters insurance policy to cover their belongings in an event of a loss, and in this situation, they would also need to have the renters insurance policy endorsed with the Water Back-up of Sewers and Drains coverage in order to be protected.

Life and Home: Similarities Galore

Why do some people buy houses for their primary residence instead of living in apartments?  In most cases, there are a number of reasons, ranging from the desire to own instead of renting to tax-advantaged growth to building equity to overall security.  Do any of those reasons sound familiar?

Permanent life insurance offers many of the same benefits as home ownership.  You buy a home because you want permanence, a place to put down roots, because you are always going to need a place to live.  Renting an apartment is generally a temporary solution to housing needs.  Buying permanent life insurance, whether it be whole life or universal life, is what one does to cover a need that will always be there.  Term insurance is temporary, and the premiums continue to increase, just like rent on an apartment.

Permanent life insurance also offers equity buildup, just like home ownership does.  The cash values will generally increase year to year and can provide equity that can provide equity that can be tapped for emergencies, for college funding, for additional retirement funding, or for many other needs, just like home equity.  The growing cash values in the permanent life insurance policy also offer tax advantages because you don't pay income taxes on the growth as long as it stays in the policy.  The earnings are income-tax deferred.  You can say the same about a home in that you don't pay income taxes on any increase in the value of your home as long as you live there.  Once you sell the home, you may have capital gains tax to pay on the growth if the gains exceed allowable levels and the money is not reinvested in another home.

Permanent life insurance also offers a peace of mind security, just like a home.  You know it's always there protecting you from whatever storms may come, financial or otherwise.  Term insurance, on the other hand, eventually will go away go away because the price gets too high to continue.

For more information on life insurance, contact your Absolute Agent today!

Off Season: Keep the Boat Insured

Summer is over, and you've taken your boat out of the water.  To save a few dollars, you cancel your boat insurance.  After all, what could possibly happen to your baby while it's hibernating? 

A lot, according to Progressive.  "You'd be shocked at the number of claims filed in colder months," says Dominic Mediate of Progressive.  "Nearly two out every 10 Progressive boat claims filed in northern states happen between Labor Day and Memorial Day."  Don't take a gamble on nothing bad happening.  Common off-season claims include:

• Fire, theft, vandalism, and flooding:  Most claims are filed for one of these reasons, which can occur anytime of the year.  Without coverage, boats damaged by fire, theft, vandalism, or flooding aren't protected
• Injuries that occur on or around your boat:  Some boaters don't realize they could be responsible for injuries that occur on or around their boat - even if the injured person was there illegally.  Without liability coverage, you could be responsible for the damages or the injured person's medical bills.  

Keeping your policy all year round might also save you a few bucks.  For example, Progressive's disappearing deductibles reduce your Comprehensive and Collision deductible 25 percent for every claim-free policy period.  Four policy periods in a row without a claim equals a $0 deductible.  Canceling your policy could mean paying more or the entire deductible, generally $500 or $1,000.

Check your policy and consult with your Absolute Agent before making any decisions.

Claims: Q and A

Q:  I own a home and my girlfriend just moved in, is her stuff covered under my home insurance?

A:  No.  Since she is not a relative, there is no automatic coverage for her belongings or liability.  In most cases, there is an endorsement that can be added to the policy to cover her.  In other cases the best thing would be to establish a renters insurance policy.  Either way you go, these are relatively cheap fixes to a little known coverage gap for both property and liability.


Q:  My basement wall is bowing and I'm afraid that it will eventually fall in.  Will my home insurance cover this?

A:  No.  This is a matter of neglected upkeep on the home.  Just as your home insurance will not pay to replace a roof that is deteriorated from normal wear and tear, it will not pay for the repair to the normal pressure of the earth against the foundation walls.  Insurance is protection against sudden and accidental risks, not risks that persist over time and have been neglected.


Q:  If I have an accident that is my fault, will my full coverage pay for a rental car?

A:  No.  Comprehensive and Collision coverage do not pay for rental car reimbursement.  That coverage needs to be endorsed to the policy in order for the coverage to be in effect.  The same applied to Roadside assistance or towing & labor.  Full coverage merely covers physical damage.

Spring Time Fun: Insurance for Toys

Insurance is not like the old one size fits all ball cap.  Rather, people with specialized needs will want to get a policy that provides coverage for those needs in specific.  Often times, especially with boat insurance, it is often overlooked or attached to a homeowners policy to cover liability, however, often times this is truly basic coverage that may not suit your situation.

Most often, it is better to separately insured your toys with specialized policies that can provide coverage for Custom Parts and Equipment or to add coverage to possible belongings, such as fishing equipment on a boat owners policy.

Much like an auto insurance policy, special coverage can be purchased for towing, roadside assistance, and rental reimbursement on many specialty lines products including motorcycle, RV, ATV, boat, and personal watercraft.

Another important, and often times, neglected coverage comes by way of the RV, with an optional replacement cost endorsement (if new) and vacation liability coverage.  These can be added to your specialty lines insurance coverage at reasonable cost and leave you worry-free.

We understand that these aren't just toys, they are a way of like.  Your life.  We pride ourselves in partnering with companies that hold this same view and offer competitive rates for specialty claims centers with representatives trained specifically to handle your custom needs.

Call your Absolute Agent for further details on coverage and rates.

Earthquake Coverage

While we don't live in California, with a constant barrage of information, warnings, and occurences, it is not unknown to the Midwest to have devastating earthquakes occur.

The fault line that we are most concerned with in this region of the US is the New Madrid fault line.  This fault line and Seismic Zone runs between St. Louis and Memphis.

According to some "Danger Zone" maps, most of Iowa would feel the seismic activity while indoors, while Southeastern Iowa could actually have unstable objects overturned.

While it may not lead to the same type of damage seen in California, a substantial amount of property damage could very well be evident in or around Iowa.  Unfortunately, earthquake coverage is not an automatic coverage on your homeowners policy.  It is an endorsement that can be added to your policy and normally functions with a percentage deductible.  By this, a person can have earthquake coverage at a 5% deductible, where the percent derived from your total dwelling coverage.  For example, if your home is insured to $100,000, your 5% deductible would be $5,000.

The cost of this endorsement ranges from company to company along with deductible options but is typically between $40 - $80 per year for this additional coverage being added to your existing homeowners policy.  Call your Absolute Agent for further coverage details.