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Five Ways Minimum Insurance Can Cost You

January 23, 2015 triplestrength

Imagine you are driving down the road in your used car. It was a good deal, costing a fourth of what a new car would cost, and as a relatively inexpensive vehicle, you forgo collision coverage to save money. At a stoplight, you glance up into the rear-view mirror and a pickup truck is pulling in behind you. Suddenly the back window shatters, you lurch forward and come to rest askew in the lane. You are able to get out of the vehicle, and you notice the driver of the pickup truck is struggling and in clear distress, so you call 911 for an ambulance.

It turns out the other driver had been stung by a bee that had flown into his cab moments before he rear-ended you car. The driver was able to administer his Epi pen and will be OK.

Did you know that in this scenario, the other driver’s insurance may not pay?

Insurance liability covers a myriad of incidents, but there are some instances where the other driver can hit your car but their insurance is not liable to pay for your property damage. They include:

A collision caused by a medical emergency. A heart attack, a bee sting or an episode from an undiagnosed medical condition may be the root cause of the accident. In these cases, the insurance on the vehicle that struck yours may not be required to pay.

Accidents caused by another accident. If a driver that hits your vehicle as a result of another driver that hit theirs, the policy on that vehicle may not have to pay.

You are hit by an emergency vehicle. In the event of a collision between a fire truck, ambulance, or police squad car, the insurance carried by the government may not provide coverage. In most cases gross negligence on the part of the driver of the emergency vehicle must be established in order for the insurance to pay. A good reason to always keep an eye out emergency vehicles and listen for sirens, and to safely yield as soon as you can.

Collisions caused by hitting an animal. If a driver that hits your car was first hit by a deer, there really is nobody at fault – it was a true no-fault accident. The other driver’s insurance may not be obliged to pay for your vehicle.

Accidents that result from another person’s negligence. Ever see something fall off a truck on the road ahead? If you are hit by a driver who swerves to avoid a dresser that falls from an improperly secured load, that driver’s insurance may not be liable.

These scenarios are more common than you might think, and are good reasons to keep collision coverage, even on an older car. Call O’Connor Insurance Agency at 314-434-0038 to talk with one of our independent agents about car insurance coverage, and how to best adjust your policy to meet your needs and budget.

WARNING! Prevent Freezing Pipes During Dropping Temperatures!

January 7, 2015 triplestrength

Just because your pipes made it through previous St. Louis winters does not mean they will withstand the upcoming dropping temperatures. We never know why one winter’s degree of cold penetrates the pipe’s insulation, or lack thereof, resulting in the freezing and bursting of the pipe.

If you live in a condominium or attached-home, you might be especially concerned because your neighbor’s water from their burst pipe could become your nightmare. Be sure to share the tips below with your neighbors. Or, if you have greater concerns about vacant units, be sure to bring those to your Board member’s attention.

1. If you have outside faucets, remove all hoses and turn off the inside shutoff valve. If you forgot, do it NOW, so that if the pipes have frozen, the resulting water will not run into your home when the ice thaws. If there is no individual shutoff valve, check to see if the pipe appears frozen, and BE HOME WHEN IT THAWS in order to shut off water to the whole house if the pipe breaks.

2. If you have plumbing fixtures on an outside wall, be sure to leave vanity or cabinet doors open so heat can get to the pipes. You may wish to leave the hot and cold water running slightly as an added precaution.

3. Be sure your heat is set at no less than 65 degrees, day and night, while the outside temperature is less than 20 degrees.

4. If your home will be unoccupied for a time, DO NOT TURN YOUR HEAT OFF! If your home will be unoccupied for an extended time, it is safest to arrange to have your home’s water system winterized. If you don’t winterize, at least leave these instructions and your key with a neighbor or relative, in case of severely cold weather.

November 2014 Green Energy Report

December 4, 2014 triplestrength

O’Connor Insurance was an early participant in the Green Power Community Challenge. Each month we post our carbon offset results from our solar energy array on our headquarters in Creve Coeur.

We are proud to be doing our part to make Creve Coeur one of the leading communities nationwide in deriving our power from renewable resources.

This month, our carbon offset is 1,018 lbs. We have offset the equivalent of 12 trees.

Thanks to our solar vendor, Microgrid Solar, for the photo.

Novembers Energy Tip – Decorate with LED lights for the holidays. (From the My Money Blog)

Buy new LED holiday lights, which use at least 75 percent less energy and last 25 times longer than older, incandescent lighting. In addition to consuming less energy, LED lights don’t emit as much heat and are more resistant to breakage, making them a safer alternative. Bonus tip: Always unplug your holiday lights before going to bed or leaving the house. As with all appliances and electronics, your holiday lights will continue to draw power even when not in use, which adds unnecessary expense to utility bills.

Is Ice Melt Safe for Pets?

October 30, 2014 triplestrength

With any winter storm, homeowners and condo owners have to deal with snow and ice on parking lots, driveways and sidewalks. For most homeowners and condo associations, chemical ice melt is used to keep sidewalks clear. Many residents in our communities have pets. Is the ice melt you or your community association are using safe for pets?

Traditional ice melt is not much more than chunky table salt. In small amounts, it is relatively non-toxic. However, a pet that likes the taste of salt may lick it enough to get sick. Walking on ice melt can cause injury too. Salt chunks can be sharp, and these can cause painful injuries to the paws of our pet friends, not to mention salt in the wounds!

Further, salt also can dry out the soft pads of your pet’s paws. Dried out skin can crack and become painful or even infected. The various formulations of ice melt are going to pose different hazards, from chemical burns to potential poisoning. Fortunately, there are pet-safe ice melt formulas available. Morton Salt makes “Safe-T-Pet.” Petco carries Pestell’s “Paw Thaw” and True Value stores carry “Safe Pet” ice melter. Most major retailers will have some sort of pet-friendly ice melt.

If your community is using a lot of ice melt, a few tips can help your pet on their walks.

Massage some petroleum jelly onto the pads of their paws before going out – this will help with the cold and afford protection from salt.
Keep a towel handy to occasionally wipe their paws clean of any debris.
If your pets will wear them, booties can protect their paws from the elements.
Watch your pet when out for exercise and prevent them from consuming any of these chemicals.

We at O’Connor Insurance love our pets, and we hope yours are able to enjoy the winter months free of illness. If you have any questions about insurance matters pertaining to ice and snow on your property, or the property managed by your community association, please contact one of our independent insurance agents at 314-434-0038.

Common Ground Liability

October 15, 2014 triplestrength

Within a development for which a community association is responsible will be common grounds. Common grounds are those areas and structures that are shared among the residents, that are not part of any property owner’s tract of land. Responsibility for common grounds typically lie with the homeowner’s association or the condo owners association. Here are a few thoughts on insurance for common grounds:

Carry Liability Insurance – Any accident or injury that happens on common ground could create a liability for the community association. Talk with your insurance agent about an umbrella policy that will cover events such as a slip and fall, or if a person is hurt on a piece of equipment on the common property.

Carry Enough Insurance – Having sufficient liability insurance for common grounds is very important. In some situations, unit owners in a condominium development may have difficulty selling their condo if lenders determine there is not enough liability insurance. Over time, a condo board or homeowner’s trustees may need to update their coverage levels to match that which is currently required.

Maintain Structures and Features – Structures such as decks, gazebos, playground equipment, and tennis courts should be kept in good repair. Injuries that can be traced to maintenance negligence can make an unfortunate situation much worse. While it is unlikely that a policy will not pay the injured party, poor maintenance can result in a community association being dropped from a carrier altogether. Poor maintenance practices will also make it difficult to get coverage and will certainly make rates higher.

Periodically Review Coverage – As your community association makes improvements to the common grounds, removes or adds features or change the size and scope of the property for which the board is responsible, they should review their coverage with their independent insurance agent. For instance, if a board invests in a program of maintenance and improvement, it is quite possible their insurance rates could go down, or their property might be eligible for coverage with carriers that were not able to write a policy in the past.

Among the independent agents at the O’Connor Insurance Agency are experts in community association insurance. Homeowner’s association board members, condo board members, and association trustees are welcome to give us a call at 314-434-0038 for any questions relating to liability insurance for communities.

Four Considerations for Long-Term Care

October 8, 2014 triplestrength

In the event of a serious illness, Long-Term Care insurance can protect your family’s financial health by providing resources to cover the costs of care at a medical facility or help at home. Here are four things to consider when looking for long-term care (LTC) coverage:

Tax Implications for Long-Term Care Premiums. Depending on your individual tax circumstance, LTC premiums might be paid with pre-tax dollars. Typically, a taxpayer has to itemize their return, and the amount of your deduction has limits. It is important to talk to your tax adviser to see how the deductibility of LTC insurance will affect the amount of coverage that will fit your budget, and work with your independent insurance agent to find the right coverage for you.

Buy Long-Term Care Insurance When You Are Younger. Many who purchase LTC insurance when they are relatively young and healthy (50-65) will enjoy lower premiums than those who purchase later in life. Typically premiums will not increase on an individual basis, however, it is possible for a company to increase the premiums for a class of policyholders. Your independent insurance agent can detail under what circumstances an increase can occur, and the history of increases from an insurance carrier you are considering for LTC insurance.

Is Your Long-Term Care Insurance Company Highly Rated? Any insurance company can run into financial problems if they have a class of policyholders making unexpected claims. Usually, they will increase the premiums unless the premium is “guaranteed.” Before buying insurance, check their rating from AM Best, Standard & Poor or another agency. Talk with your agent about the history and stability of a company you are considering. It is also wise to check periodically how a company is doing – a smart move for all your insurance coverage.

Upgrade or Replace Your Long-Term Care Policy? As LTC insurance matures as a product throughout the insurance industry, you may learn of an attractive option currently offered that was not available when you purchased your current policy. Consult with your independent insurance agent about the pros and cons of changing companies. It is possible that this new option is offered by your current company at a modest cost, negating the need to switch companies.

Long-term care insurance can be a great benefit to your family. Your independent agents at O’Connor Insurance Agency are ready to help you determine if LTC coverage is right for your planning. Give our office a call at 314-434-0038 to speak with an agent about long term care insurance.

Insurance and Replacement Cost

October 5, 2014 triplestrength

One of our clients suffered a total loss after a fire in their home. The fire began in their garage and swept through their 1980s era ranch. What the fire did not destroy, water used to douse the flames ruined. Even the foundation was damaged.

As the reconstruction of their home was planned, the client discovered that rebuilding the home with modern materials would actually cost more than the original value of the home. Would rebuilding the home be covered with the insurance settlement, or would they have to budget for a new mortgage?

Our client asked a smart question. Material and labor costs can fluctuate. During a housing boom, the cost of lumber, plywood and other materials can go up as demand for these materials inflate. Hiring skilled labor during busy times can drive up costs as well. It is not unusual for the cost of replacing a home to jump up well beyond the home’s appraised value. Housing codes change as well, and what is allowed today may cost more than was allowed in the past.

Most mortgage companies require you carry enough insurance to at least cover what is owed on the property. A good agent will encourage their clients to carry enough insurance to cover replacement costs. That said, there are at least two ways replacement costs can be insured, and the type of coverage you choose will guide how you manage your insurance.

Guarantee Replacement Cost – This kind of coverage will insure the home against loss so as to completely replace what was destroyed. In the event of a loss, and less the deductible, total construction and material costs will be paid, regardless of the dwelling limit on policy. This is the ideal coverage. The total rebuilding costs of a home appraised at $250,000 would be covered by the insurer no matter how much the costs exceeded the apraised value.

Extended Replacement Cost – With coverage of this nature, the insurance company will cover a percentage of reconstruction costs above the value of the home. Typically, this percentage is in the range of 20-30%. Rebuilding costs for a home that appraised at $250,000 would be covered up to $300,000 to $325,000.

Many insurance companies are no longer offering full replacement cost policies in favor of extended coverage policies.

For homeowners, this change in how policies are structured means they should have regular reviews of the value of their home and the cost or reconstruction in their market. If reconstruction costs have risen, the homeowner and their agent should adjust their coverage to make sure that their likely replacement cost falls safely within their coverage.

Those who are insured for full replacement cost have less to consider from year to year as their home. Budget conscious homeowners may save money on premiums by switching to an extended coverage policy.

The independent agents of O’Connor Insurance Company can help you identify possible gaps in your coverage. If you would like to review your coverage, contact us and we will be happy to help.

Please contact one of our independent insurance agents at 314-434-0038.

Cars at College

September 20, 2014 triplestrength

All over the USA, parents are taking their kids to college. Along with clothes, backpacks, mini-refrigerators and a laptop, many of these students will have a car. Being at college with a car away from home is a new responsibility. Here are a few tips to share with your new collegiate about their car as it relates to insurance.

Tell your insurance agent. Your agent will need to know where the car will be used and update your policy. Rates vary from community to community. With an up-to-date policy, you are assured of having valid coverage.

Make sure the vehicle is maintained correctly. Regular maintenance on brakes and tires will help your student avoid an accident. Other maintenance such as oil changes and just getting junk out of the car, cleaning windshields, and replacing wipers will also help parents keep their peace of mind.

Keep the insurance card in the vehicle. Most states require that the insurance documents be available on demand by law enforcement. This is a good item to double-check.

Make sure your student at college knows what to do in the event of an accident. We recommend that the student take time to go through these steps for an accident:

Stay calm
Check to see if anyone needs an ambulance
Call for an ambulance if needed
Call for the police

Also use your Phone to:

Exchange driver’s license, phone number, names, and insurance information with the other driver
Get contact information from any witnesses
Take photos of the scene

Will friends be borrowing the car? You and your new college student should work out whether or not any of his or her friends can borrow the car. Generally speaking, liability insurance follows the vehicle. It is a good idea to make sure your student understands if his friend wrecks your car, your insurance will be affected.

College discounts may be available. If your son or daughter is a good student, many insurance carriers offer substantial discounts for academic achievement. A good incentive for your new student to hit the books!

At O’Connor Insurance, we are ready to help families with their insurance needs as changes such as kids going to college begin to take place. For questions about how to best insure your student’s car, call one of our independent agents at 314-434-0038.

Condominium Master Policy Basics

July 3, 2014 triplestrength

If you own a condominium, or are a member of the condominium association board, you may have heard of the master policy. The master policy provides liability protection and covers the real property of the condominium buildings. In the event of a fire, storm, or other loss, where roofing, siding, wiring, or plumbing could be damaged.

With some exceptions, the master policy will typically protect portions of the individual unit itself such as the drywall, paint, cabinetry, lighting, and all attached fixtures.

The unit owner’s personal property such as furnishings, electronics, clothes and other possessions are not covered by the master policy. For example – let’s say there is a fire on the deck of your condo. After the fire department finishes, you find the deck, the siding and wall, as well as parts of the kitchen floor were burned. In addition, the walls of your kitchen, some of the wiring, and your kitchen table and chairs are damaged by water.

Generally, the master policy would cover replacing or repairing the deck, siding and walls, and the floor damaged by the fire. The ruined wiring would also be covered. The condo owner’s insurance policy would cover damage to the kitchen table and chairs. A master policy might not cover any upgrades to the condo unit that the owner made, such as updated counter tops or a solar energy system.

The master policy does not cover living expenses during repairs, however both of these can be covered by a unit owner’s policy.

It is important that both the condo owner and the condo association board know what is and is not covered under likely scenarios. Both the master policy and the individual unit owner policy will likely have a deductible. How deductibles are managed between the master policy and the individual policy is an opportunity to save money for both the association and the condo owner in the event of a loss. How this might play out in a loss should be understood ahead of time and procedures should in place to serve the interests of the community and unit owner.

The insurance agent for the master policy should periodically review what is and is not covered under the master policy for an association and detail how deductibles are allocated. Your insurance agent should be available to participate in a question and answer session at a condo owner’s meeting. New condo owners will need information on how to best structure their personal coverage and current residents might benefit from a refresher. O’Connor Insurance recommends such a review at least once per year.

If you have questions about condo association master policies, individual unit owner policies or specific questions about your insurance policy, give our office a call at 314-434-0038.

Five Facts About Workers Compensation

July 3, 2014 triplestrength

In the state of Missouri, your business is not required to carry Workers Compensation coverage if you have fewer than five employees, with the exception of construction trades. Construction firms have to carry Workers Compensation if you have one employee other than yourself. In Illinois, you are required to have coverage if you have three or more employees, with the exception of construction trades where, like Missouri, you have to have the insurance with one or more employees.

That said, even small businesses who are not required to have Workers Compensation should know the risk of not being covered and the benefits of being covered. Here are five facts about Workers Compensation every business owner should know:

1 Accidents Happen – Even if your business is wrapping pillows in bubblewrap, one of your employees can be injured. Having a safe workplace is key to keeping the cost of coverage under control, but injuries can occur in even the safest environment.

2 You Can Get Coverage for Any Number of Employees – Workers Compensation is available for businesses even if you are the only employee. With coverage, you are protected for medical expenses, disability, and lost wages in the event one of your employees – even part time or contract employees – are injured while working.

3 Penalties are Steep – If your employee is injured on the job, and you lack required Workers Compensation, the penalties can be steep, a minimum of $50,000 fine!

4 You Can Be Sued Personally – Many small businesses feel a kinship with their employees, but that does not mean an employee will not sue your company – or even you personally. Depending on how your business is organized, the employer could be liable for a settlement, even if the company goes out of business. As much as you may like your employees, it is smart to have insurance that protects your own family and future.

5 Workers Compensation is Affordable – When you consider the costs and consequences of losing an employee to injury – even just for a few weeks, the cost of a policy makes a great deal of economic sense. Your independent agents at O’Connor Insurance can help you find the kind of coverage you need at a price that will fit your budget.