“Is Our Home Fully Insured?”

In Southern California, during the wildfires, this question was asked many times. And the answer is that 40% probably were, while 60% were underinsured by an average of 20%. So, as you can imagine, there were some nervous people in So Cal when the temperature rose and the Santa Ana winds blew. To make sure you are fully covered, follow these simple steps:

1) Know how much is your home is insured for. You can find this information from the Declarations Page (it comes with the policy) or call your agent.

2) be aware that the replacement costs are about $200 to $250 per square foot.

3) To be fully reimbursed, document what you own. In cases where there is a dispute, documentation always wins. Keep receipts, photos and videos of your stuff. I made a documentary called “All My Shi*.” I went from room to room with a video camera narrating, “This is the couch I bought at Pier One in 2005 for $800….” Not stuff for the Academy, but it works. Once you’ve done that keep the video at your office or in a fireproof safe.

4) In the event of a disaster, call your agent and he or she will be able to help you get sorted out with emergency funds for hotel rooms, clothes and food.

The claim process can be scary, so lean heavily on your agent for guidance. But the best way to be prepared for a claim is to be certain your coverages is current. Spent 30 minutes a year with your agent and review your policies. Not only with you sleep better knowing you are adequately covered, but your agent is usually good for a cup of coffee and a cheesy keychain.

Guest Blogger: Stacia Deutsch

It was an amazing week. This week, I bought insurance. For most, this wouldn’t seem like such a big deal. Covering your house, your car, your family against some catastrophe hopefully will never occur is a rather mundane necessity. But for me…this simple act of holding insurance papers in my hand was an amazing moment. One of those that instances that you tuck away in your memory file…never to forget.

I am divorced. Having been married for most of my adult life, there are a few things I never actually did for myself. Sure, I managed the house, the kids, the daily ins-and-outs of a job and family, but there were a few things that remained in “his” domain. It seems a little sexist in light of gender equality, but did I really need to be the one to roll the trash cans to the curb? File the taxes? Or obtain the insurance? No. Those were his tasks… I stepped back and was never involved.

Now, things have changed. I remember the day I first pulled those trash cans to the curb myself. I felt the pang of failure that our relationship hadn’t weathered the tests of time, but I also felt resolute, that feeling of accomplishment when you know things are going to be okay and that you will be survive whatever is to come. Pretty big feelings for such a tedious task.

I am forty years old and for the very first time in my life, I have now arranged for my own insurance. I got the papers this weekend and have not stopped smiling. I will forever thank State Farm Agent, Jim Seilsopour. He understood that this was a big moment for me. I might have a master’s degree, but I didn’t have the right vocabulary. He explained the coverage in terms I could understand. He explained umbrellas and liability. Jim asked me questions about MY home: Did I have an alarm system? Sprinklers? Was MY community gated? We talked about MY car, the one I use to take my family where they need to go. Jim made sure everything was protected.

When I took those papers from him, held the folder that said State Farm blazoned across the front, I had an indescribable feeling well up inside me. I had taken another step in my independence. It was a combination of strength and power mixed with security and protection. I must admit that buying insurance was an even better feeling than pulling out the trash cans…

If I feel this great about insurance…I can’t help but wonder how I will feel when I finally pay my own taxes for the first time?

Are Your Important Employees Covered?

As a successful business owner, you know that everyday operations hinge on that employee who knows the business better than anyone but you. You know, the one that has been with you longer than nearly anyone else.

It takes time to build a business and hire and train quality employees. Most smaller businesses have those indispensable employees with skills that are critical to its success. If something should happen one or more of your key employees, will you be prepared?

The death of any employee is tragic. However, when a key employee dies, the loss is financial as well as personal. Finding and training the right person to replace your lost employee can be costly.

A life insurance policy on key employees can help cover the expense associated with finding, attracting and training a new employee. It can also assure creditors and customers that your business will continue.

Premiums for a life insurance policy can be only a small fraction of the death benefit while that death benefit may be received free from federal income tax.

Your business is an important part of your life. Each of your employees is important to the success of your business. Make sure your business will survive the loss of your best and brightest employees.