The Beacon…shedding light on important insurance issues.

The Beacon is an insurance newsletter designed to help our clients learn about important insurance issues and coverages. As your insurance agent it is our job to not only write your insurance policies, but also help you understand insurance. We feel that by having this understanding, however basic, our clients have a distinct advantage in making good financial decisions.

The articles highlighted in The Beacon are chosen from common customer questions, new coverages or just tiny quirks we see and think you should know about. If you have a hot topic that you think would make a great article in The Beacon, please feel free to contact Andrew@Frankfort-Insurance.com and give him your suggestion. The more questions the better!

Low Auto Liability Limits — A Ticking Time Bomb
What you don't realize could destroy your financial life.

The auto liability limit we are referring to is Bodily Injury Liability coverage, BI as we'll call it. BI pays when you are legally responsible for serious injury or death to a person caused by your vehicle. This coverage provides protection against loss of your home, savings and income if you become involved in a serious accident.

In the state of Michigan the minimum limits of liability required by law are $20,000 per person and $40,000 per occurrence (accident), commonly written like this 20/40. This means that if you are involved in a serious accident and are legally responsible for serious injury the policy will pay $20,000 per person but not more that $40,000 total, for one accident. It doesn't take long to figure out that $20,000 or even $40,000 is not enough to cover the assets of most anyone. With the high judgments that are commonly awarded by juries in personal injury suits it is plain to see that you need to carry limits high enough to cover your assets or you are gambling you life's work.

A simple way to estimate the minimum limit you should carry is to add up the values of your major possessions and any savings or investments. This should give you an idea of at least the minimum BI limits you should consider.

Without attention bodily injury coverage is, as said earlier, a ticking time bomb. Don't let it blowup on you!

Take this 2-Minute Test to see if you are a candidate for a $1,000,000 lawsuit!

If you answer “yes” to one or more of these questions,
you might be a target for a million-dollar lawsuit!

• Do you own your home?
• Do you own a dog?
• Do you own a vacation home?
• Do you own a power or sailboat?
• Do you own waterfront property?
• Do you own more than one automobile?
• Do you have an above-average family income?

Actually, even if you answered “no” to each of these questions there is always a possibility of being sued for a million dollars or more.

Important Facts About Major Lawsuits

• Juries don't seem to care about the ability to pay when they award million dollar judgments.
• Your auto and home insurance will protect you only to the limits of your liability coverage.
• You can lose nearly everything you own, and still be liable to pay more out of future earnings.

The Simple Solution

Look into at least $1 million dollar “umbrella” liability protection – over and above your basic homeowners and automobile liability limits. You will only spend a couple hundred dollars a year for the protection that could save your financial future.

Special Personal Property Coverage
   What is it?   What does it do for me?   How much is it?   Do I really need it?

What is it?

Special personal property coverage (special p.p.c.) is an endorsement that can be placed on your homeowners’ policy. Special p.p.c. provides expanded coverage on your personal property. (A.k.a. contents, or stuff) Without special p.p.c. your personal property is covered for only damage caused by the perils listed below. If what damaged your personal property is not listed below, you have no coverage for the damage.

Standard Homeowners Policy — Perils covered
Fire or Lightning Wind or hail Explosion Smoke Riot Aircraft Vehicles	Vandalism Theft Flying objects Weight of ice & snow Freezing Sudden electrical current Volcanic Eruption

When you have special personal property coverage on your policy your “stuff” is covered for damaged caused by anything except what's listed below.

What does it do for me?

Special personal property coverage provides you with infinitely better coverage of your “stuff”. Most homeowners personal property claims that are denied would have been covered if the special p.p.c. endorsement had been on the policy.

How much is it?

Costs differ depending on which company your policy is with and the value of your home, but generally you can expect to pay between $15.00 to $30.00 per year.

Do I really need it?

From my experience I can say without any doubt, YES! I believe that this is one of the best-valued endorsements in insurance today. Sadly, it is also one of the least used, mainly because it can be difficult to explain. If you make only one change on your policy this year, make it adding special personal property coverage. It will only take one claim to make you a believer in this coverage. Make sure you are a believer whose claim is covered!