Month: August 2024

What is Forced-Placed Insurance?

Posted on by admin

Homeowners in Olathe, KS, and other parts of the state might be hearing an unfamiliar term lately. At the AHI Group, we’ve been receiving more calls inquiring about "Force Place" insurance. Callers have been learning about it from their lenders following the lapsing of home insurance policies. So, what does this term mean, and what actions should be taken to avoid it? Here’s what you need to grasp about forced-place insurance.

What is Forced-Place Insurance?

If you have a mortgage on your home, your lender will likely require you to carry homeowners insurance. However, the lender will receive a notification if you fail to maintain payments for this homeowners insurance or cancel it. At this point, they will likely force-place home insurance on the property. Essentially, this means the lender will secure insurance while you will remain responsible for paying for it.

The Problem with Forced-Place Insurance

You should take every possible step to avoid having forced-place insurance on your home.

  • It’s incredibly expensive.
  • It benefits the lender, not the homeowner.
  • It only covers the mortgage balance.
  • It doesn’t account for your equity.
  • If you miss payments, it could lead to foreclosure.

The bottom line is that you need to maintain your insurance if you hold a mortgage. You’re much better off maintaining your own insurance policy rather than letting your lender force-place insurance on your home.

Get a Home Insurance Quote Today

If you’re feeling the pinch of rising homeowner’s insurance rates in the Olathe, KS, area, we might be able to assist. Contact the AHI Group for a quote today. You may have options. Allow us to be of aid.

Here’s how to put the brakes on auto theft

Posted on by AHI Group

Motor vehicle thefts increased 25% from 2019 to 2022 alone. Auto theft is an issue that causes significant financial losses, property loss, damages, and even injury or fatalities due to the involvement of stolen vehicles in crime. Auto theft rates could also be contributing to a rise in your car insurance rates!

Theft is obviously a huge issue in the U.S., and in some parts more than others. Here’s how you can protect your own car from auto theft and prevent yourself from contributing to the statistic.

Is auto theft contributing to car insurance price increases?

Yes. Auto theft is a significant contributor to the rising car insurance rates in the United States. When vehicles are stolen, insurance companies often have to cover the cost of the stolen vehicle, leading to substantial financial losses and claim payout for companies. These losses don’t just impact the insurance companies; they also affect policyholders. To offset the increased costs associated with auto theft claims, insurers may raise premiums across the board. So, just because your car hasn’t been stolen, you could still see rate increases because other policyholders are filing claims for theft.

Additionally, the rise in organized crime rings targeting high-value vehicles has exacerbated the problem. These groups often dismantle stolen cars to sell the parts on the black market, making it difficult for authorities to recover the vehicles. This trend has led to an increase in claims, further driving up costs.

What’s worse is the costs associated with these thefts are much higher due to the expensive parts and sophisticated systems being implemented in newer vehicles. Insurance rates rise to cover the growing risks and expenses, making auto theft a key factor in the overall increase in car insurance premiums.

Preventing auto theft

No car is immune to theft. There’s really no surefire way to protect a vehicle, but there are measures you can take to lessen the possibility of theft. What’s even better is that your insurance company may reward you for the steps you take to prevent theft. Some aftermarket devices built to deter theft, like car alarms and wheel locks, qualify for insurance discounts with certain insurance companies.

Our advice for preventing auto theft

Not all of our steps will guarantee an insurance discount, but what they will guarantee are slightly reduced odds of auto theft. Consider the following if you’re concerned about theft or simply want to bolster your defense against an ongoing issue:

Secure your vehicle

Always lock your car and ensure that windows are fully closed before leaving the vehicle, even if you’re just stepping away for a short time. Parking in well-lit, busy areas can also deter potential thieves. If possible, park in a garage or secured lot.

Use anti-theft devices

Consider installing anti-theft devices such as steering wheel locks, car alarms, or immobilizers. These devices can make it more difficult for thieves to steal your vehicle, acting as both a deterrent and a safeguard.

Invest in a GPS tracking system

A GPS tracking system can help authorities locate your vehicle quickly if it’s stolen. These systems can be especially useful for recovery and can sometimes qualify you for discounts on your insurance premium.

Keep valuables out of sight

Leaving valuables in plain view can attract thieves. Store items like electronics, bags, and other valuables out of sight, either in the trunk or by removing them from the car altogether.

Stay vigilant in high-risk/crime areas

Be aware of your surroundings, especially in areas known for high rates of auto theft. Avoid leaving your vehicle unattended for extended periods in these locations, and consider additional security measures if you live or work in a high-risk area.

Update your vehicle’s security technology

If you drive an older vehicle, consider upgrading its security features. Modern cars often come with advanced anti-theft technology, but older models can benefit from added security measures like aftermarket alarms or immobilizer.

Certain vehicles may be more at-risk than others

Certain vehicles, particularly those that are higher value or are sometimes simply more common, may be considered “higher risk” for auto theft and as such can cost more to insure. As to what vehicles are considered high-risk, well it depends. Every insurance company has their own list, and they’re not exactly publicly available. You can determine which car model/make is the lowest to insure by shopping around and getting a variety of quotes (or you can ask an agent to do this on your behalf), but sometimes the National Insurance Crime Bureau will share a list of most stolen vehicles that can be handy. Not all insurers will rate cars based on this list exactly, but there is usually plenty of overlap.

The same goes for certain states and regions, too. California currently holds the crown as the state with the most auto thefts per year, with around 99,000 thefts recorded in 2023. Texas comes in second with around 55,000 recorded instances of theft. Living in these states may mean paying more for your car insurance than you would if you lived in a state with a lower recorded rate of vehicle theft.

Is E&O insurance the same as professional liability insurance?

Posted on by AHI Group

Suppose you’ve ever shopped for business insurance as a professional before. In that case, you may have come across the term “E&O”. E&O, short for errors and omissions, outlines the kind of mistakes or misinformation that someone in a professional line of business could be accused of. E&O can be a big deal, sometimes resulting in tremendously costly lawsuits that can put you out of work for good.

E&O has always been a risk for professionals, but the new wave of AI has caused a surge of AI-related lawsuits over privacy infringement and copyright. Professional liability insurance, also called errors and omissions (E&O) insurance, is more important than ever to protect business professionals.

What is E&O insurance?

Errors and omissions insurance and professional liability insurance are the same thing, to summarize the topic shortly. However, businesses and insurers may use different names for similar/the same coverage, so it’s important to recognize that they refer to virtually the same policy. Whatever you call it, this type of insurance protects against claims of negligence, mistakes, or failure to perform duties that result in a financial loss to a client. Although it’s often referred to as E&O insurance, particularly in industries like real estate, insurance, and consulting, the term “professional liability insurance” is also widely used, especially in fields like law, medicine, and engineering.

E&O insurance is designed to cover the legal costs and any settlements or judgments that arise from claims of professional negligence. For example, if a financial advisor gives advice that leads to a client’s financial loss, the client might file a lawsuit claiming that the advisor’s guidance was flawed or incomplete. In such cases, E&O insurance would cover the costs of defending against the claim, as well as any damages awarded, up to the policy limits.

Why is E&O insurance also called professional liability insurance?

Errors and Omissions (E&O) insurance and professional liability insurance are terms often used interchangeably, but they essentially refer to the same type of coverage. The reason for the different names lies in the specific industries and professional practices where this insurance is most commonly utilized.

E&O insurance is a term frequently used in industries like real estate, consulting, and insurance. It emphasizes coverage for errors and omissions—essentially, mistakes or failures to perform certain duties—that could lead to a client’s financial loss. For example, if an insurance agent incorrectly processes a policy that results in a client being underinsured, the client could file a claim against the agent. E&O insurance would then cover the defense costs and any resulting financial liabilities.

On the other hand, professional liability insurance is a broader term that is commonly associated with professions such as law, medicine, and engineering. This term highlights the protection provided against claims of professional negligence or malpractice. For instance, a lawyer might be sued for providing poor legal advice that leads to a client’s loss in court. In this scenario, professional liability insurance would cover the associated legal expenses and any damages awarded.

Another name for E&O insurance includes medical malpractice insurance which, while it is technically also professional liability insurance, is more slanted towards medical professionals and the kinds of E&O claims that they may face.

The distinction in terminology often depends on the industry and the specific risks associated with it. However, medical malpractice, E&O and professional liability insurance serve the same fundamental purpose: to protect professionals from the financial consequences of claims alleging that their services or advice caused harm to a client. Whether referred to as E&O insurance, medical malpractice, or professional liability insurance, this coverage is a vital component of risk management for anyone offering professional services.

Who needs E&O insurance?

Any business or individual who offers a professional service or advice in exchange for monetary compensation could technically need or even be required to carry E&O insurance.

Here’s a list of some professionals who may benefit from or be required to carry E&O:

  • Consultants
  • Accountants
  • Lawyers
  • Therapists
  • Social workers
  • Nurses
  • Chiropractors
  • Physiotherapists
  • Acupuncturists
  • Advisors
  • Architects
  • Engineers
  • Media and marketing professionals
  • IT professionals

Note that this list is really finite, and your profession may fit the bill of a business that could benefit from–or even is required to carry–E&O/professional liability insurance.

Give us a call at AHI Group

Finding affordable coverage and understanding why it’s a need can be tough when you’re busy trying to build your business. That’s why insurance agencies like AutoHome Insurance Group exist!

If you’re a professional who is unsure of their insurance needs, has a policy but wants a better price, or wants to discuss the benefits of E&O insurance (or any of its variations), then you’ve come to the right place. At AHI, we help businesses that need affordable, comprehensive insurance protection. Give us a call to get started on insuring your professional business today.

Returning home after the storm & what to do

Posted on by AHI Group

In 2024 so far, the National Weather Service Kansas City has issued approximately 22 tornado warnings and about 136 severe thunderstorm warnings. Some storms on a smaller scale aren’t doing much beyond minor property damage, like taking down trees and destroying shrubbery. But larger storms, like the ones we saw in March and April featuring 70mph winds and half-dollar-sized hail, have the potential to wreak havoc on properties, cause city-wide power outages, and even oust families from their homes.

If you’ve recently experienced a storm in your area, or even been evacuated due to the looming threat of one, returning home can be a stressful endeavour, especially if your property has been damaged. Here at AHI Group, we can’t stop the damages from occurring, but we can give you some insights into next steps once the storm has passed over.

Safely re-entering your home

The anxiety of not knowing if your home is still standing after a severe storm is a burden many face during such trying times, especially if you were asked to evacuate due to an imminent threat in your area. It’s natural to feel a mixture of hope and fear as you return to assess the aftermath. While you may be eager to see your home and belongings, ensuring your safety and the safety of those with you is the most important thing during this time. Here’s a guide to help you safely re-enter your home following an evacuation due to a severe storm.

Wait for official clearance or permission from authorities

Do not return to your home until local authorities have deemed it safe. Listen to news updates, check local emergency services, and follow their guidance. They will inform you when it is safe to return and if there are any specific hazards to be aware of.

Check the area for hazards

As you approach your home, be alert for potential dangers such as downed power lines, broken gas lines, and unstable structures. Do not enter your property if you observe these hazards. Contact the appropriate utility companies or emergency services if you encounter them.

Assess the exterior of your home

Before entering, walk around the exterior of your home to inspect for visible damage. Look for issues like structural damage, broken windows, or compromised walls. If you notice significant damage, it may not be safe to enter. In such cases, consult a professional before proceeding.

Enter with caution

If the exterior appears stable, enter your home cautiously. Use a flashlight if power is out, and do not use open flames or lighters due to potential gas leaks. Be mindful of debris, slippery floors, and other hazards inside.

Check for structural integrity

Once inside, assess the structural integrity of your home. Look for cracks in the walls or ceilings, sagging floors, or other signs of instability. If you notice any of these issues, leave the premises immediately and contact a structural engineer or your local building department.

Inspect your utilities

Check for any signs of damage to your utilities. Smell for gas leaks, and if you suspect a leak, leave immediately and call the gas company. If you see damaged electrical wiring or water damage near electrical outlets, do not touch them and contact a professional. Turn off your main power and water supply if you know how and can do so safely.

Document all damages

Take photographs or videos of any damage for insurance purposes. Documenting the condition of your home can help with filing insurance claims and provide a record of the extent of the damage.

Initiate the clean-up process

If it is safe to do so, start the clean-up process. Wear protective gear such as gloves, masks, and sturdy shoes. Be cautious of mold, contaminated water, and other potential health hazards. Dispose of spoiled food and clean all surfaces that may have been contaminated by floodwaters or debris.

Notify your insurance company

Notify your insurance company as soon as possible to start the claims process. Provide them with the documentation of the damage and any necessary information. They can guide you through the next steps and help arrange for professional assessments and repairs.

Hire a professional

For significant damage or safety concerns, seek the help of professionals. Contractors, electricians, plumbers, and other specialists can safely assess and repair your home. Do not attempt to make major repairs yourself unless you are qualified to do so.

Look into state resources

Tornadoes can occur in any state, and in the states where they tend to be most common many governments have stepped up to provide resources or safety guides to their citizens. For example:

These are just a few samples of the resources that may be available. Check out these guides to see if they offer any specific information based on your state, or if they contain any information pertaining to any relief programs you may be eligible for in addition to your existing insurance policy.

Filing a claim with your insurance company

Home insurance covers homeowners for damages due to unexpected or inclement weather, like tornadoes and storms. Unless these events are specifically excluded from coverage, you can expect to have some protection under your home insurance policy to help rebuild your home. Even named perils policies will generally include storms.

However, coverage limits may vary. While you won’t be able to update anything after a loss, it’s a good idea to review your policy regularly to ensure you have sufficient protection for these kinds of events.

Filing a claim is relatively straightforward. Our advice? Do it as soon as possible. Once you’ve ensured everyone is safe, call your insurance company. Events like these will mean a lot of people will be calling in for claims, so get in as soon as you can to get your claim started and settled. Once your claim process has started, an adjuster will be assigned to your case who can help you through and answer any questions you might have during this time.

Will my insurance cover me if my belongings are stolen on vacation?

Posted on by AHI Group

Summer is prime time to go on vacation. The kids are out of school, and the adults have unused vacation hours lying around just waiting to be used. The only question that remains is this: where are you going to go? The world is your oyster.

On vacation, there’s so much to keep track of. Things can go missing if you’re not being careful, and that new Macbook Pro could end up being stolen from where you left it on your poolside chair when you went to the bathroom. Will your insurance cover you for instances like these, even if you’re thousands of miles away from home? The short answer: most of the time, yes! Here’s what you need to know.

Are items stolen on vacation covered?

Your home and renter’s insurance can both cover your belongings, from your appliances and clothing all the way to that Macbook Pro we mentioned earlier. Home and renter’s insurance both cover theft, which includes items stolen from your home as well as outside of it (like when you’re on vacation!)

However, as is the case with any policy, we recommend reviewing your policy’s specific terms and conditions to better understand the kind of protection you’re being offered. The majority of home and renter’s insurance policies cover contents on a “named perils” basis, which means that only the specific perils (so things like fire, flooding, theft, etc.) are covered on the policy. Theft is a common peril that’s usually included, but it may contain a deductible or maximum coverage limit. Be sure that you’re aware of these before making a claim.

If a deductible applies, you’ll need to pay your deductible before your insurance company covers the remaining amount. This may mean that if an item that was stolen was a value of $500, and your deductible was $500, it wouldn’t be worth making a claim. Make sure to read your policy and be aware of what’s covered, what isn’t, and what terms apply.

Does travel insurance cover stolen belongings?

Travel insurance isn’t exactly designed to cover belongings stolen on vacation. Rather, it’s intended for trip cancellations and interruptions – more for the overall cost of the trip than the items you brought with you. If your belongings were in suitcases and your baggage was lost or delayed, your trip insurance provider may cover you for the cost of buying replacement items.

But once those items are out and with you in the hotel or out-and-about on vacation, they technically fall under your tenant or home insurance. While travel insurance is a good option to secure your peace-of-mind on vacation, it won’t really cover your belongings if they’re stolen.

What to do if you’ve been robbed on vacation

Vacations are for relaxing and enjoying yourself, not for suddenly realizing you’ve lost that $300 investment you just made on a new headset. All is not lost; you do have insurance to help you out, but there’s also a few things you should do initially if you discover you’ve been robbed on vacation:

  • Ensure your safety and assess the situation. If someone broke into your hotel room or Airbnb to steal your belongings, then it’s important that you put your safety first and get out of that space in case you suspect the thief may still be around. Seek help if you suspect that you may be in danger or that the person who robbed you is still nearby.
  • Report the incident to the local authorities. If you’re in a hotel, you may want to ask to see if they have any security cameras if the theft occurred in a common area, as this could help to identify who stole your property. Obtain a copy of the police report to give to your insurer later.
  • Let your hotel or accommodation know about the incident. They may be able to support you.
  • If any of your cards were stolen, contact your bank and relevant companies to cancel these and prevent any unauthorized transactions before they can occur. If your passport or driver’s licenses were stolen, make sure to report these to the relevant authorities as well.
  • Make a list of what was stolen, including descriptions, values and receipts. Take photographs of any damage or evidence related to the robbery, such as broken locks or damaged luggage.
  • Notify your home or renter insurance provider as soon as possible. Provide them with the police report, documentation of the stolen items, and any other required information.
  • This process can be traumatic! If need be, reach out to family and friends for emotional support.
  • Take steps to prevent future incidents, such as reviewing your current security measures, safeguarding valuables, using hotel safes, and being cautious in unfamiliar areas.
  • Your insurance provider may assign someone to your case. This will be your point of contact. You can also refer back to your insurance agent for any additional, pressing questions you may have during this time.

    By following these steps, you can navigate the aftermath of a robbery on vacation, ensuring your safety, securing your financial interests, and taking steps to prevent future incidents.

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