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Who we represent and why?

 

The insurance industry is weird or is it? Like any industry there are those that want to sell direct through exclusive distributors, those that wholesale through non-exclusive distributors, and those that sell direct online to the consumer. As an independent agent we work with companies that wholesale non-exclusively. Here we try to introduce you to the Insurance Companies We Represent and Why. We represent many different companies to try to ensure you get the best coverage at the best rate year after year.

 

Thing is some people have never heard of the companies we represent. So they have to be small and unheard of, right? Not really. We actually work with some of the most reputable companies in the market. In this blog we try to give you an idea of who we represent and how large they actually are.

 

Let’s start with auto insurance. There is a group called the NAIC that reports how large companies are in the US. The data below is from that list.

 

Auto Insurance Company Ranking by Size in 2017
RankCompanyPremium in Billions
1State Farm41
2Berkshire Hathaway Grp (GEICO)29
3Progressive22
4Allstate21
5USAA13
6Liberty Mutual/Safeco11
7Farmers10
8Nationwide7
9Travelers4
10American Family4
11Auto Club (AAA)3
12Erie3
13Amtrust/National General3
14CSAA (AAA)3
15Autoowners2.5
16Mercury2.4
17Metlife2.4
18Hartford2.3
19Auto Club Michigan (AAA)1.7
20Mapfre1.7
21Kemper1.4
22Amica1.3
23Infinity1.2
24Country Ins & Financial Services1.1
25The Hanover1.1
Bolded and italicized  companies are represented by Gila Insurance Group

 

 

 

We represent Progressive, Allstate, Liberty Mutual, Travelers, National General, Mercury, MetLife, Kemper, and Infinity. Yes that’s right, we represent 36% of the top 25 auto insurance companies in the US. 9 of the top 25.

 

Let’s look at homeowners.

 

Homeowners Insurance Company Ranking by Size in 2017
RankCompanyPremium in Billions
1State Farm17
2Allstate8
3Liberty Mutual/Safeco6.4
4USAA6
5Farmers6
6Travelers3.5
7Nationwide3.2
8American Family3
9Chubb LTD Group2.7
10Erie1.6
11Autoowners1.4
12AIG1.1
13Metlife1.1
14Progressive1
15Hartford1
Bolded and italicized  companies are represented by Gila Insurance Group

 

With homeowner’s insurance there are still a lot of companies, but they tend to get small quick. We are going to focus on only those that write over 1 billion dollars in insurance, which leaves us with the top 15 carriers. We represent Allstate, Safeco, Travelers, and MetLife.  Of the top 15 homeowner’s carriers Gila Insurance Group represents 27% of the top 15.

 

With 36% of the top auto carriers and 27% of the homeowner’s carriers represented by Gila, the question stands… why would you need to go anywhere else?

 

Remember we shop these carriers to ensure you get excellent coverage at an affordable price. If one of these companies decides to drastically change your rate, we will monitor that and start shopping the rate for you. Each of the companies we represent and work with are large recognized carriers with the financial stability to be there when you have a claim.

 

We can provide quotes for many of these companies online at GilaInsurance.com.

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Scheduled Personal Property

Yes is Matters

For some, this article will not make any sense whatsoever. Everything you own is cheap, and nothing you own is worth anything. Put me in that camp. Maybe it was my upbringing, or maybe its because I live in a rural town with Walmart and Home Depot. In short, a dollar in a mutual fund is more important to me than a nice Dewalt Table saw. For my wife’s sake I hope I can get to the point where I can spend a little, but that day hasn’t arrived. For others you own property that is actually worth something. This could be jewelry, furs, guns, collections, rare items, tools, antiquities, and the list goes on. Did you know there are limits on your policies for some of these items, but regardless of the limit If you have something that’s actually worth something. You should make sure its covered like you need it to be.

Sometimes this will require a long drawn out process. This is going to depend on what it is you are trying to insure, and how much you want to insure it for. Meaning you may need an appraisal, but your great grandfathers gun is really worth that much is going to be invaluable, but if something happens a replacement might be the next best thing. Same thing could be said for the rock on your wife’s hand. New or old somethings are worth covering, and making sure you have the right coverage.

Other times adding coverage for these things can be as simple as increasing predetermined limits That exist on your policy. For example, without changing the policy you only have $1500 in coverage for theft of jewelry and furs. That isn’t per item, that’s total. Or $2500 in for theft of firearms and related equipment. That really isn’t a lot.

So, before you purchase your homeowner’s insurance policy, be sure to actually think about what matters to you.

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Understanding Comprehensive & Collision Coverage

Comprehensive & Collision Insurance Coverage in Safford, AZSomewhere along the way people started asking for “full coverage.” Usually this coverage refers to what an auto insurance policy refers to as collision and other than collision (comprehensive). These are pretty straight forward so we will take a look at these coverage options together.

Collision is defined as impact with another vehicle or object. Pretty straight forward, but it also includes upset, which is a roll-over accident. One piece as we will see in a second is that collision with an animal is actually covered in the other than collision section of the policy.

 COMMON OTHER THAN COLLISION (COMPREHENSIVE) COVERAGES

Other than collision is about the most comprehensive coverage package that is found in any insurance policy. It specifically states there are things covered, but then leaves the door open to a lot more. Things that are specifically covered under other than collision (comprehensive) included:

  1. Missiles or falling objects
  2. Fire
  3. Theft or larceny
  4. Explosion or earthquake
  5. Windstorm
  6. Hail, water, or flood
  7. Malicious mischief or vandalism
  8. Riot or civil commotion
  9. Contact with a bird or animal
  10. Glass breakage*

Again, not an all-inclusive list of what the comprehensive policy might cover, but rather things that are specifically covered under Other than collision (comprehensive)

* A comment on glass breakage. Today most companies make this an optional coverage and charge an additional premium for it. In the state of Arizona if glass coverage is purchased it comes with no deductible applied in most cases. Also if the glass breakage is cause by a collision in most cases you can elect to have it considered a loss covered by collision.

If it’s covered why split things into collision or other than collision? Well if you look at the other than collision vs collision in most cases there is not a lot of things that you can do to prevent the other than collision losses. On the other hand, collision is very much in your control. So the losses are treated differently when it comes to how the companies determine what your rate will be. It’s not to say that an other than collision loss with never have an impact on your rate, but it’s likely to have a LOT LESS of an impact.

A final thought on collision and other than collision coverage (comprehensive), these coverage options are subject to a deductible. The higher the deductible, the lower the cost, and the lower the deductible the higher the cost. What is a deductible? In the event of an accident the deductible is the part of the claim that you will be responsible for paying.

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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How to File an Insurance Claim

HOW TO FILE AN INSURANCE CLAIM

Insurance claims don’t have to be difficult. They are never going to be convenient, but they can go smoothly. Knowing what to expect is half the battle, and being proactive can help things move along. There are a few basic steps in the claims process.

  1. Preparing to call – Before you call to file your claim it doesn’t hurt to have a few things on hand to make the process go smoother.
    1. Your Policy Number
    2. The date the loss happened
    3. A description of what happened
    4. Your contact information
    5. Contact information for any witnesses or other people involved.
  2. Filing a claim – As soon as you have had a claim you will need to file it with your company. Today that can be done in a number of different ways. Sometimes the easiest is to simply pick up the phone. Below are phone numbers for each of the companies that we represent. How to file an insurance claim in Arizona
  3. Getting an Adjuster – Once you have filed your claim you will be assigned an adjuster that will handle your claim. Depending on the type of claim this could be a team or an individual.  Once you have filed your assigned adjuster will reach out to you to introduce themselves and explain the process related to your claim.
  4. Gathering information – The adjuster’s responsibility is to gather information about the claim, determine the value of the loss, make sure that coverage applies to the loss, and to settle the claim. They will ask lots of questions, explain coverage, and suggest ways to minimize further damage. If needed they might schedule an appointment to come review the damage.
  5. Estimating the damage – Once it has been determined that your loss is covered they the adjuster will work with you to get estimates for repair.
  6. Settling the claim – Once estimates for repair have been received, the company will then pay you for the loss (remember there will be a deductible).
  7. Closing the claim – Once the claim has been paid, the claim will be closed. If there are additional costs related to that claim, your claim can be reopened to investigate if coverage applies.

HOW LONG WILL YOUR INSURANCE CLAIM TAKE TO CLOSE?

It depends on how complex of a claim it is, so ask the adjuster when you talk to them. Staying on top of things, getting estimates in a timely manner can have a big impact on how quickly it takes to close the claim.

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Understanding Debris Removal

Debris Removal Insurance Coverage in Safford, AZSome coverage is hard to explain, it’s much easier to just say see! That is exactly the case with debris removal. Debris removal isn’t difficult to explain, it’s just the cost to remove the pile of trash your insurance claim just left. If there is a fire, it’s going to be the ashes and rubble, but also the mess the fire department caused while putting it out. Let’s be real they are great a putting out fires, but they aren’t exactly tidy. If there is a flood, we might be looking at all the damaged drywall and installation. Some of it might be moldy or muddy. The point is there is a cost to haul it away. But there is also going to be a cost for the demolition, which can get pretty costly.

Recently near my office there have been two fires. The first was in a second level apartment. The second was in a single-family home rented to a young couple. It was on one of my many strategy walks that I decided to explain debris removal through picture.

Debris removal is usually included in most property insurance policies, but like most things with an insurance policy there are limits. Depending on where it is commercial insurance or a homeowner’s policy it can vary, but here are some things to consider when it comes to debris removal.  How unique is your building? How old is your building? How much space is around your building. All of these and more can cause additional costs in removing debris from your property. Another consideration is building materials. Is there any asbestos in the building? The cost of asbestos disposal adds additional cost to debris removal.

As is not unusual, insurance policies provide coverage for a number of different situations that you probably hadn’t even considered. While we may often complain about insurance the truth is that the benefits provided by our insurance policies are amazing.

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Communicating with your insurance company – You have options

Insurance companies can rightly be described as technological dinosaurs. I mean for years one company has been extolling the virtues of getting a quote in 15 minutes. On a side note did you know you can get a quote from multiple companies on GilaInsurance.com in just a few minutes as well? Again, dinosaurs. I mean my patience for 30 second in a microwave is almost nil. Don’t even get me started on when the internet decides to have a traffic jam (super highway. It’s supposed to be a super highway, that means no buffering, right?). Moreover, in our office we have often made the joke that we are in the tree killing business.  Why because it seems that insurance companies feel the need to print reams and reams of paper of stuff that you will likely never read (Gila Insurance Group LLC does not endorse this practice and highly encourages you to read your policy the writer was unwittingly feeling that pragmatism was witty). My favorite is the part of the insurance policy that states this page is left intentionally blank… why?

 

That said, increasing insurance companies are getting better at communications. They will text you, email you, mail you, allow you to access their app, and try to get you to sign in to their insurance portal. Basically, all the ways that you are likely to communicate insurance companies will now do. The question is, how do YOU communicate. Because that is the option you need to select.

 

Insurance companies do tend to send a lot of communication, but once you are a customer you are only likely to receive important documents. Your actual policy, bills, and renewal offers. All things that you should pay attention to. But more importantly, you may be receiving communications where the company may cancel or change the policy. These are thing that you must pay attention to. Why? because Murphey’s law dictates that the day your policy expires is the day you have something happen. State Law dictates how and when insurance companies can cancel a policy, and part of that is that they have to notify you.

 

While previously it could be said, hey, I was on the road I didn’t get that in the mail. Today there are too many ways that insurance companies communicate with their customer to blame the mail.

 

Moral of the story is, choose the communication method that works for you and be sure to pay attention to the communications you receive. It might be something annoying, but it might be something important.

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Why You Should Require Your Tenants to Have Renters Insurance

Renters Insurance Safford, AZDo you require your tenants to carry renters insurance? If not, you should. Why? Because it matters. I have a cousin that is a defense lawyer for a large insurance company. He defends them for liability cases. He has seen ALL sorts of crazy situations, and has a way of telling the story. The other day, he was explaining a situation that caught my attention. Landlords rents to a family. Tenants have a dog that would “never bite anyone.” Dog bites a kid. Takes a chunk out of his calf. The landlord was smart, and required his tenants to carry renters insurance. The limits the renters had weren’t high, but the hospital bill was covered. Good for the landlord, right? Wrong. Landlord also gets sued. Why, because while the hospital bills were covered there was some pain and suffering that wasn’t. So, naturally it would be the landlord’s responsibility for having allowed such a vicious dog to be on the premise. The verdict in this case was still pending when I spoke with him. But the outcome is irrelevant. He was their defending the insured, which brings up 3 things we can learn.

  1. The Defense costs provided by your landlord insurance policy are extremely important, without it, this poor landlord would have been footing the bill for this case.
  2. It would appear this landlord would have been on the hook whether or not the tenant had insurance, but because the tenant had insurance, the loss to the landlord was less that what it could have otherwise been.
  3. Ask about them, screen them, maybe don’t rent to people with them, and if you do, please remember Inspector Clouseau (https://www.youtube.com/watch?v=Kg0CQKQWLJI). Simply asking if their dog bites, may not be sufficient. If you do rent to people with dogs remember there are certain dog breeds that should be excluded in all cases. These include Pit Bulls, Rottweilers, Dobermans, Chows, Akitas, and other aggressive breeds. Yes, theirs might be the gentlest dog ever, but statistics show the bad liability claims are related to these types of breeds. Insurance companies don’t want to take the chance, and neither should you.

For a quote on renters insurance, contact us today.

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Home Insurance – Section 1 Exclusions

Home Insurance Exclusions in Safford, AZUnderstanding what’s not covered on your insurance policy lets you know what other insurance coverage you might need. Here are some of the BIG Exclusions.

Section I Exclusions – A Soap Box

What! Not everything’s covered?

Not everything is covered. That’s the bottom-line. Something’s we can find coverage for, while for other things, we are just out of luck. That said, regardless of whether you buy a special policy or not, you need to understand the exclusions, in order to truly understand your policy. Here are some of the most important exclusions found in section one… Why do I say it that way? Because there is a whole other section, just for exclusions. I know, not easy.

  1. Land – insurance doesn’t cover land. Why? ‘Cause you can’t hurt, dirt. This is an important point when you get into the idea of how to value your home.
  2. Ordinance or Law – So, if your local elected officials decide that every new building has to have a statue of Big Bird, but old buildings don’t, and your rental property burns to the ground and you have to rebuild… Guess what? You have to get that statue of Big Bird. Guess what else? The insurance company won’t pay for that. While no one requires Big Bird statues, there are other things, like sprinkler systems, where this happens all the time.
  3. Earth Movement – Now, depending on the state, you may or may not find earthquake coverage available. Even when earthquake coverage is available, things like, landslide, mine cave-ins, mudflow, sinkholes, etc. may not be covered. Can you get this coverage? You can in some states with a separate policy. Learn more about our catastrophic coverage policy here.
  4. Water – We all know Flood, tidal waves, etc. are not covered. What about overflows from drains, sump-pumps or sewers? Nope. Water is a tough one.
  5. Intentional Loss – For investors, this is big. It means there is no coverage for damage your tenants cause…. Which means it’s important to screen your tenants, so as to hopefully avoid the tenant that steals the copper and skates.

There are more, but these are the most important ones, in MY opinion. So, read the policy and find out what else might be important.

To get an incredible quote these coverage sections start our online quote form. To talk to a licensed agent about this coverage call us at 1-877-784-6787.

This coverage explanation is for illustration purposes only and is general in nature. Coverage explained here may not apply to your policy, State, company, or situation. For more information about how your policy would respond in the event of a loss, please refer to the terms and conditions and declarations page of your policy.
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Homeowner’s Insurance Coverage A

Homeowners Insurance Agent Safford, AZHomeowner’s Insurance Coverage A is the part of the policy that covers the home or dwelling itself. That seems simple enough, but wait, there’s more. It also covers any structure that is physically attached to the building. By that it means that it can’t be connected by a fence or a utility line, but rather physically attached to the dwelling. This may include attached decks, carports, patio covers.

When it comes to Homeowner’s Insurance Coverage A the question is always the coverage form, which can vary on the same home based on the occupancy of the home. For example if the home is vacant you might get a basic form with vandalism, theft, and malicious mischief excluded. However, if the home is owner occupied, a rental, or a second or seasonal home you might get a special form, which is always the best option.

One of the most difficult things about coverage A is determining the replacement value of the home which is the cost to rebuild the home as is. Market value is irrelevant as you can’t insure dirt. Land is excluded. Typically agents will use estimating tools to try to figure out a ball park, but appraisals can also be used. It is important to determine because if you don’t insure it for enough, you can get penalized in the event of a claim, and if you insure it for too much then you are paying to much for the insurance every month. Ultimately it is the insureds responsibility to determine the value, but there are things that can help you determine the value.

When it comes to the loss settlement, it often depends on what you choose. Typically you will have the option of replacement cost (the coverage you want) and Actual Cash Value. Choosing the replacement cost option will ensure that you are able to replace the home in the event of a loss. Actual cash value will provide you money as well, but it may not be what it needs to be to replace the home.

For a home insurance quote, contact us today!

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As Seen on TV

According to Statista.com in 2017 GEICO Insurance company spent nearly 1.4 billion dollars on advertising. Progressive? 622 Million. State Farm? 521 Million, and so on and so forth. Those are some staggering numbers.

Last week we lost a sale to someone who insisted on a “big name company”. It was a homeowner’s policy. We actually represent the company we lost it to, and had even provided the quote for that company to the customer, but we had recommended Travelers Insurance Company because they were cheaper and had better coverage… a lot better coverage. How do I know? Because the “big-name company” doesn’t offer the coverage… it’s not an option. Now I don’t fault the customer. We clearly didn’t present them in such a way that gave the customer confidence in Travelers. I would like to set the record straight:

As of 2016, Travelers is the 6th largest Property and casualty insurance company in the US, and the 9th largest in Arizona. They are the 6th largest homeowner’s provider in the US and 7th largest in Arizona. Point is we are talking a 29 billion dollar publicly traded company that is 106th on the list of the fortune 500 companies.

As an independent insurance agent, this is our fight. We, by our nature, sell companies that focus more on their products than on marketing. For example, we also represent Safeco, which is part of the liberty mutual group, the 3rd largest insurance company in the US, but they don’t sponsor baseball outs or have a cute mascot. What they (both Travelers and Safeco) do have is awesome coverage, and great claims service.

The point is this:  While you may not have heard of the company we are offering we do our homework. We are very contentious about our customer’s claims experiences, and work to ensure that we only represent quality companies. The insurance industry has a system for defining the quality of a company. AM Best provides ratings that are very much like grades A+, A, A- B+ etc. We only work with A-Rated companies to ensure you are covered by a solid company that is going to pay their claims.

While not all our companies spend millions upon millions on advertising they are good quality companies, that have awesome coverage, excellent claims service, and have chosen to work with independent insurance agents like Gila Insurance Group.

A final thought:  Last year, McDonalds spent 633 Million on advertising. Ruth Chris Steakhouse spent 6.7 Million according to emarketer.com. While McDonalds has its place, I know I would much rather eat a steak and Ruth Chris.

As with food, when it comes to insurance I recommend understanding the quality of what you are buying, and not putting all your stock in “As Seen On TV”.   It’s not always the best!

 

 

 

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