Shorebreak Insurance Services

I had a client ask about getting an Auto Insurance quote. As it turns out the client has a truck which is used for business. He has been insuring it under his personal auto. That is not how to do it. He is at risk for an uncovered claim. If a 3/4 ton pick up truck loaded with materials gets into an accident, it can result in significant damages to both people and property. Do not let this happen to you. Commercial Auto is a little more expensive but it is that way for a reason. Generally the liability limits are much higher than you would find in personal auto.

Individual Medical Coverage Enrollment Deadline,,, April 15?

If you are late to the party and didn't get signed up by March 31, there is hope. Some insurers are accepting applications until midnight on April 15th, 2014. To be clear, the primary reason for medical insurance is to pay for the care that would save your life or avoid financial ruin. Beyond that, it smooths out costs for common items like office visits, labwork, and MRI's.

Many people are upset about the high cost of "insurance" and see the insurance companies as gougers. The fact is that the Gov't has mandated how much the insurers must pay out in claims. 80 cents of every dollar must be paid out in claims. What would your business look like if you had to cover your operations and profits on 20%? Bottom Line- the cost of insurance is a reflection of the cost of care. Imagine the shock of discovering the pain in your side is an ailment requiring treatments at $5,000/mo? Would you get the care you need? Would you keep your house?

Found On Insweb.com

Home exchanges: Insurance nightmare in the making?
By Linda Melone, InsWeb.com

Thinking of swapping your beachside condo in California for a cozy cottage in England? Home exchanges have been popular for decades, and numerous websites have simplified the process in recent years. Before you pack for an extended stay in the English countryside, though, you should make sure your dream getaway doesn't turn into an insurance nightmare.

Keghan Hurst, a spokeswoman for HomeExchange.com, which features about 38,000 listings in places like Australia, China and Italy, says the website encourages its members to check with their home insurance companies before opening their homes to temporary tenants.

"For the most part," Hurst says, "we understand that most insurance covers exchange partners as invited guests."

Generally, that's true, says Tim Dodge, a spokesman for the Independent Insurance Agents & Brokers of New York, a trade group. As with any invited guest, as long as you've taken precautions to ensure your home is safe -- such as fixing any faulty wiring -- you're less likely to face a home insurance claim or a lawsuit when you return. Fortunately, the liability portion of your home insurance will pay for your legal defense if your exchange guest is injured at your home and hauls you into court.

You'll be further protected if you buy an umbrella policy, Dodge says. This type of coverage provides an extra layer of liability coverage, usually for a minimum of $1 million.

What happens if your exchange guest has sticky fingers and steals some of your belongings? Your home insurance may or may not help you in this case.

Under an exchange arrangement, coverage for stolen items pertains only to areas of the house deemed "off limits," Dodge says. Those areas are outlined in the home exchange contract between the homeowner and the guest. Let's say a set of antique silverware is taken from the kitchen. The kitchen is not off-limits, so the theft wouldn't be covered, according to Dodge. But if the silverware was stored in the off-limits basement, the theft would be covered.

Your insurance deductible comes into play here. "If the stolen item is at or below your deductible, you may have to pay for it out of pocket," Dodge says.

You may not need to worry too much about theft, though. Hurst says 98 percent of home exchange partners who've worked with HomeExchange.com say their homes were in very good or excellent condition after they returned. "Members have so much communication with one another before they ever make an exchange that they know exactly what to expect," Hurst says.

Borrowing a car

Many home exchange agreements allow a guest to use your car as well as your home while you're away. But what happens if your guest gets into a wreck?

Kevin Lynch, assistant professor of insurance at The American College in Pennsylvania, says: "Insurance follows the property. If I was driving your car and I had an at-fault accident, your insurance would cover me."

A standard policy for a personal car covers you and your family as well as anybody you let use the car with your permission, says Jerry Farcone, a Farmers Insurance agent in Rancho Santa Margarita, Calif.

"So if you loan the car to someone from another state or country and he gets into an accident with your car, as long as he has permission to use the car, he's covered under your policy," Farcone says.

You may want to inform your auto insurance company before the exchange guest gets behind the wheel of your car, though. However, you're not legally obligated to do so, Dodge says, and your insurer would have to cover an auto insurance claim that arose from a short-time guest.

If your guest crashes your car, you'll certainly want to tell your insurance company that you gave him permission to drive your car, Dodge says. However, this honesty does come with some risk. "If you tell your insurance company about this exchange arrangement," Dodge says, "they could decide you're too big a risk for them and cancel or not renew your policy at the first opportunity."

Farcone offers a suggestion for avoiding that sort of complication altogether: "It would be best if your guest got a rental car instead."

Medicare can't pay for everything. That is not the role of insurance. However, they are extending coverage here. Watch for other take aways in the future from a system whose cost has the capacity to bankrupt us due to plain old demographics.

A Quiet 'Sea Change' in Medicare Although patients often hear otherwise, Medicare does not require that they improve to keep receiving certain kinds of therapy.