Insurance policies may seem like they’re written in another language. Yet it’s important to understand the terms so you can get the most out of your coverage. Here’s a quick tutorial on deductibles and what they mean for your auto and home insurance.
What is a deductible?
Simply put, a deductible is the amount of money that you pay out-of-pocket before insurance kicks in. Generally, your insurer deducts the deductible amount from the payment that they make on your claim. You can find the deductible listed on the declarations page, which is the front page of your policy.
Example: If the cost of a repair is $1,500 and your deductible is $500, insurance will cover $1,000.
Unlike health insurance deductibles, you do not have to reach an annual amount in an auto or home policy before insurance will pay. Each time you file a claim, there is a deductible (if it applies). One exception is the state of Florida where hurricane deductibles are once per season.
High vs. Low Deductibles
You select your deductible from a range of choices provided by your insurer. If you choose a lower deductible, that means your insurer will need to cover more in the event of a claim, which will raise the cost of your policy. If you choose a higher deductible, you’re willing to cover more of the cost in a claim, and that will lower your premium.
Lower deductible = Higher insurance premium
Higher deductible = Lower insurance premium
It’s important to note that you will have to pay the deductible if a loss occurs in a car accident, even if you think the other driver is at fault.
You may think twice about filing a claim for a damage amount that is close to your deductible. For example, if your deductible is $1,000 and repairs are $1,250, it may not be worth it. You’d be responsible for the bulk of the repairs, and by filing a claim, your rates may go up when you renew. See our blog about when you need to file a claim and when you don’t.
There are different types of coverage available to you for your vehicle. Some may be mandated by your state or your lender, and others are optional. Not all coverages carry a deductible.
The following coverages include a deductible, and you may choose a different deductible amount for each one:
Collision: This coverage kicks in when you collide with another car or object.
Comprehensive: This coverage is for damage from other causes such as hitting a deer or having a tree fall on your car.
Uninsured motorist property damage (UMPD): This coverage is for property damage from accidents with another driver who is uninsured and at fault. UMPD may or may not have a deductible; it depends on the state and the type of loss. (Uninsured motorist coverage, which is different than UMPD, does not have a deductible.)
Personal injury protection (PIP): This coverage pays for medical expenses regardless of who is at fault.
Pro Tip: Being able to set a deductible for each type of coverage allows you to assess the likelihood of your needing that coverage. For example, if you live in the country and might be more likely to encounter a deer than another car, you can lower the deductible for comprehensive and raise the deductible for collision.
There is auto coverage that does not carry a deductible, and that’s liability coverage. With liability coverage:
If you are at fault: You hit another car and cause property damage and/or driver injuries. Your liability covers the damage to the other driver and his/her car without requiring a deductible. However, your own collision policy pays for damage to your car, which would come with a deductible.
If someone else is at fault: Another driver hits your car and/or injures you. Their insurance will pay for damages and medical expenses. There are no deductibles.
Your insurer can provide quotes for different levels of deductibles and work with you to determine the best coverage for your budget.
Homeowner’s Policies and Deductibles
Whether you’re buying a new home, or you’ve owned yours for years, your homeowner’s policy protects your investment. Costs vary by location, age of home, construction type, number of bathrooms, and many other factors.
With homeowner’s insurance, there are generally three choices for deductibles:
Flat deductibles: You would choose a fixed dollar amount, such as $1,000. That is the amount you would pay out-of-pocket before insurance kicks in.
Percentage deductibles: You would choose percentage of your Coverage A limit. If your policy covers your home at $300,000, and you choose a 2% deductible, you would be responsible for 2% of $300,000 or $6,000.
Peril-specific deductible option: You could have a flat deductible amount and then carry a different one specifically for wind/hail losses.
There are coverages under your home insurance that do not carry a deductible. These include Scheduled Personal Property (SPP) Coverage, Coverage E: Personal Liability, and Coverage F: Medical Payments to Others.
Scheduled personal property (SPP) Coverage is for items that have higher values above your personal property coverage limits. This includes heirlooms, watches, jewelry, instruments, furs, or anything about which you are especially concerned such as a special guitar. (Musical instruments for example do not have a contractual limit but you will want to schedule an instrument that is special to you.) SPP offers much broader coverage for your precious items – if you lose a set of earrings, they are covered; if a diamond falls out of a ring, or if a guitar falls off a shelf and gets stepped on, they’re covered. There is no deductible if the covered items are stolen, lost, or damaged. Insurance pays the lowest of the four options: repair, replace, actual cash value or the amount of insurance.
Personal Liability protects you if a claim is made or a suit brought against you for bodily injury or property damage caused by an occurrence to which coverage applies. These are expenses paid to third parties for their injuries and damages. Liability covers you at your place or anywhere in the world. If you are found liable, the policy will pay up to its limit of liability for damages for which an insured is legally liable. This can include medical expenses, lost wages, pain and suffering, and permanent scarring. The policy also provides a defense in court, if needed, for the policyholder. This is at the insurance company’s own expense.
Insurance may seem complicated, but it doesn’t have to be. Your agent can answer any questions you may have. Contact your insurer to find out more about protecting your most valuable possessions.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
It seems as if summer has flown by, and that means just one thing: school is almost here. How do you get everything done in the short time that you have left? Here’s an easy-to-follow checklist so you can divide and conquer with plenty of time to enjoy the last days of summer fun.
Classroom
Setting up the perfect environment for learning takes some thoughtful planning. Benefits of a well-arranged classroom include easier transitions and help with behavior management.
Before you move a piece of furniture, sketch a layout that incorporates the spaces you want in your classroom.
Plan for student seating, small group workspaces, learning centers, supply areas, class library, etc.
Make sure your teacher’s desk is positioned so you have a good view of the whole classroom. Stock it with your favorite supplies.
Ask a friend, family member or colleague to help you set up the room. (If you ask a fellow educator to help, make sure you reciprocate with his/her room.)
Familiarize yourself with the classroom technology and equipment. Put in any repair requests.
Put up classroom posters and bulletin boards. (Pro Tip: Leave bulletin boards blank with a sign saying, “under construction,” and plan to post student work there.)
Decorate your front door to welcome students.
Add student name plates to desks and cubbies if applicable.
Post the emergency evacuation procedure.
Set up fans for the first warmer weeks of school.
Organization
Set up the systems for classroom organization and you’ll appreciate the ease with which you can access items and key dates all year long.
Find a place in your classroom for all your materials from art supplies and math manipulatives to textbooks, whiteboards, etc. Try these inexpensive organization hacks.
Label your shelves and supply boxes to make it easier to find what you need.
Set up student files/portfolios and your grading system. Review class lists, IEPs, allergies, and any other pertinent student information.
Set up your planner/calendar with pertinent dates for the school year, and especially for the first marking period. Don’t forget to mark Back to School Night.
Make student name tags for the first day, if desired.
Have a plan for collecting and storing the school supplies that students will bring the first day.
Rules & Routines
Set the expectations right at the beginning, so that your students know the rules and routines. That will make class time more enjoyable and productive.
Make a list of classroom rules. Include consequences if rules are broken. (You can prepare this even if you will do a similar exercise with student-led, class-created rules because you already know your behavioral management)
Determine the rules for leaving the classroom, including bathroom breaks and visits to the water fountain.
Finalize your procedures, including morning routine, dismissal routine, homework policy and systems for students to turn in work. You will be teaching these during the first weeks of school.
Determine student responsibilities and how you will rotate classroom duties among students throughout the year.
Lesson Planning
Keep students on track with clear daily goals for student learning. Remember that effective planning also includes some built-in flexibility to respond to student needs.
Decide how you will structure each week based on specials, prep periods, etc.
Prepare lessons for the first two weeks. Include icebreaker activities and lots of practice with routines.
Plan a stress-free, no-skills-needed bellringer or morning work activity to use as needed.
Make copies for the first week so you won’t have to worry about them. You’ll also avoid the long lines at the copier.
Determine how, and whether, you will use music in your classroom.
Write emergency sub plans. You never know when you might use them.
Family-School Connection
Building the connection with students’ families will provide a support system that enables the learning to continue at home.
Prepare a student/family welcome letter or video. You may opt to mail the letter prior to the school year, hand it to students on the first day, or post it to your class page.
Set up your classroom web page. Include an overview of school hours, class schedule, brief highlights of curriculum, dress code or uniforms (if applicable), and your contact information.
List academic websites that students will use, such as leveled reading sites. Determine where you will post homework assignments and set up homework for the first week.
Ask for class parents and parent volunteers in your welcome letter or on your class web page.
Prepare a list of responsibilities for class parents. If you have a project in mind, like building a class library, you’ll be able to get them started.
Other
You’re not only in charge of a classroom of students, but you’re also responsible for yourself. Make sure you take the time you need so that you’re set up to do a great job.
Get your professional clothes out of the closet. Determine if you need to update or replace any.
Pick out your outfit for the first day of school.
Go food shopping for healthy snacks and lunch items.
Plan what you will pack for the lunch the first day and the first week.
Remember to practice self-care as you return to the classroom.
We know from experience that there’s always something more to do. Don’t feel as if you must do it all. Take a breath and know that you’ve got this. Have a great year!
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
If you haven’t thought about crossing guards, school buses, and kids walking to school for a while, it’s time to refresh your memory. You’ll want to review important safety tips as everyone heads back to class.
From school zones to buses, bikes, and more, this guide shares the basics about back-to-school traffic safety. Read on to find out what you need to know.
Learn where the school zones are.
A school zone is an area on the street near a school where students typically travel on foot or by bike, skateboard, etc. It is typically located one or two blocks around the school.
Look for signs and road markings that indicate a school zone.
Prepare to slow down. School zones have reduced speed limits during certain hours like drop-off and dismissal.
Watch for children, who may cross without looking. Remember that not all students use crosswalks, and not all crosswalks have crossing guards.
Put your phone away. Texting in a school zone carries a big fine.
Be aware of the time of day.
You may drive past the school every day, but you must be extra vigilant when school is in session.
Pay attention to when your local schools start and end the day. Know the times that students typically arrive and leave. Remember that schools sometimes have early dismissal.
During these times, be careful backing out of driveways and traveling through the neighborhood near schools, playgrounds, and parks.
You may even decide to take a different route to avoid the school at busy times.
Navigate school parking lots carefully.
Rushed, distracted parents and children who may not understand traffic rules create safety hazards in school parking lots. Learn and follow your school’s rules for dropping off, picking up and parking.
Go slowly past parked cars. Children can appear out of nowhere.
Don’t make U-turns and don’t pass a vehicle unloading passengers. These are unpredictable moves that other cars and pedestrians will not expect.
Don’t double park as you will block the view, and ability to move, for others.
Don’t honk your horn. You could startle those around you.
Avoid the emergency lanes or handicap spots unless you are authorized to use them.
Know the rules for sharing the road with school buses.
It’s likely you’ll be sharing the road with school buses. These larger vehicles have their own special rules. Check your state’s laws for specifics.
Keep a safe distance behind school buses.
Avoid cutting in front of school buses even if your car can fit. Never pass a stopped school bus in either direction.
Watch for yellow flashing lights that signal a bus is about to stop. By the time the bus flashes red lights, you should be stopped and that’s true for both directions.
Be aware of a bus driver’s blind spots. They are located around the front, sides, and back of the vehicle.
Know the rules for sharing the road with bicycles.
You will likely encounter kids on bicycles as you drive. Be aware that they may or may not understand the traffic rules.
Learn biking hand signals so you will know what a cyclist is communicating. Know that some cyclists will turn without signaling, too.
Watch for bicycles that unexpectedly come from driveways and between parked cars.
Allow plenty of room and slow down when you are passing a bicycle.
Check your mirrors and blind spots before turning. Stay out of bike lanes.
After you park your car, check your side mirrors before you open your door. That way, you hopefully won’t knock into a bicyclist with your door.
Other Safety Tips
You can be proactive to keep everyone safe during back-to-school traffic and year-round. Here are some additional tips.
Expect the unexpected. Children are unpredictable.
Teach your children how to share the road as a bicyclist and on their skateboards.
Consider carpooling to reduce the traffic in the school parking lot.
Give yourself extra time. When you’re not in a rush, it’s easier to make clear headed decisions.
Finally, keep your car insurance up to date for added peace of mind. After all, you’re carrying precious cargo.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Creepy, crawly, and flying insects are okay outdoors, but you don’t want them in your home. Yet sometimes they make their way inside.
We researched tried-and-true methods to remove bugs indoors. Follow this handy guide to get rid of what bugs you this summer.
Common bugs in your home
Crumbs of food and a reliable water source can attract ants to your house. When it’s too warm or wet outside, spiders may venture in, especially if there are other bugs in your home to eat. Flies, bees, and wasps love rotting fruit, and flies flock to garbage. Light, trash, and food also attract beetles. Weevils hitch a ride in your groceries, via eggs laid by adults in products like rice. Other common bugs include earwigs, firebrats, centipedes, silverfish, cockroaches, bedbugs, termites, and if you have pets: fleas and ticks.
Steps to take to combat bugs
While these buggy visitors may be common, they’re certainly not welcome. Here’s what you can do about it.
Step 1: Seal cracks and openings.
Bugs often crawl in through tiny cracks or holes in window screens and around windows and doors. Carefully check all these potential openings.
Close up holes by replacing screens, caulking openings, or applying weatherstripping.
Caulk is generally used for cracks near stationary items, while weatherstripping is for things that move such as doors and windows.
Don’t forget to check where electrical lines and pipes enter your house. Canned spray foam can help to seal these openings.
Bugs feast on your crumbs. They eat flour, cereal, baking mix, crackers, dried pasta, dried fruits, nuts, popcorn, and pet food. Ants especially like sweets.
Wipe down cutting boards and counters after food prep.
Keep food in sealed containers and/or in the fridge or freezer.
Put a lid on your garbage can and empty it regularly.
Clean the crumbs from your microwave, stove, toaster ovens, and other appliances.
Step 3: Beware of hitchhiking bugs.
Some bugs come in with items that you bring into the house, such as groceries, or even your pets.
Meal moths, weevils and beetles love the grains and cereals in your pantry. Store those items in glass, metal, or sturdy plastic containers with airtight lids.
If you notice bugs in your pantry in one container, check the ones next to it. Throw away any boxes with bugs. Remove all items from the pantry and clean the shelves with soap and water.
Pro Tip: Freeze any items for 3-4 days or heat them in a 140F degree oven for an hour or two to kill insects and eggs.
For those bugs getting a free ride on your fur babies, keep pets up to date on flea and tick Check them for fleas and ticks regularly.
Step 4: Clean and declutter.
Bugs look for shelter, and they will find it among your clutter. Vacuum and keep your home neat to help keep bugs at bay.
Avoid piles of newspapers and stacks of boxes where spiders and cockroaches love to live.
Even piles of dirty laundry can be home to bugs. That’s a good reason to put clothes away.
Make sure to declutter and donate items that you no longer use.
Store firewood outside and away from the house. Check any wood for bugs before you bring it inside.
Step 5: Dry areas that are damp.
Bugs also look for water. Some prefer damp places, such as drain flies that live in your kitchen sink and bathtub drains. If you can dry the areas that are damp, that will help eliminate bugs.
Fix leaky faucets, drains, and pipes as a first defense.
In areas where it’s typically damp, like a basement, use a dehumidifier.
Make sure washing machines and dishwashers are working correctly and not leaking.
Step 6: Use the scents that bugs hate.
Certain scents repel bugs. Fortunately, these same scents usually smell pretty good to humans.
Peppermint repels ants, mosquitos, and spiders. Put some essential oil on a cotton ball and adjust the strength as needed.
Tea tree and citronella oils also work well in keeping away a range of pests.
Spiders don’t like onions. Slice some and put them in a bowl of water.
Many brands of fabric softener sheets contain a compound, linalool, which has a scent hated by mosquitos and other flying insects.
Step 8: Place bug traps.
You can find bug-specific traps on the market, or you can make your own.
Sticky flypaper will trap flies and gnats. Be sure to hang it up and away from your pets.
Ant bait traps use various insecticides. Keep them out of reach of pets and toddlers. For a nontoxic ant remedy, sprinkle some cornmeal. Ants like to eat it but cannot digest it.
For fruit flies, put apple cider vinegar in a small bowl. Cover it with plastic wrap and punch holes in it. The fruit flies will be attracted to the vinegar and get trapped beneath the plastic.
Your home is one of your greatest investments. Perform regular home maintenance and insure your home for added peace of mind.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
You’re ready to upgrade your kitchen or build that deck. Remodeling is a great way to add value to your home. If you’re planning a renovation project, there’s something you’ll want to do first. Review your homeowner’s policy. That way you can make any changes to ensure you’ll be fully covered.
There are several ways insurance can factor into home renovations, but you’ll want to check the specifics. Then you’ll know what is covered and what is not:
If your home is damaged during remodeling
If someone gets hurt during remodeling
If your home is not up to code
If the remodel increases the value of your home/property
If your home is damaged during remodeling…
You may hire a contractor for your home renovation. Make sure they carry the right insurance. This includes workers’ compensation, property damage, and personal liability. Ask to see a copy of your contractor’s insurance policies. Look for a commercial business/general liability policy and for a workers’ comp policy. Take a photo of the documents for your records. If your contractor is not insured, he or she or their staff could sue you if injured.
If someone gets hurt during remodeling…
If you are doing a DIY remodel with the help of family or friends, you’re responsible for their safety. Make sure your liability coverage is enough. Consider increasing liability limits in case someone gets injured. Personal Liability protects you if a claim is made or a suit brought against you for bodily injury or property damage and you are found to be legally liable. Liability covers you at your place or anywhere in the world. If you are found liable, the policy will pay up to its limit of liability for damages for which an insured is legally liable. This can include medical expenses, lost wages, pain and suffering, and permanent scarring. The policy also provides a defense in court, if needed, for the policyholder. This is at the insurance company’s own expense.
If your home is not up to code…
Insurance only pays if there is a covered loss, not for renovating or remodeling. However, if you are rebuilding your house due to a covered loss, and you need to bring your home up to code, insurance can help. Add an endorsement for Ordinance or Law coverage to bring your home up to current building codes for repairs and/or rebuilding. Again, this endorsement only provides coverage if there is a covered loss and you are required to bring it up to code. The contract automatically includes 10% of your coverage A but the endorsement can be added to increase that percentage.
If the remodel increases the value of your home…
Your homeowner’s insurance is designed to repair and/or replace your home should it be damaged by a covered loss. When you renovate your home, your improvements have increased its value. Don’t make the mistake of thinking your original insurance will cover it. Make sure you are fully covered for the new value of your home if you must replace or rebuild it in the future.
Your insurer may require you to notify them within 30 days of completion of any improvements, alterations or additions to the building insured under Coverage A which will increase the replacement cost of your home by 5% or more.
Dwelling Coverage
Talk to the service department at your insurer about increasing your dwelling coverage. Dwelling refers to the structure of your home and includes the roof, walls, floorboards, cabinets, and bath fixtures. The easiest way to think about it is that if you could tip your house upside down, the dwelling is everything that remains attached.
Attractive Nuisance
Does your renovation include an attractive nuisance? Attractive nuisance is a term used to describe anything that might attract children and present a potential danger to them. Examples include trampolines, swimming pools, and playground equipment. If you added any of these during your renovation, be sure that you are (a) secured against access to them with a fence and locked gate and (b) covered for them under your policy.
Personal Property Coverage
You may need to increase coverage for personal possessions if you purchased items as part of the renovation or since your last policy update. Personal property coverage protects your possessions, such as furniture, clothes, sports equipment, and other personal items. Again, if you could tip your home upside down, everything that would fall out is considered personal property. This coverage protects these items whether they are in your house or off premises.
Speak with your insurer’s service department to see if you need to change your coverage limits.
Your insurer has a built-in tool that helps them estimate the replacement cost of your home. They update the information into the system, which provides the new rebuild cost. While a renovation can increase your premium, certain improvements can help to reduce payments. These include security systems, or a new roof. Ask about discounts, too. California Casualty offers discounts to nurses, educators, and first responders.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
