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As part of our blog series on the importance of reviewing your insurance policies, we’re wondering, are there gaps in your coverage?  Have you thought about personal umbrella insurance?

What if you rear-end a high-powered surgeon and they can’t return to work because of their injuries? You don’t have to be a millionaire to be sued like one!  Accidents happen, and if you’re found at fault by the court, it could wipe you out financially. You can protect yourself from the unexpected with a supplemental insurance policy, known as umbrella or excess personal liability insurance coverage.  A Personal Umbrella Policy (PUP) is extra security above and beyond the normal or primary liability limits of your personal auto, homeowners, boat, motorcycle, renters or condominium insurance. And the good news is, it’s relatively inexpensive! 

What is Personal Liability Coverage and Why is it important?

A personal liability insurance policy protects an individual from the risk that they may be sued and held responsible for injuries and damages caused to others. These policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. However, the legal payouts are only up to the primary liability policy limits. Without this coverage, individuals would be forced to pay out of pocket for any damages and legal fees.

Why You Should Consider a Personal Umbrella Policy (PUP)

If you’re sued for more than the primary liability amount covered on your personal home, auto or boat policy, you could be personally responsible for the amount that exceeds your primary liability limit.  A personal umbrella policy is a second layer of liability coverage that sits on top of the primary liability coverages offered by your personal policies. 

Who & What can personal umbrella insurance cover?

• The named insured and all resident relatives
• The costs of legal payouts against you when a covered lawsuit exceeds your primary (also known as underlying) liability insurance limits 
• Primary policy coverage gaps, including personal injury liability protection situations such as false arrest, wrongful entry, defamation, humiliation, libel, slander, invasion of privacy
• In court proceedings, an attorney can be hired and retained for you. Their fees are typically covered outside policy limits

Who needs a PUP?

Many of us do. Quite simply, we live in a lawsuit-happy world. If you have assets and you're ever found at fault in a serious automobile accident or sued for a personal accident on or away from your property, you’ll want all the coverage you can get. That's why a personal umbrella policy makes sense for so many drivers and homeowners. It’s affordable supplemental insurance that’s there when your primary insurance hits its limit. That can make a world of difference for expensive lawsuits.

How big a PUP do you need, and what are coverage amount rules of thumb for a PUP?

Coverage limits on a personal umbrella policy start at $1 million and increase by million-dollar increments for qualified applicants.  But remember, when considering a PUP, your assets go beyond your banking or investment accounts. It’s also your home, earnings and valuables.

What's the average cost of a PUP?

You may think personal umbrella insurance is expensive, but it’s actually a very affordable level of coverage. Depending on the state you live in, for about $1 a day, you can have the additional protection of a PUP that works with your existing personal liability insurance coverage.

Does a PUP apply anywhere in the world?

Yes.  Your personal umbrella insurance coverage goes with you wherever you go – in the U.S. and around the world.

What happens if the minimum underlying limits on primary personal policies are not met?

You’ll lose out on a personal umbrella policy. All insurance companies that sell personal umbrella insurance require you to have certain minimum amounts of primary liability insurance before the umbrella policy can be written. 

Still not sure you need a personal umbrella policy?  You can learn much more about why you should consider purchasing one by contacting a professional insurance agent. Just consider the gaps that may exist in your primary personal liability insurance coverage and the potential for unexpected accidents or circumstances.  That alone should help with your decision.

Stay tuned as we continue our blog series on insurance reviews. As always, we welcome your questions and suggestions on the insurance issues that matter to you most. 

It’s time for part two of our blog series on the importance of reviewing your insurance coverage. We recently blogged on what to look for when reviewing your home owners insurance. Now, let’s take a look at how to review your automobile coverage.  Don’t forget to stay with us in the coming months as we continue to explore what you should look for when you review various types of insurance.  As always, we welcome your questions and suggestions on the insurance issues that matter to you most.

Before You Automatically Renew Your Automobile Coverage

It’s far too easy to just let auto insurance run on autopilot.  We find a good policy at an acceptable rate and each time it renews we take the new insurance card and stuff it in our glove compartments nonchalantly.  But when was the last time you took a good look at your auto insurance policy coverage?  Do you know if you’re getting all applicable discounts?  Do you know if you have any gaps or redundancies in coverage?  Before you blindly renew your automobile insurance coverage, you should contact your insurance agent and work with him or her to review your policy.   Just because you have insurance, doesn’t mean you’re covered.   

Top 10 Auto Insurance Policy Review Considerations

1. Collision and Comprehensive
   Curious what the difference between these two coverages is? Talk to your agent. In the case of a covered loss (i.e. an accident that's specifically covered by your policy), collision helps pay for the repairs up to the actual cash value of your car to get it driving again. The higher the deductible the lower your premium and the more you share in the cost of repairing your vehicle if an accident happens.  Storm damage, fire, vandalism, theft and animal encounters (most often deer in NJ) are perils usually included under your comprehensive coverage. Similar to collision, the higher the deductible the lower your premium, though the savings are usually not as large.  Wondering if you need either or both? Talk to your agent about what to consider when making this decision – factors like the value of your car, how much you could save by dropping the coverage, your ability to pay for repairs on your own and whether you would repair/replace a vehicle that was damaged or totaled in an accident. 
2. Liability Coverage
   If you cause an accident and are found at fault, your liability coverage will protect you from the expenses incurred with regard to damages to people or property, and cover the legal costs for your defense up to the limits of your policy.  If you don’t have an adequate amount of liability coverage on your policy, the other party’s attorney may go after your personal assets. 
3. Personal Injury Protection (PIP)
   Reasonable and necessary medical and hospital expenses are covered by PIP, but so are income continuation, household services, funeral expenses and even child-care expenses while you heal. This is required automobile insurance coverage in New Jersey, so discuss your current automobile and health insurance policies with your agent to determine how much coverage you need.
4. Underinsured/Uninsured Motorist
   Believe it or not, some drivers have little or no car insurance in NJ. If one of them damages your car, or injures you or someone riding with you, this automobile coverage option can help cover repairs and non-medical expenses.
5. Rental Car Reimbursement
   Wouldn’t it be nice to have a car to drive if your vehicle is being repaired due to an accident? If you’re antsy to get on the road while your car is being repaired after an accident, this option will reimburse you for the cost of a rental vehicle.
6. Towing/Roadside Assistance
   If you’re involved in an accident, does your policy include coverage for towing?  If you find yourself locked out of your car, out of gas or with a flat tire, does your policy provide for emergency roadside assistance?  When included in your auto insurance coverage policy, how does the cost of these services compare to purchasing them elsewhere?  Is there a benefit to getting them from your auto insurance provider?
7. Discounts
   Who doesn’t want to save some green? Make sure you get all available discounts and bonuses to help save you money on your car insurance policy coverage. Just a few of the discounts or bonuses you can get in NJ include paying in full, having more than one policy, having more than one car, completing a defensive driving course, being a resident student and being a safe driver with no accidents or tickets.
8. Young Drivers
   Will you be adding a teen driver to your policy soon?  Visit with your agent to find ways to minimize the cost of adding a young driver to your policy, as well as your teen’s eligibility for driver’s training and good student discounts. 
9. Rewards and Surcharges
   If you or someone on your policy has a claim, is involved in an accident or gets a ticket, your insurance rate may go up.  Check with your insurance agent regarding the steps you can take to minimize the impact of these situations to the cost of your insurance.  And if you avoid accidents, you might be entitled to rewards or a reduced rate.  Be sure to consult with your agent regarding this situation as well.
10. Policy Changes
    Thinking about changing the vehicles on your policy?  Check with your agent to find out if you need to change your coverage and the possible impact to your premium before you buy or lease that new car. 

There are many insurance companies out there today that want you to believe that the most important aspect of automobile insurance coverage is price. While insurance may be a commodity, advice is not and you may regret a decision made strictly on the basis of price when you need to use your coverage.  An in-depth insurance policy review with your agent can help you maintain automobile insurance coverage that suits your lifestyle and your bank account.

Don’t miss the next topic in our insurance policy coverage review blog series, where we’ll take a look at personal umbrella policies.  And be sure to check back often as we continue to explore the importance of reviewing insurance coverage. Email us with your questions or suggestions on future topics. 

You may have more valuable possessions than you realize – jewelry, furs, artwork, oriental rugs and collectibles, to name a few. Your homeowners policy can provide some coverage, but with deductibles and coverage limitations on valuable items, a personal articles insurance policy also known as valuable articles insurance, or an insurance rider can provide the additional coverage that you may need.

Do you need valuable articles coverage?

In other words, do you really need special insurance for things like jewelry, artwork, silver and antiques? While you could rely on regular homeowners insurance to cover these high-value items, the problem with homeowners is that the coverage for some valuables is very limited. This may be fine if the value of your favorite possession is of limited value (say, less than $500). But we’re guessing since you’re reading on, that’s not you.  So, if you’ve invested time, passion and money into your valuables, a good personal articles insurance policy could be very helpful if something unfortunate should happen to your cherished possessions.

How does this coverage work?

You insure your valuables for their actual worth – dollar for dollar. The value is settled in advance before anything happens.  This agreed upon value can be based on either what you paid for the item (as documented by a sales receipt) or the item’s appraised value (most insurance companies require that an appraisal be done within the last three to five years).

What can a personal articles insurance policy cover?

• Jewelry
• Furs
• Cameras
• Musical Instruments
• Silverware/Goldware
• Fine Art (such as oriental rugs and paintings)
• Collectibles
• Sports Equipment  (such as bicycles, golf clubs)
• Computer Equipment

What are your personal property coverage choices?

Your homeowners policy will protect the majority of your personal possessions (in fact, the personal property coverage on your homeowners policy is usually 70-75% of your dwelling coverage). In some cases though, valuable items like furs, jewelry, cameras, coin and stamp collections, musical instruments, silver and goldware may not be covered completely because they fall outside of the specific item coverage limits found on most homeowners policies.  Not to worry though, if this applies to your homeowners policy, there are additional coverage options available. You can customize your policy to protect what you cherish most. Jewelry insurance, or coverage known as scheduled personal property (SPP) or extended coverage on specific items or collections can be purchased.

What specifically does each kind of policy cover and not cover?

• Personal Property Protection
  • Applies to personal property owned or used by an insured person anywhere in the world (restrictions apply), and is subject to your policy's deductible
  • Covers sudden and accidental direct physical loss caused by a named peril, except as limited or excluded in the policy
  • Personal property located at a residence other than your primary home is limited to a percentage of your policy’s personal property coverage
  • Covers the personal property owned by a guest or a resident employee while the property is in a residence that the named insured is occupying

• Extended Coverage on Jewelry, Watches and Furs
  • Applies to jewelry, watches, gems, precious and semi-precious stones, gold, platinum and furs when written on the policy, and is subject to the policy's deductible
  • Covers sudden and accidental direct physical loss, including mysterious disappearance, subject to specified exclusions and any deductible
  • Coverage limit applies on a per-occurrence basis with a per-item limit
  • Generally, the coverage amount is not in addition to the amount of personal property coverage
  • You can also choose between item or blanket coverage.  With blanket coverage, you can insure a specific category  (i.e. jewelry or silver) for an overall dollar amount.  This is a good idea for folks with a lot of items that are of smaller values (e.g. $25000 of jewelry, but no one item is worth more than $2500).  Coverage for a specific item is written for a set dollar amount. Specific item coverage is usually used for pieces of larger value (i.e. an engagement or wedding ring or a watch)

• Scheduled Personal Property (SPP) Endorsement
  • SPP endorsement insures items against all risks.  The amount of insurance must be 100% of the current market value
  • SPP is outside the personal property limit on the rest of your policy
  • While certain limits and restrictions can apply, this coverage covers loss of or damage to the personal property of an insured person as scheduled for all risks, including mysterious disappearance and direct physical loss anywhere in the world.  However, coverage on fine arts, firearms and business personal property is limited to within the USA and Canada
  • SPP may be written with higher deductibles, which can be different than the deductible amount under the policy. Unless written as such, scheduled personal property is not subject to the policy's deductible
  • SPP coverage is usually more expensive than Extended Coverage but it can also offer more specific coverage to protect your valuables
  • What about pairs and sets, i.e. if you lose one earring from a pair, or one of your favorite candlestick holders from a set? If the item has been listed on a scheduled personal property insurance policy, it will either be repaired or replaced so that its value is restored to the value it had before the loss?  The policy can pay the difference between the value of the property before and after the loss

Got all that?  Maybe not.  Figuring out the appropriate personal property coverage can be difficult.  You’ll want to enlist the help of a knowledgeable insurance professional to help you figure out what’s best for your valuables.  This is especially important if you’re thinking about popping the question.  According to a recently released survey, 40% of men in a relationship say they plan to propose on Valentine’s Day. Make sure you give some thought to the perils that could befall that big beautiful engagement ring. Be sure to make the right decision regarding how to protect your bling once you’ve bought it and before you pop the question.  And if you’re on the receiving end, do some research to find the best way to protect that ring once you’ve accepted it joyously.

Be sure to look for our blog series on insurance reviews. As always, we welcome your questions and suggestions on the insurance issues that matter most to you.

Have you reviewed your home owner’s insurance policy lately?  If not, you’ll want to do so the next chance you get. Otherwise, you may find yourself in an unfortunate situation if you fall victim to a house fire, burglary or flood.  The best thing we all can do is make sure we have the coverage that’s right for us before we have a loss.  The high number of claims has made home owners insurance coverage more expensive than ever – but there are ways to ensure you receive value from your policy.  Make an appointment with your insurance agent to review your policy when it renews and re-assess your home insurance coverage whenever there is a big change in your circumstances (the purchase of an expensive item, a major remodel/reconstruction, etc.)

Your Home Insurance Coverage Review Check List

Here are the important coverage areas to consider when it comes to house insurance coverage.

Dwelling Coverage

Did you know that an underinsured dwelling can incur penalties? So, what’s the adequate amount of dwelling coverage?  It should be enough to cover the cost of rebuilding a home should there be a complete loss – but remember, it’s not based on market value, but rather on the replacement cost of dwelling not including land. This is why it’s so important to re-assess your policy especially if you’ve remodeled or renovated.   

Replacement Cost or Actual Cash Value

What if your dwelling and its contents get damaged or destroyed? Replacement cost coverage and actual cash value insurance will be there to protect you. This refers to the amount your provider will pay – Replacement cost coverage doesn’t deduct for depreciation while actual cash value insurance does.

Liability Coverage

Liability Insurance helps protect you against the financial uncertainty arising from injury (or property damage) that you or your family may cause to other people. It typically covers injuries whether they happen on or away from your property. If you don’t have enough liability insurance, then your assets could be at stake. The liability coverage on your homeowner’s policy helps you to protect your retirement accounts, investment in stocks and bonds, checking/saving accounts, home and other real estate equity. It is very important to discuss the assets you need to protect with your agent to determine the level of liability coverage that is right for you.

Do You Have an All-Risk or a Named Peril Policy? 

When choosing home owners insurance, you have these two choices. The primary difference between them is that a named peril policy covers what is "named" (included) in the policy while an all risk covers everything except what is excluded. Typically, an all-risk policy offers much more comprehensive coverage.

Contents Coverage & Personal Items

Don’t you just love your flat screen television, that mahogany dining room set, those designer brand clothes? What about your beautiful jewelry, piano or other personal items? The value of your belongings adds up quickly, so you should understand how much coverage you need and when or if an appraisal is required to adequately cover your personal property.

Other Structures on Property

While you’re right if you assume most policies automatically provide this coverage, you should be sure you’re adequately covered if you have a cottage, swimming pool or shed on your property.

Property Inflation Adjustment

Your insurance provider should automatically adjust your policy with building cost inflation, but do yourself a favor and double-check this. You may see a minimal annual increase to adjust for the rising replacement cost coverage. \

Building Ordinance & Water Sewer Backup

If your home is older than 25 years, building ordinance coverage could be very important. If a local building ordinance calls for the destruction of the dwelling, your insurance company may deny paying for increased costs or demolition expenses incurred. You may also want to consider water and sewer backup coverage.

Policy or Coverage Changes 

Has your insurance company changed your policy or coverage? They are required to contact you when this occurs, but in the event you missed their notification, you should check on this from time to time.

New Discounts

Always review all eligible discounts because this is an easy way to cut down on the expense of your home insurance coverage.  Also, consider adding a protective device like an alarm system or adjusting your deductible for increased savings. 

Your insurance agent will always be there to help you with your home insurance.  Staying educated about your house insurance coverage is the best way to get the most out of your policy, so don’t hesitate to go to your agent with questions. The worst thing to do is to just “set it and forget it.” And remember to never assume you’re fully covered just because you have home insurance coverage.

Keep an eye out for part two of our blog series on insurance policy reviews; we’ll be discussing what to look for when you review your auto policy.  We welcome your suggestions or questions on the insurance issues that affect your life.

We hope that we can protect ourselves and our families from many of life’s uncertainties with quality insurance. But are we really getting the most out of our policies? The fact is, just because we have insurance doesn’t mean we’re fully covered.  Are you prepared? Unless we take the time to review our policies periodically, we could end up with a big surprise when we need to file a claim.  

Because the importance of reviewing insurance policies cannot be overstated, we are launching a series of blogs that give you an inside look at what to consider when reviewing your insurance coverage.

How to Review Your Insurance Policies

Step One – Partner with a Qualified Insurance Agent

Get the best coverage by partnering with a licensed insurance agent to help you with your insurance planning.  Some may see insurance as a commodity, but advice is not.  With insight and expertise, a qualified insurance agent has the product knowledge to build a custom plan that works best for your lifestyle.  

Step Two - Review Coverage

Do you understand the coverages on your policy? Are there any gaps in these coverages?  Are you getting all applicable discounts? 

Step Three – Consider Your Circumstances

Has your life changed recently?  Have you made some big purchases, switched jobs or added/changed family members?  Help your insurance agent get you the right level of coverage by keeping them informed.

The first blog in our insurance review series will give you insight into how to review your home owners insurance coverage.  Blog two will delve into the depths of reviewing your auto policy coverages.  Let us know your questions, and feel free to suggest additional insurance coverages you’d like us to feature. 

If you’re a contractor that operates a home business, believe it or not you carry similar risks as the largest corporations out there.  Whether it’s just you and your tools of the trade, or you’ve hired a team of employees or subcontractors to help you build someone’s dream home, you’re going to need business insurance coverage.  Unsure whether this applies to your business?   Just ask yourself the following questions.

Why Do You Need Contractor Insurance?
If you’re running a home-based business, you may be thinking it isn’t large enough to require contractor insurance.  Whether you’re a plumber, locksmith, painter or carpenter, the risks are out there, and you need protection. Your work and/or your employees’ can end up inadvertently causing injury to someone, or your materials can end up damaging existing property. Also, what happens if your employees get injured while on the job? That’s why it is so important that you protect yourself properly with coverage like general liability insurance and workers compensation insurance. Here are some issues to consider:

How Do I Know What Coverage I Need?
The first thing you’ll want to do is contact your insurance agent.  In order to determine your business risk,  your agent will need to know what your business  you are in and all the types of work you perform. Be specific and honest to ensure you get the right coverage customized for you business needs. One contractor may need a customized business owner policy (BOP) while another may need a simple commercial general liability policy (CGL). Both may or may not need a commercial auto policy and both may need workers compensation coverage. It all depends on your particular line of work.

Can I be held liable for damage or injury?
Yes you can! Today’s society is increasingly litigious, and even small missteps can result in large lawsuits. Therefore, general liability insurance is critical for any size company. Liability insurance protects your company’s assets if it is sued for causing property damage or personal injury. You can purchase general liability insurance on its own or as part of a business owner’s policy, or BOP. BOPs bundle liability and property insurance into a single policy. Remember lawsuits can happen on the first day of the job or even years after you finished the project.

Are My Materials and Labor Protected?
With builder’s risk insurance, you are protected from the loss of materials and labor costs during the course of construction due to most circumstances outside your control – Fire, theft, vandalism, wind, and lightning. As part of your contractor insurance, this valuable protection can also cover the cost of materials stored on site that are damaged or lost.  

What Is, and Do I Need, Workers Compensation Insurance?
Every NJ employer has a legal responsibility to employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken. Therefore, worker’s compensation insurance (WC) is required for every employee in the state of NJ.

WC covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses as well as certain medical expenses, lost income and rehabilitation expenses. It also pays a death benefit to heirs of an employee who dies from a job-related injury or illness.

Be careful, WC can be a tricky. Depending on your corporate structure, even though you have no employees, you may be required to carry the coverage. That’s why it is always best to consult an insurance professional.

Do My Subcontractors Need Insurance?
Absolutely! If you face a claim related to work done by your subcontractor, you may find out too late that your contractor insurance policywon’t pay. Make sure your subcontractors are insured for both general liability and worker’s comp by routinely asking for their current certificates of insurance. Also, make sure that you’re named as an additional insured, and check that the limits of liability match or exceed yours.

Do I Need Commercial Auto Insurance?
Whether it's a single truck used just by you to get from job site to job site, or several passenger cars or trucks used by your employees, you’ll need theproper insurance coverage. If you’re like many home-based business owners, you may use only one vehicle for both business and personal use.  In that case, your insurance agent can advise you on mixed use insurance coverage because your personal auto policy may not cover your business risk. 

Don’t assume that just because you’re a trusted professional to some, that others won’t have problems with your work.  If a client finds your work unacceptable or finds you haven’t met their standards, business insurance coverage will be there to protect you.  New Jersey’s insurance company John Hawk Agency can help you decide what you need when it comes to contractor insurance.  From general liability insurance to commercial auto insurance, you’ll get a cost-effective plan to help you do business with confidence.

Winter Weather Safety Tips
For starters, don't go out until the snow plows and sanding trucks have had a chance to do their work, and allow yourself extra time to reach your destination. 

Winterize Your Vehicle
Schedule a maintenance checkup for your tires, battery, belts and hoses, radiator, oil, lights, brakes, exhaust system, heater/defroster, wipers and ignition system. Keep your gas tank sufficiently full – at least half a tank is recommended.

Equip Your Vehicle with Chains or Snow Tires
When it comes to traction on slick winter roads, you’ll want to consider using tire chains or snow tires.  Tire chains are highly effective and can be purchased at just about any auto store. Inexpensive, and easy to install and remove, tire chains will give you that maximum grip to ensure your safety. 

An equally effective alternative for winter driving safety is the use of snow tires, which provides the added benefit of giving your standard tires a rest during the winter months. You’ll feel like you’re driving around in your very own snow mobile as you stop, turn corners and change lanes without the worry of your back end sliding. Most snow tires cost less than an insurance deductible and last at least three seasons. And chances are your tire seller will allow you to store your other tires with them during the winter. If the east coast blizzards can teach us one lesson, it's that it's never too early in the season to start thinking about winter tires. Prepare yourself with tire chains or snow tires today.

Purchase Winter Driving Safety Essentials
Before winter hits, do yourself a favor and build a winter driving safety kit for your trunk including a snowbrush, ice scraper, rock salt, small shovel, flashlight, blanket, jumper cables and first aid.

Clean Off Your Car
Before you hit the road, be sure to clear snow and ice from windows, lights, mirrors and the roof. If you don’t, you’ll leave a trail of dangerous conditions for the other drivers around you. This is one of the simplest driving safety tips.

Turn on Your Lights
Winter weather and limite daylight hours can make for limited visibility.  Keep your headlights on at all times so that you can see and be seen.

Slow Down
Failing to allow yourself enough time to stop is a major cause of winter driving accidents. In slippery conditions, stopping distances can triple. Driving at a slower speed, anticipating stops at traffic lights and intersections, and applying brakes sooner than usual are excellent safe winter driving tips to remember. When braking, brake carefully with short, rapid application of the brakes. Always allow plenty of extra space between you and other vehicles to minimize the need for quick stops.

Know How to Handle a Skid
If you’re going a slower speed on winter roads, you shouldn’t find yourself skidding, but if you do, it’s important to know how to handle it. Determine where you want your car to go and turn your steering wheel toward that point. Avoid over-steering.

Get Over the Hill
Drive too slowly and you’ll find yourself spinning your wheels on hills.  Drive too fast and you’ll risk skidding.  So what can you do?  Maintaining momentum. Apply light and even pressure on the gas pedal, and approach the hill with medium speed. At the top of the hill, slow down and roll down the hill slowly.

Maintain Your Car Insurance
While no additional coverage is needed for winter, you should make sure your auto insurance policy has coverage for loss of use. This way, if you happen to get into an accident, you can get a rental car while your vehicle is getting repaired. 

According to NJ insurance agents John Hawk Agency, preparation is key when it comes to winter weather safety tips.  Teenage drivers who are new to the road in general need some extra guidance before they get behind the wheel.  Parents or family members are urged to take teens out to practice in an empty parking lot upon first snow fall.  But the fact is, no matter how old you are, winter driving safety is something you should always have on your driving radar to avoid a car accident. 

When you’re taking on a home renovation or dealing with storm damage, you’ll need to hire a contractor.  But do you know how to find a contractor?  Do you know what questions to ask a contractor to ensure they’re truly professional? Sure… you know you have to get multiple bids, and consider references and referrals. But the most important factor to investigate is their insurance coverage.     

When hiring a contractor, it’s crucial to check for insurance and how it extends to employees or potential sub-contractors. If the contractor isn’t protected with adequate insurance coverage, you could end up getting sued if one of the workers gets injured at your house. And you may be held responsible. You can avoid a situation like this by doing a little research up front.  Following are ten of the most important things to check up on when you’re looking for contractors.

Top 5 Tips for How to Find a Contractor

1.)   Perform a Contractor License Check

It’s important to protect yourself by performing a thorough contractor license check to ensure you’re hiring a licensed contractor. Anybody can claim they’re a professional contractor, so ask to see their insurance policy. They should happily provide their certificate (or binder). You should see any hesitation or pushback as a red flag.  Call the insurance company or agent listed on the binder to verify that the coverage is current and in effect.

2.)   Check for Worker’s Compensation Insurance

One of the most important questions to ask a contractor is whether or not they have Worker’s Compensation Insurance. This form of insurance, which covers medical/rehabilitation expenses and lost wages for workers, will serve to protect you in the long run. If the contractor’s limits aren’t adequate, an employee or subcontractor may end up suing you if they get injured on your property.

3.)   Check for General Liability Insurance

Costs associated with an accident on the job can be very expensive.  A contractor’s general liability insurance covers property damage and injuries involving employees, clients and even bystanders caused by mistakes or negligence. When you’re looking for contractors, make sure they have this.

4.)   Check for Builder’s Risk Insurance

It’s important that your home and materials are protected from damage at every point while under construction.  Builder’s Risk covers the contractor’s interest concerning materials at the job site before they’re installed, materials in transit intended for the job, and the value of the property under construction until completion of the project. Your questions for contractors should include whether or not they carry this important coverage.

5.)   Confirm Contractor is Registered

In order to monitor insurance coverage and complaints, home improvement contractors are required to register their business with the state via the Home Improvement Contractor’s Registration Act & Home Improvement Contractor Regulations. Contact the State Division of Consumer Affairs at 973-273-8090 to verify the person is a registered home improvement contractor.  Also be sure to confirm your contractor’s licensing status with the New Jersey State Labor & Industries Department. 

With so many regulations and requirements involved, you can feel at ease knowing you’re getting quality work from a trusted professional if you’ve done your research. For more information on how to find a contractor or recommendations of questions for contractors, contact your insurance agent. 

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Did you know New Jersey is one of a few states that does not offer a separate glass coverage deductible as part of car insurance? Unlike other states, when NJ drivers fall victim to chipped, cracked or broken glass, comprehensive insurance covers the cost of repair or replacement. That means you can save quite a bit of money if you set up your auto glass insurance coverage plan the right way.

The Best Insurance for Chipped, Cracked or Broken Glass

Here are some things to ask yourself when trying to get the best coverage for your money:

Do I Need Auto Glass Insurance Coverage?

The odds are very good that you’ll fall victim to a chipped, cracked or broken windshield. It’s reported that 13-14 million windshields* are replaced each year. And stressors like extreme temperatures or rough driving conditions will cause existing windshield chips and cracks to spread quickly, according to a recent windshield damage study.** Glass insurance coverage will protect you from spending big bucks on repair or replacement.

How Does My NJ Comprehensive Insurance Protect Me?

Your comprehensive insurance covers non-collision auto damage like fire, vandalism and theft.  In New Jersey, all claims related to auto glass damage are handled through the comprehensive insurance coverage portion of your auto policy. If you have your deductible set up properly, you’ll save money when you experience windshield damage.

What Should My Comprehensive Insurance Deductible Be?

The best auto glass insurance coverage has a very low comprehensive insurance deductible. Think of it this way – If you have a $1,000 deductible and the estimated repair cost is $750, it wouldn’t be worth your while to file a claim. The deductible is more than the cost of the windshield. Insurance agents at the John Hawk Agency in New Jersey suggest lowering your comprehensive deductible from the average range of $500-$1,000 to $100-$250. This way, your policy will cover a big chunk of the cost. It’s a relatively inexpensive change to make that will give you immediate payback on your first auto glass insurance claim.

How Can I Change My Comprehensive Insurance Deductible?

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"A riddle wrapped in a mystery inside an enigma." That’s how Winston Churchill once described Russia, but the same could be said of insurance. You know you should have a comprehensive, cost-effective network of coverage, but what you need and how much can be confusing. Here are 10 reasons why you need an insurance agent to get the best insurance coverage for your money.

10. Save Time
While it may be tempting, you’ll want to avoid going with one of those 1-800-do-it-yourself companies that claim to get you covered in as little as 15 minutes. In reality, that’s really only enough time to reduce your coverage and increase your risk. What truly saves you time is using a knowledgeable insurance agent to remove the guesswork and confusion involved with finding the best insurance coverage. Professional insurance agents will be there to advise you on coverage choices and claims questions. Plus, if you need to change your coverage or settle a claim, having someone there to guide you makes it easier.

9. Save Money
Insurance advisors coordinate all your policies, so you can be sure you’re covered adequately and not paying for unnecessary coverage. And with more resources and support to draw from, independent insurance agents often can get you a better deal than you can get for yourself.

8. Reliability
Insurance agents get to know you personally.  That means you’re more than just a policy number. When you’re buying insurance through an online service, nobody knows you by name, and you can’t visit the office when you have a need.  But independent insurance advisors are more likely to be there when you need them – and they’ll even come to you. They’re committed to your complete satisfaction and will often set up follow-up visits or phone calls to ensure you’re happy.

7. Personal Touch
Unlike online services or large impersonal call centers, you have a personal relationship with professional insurance advisors at independent agencies.  They know you by name, learn your history and tailor a policy that best meets your needs and the needs of your family.

6. Service
Insurance agents will actually take the time to consider your needs and lifestyle before making any recommendations. You can expect personal attention and customized services with independent agencies including annual coverage reviews that keep your policies up to date and address your ever-changing needs. Plus, if your life takes an unexpected turn, you’ll have someone to advise you in light of your new situation.

5. Knowledge
If you’re wondering how to get an agent, the first step is to find a state-licensed, knowledgeable professional. The best insurance agents adhere to state-regulated continuing education requirements and can provide you with infinite combinations of insurance options. They know about the pitfalls – the exclusions and limitations – in a policy. And they will use their expertise to narrow down exactly what you need and what amount of coverage is best for your circumstances.

4. Reputation
Stability and dependability are crucial to the insurance process. So, in terms of finding the best insurance agents, word of mouth goes a long way. When you’re figuring out how to find an agent, ask around or research company and agent reviews online to get a good idea of whom you’re dealing with.

3. One-Stop Shop
Insurance advisors typically don't sell just one insurance product. They usually offer a full range. From homeowners, renters and business to auto, health and life, insurance agents are essentially your one-stop shop for insurance. You’ll love the convenience and cost savings of having all your insurance needs handled in one place.

2. Peace of Mind
If you’re in the claims stage, you’ve already dealt with enough stress. Your agent will know how to avoid the “red tape,” so you can get everything resolved quickly and efficiently.

1. Protection
Life is more stable when you’re protected with the help of professional insurance agents. And if you’re trying to go it alone, you’re taking a risk. When it comes to your health, you trust your doctor.  When you’re looking for the best vehicle, you trust your car salesperson. When you want a safe home, you trust your real estate broker. So, given all that you have to protect, isn’t it time you put your trust in the advice of a knowledgeable insurance professional?