Insurance for Dummies

Are you intimidated by insurance?

Have no fear — this easy-to-understand guide explains everything you need to know, from getting the most coverage at the best price to dealing with adjusters, filing claims, and more.

Whether you're looking for personal or business insurance, you'll see how to avoid common pitfalls, lower your costs, and get what you deserve at claim time.

• Get to know the basics — understand how to make good insurance decisions and reduce the chances of a financial loss in your life

• Take your insurance on the road — manage your personal automobile risks, handle special situations, insure recreational vehicles, and deal with insurance adjusters

• Understand homeowner's and renter's insurance — know what is and isn't covered by typical policies, common exclusions and pitfalls, and how to cover yourself against personal lawsuits

• Buy the right umbrella policy — discover the advantages, and coordinate your policies to cover the gaps

• Manage life, health, and disability risks — explore individual and group policies, understand Medicare basics, and evaluate long-term disability and long-term-care insurance

A great read for anyone buy insurance and can be purchased on Amazon! 

We here at GoVaughn.com Insurance highly recommend this book.  The book was written by Jack Hungelmann a Auto-Owners Insurance Company agent in Minnesota.

Think you are paying too much for auto insurance?  Get a comparative rate quote live from us now!

What is your biggest insurance question?

What is considered “Vacant Land”?

This question comes up occasionally.  The importance of the answer is that ISO Homeowners’ policy forms include vacant land for liability automatically.  So if you have a piece of ground, it may automatically have liability coverage without any extra expense and without you having to do anything.  If the land is not considered vacant, then you will have to add the property location to your policy or take out a second policy to obtain coverage.

Few plots of ground would be considered vacant per the ISO definition, which is “any land on which there exist no man made structures”.  Basically the land has to be as God made it.  There can be no roads, fences, poles, structures, etc. 

If you have vacant land and you think you have coverage, you need to discuss it with your agent to determine if you do.

Is this land vacant?  From this vantage point, I would say yes.  It appears to be as God intended with no manmade features.

 

 

Is this land vacant?  This is the same property as above, but from a different angle.  Look close and in the middle of the picture, you can see a telephone box & there is one fence post, which I assume is to protect the telephone box.  Now this land is not “vacant” and would have to be listed as a location to be covered by your homeowners’ policy.

Court cases have upheld the insurance companies definition of “vacant land”.

Travelers Indemnity Co. v. Holman, 330 F.2d 142, 5th Cir. Tex. (1964), vacant land requires that the property be unoccupied, unused and “in its natural state.”

In De Lisa v. Amica Mutual Ins. Co., 59 A.D.2d 380, 399 N.Y.S.2d 909 (1977), a child was injured in an abandoned structure on land owned by the insured. The court ruled that vacant land meant that there was no structure or building on the land, so there was no coverage.

In O’ Connor v. Safeco Ins. Co., 352 So. 2d 1244, Fla. Dist. Ct. App. 1st Dist. (1977), property was determined not to be vacant because a surfaced road went through it.

Court case information was obtained from www.iiaba.net.

Do you have vacant land?

Community Service

Our agent, James Roll, serves as the secretary of Jerusalem Lodge No. 9.  He is seen below presenting Henderson Community College Nursing Program student, Jessica Brown, with the second installment of $500 to complete her $1000 Scholarship awarded to her by Jerusalem Masonic Lodge No. 9 for her first year in the nursing program.

Jerusalem Lodge No. 9 is fortunate to have had members leave some money to the lodge upon their passing and their expressed wish was that the money be put into an interest bearing account with the interest used to provide scholarships to our local community college nursing program. 

Over the years they have been able to help several students financially achieve their dreams of obtaining their nursing degree.  With sound leadership and watch care over the fund, they hope to be able to assist many more in the years to come.

Preventing Frozen Pipes

Each year, as winter approaches and cold weather sets in, there is a chance that your home or commercial building could sustain some damage that is associated with the cold temperatures.

One of the most frequent causes of damage in the winter is due to water, which can become a major concern as the thermometer dips below freezing. Low temperatures can cause your water pipes to freeze, and in some cases, burst.

The following precautions can help you safeguard your home or commercial building from frozen pipes.

*Wrap water pipes that are exposed to freezing temperatures and cold drafts and those located in unheated or non-insulated areas, with pipe insulation. Pipe insulation can be found in local hardware stores.

*During cold temperatures, leave open cabinet doors where water pipes and drains are present, which will allow the warmer air to circulate around the pipes.

*During extremely cold weather, turn faucets to a slow drip or trickle, which will reduce the chances of the pipe freezing.

*Consider installing an automatic detection system that can monitor the temperature of a specific pipe. If the temperature of the pipe drops below a pre-set temperature, the unit will automatically shut off the main water valve. This will not prevent the pipe from freezing, but it will protect the pipes from bursting.

*To determine the best system to install for your home or commercial  building needs, contact a qualified plumber.

*If your home or commercial building will be unoccupied for an extended period during cold weather, set the thermostat at 50 degrees or above.

*If possible, have someone check your home or commercial building daily to ensure the heating system is working.

*Insulate outside walls and unheated areas of your home or commercial building.

*Heat the basement, and consider weather-sealing windows.

*Close all windows near water pipes, and cover or close open-air vents. (Freezing temperatures combined with wind drafts can cause pipes to freeze more frequently.)

*Disconnect all garden hoses, and install covers on all outside faucets.

If a Pipe Freezes

Contact a licensed plumbing contractor as soon as possible. A designated licensed plumbing contractor should be listed in your emergency contact information.

If a Pipe Bursts

*Shut off the water at the your home or commercial building's main water valve.

*Contact a licensed plumbing contractor as soon as possible. A designated licensed plumbing contractor should be listed in your emergency contact information.

Because you never know how cold temperatures can affect a home or office building, it's important to follow these recommended tips to prevent water damage from occurring due to frozen pipes. 

We stand ready to assist in any claim situation.  We offer 24/7 service online and by phone.  Our phone is answered 24/7 by a licensed agent for claim related information (270.827.3505) or through direct report to our partner companies.

We strive to meet your needs and provide friendly client services via phone, internet, email, and scheduled appointments any time!   We now have live chat available- this is a great way to communicate with us.  Give it a try now!

Insurance the one product you can't buy after the fact of needing it!

Vaughn Insurance is a Trusted Choice Agency.

Winter Tips to Prevent Claims

Snow or ice is the fifth leading cause of homeowners’ insurance claims. Also, according to the Insurance Information Institute (III), the average homeowners’ claim for water damage and freezing is a whopping $5,531!

Follow these tips to protect you and your home from serious financial liability:

Prevent ice dams - An ice dam is a build-up of ice that blocks water drainage from the roof and the gutters. Ice dams can cause leaks from ceilings and walls that can ultimately lead to mold and other problems. To prevent ice dams, remove leaves, sticks and other debris from gutters or install gutter guards (available in most hardware home stores) that will prevent debris from getting in the gutter and interfering with drainage.

“Watch out for that tree!” - Trees and branches weakened by snow, ice and wind can snap and seriously hurt a person on your property, as well as cause serious damage to your home or car. Trimming trees and removing dead branches can help prevent serious damage and injuries.

Roof care and repair - High winds, snow and ice can damage a roof. Check the structural ability of the roof to sustain unusually heavy weight from the accumulation of snow and ice. After a heavy storm, check for water stains in attics and on any overhangs. Lastly, repair or replace split or loose shingles and fix any leaks.

Pipe dreams…and nightmares - First, the bad news: Frozen or broken water pipes disrupt hundreds of thousands of American lives every winter. The good news: You can prevent frozen pipes by following these tips.

• Keep the inside temperature of your home at 65 degrees or warmer.

• Wrap heating tape and/or standard insulation around pipes wherever possible.

• Look for pipes with cracks or leaks —they freeze first.

• Keep the inside temperature of your home at 65 degrees or warmer.

• Keep cabinet doors open during cold spells to allow warm air to circulate around pipes (particularly in the kitchen and bathroom).

• If you’re leaving your home for several days, turn off the water completely and drain the pipes, or keep water dripping through one or two faucets, as moving water prevents freezing. However, if you are leaving your home for an extended period of time, plan to turn the water off. It also helps to have someone check your home every day while you are gone.

• If your pipes do freeze, quickly shut off the water and immediately call a plumber.

Prevent personal injuries - Homeowners are liable for any injuries that occur on their property. Keep kitty litter, sand or rock salt on hand to sprinkle over frozen driveways, walkways or sidewalks. Additionally, ensure that your outdoor steps and guardrails are in good repair to prevent injuries from falls on ice.

Can you think of other tips that help us prevent claims related to winter weather?

Gift Suggestions that can help you be prepared!

It always seems to happen. During every holiday season we'll hear a news report about a Christmas tree or Menorah starting a serious house fire.

Each year, millions of lives are disrupted by natural disasters ranging from earthquakes and tsunamis to floods and wildfire.  But all disasters – large or small – share a common attribute: they focus attention on the importance of disaster preparedness and the critical need to take action BEFORE disaster strikes.

The trick is to convert good intentions into good deeds, and according to Acting FEMA Regional Administrator Dennis Hunsinger, there's no time like the holidays.

"Disaster-ready gifts save lives, and are a wonderful way of welcoming in 2010," said Hunsinger. "Helping to better prepare neighbors, friends and loved ones for emergencies is a great way to say 'I care'."

Emergency and preparedness items that might make great gifts include:

• NOAA Weather radios and extra batteries.
• Enrollment in a CPR or first-aid class.
• Smoke detectors.
• Appropriate fire extinguishers (kitchen, garage, car).
• Disaster kits for homes, offices and autos (first aid kits, food, water and prescription medications for 72 hours, extra blankets, flashlights).
• Foldable ladders for second-story escape in a fire.
• Car kits (emergency flares, shovels, ice scrapers, flashlights).
• The gift of a Gardner to cut back combustible vegetation from wildfire-vulnerable homes.
• National Flood Insurance.

A wealth of information and preparedness tips are available from the Department of Homeland Security at www.ready.gov or from FEMA at www.fema.gov.

Some might consider these gifts “the worst Christmas Gifts ever” but upon facing disaster they might save a life.  

Thank you Big I Markets for providing this information for us to share with our policyholders.

What is the worst Christmas Gift you have ever received?

Driving in the Rain with Cruise Control use Caution

Note we did verify this story from Snopes.com.

A 36 year-old female had an accident and totaled her car.  A resident of Kilgore, Texas.  It was raining, though not excessively, when her car suddenly began to hydro-plane and literally flew through the air.  She was not seriously injured but very stunned at the sudden occurrence!

When she explained to the highway patrolman what had happened he told her something that every driver should know - NEVER DRIVE IN THE RAIN WITH YOUR CRUISE CONTROL ON ..  She thought she was being cautious by setting the cruise control and maintaining a safe consistent speed in the rain.

But the highway patrolman told her that if the cruise control is on when your car begins to hydro-plane and your tires lose contact with the pavement, your car will accelerate to a higher rate of speed making you take off like an airplane.  She told the patrolman that was exactly what had occurred.  

The patrolman said this warning should be listed, on the driver's seat sun-visor – never use the cruise control when the pavement is wet or icy,  along with the airbag warning.  We tell our teenagers to set the cruise control and drive a safe speed - but we don't tell them to use the cruise control only when the pavement is dry.

The only person the accident victim found, who knew this (besides the patrolman), was a man who had had a similar accident, totaled his car and sustained severe injuries.

NOTE: Some vehicles (like the Toyota Sienna Limited XLE) will not allow you to set the cruise control when the windshield wipers are on.

Did you know about this?