Yes, It Can Happen Here… and It’s A Problem!

Yes, it can happen here! Here being Safford, Thatcher, Pima and the Gila Valley. What is it? Insurance claims.

We don’t see many natural disasters. I mean, the last major flooding of the Gila River was in what, 93-94? We don’t have hurricanes or tornadoes. We live too far from the mountain to have an issue with wildfires. We did have that hail storm back in 2016, but as a whole we don’t see that happen often, which has become a problem. It’s a good problem, but it’s a problem. Why? Because we that are blessed to live in our secure little valley have been lulled into a false sense of security, and it has caused us to purchase insurance in the wrong way. What do I mean? We nearly solely focus on price rather than the coverage. If you buy solely on price, then your claims experience is going to reflect that fact.

Monday night’s storm brought up 3 kinds of claims that can and did happen here:

  1. The wind found a weakness in a tree and snapped it in half. So, the half of the tree fell on a new pick-up truck, hit the roof of the house and landed on block wall. As it was, only the truck was damaged…but it still begs some questions. What if it had caused damage to both the home and the truck? How would your policy respond? Did you know there are policies that would only apply one deductible to the same loss? What if it had caused damage to the block wall? I don’t know if the wall was owned by the tree owner…if not, that would be liability. How much liability do you have?
  2. In another part of town another tree fell. In this case it broke a waterline and caused the neighbor’s house to flood causing thousands of dollars in damage. Because it was a neighbor’s tree that caused the damage, the neighbor will likely be liable for the flood damage, and it will likely be a liability claim that covers the damage.
  3. As I drove to work there were trampolines strewn across the valley. Yes, strewn is the right word. Some were straddling fences, others were up against houses, others in the middle of a pecan orchard. First, as a community we may want to consider anchoring our trampolines better. Second, we have another liability risk as we our trampolines become airborne missiles hurling towards neighbor’s property.

There are certain things we recommend for every client purchase, if available. Replacement Cost on the home, special coverage on Personal Property, water back-up of sewers and drains, high liability limits, and even an Umbrella. I know we just threw a lot of insurance words at you, so come see us and let us explain why these things are important, and how cheap they really are. We have developed easy ways of explaining what’s available and why it’s important for you

Yes, we do live in an awesome little area. Yes, major storms are rare. But we need to take a look at coverage. Because if you’re not buying your insurance policy for the coverage, what are you buying it for?

Auto Liability Insurance

WHAT IS LIABILITY ONLY?

Auto Liability Insurance in Safford, AZThe Term liability only is thrown around a lot by Insurance agents and customers alike, but what does it mean? Too many customers is means give me the cheapest coverage I can buy so I can get out of here as soon as possible. But there are MANY things to consider when it comes to Auto liability insurance.

Let’s start with what liability covers. Most liability policies state that it covers “damages for bodily injury and property damage for which an insured is legally responsible because of an accident” or something similar. Let’s break that down for a second.

  1. There has to be damage. Either to property or person. The property damaged could be to a car, a house, a fence, or some other kind of property. Bodily injury means someone had to get medical attention of some sort. Could be by an EMT, a Doctor, a Chiropractor, etc.
  2. The insured has to be legally responsible for the damage (some level of liability). This means the police report deemed you to be at fault to some extent.
  3. There had to be an accident of some kind.

Sounds funny that we would break that down in such a way, but it is important that all 3 pieces exist. Liability also covers the legal fees required to defend you in the event that you do cause the damage described above. If you have recently spoken to a lawyer, you know how important this part of liability coverage actually is.

Like any policy there are exclusions to the auto liability insurance policy, and it is important that you understand these. For example;

  1. If you intentionally cause the damage – NOT COVERED
  2. If you are using it to transport people (yes Uber and Lyft Drivers I am looking at you) – NOT COVERED (liability coverage may be added to the policy by SOME companies.

There are many others, but these two are specifically worth noting in our road rage, Uber filled world.

Understand the liability limits on your policy. Usually auto liability is described in 3 numbers like this:

100,000/300,000/100,000

The first number indicates the bodily injury coverage per person. The second indicates the bodily injury coverage per accident (meaning the total payout for bodily injury), and the third number indicates the total coverage for property damage. So if you get in an accident and injure the driver the total amount in this case would be $100,000. At $100,001 in damage you are responsible for the additional $1.

Now, let’s say there are is a driver and 2 passengers. The total for any 1 person is still $100,000, but now the policy would pay $100,000 for each, so a total of $300,000. But let’s say there is the driver and 3 passengers and they all get hurt in an accident and it’s your fault and they all have major medical bills of $100,000 each. The policy pays out a total of $300,000, and you are on the hook for the other $100,000.

Clear as mud I am sure, but it’s important to understand that there are limits to the policy, and understanding these limits will help you to purchase liability coverage that suits your needs.

Liability for auto insurance is important. So much so it is required, by law, that driver’s purchase the coverage before getting on the road. Start Your Auto insurance online. We represent a number of different insurance companies to ensure you get great coverage at an affordable price every time.

This is a general explanation of coverage and different companies may treat these coverage options differently for information on exactly how your policy will respond please refer to your policy declarations page as well as the terms and conditions of your insurance policy.

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What’s the value of a 1-stock stock broker?

You wouldn’t buy a stock from a broker that just sold one stock. So why do you buy insurance that way? Unfortunately, so many real estate investors do exactly that. They go to an insurance agency that has one box (if you will) and one product. Sometimes investors fit in the box and other times, not so much. There are other options. Gila Insurance Group is an Independent Insurance Agent. What does that mean?  It means we represent multiple different companies. We have lots of different boxes and we work to find a policy that works for you. It means you fill out one application and get multiple quotes back. It means we have investor insurance options. It means we have investor insurance solutions. Options and solutions for you!

Are you just starting out and are doing your first flip? Or are you a seasoned long-term buy and hold investor with hundreds of properties under management? Here is what we have to offer.

For rehabbers: We work with Arcana, American Modern, Foremost, and Vacant Express. Each of these programs are a little different and can be modified to provide you with what you need.

Each includes:

  • Liability
  • Medical Payments
  • Coverage for the Dwelling

These Programs were designed with you in mind. For example, Arcana has no minimum earned premium. Meaning you get charged for just what you use. American Modern has a builder’s risk endorsement if you are adding on to the existing structure. Foremost allows you to have comprehensive coverage on the dwelling while its under renovation.

For buy and hold investors: We work with 9 different companies that work with Landlords. Some of these include CSE Insurance, Safeco, Travelers, Arcana, American Modern, Foremost, and American Reliable. Whether you have 1 or thousands we have insurance solutions that can help you drive down your cost with the coverage you need. Things like:

  • Liability
  • Coverage for the Dwelling
  • Loss of Rents

The key is to outsource the shopping to someone else. Someone like Gila Insurance Group. We have been working with investors for years and understand the struggles you face. In fact, we are investors ourselves and understand higher insurance costs mean lower returns and less cash in your pocket.

Don’t wait! Declare your independence by working with an Independent Agent or Broker like Gila Insurance Group LLC. Start your quote online now!