Robin Hill Insurance

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TM

Your Financial Guiding Light

10/22/2015


Tattered Flag Collection -- Now through Veteran's Day

















The United States flag is a national symbol representing everything that makes America great! Our Liberties, our Way of Life, our Rule of Law remain the envy of the world. 

This flag has been carried to the moon, flown all over the world, and worn on the shoulder of the American Veteran, protecting our liberties, way of life and rule of law.

This flag should be displayed and flown to produce a patriotic effect.

However, over time, flags get warn and tattered. Their days of waiving from sea to shining sea have ended. Old tattered flags need to be properly retired, with the same respect they enjoyed while preserving our nation's symbol.

From my earliest days in the military as a Cadet at the Air Force Academy, to my days flying over enemy territory in Desert Storm, and finally to my days flying in the Presidential Wing at Andrews Air Force Base, the flag has always been a symbol of what is great about our nation.

Please properly retire your tattered flags. Throwing a flag in the trash is not considered by many to be a proper way. Many organizations will allow you to bring your flag for proper retirement. The American Legion, Veterans of Foreign Wars and the Boy Scouts of America are three that come to mind.

Additionally, please consider dropping your tattered flags at our office. We collect them every year for proper retirement!

Thank you for this simple, but elegant gesture of respect for the international symbol of freedom!




8/13/2015

Should You have Renter's Insurance for your College Student?




As back to school time is upon us, one of the decisions that many make is whether to get Renter’s Insurance for your scholar while he or she lives at school, or to just use the Personal Property feature that already exists in your home owner’s policy.
 
As with most decisions in life, there are pros and cons to either direction you take. However, in my opinion, for most, it is better to get the renter’s insurance. Let me explain.


Today’s Home Owner (HO) policies usually have provisions that protect personal property of the occupants wherever they are, anywhere in the world. So if on vacation, summer camp, or at college, the personal property of someone who is a resident of the home has protection if that property is with them at a temporary location, like a hotel or a dorm room. Therefore, if there is a theft or fire, or other covered loss (like lightning) then the property lost can be filed against the HO insurance policy.

NOTE: If the student qualifies as an "insured person 

the homeowner policy extends to the child. 

(Generally, if the child is still dependent of the Insured

and is living away on a temporary basis,
they would be considered an Insured Person by definition.)


But, even though it can be extended to the student, the question is, should it be?


My general answer is no.


For a couple reasons:
    1. Most HO policies do not have claims filed. Insurance companies often give significant discounts for no claims. When you file a claim, no matter how large or small, the home will lose its “claim free” status and, if one is earned, the corresponding claims free discount.
    2. There is normally a deductible associated with the HO policy that will need to be paid.
    3. Again, no matter how small, any claim is counted as a claim. Insurance companies become very concerned with frequency of claims. For example, a HO policy might be around for 20+ years without a claim, but if there are 2 claims in 2 years (for example), this is a red flag, no matter how small those claims are, and no matter how long the policy has been in force.

If there is a Renter’s Policy, then the same deductible is paid, but the claim does not go against the HO policy and the HO policy does not lose the claims free discount.

Let me give you a real example that occurred in our office last school year.
    A student’s $1,200 lap top was stolen. The parents filed a claim against their HO policy (they elected not to have a renter’s policy). With the $500 deductible considered, the insurance company paid out $700. But by now, you know that the home lost its claims free discount, which was 25% of the total premium, and $200 a year. The discount is lost for five years. Simple math shows that $200 a year for five years is $1,000. Therefore, this claim actually “cost” the parents AND now they have a claim on their record. If/when there is another one, then that will be 2 claims in a short period of time – which will make any insurance company start to get antsy. 

    If there had been a renter’s policy, then a claim would have been made against that policy. The $500 deductible would have been considered, and the insurance company would have paid out $700. And that would be that. No concern about frequency, no loss of deductibles, no other major issues. 

Of course everybody has their own considerations, but for me, paying about $10-15/ month for renters insurance is worth not having my HO policy disturbed if there is a claim that needs to be filed.