Denvers Insurance Blog- Mark A. Schneider

I am looking to work with some real estate agents in Metro Denver, on helping your clients getting there house insured. I am an independent agent and broker, and I offer the following companies, that I would be able to get your client into.

-American Modern

-Chubb

-Foremost

-Met Life P & C

-Pacific Specialty

-Travelers

-The Hartford

-Safeco

-State Auto

Please if your looking to work with an Independent agent and broker, please leave a comment, and I will contact you with info about my insurance agency. I GUARANTEE SAME DAY QUOTES! I GUARANTEE GREAT SERVICE FOR YOUR CLIENT! If you give me the opportunity, I will not disappoint you.

Thank you!

Mark- Owner of Denvers Insurance | Partners With The Ahbe Group

http://denversinsurance.com

Have you ever noticed how "shocked" you are when you make a phone call to a business and an actual "live person" answers the phone?  We live in such a digital world and are so accustomed to voice mail, texting, face book and blogs that to actually hear a live voice on the phone is stunning.  The phone is probably the most important tool of any business.  Other than e-mails, it is the only connection we have with a business.  When that phone is not answered or when voice mail has so many choices we can't figure out which one to use, a "live" voice is refreshing.  We, at Denvers Insurance, answer our phone promptly and "in person".  So maybe we are doing the opposite from everyone else but it is bringing results.

Having a pleasant phone voice is exciting to the person on the other end.  If you sound excited about the products you are promoting and selling, that excitement will carry over the phone to the customer.  But the most important thing, answer the phone, don't avoid it.  Avoidance is what is hurting business today....why not talk to the customer and let them know you want their business?  Let that phone "do the talking for you" by just answering it.

Karen W. Schneider

Denvers Insurance, LLC

Customer Service Representative

The general consumer needs to learn to trust their independent insurance agent.  The insurance agent is knowledgeable and has thoroughly researched and studied the business, therefore, he or she is  articulate in assisting you with your most in-depth needs.  There has to be a level of trust in allowing your insurance agent to obtain your information in order to offer you the best quotes and prices available.  Let your insurance agent "do the walking for you".  Let your agent use his or her time in finding the best possible insurance company and pricing for you,  and let that person actively research and look into all of the necessary guidelines and laws in insuring you properly and completely.  

With work, school, and family schedules,  most people don't have time, even though they think they do, to research the insurance market properly.  That is what the independent insurance agent is for........so let your insurance agent do the work for you.

Karen W. Schneider

CSR

Denvers Insurance, LLC

Recently I went throught the process of filing a claim at a rental property from last year's big hail storm that hit North West Colorado. We went thorugh the whole process of calling a roofer to take a look at it, and also calling the insurance company to file a claim. When the claim was filed they, of course, sent out the adjuster, she took a look at and found the hail damage to the roof. Our roof of course is an old school wood shake roof that was put on in the early 90's. So when it was all said and done the insurance company ended up buying the roof. Now keep in mind that it is a wood shake roof, that is almost a total of 3200 sq ft. A total replacement cost of $20,000 dollars! Wow, right? 

Then this speculation was realized by my relative being that if the roof was only $14,000 dollars to replace, because we would use an Asphalt Shingle, we would be able to walk away with the other $6,000 dollars, right? Well that is a really good question. Myself being a licensed insurance agent already knew the answer, but this took some explaining.

What this always come back to is the law.  What its states is called indeminity, this is the wikipedia definition of Indeminity: An indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnitor (A) may or may not be responsible for the loss suffered by the indemnitee (B). Forms of indemnity include cash payments, repairs, replacement, and reinstatement. And again thank you Wikipedia. But what it really means is insurance law and this is, there should be no gain and no loss. This means we get the roof, but we dont get to profit from the insurance company. So to answer my above question, no we wouldn't be able to keep the extra $6,000 dollars.  

This also brings up the other side in which they have to give us a roof equal to a wood shake, and wood shakes are expensive and due to code no longer allowed in the written city code.  So it has to be something comparable, such as a tile roof. That's is the way it works,  its a double edge sword. 

So all and all, you can't make money off your insurance company. 

i have recently come across several people who I consider to be "married to their insurance company".  What I mean by that is these people closed me out before I could start.  I wanted the opportunity to re-quote or quote their insurance on their autos, homes, motorcycles etc. but instead wasn't even given the chance.  i was told they had been with their insurance companies for many years and therefore, they were totally satisfied.  

Yes, these people had been with their insurance companies for many years but does that necessarily mean they are getting the "best deal" or that they are getting the best service.  People need to constantly keep an OPEN MIND when it comes to buying insurance and keeping insurance.  If one is smart, he or she constantly researches the market for the best rates and values.  When someone is totally "married" to their insurance company, they are not willing to change or to investigate the possibility that they may be paying more than they have to.  They could save themselves a great deal of money by remaining "open minded" to the opportunities out there.

Being "married to an insurance company" is not always the right thing to do, even though it may seem to be.  Always keep your mind open to new ideas, new companies, and new and better deals.  In this economy it is only smart to research for the best possible rates and pricing on whatever you need.  Don't become married to an insurance company just because you have been with them for a long time.

Article by Karen W. Schneider, CSR, Denvers Insurance

When you go out and shop around for insurance, the one mandatory thing you have to carry is auto insurance liability. This varies from state to state, but in Colorado the state requirement is 25/50/15. To articulate,  if you are "at-fault" in an accident, that means the insurance company will pay out a maximum of $25,000 dollars per person and $50,000 dollars total for the whole accident. The last part is $15,000 dollars in property damage. These numbers seem outlandish, but considering it would buy a couple of hours in the hospital, it doesn't seem unreasonable at all.  The reason the limits are so low, is to quote "make auto insurance affordable". You also might think something is better than nothing. It is proved the cheaper you make auto insurance, more people will buy the mandatory auto insurance.

Let me take time to break down the different limits that you can buy here in Colorado as well as a national level., The only thing that really changes national is the state limits. For more info on state minimum requirements for insurance please visit http://www.iihs.org/

1. 25/50/15
2. 50/100/25
3. 100/300/50
4. 250/500/100
5. 300/300 combined single limit.
6. 500/500/500 Combined single limit.
   
7. 1,000,000 combined single limit.

So how much liability should you carry?  This all depends on your state, how much money you have in the bank, how many assets you have, and if you own properties.  For example, you are college student who owns a 1999 Ford Escort, who is living off of student loans, and you are concerned about where you next meal is coming from.  At this time in point, in this person's lifetime, they have no assets they have to protect.  So it would be recommended to this college student a 100/300 policy, but the most idealistically and affordable will be state minimum.

Another example would be a business owner who owns a large meat packing company and also owns four investment properties, owns his house, has a set of collectible cars, and two luxury vehicles that he uses for commuting purposes.  This person might also have large positions in stocks and bonds, and has a couple of large savings accounts.  This individual definitely needs to buy an insurance policy that has a $500,000 combined single limit.  This individual might consider at least obtaining a $1,000,000 umbrella in addition to his liability insurance. 

Why should the student carry state minimum and the business owner so much.  It is obvious, the student has nothing to lose while the business owner has a lot to lose.  If the business owner kills the family member of someone else while driving, he has to protect his assets.  If the business owner doesn't carry enough auto insurance, the other party will immediately go after his assets. So make sure you carrying adequate coverage.

Today in these wonderful times, we forget about the little things. Little things such as optional coverages that can be very important to an auto insurance policy. Currently in Colorado we are an at-fault state. Which means the person at-fault pays for all damage that can occurs when they are at fault in accident. So who pays for there medical expense? Well its there responsibility. That means if your at-fault in an accident, you are responsible for your medical expenses. The insurance company will only pay for their medical expenses if they have pulled out an optional coverage called Medical payments. You can purchase medical payments in increments of 5,000, 10,000 25,000 and some company's offer up to 100,000.

Here are examples when you want Medical Payments-

1. You have no health insurance.
2. You have health insurance with a high deductible.
3. If your transporting people, such as if you are a taxi or shuttle bus company.
   
4. If you are a soccer mom, and you drive kids to and from practice.
5. If you worry about friends or family while driving them in your car.

Medical Payments is a very inexpensive option on an auto insurance policy. As of matter of fact its usually cheaper then your liability or collision or comprehensive that you already have.

So my recommendation is to clear out any speculation by carrying some sort of Medical Pay on your auto insurance.

Today when you go shop for your auto insurance, one very important factor is UM/UIM or uninsured motorists and under-insured motorists. Why is this important? Well, putting it simple it protects you against people who drive and don't have auto insurance.

In Colorado in 2007 when the economy was up, this figure was at 24%. That means almost 1 out of every 4 people drove without insurance. This is a very high number, considering Massachusetts only 1% of drivers drove without insurance. In 2010, They estimate that this number could reach 18% nationally. This is the highest percent in a long time.  But with the way the economy in a recession, this number could get higher. One thing people do when they struggle to pay their bills, is they cut auto insurance out of their budget and not pay it at all.

There's also a lot of people out there that just carry the minimum liability limits which in Colorado is 25/50/15. How that breaks down is 25,000 dollars per person, 50,000 dollars per accident maximum. This covers medical expense, lost wages and pain and suffering. Finally 15,000 dollars maximum for property damage. As we all know this is a drop in the bucket, especially with how health care is so expensive today. UM/UIM coverage is very inexpensive. As a matter of fact with auto insurance policy's in general, collision is usually the most expensive coverage.

Also keep in mind that this coverage protects you against someone who does carry lower limits. In Texas in 2007, just around 75% off all drivers carried the state minimum required by law. So if someone hits you with underinsured limits, it could be very bad. 100/300 is considered to be standard limits. This means you are not underinsured. I would at least recommend 250/500 or even 500 single combined limit. I would also consider buying additional UM/UIM in your umbrella.

This coverage is very important and I think you should carry as much as you can on an auto policy. Lets think about if someone came along tomorrow and killed an important family member. This member is a father of two with a loving wife. The driver of the car was drunk who hit the father. Has no insurance, or even is uninsured only carrying the state minimum. That's only 25,000 dollars! Then most likely the driver of this car is an alcoholic, that is dead broke and is insolvent. Who is going to pay for the fathers two kids and wife? They have to pay for the college, the mortgage, the bills, grocery's and etc, for the next 15 years.

I know alot of people Say they have health insurance, and don't need UM/UIM, but what happens when your killed or even worse paralyzed? Health insurance will only go so far. My recommendations are to carry as much UM/UIM as you can and what is the most affordable in your budget. With some companies, you can by UM/UIM in your umbrella policy, like mentioned above. With one of my companies that specializes in umbrella's I can offer a million extra dollars in UM/UIM. That sounds unrealistic until the story about the father getting killed.

Again please always keep Denvers Insurance in mind for all your insurance needs.

http://denversinsurance.com

I have came to my attention that it would be good to mention some of the discounts available out there. These are really good ways to save on your insurance!

Multi-line Discount: This is when you have multiple lines of insurance with a company. For example your car and home.

Multi Driver Discount: Not all companies offer this and this doesn't apply to homeowners.

Homeowners Discount: This is when you own a property in your name. Usually its about 10%. This discount is for auto insurance.

Safe Driver, Accident Free: When you have no accidents, and no tickets or very few.

Paperless: This is when you elect to get everything sent via email.

Prior Insurance Discount: Yes you do receive a discount for this! You usually have to have 6 months prior insurance. You even get a discount on homeowners for having continuous insurance.

Prior Limits discount: If you carry 100/300 or higher on liability, you get a discount for not being considered under insured. This is for auto insurance only.

Paid in full discount: Insurance companies will give you a PIF discount because they receive there money in a lump sum and this eliminates admin costs for billing. You will find a PIF discount on almost every policy.

EFT Discount: Electronic funds transfer discount. This is when you elect to pay your monthly bill by automatic withdraw from a checking account.

Fire Extinguisher, dead bolt, smoke detector discount: If you have these 3 itmes in your house you will receive about a 10& discount.

Fire alarm, Sprinklers discount. If you have any of these safety measures built in, you will receive a nice discount.

Burglar alarm: This discount isn't as quite as good as having sprinklers in your house, but still provides a nice discount.

Hail resistive roof discount: Insurance companies will usually give any where from a 20 to 25 percent discount for having on of these roofs. A tile roof would be considered hail resistive.

Credit Score: Your credit is a very important factor these days. I have seen policy's receive huge discounts for good credit. Any where from 10 to 30 percent!

Driver Age 25 or older: You will see a huge savings in premium by being 25 or older.

Advanced Quote Discount: Some of my companies offer an advanced quote and upload discount for policy's. So if you plan ahead and upload your policy, you will save money.

There are probably a lot more out there then I mentioned in this blog. But these are the most common.
Again Keep Denver's Insurance in mind for all you insurance needs!

Good Student Discount: If you maintain a 3.0 or higher, only good till you are 21.

http://denversinsurance.com

Lately we have had a lot of government spending and bailouts... Do we have a government bubble in the economy??? It may be so. The problem with government spending and stimulus in a capitalist market is, your interfering with the free market recovery. In other words a double dip recession. Yes that does sound scary but possible. So what happens when the tax credit for new house purchases and stimulus either stops or runs out??? Lets think back to the "cash for clunkers".  Ford said last quarter they posted a profit from the cash for clunkers, but they said that sales will not be as good anymore. They said that the whole reason they posted a profit was because of this program.. Sounds good that they did but what happens now? They are back to square one. The government thought it would pick up car sales but it didn't, but rack up debt to our enormous deficit and car sales are back to what they are before. I think the same thing will happen to Home sales.  If you look back all it did for the car makers was cause a double dip in the recovery to profitability. And the same thing will happen to housing.

Overall my prospective is you have to let the free market work. I do believe in regulation of the markets though, to protect the uneducated consumer.

It was reported the other day on Fox Business that over 300 billion dollars has disappeared from the bailouts and they have no idea where it is.... Who said the government can run things well?

Mark