Lowering My “MOD”

Lowering My “MOD”



Do you know what your “mod” is and why it’s important for determining how much you pay for workers’ compensation insurance?

You should, because that knowledge can help you reduce your cost of work comp — or at least understand why your cost went up.

In work comp, each insured business gets its own experience modification rating, more commonly known as the “mod.” This rating, usually expressed in a number either less than, equal to or greater than 1, provides either a discount from or an addition to the rate an average business of that class of business would get.

The standard insurance rate for your type of business is multiplied by the mod to determine your actual premium. So you can see that the lower your mod, the lower your insurance premium. When it comes to your mod, lower is always better.

The complex formula for determining your mod is set by the Michigan Rating and Inspection Bureau. It takes into account various rating factors, especially your claims experience, payroll and premium. Generally speaking, the more payroll you have and the fewer claims, the lower your mod.

The most important thing to remember is that your mod is based on the cost and safety record of your business and is, therefore, under the control of your business.

One of the most important things you can do to reduce your mod from year to year is to improve workplace safety and reduce claims. The severity and frequency of your claims directly impact whether your mod rises or falls from year to year.

Some analysts believe that a history of small, recurring claims can have a greater negative impact on your mod than one large claim. Why? Because it suggests that a continuing problem exists at your business. Which is why you need to pay special attention to repeat accidents.

Taking every reasonable step to improve the safety environment of your workplace can pay off in a lower mod and the resulting lower work comp premium.

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Let Me Protect Your Business Against Data Breach

With the trend toward paperless data filing, nearly all companies and healthcare practices that handle or store any personally identifiable information, customer and patient OR employee data are at risk for a data breach. The possibility is especially high for businesses that routinely deal with credit cards, online orders, patient medical records, Social Security numbers and other sensitive information. 

Interesting Facts About Data Breach

• Data Breach is the fastest growing crime in America
• The average cost to mitigate damages is approximately $120-$300 per compromised record!
• Public relations costs to help in recovery from this type of crime are rarely considered until after the fact
• Customers and employees may require ongoing credit monitoring as peace of mind that they are safe
• A notification mailing will be required
• A breach can cause an interruption in business, the requirement to assess liability, obtain legal defense, potential monetary settlements, and a need for crisis management
• Because data breach occurrences are becoming more common, there are now regulatory requirements that need to be satisfied when a breach occurs. The cost to satisfy these requirements can be significant to any business owner. The Hartford feels so strongly about the small business owner’s responsibility to their employees and customers, that they have developed data breach coverage like no other I have seen so far. For those business owners who take their employee and customer relationships seriously, you may be interested in the coverage that The Hartford offers. If your line of business is within The Hartford’s underwriting appetite, with their Data Breach coverage you could have: • The peace of mind of knowing you have the insurance coverage needed to help pay for certain response expenses necessary to comply with notification regulations and to help avoid potential lawsuits that might be brought against you as the result of a breach; and • The confidence that services are available to help mitigate any damage to your business’ reputation and help quickly restore any loss of customer, patient or employee trust.

Should you be thinking about Data Breach coverage for your business? If you store employee’s and/or customer’s personal information the answer is YES!

Data breach takes toll on Target profit...

http://usat.ly/1fqFjRF

Tough as the holiday season was for many retailers, Wednesday's fourth-quarter earnings report proves that few had it tougher than Target, which was bedeviled during the peak shopping season by one of the largest-ever retail data breaches
That breach cost the company $61 million in the fourth quarter — $17 million in net expenses, and counting a $44 million insurance receivable. That includes paying the card networks to cover losses and expenses related to reissuing cards, lawsuits, government investigations and enforcement proceedings.
Target says it doesn't yet have an estimate of the full cost of the breach. Avivah Litan, a security analyst at technology firm Gartner, puts the costs of the breach between $400 million and $450 million.
The rest of the company's long-awaited fourth-quarter results tell a tale of woe: Net income fell 46% to $520 million, or 81 cents a share, from $961 million, or $1.47, a year earlier, the Minneapolis-based company reported.
At the same time, the discount retailer said that sales fell 5.3%, as many customers were leery about shopping after the breach. Revenue at stores open at least a year fell 2.5%.

New Cards, New Look, New Year!

 

Homeowners insurance risk warnings for Halloween celebrations issued

As property owners add their decorations and prepare for parties this weekend, there are certain cautions from the industry.

As Halloween approaches, people have started to decorate their homes in preparation for trick or treaters and for parties that will be held this upcoming weekend (the last one before the holiday), but the industry is warning that there are certain risks involved and that homeowners insurance should be properly checked and understood before proceeding.

This way, it can help to avoid possible problems and misunderstandings with insurers.

It can also help homeowners insurance customers to better understand potential liabilities associated with these celebrations. Even hanging decorations outside your property that are designed to give visitors an amusing fright should be done with caution, say experts. The reason is that there are many risks that are often not considered and that grow into preventable problems.

There are a number of homeowners insurance risks connected with Halloween decorations and celebrations.

The homeowners insurance industry is warning about everything from hanging decorations to handing out candy. The reason that handing out candy can be associated with a risk – regardless of whether you’re doing it yourself or leaving it out for trick or treaters to help themselves – is that there can be liability issues associated with having people on your property, particularly if they should slip, trip, fall, or otherwise hurt themselves.
An unsuspecting person celebrating Halloween and handing out candy could easily find themselves the victim of a lawsuit if a person claims that they hurt themselves on your property because it was too dark, because the pathway was uneven, or for other reasons. Typically, in those cases, homeowners insurance coverage will actually pay for a policyholder’s defense – which many people don’t actually know.
However, it is important for home insurance customers to read and understand their policies because there is typically a limit to the amount of coverage that will be paid out. A small “no fault medical” claim may not be a problem, but for larger injuries or extensive lawsuits, even a large sum, such as $100,000 in coverage, may not be enough.
http://www.liveinsurancenews.com/homeowners-insurance-risk-warnings-halloween-celebrations-issued/8530206/

Protect Yourself: Professional Liability Insurance

 

Whatever your profession, protecting yourself with professional liability insurance is not just a smart thing to do, but a necessity in today's litigious society. You have worked hard and put in years of education and work to get where you are in your career. Without the right coverage for potential negligence suits, you could lose everything you have worked so hard to achieve.

What It Covers

General liability insurance can protect you from a wide variety of claims against you and your business, but will not protect you from the type of lawsuit that can result from the simple errors we are all capable of making. Nor will it protect you from claims made against you that are unfounded. Remember that even if there is no truth to the accusations against you, you can still find yourself in court defending yourself and your professional reputation against them at a very high cost to you.

Those who provide a service or advice, or in any other way use their knowledge and experience to help others are in need of professional liability insurance. This includes things like errors and omissions insurance and malpractice insurance, both of which are types of professional liability. The similarity is that the types of lawsuits brought against professionals are usually based on actions, advice, or services that may not have caused property damage or direct injury but nonetheless can in some way be shown to be a result of the negligence of the professional.

Don't Take Chances

You do your best to provide good advice, to make sure that everything you do and offer to your clients is as accurate and helpful as possible, but everyone makes mistakes. And even when you didn't make a mistake, all it takes is someone who is unhappy with the outcome to turn on you and put the blame at your feet. These lawsuits can cost professionals incredible amounts of money, even if you win. Having to pay out on such a lawsuit can easily bankrupt even the most well off professional.

Professional liability insurance provides you with the means to defend your good name in court against accusations as well as to pay out on settlements when you are found to be negligent. Without it, you could find yourself not only out a lot of money, but your reputation could be on the line because you are unable to fight an unfounded lawsuit. Don't take chances; protect everything you have worked so hard for with the right professional liability policy for your industry. Your insurance agent can help you to ensure you have the coverage you need to have complete peace of mind.

INDEPENDENCE DAY, JULY 4TH, 2013

INDEPENDENCE DAY, JULY 4TH, 2013

It's the middle of summer, and that makes this holiday the perfect time for a long, relaxing day of fun and frolic, topped off by a night of fireworks to commemorate the rocket's red glare back when our forefathers were fighting for their independence.

In the spirit of the day, I did a little checking about the history of Independence Day. Guess what? They didn't tell us the whole story in grade school! In case you're interested, read on to find out what I discovered:

The original resolution (to cut the apron strings from Mother Britain) was introduced to the Continental Congress on June 17, 1776.

Then Thomas Jefferson and a willing committee put their heads together to polish up a formal writing for the grand announcement.

The actual resolution was approved on July 2 but the Declaration of Independence (a separate document) was adopted on July 4, 1776.

It took days, weeks, and in one case, years before all the signatures on the Declaration were in place. Thomas McKean didn't get his signature on the page until 1781!

Exactly one year after the Declaration was approved, Philadelphia held a huge birthday party for the infant republic. But the first official (by legislative act) celebration was held in 1781 in Massachusetts.

OK, friends, class is over. Eat, drink, and be merry! Independence is worth celebrating!

 

 

 

It's that time of year again! Cheerleading Fundraising for Elizabeth! Thanks for your help & consideration!

We are starting a Home Delivery Cookie Dough Fundraiser and we need your help. I will be handing out the sales brochure soon.
Elizabeth will be selling DELICIOUS COOKIE DOUGH from: 07-01 to 07-20-2013!
With your help this will be our best fundraiser yet.
If you would like to place an order please email lauraliss4812@gmail.com and let me know how many tubs you would like. They are $16/each including shipping right to your door.
I need your name, address & phone#. I would also need payment PRIOR to submitting the orders. PayPal or Postal Mail would work just fine. We can iron out those details via email.
One we send all the orders in you will receive a GIFT CARD for the "dough" & you go online to pick out your flavors! It's shipped right to your door. That's easy right?
Thank you for your help.
Elizabeth, 7th Grade Sideline Cheer

It's about that time for all the Lilly's to start to bloom! Lovin' summer!

The Right Professional Liability Coverage For You

 

The world of professional liability coverage offers a wide variety of policies. For every profession there is a policy designed to protect you from the particular liability risks that are inherent in your area of expertise. When choosing your professional liability coverage, it is important to make certain it provides for the potential risks you face every time you offer advice, services, or assistance.

One of the best known types of professional liability coverage is medical malpractice insurance, designed specifically for the needs of medical professionals. Whether you are a pediatrician or a surgeon, every time you offer medical advice or perform a procedure you take the risk that an error on your part could leave you facing a lawsuit. Few doctors today deny the need for this coverage, and in many cases it is required when you work in a clinic, hospital, or other medical office.

Errors & Omissions coverage is a type of professional liability that is used by a wide variety of professionals including lawyers, brokers, PR Firms, insurance agents or REALTORS®, and many other types of consultants. It provides protection should you make an error in documentation, advice, or procedure that causes some sort of loss to a client. This coverage is right for anyone whose profession involves advising to people on their financial, legal, or similar decisions, and when preparation of legal documentation is involved.

Aside from these two common types of professional liability coverage, there are many others that can provide specific coverage suited to your profession. Contractors and others in the construction and related fields, accountants and financial advisors, even people working in certain areas of nonprofit organizations need to be protected with a professional liability policy. If you could potentially be sued for a mistake or omission that does not fall under the coverage in your general liability policy, you need to carry a professional liability policy to cover the gap.

The best way to determine what type of professional liability policy is right for you is to sit down with your insurance agent and discuss what is available and what is not covered by your current insurance policy. No matter how good you may be at what you do, it is an unfortunate fact that even an unfounded lawsuit can make it to court and damage you financially as well as hurt your reputation. Having the right coverage allows you to defend yourself and ensure a lawsuit won't leave you facing a financial disaster.

 

LET ME HELP YOU WITH YOUR PROFESSIONAL LIABILITY INSURANCE NEEDS.

How does the saying go? "Momma had a baby & his head popped off!"

 

Masen has discovered so any new things this year since the weather has warmed up. It is truly amazing what little sponges children are! Clouds, the sky, grass, bugs, trees... he points at everything asking what it is. God forbid it rains & we have to stay indoors. He just sits & points outside. Summer fun...I love it!

Property Coverage: Protecting The Nuts And Bolts Of Your Business

Whatever type of business you operate, you have important property that you rely on to get the job done. The physical property required by your business, from office equipment to manufacturing equipment, is vital to your operations and not easily replaceable. Think about how much it would cost you to replace everything your company uses each and every day to make your business run. Could you afford to start from scratch if everything were lost?

Covering Your Business Property

Property coverage is a vital part of your commercial insurance policy; it protects you against the loss of all of those items that represent a substantial investment in your business. It covers you for everything from the desk and chair you sit at to the computer equipment you need to keep up with business in the modern age.

Take a minute to do some mental calculations and figure out just how much you have spent gathering furniture and office equipment, as well as other equipment such as manufacturing systems that make it possible for you to stay in business. Chances are you didn't buy it all at once, and you might not be aware of just how much you have invested or what you stand to lose in case of a fire or other catastrophe. Without those things you could not continue to stay in business, and you would need to have a lot of cash on hand to replace them.

Building Coverage Isn't Always Property Coverage

If you lease or rent the space in which you do business, then someone else probably handles the coverage for the building itself. But their policy doesn't cover you at all; it exists to protect the owners of the property itself. The things that you keep inside your office, warehouse, or factory are not covered by this policy. You need to carry your own coverage to ensure that if something happens, your property would be replaced.

If you do own the building in which you do business, whether a commercial space or a business run out of your home, it is a dangerous assumption to think that your property is covered. Many commercial building coverage policies have minimal coverage for property, and a homeowner's policy doesn't cover business items. Don't assume you have coverage!

Protect your business from a potential disaster by getting property coverage to ensure that even after a fire or other catastrophic event, you will be able to replace everything and get back to business as soon as possible.

Do You Need A Commercial Auto Insurance Policy? Keeping Your Commercial Auto Policy Affordable...

If you run a business that requires the use of vehicles for company activities, you need a commercial auto insurance policy. Commercial insurance policies are designed to protect you against the wide variety of liability issues you face when you have employees on the road using your vehicles.

Without a commercial auto policy, if an accident were to occur, you and your company will be held accountable for property damage and injuries. Only a commercial policy can protect you and your business from financial disaster.

Whether your company has one car or a hundred delivery vans, there is a commercial policy that will suit your needs. You can obtain individual commercial policies for each vehicle used by the company, or choose a fleet policy if you have more than a few cars.

You have other insurance policies in place to protect your company from liability, fire, theft, and other potentially ruinous events. Commercial auto is the policy that will protect your company when you or your employees are on the road.

 

Insurance is one of the big expenses of running a business. Between coverage for your premises and products, liability and worker's comp, and the other coverage you might need specific to your company, it can add up fast. Commercial auto can be a big expense for a company with a large fleet of vehicles and drivers.

Fortunately, there are some steps you can take to keep your commercial auto policy affordable. First, take a look at what insurance companies consider when determining the rates. Much as with a personal auto policy, a commercial policy is rated based on several factors such as the type of vehicle being insured, the type and amount of use that vehicle gets, and the location where the vehicle is garaged. In addition to these factors is the driving record of the person who is being insured to drive the vehicle.

Consider what happens when you add a teenage driver to a personal auto policy: the rates go up because there is now a high risk driver using that car. When it comes to your commercial auto policy, you can keep rates under control by ensuring that your employees have good driving records-and keep them that way. Careful hiring practices for drivers in your company can avoid surprises on your insurance bill!

When you select vehicles as company cars, take into account things like the value of the vehicle, safety features, and the likelihood of theft. Cars with a high safety rating and low theft statistics will save you big on premiums. Choose vehicles that serve your needs without going overboard; luxury cars are a nice perk, but not a great choice for insurance costs.

Think about where you garage the vehicles. A safer area with a low crime rate can reduce your rates. You should also be sure to keep the vehicles secured with features like a fence or a garage if possible. The more effort you take to ensure the safety of the vehicles in your fleet, the lower your insurance rates will be. Your insurance company will be taking on a lower risk, and thus charge you less.

If your commercial auto rates are too high, it might be time to shop around for a new policy. Just as with your personal auto policy, you need to compare rates to find the best deal for your company. Smart choices combined with smart policy shopping can mean much better rates.

Insurance News - Commercial P/C Pricing Continued Upward Trend In 1Q

Insurance News - Commercial P/C Pricing Continued Upward Trend In 1Q
WASHINGTON
, April 18 -- The Council of Insurance Agents & Brokers issued the following news release: Commercial lines pricing took another bounce upwards in the first quarter of 2013, according to The Council of Insurance Agents & Brokers' quarterly Commercial P/C Market Index Survey. On average, pricing rose at a rate of 5.2 percent compared with 5 percent in the fourth quarter of 2012. "The first quarter was a tough market for underwriting and for commercial clients who were hit with higher prices," said The Council's President/CEO Ken A. Crerar. "Carriers backed off risky business, tightened underwriting and pressed for higher pricing and deductibles on renewals. The upshot is more business is moving into the alternative markets." One broker called it a "Jekyll and Hyde" market with carriers seeking rate increases on renewals while good, new business is still aggressive. Average First Quarter 2013 Commercial Rate Increases Continue The survey revealed a number of trouble spots. Workers' Compensation continued to be a hard line to place. Brokers across the country reported large price increases and in some areas capacity shrunk. A Midwest broker said some carriers had no appetite for the workers' compensation business at all. Another broker said workers' compensation was driving a lot of the underwriting decisions forcing business into mono-line or alternative markets. The survey also reflected an on-going "Superstorm Sandy" effect with tighter underwriting on property risks with CAT exposure on the eastern coast. A broker in the region reported that "Insurers pushed for higher deductibles for named windstorm and flood in the Northeast, especially for insureds with claims from Superstorm Sandy." Another noted that flood deductibles increased and carriers were lowering limits or excluding flood coverage. Meanwhile, the Midwest struggled with wind/hail deductibles, which were up one percent to two percent, according to a broker there. The Southeast also experienced higher deductibles, exclusions for wind/hail and tighter underwriting on commercial property in general. A few brokers reported a capacity problem with employment practices liability coverage. Reflecting what brokers experienced from coast to coast, a broker in the Southwest said "EPLI rates [were] up dramatically over the last six months, coverage is being restricted and retentions are increasing." There was good news. Fifty-two percent of those responding said demand for insurance was up. As for what kept them awake at night - the majority answered finding new talent and the federal deficit.

Top 10 Questions to Ask when Shopping for Home Insurance

Top 10 Questions to Ask when Shopping for Home Insurance

Top Ten Questions To Ask When Shopping For Home Insurance

What are the most important home insurance concepts you should understand before purchasing a new home insurance policy? This article looks in-depth at the top ten questions you should get answered before buying or switching a home insurance policy. With answers to the top ten home insurance questions, you will be able to pick a home insurance provider that will provide you with the best coverage, strong financial stability, excellent customer service, and a very reasonable price.

What I Should Know Before Buying Home Insurance

If you are like millions of Americans out there, then to you insurance is a big black box. When it comes to home insurance, what are you covered for and what should you really be concerned about? To help you make the right decisions about home insurance, I've compiled a list of the top ten most important questions to get answered before you buy a home insurance policy. If you can get the answer to each of these 10 questions (and understand that answer), then you have armed yourself with all the knowledge you need to pick a home policy, or upgrade the one you currently have. So what are you waiting for? Read on!

1. Is my home insured at actual cash value or replacement cost? A word to the wise; get a replacement cost policy. The main difference between actual cash value and replacement cost is that a replacement cost policy will make you whole after a claim with nothing more than your deductible out of pocket. Actual cash value factors depreciation into the amount you receive for a claim. What does this mean to you? Well, in addition to your deductible, you could be forking out hundreds to thousands of dollars to repair your home to the state it was in before the damage. A replacement cost policy doesn't factor depreciation into the equation, and thus will repair your home in its entirety regardless of age with only your deductible as your payout.
2. Is my personal property insured at actual cash value or replacement cost? I have a close friend who got robbed in college. He had an actual cash value renter's policy. After his home insurance company factored in deprecation for his 52 inch TV, all his clothes, his laptop computer, and his leather couch, he received a check for ,000. Moral of the story? Pay the extra few bucks a year to make sure you will get full value on your stuff if something happens.
3. What type of home policy is this? As you may already be aware, not all home insurance policies are created equal. In fact, there are five different tiers of home insurance policy you can buy. From the most basic coverage to the most extensive, the policy types are HO1, HO8, HO2, HO3, and HO5. My recommendation would be to stay away from the HO1 and HO8 policies, because you might be sorry later. A good solid policy is the HO3. It will protect your home from everything with a few minor exclusions, and will protect your personal property from the most common causes of loss.
4. What endorsements, if any, are on the policy? Endorsements are add-ons that make your policy more bullet-proof. Examples of endorsements that can be added are residential glass coverage, water backup coverage, or additional coverage for electronics such as computers and LCD TVs. If you have any special add-ons, or want coverage that you're not sure is included, ask your agent or forever hold your peace.
5. What is the company's AM Best rating? In an ever changing economy, I'm assuming you'd like to know that your current home insurance company is not going to be the next AIG. AM Best is an organization that rates insurance companies' financial stability. Although financial strength doesn't always tell the whole story, it's a good indicator of what claims and customer service might also be like.
6. How can I be sure the home insurance company will provide great claims and customer service? This is probably the toughest question to answer, because there is no sure fire way of knowing exactly how a company will respond when you file a claim. The Better Business Bureau publishes complaint information on most reputable insurance companies, and this is what I would check first. Also, most state websites publish a customer complaint index on all insurance companies registered in the state. Search for your home insurance company to find out how they stack up against the competition.
7. Have all discounts been applied that pertain to me? Lets face it. You are not a professional insurance agent, nor do you want to be. You don't have time to research whether or not every possible discount that could possibly be added has been put on your home policy. By asking your agent this simple question, it might cause her to rack her brain and find another discount you might qualify for. It's worth a try anyway.
8. What is my deductible? The higher the deductible, the lower your premium, yet the more you have to pay if you file a claim. Are you more comfortable with a high deductible and low insurance payments, or the other way around? Decide what your comfort zone is, then get quotes based on what you prefer.
9. Is there anything that could cause my home policy to cancel when they come to inspect the property? You want to make sure to ask this question in the beginning to avoid headache down the road. There are many things that could cause a policy to cancel shortly after it's written. Depending on the company and its underwriting guidelines, "cancelable offenses" could be vicious dogs, farm animals, unrepaired damage, missing roof shingles, trampolines, diving boards on pools, and much more.
10. As my agent/insurance company, what hours are you available in case I need to contact you? Why do you have home insurance? Ok ok, because the mortgage company requires it. But home insurance is also there to protect you and make you whole if something happens. You need to make sure that your agent and/or insurance company is reliable and will be reachable by phone or in person when disaster strikes

DP1 Landlord Insurance Policy

DP1 Landlord Insurance Policy

The DP1 insurance policy is the most basic insurance policy available for rental properties in the United States. This policy is often referred to as Dwelling Fire Form 1, or DP-1 insurance. It provides very basic insurance coverage for rental properties.

DP1 Policy is Very Basic

In the United States, most landlords have three standard policy types available to insure their rental properties. The DP1 is the first, followed by the DP2 and the DP3. The DP1 policy offers the most basic coverage of all the rental property policies. It contains no bells and no whistles. The most common reason for a landlord to purchase this type of insurance would be to reduce the costs of insurance.

DP1 Insurance is Named Risk Insurance

The DP1 insurance policy is a named perils insurance policy. This means that all the perils that are insured are specifically listed (or named) in the policy itself. The insurance coverage is restricted to the perils that show up in the policy. The DP2 insurance policy is also named risk, although its list of perils is much more extensive than the DP1's list. The HO1 and HO2 insurance policies are the home insurance counterparts to the DP1 and DP2, and are also named peril policies.
Policies that are more extensive in coverage are actually referred to as open perils policies. The DP3 insurance policy is open perils, as are its home insurance counterparts the HO3 and HO5. Open perils policies insure against all perils, with the exception of a few exclusions specifically listed in the policy.

Common DP1 Named Perils

As referenced above, the DP1 policy only covers the perils listed in the policy. The following perils are the most common perils that are insured against with DP1 insurance:

• Fire & Lightning
• Internal Explosion & External Explosion
• Windstorm & Hail
• Riot & Civil Commotion
• Smoke
• Aircraft
• Vehicles
• Volcanic Explosion
• Vandalism & Malicious Mischief

It is important to point out that not all DP1 insurance policies cover all of the perils listed above. For example, Vandalism & Malicious Mischief is an endorsement (add-on) with many DP1 insurance policies, and is not always automatically included. The above list is what the most common DP1 insurance policy will cover. Check with an agent before assuming all the above perils are covered.

DP1 Insurance is Actual Cash Value Insurance

Most DP1 insurance policies are Actual Cash Value (ACV) insurance policies. This is an important distinction that needs to be understood. An Actual Cash Value dwelling insurance policy is much like a car insurance policy; the older the dwelling gets, the less it is worth. If you are a landlord and your rental property is insured with Actual Cash Value, depreciation will be deducted from any damages you are awarded after a claim.
Let's say for example that a hailstorm rips the roof off of your rental property, and you need it replaced. If the roof is 15 years old, the materials originally used on the roof are very old, and aren't worth very much. If it cost you $10,000 to replace the roof 15 years ago, the insurance company may only give you $5,000 to replace the roof now, because the materials have depreciated by 50% (in this example).
The alternative to ACV insurance is Replacement Cost insurance, which will not deduct depreciation from the amount you can receive for a claim. Unfortunately, most DP1 policies will not allow you to insure your rental with replacement cost insurance.

DP1 Insurance & Price

The DP1 is typically the lowest cost landlord insurance policy on the market. If a landlord is looking for the cheapest policy she can find, it will typically be the DP1 policy. Every landlord should, however, do a cost-benefit analysis of each type of dwelling insurance policy to decide which policy is the best policy for their rental. Price, perils covered, and type of insurance (ACV vs. Replacement) should all factor into the insurance purchase decision.

Insurance News from Laura Liss- 2013 Commercial Rates Up 5%

Insurance News - March 2013 Commercial Rates Up 5%

Large Accounts Hit With Rate Increases

Based upon the composite results of commercial business placed across the United States in March 2013, placing accounts that command large premiums no longer assures the buyer of a more aggressive pricing strategy.

Richard Kerr, CEO of MarketScout confirmed the results noting, “Historically, underwriters have been very aggressive in pricing name brand or large accounts. Other than the cache or bragging rights, there are few sound underwriting reasons for aggressively pricing large accounts. Risk is risk and exposure is exposure. In March, underwriters more frequently assessed an appropriate premium for large accounts.”

Workers’ compensation, professional and small commercial all received more aggressive month-over-month price increases.

Manufacturing continues to post the largest rate increases as compared to prior year results followed by contracting, service, habitational, and transportation.

A summary of the March 2013 rates by coverage, industry class and account size is set forth below.

By Industry Class
Manufacturing	Up 7%
Contracting	Up 5%
Service	Up 5%
Habitational	Up 5%
Public Entity	Up 4%
Transportation	Up 5%
Energy	Up 4%
By Account Size
Small Accounts	Up 5%
Up to $25,000
Medium Accounts	Up 6%
$25,001 – $250,000
Large Accounts	Up 5%
$250,001 – $1 million
Jumbo Accounts	Up 5%
Over $1 million

Replacing Mommy Would Cost 'A Small Fortune'

Insurance News - Replacing Mommy Would Cost 'A Small Fortune'
As many as 43 percent of adult women have no life insurance, according to the Insurance Information Institute, citing a nationwide poll by wholesaleinsurance.net, an industry news and information resource. Among those women covered by life insurance many are severely underinsured, carrying only one-fourth of the amount that would likely be needed by their policies’ beneficiaries, the industry group said in a release. “Ironically, 100 years ago women weren’t even able to buy life insurance,” said Loretta Worters, vice president with the Insurance Information Institute, in a statement. “Today, women can protect their finances, but they aren’t buying the coverage or, if they are, it isn’t enough.” In the United States, women have made big economic strides over the past 30 years. Many now are more educated and often better paid than their spouses. Yet their life insurance coverage hasn’t kept up, the latest poll numbers indicate. Women who serve as the family’s primary breadwinner carry 31 percent less life insurance than their male counterparts, the survey also found. This despite the fact that in 2007, more than a quarter of wives were earning more than their husbands in dual-income households, and despite the fact that women as a group live longer than men. Replacing mommy would cost “a small fortune,” Worters said, particularly if she were underinsured by an inadequate life policy or lacked coverage altogether. “What would happen to the family if the mom weren’t around?” Worters asked. “Who would manage the day-to-day housekeeping, the laundry, driving kids to and from their sports activities?” Life policies have a variety of uses. They serve to replace income for children and other adults who are dependent on a breadwinner. The policies can also pay for the cost of funerals, burial, probate and estate administration. They can be used as an inheritance and increase charitable contribution limits due to their tax advantages. Life policies can also be used as tax-advantaged savings vehicles that build up cash value.

Insurance News - Mom's Finances Are Stretched Thin

Insurance News - Mom's Finances Are Stretched Thin

SPRINGFIELD, Mass.
, April 1, 2013 /PRNewswire/ --Moms feel they are doing it all: raising children, performing household chores and managing finances – and nearly eight in ten of these moms are juggling a job as well according to the 2010 U.S. Census. The reality is, doing it all perfectly may not be possible. Only 24 percent of moms surveyed are satisfied with their current financial situation and one quarter of moms admit they are struggling to make ends meet or are worried about their financial future. However, only one third of moms (32 percent) currently use the services of a financial professional to help them with their investments and/or insurance needs. Those are among the key findings from the nationwide State of the American Mom Study released today by Massachusetts Mutual Life Insurance Company (MassMutual). "It's no secret in today's world that moms are stretched thin, but their finances shouldn't have to suffer as a result," says Tara Reynolds, Corporate Vice President of Consumer and Product Marketing in MassMutual's Life Company Marketing division. "Luckily, finding an experienced financial professional for your finances can be easier than finding help for childcare or other things that cause stress for today's moms – and can make all the difference when it comes to achieving financial security for themselves and their families." When it comes to insurance, the data shows that moms may be putting their families in an especially vulnerable position. Forty-six percent of moms surveyed do not own disability income insurance and an even larger number (68 percent) do not own long-term care insurance – both key to help ensure financial stability for the long term.

Life just isn't fair sometimes- Your world is what you make it...