Earthquake Insurance – do you need it?

The trail of destruction and suffering caused by earthquakes is unimaginable, as we have seen last year from Haiti and Chile. Locally, we’ve had two in just the past month that have really got people talking!  I’ve had several clients and friends ask me to write about this, so here we go…
Unfortunately, earthquakes are a very common phenomenon, occurring between 20,000 and 30,000 times each year (and on average measuring between 4.0 and 4.9 on the Richter scale).
In the US most homeowner, condo and rental insurance policies do not cover damage caused by earthquakes or other acts of nature and therefore, it is sensible to take out separate earthquake coverage so that you can rebuild and / or replace damaged household items should the need arise.
An insurance policy can’t prevent or stop it. All it can do is help you recover financially when the “Big One” everyone keeps talking about hits.
Earthquake coverage is designed much differently than the typical homeowner’s policy. First, it will have a “percentage” deductible. Typically set at between 10% and 20% of the value of the building insured.
For example, if your home is worth $200,000 your deductible would range between $20,000 and $40,000! This seems to be huge, and it is. Little rumblers should never trigger a claim.  But when “The Big One” hits you’ll be glad if you have the coverage. And upset at yourself (and maybe your agent) if you don’t!
The price of this coverage will vary, based on when and how your home or business building was built, the age of the building and the actual location. In addition, most Earthquake Policy carriers will require that your home or business be prepared.
If you rent your home, you may be able to add coverage to your renter’s policy without getting an Earthquake Policy. Some may only need a special rider to your policy, which includes earthquake and flood damage.
Ask your local agent for more information.
The important point is that you secure this valuable protection before the catastrophe occurs! You can’t buy coverage AFTER the ground starts shaking!
Wayne Lunday, LUTCF, CLU, ChFC is the owner of High Cascades Agency in Castle Rock.  Wayne has been an active member of NAIFA, the National Association of Insurance and Financial Advisors since becoming licensed in 1979.
High Cascades Agency is an independent agency offering Insurance through many different insurance companies. He can be reached at 360-274-6991 or toll-free at 866-514-3356.

What about Earthquakes?

The trail of destruction and suffering caused by earthquakes is unimaginable as we have seen recently from Haiti and Chile. I’ve had several clients and friends ask me to write about this, so here we go…

Unfortunately, earthquakes are a very common phenomenon, occurring between 20,000 and 30,000 times each year (and on average measuring between 4.0 and 4.9 on the Richter scale).
Read more

Life Insurance…good for what ails you!

September is known as “Life Insurance Awareness Month” and as such has all the blessings and support of The President, Congress, the various State Governors and the like. It’s nice to see if you are “in the business”, but frankly, most people would care less!
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Figuring out long-term care insurance

Long-Term Care Insurance policies are… Confusing… to say the least!

I’ve just finished my morning by visiting with several friends and clients about the virtues of owning a long-term care insurance plan. One gal, a neighbor, has been taking care of her elderly mom for more than five years now, and fully realizes the time commitment and effort it takes to watch over someone 24 hours a day, seven days a week… with rarely a break. It’s hard and heartbreaking at the same time.
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Family Caregivers. A good thing?

As I do my day-to-day duties of visiting with folks about their long-term care insurance needs, one topic seems to prevail. If I need it, where can I find some help?
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Is this the future of our Health Insurance?

I recently enjoyed an article from a colleague, Emeric McCleary, writing about one possible future for our National Health Insurance. As a fairly knowledgeable marketer of medical plans I was intrigued to say the least. I’ll be paraphrasing much of what Emeric shared with us…
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The “Icky” Stuff Comes in Threes…

Every now and then I get accused of rambling. This month I’ll attempt to stay on target, but there are a few different items to share, so it may seem like rambling, anyway!
The past few months have been very trying for everyone. Many with retirement funds in equity accounts have watched as their values plummet, their stock brokers become waiters while at the same time the Federal Government throws our money at “Big Business” to keep them from packing their bags and moving all their employees to India or something!
Then the SNOW! As if the economy isn’t enough of a problem! Those of us that have been around here for a few decades have experienced a few snowy days, but the last time I can remember the real deep stuff was January of 1980. It was about three feet deep here in Castle Rock… at least that’s how I remember it. Well, the weather forecasters said this past December’s snow was a “once in thirty years” event. I hope they’re right! Global Warming, Huh?
As if the deep snow wasn’t enough, the floods returned! In the floods of December of ’95 and February of ’96 the Sandy Bend area where I live saw lots of destruction. The water was not as high this time, but the homes damaged and the muck left over was just as icky.
Well, they say bad things come in threes. I certainly hope it stops now!
I have pointed out all the recent negative experiences to make a point.
LIFE ISN’T ALWAYS ROSY!
But, for the times it’s not there are ways to hedge your exposure. Flood Insurance can’t protect your home from a flood, but it sure comes in handy when you need to repair or rebuild it! When your roof cracks and the gutters get pulled from the eaves… as the snow piles up… your homeowner’s policy steps in and funds the repairs. Garages and barns crashed down all over the Northwest. Cars and boats were crushed. Most everyone has policies for these things.
The economic turmoil of the past year also provides a good reason to re-evaluate your financial plans. Many of us (myself included) felt confident in our investment portfolio, only to see it erase years’ of accumulation in a matter of a few days. I’m hopeful, but still not sure if it has bottomed-out. My wife thinks we’ll be working until we’re 85 now just to recoup the losses! Who knows? One way to protect against these market adjustments is to have some of your funds and income protected.
Own a fixed annuity. Issued by insurance companies, they are not driven by how Wall Street performs but simply pay a reasonable rate of return. They are not “sexy” as investments go, but I have not heard of a single fixed annuity that did not gain value as the stock-driven accounts floundered! Another solid idea is to purchase enough Disability Income Insurance, Life Insurance and Long-Term Care Insurance to protect and preserve your family’s way of life. There are lots of really great agents in our area so find one and spend a little time to do a complete review of your needs. If your situation calls for it, build a team of professionals to assure all the bases are covered. As you contemplate a gift for your loved-ones this Valentine’s Day, consider showing just how much you care by taking the right steps. Don’t leave your family’s future to chance. It’s liable to get snowed under if you do!
Wayne Lunday, LUTCF, CLU, ChFC is the owner of High Cascades Agency in Castle Rock. Wayne has been an active member of NAIFA, the National Association of Insurance and Financial Advisors since becoming licensed in 1979. High Cascades Agency is an independent agency offering Insurance through many different insurance companies. Wayne can be reached at 360-274-6991 or toll-free at 866-514-3356

It Doesn’t Have to Be This Way…

“At night I slip between the covers, careful not to disturb the stranger lying there… His eyes are closed, but I take no chances. I turn into him and begin to breathe in a slow, steady rhythm that mesmerizes him into a temporary slumber. Read more

HORSEPOWER to help lower your car insurance rates!

Boom! Boom! Boom! Each time the pilot in the jet powered dragster tickled the afterburner our ears smarted and our hearts raced as fast as the car! Finally, he let it all out…with a clap of thunder and a ball of smoke trailing behind the thirty-foot jet driven flames…he ripped down the runway…zero to over 400 miles-per-hour in just about 7 seconds! Oops! My mind wanders sometimes… Read more

Some More Thoughts on Long-Term Planning

When I first started thinking about what to share with you this month a couple of interesting ideas immediately popped into my thoughts. Read more