Agreed Value is an agreement made between the Insurance Company and the Policy Holder at policy inception that the limit of insurance listed in the schedule of property is the item's value, and this is the amount that will be paid by the company in the event of a total loss.
The election of this option suspends the application of the coinsurance provisions of the policy.
This is made by inserting an agreed value amount and expiration date for that agreed value amount under the Agreed Value heading in the Declarations page.
An Agreed Value must be specified for each location and type of covered property to which the election applies. The Insurance Company may require a recent appraisal of the property or properties or an explanation of how the values were determined. At a minimum, it will normally require a signed statement as to the property values. If the Policy Holder fails to submit the updated statement of values, coinsurance will be reinstated. If a loss occurs during a period of time when the agreed value coverage is in place, the Insurance Company will pay no more for the loss or damage to the property than the proportion that the Limit of Insurance for the damaged or lost property bears to the Agreed Value shown for it in the Declarations page.
Agreed value coverage does not provide complete protection against underinsurance, since the most the Company will pay, regardless of the agreed value stated, is the Limit of Insurance applicable to the covered property.
Wednesday, December 16, 2009
Wednesday, December 2, 2009
Time to think about Snowmobiles!!!
Does my Snowmobile require a registration in New York State?
You must register your snowmobile if you operate the snowmobile in New York State. A registration is not required if the snowmobile is operated on the private property of the owner or private property the owner has a contractual right to use. A snowmobile that is registered in another state and owned by a resident of that state, but is operated in NYS, must get a NYS registration. New York State also requires a registration on trailers.
Snowmobile registration numbers are permanently assigned to the snowmobile when it is first registered. If you have a snowmobile that was first registered before August 1995, you must supply the numbers that attach to your snowmobile. You must display those numbers on each side of the snowmobile hood. The numbers
1) must be: made from a reflective material
2) block style and 3 inches high or taller,
3) a color different from the hood and easy to see.
4) Be sure to include a hyphen or a space between the last number and the capital letters.
After August 1995, new snowmobile registrations receive a Registration Decal set. Attach the decals to each side of the hood. Validation stickers are issued annually. Put the stickers on the upper left-hand corner of the decal. Put the annual validation stickers to the left of the numbers on snowmobiles registered before 1995.
How do I register my snowmobile?
To register your snowmobile, bring the following items to a DMV office:
· A completed form MV-82SN (Snowmobile Registration Application).
· A completed form DTF-802 (Statement of Transaction for Sales Tax ) or proof of exemption or tax paid. (See the DMV Forms page for additional tax information and forms).
· Proof of ownership and bill of sale. Non-residents can use photocopies of proof of ownership and are not required to pay the NYS sales tax if the snowmobile is registered in another state.
· Proof of identity.
· Cash, check or credit card for the fee. Pay the registration fee of $45.
How do I renew my snowmobile registration?
You cannot renew a snowmobile registration on-line. Use your renewal notice to renew by mail. If you do not have a renewal notice, apply for the renewal with form MV-82SN or visit your local DMV office.
Are helmets required when on a snowmobile?
Yes. Since April 1, 1998, NYS requires each operator and passenger on a snowmobile to wear protective headgear approved by the Commissioner of the NYS Office of Parks, Recreation and Historic Preservation. You are not required to wear a helmet if:
· the snowmobile is operated on property where the operator or passenger is the property owner
· the snowmobile is operated on private property which the operator or passenger has a contractual right to use. This exemption does not apply if the owner or passenger is a member of a club or association and the owner does not receive compensation for snowmobile operation.
Some Insurance carriers offer the option of adding your snowmobile insurance to your homeowner policy. Contact your agent to see if this an option with your company.
Machines that exceed 650 cc will be considered a high performance machine by many carriers. Please be advised that not all companies will write a policy for this type of machine. Some companies will offer liability only coverage for older machines that do not require physical damage coverage. Most companies offer a discount for completion of a certified safety course or membership in a snowmobile association. Most companies can offer a multi vehicle discount if you have more than one machine.Youthful operators are usually required to complete a safety course if under the age of 16.
You must register your snowmobile if you operate the snowmobile in New York State. A registration is not required if the snowmobile is operated on the private property of the owner or private property the owner has a contractual right to use. A snowmobile that is registered in another state and owned by a resident of that state, but is operated in NYS, must get a NYS registration. New York State also requires a registration on trailers.
Snowmobile registration numbers are permanently assigned to the snowmobile when it is first registered. If you have a snowmobile that was first registered before August 1995, you must supply the numbers that attach to your snowmobile. You must display those numbers on each side of the snowmobile hood. The numbers
1) must be: made from a reflective material
2) block style and 3 inches high or taller,
3) a color different from the hood and easy to see.
4) Be sure to include a hyphen or a space between the last number and the capital letters.
After August 1995, new snowmobile registrations receive a Registration Decal set. Attach the decals to each side of the hood. Validation stickers are issued annually. Put the stickers on the upper left-hand corner of the decal. Put the annual validation stickers to the left of the numbers on snowmobiles registered before 1995.
How do I register my snowmobile?
To register your snowmobile, bring the following items to a DMV office:
· A completed form MV-82SN (Snowmobile Registration Application).
· A completed form DTF-802 (Statement of Transaction for Sales Tax ) or proof of exemption or tax paid. (See the DMV Forms page for additional tax information and forms).
· Proof of ownership and bill of sale. Non-residents can use photocopies of proof of ownership and are not required to pay the NYS sales tax if the snowmobile is registered in another state.
· Proof of identity.
· Cash, check or credit card for the fee. Pay the registration fee of $45.
How do I renew my snowmobile registration?
You cannot renew a snowmobile registration on-line. Use your renewal notice to renew by mail. If you do not have a renewal notice, apply for the renewal with form MV-82SN or visit your local DMV office.
Are helmets required when on a snowmobile?
Yes. Since April 1, 1998, NYS requires each operator and passenger on a snowmobile to wear protective headgear approved by the Commissioner of the NYS Office of Parks, Recreation and Historic Preservation. You are not required to wear a helmet if:
· the snowmobile is operated on property where the operator or passenger is the property owner
· the snowmobile is operated on private property which the operator or passenger has a contractual right to use. This exemption does not apply if the owner or passenger is a member of a club or association and the owner does not receive compensation for snowmobile operation.
Some Insurance carriers offer the option of adding your snowmobile insurance to your homeowner policy. Contact your agent to see if this an option with your company.
Machines that exceed 650 cc will be considered a high performance machine by many carriers. Please be advised that not all companies will write a policy for this type of machine. Some companies will offer liability only coverage for older machines that do not require physical damage coverage. Most companies offer a discount for completion of a certified safety course or membership in a snowmobile association. Most companies can offer a multi vehicle discount if you have more than one machine.Youthful operators are usually required to complete a safety course if under the age of 16.
Tuesday, November 3, 2009
COMPANY FURNISHED VEHICLES
The Business Auto policy does not extend coverage to employees and their family members if the company furnished vehicle is operated outside the scope of the employer's permission or if the employee rents or borrows a vehicle on a personal basis which is not owned, rented, or borrowed by the business. Also, even in those instances in which coverage extends to the employee under the Business Auto policy, protection is subject to the policy limits, which must be shared with the named insured ( The Employer).
For example, an employer's permission for use of a company vehicle may not extend to employee vacation or other personal activities or to use of the vehicle by members of the employee's family. Even if permission is granted for personal use of the vehicle, the Business Auto policy covers only vehicles owned, rented, or borrowed by the named insured. No coverage extends to vehicles rented or borrowed by an employee on a personal basis.
Individuals who drive a company furnished vehicle must make other insurance arrangements to protect against these coverage gaps in the Business Auto policy. Four alternatives are available:
Expanding the Personal Auto Policy -- Those employees who own one or more personal vehicles in addition to operating a company-furnished car must insure the personal vehicles under a Personal Auto policy. This normally excludes liability and physical damage coverage for the operation of a vehicle furnished for the insured's regular use, but this exclusion may be eliminated by attachment of an Extended Non-Owned Liability Endorsement. This grants coverage for the insured and spouse for operation of a company furnished vehicle and for operating any non-owned vehicle.
Named Non-Owner Coverage -- Individuals who own no personal vehicles may acquire a Personal Auto policy with a Named Non-Owner Endorsement. This provides coverage for the named individual and other listed family members while operating a non-owned vehicle, including a company furnished vehicle. Most carriers prefer not to issue the Personal Auto policy with this endorsement on the presumption that the premium is inadequate; no owned vehicle exists to act as the rating basis.
For example, an employer's permission for use of a company vehicle may not extend to employee vacation or other personal activities or to use of the vehicle by members of the employee's family. Even if permission is granted for personal use of the vehicle, the Business Auto policy covers only vehicles owned, rented, or borrowed by the named insured. No coverage extends to vehicles rented or borrowed by an employee on a personal basis.
Individuals who drive a company furnished vehicle must make other insurance arrangements to protect against these coverage gaps in the Business Auto policy. Four alternatives are available:
Expanding the Personal Auto Policy -- Those employees who own one or more personal vehicles in addition to operating a company-furnished car must insure the personal vehicles under a Personal Auto policy. This normally excludes liability and physical damage coverage for the operation of a vehicle furnished for the insured's regular use, but this exclusion may be eliminated by attachment of an Extended Non-Owned Liability Endorsement. This grants coverage for the insured and spouse for operation of a company furnished vehicle and for operating any non-owned vehicle.
Named Non-Owner Coverage -- Individuals who own no personal vehicles may acquire a Personal Auto policy with a Named Non-Owner Endorsement. This provides coverage for the named individual and other listed family members while operating a non-owned vehicle, including a company furnished vehicle. Most carriers prefer not to issue the Personal Auto policy with this endorsement on the presumption that the premium is inadequate; no owned vehicle exists to act as the rating basis.
Tuesday, September 1, 2009
Condo Coverage
Most new condominium owners are woefully uninformed about the condominium exposures they face and will welcome information and guidance from an insurance professional. Condominium association and unit-owner policies mesh to provide sound protection for the individual's property exposures, an individual’s liability exposures and to cover collectively owned property and related exposure to third-party claims.
The two contracts are products of years of challenging work by insurance industry policy drafters, which started with the introduction of the condominium concept. Those writing the policies have had to consider state laws and other legal issues. They also had to contend with the pioneering and ongoing experience of insurance companies. The unique and complex risks of condominium ownership and the responsibilities of association board members and officers, consequently, have been minimized.
Condominium association forms are adaptations of general business property forms. Policy provisions have been modified for the distinct residential and commercial condominium needs. Condominium unit-owners forms are available under commercial condominium programs for business and professional occupancies.
The law of condominiums in each state contains a broad definition of "common elements" and "unit." Bylaws and declarations developed for each condominium to amplify and provide precise, detailed definitions of the terms. The policy drafters, with input from legal authorities, have fashioned provisions in the pertinent insurance forms and employed language that addresses the requirements. They continue to monitor statutory developments and experience of insurance companies, and to clarify and amend coverage in revised editions of the forms as warranted.
Building coverage in forms drafted for associations includes property within the generally accepted meaning of "common elements." Property within the air space (condominium unit) enclosed by the unfinished surfaces of perimeter walls, floors and ceilings, to which a unit-owner has title and sole interest, is covered by the (homeowners) unit-owners policy.
Building coverage under a condominium association coverage form applies to the building(s) or structure(s) described in the declarations, for which a limit of insurance is shown. It includes: completed additions; fixtures outside of individual units; permanently installed machinery and equipment; association owned personal property (located outside the units and used for condo property maintenance); and, when in a unit, fixtures, improvements and alterations that are part of the building and appliances.
Business personal property coverage in an association policy includes coverage for personal property owned by the association (owned indivisibly by all unit-owners) and leased personal property.
Individual unit-owners property coverages are similar to those of homeowners contents broad form 4 and in personal property coverage (C) of homeowners broad form 2. A significant modification, brought about by the special nature of condominium ownership, is the inclusion of dwelling coverage (A) for specified and limited kinds of property. Dwelling coverage in the unit-owners form covers: alterations, appliances, fixtures and improvements that are part of the building, and property which is the unit-owner's insurance responsibility.
The association policy and the unit-owners policy contain carefully crafted language that clarifies which policy applies in certain situations, a prime example being loss to alterations, appliances, or improvements. Installations, at the unit-owner's expense, of such items as interior walls, bookshelves, wall mirrors, a whirlpool bath or sauna, a built-in stove, or microwave were subjects of uncertainty in the early days of condominiums.
Current association policies, in general, specify that building coverage therein applies, when the association is required by declarations and regardless of ownership to insure: fixtures; improvements and alterations that are part of the building (structure); appliances for refrigeration, ventilating, cooking, dishwashing, laundering, security or housekeeping. Other insurance provisions in a unit-owners policy state that insurance is excess over association insurance covering the same property covered by the unit-owners policy.
The upshot is that the owner of a condominium unit is well-protected in this and other property loss situations because of the corroborative design of the two important policies. Both policies are written for cooperative apartments, as well as condominiums, and these conclusions also are applicable to them.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
The importance of the rental coverage option is clear when we note the high percentage of residential condominium units that are "second homes" for eventual retirement living. The purchase of many, particularly in warm-weather and resort areas, is made possible by the income from year-round rental availability, except for the usual two weeks reserved by the owner. In addition to the income generated, the tax deductions for mortgage interest, property tax, maintenance, and depreciation are significant. Unit-owners' rental to others coverage is essential in such cases. But its recommendation is not confined to year-round rental.
The various endorsements optionally available for use with renters package policies to expand and adapt coverage to the specific needs of the insured, including the scheduling of valuable personal property items, also are available for unit owners. A personal property replacement cost endorsement that converts coverage from an actual cash value to a replacement cost basis is of major importance. Flood insurance must not, of course, be overlooked where the risk exists.
The same package policy used for condominium unit-owners is generally issued by insurers to cooperative apartment unit owners because the exposures are similar. Their insurance meshes with that carried by the cooperative corporation, and the described coverage options are applicable.
The two contracts are products of years of challenging work by insurance industry policy drafters, which started with the introduction of the condominium concept. Those writing the policies have had to consider state laws and other legal issues. They also had to contend with the pioneering and ongoing experience of insurance companies. The unique and complex risks of condominium ownership and the responsibilities of association board members and officers, consequently, have been minimized.
Condominium association forms are adaptations of general business property forms. Policy provisions have been modified for the distinct residential and commercial condominium needs. Condominium unit-owners forms are available under commercial condominium programs for business and professional occupancies.
The law of condominiums in each state contains a broad definition of "common elements" and "unit." Bylaws and declarations developed for each condominium to amplify and provide precise, detailed definitions of the terms. The policy drafters, with input from legal authorities, have fashioned provisions in the pertinent insurance forms and employed language that addresses the requirements. They continue to monitor statutory developments and experience of insurance companies, and to clarify and amend coverage in revised editions of the forms as warranted.
Building coverage in forms drafted for associations includes property within the generally accepted meaning of "common elements." Property within the air space (condominium unit) enclosed by the unfinished surfaces of perimeter walls, floors and ceilings, to which a unit-owner has title and sole interest, is covered by the (homeowners) unit-owners policy.
Building coverage under a condominium association coverage form applies to the building(s) or structure(s) described in the declarations, for which a limit of insurance is shown. It includes: completed additions; fixtures outside of individual units; permanently installed machinery and equipment; association owned personal property (located outside the units and used for condo property maintenance); and, when in a unit, fixtures, improvements and alterations that are part of the building and appliances.
Business personal property coverage in an association policy includes coverage for personal property owned by the association (owned indivisibly by all unit-owners) and leased personal property.
Individual unit-owners property coverages are similar to those of homeowners contents broad form 4 and in personal property coverage (C) of homeowners broad form 2. A significant modification, brought about by the special nature of condominium ownership, is the inclusion of dwelling coverage (A) for specified and limited kinds of property. Dwelling coverage in the unit-owners form covers: alterations, appliances, fixtures and improvements that are part of the building, and property which is the unit-owner's insurance responsibility.
The association policy and the unit-owners policy contain carefully crafted language that clarifies which policy applies in certain situations, a prime example being loss to alterations, appliances, or improvements. Installations, at the unit-owner's expense, of such items as interior walls, bookshelves, wall mirrors, a whirlpool bath or sauna, a built-in stove, or microwave were subjects of uncertainty in the early days of condominiums.
Current association policies, in general, specify that building coverage therein applies, when the association is required by declarations and regardless of ownership to insure: fixtures; improvements and alterations that are part of the building (structure); appliances for refrigeration, ventilating, cooking, dishwashing, laundering, security or housekeeping. Other insurance provisions in a unit-owners policy state that insurance is excess over association insurance covering the same property covered by the unit-owners policy.
The upshot is that the owner of a condominium unit is well-protected in this and other property loss situations because of the corroborative design of the two important policies. Both policies are written for cooperative apartments, as well as condominiums, and these conclusions also are applicable to them.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
The importance of the rental coverage option is clear when we note the high percentage of residential condominium units that are "second homes" for eventual retirement living. The purchase of many, particularly in warm-weather and resort areas, is made possible by the income from year-round rental availability, except for the usual two weeks reserved by the owner. In addition to the income generated, the tax deductions for mortgage interest, property tax, maintenance, and depreciation are significant. Unit-owners' rental to others coverage is essential in such cases. But its recommendation is not confined to year-round rental.
The various endorsements optionally available for use with renters package policies to expand and adapt coverage to the specific needs of the insured, including the scheduling of valuable personal property items, also are available for unit owners. A personal property replacement cost endorsement that converts coverage from an actual cash value to a replacement cost basis is of major importance. Flood insurance must not, of course, be overlooked where the risk exists.
The same package policy used for condominium unit-owners is generally issued by insurers to cooperative apartment unit owners because the exposures are similar. Their insurance meshes with that carried by the cooperative corporation, and the described coverage options are applicable.
Credit Scoring
A credit score can significantly impact the ability to get insurance and it can also impact the cost of insurance. A credit score is a measurement of credit history in numeric form. Insurance companies use credit scores to help determine eligibility for an insurance policy, the types of coverage available and also to decide how much customers will pay for insurance premiums. Insurance companies do not need applicants' permission to run a credit report.
How Credit Scores Impact Insurance Premiums
Insurance companies have years of studies that show people with problem credit are more likely to file insurance claims. According to the logic used by many insurance companies, people who are likely to file claims should pay more for insurance, get reduced insurance coverage or be denied for insurance.
What to know about a credit score when applying for insurance or trying to reduce an insurance premium:
Based on the national average credit score, a score of 700 or higher is a very good to excellent credit score. Te ability to get insurance and to get the best prices on insurance will not be negatively impacted by a credit history in this range.
A credit score that falls between 650 and 700 is considered to be very good credit. The national average credit score in the U.S. is 692. People in this range should meet insurance companies’ financial criterion and insurance premiums shouldn’t be impacted by the credit report and score.
Credit scores that fall between 600 and 650 are still considered "fair," based on the national average credit score. Though no one knows exactly how each company uses a credit report and score, this credit range probably won’t impact insurance rates or the ability to obtain insurance.
If a credit score is less than 600, there may be a problem either obtaining insurance or getting a competitive rate for insurance premiums due to credit history.
What to Do to Improve a Credit Score
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
If there are any collections agency reports on a credit report and score, find out if these can be settled with the collections agency for a lesser amount. The collections agency must state in writing that they will remove the negative item from a credit history once they receive payment.
A credit score is negatively impacted by late payments, multiple open lines of credit or advancing past credit limits often. Work to pay more than the minimum amount due on credit cards, close credit cards that aren’t need and stay within limits when using credit cards. All of these things can help improve a credit score and the premiums paid for insurance.
If there is a mistake on a credit report and score, immediately contact the appropriate parties to dispute the issue. Once the item has been removed from the credit report, contact the insurance company to let them know the problem has been resolved. Credit reports and credit scores are updated frequently, so insurance companies can see changes right away.
A credit score can greatly impact the ability to get insurance or the cost of insurance premiums. And if the insurance company runs a credit report upon policy renewal, they may decide to non-renew an insurance policy or raise rates if the credit score hasn’t improved.
How Credit Scores Impact Insurance Premiums
Insurance companies have years of studies that show people with problem credit are more likely to file insurance claims. According to the logic used by many insurance companies, people who are likely to file claims should pay more for insurance, get reduced insurance coverage or be denied for insurance.
What to know about a credit score when applying for insurance or trying to reduce an insurance premium:
Based on the national average credit score, a score of 700 or higher is a very good to excellent credit score. Te ability to get insurance and to get the best prices on insurance will not be negatively impacted by a credit history in this range.
A credit score that falls between 650 and 700 is considered to be very good credit. The national average credit score in the U.S. is 692. People in this range should meet insurance companies’ financial criterion and insurance premiums shouldn’t be impacted by the credit report and score.
Credit scores that fall between 600 and 650 are still considered "fair," based on the national average credit score. Though no one knows exactly how each company uses a credit report and score, this credit range probably won’t impact insurance rates or the ability to obtain insurance.
If a credit score is less than 600, there may be a problem either obtaining insurance or getting a competitive rate for insurance premiums due to credit history.
What to Do to Improve a Credit Score
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
If there are any collections agency reports on a credit report and score, find out if these can be settled with the collections agency for a lesser amount. The collections agency must state in writing that they will remove the negative item from a credit history once they receive payment.
A credit score is negatively impacted by late payments, multiple open lines of credit or advancing past credit limits often. Work to pay more than the minimum amount due on credit cards, close credit cards that aren’t need and stay within limits when using credit cards. All of these things can help improve a credit score and the premiums paid for insurance.
If there is a mistake on a credit report and score, immediately contact the appropriate parties to dispute the issue. Once the item has been removed from the credit report, contact the insurance company to let them know the problem has been resolved. Credit reports and credit scores are updated frequently, so insurance companies can see changes right away.
A credit score can greatly impact the ability to get insurance or the cost of insurance premiums. And if the insurance company runs a credit report upon policy renewal, they may decide to non-renew an insurance policy or raise rates if the credit score hasn’t improved.
Tuesday, August 4, 2009
What is this OBEL coverage on my NY Auto Policy?
OBEL is an acronym for Optional Basic Economic Loss. This coverage is a part of New York State Personal Injury Protection. Personal Injury Protection is commonly referred to as PIP or “No Fault” coverage. Under the no-fault insurance system, when you have an accident, your insurance provider will provide compensation for all the damages caused to you (up to the specified policy limit), without checking whether there is any fault from your side or not. The main goal of No-fault insurance is to decrease auto insurance premiums by reducing the number of vehicle accident cases in the courts. This is done by providing limited payment for losses, and by controlling recovery for pain and suffering costs. The real no fault part of your vehicle insurance policy is known as the personal injury protection (PIP).
Under New York law you are required to purchase certain minimum insurance coverage. You must have at least $50,000 worth of coverage PIP coverage on your auto policy. Personal injury Protection is used to pay for medical expenses, loss of income, and other miscellaneous expenses regardless of fault. This coverage provides such benefits as medical expenses, loss of income up to $2,000 a month or 80% of your current monthly income (whichever is less), other reasonable expenses up to $25 a day, and $2,000 in death benefit. Many carriers also offer additional personal injury protection coverage as well. The company will usually offer the insured a choice of ($25,000, $50,000, $75,000 or $100,000) in additional personal injury protection coverage.
Under New York law you are required to purchase certain minimum insurance coverage. You must have at least $50,000 worth of coverage PIP coverage on your auto policy. Personal injury Protection is used to pay for medical expenses, loss of income, and other miscellaneous expenses regardless of fault. This coverage provides such benefits as medical expenses, loss of income up to $2,000 a month or 80% of your current monthly income (whichever is less), other reasonable expenses up to $25 a day, and $2,000 in death benefit. Many carriers also offer additional personal injury protection coverage as well. The company will usually offer the insured a choice of ($25,000, $50,000, $75,000 or $100,000) in additional personal injury protection coverage.
Rental Vehicle Insurance in New York State - Did you know...
New York State Law formerly prohibited a rental vehicle company from selling Collision Damage Waivers (CDWs) in New York on rentals of 30 days or less of motor vehicles. A rental vehicle company was not, in most circumstances, able to hold renters liable for more than $100 in the event the rental vehicle was stolen or damaged. However, recent changes in the law now make the option of purchasing a CDW, also known as Optional Vehicle Protection (OVP) from the rental vehicle company, and also permits the rental vehicle company to hold the renter liable for the full amount of damage to the rented vehicle.
Rental companies may sell a Collision Damage Waiver, also known as “Optional Vehicle Protection” to those who do not reside in New York and state residents that are not currently insured under a private passenger automobile insurance policy. For rentals of 30 consecutive days or less, rental car companies in New York State can sell OVP, or if not purchased, charge a renter for the total value of stolen(lost) or damaged private passenger type vehicles. If you currently have a New York auto insurance policy and you rent a car for 30 days or less anywhere in the United States, its territories and possessions, or Canada, regardless of whether you have collision or comprehensive coverage on your own car, you do not need to buy a CDW from the rental car company. Coverage is currently provided without any extra charge. In the future, an insurer may elect to charge for this coverage. The insured would then have the option of rejecting this coverage.
Some credit card companies also provide some type of collision damage coverage to their cardholders for vehicles they rent with their card. When renting a vehicle, check with your credit card company to verify exactly what protection it provides and what types of vehicles are covered.
In New York, rental vehicle coverage is included in motor vehicle liability insurance policies that : insure fewer than five vehicles; and are issued on an individual or a husband and wife. However, policies insuring certain types of vehicles, such as most types of trucks, are not required to include rental vehicle coverage. Your insurer is required to provide you with information about rental vehicle coverage with your policy. This coverage is normally included automatically in your policy, but if a premium is separately charges, you have the right to reject this coverage.
Your rental vehicle coverage is not subject to the limit of property damage liability on your insurance policy. You are covered for the full amount of damages to the rental vehicle. There is no limit to the amount of coverage that must be provided under the rental vehicle coverage endorsement.
Rental Vehicle coverage should not be confused with rental reimbursement. Rental reimbursement is for the cost of renting a vehicle used as substitute transportation if your own vehicle is damaged and is temporarily out of use due to a covered loss.
Rental companies may sell a Collision Damage Waiver, also known as “Optional Vehicle Protection” to those who do not reside in New York and state residents that are not currently insured under a private passenger automobile insurance policy. For rentals of 30 consecutive days or less, rental car companies in New York State can sell OVP, or if not purchased, charge a renter for the total value of stolen(lost) or damaged private passenger type vehicles. If you currently have a New York auto insurance policy and you rent a car for 30 days or less anywhere in the United States, its territories and possessions, or Canada, regardless of whether you have collision or comprehensive coverage on your own car, you do not need to buy a CDW from the rental car company. Coverage is currently provided without any extra charge. In the future, an insurer may elect to charge for this coverage. The insured would then have the option of rejecting this coverage.
Some credit card companies also provide some type of collision damage coverage to their cardholders for vehicles they rent with their card. When renting a vehicle, check with your credit card company to verify exactly what protection it provides and what types of vehicles are covered.
In New York, rental vehicle coverage is included in motor vehicle liability insurance policies that : insure fewer than five vehicles; and are issued on an individual or a husband and wife. However, policies insuring certain types of vehicles, such as most types of trucks, are not required to include rental vehicle coverage. Your insurer is required to provide you with information about rental vehicle coverage with your policy. This coverage is normally included automatically in your policy, but if a premium is separately charges, you have the right to reject this coverage.
Your rental vehicle coverage is not subject to the limit of property damage liability on your insurance policy. You are covered for the full amount of damages to the rental vehicle. There is no limit to the amount of coverage that must be provided under the rental vehicle coverage endorsement.
Rental Vehicle coverage should not be confused with rental reimbursement. Rental reimbursement is for the cost of renting a vehicle used as substitute transportation if your own vehicle is damaged and is temporarily out of use due to a covered loss.
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