North Carolina Home Insurance From Marshall Insurance

North Carolina Homeowners Insurance:

North Carolina's online resource for NC Home Insurance. Whether you want to find about the standard NC Homeowners Insurance Forms, the standard NC Homeowners Insurance Coverages, the optional NC Homeowners Insurance Endorsements, or simply obtain a NC Home Insurance Quote.. you've come to the right place!

North Carolina Homeowner's Insurance is one of the most important types of insurance policies available. More than likely, your home is the largest investment you will ever make in your life. Finding and obtaining the right NC Homeowners Insurance Coverage is important. The fact is, you have numerous choices when deciding exactly how to protect your home. If you don't own a home, you still need some of the same protections as those who do. For those of you who rent, what would happen if all of your personal belongings were lost in a fire? This section of Marshall Insurance will help both the homeowner and the renter decide which NC Homeowners Insurance will best protect their respective investments.  We will detail the common "Homeowner Forms" available in North Carolina as well as some of the additional endorsements available.

View the Homeowners Form Chart Here

NC Child Passenger Safety Laws

Ages/Positions Covered:
» Children less than age 16 in front or back seats are covered under the NC Child Passenger Safety law.
» Drivers and passengers 16 years old and older are covered by the NC Seat Belt Law.
Vehicles Covered:
» All vehicles required by federal standards to have seat belts are covered. All passenger cars manufactured after 1967 are required by federal regulations to have seat belts and are covered by the NC Child Passenger Safety Law. Vans, pickup trucks and sport utility vehicles manufactured after 1971 are required to be equipped with belts and are also covered by the NC Child Passenger Safety Law. There are no exemptions for vehicles registered in other states or vehicles driven by out-of-state drivers.

Restraint Required:
» A properly used child restraint device (CRD) is required if the child is less than 8 years old AND weighs less than 80 pounds. Most parents and other care givers will be able to comply by using belt-positioning booster seats for children between 40 and 80 pounds. The child must be within the weight range for the child restraint/booster seat and it must meet Federal standards in effect at time of manufacture.
» Children may be secured in a properly fitted seat belt at age 8 (regardless of weight) OR at 80 pounds (regardless of age) - whichever comes first. Placing the shoulder belt under a child’s (or adult’s) arm or behind the back is both dangerous and illegal.
» If no seating position equipped with a lap and shoulder belt to properly secure a belt positioning booster seat is available, a child who weighs at least 40 pounds may be restrained by a properly fitted lap belt only. WARNING: Belt-positioning booster seats can only be used with lap and shoulder combination safety belts. Belt-positioning booster seats must NEVER be used with just a lap belt.
Refer to "What are Options for Children over 40 pounds? in the "Choosing and Using" section for additional information on booster seats and safer alternatives for lap-belt-only seating positions.

Position in Vehicle:
» The CRD must be installed in the rear seat if the child is less than age 5 and 40 lbs.and if the vehicle has a passenger side air bag and a rear seat.
» Front seat installation is allowed if the CRD is designed for use with air bags.

Exemptions*:
» Vehicles not required to have belts (such as cars made before 1968 and pickup trucks, SUVs, and vans made before 1972, and large buses)
» Ambulances and other emergency vehicles
» If all seating positions with belts are occupied

Responsibility/Penalties:
» Driver responsible for all children less than sixteen
» Penalty not to exceed $25
» Full court costs apply ($188 as of August, 2011)
» Two (2) driver license points
» No insurance points
» No conviction if the child is less than 8 years old and proof is presented at trial that an appropriate CRD/Booster seat has been acquired for a vehicle in which the child is normally transported since the violation.
Source: buckleupnc.org

Charlotte NC Homeowners Rates Set to Rise 8.4% in 2013

NC State regulators and homeowners insurance companies reached a settlement that will allow overall statewide homeowners rates to increase an average of 7 percent beginning July 1, 2013. 

“It was better to settle at where we did than to take the risk that a hearing would have led to much different and costly results,” said Insurance Commissioner Wayne Goodwin.

Under the settlement, rates will increase by as little as 1 percent in some areas of the state, and as much as 19.8 percent in some beachfront areas of coastal counties. The industry had requested an average rate increase of 17.7 percent back in October that ranged from a high of 30 percent in parts of coastal counties to a low of 1.2 percent. 

Under the settlement announced Tuesday, rates in Durham and Raleigh will increase 2.8 percent, well below the 11.8 percent requested by the industry. Rates in Charlotte will increase 8.4 percent, just below the 8.5 percent filed in the rate request.

The largest rate increase – 19.8 percent – will be in the beach areas of Brunswick, Carteret, New Hanover, Onslow and Pender counties. The beach areas of Currituck, Dare and Hyde counties also will see an increase of 17 percent. The areas farther inland in those coastal counties will see much smaller increases.

The settlement eliminates the need for a June hearing where the companies and Insurance Department staffers were scheduled to present arguments for and against the industry's October increase request.   Read more here

It's time to Spring Forward NC!

Don't forget to change your batteries in your smoke detectors!

Marshall Insurance 2013 Referral Program

Who will be the next winner of $100 CASH in the Marshall Insurance Referral Round Up? 

Refer your friends and family to get an insurance quote at our agency and receive a FREE pizza and a chance to win $100 cash!

 

 

 

 

Should You Make a Claim on Your NC Homeowner’s Insurance?

In the wake of one of the worst storms in centuries, many homeowners may be shocked to learn filing a claim on their insurance may actually hurt them over time.

Paying for the repairs out of pocket should be weighed against filing a claim. Too many claims in one year will send a red flag to your insurance company causing them concern and possibly canceling your policy. 

 

Every time a claim is made or even inquired about it goes into an industry database called Comprehensive Loss Underwriting Exchange, or CLUE. This information is available to most insurance companies, making it harder for the consumer to obtain insurance from another company after being dropped.

Under federal law, you can get one free copy of your report every 12 months at ChoiceTrust. You can also look at claims made on specific properties. If you are considering purchasing a home, you should check its history. For a fee, you can obtain a“Home Seller’s Disclosure Report” detailing the insurance loss history of the home you are considering. Knowing this information before your purchase can help you decide if you are making an informed decision. Too many claims on a property, can affect the rates of your homeowner’s insurance even if the claims aren’t yours.

A Word about Adjusters

You should receive the same claims adjustment whether you use an independent or the insurance company’s claims adjuster. The adjuster is a licensed professional who is trained to find the source of damage. They report to the insurance company their findings and if the claim is legitimate. If you do not agree, you can dispute your claim with your insurance company.

 

At Marshall Insurance, we are here to help you with your insurance needs. As a long standing independent insurance agency, we are committed to helping our clients in not only finding the best rates but helping in times of need.

10 Tips to Prevent Chimney Fires in North Carolina

This is the time of year when the nip of Old Jack Frost has many of us imagining a cozy night snuggled up in front of the fire. Wood burning fireplaces can feel like a luxury in the winter providing additional warmth and heat in the home. What most of us don’t think about is the possibility of a chimney fire. 

By following a few simple safety tips, you can enjoy your next fire without the fear of disaster.
 

1. Have your wood stove or chimney inspected by a certified chimney specialist each year and check monthly for damage or obstructions.

2. Never burn trash, paper, green wood or Christmas trees.

3. Clear the area around the hearth of debris, decorations and flammable materials. Combustible material too close to the fireplace or a wood stove can easily catch fire.

4. Keep chimneys clear and capped. Make sure tree branches and leaves are at least 15 feet away from the top of the chimney. Contagious flames or sparks can jump from the fire source, quickly igniting other close objects. Installing a chimney cap can help prevent debris and animals from blocking the opening.

5. Use a fireplace screen heavy enough to stop rolling logs and big enough to cover the entire opening of the fireplace to catch flying sparks.

6. Close the damper and doors tightly when you are done. A fire may appear completely dead, but a midnight draft can reignite embers and a slight breeze can blow them into your living room.

7. Store cooled ashes in a tightly sealed metal container outside the home.

8. Install and test smoke and carbon monoxide alarms and replace batteries once a year.

9. Make sure everyone in the family respects the fire. Remind everyone not to get too close and to move carefully when in the vicinity. A fireplace screen to establish a safe perimeter is a good idea if you have small children or pets.

10. Have an escape plan in place in case of fire and review it regularly with your family members.

If you do have a chimney fire, close the damper and doors tightly if possible. Then leave the house and call 911. With the right home maintenance practices you can avoid chimney fires and enjoy the cozy, ambiance of your fireplace on cold mountain nights. We are available to answer any questions you have regarding coverage and your homeowners policy.

>>Find a Certified Chimney Sweep in Your Area:  The National Chimney Sweep Guild &
The Chimney Safety Institute of America

 Understanding NC Business Insurance

The success of any business depends on hard work and ingenuity. Business insurance ensures that all the effort and money you have invested in your business is covered in case a disaster strikes. In general, businesses need to purchase at least the following four types of insurance:

• Property insurance compensates you if the property you use in your business is lost or damaged by common perils such as fire or theft. Property insurance covers not just a building or structure but also what insurers call business personal property.
• Liability insurance protects you in the event that someone claims that your business caused him or her harm. Your liability insurance pays damages to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits, as well as legal fees. It also covers the medical bills of any people injured by your business.
• Business vehicle insurance provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits. Depending on what kind of coverage you buy, the insurance may pay to repair or replace your vehicle because of damage resulting from accidents, theft, flooding and other events.
• Workers compensation insurance or workers comp, as this coverage is generally called, pays for medical care and replaces a portion of lost wages for an employee who is injured in the course of employment, regardless of who was at fault for the injury.

Other Types of Policies You May Need

In addition to the basic coverages highlighted above, there are various other policies needed by some businesses, including the following:

• Business catastrophe liability or umbrella policies provide coverage over and above your other liability coverages. It is designed to protect against unusually high losses. For the typical business, the umbrella policy would provide protection over and above general liability and auto liability policies.
• Specialized liability insurance policies are designed to meet specific needs of individual businesses specialized for liability policies needed by some businesses. They include Errors and Omissions Insurance (E&O)/Professional Liability Insurance, Employment Practices Liability Insurance (EPLI) and Directors and Officers Liability Insurance (D&O).
• Terrorism insurance is offered to owners of commercial property as mandated by the Terrorism Risk Insurance Act, enacted by Congress in 2002. Insurance losses attributed to terrorist acts under these commercial policies are insured by private insurers and reinsured by the federal government.

To learn about the details on the specifics of your business policy or to inquire about what type of coverage is right for you, contact us.

Charlotte NC Personal Jewelry Insurance

Ah, Valentine’s Day is near, and love is in the air. Well, love and a few other things, such as chocolates, romantic dinners, candy hearts that say “Be Mine” - and, of course, jewelry. It’s exciting to receive jewelry from a loved one — or to give it as a gift. Not to mention romantic. But if you’re lucky enough to have some new jewelry in your North Carolina home this Valentine’s Day, you should take a few minutes to think about something you probably don’t find exciting or romantic: insurance.   Don’t know where to turn?  Don’t worry.

At Marshall Insurance, we think it is exciting to help our customers protect what’s most important to them — so we’re ready to help and can answer all of your questions. Things to consider when insuring jewelry: You may need to purchase additional coverage. Your homeowners policy covers valuable items such as jewelry only up to set amounts. If the cost of replacing your jewelry exceeds that limit, you will want to purchase scheduled personal property coverage.

You can check your policy or call us at 704-684-0082. You might want to reconsider your deductible amounts. As always, this impacts your policy premium. It’s a good idea to take a look at your deductibles whenever you make a change to your policy.

Do you need an appraisal?  You may need to have an independent appraisal if the insurance company requires it or if you don’t know the value of your jewelry. Each item should be listed with a description and value on paper.

What kind of coverage is offered?  You’ll want to determine if items are covered no matter where they are, whether they’re in North Carolina, or on an international trip, and if the policy offers full replacement cost. You also should ask if you will be required to replace your jewelry if lost or stolen, or if you can simply keep the cash settlement. Pictures can be helpful.   Lost or stolen pieces of jewelry sometimes can be recreated if the jeweler has a good photograph to work from. Also a picture of a receipt is always good for any new purchases. Is the value of your jewelry mainly sentimental? Is an item irreplaceable? If the answer to either of these questions is “yes,” you might consider foregoing insurance. But please, talk to us before making that decision. That’s what we’re here for.

Of course, it’s important to store your jewelry securely when it’s not in use; a safe in your home or a safe-deposit box is best. We want your jewelry to be replaced if it’s lost or stolen, but we’d rather your sentimental and valuable pieces stay with you and your family for years to come. Here’s hoping your 2013 Valentine’s Day is full of fun and romance. And if there’s no jewelry involved, well, there’s always next year!

Contact Us!   For further questions and assistance, please contact Marshall Insurance at 704-684-0082, e-mail gary@marshallins.net or fill out our contact form.

Recognizing Evolving Insurance Needs in Matthews, NC

Over the years, your life is going to go through many changes and your financial situation will evolve as a result. Some of these will be changes that you make, and others will be those that the world thrust upon you. Whether the changes come from within or without, you need to respond by changing the coverage options and limits provided by your insurance policies.

While every individual must recognize the specific reasons for evolving insurance needs in their own lives, some common catalysts include:

• Inflation
  • Inflation doesn’t just impact how far your dollars reach; it also impacts how far your insurance benefits can stretch. As inflation increases prices around you, it can negatively affect your auto and home limits as well as your life insurance death benefit. It also impacts the effectiveness of your disability and long-term care benefits, as well.
• Savings balance fluctuations
  • The amount of money you have in your savings account could change the amount of insurance you want to have. While a large savings account might make you feel secure with high deductible insurance policies, changes in the market could mean that you need to switch to lower deductible plans. Your savings account balance may also impact how long a waiting period you choose for your disability and long-term care policies. The goal of insurance is to insulate your savings from the risks that you and your assets face each day. Adjusting your insurance policies over the years helps to aid this process.
• Changing asset values
  • Your assets do not generally have a static value. Some don’t even have a depreciating value. Certain items, like homes, jewelry, art, and antiques have values that can increase dramatically in a short period of time. This increase must be answered by the evolution of your home and auto insurance policy limits.
• Increases in income
  • When your income goes up, your standard of living tends to follow. Not only will this affect the type of assets you own, as well as their replacement and actual cash values, but it will also create a new lifestyle for your family to become adjusted to. Your home, life and auto insurance policies may all need a facelift as a result.

These are just a few of the examples of your evolving insurance needs. To discuss more ways that your insurance policies might be becoming dangerously dated, give us a call. We can go through your entire portfolio and make sure we get your coverage up to speed.

It Pays to Bundle Your North Carolina Insurance

National Insurance Companies are beginning to ‘strongly encourage’ North Carolina customers to bundle their insurance needs, or face the possibility that they may be dropped. Most insurance companies are no longer writing just homeowners policies in North Carolina. To entice NC homeowners into purchasing policies, rates have been decreasing for years.

The losses suffered by insurance companies for these discounts has hit an all time high. To combat the losses, insurance companies are increasing their rates or getting rid of discounts. Even though there is that possibility that bundling may be a requirement in the future, there are many reasons it pays to do it.

1. Cost savings. Often you will find reduced premiums when you bundle, up to 30% for most people. Insurance companies offer a discounted rate for automobile insurance when you allow them to insure your home.

2. Efficient. You will only have to deal with one insurance company and one independent Agent. Having one independent Agent handle all of your needs is efficient.

3. Better protection and coverage. One independent Agent can make sure all of your assets are well protected. An informed Agent will be able to help you properly insure your home and automobiles.

4. Strength in numbers. Having bundled insurance will allow one independent Agent to help you if several of your assets are damaged in one incident.

5. Personal touch and understanding. Having a personal relationship with your independent Agent makes a huge difference in service. When you have a need, won’t you prefer to speak to someone who knows you and understands all of your assets? Bundling your insurance needs is easy and practical.

Contact us today at 704-684-0082 for help bundling all of your insurance needs or complete our online quote forms.

North Carolina General Liability Insurance

Does your business have enough liability coverage?  Can your business ever have too much?

It’s true—today, even the smallest of mishaps can result in large lawsuits. That's why all of us at Marshall Insurance take your protection seriously.

General liability insurance, along with property and worker's compensation insurance, is a crucial tool for most businesses. Liability insurance specifically protects the assets of a business when it is sued for something it may have – or have not – done to cause personal injury or property damage.
NC general liability insurance coverage addresses accidents stemming from on-site accidents, as well as any injuries or damages incurred as a result of using goods or services sold on-premises.

In addition to the financial limits of the policy, it coverage can be designed to cover supplemental payments for attorney fees, court costs and other expenses associated with a claim or the defense of a liability suit.

At Marshall Insurance, we’re experts on determining the exact protection you and your business needs. The amount or level of coverage a business may require relies on a few key factors: perceived risk and the state in which you operate.

Our highly skilled agents strive to help you consider all aspects of your business to ensure that you are secure with the most appropriate policy available.  From first considering the amount of risk associated with your business – to then addressing North Carolina-specific regulations, we help to customize a policy plan that works for you.

You can learn more about general liability insurance coverage for businesses by speaking with one of our trusted agents today.  Contact us for more information and one of our dedicated insurance experts would be happy to take your questions and provide you with a free liability insurance quote right now!

Do you need an Umbrella Policy?

You’ve got it all covered…..you have a policy for your home, for your cars, your ATV and motorcycles, even the boat are well insured. While it looks like you have all the coverage you need; perhaps you should consider… an umbrella. No, we don’t mean to protect yourself during the summer afternoons, but a liability policy that fits with your primary policies.

Your primary insurance limits quite possibly provide more coverage that you’ll ever need, however, circumstances could involve a type of loss that is not completely covered by a primary policy. Umbrella or excessive liability coverage respond to an eligible loss only after the primary insurance has paid its limit. 

 

For example, your young driver is coming home on a rainy evening and loses control of the vehicle. They cause a chain collision damaging several cars and injuring dozens of others. If you don’t have enough primary coverage, any shortage may have to come out of your personal assets.

A NC Umbrella Policy  generally provide additional liability coverage for the following underlying policies:

• • Personal Automobile
• • Homeowners
• • Recreational Vehicles
• • Watercraft
• • Personal Liability

The additional coverage may often extend to providing for related expenses such as the cost of providing a court defense if the need arises. So before you get caught in a storm, call us for an assessment of your risk and your needs. You just might need an umbrella.

Auto Insurance: What is Comprehensive & Collision Coverage?

Comprehensive coverage pays for loss or damage to your vehicle caused by fire, theft, vandalism, hail, windstorm, riot, falling objects, flood, collision with an animal, and more. Your policy contract outlines the specific events that are covered.

Each Comprehensive claim is subject to a deductible (the amount you will pay out of pocket). You should choose a deductible that meets your financial needs; the higher the deductible, the lower the cost for carrying for this coverage.

Collision coverage pays for accidental damage to your vehicle caused by upset or collision with another vehicle or stationary object.

Each Collision claim is subject to a deductible (the amount you will pay out of pocket). You should choose a deductible that meets your financial needs; the higher the deductible, the lower the cost for carrying this coverage.


Do I have to carry both comprehensive and collision?

If you are financing or leasing your vehicle, then most likely the answer is yes. Most companies with a financial interest in your vehicle require you to carry both comprehensive and collision coverage, but you should refer to your lease or finance agreement to be sure.

Although Comprehensive and Collision coverage are frequently written together, it may be possible for you to carry either coverage by itself.

Insurance for the NC Auto Service & Repair Industry

Eligible Risks
Repair shops Service Stations Auto Equipment Installation Auto Glass Installers Body Shops Gas Stations Car Washes – Prefer fully automatic with attendant	Quick Lube Shops Tire Dealers – Excluding recapping, re-treading and used tire sales Convenience Stores with Gasoline Sales – (CPP on 24-hour stores subject to underwriting approval; not writing Workers Compensation.)
Incidental Exposures – Less than 10% of total receipts (unless otherwise noted)
Car Sales (up to 25 per year) – with no sales of rebuilt vehicles Towing Associated with contract Work Parking Lots or Garages Radiator Repair Shops (for all lines except Workers Compensation) Roadside Service Sales of Mobile/Motor Homes or Camping Trailers
Ownership/General
Experience – At least three years in business Financially stable operation Full-time/year-round operation Owners actively involved in dy-to-day operation, with favorable attitude toward safety/controls Good housekeeping/maintenance is critical Tanks that meet all current EPA/UST technical requirements Depending on the occupant/values – Central Station Intrusion Alarm may be required Favorable Motor Vehicle Reports (MVRs) Paved or unpaved parking lots in good condition
Body Shops
UL-approved spray booth; adequate ventilation; explosion-proof lighting and fixtures Proper storage of flammables and rags Separate body-work and spray-painting areas (e.g., spray booth, welding curtain, separate building, interior wall, etc.) "No smoking" policy enforced Favorable Motor Vehicle Reports (MVRs) Call us today at 704-684-0082 for a quote!

Consent to Rate Letter -North Carolina

Insurance rates in North Carolina can be confusing, especially when working with an online company. Using an independent insurance agent can help in navigating your way through these tough times in the insurance industry. As claims rise and underfunding prevails, the insurance companies are looking for new ways to increase their rates outside the scope of what is regulated by the state.

Each state is different in how it determines its rates. In North Carolina, for example, the insurance rates are set by the North Carolina Rate Bureau. The Bureau tells the insurance companies the maximum rates they can charge consumers for home and auto policies. Your insurance company can decide they want to charge you a higher rate depending on several factors. But, they can’t charge this additional rate without your consent.

Consent to Rate Letter

That’s where the “Consent to Rate” letter comes into play. If the insurance company deems you a high risk, a “Consent to Rate”letter will be mailed to you. The letter will basically ask you to give the insurance company permission to charge you rates on your policy that exceed the state maximums. When you sign and return this letter you are essentially giving the insurance company your permission to be charged rates higher than those established by your insurance commissioner. This letter can be held in your file until the insurance company deems it necessary to use.

Why the Higher Rates?

Why would your insurance company ask to charge you a higher rate? There are a few factors they consider before mailing the Consent to Rate letter. Insurance companies are singling out high risk insurers for numerous reasons:

-Your home is located in a storm area susceptible to tropical storm surges or hurricanes.

-Your insurance company deems you high risk because of numerous claims

-Some insurance companies are looking at your credit score to determine their risk in insuring you

Why do I pay for Uninsured and Underinsured Motorists coverage?

Over the past few years, North Carolina auto insurance rules have changed in regards to Uninsured and Underinsured Motorists coverage. While it used to be an optional coverage, it is now mandatory. A lot of people may wonder why it is an important coverage to have. Simply put, it will provide you with better protection in the event that you are involved in an accident with someone who does not have enough insurance to cover the claim.

A prime example of a claim that would require Uninsured and Underinsured Motorists coverage would be a hit and run. Even if you see the person drive off and you report it to the police with vivid details of the vehicle they may never catch who hit you. Without having any information on the other driver, you will have to pay for your own damages and expenses which could run into a lot of money out of your pocket. That is where your Uninsured and Underinsured Motorists coverage will come into play.

Unfortunately, even though there is a law in place a lot of people out there on the road do not carry insurance or they do not carry more than the minimum requirements. The minimum will only cover partial damages and most likely would not pay enough if they were involved in an accident. That is one of the reasons people tend to flee accident scenes.

To make up for other people’s lack of insurance, your policy includes coverage for those times when you are involved in an accident you have no control over. Hopefully it never happens to you, but if it does you can rest assured that your Uninsured and Underinsured Motorists coverage will have your back. Call our office with any questions you may have about your current auto insurance policy.

Certificates of Insurance and You

We receive dozens of requests a day for certificates of insurance from and for our clients. A certificate of insurance (also know as an insurance certificate or COI) is a document showing evidence of insurance for one party that can be provided to another party. The certificate shows which coverages are in place (general liability, workers compensation, commercial auto, professional liability, etc), the time period of the policies, the carrier, and the broker or agent.

The certificate is only evidence of insurance coverage at the time the certificate is issued – it is not an insurance policy nor does it provide the certificate holder with any rights.

Why am I being asked to provide a certificate of insurance? 
 
Typically a construction or vending agreement will require the party providing the good or service to provide a certificate of insurance. While the contracts you sign with a general contractor or vendor may have specific insurance requirements, the COI is another way to show that you have the required coverages in place to fulfill contractual compliance during a specific period of time. If your agreement is for a period exceeding the term of your (typically) annual policy, you will probably be asked to provide an updated certificate every year.

Why should I request a certificate of insurance?
  
There are a few reasons to request a certificate of insurance. Unfortunately, not everyone is honest. If you’re looking into hiring a contractor for a home renovation, they are probably advertising that they’re licensed and insured. Ask for copies of both – it’s not an inconvenience to the contractor and if they balk then it should raise a flag regarding their credibility.

Are you a contractor that occasionally has to hire subs? If you’re not asking for a certificate of insurance from these subs, then you’re on the hook for any payments made to them for your general liability and workers compensation. This always creates an issue during the audit process so make sure you request them upfront!

Just because someone has insurance, it doesn’t necessarily mean it’s adequate. An electrical subcontractor could burn down a $2,000,000 commercial office building and if he only has a $500,000 general liability limit there are undoubtedly going to be some problems. What if that same contractor doesn’t have commercial automobile insurance and one of his employees injures a homeowner while renovating their kitchen? If the certificate you’ve received looks fishy – send it to your local insurance agent for review and guidance – that’s why we’re in show business!

Getting Your Drivers License? Call Us First!

Before you go to the NCDMV to take your driving test or restore your driving license after a suspension, make sure you call us first! The N.C. General Assembly has enacted legislation to require some (but not all) driver license applicants in North Carolina to submit proof of automobile liability insurance coverage in order to obtain a North Carolina driver's license.

Proof of liability insurance coverage applies to those: Applying for an original license, including transfers from out-of-state; whose licenses are being restored after revocation or suspension; or Awarded a "Limited Driving Privilege" by the court.

Certification of liability insurance coverage must be submitted on DMV Form DL-123, or an original liability insurance policy, binder or an insurance card and must come from an insurance company licensed to do business in North Carolina: These documents must show: Applicant's name; Effective date of policy; Expiration date; and Date the policy was issued.  A  Form DL-123, binders and certificates are valid only for 30 days from the date of issuance.

Please make sure you call our office and add your teen driver to your policy before going to DMV so that we may issue you a DL-123 form.  Do not wait until you are at DMV unprepared or they will re-schedule your testing date!

Possible Rate Increases on the Horizon

North Carolina homeowners could see their first rate increase in four years as the state’s rating bureau demanded an average 17.7 percent increase in loss cost rates across the state. The North Carolina Rate Bureau filed for the rate increase on behalf of all property insurers. It would increase loss cost rates by 17.7 percent if approved. That figure includes a homeowners’ rate hike of 17.4 percent, a rental rate increase of 30 percent and a 29.5 percent increase in condominium coverage.

The rise of reinsurance is one of the several factors contributing to the rate increase, according to Rate Bureau General Manager Ray Evans. “The cost of reinsurance has increased by 65 percent since the last filing in 2008 and it is a challenge to fine adequate reinsurance,” said Evans. Evans also reasoned that insurers’ claims costs have risen due to the massive number of claims filed and severity of claims.

Recently, some consumer groups have spoken out against the proposed rate increases. The Business Alliance for a Sound Economy (BASE), a consumer group representing the state’s coastal area, is against the proposed rate, claiming it unfairly penalizes coastal policyholders. BASE Governmental Affairs Director Tyler Newman argued that the disparity between rates in the inland counties and coastal counties is unwarranted.

For example, under the current filing, a home valued at $75,000 in the inland areas will see its premiums increase by as little as 1.2 percent, from $364 to $369. In the coastal areas, that increase is projected to be as high as 30 percent, adding more than $300 in additional cost for the same policy.

“It is the disparity of costs that is so disconcerting,” said Newman. “Everyone should pay the same for the same perils.”

The new rate filing is the first since lawmakers earlier this year took steps to improving the ratemaking process by giving policyholders more input. Under the law, the property insurance rate filing is open to the public, which will have 30 days to submit comments. Previously, the public was only allowed to make public comments in the event the insurance commissioner decided to hold a public hearing.

The North Carolina Department of Insurance released a statement saying that in addition to accepting written comments, Insurance Commissioner Wayne Goodwin is planning to hold a public comment session on October 17. “This gives citizens a voice they haven’t had before,” said Newman,

In the event that Goodwin and the rate bureau cannot agree on a final rate, a public hearing will be held that will offer North Carolina residents another chance to voice their concerns. Under the new law, Goodwin will have the final say on rates as long as they don’t fall below existing rates and above what the industry is requesting.

Am I covered if I drive someone else’s car?

Generally, your auto insurance policy provides coverage while driving someone else’s car if:

• you have the vehicle owner’s permission to use the vehicle;
• you use the vehicle for the purpose which the owner gave you permission; and
• you do not regularly use the vehicle.

If covered, your policy’s specific coverage, limits and deductibles would apply.

Typically, the vehicle owner’s insurance would apply first in the event of an accident.  However, in certain circumstances the coverage provided by your own insurance policy could also apply. This is known as secondary or excess coverage.

Boat Insurance

Boat Protector Policy

So what can we do for you?  Erie Insurance’s Boat Protector Policy safeguards your boat, boating equipment and accessories. It also protects you with liability and medical payments coverage.

ERIE offers:
•Comprehensive coverage that covers many types of losses. (Some of which you might not even have thought of.)
•No additional cost up to $500 for boating equipment and accessories.
•Coverage for bodily injury caused to others such as swimmers, jet skiers or other boaters. •Payments up to $250 per occurrence for emergency towing to the nearest marina.
•Award winning claims service that ensures you will be contacted promptly after reporting a loss. (Really, why should you have to wait?)

Contact us today to get your boat protector quote!

The 10 Insurance Policies You Need but Don’t Have

When people buy insurance, they often feel they know enough about their policy, what’s insured, and its risk. However, like a wallflower at a high school dance, what’s excluded in an insurance policy is barely given attention. You may not want a dance with those exclusions, but you should know what they are. Once you do that, you’ll find yourself asking a lot of questions.

What if your grandmother’s antique sewing machine in mint condition is ruined in a flood? Will your homeowner’s insurance pay the full amount of the sewing machine’s prior value? If your car is stolen and you owe $5K on it, will your insurance cover the remainder of the loan? Such questions, along with other times you’re at risk for losses or damages — whether yours or another’s — have answers in the form of important insurance policies you didn’t even know you needed. Here’s a list of them:

1. Personal Electronic Equipment Insurance
Even 10 years ago, there’s a good chance the average household didn’t have many personal electronics. In a scan of just your living room today, many of you reading this can easily name 5-10. If your $5K computer is damaged by a volcanic eruption, explosion, or other named homeowner’s insurance peril, it will be covered. Unfortunately, the top three causes of loss for personal electronics are accidental damage, theft, and power surges. Although it sounds like some kind of far-fetched insurance product protecting your restroom habits, Personal Electronic Equipment (PEE) insurance can carry higher limits and cover a broader range of damage.

2. Renter’s Insurance
If you don’t own the home you live in but rent, why do you need insurance for it? Because you’re a renter — plain and simple. Renters insurance protects personal belongings and even your personal reputation. Liability coverage is one of the most important parts of this policy because even renters can be sued for losses or damages connected to rented properties. Imagine what would happen if you negligently burned your apartment building down, bringing down five other people’s homes and personal property along with it — or even lives. If you don’t have renters insurance, you probably can’t write checks to cover all of your neighbor’s losses and damages (on top of yours). It’s also highly unlikely that you could pay for personal injury and/or wrongful death lawsuits. Fortunately, it’s very affordable, yet only about 47% of renters carry it, even though the average cost is only $17 monthly.  Get Renters Quote

3. Event Insurance
The average wedding in today’s society costs a whopping $26K and many brides plan for their day to be “princess” without safety nets. When that much money rests on one single event contained in a day, you need to think about protection, and the coverage it can offer is actually impressive. For example, if you need to postpone your wedding due to an unexpected illness, this policy can help. It can also protect expensive items like jewelry and wedding dresses depending on the policy. Did your wedding day become a rainy day? If so, event insurance can help pay for resulting losses or damages. If someone slips on that shiny dance floor, severely injuring themselves, they may come after the event organizer for medical bill coverage, and event planners would be the ones sued. Event insurance has a liability portion built in for that kind of protection. It can be purchased for all other event types as well, but weddings are one event when it’s definitely needed.

4. Burial Insurance
Many people say buying insurance is gambling, and that those playing are gambling on something bad happening. However, there’s one thing none of us can gamble on — death — and there’s insurance to help specifically cover part of its cost. Burial insurance, a form of whole life insurance not to be be confused with pre-paying for funerals at funeral homes, is one of the safest policies you can buy because you know it will be utilized one day. You won’t be around to see the payoff of burial insurance (literally), but loved ones left with final expenses would certainly appreciate your foresight. It helps covers final expenses in their truest form — burials, cremations, and funerals. If you aren’t sure how your funeral will be paid for, this is definitely worth looking into.

5. Flood Insurance
According to the National Flood Insurance Program (NFIP), flooding is the number one hazard in the U.S., yet many homeowners aren’t aware it’s not covered under standard insurance policies. You don’t have to live in a high-risk area to warrant buying a flood insurance policy either, as 20% to 30% of flood claims come from low- to moderate-risk areas. If you don’t have flood insurance, damage isn’t covered, and according to the NFIP, the average flood insurance claim is $30K. The NFIP reports average annual premiums of about $600, or rather, $50 a month. If you buy a home and plan on living in it for 30 years or the rest of your life, doesn’t spending $600 a year to protect your home seem logical given your long-term plans?

6. Gap Insurance
In 2010, 737,142 cars were stolen, totaling a stunning $4.5 billion in personal property losses. It’s likely some of those car owners still owed on car loans originally used to purchase the cars. Without gap insurance, you’re responsible for paying off that loan even if the insurance company has written off your car. Regardless of the car, its sale price, or any other factors, anytime you take out a loan to buy a car — especially brand new or very expensive ones — you should purchase gap insurance.

7. Umbrella Insurance
Your homeowner and auto insurance policies offer liability coverage, but it’s normally only up to a certain amount. Have you ever considered what would happen if you got sued for more than your liability limits? You’d have to pay out of pocket and with the rest of any assets you have. An umbrella policy provides extra liability protection at an affordable cost — a $1 million policy will usually run anywhere from $200-$500 a year.

8. Accident Insurance
Did I do that?  Whether it’s your fault or Steve Urkle’s, accidents happen and they can be financially devastating depending on the severity of the injuries you sustained from an accident. If you think bills from general practitioners are high, the costs of losses and damage incurred in an accident makes $180 seem like pocket change. According to the National Safety Council (NSC), the average hospital stay is five days, meaning lost income, extra daycare, bills for the cafeteria’s gourmet meals, and more. That’s a lot of money, especially when the cost of staying at the hospital is more than $22K on average. Accident insurance is what could help cover — to at least some degree — things like those previously mentioned — lost income, insurance deductibles, and childcare among other things.

9. Pet Insurance
If you love your four-legged friend, whether dog, cat, or something more exotic, you probably care for them like another human family member. If they get sick, treatment can cost thousands. According to the Americans Pets Products Association, $12.2 billion was spent on veterinary care in 2009 alone, and those statistics are rising. Procedures become increasingly expensive, and those formerly out of reach are now widely available. If you want to protect your pet, this insurance policy can help you save money in the long run, but do it now. Similarly to the underwriting guidelines of many insurance types, you want to obtain coverage as early as possible — don’t wait until your pet’s vision seems to be waning. Buy it when your pet is still healthy to help lock in premiums and discounts that may help if something drastic happened, causing rates to rise. Additionally, pet insurance is still a relatively new frontier, so it’s wise to purchase it before it catches on more, which would likely mean more premiums.

10. Private Medical Insurance
If you’re employed and still have health coverage, thank your lucky stars. As the costs of health care rise, some employers are considering dropping benefits altogether. Then you may find yourself in the sticky situation of searching for private insurance — along with 46 million others who are uninsured. According to a study by the National Institutes of Health, private medical insurance can cost up to $1K monthly, and the average cost of one ER visit is 40% more than the average U.S. rent amount at $1,233.

If you look at insurance as gambling, that’s fine. However, the irony of calling it gambling is that when you don’t “gamble” by not buying insurance, you’re gambling that nothing bad would happen, and that’s a gamble you want to lose

5 Questions to Ask Yourself Before Dropping Full Coverage?

Typically I’d be reminding you how important high liability limits are to protect you if you cause an accident that injures somebody. However, this is all about you, what you’re covered for, and what’s best for you financially when it comes to coverage.

Normally you may hear nothing but “increase your insurance coverage!” from insurance professionals, but there are actually times you need to scale it back.

When would that be? Usually when your car is old. This doesn’t mean you don’t love your car — plenty of people drive their cars until they no longer run. But old cars can be costly if you continue carrying full coverage. With older vehicles, there’s a good chance the premiums you pay are more than the value of the car.

Sometimes insurers will tell you this, either out of good faith or they’ll just outright refuse to extend full coverage. You shouldn’t wait on your insurer to tell you when enough is enough though — to ensure you’re getting the most bang for your buck, you need to figure out when it’s time to increase coverage, downgrade it, and make other needed changes. So what should you look for? Here are five questions to ask yourself when trying to decide if it’s in your best interest to keep full coverage.

What am I giving up?
If you decide to drop full coverage, understand what won’t be covered. When people refer to full coverage, what they’re really talking about is comprehensive, collision, and liability on one policy. Liability protects another person and their property if you cause an accident. Collision coverage would kick in in situations where your car is damaged in that same accident or in single-car accidents (like hitting a telephone pole). Comprehensive generally covers everything else that isn’t the result of a crash. If hail cracks your windshield or dents your hood, comprehensive covers it. If vagrant teens spray paint your car on Halloween, comprehensive will cover it.

Note this though — full coverage only refers to comprehensive and collision coverage in addition to liability. Full coverage does not automatically include extras like towing and labor, roadside assistance, rental car coverage, or other optional add-ons. If you call an insurer right now and ask for full coverage with state minimum liability limits, you’re going to get a policy with bodily injury and property damage liability, comprehensive coverage, and collision coverage — that’s all. With most insurers, you’re not even eligible for those extra coverage options unless you have “full coverage.”

Thus, “full coverage” isn’t as “full” as you may believe it to be, and when full coverage is removed, your policy will be pretty empty and only have liability coverage. That means absolutely no coverage for your vehicle at all. In addition to comprehensive and collision coverage, if you’re a fan of perks like roadside assistance, keeping full coverage may be worth it to you — just ensure you can’t get roadside assistance cheaper elsewhere. Ask yourself what’s holding you back from dropping full coverage and what you need most. The only time an insurer would pay to fix your car or ‘replace’ it is if someone else causes an accident. Then their liability coverage would cover your car.

Do I owe on the car or is there a lienholder?
One of the first things to figure out is if you’re even allowed to drop comprehensive and collision coverage. Often only seen in the case of newer vehicles that are financed, banks and lienholders will usually request that the loan owner carry full coverage until the loan terms are satisfied (until the car is paid for or until the lien is released). However, just because a car is old doesn’t mean it’s owned straight-out. If you still owe on your car, this is an easy decision because there’s a 99% chance that you don’t have a decision to make. You’re required to have comprehensive and collision on any car you still make payments on or that you’ve used as collateral for any kind of loan. As soon as you pay your car off or have satisfied the requirements set forth by a lienholder, then you can consider dropping full coverage.

What’s the value of my car?
Establish the value of your car to see if it’s worth it to keep full coverage or not. A car is not a fine wine — it only depreciates with age (antique and collector vehicles excluded). As it gets older, the value goes down even if it’s been well cared for.

So the value to look for?  Use sources like Kelley Blue Book and Black Book and N.A.D.A. Guides to determine value. If you can’t find your car or believe the value is different than the listed price, you can get it appraised, but usually you can avoid that expense by being honest with yourself about your car’s condition. You may have taken your wife out on your first date in that car, but last time I checked, N.A.D.A. doesn’t include a section for sentimental value.

How much do I pay for collision coverage?
Here’s where your car’s value matters most and where you’ll need to do some math.
Look at your most recent insurance statement. You’ll notice the majority of your bill comprises collision coverage. It’s expensive, but property damage can be as well. According to National Highway Safety and Traffic Administration, the average property damage price in car accidents is right over $26K. As expected, insurers raise rates for policies covering more expensive risks. When you compare what you pay for collision insurance with your car’s actual cash value, does it add up?

If you’re paying an extra $60 a month to have full coverage, you have a $1K deductible, and your car is only worth $1,500, it’s not economical to keep full coverage. If your car were totaled, the insurance company would only pay $500, you’d be responsible for $1K, and you would have spent $720 annually paying for full coverage. You’ve then spent a total of $1,720 out of your own pocket. That’s almost the price of replacing your car and you’ve paid more to the insurer than you stand to get back if the car is totaled. It’s better to bank the difference.

If you’re wary of dropping full coverage, try dropping collision first. This may be easier if you’re a safe driver, and you’d still be covered in freak accidents, like if a tree falls on your car. Hey, it does happen.

How much is my collision deductible?
Another way to keep collision and peace of mind is to just raise your deductible. This will lower overall insurance rates while still keeping your policy. Knowing the value of your car will help determine if this is the right decision. If your car is valued at $5,500 for example, all you may want to do is raise your deductible, especially if you can’t pull the replacement cost of your vehicle out of your pocket. But if your car is valued at $1K and you raise your deductible to that amount, you’re paying for insurance that won’t cover you, which doesn’t make sense.

Ideally, you’ll only be dropping full coverage on a vehicle that’s not your main mode of transportation. In any case though, build up your personal savings in case something does happen to your car. Be proactive about any small repairs before they turn into big projects. Dropping full coverage is a great way to save money, but if you do, it’s all up to you to ensure your car stays in safe, secure, and operable condition. Since you’re not paying anyone to pick up the tab anymore if something happens to the car, it’s up to you to help its longevity. If something happens, it’s all on you. That means it’s worth investing time into determining whether full coverage is worth it.