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Social Security Errors That Can Cost You Thousands

Social Security Errors That Can Cost You Thousands

CBS MoneyWatchBy Steve Vernon | CBS MoneyWatch – Sun, Sep 16, 2012 9:31 AM EDT

 

Social Security benefits are the bedrock of most Americans’ retirement security. So it’s well worth your time to learn how to get the most from these valuable benefits — and avoid making mistakes in how you collect them.

To help you in this endeavor, I checked with two of the nation’s foremost experts on Social Security: Andy Landis, author of “Social Security: The Inside Story,” and Jon Peterson, who wrote “Social Security for Dummies.” Between Andy, Jon and I, we came up with four common errors that you should avoid and that will help you optimize your Social Security benefits.

Mistake #1: Starting retirement benefits too early

Half of all Americans claim Social Security at age 62, the earliest possible age with the lowest monthly benefit. But most workers can significantly boost their lifetime payout of Social Security income by delaying the start of their monthly benefits. By how long? At least until age 66, and to age 70 if you can wait that long. For many married couples, this strategy will also improve the financial security of widows who, when their husband dies, will step up to the Social Security income their husband was receiving before he died.

I realize that many people lose their jobs and claim Social Security benefits early to make ends meet. But personally, I’d take any job that would pay me an amount equal to my Social Security benefits in order to reap the advantage of delaying my benefits as long as possible. I’d work at Wal-Mart (WMT), Starbucks (SBUX) or any other part-time job that pays enough to replace my Social Security benefits, while giving me enough free time to look for a better-paying position. In the long run, it’s a financially smart move.

Mistake #2: Claiming Social Security now before program changes are made

“Some people think they must hurry to apply now, before Social Security runs out of money or before reforms make them ineligible,” Landis said. “In fact, Social Security is projected to have the money it needs to operate at the current level for over two decades. And nearly all reforms on the table will apply to younger generations, not those currently retiring. So calm down and follow your best plan for claiming Social Security benefits.”

Mistake #3: Not coordinating benefits for spouses

“Many people fail to coordinate claiming benefits with their spouse, and they miss opportunities for married couples to optimize their payouts,” Peterson pointed out. These strategies usually entail starting Social Security benefits at different times for the husband and wife, whereas many married couples start their incomes at the same time.

One common strategy is to delay benefits as long as possible for the highest earner — often the husband — for the reasons described above. The wife might then claim benefits at an earlier age to have some retirement income coming in. Whether the optimal age to start the spouse’s benefits is age 62 or age 66 (the official retirement age to collect full benefits) depends on your particular circumstances, such as the age difference and relative career earnings history of each spouse.

Two online services that can help married couples optimize their claiming strategies are www.socialsecuritychoices.com and www.socialsecuritytiming.com.

Mistake #4: Under-reporting of income by self-employed individuals

Many self-employed people under-report their taxable income for Social Security purposes, or use tax deductions to minimize their taxable income, on the assumption that paying any taxes is bad. But “This can hurt if you want Social Security benefits one day — including disability benefits, in the case of unexpected illness or accident,” Peterson said.

I know a number of self-employed people who’ve minimized their Social Security taxes over the years and are now reaching their retirement years with little or no retirement savings and severely reduced Social Security benefits. Now they regret this strategy and will need to keep working indefinitely.

According to one analysis, Social Security taxes are actually a good investment, so don’t automatically think it’s a good idea to avoid paying these taxes.

These are just a few of the mistakes that people routinely make in drawing Social Security. Stay tuned for future posts on how best to use the federal program.

It’s well worth your time to learn all you can about Social Security benefits; it can result in increasing the lifetime payout for both you and your spouse by many thousands of dollars.

http://finance.yahoo.com/news/social-security-errors-that-can-cost-you-thousands.html

What is a hard/soft insurance market?

As we enter another market cycle of a “hard market” I am reminded that we have a large group of clients and industry associates who have not had first hand experience of a market cycle and may need some explanation of what is occurring and why.

Most understand that a hard market is an effort for insurance companies to return to profitability. Higher premiums and elimination of policyholders that have had high losses is the obvious actions underway but these steps are only part of the actions underway.

A period of unprofitability for the industry is not something that happens overnight, and is a result of many factors, NOT just because we underpriced our product. Our lack of profit is not the only symptom of a “soft market” rather it is a result of a series of events put into place by external factors.

The purpose of this article is to explain how and why insurance companies can “run out of product to sell”. Yes, insurance companies can sell out of insurance.

Because insurance is an intangible most people can not understand or conceive how an insurance company can run out of insurance. The reality is, however, that an insurance company is one of the most heavily regulated industries in the world. The “amount” of insurance an insurance company can sell is limited by a myriad of laws.

The same laws regulating what, when and how insurance companies can write are designed to protect the public by making sure the money is available at the time of a claim.

Insurance company accounting requirements specified in law are extremely complex, boring and completely understood only by attorneys, regulators, and insurance industry accountants. Having explained that, I will NOT bore you to tears with technical requirements that you really do not want to know about.

I will, however, oversimplify this explanation so that you can easily see what is currently happening in the insurance market and how that is driving the changes.

VALUE OF MONEY
Logic and common sense tell us that to be profitable an insurance company must collect more premiums than they must pay in claims and expenses, however, that is not necessarily true. The missing factor is investment income. To ensure solvency of the insurance companies state laws require the insurance companies to establish reserves, or monies that have been identified as liabilities of the insurance company. Insurance companies customarily take your premiums at the time you purchase a policy and do not pay claims until sometime in the future with that money. With the right investments the insurance company can supplement their income by investing those premiums in bonds, stocks, and other investments until it is necessary to pay for the claims. Some claims are not paid for several months, or years, and as such provide the insurance company with a great deal of investment income. With this knowledge you can now understand that during times for high yield investments insurance companies can collect less in premium than they pay in claims as long as the investment income will make up the difference. Simply stated, the investment income supplements premiums and in times of high interest and market yield can enable insurance companies to lower their premiums. Indeed, in times of extreme yield insurance companies compete for premium dollars as a means to enable them to further their investment income.

ROLE OF RESERVES
Remember the intense governmental regulation to ensure the solvency of insurance companies? A huge element of insurance company solvency is “reserves” that are mandated by statute.

I will save you the pain of an 18-week course in insurance company accounting practices, and give you a crash course on reserves and how they relate to the current insurance market.

First, you must understand that an insurance company cannot show dollars collected today for premiums as earned income. The insurance company must show a $365. premium collected today as $1 of earned premium and $364. of unearned premium. The following day the insurance company can show an additional 1/365th of the premium or another $1 as being earned. In reality the policyholder can cancel their policy and request the unearned premium be returned to them. Insurance is a prepaid expense of the policyholder until such time as the policy is “used” at the rate of 1/365th per day on an annual policy.

By statute the unearned premiums is a liability of the insurance until it has been “earned” by the insurance company. These monies are called unearned premium reserves.

Another reserve that insurance companies must establish is for claims that they are aware of, but have not yet been paid. Once a claim has been reported to the insurance company they must establish a reserve for that claim. They must estimate how much money they think will be required to pay their liability for this claim. This is just one of the many reserves they must maintain for claims. The logic behind this tactic is that this money is owed to the future recipient of the claim, and as such has been “spent” or “used”. Again…The Insurance Company is holding money owed to others, so this is a liability. This does not, however, prevent the insurance company from investing these sums in the marketplace and making investment income from the fiduciary funds. The interest income goes toward the income of the insurance company.

There is yet another claims reserve that few people know about or truly understand called the “IBNR” reserves or money set aside to pay claims for future claims that have not yet been identified. This is an acronym for “Incurred But Not Reported” claims. An example of a claim of this nature is an injury that has occurred but the injured persons have not been identified – i.e. a vitamin manufacturer that has been producing a contaminated product that has slowly impacted the health of its consumers. The consumers have been injured, but the injury has not been identified yet, and the insurance company has not been informed of the injuries and/or claimants. At the end of every policy the insurance company knows there is the potential for claims yet to be paid which have not been reported to them. By law, the insurance company must establish a “reserve” for these claims, and reflect those as a liability.

In review, there are two major reserves (unearned premium reserves, and claim reserves) which insurance companies must establish. In times of high interest rates and profitable economic investments the income of the insurance company can be greatly supplemented by profits of these fiduciary funds.

DURING PERIODS OF HIGH YEILD INSURANCE COMPANIES CAN SOMETIMES CHARGE LESS IN PREMIUMS THAN THEY PAY IN CLAIMS YET REMAIN PROFITABLE.

This can lead to insurance companies cutting prices knowing that with large investment income they can still be profitable. The competition for access to the policyholders dollar feeds competition and as such prices for insurance can decrease. The market becomes “soft” and underwriting standards are lessened. A feeding frenzy can develop for premium dollars, exacerbating the reduction in premiums. In the quest for immediate availability of premium dollars, some insurance companies will seek risks or types of insurance they write that have not always been profitable. Underwriting standards are lessened and premiums reduced in an effort to attract more premium dollars.

When investment income declines because of market conditions, the insurance company will start to recognize losses, and in an effort to curtail those losses, will re-evaluate what type of risks they want to write.

Here is where the CAPACITY issue becomes the driving factor. Remember the requirements for the insurance company to have adequate reserves? An insurance company is only permitted to write a limited amount of insurance or assume a certain amount of “risk” in relationship with the amount of money they have in reserves.

ROLE OF REINSURANCE
If an insurance company elects to share their exposure of risk they usually purchase reinsurance from another insurance company known as a reinsurer”. The reinsurer will “insure” or assume some of the insurance company’s risk in exchange for some of the insurance premium. By spreading the risk to another insurance company, the regulators will allow the original insurance company “credit” or a reduction in the amount of reserves necessary. Therefore an insurance company can increase their capacity or amount of insurance they can write by purchasing reinsurance from a reinsurance company. The cost of the reinsurance is an expense that impacts the profitability of the original insurance company. However, in the event of large losses, the reinsurance can assure the profitability and/or continued existence of the original insurance company.

Therefore, the cost and availability of reinsurance is a major component in the profitability of most insurance companies. In addition, reinsurance enables insurance companies to transfer risk, reduce reserves, and the ability to write more insurance. In other words the reinsurance will expand the capacity of an insurance company.

When reinsurance becomes more expensive insurance companies must charge higher premiums to make the same level of profitability.

The cost and availability of reinsurance is a major component in the final cost of insurance to the consumer. When reinsurance costs go up, the original insurance company must charge more because this is part of their “cost of doing business”. Another way of viewing this is that reinsurance is part of the “cost of goods” for insurance companies.

The WorldTradeCenter attack in September 2001 is the largest loss for insurers in the history of the industry. No doubt this is exactly the type of event reinsurance was designed to handle. The reinsurance industry will pick up the largest share of the losses and as such the reinsurance industry will take the biggest “hit” in their history. Compound this with the pressure of government to prevent insurance companies from excluding “terrorist acts” from existing and future policies, and you can readily see why the reinsurers become critical to the future certainty and solvency of the industry. Combine the critical need for reinsurance with the uncertainty we are facing for future attacks and you can readily see how reinsurance has become a major component in our current “market condition”. Terrorism of this magnitude is new and the reinsurers are unable to predict future losses from past experience, therefore the “cost” is guesswork at best. Logic follows that if you are forced to “guess” at the future costs you are going to error on the side of making sure you have charged enough. Now you can see “what” and “why” reinsurance has become one of the largest components in the cost of insurance for everyone.

ROLE OF UNDERWRITING
In a “hard market” where insurance companies are limited on the “amount’ of insurance they can write, they turn to their “underwriting” staff, or those people who determine “what” risks the insurance company will write and advise them to reduce or limit the amount of risks they write.

I like to compare this process with shopping on a limited budget. If you have extremely limited dollars to spend for food you make certain you get the most bang for your buck, or carefully shop prior to buying. If you are an insurance company with limits on how much insurance you can write, and are close to reaching those limits you make sure you are writing only the very best risks. A process known as “cherry picking” – taking nothing but the cherries and leaving the pits for others. This is the underwriter’s job. If you are a “risky” policyholder or prospective policyholder in a “hard market” you may find it much more difficult to find an insurance company to sell you a policy. Those insurance companies that take “higher risk” exposures will naturally want to charge a higher premium. This is how “capacity issues” become “availability issues” to the policyholders.

SUMMARY
As you can see, legal requirements for reserves, and the cost of reinsurance compounded with the role of current economics and investment income all impact the availability and cost of insurance. We have gone from a “soft market” to a “hard market”. The length and severity of the hard market is unknown, but at least now you understand “why”.

This article was written by Lanny L. Hair, CIC, ARM, AAI, RPLUExecutive Vice President of the Independent Insurance Agents & Brokers of Arizona.

Copyright 2001 IIAB of Arizona

Is your rental property covered when it’s under renovation?

If you’re planning on remodeling, don’t make the mistake of renovating without the proper insurance coverage.

Whether you’re adding a new room, finishing a basement or expanding a deck in the backyard, you should speak with your insurance company to determine if you need to adjust your policy. There are three basic reasons for this:

  1. When you make additions or improvements to your home, you increase its value. If something happens to your home during renovation or after you’ve completed the work, you’ll be covered for the higher amount of your home’s value.
  2. Protection of your financial assets if you or someone else is injured while working on your home. 
  3. If your property is vacant or unoccupied while under renovation, coverage may be restricted or unavailable.

Foremost® has you covered.

Some insurance companies aren’t comfortable covering homes while under renovation. You can count on Foremost to provide the coverage you want while making improvements.

Not sure what your policy provides? Don’t leave yourself vulnerable to financial loss when you’re having home renovations done. Call me to discuss a Dwelling Fire policy from Foremost.

Product availability is based on authority and all products may not be available in all areas.

This does not constitute legal advice. For a complete list of the specific landlord and tenant laws in your state visit http://www.landlordassociation.org/statelaws.html, or for legal advice, speak with a real estate attorney.

ASJ Insurance & Financial Services Inc. offers effective solutions for your insurance needs and offers insurance products from many different companies including Foremost. We can be reached at (877) 275-2201 or visit us online www.asjinsurance.com .

 

Preventing Boat Theft

Boats are easy targets for thieves.  Boat theft costs the insurance industry and customers about $40 million per year. Boats frequently sit in your driveway, at a marina or in a yard unattended and are attractive to professional thieves or people just walking, driving or even boating along.  Thieves that target boats often come by water.  Every year there are thefts of small outboards from marinas with good security.

Often the damage done by thieves trying to get into a boat exceeds the value of items stolen.  Most thefts involve items that can be easily disposed of for money, like stereos, CD players, televisions, tools, dinghies and small outboards.  Thieves rarely steal the marine electronics because they are harder to resell and generally require another matched component to operate. 

So, what can you do to prevent theft of your boat or equipment?  One thing to keep in mind is that most thefts occur when you are away from your vessel—at night, during the week, particularly after a long holiday weekend or during the off-season.  These are the times when you should be more vigilant.

The boating world is a lot like a small rural town where most people leave their doors unlocked.  Most boats are equipped with minimal locks that are easily broken, opened, or bypassed.  The first mistake boat theft victims make is to refuse to believe that it has happened to them.  When a boat is stolen, owners often assume it must have been moved by marina personnel or borrowed by a friend, wasting valuable time.  Time is of the essence when a boat is stolen.  Law enforcement authorities should be notified immediately.  The longer a theft goes unreported, the more difficult it becomes to recover the boat.

Trailerable boats are easy marks for theft.  Many owners do little to lock their trailers.  Anyone with a trailer hitch can easily steal the boat and be gone in seconds.  Trailers should be locked to either your vehicle or a permanent object such as a tree or pole.

The more precautions you take to prevent theft, the better.  Make these simple steps part of your routine.

Locks work.  Thieves are quick operators.  The more time and trouble it takes a thief, the more likely they will be discovered or move to another vessel.  Lock your outboard, sterndrive, trailer, and hatches.  There are special lock nuts for outboards and sterndrives to prevent their theft.  Replace all the locks that come with the boat with security-type locks. Remove easily transportable electronics from your boat when you are going to be away for some time. Alarm systems rarely work well on boats because of their propensity for false alarms and the remote locations of marinas.  People often ignore an audible alarm.  Alarms must alert the marina, an alarm service or you to be effective.

Never leave the original registration on your boat.   Make this part of the equipment you bring to the boat each time you plan to take it out on the water.

Engrave stereos and electronics with your driver’s license number.  This makes them harder to resell and easier to trace. You can prevent personal belongings from “walking off” your vessel by putting your name or the name of your boat on cushions, fishing gear and other loose items in permanent marker. Do not leave your valuables in plain sight.

Keep photographs and videotape of your boat in a safe place at home.  Photos can be particularly helpful in the recovery of a boat. Include with your home records a list of everything normally kept on the vessel including serial numbers, photos, manufacturers, and the boat’s HIN.  All of this will make it easier if you need to file a claim and can help you recover your boat and/or belongings in the event of a theft. 

Do not leave a key aboard.  Thieves know all the hiding places.  If you must, leave keys with the marina. When you are out boating for the day and are going to be away from your boat, take the ignition key with you.

Anything you do to make your boat less attractive to thieves will decrease your chances of becoming a victim.  But, in the event you are a robbed, there are several steps you should take:

1.         Contact the law enforcement authorities immediately.   Provide as much detail as possible about your boat and trailer, including the HIN & VIN, registration numbers, engine and outdrive serial numbers.  It’s a good idea to keep all of these numbers at hand, preferably in your wallet.  If you do not have these numbers with you, get them to the authorities as soon as possible.  The first 24 hours are the most critical for recovery.  Delay is your enemy. 

2.         Be persistent with law enforcement.  Make sure that all your information is entered in the NCIC (National Crime Information Center) system as soon as possible.

3.         It is important that you become involved in the effort to recover your boat.  Contact marinas, gas docks, restaurants, etc. where your boat may put in.  If possible fax or e-mail them a photo, preferably within 24 hours.

At ASJ Insurance & Financial Service Inc.we can help you insure your toys with the right coverage and affordable/competetve premiums. Please call us at 877-275-2201 or visit our website www.asjinsurance.com to request a quote. 

Engine Exhaust Manifolds

Marine engine exhaust manifolds and risers must be inspected and replaced regularly or they can fail and cause catastrophic damage to the power plant. Risers and manifolds are the part of the engine that allows exhaust gases and cooling water to be discharged from the system during operation.

Manifolds and risers are water-jacketed, which means the water chamber is separated from the gas section by a dividing wall. Over time, hot exhaust gases and raw cooling water, especially salt water, corrode the chamber allowing the water to enter the dry side of the part. When this happens, the water can fill the engine, causing all kinds of damage that can put the engine out of commission permanently. The failure often occurs when the engine is running, which means the misdirected water enters the cylinders when the pistons are moving. Because water does not compress, the connecting rods, push rods, and engine block end up distorting and breaking. Sometimes the damage is so severe that the block is not even suitable as a core for rebuilding. To prevent damage of this magnitude, many manufacturers recommend replacing risers every three years and manifolds every five years. Although changing these parts this often may be may be questionable, inspecting them often is not.

One telltale sign of impending failure is rust around the manifold to riser joint. This joint will often leak during operation, because the water passages are partially obstructed and cannot handle the volume of water that is pumped through the engine. Another sign of a failing riser is an engine that overheats. Many boat owners spend a lot of time and money replacing water pumps, exchangers, and thermostats only to find that their engines still overheat. A competent marine repair facility can pressure test manifolds and risers to check for leaks. Visual inspection is also valuable.

If you take good care of your manifolds and risers, you’ll save money, and maybe even your boat, in the long run.

Biking with a passenger

Anyone who has ridden a motorcycle knows that it can be exhilarating and fun. And there are times when a biker may want to travel with a passenger. Riding with a passenger can be a great experience for both the driver and the passenger, but it is important that the proper preparations are made to ensure your safety.

The most important thing to remember when considering riding with a passenger is that both of you must be comfortable. You should be an experienced motorcyclist and comfortable with your skills and your bike before adding a passenger to the mix. If your riding companion is scared or nervous, it can make a big difference in the way they react, which can affect the bike’s handling. The passenger must be able to relax and work with the driver. The passenger should also be alert and act as another set of eyes and ears out on the road. The first step in making a passenger feel comfortable is a prepared driver.

Start by making sure your bike is capable of carrying two people. You may need to adjust your suspension to accommodate the extra weight, so check your owner’s manual before heading out. Be sure you have a seat that can comfortably accommodate two. In addition, talk to your passenger about what their responsibilities are out on the road. Don’t assume they know.

 

Before Riding

  • Protective Gear – Make sure your passenger knows that they need to wear a helmet, jacket, gloves, boots and long pants if they are going to be riding with you. The proper attire can help reduce the risk of injury in the event of an accident.

 

  • Mounting – Explain to your passenger that the rider mounts first, gets the bike pointed in the right direction and has the bike completely under control before the passenger mounts. The passenger should always mount and dismount the bike from the left side by first putting a foot on the peg and then swinging the other leg over the seat. They should try to keep their weight as evenly distributed as possible.

 

  • Feet on the Pegs – Once on the bike, it’s important that the passenger keep both feet on the pegs at all times, unless the driver indicates otherwise. If the rider takes their feet off the pegs, it can throw off the distribution of weight and cause the bike to tip. In some states, the law requires foot pegs for passengers, so make sure you know what the guidelines in your state are before you head out.

 

During the Ride

  • Practice – Let your passenger know that their added weight can cause the bike to handle differently. Find a large parking lot or a straight section of road and take the time to practice braking and stopping so both you and your passenger can get used to the feel of it.

 

  • Braking – Weight distribution will change as the bike comes to a stop. The quicker the braking, the more sudden the change in weight distribution. As you come to a stop, your passenger will automatically lurch forward. To minimize the effects of the shift in weight, make sure your passenger keeps their feet on the foot pegs and holds on to the driver around the waist, at the hips or by the belt. As the driver, you should leave plenty of time for braking to avoid abrupt stops.

 

  • Leaning – Instruct your passenger to lean with the bike while turning or around corners. They should lean gently and avoid sudden movements. The passenger should hold on to the driver and move with the movement of the bike and driver. If your passenger has never ridden a cycle before, you should not take any high-speed turns until they understanding leaning and can do it properly.

 

  • Turning – When turning, it is important that the passenger move with the driver and help maintain the stability of the bike. Again, this is best accomplished by having the passenger hold on to the driver, counterbalance to keep the weight evenly distributed and avoid any abrupt movements.

 

  • Stop Often – Be sure that both you and your passenger have ample opportunity to get off the bike, stretch your legs and enjoy the scenery. It will help keep both of you alert and make he ride more enjoyable.

Riding with a passenger can be safe and fun if you provide these tips to your passenger, talk through their responsibilities and yours, and practice until you’re both comfortable before heading out on the road. If your passenger moves in synch with the bike and the driver, maintains evenly centered weight distribution, holds on to the driver and is relaxed and comfortable, you can have a great time riding. But remember, it all starts with a prepared driver who is confident and in control.

Before heading out on the road, alone or with a companion, you should also make sure you have the right insurance policy to protect you from the unexpected. The companies of the Foremost Insurance Group have been providing specialty insurance programs for over 50 years and they have the experience and expertise to offer a superior motorcycle insurance policy. A Foremost policy offers things like Safety Apparel Coverage, Optional Equipment Coverage, Towing and Roadside Assistance including Trip Interruption Coverage, flexible payment plans and money-saving discounts. Foremost has specially-trained claims representatives that handle only motorcycle and off-road vehicle claims – it’s not just one of the things they do, it’s all they do. We have the experience and expertise to handle claims quickly and fairly.

For more information about a specialized Motorcycle insurance policy from Foremost, call (877) 275-2201 or visit www.asjinsurance.com. Foremost can offer with the Motorcycle program or any of our other specialized programs for off-road vehicles, mobile homes, motor homes, travel trailers, personal watercraft and boats!

Do you really understand your insurance policy?

Most everyone has some type of insurance policy containing the terms below. Familiarize yourself with each section.

 

The common sections of most policies include the following:

 

  • Declarations. The Declarations Page is basically the first page(s) of the policy package. It “declares” who the insured is and what time period the policy covers. It also provides general information including address, description of what’s insured, coverages and limits.
  • Definitions. This section defines certain keywords in an insurance contract. It’s important to read these definitions, because your personal definition of a certain word may be different from the policy’s definition. If you still come across wording you don’t understand, log on to the Insurance Information Institutes site at www2.iii.org/glossary.
  • Coverages. The coverage area describes the specific insurance provided by listing what property is covered and for what perils. Many insurance contracts provide comprehensive coverage, meaning everything is covered unless it’s specifically listed as excluded. Be sure to read this section carefully so you know whether your policy is listing a peril as covered or not covered.
  • Exclusions. The exclusion portion describes what coverage limits exist or how coverage may not apply depending on how the loss occurs.
  • Limits and special limits. This section explains how much the insurer pays for particular losses or types of property. So, while something is covered, it may only be covered for a specific dollar amount or for a limited percentage of the entire loss.
  • Conditions. This area basically lists the ground rules of your policy. It tells you what the insurer’s responsibilities are, and what your responsibilities are as the customer. This includes information on how to cancel your policy and subrogation.
  • Endorsements. Endorsements are optional coverages you can add to a standard policy.

 

Foremost® offers policies to provide the coverages you want.

Not everybody insures vacant, landlord and rental property, but Foremost does. Foremost provides specialized coverage with a program that can be easily customized.

Still not sure what your policy provides? Call me @ 1-877-275-2201 or visit www.asjinsurance.com to discuss your coverage and find out how to get a flexible package

Product availability is based on authority and all products may not be available in all areas.

 

This does not constitute legal advice. For a complete list of the specific landlord and tenant laws in your state visit http://www.landlordassociation.org/statelaws.html, or for legal advice, speak with a real estate attorney.

Personal watercraft Have fun, but put safety first (PWC)

Personal watercraft have become more and more popular on the waterways. And no wonder. With the adrenaline rush of instant acceleration, skimming over the water and waves at brisk speeds, coupled with the ability to turn like any other watercraft, personal watercraft can be a blast. There are stand-up and sit-down models with various engine sizes ranging from 550 c.c. to 1494 c.c., which can generate speeds up to 70 m.p.h.

 

While riding a personal watercraft is an exhilarating experience, the operator and passenger have to have fun safely.  Personal watercraft are involved in a lot of accidents because of their speed. It’s no surprise that in the event of the accident, injuries can be catastrophic because you’re completely exposed. There’s no cabin to protect you.

 So before you power up, consider these DO’S and DON’TS:

• Before you buy, remember that there is a learning curve. Start with a lower powered personal watercraft and progress to the more powerful models as your ability and experience increases.

• Ask your personal watercraft retailer to provide you with an instructional how-to video.

• Learn safe operation from an experienced and safe operator.

• Give the personal watercraft some throttle and lean in the direction of your turns, otherwise it is very likely you will lose control and fall.

• Don’t jump wakes, you may jeopardize yourself and other boaters.

• Wear personal flotation devices, and provide them for passengers.

• Do give right of way to sailboats, commercial and fishing vessels.

• Give wide berth, stay aware of other watercraft, be courteous, and above all, be safe.

 To learn more about personal watercraft safety, contact the U.S.Coast Guard, local marine patrol, state boating authorities, U.S. Power Squadron, or the American Red Cross. You may get additional information by calling the Personal Watercraft Industry Association at 1-407-629-4941.

ASJ Insurance & Financial Services Inc. can help you protect your water toys. We offer insurance through many companies and help you compare and save with one phone call. You can reach us at 877-275-2201 or www.asjinsurance.com

Protecting Your Motorcycle Against Theft

According to National Insurance Crime Bureau statistics, motor vehicle thefts are on the rise, and among the vehicles being targeted are motorcycles. It’s one thing to have your property stolen, but if it is something you love and have become attached to, that is a different story altogether. And only 25% to 30% of motorcycles are recovered after theft. Thieves steal motorcycles to resell the whole bike or to strip it down and sell the parts. The fact that motorcycles are small and relatively easy to move makes them particularly vulnerable to theft. Smart thieves will find a way to steal your bike if they really want it, but there are things you can do to protect your investment and make your motorcycle less appealing to a thief. You can make it bothersome for them to try to steal it. There are several relatively simple and inexpensive ways to help protect your motorcycle from ending up in the back of a thief’s van. One of these methods alone might not be enough to deter a determined thief, but using more than one – or better yet, several – of these methods just might make the difference in whether a thief stops at your house or keeps going. Keep Your Bike Out of Sight The best bet is to keep your motorcycle in a locked garage. For some people, this might not be an option. If you have to keep your bike parked outside, start by keeping it in a well-lit area and out of direct view from the street. It should be covered with a plain cover that is free of logos or brand names. If the thief can’t tell by the cover what type of motorcycle is underneath, they may be more inclined to pass it over. In addition, you should keep the cover locked to the bike with a cable lock. However, this won’t prevent a thief from picking up the whole bike and taking it, cover and all. That’s why it is important to use this in conjunction with other security measures. Lock Your Bike to a Stationary Object Even if you have your bike in a locked garage when not in use, it is a good idea to also have it locked to something immovable. One method would be to cement a steel eye to the floor to put a chain or cable through. When using a chain or cable lock, be sure to loop it through the frame or another stable part of the bike. When you’re out riding and leave your bike parked outside, always use your steering lock – this is your first step of defense. In addition, you should use two or more locks of different types. If possible, park your bike where you can see it and check on it periodically. Make Good Lock Choices When choosing locks, it’s not a good idea to spare expense. Choose good locks. Types of locks include serpentine link locks, u-locks and chains. Record key numbers and then file them off the locks if they are stamped on them. Locks attached to your bike should not touch the ground. If a lock is lying on the ground, it is easier for a thief to use a hard item to pound the lock until it breaks. Even if you keep your motorcycle in a locked garage, it’s always a good idea to look around to make sure you’re not providing a thief with the tools to dismantle your locks. There are usually a lot of tools in a garage and with time and determination, a thief will be able to remove the locks from your bike. Other Devices There are several new mechanical devices that can help ensure you’ll find your bike where you left it. Many dealers are now selling motorcycles with alarms as a standard feature, as well as similar anti-theft devices. An alarm alone is not an effective deterrent, but in combination with other methods, a wailing alarm is liable to make a thief think twice. Even if your motorcycle isn’t equipped with an alarm, you can get stickers that say that there is an alarm installed and put them on your bike. You can also purchase anti-prying devices, pick-resistant mechanisms or you can install one or more kill switches to make the motorcycle impossible to start. Common Sense The best way to protect your motorcycle from theft is to use common sense. Don’t leave the keys in the ignition or anywhere within close proximity to the bike. Make sure that you choose the safest places possible to park or store your bike. And don’t lock your bike down to something that can easily be moved or broken and assume it’s still going to be there when you come back. Insure Your Investment In addition to being confident that you are doing what you can to protect your motorcycle, it’s important that you have the right insurance. You need an insurance policy that offers the coverage’s that are important to your specific bike and lifestyle. If you think your motorcycle is adequately covered when you add it through an endorsement on your homeowner’s policy, chances are you’re mistaken…a lesson that you don’t want to learn first-hand come claim time. Important things to look for when choosing a specialized insurance policy for your motorcycle are things like: • Safety Apparel Coverage to protect your investment in helmets, leathers, gloves and any other clothing designed to minimize injury in the event of an accident. • Optional Equipment Coverage for chroming, custom painting, side cars or anything else that was not included as standard by the manufacturer. • Optional Towing and Roadside Assistance in case your bike breaks down and can’t be ridden when you’re away from home or you run out of gas, get a flat or have mechanical issues. • Optional Replacement Cost Coverage on bikes purchased new and insured within 30 days. • Flexible payment plans so you can choose the plan that best fits your budget. • Deductible and coverage limit options. • Premium discounts. The Foremost Insurance Group of companies provides all of these important coverage’s and more in our specialized Motorcycle insurance program. Foremost has been in the specialty insurance business for over 50 years and we understand that you want to protect your investment. Foremost has specially-trained claims representatives that handle only motorcycle and off-road vehicle claims – it’s not just one of the things they do, it’s all they do. We have the experience and expertise to handle claims quickly and fairly. For more information about a specialized Motorcycle insurance policy from Foremost, you can call 1-877-275-2201 Or visit www.asjinsurance.com and see what Foremost can offer through the Motorcycle program or any of our other specialized programs for off-road vehicles, mobile homes, motor homes, travel trailers, personal watercraft and boats!