Kentucky Insurance News

New Coverage for Today’s Equipment and Information Risks

Thu, 03 May 2012 20:24:38 GMT

As equipment breakdown risks evolve with changing technology and increased demands, it’s critical to keep equipment breakdown coverage up to date. The latest coverage is now available from Bilz Insurance. It is broad coverage and offers generous incentives for upgrades to equipment that uses less energy, is safer or more environmentally friendly.

This insurance program also includes an option to add timely coverages for today’s information risks – data breach and identity theft – at a cost smaller businesses will find affordable. Contact us about these new insurance offerings.

New Solutions for Today’s Data Security Risks

All businesses are vulnerable

Data breach and identity theft have become common crimes and pose a real threat to small and mid-sized businesses. Our agency is offering two new insurance coverages that address these risks. They’re affordable priced as one convenient bundle.

Data breach response makes a difference.

Virtually all businesses collect data from customers, employees and others. This includes debit and credit card transactions, driver’s license numbers, Social Security information or other identifying information. The problem is that identity thieves are increasingly targeting small and mid-sized business. In fact, about half of all data breaches occur with small to mid-sized firms.

Insurance coverage for data breach is important because once a breach occurs nearly every state requires you to notify everyone affected and it can cost you thousands. Equally important, your customer retention and reputation depend on the right response to a breach. But most businesses don’t have the expert resources or know how to respond.

That’s why we recommend a new product called Data Compromise coverage. It pays for professional services such as legal review of states’ differing obligations and the cost of creating and mailing notifications to affected persons. As important, it includes credit monitoring services for affected individuals and identity restoration services if identity theft results. Prompt professional assistance such as this helps reassure your clients and protects your business reputation.

Identity theft coverage can lift the burden.

While everyone is vulnerable to identity theft, it can be especially damaging for a business owner whose personal credit may be a critical business asset and who can ill-afford the distraction of the complicated and time-consuming process of restoring credit and identity records.

That’s why we’re also offering Identity Recovery coverage, a new and better type of identity theft insurance specially designed for business owners. It pays legal and other expenses you incur to restore your personal credit and identity records. But your time away from work to resolve the problem is the real cost of identity theft. We selected this program because it includes professional services to help you navigate and speed the process and take on as many steps as possible on your behalf.

Learn about protection for information exposures.

Data breach and identity theft are real risks and their aftermath is complicated, costly and requires help from trained professionals. Contact our office to learn more about the new coverages we offer that respond to these crimes.

Motorcycle Season is here!

Karen Toll — Fri, 23 Mar 2012 13:52:20 GMT

Spring is here. That means it is Motorcycle season! Did you know that there are over 8 million motorcycles in the United States and that the average age of a rider is 41? We have several carriers that offer coverage for Motorcycles, ATV’s, Golf Carts and Scooters and Mopeds. Some of our carriers offer discounts for policies paid in full, homeowner discounts, claims free and discounts for taking safety courses. They also offer 24 hour service. Call us, we’ll be happy to get a quote for you.

Remember: Safety first, Look Twice- Save a Life. Motorcycles are everywhere!

Planning a Spring Wedding?

Wed, 14 Mar 2012 21:36:56 GMT

Let us take some of your worries away. Did you hear about the bride that went to pick up her pre-paid dress and there was a sign on the door saying that the dress shop was out of business? How about the couple heading out on their honeymoon and there is a hurricane and they have paid a non-refundable amount of money. What if your groom or bride is called to active duty right before the wedding?

Will your cake/caterer/venue/entertainment/photographer/transportation return your deposit? Traveler’s Insurance Company can provide Wedding Insurance tailored to your needs! Contact us or give us a call at 859-431-1235, we’ll be happy to get a quote for you.

Choosing the Right Life Insurance Policy

Trusted Choice — Tue, 14 Feb 2012 14:08:00 GMT

With more than 2,000 companies offering life insurance, there is stiff competition for your business and a wide array of policy choices, too. So how do you navigate all these choices? You’ll want to read on to learn how to select the right life insurance policy:

Term vs. Permanent
Knowing which policy to select will depend heavily on your family’s needs. And selecting the right life insurance policy also requires you to know the difference between a term and a whole life policy, and the difference between a cash-value policy and an annuity. Once you have a firm grasp on these you’ll be in a better position to know which policy you should purchase.

Term insurance
This type of policy comes in two basic varieties: “level term” and “decreasing term.” The words “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level-term policy, the most popular type, pays the same benefit amount if death occurs at any point during the term, while “decreasing” means the payout will do just that over the policy’s term. Common types of level term policies are:

Yearly renewable term
5-year renewable term
10-year term
15-year term
20-year term
25-year term
30-year term
Term to a specified age (usually 65)

The most common type is the 20-year term policy. Be aware that most companies will not sell term insurance for a term that ends past an individual’s 80th birthday.

Generally, the premium for a term policy will be based on your age and health at the policy’s inception and the premium will remain the same throughout the length of the term. For instance, premiums for a five-year renewable term will be level for five years, then change to a new rate reflecting your new age and health at the time of the policy’s renewal. Some longer term policies will guarantee that your premium will not increase during the term; others don’t make this guarantee, which means the insurance company could raise your rate during the policy’s term.

Some term policies are convertible, meaning that you can change it into a permanent life insurance policy without having to prove your insurability. Be sure to ask your agent about this feature, especially if you anticipate significant life changes in the future, such as getting married and having children.

Permanent Life Insurance
Permanent life, sometimes called whole life insurance, pays a death benefit to your beneficiaries following your death—there is no age limit. There are three major types of permanent life insurance: traditional whole life, universal life and variable universal life, and there are variations within each type. Here’s a brief look at each:

Whole or ordinary life. This is the most common type of permanent policy. It offers a death benefit and a savings account. With this type of life insurance policy you will pay a set amount in premiums on a regular basis for a specific death benefit (i.e., $300,000). The policy’s savings vehicle will grow based on dividends the company pays to you.

Universal or adjustable life. This policy provides more flexibility than whole life insurance. You may be able to increase the death benefit if you pass a medical examination. The savings vehicle, called a cash-value account, generally earns a money market rate of interest. After money has accumulated in your account, you will also have the option of altering your premium payments—if there is enough money in your account to cover the costs.

Variable life. This policy combines a death benefit with a savings account that you can invest in stocks, bonds and money market mutual funds. The value of your policy will likely grow more quickly, but you’ll also have more risk. Some policies guarantee that your death benefit will not fall below a minimum level.

Variable-universal life. With this type of policy you get the features of variable and universal life policies. You have the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust your premiums and death benefit that is characteristic of universal life insurance.

As a basic rule, if you want an investment tool with your life insurance, a permanent policy is the choice for you. If you desire only the death benefit, a term policy is the route to take.

Get These Features
As you conduct your search here are three key features that you should ensure are in your policy:

Guaranteed renewable. Your premium may change but you will not have to provide evidence of insurability to keep the coverage.

Periodic updates. This option allows you to increase benefit levels periodically during the life of the policy.

Cash out. If you need money for an emergency this option enables you to liquidate the policy without losing all you’ve deposited in premiums.Keep your coverage current.

Once you’ve secured a life insurance policy, you should update its benefit levels and beneficiaries as changes occur in your life. Many life-changing events—such as getting married, having a child or buying a big house—will increase the amount of coverage you need. Conversely, other events—such as children moving out and becoming financially independent—may decrease the coverage you need.

Keep your coverage current.
Once you’ve secured a life insurance policy, you should update its benefit levels and beneficiaries as changes occur in your life. Many life-changing events—such as getting married, having a child or buying a big house—will increase the amount of coverage you need. Conversely, other events—such as children moving out and becoming financially independent—may decrease the coverage you need.

Live right.
Most people understand that their lifestyle may affect their life insurance premium, but many people do not realize just how much. For example, rates for tobacco users are often more than double than those for non-tobacco users. Similarly, genetic illnesses, such as diabetes, may affect your premium.

The first step in increasing your insurability and saving money on your life insurance premium is to improve your health. Be diligent in maintaining your health through routine check-ups with your doctor. Exercise regularly and eat healthy. If you take medication for a condition, such as diabetes or high blood pressure, keep track of your progress and share it with your insurance company, if necessary. These efforts will not only improve your lifestyle, they may also help you save money on your premium.

Now is the Time
Because the life insurance marketplace is so competitive there has been a steady decline in premium rates over the past 10 years. So if you are in good health, it should be relatively easy for you to get life insurance at a reasonable premium.

Get Expert Assistance
If life insurance sounds overwhelming, a Trusted Choice^® insurance professional can help you review your life insurance needs and find the best policy type for your family.

Winter Storms Ahead: Are You Ready?

Sat, 11 Feb 2012 15:02:00 GMT

We admit it: As insurance pros, our picture of winter isn’t exactly cozy. Winter storms mean traffic snarls, hillsides turning to sheets of ice, and cars sliding around like hockey pucks. Cold temperatures can cause pipes to burst, frost swells and other damage. Heating your home with fireplaces and holiday lighting can increase the risk of fire.

A picture-perfect winter requires a few precautions

Here are a few of our top tips to help reduce weather-related hassles this winter.

Winter-proof your car with good snow tires or chains, new wiper blades, antifreeze, and emergency road supplies.

Keep your attic cool to help prevent ice dams. Insulate the attic floor and make sure it is well-ventilated.

When winter storms hit, be smart

If you do not have to drive, stay put. If you must drive, make sure you’ve winterized your car and have a full tank of gas.

When the air is cold, keep bath and kitchen cabinet doors open so warm air can circulate around pipes. If pipes do freeze, let them thaw normally—they’ll be less likely to burst.

And if the power is out, make sure you avoid leaving candles or fires burning unattended. If you use a portable generator, follow the instructions and do not use it indoors.

Know what your insurance covers

We want to help you rest easy. You will be more relaxed when you know you have prepared your property to lessen the chance of winter storm damage. Your insurance policy covers repair or rebuilding costs. However, your deductible does apply. Check your policy to see what is covered and to confirm the deductible you have chosen.

If you have any questions at all about your coverage, call Chas. H. Bilz Insurance Agency, Inc. at 859-431-1235 and we will help you review your options.

Is insurance for an old car necessary?

Trusted Choice — Fri, 10 Feb 2012 14:05:00 GMT

Should the age or value of your car make any difference to the cost of your auto insurance? For some insurance coverages, the answer is no.

Take liability coverages, for instance. These are the limits that protect you when you injure someone or someone else’s property with your car and are being held liable for the damages. It doesn’t matter whether you run over someone with an old clunker or a new SUV. And you will need liability insurance to cover your legal costs and pay the damages if you are found responsible.

Medical coverages? Uninsured or underinsured motorist coverage? Again, it does not matter if you or your passengers are injured in a 1979 Dodge or a 2002 Mercedes. These coverages are still necessary.

The only coverages you should consider altering simply due to the age or value of your vehicle are the ones that will actually pay for damages or loss of your car. For example, if your car is stolen and never recovered, your insurance carrier owes you the actual value of your car less any deductible. If your car at the time of the theft is worth $11,500 and you have a $250 deductible, your insurance should pay $11,250. If you have an old car worth $1,150 with the same $250 deductible, you are due only $900. Quite a difference! And the math works the same for a collision or any other type of covered damage.

Naturally the price you pay for your physical damage coverages goes down along with the value of your car. And as long as you still are making car payments, the bank will require you to keep these coverages in effect. Once you pay off the car loan, consider if the amount you may receive for a total loss (minus your deductible) is worth the premium.

One rule of thumb is to consider the car’s remaining useful life. Multiply the number of years by the annual premium. Compare that to how much you will receive for a total loss. How good a deal do you think it would be to keep paying that part of the premium? This is totally subjective. Consider your peace of mind. Even a car that some consider worthless is worth insuring if the loss would cause you to lose your sole method of transportation. Even if your insurance didn’t pay much, if it is enough to get you into another car that meets your needs, then that is a price that may be worth paying.

How do you know how much you will get for a total loss? Generally insurance companies will look at common references for valuing vehicles, such as the “blue book” or average price a similar vehicle is selling for in your area. Ask your Trusted Choice^® insurance professional what guidelines your particular insurance carrier will use and plan accordingly.

Physical damage to your old car is the one place in your personal auto insurance it may actually make sense to minimize or eliminate coverages. You not only face getting less money from a settlement, but if you are like many, a scratched fender may not seem nearly as important to fix when the rest of the car is being held together with duct tape.

Home Inventory: Know Your Stuff

Trusted Choice — Wed, 08 Feb 2012 14:04:51 GMT

Most people know that a homeowners or renter’s insurance policy is crucial when it comes to protecting your home from a fire or other disaster. However, if you want to safeguard your valuables from the unexpected, there’s another important document you may be overlooking: a home inventory.

If disaster strikes and your home and belongings are destroyed, a home inventory makes the insurance claims process a lot simpler, and it helps you get your possessions replaced quicker. While creating this inventory may be a time-consuming task, it doesn’t have to be completely daunting. Check out the following simple tips for compiling your home inventory:

• Details, details, details. A home inventory includes a comprehensive list of all your belongings, along with receipts, photos, and descriptions.

• Divide and conquer. Instead of making one long list of your items, break it down by room and/or type of item, such as clothing, heirlooms, electronics, and jewelry. This will make the home inventory less overwhelming and decrease the chances that you’ll overlook something.

• Know what your stuff is worth. If you have antiques, family heirlooms, or other valuables that don’t have receipts, you may want to have them appraised in order to determine their value.

• Look behind closed doors. When taking your inventory, make sure you don’t overlook items that are stored in the closet, drawers, attic, or garage. Bicycles, holiday decorations, and sports equipment may be out of sight, but their cost adds up. Make sure you include everything – even if it’s in storage – on your list.

• Add it up. Once you have a full document of all your belongings, along with their values, add up all the items in your home and their total cost.

• Keep it safe. Store your complete home inventory with your insurance policy in a safe, easily accessible place, such as a fireproof box, safe deposit box, or other secure location.

• Take stock annually. Remember to review and update your inventory each year, or whenever you make a significant purchase, to ensure your new items are documented.

If you’re looking for a useful tool to help with your home inventory, keep an eye out for the release of the new Trusted Choice mobile app, which includes a handy home inventory tool. Available in the Android Marketplace and iTunes App Store in February 2012. For help obtaining coverage for your posessions, find a Trusted Choice independent insurance agent near you.

Sounds too Good to be True: Downloading Illegal Music

Trusted Choice — Sat, 04 Feb 2012 13:57:00 GMT

Remember the days of curling up to the radio on a Saturday night, torturing yourself through commercials and lame tunes just to be able to crank it when Mr. DJ played your favorite song?

No longer does one require the patience to spend an entire evening anticipating the next round of “Love Me Tender” or the BOC’s “Godzilla.” File-sharing programs make an instant world faster—obtaining music and video clips with a click. Popular versions like iTunes legitimize the process through pages of service agreements and per-transfer fees, but every program is not so “official.”

Unauthorized file sharing is easy, cheap (meaning free) and illegal. Consider the recent case of BMG Music et al v. Cecilia Gonzalez. In this case, a federal court ruled that the illegal downloading of songs by a consumer (as in the individual doing the downloading, not the entity responsible for the file-sharing platform) constituted copyright infringement. The damages awarded against her totaled $22,500—for downloading 30 songs at $750 penalty per song.

Seem steep? It could have been much worse. The defendant had actually downloaded 1,370 songs. Federal law permits an assessment of $30,000 per song. Had they chosen the full course of action, damages against Gonzalez in this case would have resulted in over $41 million!

This case is proof that the federal government intends to secure the integrity of copyrights, even if it means rendering judgment against individual consumers. The bad news for these consumers is that such a judgment will not be covered by homeowner’s insurance.

Personal liability afforded under a typical homeowners insurance policy does not cover liability claims that do not involve bodily injury or property damage arising out of an “occurrence.” Since “occurrence” constitutes an accident or exposure to harmful conditions, it is not likely the insurance company will look any further to find a reason to provide you with coverage (downloading that latest Springsteen track for free was no accident).

Even if you did jump that hurdle, you’re still fighting an uphill battle. Property damage constitutes physical injury to tangible property: ripping off mp3 files hardly fits the bill.

Even homeowners with personal injury liability (which extends liability insurance to pay claims such as libel, slander, and violation of privacy rights) are exposed: This insurance says nothing of covering claims of copyright violation, nor will it cover criminal acts.

This information should serve as a somber reminder that households downloading illegal files are in danger of incurring a large out-of-pocket expense that no personal insurance intends to pay. Parents should be especially careful; in many households it is not mom or dad downloading the copyrighted music. A look at the music library on many children and teenager’s computers could shock you—they could have hundreds or thousands of songs. If your children are file-sharers, check their preferred sources for legitimacy and remind them why this is important.

When it comes to downloading music, “free” can come with a big price. Enjoy the tunes but proceed with caution. Ask your Trusted Choice® independent insurance agent to talk with you about these and other possible exposures.

Tips for unoccupied or vacant homes and properties

Travelers Insurance — Thu, 02 Feb 2012 16:53:00 GMT

When properties are left vacant or are unoccupied, steps should be taken to prevent or mitigate losses due to heating system, electrical system, water damage, vandalism or other causes.

Heating system/Electrical

The heating system should be cleaned and inspected by a contractor to help ensure it is working properly, especially through the winter months, to reduce potential damage from fire and freezing.

If LP gas, propane gas or oil heat is used, ensure the fuel levels in the tank are checked periodically to prevent running out of fuel.

If the home is not to be heated, have the fuel turned off at the main shut-off valve to reduce the malfunction/ explosion potential. The valve should be checked to ensure it is working properly.

The home should be checked regularly (at least once a week) to ensure the heating system is operating properly.

Be sure the electric power is not shut off since this will shut down the heating system. If electrical service to the home is to remain on, inspect main electrical panel, wiring and outlets; and repair or replace any defective or deficient items.

Chimneys should be inspected by a chimney service and, if necessary, cleaned to ensure that they are free from obstructions such as nesting birds. Install chimney guard screen-caps to help prevent any infestation.

Water damage

If the heating system is to be turned off completely, have the plumbing system drained (or properly winterized) to prevent freezing damage.

If hot water heating system and/or water pipes will not be drained, have a water flow sensor and low temperature sensor installed and hooked into a centrally monitored alarm system; and keep thermostat at a consistent temperature throughout the winter months.

If water will not be turned off, shut off dishwasher and washing machine hoses to prevent serious water damage losses. Insulate any water lines that run along exterior walls so the water supply will be less likely to freeze. Follow manufacturer’s instructions closely if heat tape is used on piping to prevent fires. Open cabinet doors to allow heat from the room to get into concealed spaces. Drain and shut off outdoor water faucets to prevent vandalism and freezing damage.

If a separate hot water heater is present, inspect for leaks. If in an earthquake area, confirm it is retrofitted (e.g., strapped to the adjacent wall).

Check weather-stripping, insulation, and exterior doors and windows to ensure no major deficiencies are present. Water and insects can enter through these openings.

Inspect roof for any evidence of damage, leaks, missing or worn shingles/ridges; and replace or repair damaged, worn or missing shingles to help prevent wind, water damage or damage resulting from water backup of ice that forms around the edges.

Inspect for ice dams on the roof that can prevent melting snow from draining off the roof, which in turn can back up and cause interior water damage.

Inspect attic and basement for any evidence of water damage or mold. Fix all leaks, keep appliances clean, and increase ventilation to prevent the growth of molds and bacteria and reduce potential for invasion from unwanted insects or rodents.

Gutters and downspouts should be checked and cleaned, if necessary. Clogged gutters can result in basement flooding when the snow melts in northern climates and/or water damage to interior walls in any climate as the water is no longer channeled properly. Check the downspouts and extensions to make sure water is diverted away from the house and does not pond next to the foundation.

Vandalism

Notify the police department that the property will be vacant, and provide emergency notification phone numbers.

Clear snow from driveways, sidewalks, hatch covers and dryer vent openings to reduce slip-and-fall liability losses, reduce the potential for the home becoming a target for vandals by appearing to be unoccupied or vacant, and prevent melting snow from leaking into the home and causing damage.

In temperate climates, make sure lawn is mowed and maintained regularly (e.g., free of debris or garbage).

Promptly repair any significant hazards (e.g., missing or broken railing or steps, broken windows, etc.) to increase the appearance the home is regularly occupied.

Have mail and newspapers forwarded to appropriate address or picked up on a regular basis. Even if all mail is stopped, the home should be checked at least weekly to ensure unread mail, flyers, leaflets, etc., do not build up and add to the vacant/unoccupied appearance of the property.

Secure external doors and windows with high-quality deadbolt locks, security-type hinges, and sturdy door frames that cannot be spread apart. Slide locks or other equivalent security locks should be installed on sliding glass doors or French doors.

Install variable light timers to increase the appearance the home is regularly occupied, and ensure the lights do not turn on and off at the same time every day.

Miscellaneous

Remove dead trees or overhanging large tree limbs from the property that could cause damage.

In higher wind-exposed or coastal areas, install storm shutters (or other mitigation measures, such as 5/8” marine plywood) to secure windows ahead of a potentially damaging storm. Anchor fuel tanks and other storage tanks.

Install smoke detectors on at least every floor (preferably tied into a centrally monitored fire alarm system so the fire department will automatically be notified in case of an alarm), and confirm that the sensors and system are tested regularly. Install carbon monoxide detectors and test them monthly, especially if the home will be shown to prospective buyers periodically.

Have the home tested for radon and lead. If the level of either is unacceptable, take appropriate steps to correct the problem (e.g., install a radon reduction system, encapsulate lead paint, etc.).

Is a GPS Covered by an Auto Policy?

Trusted Choice — Wed, 01 Feb 2012 16:05:52 GMT

Some may view them as science fiction gone wild. Others see them as indispensable, possibly life-saving tools. Regardless of your feelings about Global Positioning Systems (GPS), they continue to occupy the dashboards of millions of U.S. vehicles each year. The pervasiveness and expense of the technology has drivers asking if their GPS systems are covered by auto insurance.

Personal Auto Insurance

Whether its finding alternative routes to beat traffic or an Italian restaurant for the family, drivers rely on their GPS to get them places without the stress of winding up who knows where with an empty tank, no cellular service and shrieking children.

If you depend on your GPS to maintain safety and sanity in your personal vehicle, you should call your Trusted Choice® independent insurance agent and request that your auto insurance policy be endorsed to cover the system; failure to make this request will likely result in no coverage for the system after a loss. This is because most personal auto policies strictly limit or totally exclude coverage for GPS and other electronic devices in your car that are not used to operate the vehicle. Some policies will offer limited coverage for GPS devices that are built into the vehicle by the manufacturer or even some portable systems; however this is not the case for all policies and those that do include coverage are limited.

Business Auto Insurance

Any business person who has ever gotten lost finding a jobsite or received lousy directions to a meeting can attest to the value of a GPS system. Many businesses invest thousands into such systems for the mobile among their ranks—an investment that could be lost if the system is damaged in a crash or stolen.

Similar to personal auto insurance policies, covering a GPS device under a business auto insurance policy likely requires a call to your insurance agent. Your Trusted Choice® independent insurance agent should be able to endorse your policy to include coverage for the GPS system. This endorsement is necessary for most business auto policies—those that do extend coverage to the GPS system will do so only in a limited capacity; still leaving you with a bill for the damage.

Moral of the Story: Call Your Trusted Choice® independent insurance agent

Regardless of the level of dependence you invest, losing the ability to use your vehicle’s GPS system because it is damaged in an accident or stolen is frustrating and expensive. Calling your agent will help you discover how much coverage your current auto policy will offer towards replacing the damaged system. If your current auto policy does not offer any coverage, your agent can discuss with you how to close this gap.