Vicci's Story

     Vicci Grey was run down by a drunk driver and abandoned on the side of the road. Now on the road to recovery, Vicci is trying to work through the physical and financial pain that the accident has caused her.

"I was on the way home from my daughter's 37th birthday party and I saw a truck ahead of me in the road that seemed to be out of control. He was on the wrong side of the road. All of a sudden it seemed as though he slammed his foot on the gas and veered straight towards me. I thought that if I could just turn the corner on the next street maybe I could keep him from hitting me. I couldn't get out of the way fast enough, and he broadsided me."

The driver that hit Vicci was driving a Lincoln Navigator. After he crossed the median into Vicci's lane and hit her, the driver and his passenger got out of the truck and ran. Both were heavily intoxicated and wanted to get away before the police arrived. Neither of them checked to see if Vicci was alive, if she was hurt, or if she needed help. She was hurt. She did need help. Both cars were totalled.

"I couldn't get out of my car, I couldn't even try. I wanted to find my cell phone so I could call my kids and let them know I was in an accident but my neck had swollen up and I couldn't turn my head. My arm had gone completely numb and I couldn't really move."

Fortunately for Vicci, someone in a nearby house had heard the accident and called the police. Within 5 minutes they were on scene and the firemen were cutting Vicci out of her car with the jaws of life. Before she really knew what was going on, Vicci was at the hospital. The accident had fractured Vicci's C6 and C7 vertebrae and cause extensive nerve and muscle damage. Vicci spent the next three days in the hospital before being sent home on oxygen for 2 months of bed rest and physical therapy.

The police found the passenger in a Walgreens near the site of the accident that night. After 2 months, the police have still not located the driver. The passenger admitted to police that they had both been drinking and that he had told the driver many times that he should not be driving, but he didn't listen. Although the driver does own a home in Colorado Springs, he had recently lost his job and was not living at home due to a domestic violence case with his wife. Although the driver did have insurance, Vicci was about to find out how little he had and how little it would help.

Vicci has not been able to drive or return to work in the two months since the accident. She has been walking to a nearby physical therapist 3 times a week in an effort to recover and regain her full mobility. About a month and a half after the accident, Vicci was finally able to get to her car and retrieve some of her belongings.

"When I finally saw my car, it was truly devastating", says Vicci. "It was like looking at death, it was absolutely horrible." Vicci soon found out that the driver's insurance policy was not going to be enough to pay for her car because the driver had such low limits. "The insurance that he had should be against the law. He had the barest of bare minimum that would pay $25,000 for my medical bills and work loss and up to $15,000 for my car." Vicci's hospital bills were already over the $25,000. Add in the work loss, physical therapy, oxygen for her home, neurologist visits, etc. and things really start to add up. Vicci's car was also a total loss and cost well over the $15,000 provided by the other driver's insurance policy.

Fortunately for Vicci, her own insurance policy DID have the right coverage to protect her. Her own insurance policy DID pay off her car and WILL take care of her medical bills, physical therapy, work loss and anything else that Vicci needs to get back to normal.

"It was a relief to find out what kind of insurance coverage I had. I had not paid much attention to my own insurance coverage because I had no reason to. I'm a good driver and I've never hit anyone. You always think that it's not going to happen to me, you always think that you're the invincible one so you don't think much about your coverage. You only think about trying to save money here and there. I'm truly thankful for what I have on my policy to take care of me."

After two full months, Vicci was finally cleared to start working again...slowly. She'll have to take it easy for the next few months, taking frequent breaks and limiting her driving but she needs to get back to work and is grateful for her progress so far.

"My insurance policy with American National has pretty much sustained me. It paid off my car and is helping me with a rental car. The service has been phenomenal. Trying to deal with his (the other driver's) insurance has been a nightmare, it's been a full time job."

When asked if she had any words of advice regarding what she's learned from her ordeal, Vicci had this to say: "Make sure that you have good insurance coverage. Even if you think you're just giving your money away  because this sort of thing could never happen to you, you just don't know. You can never know for sure. Having the right insurance has made the difference between being destitute and being okay; between being under a bridge and being here at home. You need to have someone to sit down and talk to and then listen to what they say about protecting yourself. It's not about anyone trying to sell you insurance, It's about you and what you need. If it had not been for Robert and American National I would be devastated. I still have a long way to go, but I thank God for all that's been done for me."

Vicci has been through a lot and learned first-hand the value of having the right insurance to stay protected. She's been a great client for years and I appreciate her sharing her story and wish her a full and speedy recovery.

New Study Reveals Home Owners Know LITTLE About Their Home Insurance

I recently came across a study from Zogby International that asked the question "how much do people know about the insurance for their most valuable asset - their home?" The answer was alarming to say the least. The majority of home owners have some very mistaken ideas about what their home insurance does - and does NOT - cover. Unfortunately, some home owners will find themselves very under insured if they don't take action, while others are obviously over paying for coverage they may not need. Read the full report below:


Homeowners Coverage Knowledge Gap Wide Among Consumers


Many Americans admit to having a knowledge gap when it comes to what their home insurance actually covers, according to a new survey.

Nearly one third (31 percent) of Americans don't know how much their most valuable assets -- their homes -- are insured for, and an additional 46 percent don't know how much coverage they have for their homes' contents, such as furniture and clothing, say the results of a survey by Zogby International for MetLife Auto & Home. Additionally, many homeowners aren't aware of coverage overlaps that may exist, which could result in opportunities to save money.

The first of a two-part "Insurance Literacy" survey, tested consumer knowledge of insurance basics, including homeowners, condo, and renter's insurance.

Common misconceptions that could lead to coverage gaps were:

-- Thirty percent of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance.

-- More than two thirds (71 percent) of those surveyed believe insurance pays for the full cost to rebuild their property in the event of a major loss, such as a fire or other natural disaster. But nearly all insurance companies "cap" the amount paid to rebuild the dwelling following a total loss, unless additional coverage is purchased. Furthermore, the coverage is subject to a deductible, and certain causes of loss, such as water damage caused by the natural disasters of flooding, are excluded completely.

-- Almost three-quarters (73 percent) believe insurance will pay the full cost to replace personal belongings in the event of a loss. However, depreciation is usually factored in, unless optional replacement coverage is selected, and the coverage, regardless of the chosen settlement method, is subject to a deductible.

-- Sixty percent believe insurance will pay for the full cost of replacing valuables, such as jewelry and collectibles. Most insurance policies contain a payment cap for replacing valuables, although additional coverage can be purchased, and the coverage is subject to a deductible.

-- For a major loss, nearly two-thirds (64 percent) of those surveyed expect their insurance to cover any building code mandated upgrades that are necessary. Without an endorsement/rider, most home insurance does not cover required upgrades located in an undamaged portion of the home.

"More than two-thirds of consumers surveyed also said they'd rather pay a higher premium than be told that a loss isn't covered," said Bill Moore, president of MetLife Auto & Home. "To ensure this doesn't happen, consumers can find the best value by learning more about their policies and selecting the coverage that best meets their needs, rather than simply shopping for the lowest premium."

On a positive note, with purse strings tight, opportunities exist for consumers to become more aware of what their current policies do cover in the event of a loss, to avoid insurance overlaps and unnecessary out-of-pocket expenses. For example:

-- Electronically downloaded and stored entertainment, such as music, ring tones, etc., can be expensive to replace without easy access to free re-downloads. However, more than 90 percent of homeowners didn't know that insurance can extend coverage to electronic data.

-- Almost half (47 percent) didn't realize there's no need to secure additional coverage to insure the personal property of college-age children living on campus. This is covered under the standard homeowners contract, subject to its terms and conditions.

-- Many homeowners would be surprised to learn that damage to appliances and wiring from a power surge would be covered by their insurance policy. More than half (59 percent) didn't think it would -- limiting out-of-pocket expenses to a deductible.

Natural Disasters

Many homeowners exhibit confusion about insurance coverage for natural disasters and unforeseen occurrences. The majority of homeowners understand that flood damage is written on a separate policy from their standard insurance policies. However, many consumers are still misinformed -- or unsure -- about the coverage available for other types of events.

In some cases, homeowners are aware of the potential for a loss, but don't realize what coverage they have against a particular hazard. Among other things:

-- Although 83 percent believe foundation damage from earth movement is very serious or somewhat serious, only 37 percent know they aren't covered for this under the standard homeowners policy.

-- More than a quarter (28 percent) incorrectly believe they'd be covered for an earthquake or volcanic eruption, and the same amount aren't sure one way or the other. Most standard policies exclude this peril.

-- For water damage from a sewer or sump-pump back up, 67 percent of homeowners believe this would be covered. Without the appropriate rider, most policies don't cover this.

The Zogby/MetLife Auto & Home homeowners insurance survey sample consisted of interviews with 1,196 adults who have homeowners, condo, or renter's insurance, and who are living in a household with a telephone. The interviewing was conducted May 26, to June 9, 2010.

Source: MetLife Inc.

Insurance Implications on Buying a New Home

Home Buyers Insurance Checklist

Shopping for your dream house? There are many considerations when looking at real estate, such as property taxes, school district, available recreational opportunities in the neighborhood, to name a few. But an important and often overlooked consideration is the insurance implications of your purchase. You will be paying insurance on your home for as long as you own it, so you should factor the cost of insurance into the home-buying process. You don’t want to find out that your dream home is more expensive to insure than you thought—after you own it!

 Before You Start Looking for a Home

Thinking through all the costs associated with buying a home will make the process run more smoothly, and it may also save you money. It is important to:

Check Your Credit Rating

A good credit history helps you in many ways. Good credit makes it easier to get a mortgage at a competitive rate, and it may also qualify you for a good credit discount on your insurance. Make sure you know your credit rating before you apply for a mortgage. Get a copy of one or all of your credit reports. Make sure they are accurate and report any mistakes immediately. If your credit is not as good as it could be take steps now to improve it. The I.I.I. has information on credit and insurance to help you with this process

Protect Yourself with a Renters Insurance Policy

If you are currently renting a house or apartment, protect yourself financially with a renters insurance policy. This provides insurance protection in the event a fire, hurricane or other insured disaster damages or destroys your personal possessions. It also covers the cost of additional living expenses if something happens to make your rental home or apartment unlivable. Additionally, renters insurance gives you liability protection if someone is injured in your home and decides to sue you. Disasters happen, and it would be unfortunate to have to use the down payment you saved to buy your new home to pay for losses that could have been covered by renters insurance. Furthermore, having a renters insurance policy provides a useful insurance
history to your prospective homeowners insurer when you go to buy your first home.

While House Hunting

As you search for your new home, remember that the physical characteristics of the house—its size, location, construction and overall condition—can affect the cost, choice and availability of home insurance. Following are some factors to consider when shopping for a home:

Quality and Location of the Fire Department

Houses that are located near highly-rated, permanently staffed fire departments usually cost less to insure. This also holds true for homes that have a hydrant nearby. An important underwriting criterion for insurance companies is a community’s investment in fire protection, which includes trained firefighters, proper equipment and adequate supplies of water.

Proximity to the Coastline
Houses located on or near the coast will generally cost more to insure than those further inland. There will also likely be a hurricane or windstorm deductible. This is a percentage deductible based on the cost to rebuilding a home, rather than a flat dollar amount. With a homeowners policy that has a $500 standard deductible, for example, the policyholder pays the first $500 of the claim before insurance kicks in. However, as percentage deductibles are based on the home’s insured value, if a house is insured for $100,000 and has a 2 percent deductible, the first $2,000 of a claim is paid out of the policyholder’s pocket.

There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes; and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary by state and range from 1 percent to 5 percent of a home’s insured value. These come into effect if certain triggers occur—a deductible triggering event can be, for instance, an official National Weather Service declaration that a storm is generating hurricane-strength winds (i.e., 74 miles per hour, or more) in your community.

In coastal areas with high wind risk, some homeowners may select higher hurricane deductibles to lower their insurance premiums, but that means they pay more if their home is damaged. In some coastal communities, private homeowners insurance coverage may not be readily available. Instead, you may need to purchase insurance through a state-run insurance program, which can provide less coverage, and in some cases be more costly, than private insurance.

Age of the Home

A stately, older home can be quite beautiful, but ornate features such as plaster walls, ceiling molding and wooden floors may be costly to replace and raise the cost of insurance. Plumbing and electrical systems can become unsafe with age and lack of maintenance. So, older homes may cost more to insure. If you are considering buying an older home find out how much it will cost to update these features and factor it into the cost of ownership.

Condition of the Roof

Ask about the condition of the roof. A new roof matters to insurers and keeps you and your family safer. Depending on the type of roof and whether or not you use fire and/or hail resistant materials, you may even qualify for a discount. Talk to your insurer about qualifying discounts.

Is the Home Well-Built and Up to Code?

Find out whether the house has been updated to comply with current building codes. Homes built by careful craftsmen and those built to meet modern engineering-based building codes are likely to better withstand natural disasters. Consider hiring a licensed home inspector who is knowledgeable about the latest building codes to inspect the property before you sign a mortgage.

Risk of Flooding

Damage from flooding is NOT covered by standard home insurance policies. If you are buying a home in an area at risk from flooding, you will need to purchase separate insurance. Insurancefor flooding is available from the federal government’s National Flood Insurance Program (NFIP), which is serviced by private carriers, and from a few specialty insurers. People often underestimate the risk of flooding. Ninety percent of all natural disasters in the U.S. involve flooding, according to the NFIP. More important is that 25 to 30 percent of all paid losses for flooding are for damage in areas not officially designated as special flood hazard areas. If you are not in a high-risk flood zone, NFIP coverage is available at a lower premium.

History of Earthquakes

While earthquakes are most frequently associated with California, they have occurred in 39 states and, like flooding, are not covered under standard home insurance policies. Earthquake insurance is available from private insurers as an endorsement to a homeowners policy, and in California from the California Earthquake Authority, a privately funded, publicly managed organization. The cost of earthquake insurance differs widely by location, insurer and the type of structure being covered. Generally, older buildings cost more to insure than new ones. Wood frame structures may benefit from lower rates than brick buildings because they tend to withstand quake stresses better. Regions are graded on a scale of 1 to 5 for likelihood of quakes, and this
difference is reflected in insurance rates.

Swimming Pool or Other Special Feature

If the house has a swimming pool, hot tub or other special feature, you will likely need more liability insurance. You may also want to consider purchasing an excess or umbrella liability policy to provide added protection in the event someone gets injured on your property and decides tosue you.

Before You Place a Bid on the Home

Check the Loss History Report

Ask the current owner of the house for a copy of the insurance loss history report, such as a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report from ChoicePoint or an A-PLUS report from ISO, a leading source of information about property/casualty insurance. This is a record of insurance claims on the house that can provide answers to two questions that any savvy homebuyer should ask:

Have there been any past problems in the home?

If damage has occurred, was it properly repaired?

Note that prior claims are not a barrier to getting insurance. In fact, sometimes a recent claim can have positive ramifications. If, for example, a roof was damaged by a wind storm and replaced by a new one, this would make the house more desirable to an insurance company. If there have been no claims within five years, there will be no loss history report on the home.

Get the House Inspected

A thorough inspection of the home is very important. The inspector should:

• check the general condition of the home;
• look for water damage, termites and other types of infestation;
• pay special attention to the electrical system, septic tank and water heater;
• show you where potential problems might develop;
• double-check that past problems have been repaired;
• suggest upgrades or replacements that may be needed.

If the inspector raises questions, your insurance company will as well. And, be sure to find out if there is an underground oil storage tank, as many insurers will not provide policies for homes that have one.

Determine How Much It Will Cost to Maintain the House

Routine maintenance is your responsibility as a homeowner. Losses caused by failing to properly care for your home are not covered by standard homeowners insurance policies. The yearly cost of taking care of your house is another factor to be included in the overall price of owning the home.

Call Your Insurance Representative

Don’t wait until the last minute to think about insurance. Ask your insurance professional if the house will qualify for insurance, and get an estimate of the premium. The sooner you act, thesmoother the process will be. Don’t be shy about asking for estimates on more than one house. Insurance is an important consideration when purchasing a home. If you are uncomfortable with the cost of insuring a particular house, keep looking for one that better fits your financial situation. If you do not already have an insurance agent or company representative, get recommendations from family, friends or co-workers, or consult your state insurance department.

Purchasing Insurance for your New Home

When purchasing a home insurance policy, work with your insurance agent or company representative to get enough insurance to rebuild the house in the event of a total loss. No new home buyers want to think that their house could go up in flames, but disasters do happen. It’s important to have enough insurance to completely rebuild your home and replace all of your personal possessions. You also need to make sure you have enough liability insurance to protect your financial assets. Ask about additional coverage such as:

• Replacement cost for personal possessions
• Extended or guaranteed replacement cost for the structure
• Building code upgrades
• Sewer and drain back-up coverage
• Inflation-guard
• Umbrella coverage for a pool or other high-risk items
• Special riders for jewelry, collectibles and expensive items

To save money on your homeowners insurance, shop around and take the highest deductible you can afford. Since most people only file a claim every eight to 10 years, having a higher deductible saves money over time and preserves your insurance for when it’s really needed. You can also ask about available discounts for:

• Multi-policy (home, car or other policies with the same company)
• Smoke detectors
• Fire extinguishers
• Sprinkler systems
• Burglar and fire alarms that alert an outside service
• Deadbolt locks and fire-safe window grates
• Being 55 years old and/or retired
• Long-time policyholder
• Upgrades to plumbing, heating and electrical systems
• Earthquake retrofitting to make the home safer
• Wind-resistant shutters

Additional Resources

• ChoicePoint
• CLUE reports
• Fair Isaac
• To order a credit report, MyFICO.com
• For help in determining your credit score, call 800-777-2066
• Institute for Business & Home Safety
• ISO
• -To order a copy of your A-PLUS report, call 800-709-8842
• -For up-to-date information on fire protection services throughout the country, see the Public Protection Classification program
• National Flood Insurance Program

This article was printed by the Insurance Information Institute. More information about teh Insurance Information Institute can be found by visiting their website at http://www.iii.org/

"My $90,000 Car Isn't Covered By Your 15 Minute Insurance"

The good news: Last month you spent the 15 minutes needed to save $15 a month on your car insurance...hooray, that's $180 per year (that's a whopping 50 cents a day!)

The bad news: This month you rear-ended a jerk with a seriously bad attitude driving his $90,000 ego (his car) and now you're about to find out how good your 15 minute insurance coverage really is.

So what's REALLY important when it comes to your car insurance?  Saving $15 a month is nice, who wouldn't want an extra $180 per year in their pocket, but is saving $15 a month that important when your thinking about your insurance? Here are a few things of even greater importance to consider when buying your car insurance:

1. In Colorado, if you cause the damage you pay the bills. If you do not carry enough insurance to cover the costs (like the previously mentioned $90,000 car) than the rest comes out of your pocket. Carrying lower liability limits (one way the 15 minute insurance companies use to lower your rates) is only smart if you never have an accident and who knows if you'll ever have an accident - that's why there called "accidents and not "on purposes."
2. The number of uninsured drivers in Colorado is on the rise and reaching record numbers. If one of them hits you and you can't work for a month, what's the chance they're going to have enough money to cover your medical bills, work loss and pain and suffering? Yes, they owe you the money but if they can't even afford to pay insurance you're probably not going to get much out of them. Carrying higher uninsured motorist coverage is a wise idea in this era of increased uninsured drivers. Providing lower coverage is another way the 15 minute insurance providers lower your cost)

No agent, no guidance, no help with choosing the right coverage to protect you from the over paid jerk in the $90,000 car that you just rear-ended. Sometimes 15 minutes COSTS you in the end...like when you're being sued for the things you new insurance policy doesn't cover.

Talk to a local, professional agent to find out what coverage you do and do not need to get the best insurance value - the PROPER coverage for the best price.

Robert Edgin

Tips For Insuring Your Home - The Structure & Personal Property

Insurance is something most people don’t even want to think about until they need it the most. But, understanding what is and isn’t covered in your homeowners insurance policy can mean the difference of being able to rebuild your home and replace your personal belongings. Homeowners need to do annual insurance policy "check ups" to make sure they keep up with local building costs, home remodeling and inventories of their personal belongings.

The typical homeowners insurance policy covers damage resulting from fire, windstorm, hail, water damage (excluding flooding), riots and explosion as well as other causes of loss, such as theft and the extra cost of living elsewhere which the structure is being repaired or rebuilt.
Your policy also covers your legal liability (up to policy limits) if you, members of your family or even your pets hurt other people or their property, not just in your house, but away from it, as well. Click here for more information on general liability coverage and umbrella policies.
When you insure your home, you are really insuring two distinct things:

1. The Structure
2. Your Personal Property


There are three options to insure the structure of your home:

1.Replacement Cost. Insurance that pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited to a maximum dollar amount.

2.Extended Replacement Cost. An extended replacement cost policy, one that covers costs up to a certain percentage over the limit (usually 20%). This gives you protection against such things as a sudden increase in construction costs.

3.Actual Cash Value. This covers the cost to replace your home minus depreciation costs for age and use. For example, if the life expectancy of your roof is 20 years and your roof is 15 years old, the cost to replace it in today’s marketplace is going to be much higher than its actual cash value.

Tips for Insuring Your Home to Value

You should insure your home for the total amount it would cost to rebuild your home if it were destroyed. That’s not the market value, but the cost to rebuild. If you don’t have sufficient insurance, your company may only pay a portion of the cost of replacing or repairing damaged items. Here are some tips to help make sure you have enough insurance:

•For a quick estimate on the amount to rebuild your home: multiply the local building costs per square foot by the total square footage of your house. To find out the building rates in your area, consult your local builders association or a reputable builder. You should also check with your insurance agent or company representative. (Note: This is only an estimate and shouldn’t replace annual coverage reviews).

•Factors that will determine the cost to rebuild your home: a) construction costs b) square footage of the structure c) type of exterior wall construction—frame, masonry or veneer d) the style of the house (ranch, colonial) e) the number of rooms & bathrooms f) the type of roof g) attached garages, fireplaces, exterior trim and other special features like arched windows or unique interior trim.

•Check the value of your insurance policy against rising local building cost EACH YEAR. Check with your insurance agent or company representative if they offer an "INFLATION GUARD CLAUSE." This automatically adjusts the dwelling limit when you renew your policy to reflect current construction costs in your area. However, you still should keep up with local building costs by checking in periodically with your local builders association.

•Check the latest building codes in your community. Building codes require structures to be constructed to minimum standards. If your home is severely damaged, you might have to rebuild it to comply with the new standards requiring a change in design or building materials. These generally cost more.

•Do not insure your home for the market value. The cost of rebuilding your home may be higher or lower than the price you paid for it or the price you could sell it for today.

•Most lenders require you to buy enough insurance to cover the amount of your mortgage. Make sure it’s also enough to cover the cost of rebuilding.

•Advise your insurer and increase the limits of your policy if you make improvements or additions to your house.

Two ways to insure your personal belongings:
1.Replacement Cost Coverage. Insurance that pays the dollar amount needed to replace damaged personal property with items of like kind or quality without deduction for depreciation.

2.Actual Cash Value. Insurance under which the policyholder receives an amount equal to the replacement value of damaged property minus depreciation. Unless a homeowners policy specifies that property is covered for its replacement value, the coverage is for actual cash value.

Here are a few things to keep in mind when you’re insuring your stuff:

•Check the limits of your policy on personal items, such as jewelry, silverware, furs and computer equipment. If the limits are too low, consider buying a special personal property endorsement or a "floater." An endorsement is an addition to your policy. A floater is a form of insurance that allows you to insure valuable items separately.

•Make an inventory of everything you own in your home and in other buildings on the property. Write down major items you own along with all available information, such as (a) serial numbers (b) make and/or model numbers (c) purchase prices (d) present value (e) date of purchase. Click here for more on home inventories.

•Document your inventory. Take either still or video pictures and attach receipts to the inventory when available. Store the inventory and visual records AWAY from your home—perhaps in a safe deposit box.

•Update the inventory when you make major purchases.

The most important thing you can do to safeguard your home and property is to understand that your insurance policy is a contract and you need to know what’s in it. Your insurance agent or company representative will be able to walk you though it and answer any questions.

The bottom line: Don’t put your policy up on a shelf somewhere and let it collect dust! Review your policy every year.