General

The Importance of Reviewing and Updating Insurance Policies in the New Year

As the calendar turns a new page, many individuals and businesses take the opportunity to set resolutions and goals for the year ahead. Among the priorities that often get overlooked is the review and update of insurance policies. However, this crucial step can have a significant impact on financial security, providing peace of mind in the face of life’s uncertainties. In this article, we’ll delve into the importance of reviewing and updating insurance policies at the beginning of the year, and some proactive steps you can take to make sure your coverage is aligned properly with your current circumstances.

Assessing Life Changes:

Life is dynamic, and with it come various changes that can influence insurance needs. Individuals and businesses should assess their life situations as the first step toward ensuring that insurance coverage remains relevant and effective.

1. Personal Circumstances: Life events such as marriage, the birth of a child, or changes in health status can significantly impact insurance requirements. A married couple may need to adjust their life insurance policies to adequately protect their growing family. Similarly, the birth of a child may necessitate updates to health insurance plans and considerations for additional coverage.
2. Home and Property Changes: Changes in residential circumstances, such as renovations, additions, or the purchase of valuable assets, should prompt a reassessment of homeowners or renters insurance. The value of personal belongings, the structure of the property, and potential liabilities may all be affected by these changes.
3. Vehicle Changes: The acquisition of new vehicles or changes in driving habits can impact auto insurance needs. Informing insurance providers about changes in the number of vehicles, mileage, or drivers in the household helps ensure that coverage aligns with the current situation.
4. Business Operations: For business owners, changes in operations, expansions, or modifications to the nature of the business may necessitate updates to commercial insurance policies. Staying ahead of these changes ensures that the business is adequately protected against potential risks.

The Importance of Regular Policy Reviews:

Staying Ahead of Underinsurance: Failing to update insurance policies can lead to underinsurance, where coverage is insufficient to meet actual needs. Regular reviews help individuals and businesses identify gaps in coverage, allowing for the adjustment of policies to better protect against potential risks.

1. Taking Advantage of New Coverage Options: The insurance landscape is constantly evolving, with new coverage options emerging to address modern risks. Regular policy reviews present an opportunity to explore and integrate these new options, enhancing overall protection.
2. Maximizing Cost-Efficiency: Lifestyle changes and shifts in risk profiles may affect the cost of insurance. A review enables policyholders to explore cost-saving measures, such as bundling policies, adjusting deductibles, or taking advantage of discounts for safety features.
3. Adapting to Market Conditions: Economic and market conditions can impact insurance rates and coverage availability. Staying informed about these changes and adapting policies accordingly ensures that coverage remains both comprehensive and cost-effective.

How to Review and Update Policies:

1. Compile Policy Documents: Gather all insurance policy documents in one place. This includes homeowners or renters insurance, auto insurance, life insurance, health insurance, and any other relevant policies. Having a comprehensive overview makes the review process more efficient.
2. Evaluate Coverage Limits: Assess the coverage limits of each policy. Are they sufficient to cover potential losses in the current circumstances? Adjust coverage limits as needed to align with changes in lifestyle, property values, or business assets.
3. Consider Deductibles: Evaluate deductibles for each policy. Adjusting deductibles can impact premium costs, and individuals may choose to increase or decrease deductibles based on their risk tolerance and financial situation.
4. Review Beneficiary Information: For life insurance and retirement accounts, review and update beneficiary information. Marriage, divorce, births, and deaths can all influence beneficiary designations, and it’s crucial to ensure that these designations reflect current wishes.
5. Explore New Coverage Options: Research and consider any new coverage options that may be relevant. This could include cyber insurance for individuals with increasing digital assets, umbrella policies for added liability protection, or coverage for specific high-value items.
6. Update Personal Information: Ensure that personal information provided to insurance providers is accurate and up-to-date. This includes addresses, contact numbers, and any other relevant details. Accurate information helps prevent potential issues during the claims process.
7. Consult with an Insurance Professional: Seek guidance from an insurance professional or advisor. Their expertise can provide valuable insights into potential coverage gaps, emerging risks, and cost-saving measures. An insurance professional can also assist in navigating the complexities of policy adjustments.

As we embark on a new year, the importance of reviewing and updating insurance policies cannot be overstated. Life is a journey marked by change, and the landscape of risks and uncertainties evolves alongside it. Taking the time to assess personal and business circumstances, understanding the importance of regular policy reviews, and proactively adapting coverage ensures that insurance remains a reliable shield against the unexpected. By incorporating this practice into annual routines, individuals and businesses can start each year with the confidence that their insurance policies align with their current needs and provide a solid foundation for financial security. Contact our team today at 607-547-2951 for a free quote!

In recent years, the concept of “shop local” has gained popularity across the United States, with many communities and businesses promoting the benefits of supporting locally owned and operated businesses. This movement has also taken hold in New York State, with many communities and organizations advocating for the importance of shopping local and supporting the local economy.

One of the primary benefits of shop local initiatives is their impact on the local economy. When consumers shop at locally owned businesses, they are supporting the local economy by keeping money in the community. These businesses are more likely to purchase goods and services from other local businesses, creating a ripple effect that helps to strengthen the local economy. This, in turn, creates jobs and attracts new businesses to the area, making it a more vibrant and prosperous community.

Another benefit of shop local initiatives is the unique and diverse shopping experiences that they provide. Locally owned businesses often offer products and services that are unique to the area, creating a shopping experience that cannot be found at larger chain stores. These businesses are also more likely to offer personalized service and to be active members of the community, creating a sense of connection and community that is difficult to find at larger chain stores.

In addition to the economic and shopping benefits, shop local initiatives also have a positive impact on the environment. Local businesses are often more sustainable and environmentally friendly than larger chain stores. They are more likely to source goods and services locally, reducing the carbon footprint associated with transportation, and to implement environmentally friendly practices in their operations.

Shop local initiatives also help to foster a sense of community and build stronger relationships between local businesses and consumers. Local businesses are more likely to be involved in community events and to support local organizations and causes, helping to create a sense of community and to build relationships with the customers they serve.

In New York State, many communities and organizations have embraced the shop local movement and are working to promote its benefits. These initiatives range from local “buy local” campaigns to events that celebrate and support local businesses. There are also a number of organizations, such as the New York State Independent Business Alliance, that work to promote the benefits of shopping local and to support the growth of locally owned businesses in the state.

The benefits of shop local initiatives in New York State are numerous and far-reaching. These initiatives promote the local economy, provide unique and diverse shopping experiences, have a positive impact on the environment, foster a sense of community, and build stronger relationships between local businesses and consumers. By shopping local, New York State residents can help to support the growth and development of their communities and to build a more vibrant and prosperous state.

Who Doesn’t Love a Barbecue?

One of the best things about summer is the ability to cook outdoors.  We hold family barbecues, attend outdoor picnics, and just generally cook outside whenever we can while the season is here.  70% of our households in the U.S. own an outdoor grill or smoker.   While a big part of our summer fare, outdoor cooking does not come without risks.  An average of 10,600 home fires are caused each year and almost 20,000 emergency room visits are directly related to home grilling and about half of those injuries involve thermal burns.  Take a look through these Summer Grilling Safety Tips – recommended by the National Fire Protection Agency (NFPA).  NFPA is a global self-funded nonprofit organization, established in 1896, devoted to eliminating death, injury, property and economic loss due to fire, electrical and related hazards.

GENERAL GRILLING SAFETY TIPS 

• Propane and charcoal BBQ grills should only be used outdoors. 
• The grill should be placed well away from the home, deck railings and out from under eaves and overhanging branches. 
• Keep children and pets at least three feet away from the grill area. 
• Keep your grill clean by removing grease or fat buildup from the grills and in trays below the grill. 
• Never leave your grill unattended. 
• Always make sure your gas grill lid is open before lighting it. 

CHARCOAL GRILL SAFETY 

There are several ways to get the charcoal ready to use. Charcoal chimney starters allow you to start the charcoal using newspaper as a fuel. If you use a starter fluid, use only charcoal starter fluid.  

• Never add charcoal fluid or any other flammable liquids to the fire. 
• Keep charcoal fluid out of the reach of children and away from heat sources. 

There are also electric charcoal starters, which do not use fire. Be sure to use an extension cord for outdoor use. 

When you are finished grilling, let the coals completely cool before disposing in a metal container. 

PROPANE GRILL SAFETY

Check the gas tank hose for leaks before using it for the first time each year. Apply a light soap and water solution to the hose. A propane leak will release bubbles. If your grill has a gas leak, by smell or the soapy bubble test, and there is no flame, turn off both the gas tank and the grill. If the leak stops, get the grill serviced by a professional before using it again. If the leak does not stop, call the fire department. 

If you smell gas while cooking, immediately get away from the grill and call the fire department. Do not move the grill. 

If the flame goes out, turn the grill and gas off and wait at least 5 minutes before re-lighting it. 

So, enjoy your barbecue, but remember to take steps for safety!  If you should need any guidance on insurance in case something goes wrong, please feel free to contact our team at Bieritz Insurance Agency to see if you have the protection you need.  We are happy to assist you.

Insurance Customer Service Representative

Do you enjoy working with people and businesses to help them succeed?

Join the Bieritz Insurance Agency, in Cooperstown, NY. We are seeking a full time Customer Service Representative.  Experience in P&C insurance is preferred but not required.

Training and licensing to be provided. Pay to be determined upon experience.

Requirements: Pleasing phone mannerisms, database skills, one year of customer service experience and the ability to multitask.

To apply, please complete and submit the form below.  Thank you!

Employment Application Form

Insurance is meant to protect your home, your car, your belongings and your family from financially devastating incidents.  Few people *like* to pay for insurance. For many, home and auto insurance seems like large expenses for something they probably will never need, and for that reason, some will choose to insure for a bare minimum in order to save more and spend less. However, while being underinsured may seem thrifty, in the long run, the money you end up having to pay will likely exceed the amount you save. Here are some of the reasons why being underinsured is more expensive than receiving sufficient insurance.

Expensive Emergency Repair Costs

As anybody who has had their home severely damaged after an accident or natural disaster can attest, however much they were paying on insurance, it was pocket change compared to the costs in repairs. If you don’t have enough coverage, you could be on your own when disaster strikes. What’s more, if you’re not sufficiently insured, you may run into some trouble with your local government for not adhering to local regulation codes in regards to home insurance.

Risk of Flood Damage

Some people who have insurance for most risks choose to abstain from buying flood insurance to save money. After all, most standard homeowner policies don’t automatically cover flood damage and floods are a rare occurrence anyway. This is a bad idea, however, as even with maximum FEMA flood protection, you could be left with massive deductibles, so it’s important to get additional coverage in case of these natural disasters.

High-Value Items may not be Covered

The problem with small, basic insurance policies is that they only cover general forms of damage to things like walls and floors, etc. But there are many items of significant worth like jewelry, paintings, rare coins, antiques, china and clothing that often slip through cheaper policies. There could be thousands of dollars worth in valuable items that you could lose completely without the right coverage.

An Accident Could Have a Very High Deductible

Deductibles are often not looked at very closely by people shopping for insurance. Most people prefer lower premiums even with the risk of paying high deductibles. This makes some sense financially, however, you don’t want to ignore deductibles completely, as this could lead to you spending considerably more money after an accident. A typical $500 dollar deductibles could be turned into a much higher deductible for a less expensive policy and should be considered when making decisions on the overall expense.

Your Insurance May Not Cover Your Repairs 

‘Bare-boned’ insurance policies may simply not provide enough to cover your actual repair costs.  If you opt for a minimal policy, make sure you review a ‘worst-case’ scenario with our team so that you can make an informed decision.

Extra Expenses Can Add Up

Finally, remember that insurance policies are not simply meant to cover the cost of damage to your house or car, they are also to help you with any extra expenses that may result. Even if your insurance covers your house in case of fire, you may have lodging expenses to pay while your home is being repaired. Likewise, if your basic insurance covers your car for accidents and repair costs, it might not reimburse you for a rental that you need to get around in the meantime.  Insufficient policies often leave people hung out to dry when it comes to assisting them with additional expenses, and these expenses can add up.

Many people, especially now, are trying to take steps to save money on their monthly bills. Insurance is not the area to make cuts as your policy needs to cover expenses when filing a claim. If you’re worried that you might be underinsured, look over your home and car policies and discuss your concerns with our team at Bieritz Insurance. Review your policies each year to make sure they continue to provide adequate coverage. Remember to think about your insurance in relation to the price of your house, your property value, and the demand in the housing market in your area.

Attention all insurance policy holders:

If you are experiencing financial hardship due to the COVID-19 pandemic, there is information available through the New York State Department of Financial Services that discusses the new regulations concerning payments, missed payments, late fees and more, as per the Governor’s Executive Orders (March/April).

CLICK HERE TO VIEW OR PRINT THE FULL GUIDANCE DOCUMENT.

The above document is the full, formal, legal document, so if you have any trouble understanding what it might mean for you, please contact our office at 607-547-2951 and we will be happy to review your needs together with you.

Above all, we are here to help our clients safely navigate through these unprecedented times and provide our support as needed.

Stay safe and be well.

Ben Novellano, President
Bieritz Insurance Agency

Home, life and auto insurance consists of paying providers in premiums and deductibles. A premium is your monthly fee for the insurance. Without insurance, you are left to foot a huge bill for injuries, accidents and property damage if you are held liable. Premiums basically have you pay monthly so that when something serious does happen, you only pay a smaller, fixed amount of money, which is the deductible.

What Is An Insurance Deductible?

For those that need a better understanding of what an insurance deductible is, it is how much money that you would have to pay in the event of damage or a loss. Some examples of having to pay a deductible would be if you are responsible for causing a car accident, if you drive through somebody’s fence, etc.

You might have an insurance policy that costs 50 dollars a month, with a deductible of $500. That means you will have to pay just $500 with the rest of the expenses being paid for by the insurance company. For auto, this is to not just promote responsible driving, but to also spread the cost of damages evenly between drivers and their insurance providers.

You can buy insurance with a high or low deductible, but whatever type of deductible you get, you get a fixed premium that reflects it. If you, for instance, choose a low monthly payment or premium, the deductible goes up, meaning that you will have to pay more in the event of an accident or damaged assets. If you choose a high premium, and pay more each month for insurance, your deductible will typically be lowered. The relationship with premiums and deductibles has a teeter-totter effect to it.

When considering a high or low deductible, however, there are many factors to consider. Choosing your deductible is a pivotal personal and financial decision that should define what meets your needs the best.

Insurance plans are essentially based on risk, with both the provider and the consumer in an agreement to assume a degree of risk. Provider can have multiple insurance plans available, both that have high deductibles when an insurance claim is submitted, as well as high premiums.

The insurance plan that is best for you depends on a number of factors including your financial commitments and expected income. Before signing an insurance contract, it is important to be able to have the money available to cover deductibles, medical bills, rental cars, co-payments, and/or anything else.

High Deductible

High deductibles are more favorable to consumers thanks to the low monthly payments. Paying for a higher deductible might be worth it for people that avoid having to drive long distances and in high-traffic areas. High deductibles are also worth it for people that have the cash saved up in case of such an event.

Will the money that you save with a low monthly fee be worth the higher risk with a high deductible? High deductible are worth it for people who want to be rewarded for driving safely and have money on reserve in the event of an accident or damaged assets.

Low Deductible

Some people decide that it is worth it to pay more in premiums per month and get a lower deductible in return. If an accident or anything were to happen to your property, you would have to pay less out-of-pocket.

Low deductibles are ideal for young drivers who are still getting used to driving or are driving rather reckless. Low deductibles are also better for repeat offenders. People who drive recklessly are more likely to get into an accident than people who drive safely, so having an insurance plan with a low deductible will be the better of the two choices.

Choosing Between High And Low Deductibles

If you are still contemplating high and low deductibles, you should consider your current financial situation as well as your driving record to determine what sort of insurance plan you should go with. If your driving record is spotless and have been driving for longer than ten years, there is a chance that you can lower your deductible without raising your monthly premiums. When reviewing insurance policies, you should come across choices in deductibles such as 250, 500, 1,000 and 1,500 dollars. If you’ve never had an accident, it makes sense for you to choose a high deductible. Otherwise, you likely want a low deductible if there are a few blemishes on your driving record.

Conclusion

Both types of deductibles can be good to have, and we do not consider one to be better than the other. Both types of deductibles can be seen as advantageous depending on financial situations, security and driving habits, and the needs of either vary depending on the customer.  If you have questions about deductibles or any of your insurance plans, contact our team at Bieritz Insurance for an appointment.  We will be happy to provide the information and options you require for the best plan possible.

It always pays to have insurance — that’s common knowledge. Yet sometimes trying to cut through the terminology and jargon can prove difficult. When shopping for insurance or preparing to file a claim, you may find that you need a little guidance on what some of these terms mean; such is the case with the terms Actual Cash Value, or ACV and Replacement Cost.

In some instances, a policy with one of these could pay significantly less on your claims than the other — it literally pays to know the difference. How can you know which? First you need to understand what the terms mean.

Defining the terms

In the simplest terms, Actual Cash Value refers to the monetary value of an item. Keep in mind that this takes into account depreciation. For example, a vehicle purchased five years ago will have a lower ACV now than when you first bought it.

Replacement Cost refers to the cost of replacing damaged property with a replacement used for the same purpose and made of similar material and of comparable quality.

A real world example of ACV

Let’s return to the aforementioned vehicle purchased five years ago. In this example you have taken great care of your vehicle, but it has still sustained minor scratches in the paint. It would not be unreasonable to assume that you have driven roughly 60,000 miles in those five years. So if that vehicle sustained damage requiring a replacement, your insurance company would not compensate for the price of the vehicle when purchased. Rather they would consider the vehicle’s current worth, or ACV.

How insurance carriers calculate Actual Cash Value varies from company to company, and these calculations often get incredibly detailed and complex. For this example, however, the insurance company would subtract the depreciation from the replacement cost to assess the Actual Cash Value. The level of depreciation itself can involve a complicated calculation involving an estimate of the length of time property would remain useful, and how long it had been used.

In most cases, this calculation is much more complex, but this example provides a useful summary of ACV and explanation of how insurance companies arrive at that figure.

An example of Replacement Cost

Most people find Replacement Cost a bit easier to understand — largely because it’s more straightforward. It simply refers to the expense of replacing damaged property based on current costs. In the case of the damaged vehicle, Replacement Cost would refer to the amount of money necessary to provide a comparable replacement. This doesn’t mean that an exact duplicate of the damaged vehicle, but a similar vehicle of comparable quality.

Actual Cash Value VS Replacement Cost

One the surface, these two seem incredibly similar — and they are. The only significant difference between them lies in the deduction of value based on depreciation. Otherwise, both terms refer to the cost of replacing destroyed or damaged property with new property.

In practice however, ACV might not help as much. In our vehicle example, the calculation for Actual Cash Value might not take into consideration the rising cost of vehicles. You might find it difficult to replace your totaled vehicle with one of comparable quality with ACV.

As another example, consider if you lost your house because of fire. The Actual Cash Value may not provide enough money to purchase a house in the current market, especially if property values have risen in your area.

Replacement Cost, however, addresses the real life cost of replacing your property. In the case of the vehicle, it would adjust for higher vehicle prices. In the example of the house lost to fire, it would allow you to rebuild your home based on the current costs of materials and labor.

ACV or Replacement Cost

For most property owners, an insurance policy that covers Replacement Cost offers a much safer option. Because of the reasons stated above, these policies will go a lot further to replace your property than those that cover Actual Cash Value.

This comes with a few caveats. Often policies with Replacement Cost coverage will have higher premiums than policies that offer Actual Cash Value. Additionally, some property owners who rent out homes will opt for lower premium ACV policies, and require tenants to insure their personal possessions via renters insurance.

In most cases, insurance policies that cover Replacement Cost will offer greater security in the case of damaged or destroyed property. Although no one wants to face the challenge of replacing a vehicle, home or other property, an insurance policy that covers Replacement Cost provides the better route to getting yourself back to the life you had before the loss.

If you have any questions about insurance terminology and what the factors can impact your rates, our team is happy to provide you with some guidance!  You can Contact Us at your convenience.  For additional information on insurance terms, visit our website page here: Insurance Terms & Definitions.