Your Independent Insurance Agent

I spend a good amount of my time explaining things about insurance to people who think they know something but are patently wrong.

Some of this can be due to deliberate misleading information spread by a few nefarious individuals. The majority however is based in a unfortunate by product of living in the information age. It’s become nearly impossible to find good reliable facts when the internet is full of misinformation.

Lesson 1, Chapter 1

You don’t know as much about insurance as you think you do.

I know that the marketing masterminds have you convinced otherwise by popular television ads that constantly talk about shopping for insurance yourself on the internet. Truthfully, as an average every day consumer, you may be able to do this your entire life and get by without ever having a problem.

But there is a reason that states require you to be licensed as insurance agents to sell insurance. You can spend your entire life paying for something that is completely worthless and you’d never know because you never asked a qualified agent.

It would be worthless because you are personally not covered under the policy but you never took the time to ask someone who knows. We throw around words like licensed, bonded, and insured but does anyone really know what that means? Did you know that you can slap those words on your marketing with very little trouble? Does anyone ever ask to see proof of insurance or licensing or bonding? Of course not because then where would you start? Would you know what to look for?

An independent insurance agent does. Find one today in your neighborhood!

Warner Phelps, MBA, CLCS

www.warnerphelps.net

D: 936-494-6115

This isn’t part 2 of a series or anything but enough people inquire about these topics through search that I wanted to offer this information for those who come here via search from the internet.

Edited by author on 6/15/2011:

For whatever reason, this post has been the most popular of all my blogs. Here is my quick synopsis of basic, broad and special form coverage for those who come here via internet search:

Basic coverage, sometimes referred to a HO-A, is the most stripped down version of homeowner insurance coverage available. It includes coverage against damage from windstorm, hurricane and hail in addition to other named perils.

Broad coverage, sometimes called HO-B, takes the basic coverage and adds a few insured perils.

Special form, sometimes called HO-C, is the most comprehensive form and usually includes an open peril coverage, which means coverage is included for everything. UNLESS IT IS SPECIFICALLY EXCLUDED.

I hope this added information is helpful. However, my advice for all insurance consumers is summed up as thus: DO NOT DO IT YOURSELF. There is too much at risk to not know with certainty that you are covered. And trust me when I tell you that coverage varies widely, nearly on a house to house basis. Find an independent insurance agent in your community. Email or call me if you are confused. I am always eager to help. Give me a chance to show you!

END OF AUTHOR’S EDITS

In Texas, Homeowner insurance is limited in several ways. Your policy should have A, B, C, D, E and F limits. Has anyone ever explained to you what that means?

A – The limit of insurance on your physical home – The cost to replace and/or rebuild your home due to catastrophic loss
B – The limit of insurance on “other structures” – Usually includes sheds and other buildings but if you have an unattached garage, this is part of that limit
C – The limit on personal property – Basically everything from the studs in is included in this number, furniture, fixtures and clothing. It seems like a lot of money but you’ll burn through this money fast when you start to think about buying new clothes and furniture, appliances, etc. And you better hope that you have “Replacement Cost” coverage. Because if you don’t you’ll be getting $80 for the $1500 couch you bought 10 years ago.
D – Loss of use – The limit of what will be paid if you are unable to live in your house
E – Personal Liability – Did you know the average liability claim in Harris County, after jury trial, is $270,000?
F – Medical Payments – A coverage that can be used if you are not liable but still want to rectify the damaged parties.

Confusing, isn’t it? Has your agent ever explained this process to you? I bought insurance from different agents for 5 years and never understood any of this until I became an agent myself. I hope you’ll consider how much is at stake the next time you think about insurance because it’s a lot more than saving $100 here and there.

And furthermore, that doesn’t even scratch the surface of whether or not you have a broad form or special form coverage. It can be confusing. Don’t do it yourself, get an agent involved. DO IT!

Call or email if you would like to know more!

Warner Phelps
Your Independent Insurance Agent
281-450-6774
www.warnerphelps.net

Please remember that if you or your friends ever need any assistance with insurance related questions, I am here to help.

A wrongful-death lawsuit filed against retired Texas Supreme Court Chief Justice Tom Phillips and his wife is calling attention to liability and insurance issues for social hosts. The Phillips are being sued by the parents of a teenager who died in a 2009 car accident after allegedly attending a party hosted by the Phillips’ son where underage drinking occurred. The history of social host liability in Texas provides an interesting side note to the case. In November 2001, Phillips agreed with a majority of the other justices in a Supreme Court decision (Reeder v. Daniel) in which the Court majority declined to impose a social-host civil cause of action for serving alcohol, including to persons under age 18. In his concurring opinion, however, Phillips noted, “There are sound policy reasons for holding adult social hosts liable for providing alcohol to minors.” The Texas Legislature took note and in 2005 passed an amendment to the Dram Shop Act (Chapter 2 of the Texas Alcoholic Beverage Code) that allows adults to be held liable for damages proximately caused by the intoxication of a minor under the age of 18, if the adult served or provided the alcohol, or allowed the minor to be served or provided alcohol on premises owned or leased by the adult.

Where is the coverage for liability arising out of serving alcohol in a social setting, including the liability imposed on social hosts by the Dram Shop Act? There is no liquor liability exclusion in the Texas or ISO homeowners policies. What about the intentional acts exclusion? The exclusion precludes coverage for BI or PD which is “caused intentionally by or at the direction of the insured” (Texas form) or “expected or intended by an insured” (ISO form). Texas courts have consistently ruled that this exclusion is effect-focused and not cause-focused, voiding coverage only when the resulting injury was intentional, not merely when the insured’s conduct was intentional.

What about a lawsuit involving an auto accident caused by an intoxicated guest after leaving the party? The auto exclusion on the Texas homeowners policy only applies to autos owned or operated by or rented or loaned to an insured, so the policy would defend the insured if he or she were sued by a third party for a liquor-related auto accident. The auto exclusion on the ISO homeowners policy is more restrictive and would not apply in the same case. Coverage may be available in the Texas or ISO personal auto policy. The PAP covers an insured’s liability arising out of an auto accident involving a nonowned auto – even if the auto is operated by someone else – subject to certain exclusions not relevant in this case.

The previous information was authored by David Surles of IIAT. Shared here for client and potential client information

Edited by author on 6/15/2011:

For whatever reason, this post has been the most popular of all my blogs. Here is my quick synopsis of basic, broad and special form coverage for those who come here via internet search:

Basic coverage, sometimes referred to a HO-A, is the most stripped down version of homeowner insurance coverage available. It includes coverage against damage from windstorm, hurricane and hail in addition to other named perils.

Broad coverage, sometimes called HO-B, takes the basic coverage and adds a few insured perils.

Special form, sometimes called HO-C, is the most comprehensive form and usually includes an open peril coverage, which means coverage is included for everything. UNLESS IT IS SPECIFICALLY EXCLUDED.

I hope this added information is helpful. However, my advice for all insurance consumers is summed up as thus: DO NOT DO IT YOURSELF. There is too much at risk to not know with certainty that you are covered. And trust me when I tell you that coverage varies widely, nearly on a house to house basis. Find an independent insurance agent in your community. Email or call me if you are confused. I am always eager to help. Give me a chance to show you!

END OF AUTHOR’S EDITS

In Texas, Homeowner insurance is limited in several ways. Your policy should have A, B, C, D, E and F limits. Has anyone ever explained to you what that means?

A – The limit of insurance on your physical home – The cost to replace and/or rebuild your home due to catastrophic loss
B – The limit of insurance on “other structures” – Usually includes sheds and other buildings but if you have an unattached garage, this is part of that limit
C – The limit on personal property – Basically everything from the studs in is included in this number, furniture, fixtures and clothing. It seems like a lot of money but you’ll burn through this money fast when you start to think about buying new clothes and furniture, appliances, etc. And you better hope that you have “Replacement Cost” coverage. Because if you don’t you’ll be getting $80 for the $1500 couch you bought 10 years ago.
D – Loss of use – The limit of what will be paid if you are unable to live in your house
E – Personal Liability – Did you know the average liability claim in Harris County, after jury trial, is $270,000?
F – Medical Payments – A coverage that can be used if you are not liable but still want to rectify the damaged parties.

Confusing, isn’t it? Has your agent ever explained this process to you? I bought insurance from different agents for 5 years and never understood any of this until I became an agent myself. I hope you’ll consider how much is at stake the next time you think about insurance because it’s a lot more than saving $100 here and there.

And furthermore, that doesn’t even scratch the surface of whether or not you have a broad form or special form coverage. It can be confusing. Don’t do it yourself, get an agent involved. DO IT!

Call or email if you would like to know more!

Warner Phelps
Your Independent Insurance Agent
281-796-9798
www.warnerphelps.net

Please remember that if you or your friends ever need any assistance with insurance related questions, I am here to help.