Market Value vs Replacement Cost

Homes all across the nation have
been decreasing in value – in
some areas up to 30% in the past
3 years!
Meanwhile, the cost of labor and
construction materials have increased
dramatically due to increased global demand for
lumber, steel and concrete.
What does this mean for your insurance plan?
With your home likely being one of the biggest assets,
you want it adequately protected. What is adequate
protection? Do you insure it for the amount you paid for
your home? Do you insure it for the (shrinking) resale
value?
The answer is, neither. Think of it this way: Your
insurance serves to restore your home to its pre-loss
state. That means, if your house burns down, you want
a policy that pays the cost to replace your home, taking
into consideration any increases in construction costs. In
other words, you want a policy that offers *replacement
cost* (as opposed to “actual cash value.”)
Keep in mind that rebuilding after a major loss actually
costs more than new construction, because you also
have to account for demolition and debris removal
expenses. (Think about the cost of your last trip to the
dump…)
If building costs continue to
rise, it means that your
homeowner’s policy should
be reviewed regularly to
make sure that its *limits* still
provide adequate
protection.
The same is true if you have
made substantial additions
or improvements to your
home. When in doubt, just
give our office a call.

Farcone Insurance Agency, Inc.
888-327-2663
Get a free review

C.A.R. Car Accident App

This is a great app, very detailed, oh and free! download it, pre-fill it out and hope to never use it.

C.A.R. is the most advanced accident report application built upon the latest iPhone OS 3.0 technologies. Being involved in a car accident is a very stressful situation. C.A.R. assists you to collect all necessary information through an innovative user interface. You can easily collect people and vehicle information, capture location details, and accumulate witness information through built-in multi-media utilities. All collected information and media assets can be emailed via the iPhone email client.
Features highlight:
· Support Free Apps - 100% ads free
· Auto save - application saves critical data automatically, user doesn't have to click Save on every page.
· Revolutionary user interface – designed for users under stressful condition.
· Dynamic data arrangement – support Multi-vehicle collision scenarios.
· Most comprehensive accident report – this application composes all audio, photo, drawing and text in one single email report.
· Customizable email contents for sending accident reports to all drivers, witnesses, injures and insurance company.
· Built-in advanced utilities – camera, voice recorder, text notepad and drawing pad.
· Automatic GPS look up – automatically retrieve current location, such street names, city, state and country.
· Google Map enabled – tag accident location using the embedded Google Map Kit.
· User profile setting – save time by pre-filling information.
· Privacy protection – all information stored within your iPhone.
· Latest iPhone 3.0 technologies – utilized iPhone capabilities such as Map Kit, Media Player Framework, and In App email.

http://www.inventivetouch.com/products/car/

How To Avoid Common Summer Accidents

Are you safe outside this summer?

Think about it: summertime usually revolves around things like grilling, fireworks, camping, and lazy afternoons in the hot sun.  

What else does it mean? 

Burns from those grills, firework explosions, tick bites…you see where we’re going here.
  
With the cost of health care steadily going up, it’s become ever more important to lower your risk for accidents and other health issues.  

And don’t worry: this doesn’t mean you have to avoid all the good stuff this summer.  Here are some easy ways to prevent these summer health issues…

Let’s think about grilling for a minute.  There’s nothing better than burgers and hotdogs cooked on the grill, right?

But, grills are more dangerous than you might think.  According to Consumer Reports, over 5,000 people went to the emergency room in 2007 because of grill related injuries (source: http://blogs.consumerreports.org/home/2008/07/grilling-safety.html).

What can you do to avoid that costly trip?

•    Never grill in an enclosed area like the garage.  Always pull your grill into an open area.

•    If you’re cooking with charcoal, never spray the grill with lighter fluid after the fire has been lit.  Flames can often follow the fluid back to the container that’s in your hand.

•    Keep the grease pan empty.  Grease easily catches on fire, and can cause flare-ups.


Mosquitoes, ticks, horseflies, bees…now that it’s summer all of nature is out in full force. 

And, don’t underestimate these little bugs; according to MSNBC, they send over 500,000 of us to the emergency room each year with potentially fatal allergic reactions (source: http://www.msnbc.msn.com/id/19979406/).

So, how can you have fun outside without getting eaten alive?

•    Think bug spray.  If you’re uncomfortable with the chemicals used in traditional bug spray (like OFF), there are several organic brands that use natural ingredients, like EcoSmart (link: http://www.ecosmart.com/).

•    MSNBC suggests spreading a 3 ft. layer of wood chips between your yard and the woods.  Ticks can’t cross the chips, so this will keep them out of your yard.

•    Also, make sure there is no standing water in your yard.  And, this includes your gutters.  Standing water is a breeding ground for mosquitoes.


Now let’s take a look at fireworks.  Who doesn’t love fireworks?

They make all of us feel like kids again.  But, fireworks are incredibly dangerous… 
 
According to the Center for Disease Control (source: http://www.cdc.gov/ncipc/factsheets/fworks.htm ), 2006 saw over 9,200 people in the emergency room over firework related injuries.  There were 11 deaths.

Fireworks are a great addition to any celebration, but it’s vital that you use them safely.  Here are some tips:

•    The CDC reports that more injuries occur with sparklers than rockets.  Surprised? We sure were.  Watch children carefully when they’re using sparklers.  And never light, or combine, more than one sparkler at a time.

•    Never try and re-light a firework that didn’t go off.  The National Council on Firework Safety (source: http://www.fireworksafety.com/) recommends waiting 20 minutes, and then soaking it in a bucket of water.

•    Always have a fire extinguisher or a bucket of water close by in case of an emergency.


With all the exciting, fun things that we do during the summer months, it’s no surprise that accidents can increase as well.  But all it takes is a little prevention to dramatically lower our risk…

All of us here at Farcone Insurance Agency, Inc wish you safe, healthy summer fun.

Sincerely, 

Jerry Farcone 
Farcone Insurance Agency, Inc 
jerry@farconeinsurance.com 
888-327-2663 

www.farconeinsurance.com.

Your Pet Loves You!!! Be a Responsible Pet Owner In An Emergency

Weve all heard about emergency go-bags in the event of a family
emergency and you need to leave your home. Cash, emergency contact phone
numbers, doctor info, etc.

But what about our pets?

Did you know that the biggest reason people do not leave their homes in an
evacuation is because of a pet?

(Being a lifetime dog owner, I can relate to that.)

Thats why the Red Cross recommends to arrange for your pets to a
safe location in an emergency situation.
Here are some items to consider packing up in advance:

o Blanket/sheet
o Pet carrier with contact info written on the outside
o Your pets medication (2 weeks worth), prescriptions, and medication
schedule
o Muzzle, leash, collar or harness
o A photograph of the pet
o Medical records including rabies certificate, vaccination records, and
license in a waterproof container
o Flashlight
o Disposable latex gloves
o Plastic bags for pick-up
o Water
o Feeding dishes (water, dry food)
o Pet first-aid kit
o Dry food (up to two-weeks)

Where to find Shelter for your pet:

Your vet or normal boarder can get you a list of kennels for use in an
emergency.

Ask friends and family outside of affected area if they would be
willing to take in your pet.

Check with local motels if theyre pet-friendly ahead of time.

Dont forget a disaster or evacuation could happen while you are on
vacation or at work. Make sure a trusted neighbor or friend can take care
of your pet in such a situation.

Red Cross shelters do not allow pets.


One last suggestion from the County Animal Response Team: in an
emergency, keep your pet in their carrier. Animals feel more secure. 
Placing a sheet over the carrier makes pet feel safer and calmer.

By following some of these simple steps you can better insure the
safety of your family, your pets and first responders in an emergency.

Have a great day!!!

Jerry

What happens when you have an insurance claim?

Not surprisingly, most people are neck-deep in running their own businesses and don't really understand how their insurance works ... and that can have catastrophic consequences.

You should have a basic understanding of what you'll be paid if something happens to your business property. If you don't get the money you need to replace it, how will you stay in business?

One way insurance companies pay for damaged or destroyed property is the Actual Cash Value (ACV) method. ACV is calculated as fair market value or cost less depreciation. Now think about that in this example ...

What's the value of ... let's say ... a 5 year old refrigerator?
Whatever it's worth, it's most definitely a lot less than the cost of a new one, right? A new fridge might be $1,000 but the used one may be worth only $500.

With an ACV settlement, if that fridge is destroyed, you'll get $500 from the insurance company. BUT, it will cost you $1,000 to buy a new one.

Now ... that's not necessarily a problem. It's simply a choice. You have other options.

One of them is Replacement Cost ... and under this method you essentially get "new for old". When that $500 fridge is lost, the insurance company buys you a new one - they replace the lost property - as opposed to compensating you at actual cash value.

Of course, choosing Replacement Cost means higher premiums. After all, the insurance company has more at risk when insuring replacement cost. And more risk means more premium.

Neither option is right, and neither option is wrong. It depends on your individual circumstances and your capacity to keep some risk yourself in exchange for lower premiums. (By the way there are other options. I just want you to understand the basics.) And don't forget, the value of your property changes from year to year.

In reality there are greater complexities, but if you understand the basic difference between Actual Cash Value and Replacement Cost, you'll be well on your way to protecting your property to your desire and your budget.

Give me a call if you want to discuss this topic further, or to make sure your property is protected like you want it to be.

Jerry Farcone
President, Farcone Insurance Agency, Inc.
888-327-2663

Reasons I owe my Mother!!!

Here are a few reasons that I owe my Mother...

1. My mother taught me TO APPRECIATE A JOB WELL DONE. "If you're goingkill each other, do it outside. I just finished cleaning."

2. My mother taught me RELIGION. "You better pray that will come out ofthe carpet."

3. My mother taught me about TIME TRAVEL. "If you don't straighten up,I'm going to knock you into the middle of next week!"

4. My mother taught me LOGIC. "Because I said so, that's why."

5. My mother taught me MORE LOGIC. "If you fall out of that swing andbreak your neck, you're not going to the store with me."

6. My mother taught me FORESIGHT. "Make sure you wear clean underwear, incase you're in an accident."

7. My mother taught me IRONY. "Keep crying, and I'll give you somethingto cry about."

8. My mother taught me about the science of OSMOSIS. "Shut your mouth andeat your supper."

9. My mother taught me about CONTORTIONISM. "Will you look at that dirton the back of your neck!"

10. My mother taught me about STAMINA. "You'll sit there until all thatspinach is gone."

11. My mother taught me about WEATHER. "This room of yours looks as if a tornado went through it."

12. My mother taught me about HYPOCRISY. "If I told you once, I've told you a million times. Don't exaggerate!"

13. My mother taught me the CIRCLE OF LIFE. "I brought you into thisworld, and I can take you out."

14. My mother taught me about BEHAVIOR MODIFICATION. "Stop acting likeyour father!"

15. My mother taught me about ENVY. "There are millions of less fortunate children in this world who don't have wonderful parents like you do."

16. My mother taught me about ANTICIPATION. "Just wait until we get home."

17. My mother taught me about RECEIVING. "You are going to get it when you get home!"

18. My mother taught me MEDICAL SCIENCE. "If you don't stop crossing youreyes, they are going to stay that way."

19. My mother taught me ESP. "Put your sweater on; don't you think I knowwhen you are cold?"

20. My mother taught me HUMOR. "When that lawn mower cuts off your toes,don't come running to me."

21. My mother taught me HOW TO BECOME AN ADULT. "If you don't eat yourvegetables, you'll never grow up."

22. My mother taught me GENETICS.. "You're just like your father."

23. My mother taught me about my ROOTS. "Shut that door behind you. Wereyou raised in a barn?"

24. My mother taught me WISDOM. "When you get to be my age, you'll understand."

Farcone Insurance wants to wish all of our customers and friends a wonderful Mothers Day to you or to your mother.

Take care,

Jerry

Rental Car Coverage (IMPORTANT READ)

Rental Car Insurance 

Rental-Car Contracts Raise Coverage Stakes. Two revisions in rental-car contracts have significantly increased the renter's portion of the risk. One is an added charge for "diminution in value" whenever a rental car is repaired. The other is "before and after", a method of determining the renter's responsibility when a car is substantially damaged.

Diminution in Value-About five years ago, rental companies began holding the renter liable for a "diminution of value" charge when a rental car was damaged. This charge represents the reduction in a vehicle's market value due to its having been in an accident. When a repaired car is eventually sold, it brings a lower price.

When a renter returns a vehicle in damaged condition, he or she receives one bill for repairs and another for diminution in value. Most auto policies cover most of the repairs but few cover diminution in value. This exclusion was introduced for the personal auto policy in 1999, with one for commercial auto a few years later.

There has also been extensive litigation addressing how coverage applies in the absence of an exclusion. Most courts have found policies do not cover the exposure, so the renter can expect to self-insure for diminution in value. Unfortunately, that's not the end of the story.

Diminution in value is a concern when the rental company repairs a damaged vehicle--but today many cars are never repaired. With some types of damage, liability concerns make rental companies reluctant to return a repaired car to the fleet. Instead, they simply sell the damaged car for salvage. They then charge the renter the difference between the market value on the day of rental ("before") and the amount the car brought at the salvage auction ("after").

The following language is found in a the contract of a major rental car company: "If the car is damaged, you will pay our estimated repair cost, of if, in our sole discretion, we determine to sell the car in its damaged condition, you will pay the difference between the car's retail fair market value before it was damaged and the sale proceeds."

A recent Michigan example illustrates this practice. The insured rented a Ford Freestar with an estimated market value of $26,500 and brought it back damaged. The cost of repairs, loss of use and the appraisal fee totaled $7,800. The rental company chose not to repair the vehicle but to sell it at a salvage auction, where it brought only $11,700. The renter received a bill for about $14,800, or the difference between the before and after values. The renter's auto policy paid only the estimated repair costs, leaving a balance of almost $7,000. That became the responsibility of the renter--quite a significant self-insured retention.

"Both provision are being added to all rental car contracts," stated Jim Maher of Midwest Car Corp. The company holds a 17-city franchise for two major rental car lines. He added that since the renter has signed a legally binding contract, rental companies have no difficulty collecting.

As these new provisions are activated, the gap between what the renter owes and what his or her insurance will pay has become too wide to ignore.

Isn't some coverage for damage to a rental car included with a credit card? Only some credit cards provide any coverage for a rental car. It's generally excess over the renter's auto policy, and payment is limited to the cost of the repairs. A renter should not expect a credit card company to pay diminution in value or before-and-after charges.

There's really only once place renters can obtain full coverage and that's through the purchase of the loss damage waiver offered by the rental car companies.

The Loss Damage Waiver--Rental-car companies hold the renter responsible for all damage to the rental car, including an act of God. If a tree totals the rental car during a severe windstorm, the renter is liable. The rental company will waive its right to hold the renter responsible if he or she pays an additional fee and abides by the terms of the waiver. This waiver, which is not insurance, can add between $15 and $30 per day to the cost of the rental.

With the waiver, the renter will not be liable for any damage to the vehicle. He or she will not be charged for repairs to the vehicle, for diminution in value, for before-and after assessments or for loss of use. The renter can walk away from all responsibility for damage to the vehicle as long as he or she has not engaged in any prohibited use.

All rental car waivers have a clause voiding the waiver if the renter improperly operates the vehicle at the time of the accident. Although wording varies, most waivers prohibit reckless or intoxicated use or use off paved roads. There is no coverage if an unauthorized driver uses the vehicle, so handing the keys to a valet parking attendant voids the waiver. Theft of the vehicle is not covered if the keys are left in the car or if the vehicle is unlocked.

Buying the loss damage waiver is the only way to close the significant rental car gap that now exists. A renter must weigh the benefits against the cost. The renter who purchases the waiver should review the prohibited use provisions and avoid engaging in any activity that would void the waiver.
Where do we stand on this issue? Well the most important factor is inspect the car before leaving.. never never take off in a rental car with out a thorough inspection of the car and an inspection sheet with you. We pay for a lot of rental car claims every year that our clients say, "that damage was already there!" Secondly, I pay for the rental coverage offered by the rental company if I am renting a car for a day or two, maybe three... If I am renting a car for weeks, the cost usually doubles so I waive it.