Academy Insurance Agency

What is PIP and how can I save.......?

10/3/2020

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I asked the same thing when I moved to Florida as I came from a state that did not have PIP coverage, so even though I was in the industry, I didn't know how this coverage applied.

PIP stands for Personal Injury Protection and is offered in states that are "no fault" states. The saying "no Fault" means no one is at fault for the first $10k in medical bills. Lets say we are both driving and you hit me and I'm injured - I would submit a claim to my policy to cover the first $10k in my medical bills - any overage I would then claim to your policy under your bodily injury coverage. We all carry it and it is a mandatory coverage on your auto policy.

PIP has different levels of protection from basic which covers 80% of medically necessary expenses, 60% of lost wages, 100% of replacement services & $5,000 for death benefits, to an increased limit of 100% of medically necessary expenses and 80% of lost wages.

You can also reduce or remove coverage to reduce the cost.

The ways to reduce your costs are to add a deductible, have the coverage apply to not only you but any resident relatives in the household, or you can have the work loss coverage excluded.

The one thing I see most often is a student, or stay at home mom/dad, or someone that's retired yet they are paying for PIP coverage to cover their lost wages - what lost wages they don't work??? Did this agent even ask? Yes, they had to ask their occupation as that is asked on all auto policies ( another rating variable) so how did this agent miss that they are retired yet chose the PIP benefit that covers them for lost wages ? This is a discount...yes you get a discount for choosing PIP with loss wages excluded!

Now I clearly don't recommend this if you are working as this is a needed benefit if you are injured from an auto accident and can't work but..... if you don't work then its a pointless coverage that you are paying extra for.

Don't get me wrong you won't be able to take a vacation on this savings or pay off your car but it may get you a Starbucks and who doesn't love a free Starbucks...

The bottom line is there's a lot of ways to tailor your policy, all policies, to cover you and your needs yet many of these coverage's are either not understood by the general public or not in the bold print. This is why a good agent that isn't concerned with their overall commission but rather your overall cost is an absolute must!! My motto is why pay for coverage you'll never use no matter how small (or some times large) that savings may be.

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Actual Cash Value (ACV) versus Replacement Cost (RC)

7/22/2020

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When shopping for insurance, homeowners can usually choose between Actual Cash Value (ACV) and Replacement Cost (RC) on your contents coverage, which covers your personal property in the home (furniture, kitchen items, clothing).

On a dwelling policy, which is designed for rental/investment properties or vacant/rehab homes, depending on the policy type, DP1 or DP3, will depend on if you have replacement cost. Either policy type could come with ACV on the home/dwelling coverage and personal property.

As its name suggests, Replacement Cost covers the cost to replace your items with comparable, new items so an old TV is replaced with a new like size TV. ACV covers an item at a depreciated value so old TV replaced for old TV. ACV takes the cost of the item new then deducts for depreciation.

For example, if your five year old TV is destroyed in a fire, Replacement Cost would cover the cost to replace it brand new for a like size TV. ACV would reimburse for the value of the TV minus 5 years of depreciation so you might be able to buy a used TV at that payout. For most items, the older they are the lower their actual cash value payout will be.

Although Replacement Cost provides more comprehensive coverage, it also comes with a price as insuring for Replacement Cost costs more then insuring for ACV.

We typically do not recommend insuring at ACV however some older homes, or damaged homes, that may be the only option.

Make sure you know your policies coverage and if unsure contact your agent and work with your agent to determine what choice is best for you and your home.

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Why use an agent/broker ?

6/2/2020

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I think a lot of people wonder why use a broker, why not go straight to the company for a policy, isn't it more expensive to use a broker? The answer is no, the rates are the exact same whether you go through a broker or through a carrier direct. The benefits of going through a broker is you have someone on your side, that doesn't work for the company but rather represents you, the customer. You have an experienced agent who knows how to navigate the policy verbiage, knows the loopholes, someone who will be on your side come claim time, and who you know is looking out for you and your best interest not necessarily the carriers.

What if you had a claim, who would be on your side to fight it out with the carrier if they are trying to deny it? Do you want to then read through your policy to make sure what you bought is truly giving you the coverage you need, and not just giving you a premium to pay, with little to no benefits come claim time. If you only have the carrier to work with then who's on your side, who has your best interest at heart? An employee of the company is going to do whats best for the company first and foremost and not necessarily you. This isn't to say carriers don't look out for their clients, they do, but an agent knows how to speak their language and navigate the ever complex world of insurance - all on your behalf and best of all, at no additional cost to you.

You wouldn't walk into a courtroom without an attorney or buy a home without a realtor - you could but would you get the most favorable results? With those services you are paying for their knowledge and ability to navigate their field and fight for whats best for you - with an agent you get the same service without paying a penny more. What other industry offers that? You get a personal broker on your side, to handle any questions you may have, look at all of your exposures, and help if you have a claim.

As your agent/broker we at Academy Insurance Agency will not only help you navigate insurance and stand by you, and for you, come claim time but we will also re-shop your rates automatically every year to be sure your rate is the most competitive for you. We look at your policies as a whole for any loopholes where you are not covered, and we do all this while keeping your budget and needs in mind.

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Co-insurance explained

5/19/2020

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Have you heard of co-insurance? You should as its built into most policies you purchase and can have a huge impact on your claim payout. This is one of those hidden clauses to your insurance contract that's explained in the policy booklet possibly buried on page 9062 and one you may not understand even after reading. So what is co-insurance? Co-Insurance is basically what you should have carried divided by what you did carry to determine if your coverage is sufficient to pay out at the policy limit. If you carried less then your co-insurance percentage limit then for every percentage you are below that limit the carrier can knock that same percentage off your claim check - make sense? Probably not.. Basically if you under insure your home your insurance company imposes a “coinsurance penalty” once a claim is filed.

Here's how it works....

Let’s say you have a building that you believe would cost $100,000 to replace and you have a co-insurance clause of 80 percent. You insure the building for $80,000 thinking you have fulfilled the coinsurance clause (80% of $100k = $80k). A fire loss causes $60,000 worth of damage so you submit a claim. Your insurance company subsequently determines that the replacement cost (rebuild value) of the building is actually $150,000.

To determine how much to pay on the claim, the insurer divides the amount of insurance you purchased ($80,000) by the amount you should have purchased (80% of $150,000 or $120,000). The result is that you carried two thirds of what you should have carried therefore they will pay out two thirds of your claim. Two thirds of the $80,000 loss is $40,000 which is the amount of your claim the insurer will pay minus your deductible.

If the home would have been insured for at least $120,000, the insurer would have reimbursed you for the full amount of the loss. Coinsurance can be tricky and cost you a ton of money if you under-insure your property. We see many clients come to us severely under-insured and we find that most, had they been explained the repercussions, would rather insure their structure to value and look for other ways to save on premium besides lowering the building limit.

Why pay even a dollar for a policy that will barely pay out - when you walk away from your agent all you get is a piece of paper and a promise, make sure they can live up to that promise by working with an agent who will properly evaluate your risk and rebuild value.

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Dive In to Our Method

What is PIP and how can I save.......?

Actual Cash Value (ACV) versus Replacement Cost (RC)

Why use an agent/broker ?

Co-insurance explained

Your AIA Resource

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Call Us: (727) 343-0419

Map Us:
6798 CROSSWINDS DR N #c108
ST. PETERSBURG, FL 33710

Site Managed by IMC Brands LLC

Dive In to Our Method

What is PIP and how can I save.......?

Actual Cash Value (ACV) versus Replacement Cost (RC)

Why use an agent/broker ?

Co-insurance explained

Your AIA Resource

Archives

Categories

Services

Company

Support

Call Us: ​(727) 343-0419

Map Us: 6798 CROSSWINDS DR N #c108ST. PETERSBURG, FL 33710

Site Managed by IMC Brands LLC

Call Us: (727) 343-0419

Map Us:
6798 CROSSWINDS DR N #c108
ST. PETERSBURG, FL 33710