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New Job Stats Out: Are We Fully Employed?

“There are three kinds of lies: lies, damned lies, and statistics.”  

 

This iconic phrase became popular due to author and humorist Mark Twain, who attributed it to then current British Prime Minister Benjamin Disraeli. You might often think of that quote from Twain when you read the latest headlines.

 

The new jobs report on US employment numbers may have you seeking answers to that statement. Policymakers and economists are asking whether the US is really at full employment.

 

So Give Me Some Numbers

 

On May 4th, 2018, the Bureau of Labor Statistics reported that the US unemployment rate fell to 3.9 percent, which is the lowest percentage in more than 17 years. It sounds great, and is, but the definition is critical: the unemployment rate includes anyone who is older than 16 who is actively searching for work. That’s important, because embedded in its calculation is that students, retirees and others on government assistance who are not in the labor force are excluded from that calculation.

 

Let’s Talk Some History

So what does full employment mean, anyway? You would think full employment would mean a jobless rate of zero, but that has never occurred. The lowest documented unemployment rate happened in 1944: the unemployment rate was 1.2 percent. What was going on then that made it happen? World War II. Millions of men were drafted to fight overseas in Europe and the jobs they left were filled by women like Rosie the Riveter.

 

What is NAIRU, Anyway and Why Should I Care?

The government has an acronym for just about anything, including an acronym for the jobless rate. It’s called NAIRU, and stands for Non-Accelerating Inflation Rate of Unemployment. But NAIRU really doesn’t take into consideration the number of people who have given up looking for work or who are between jobs. Our jobless rate declares that we are in full employment. It essentially means that so few workers are available that companies need to begin raising wages in order to attract workers.

 

So right now, the Congressional Budget Office puts NAIRU at 4.8 percent which is slightly above the unemployment rate. What that means is that the US is considered to be at full employment, which means wages should be going up, but they really aren’t in most areas of the country..

So Let’s Head Deeper Into the Weeds

The Federal Reserve also takes into account the definition of full employment because it helps to set interest rates. The Fed tends to lower rates when unemployment is somewhat high and raise them when we are at full employment and wages are increased.

 

These latest reports say the US is technically at full employment, but paychecks are not catching up, so it remains to be seen if the Fed will continue to inch up interest rates.

So What Can You Expect From Us?

At Partners Direct Insurance, we know that what the Federal Reserve does impacts your bottom line. We also know the cost of providing insurance is on your mind if you are a business owner. That’s why at Partners Direct Insurance, we want to know you and your insurance needs inside-and-out, so we can tailor-make insurance policies based on what is best for you, your business and your employees. We take time to work with you to find the best solutions at the most competitive prices.Contact us and let us know how we can assist you!

 

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Natural Disasters Strike AIG’s Stock Price

We have all watched the stock market’s rise and fall in the past year. Overall, the Dow Jones Industrial Index is reaching new milestones, while taking a big dip now and then. One of the nation’s biggest insurance providers has been on that roller coaster ride in the last few weeks.

American International Group (AIG) has seen its stock ebb and flow on the DOW, and in the midst of the swings, a major investor pulled out. AIG’s shares tumbled in early May after the insurance heavy-hitter posted disappointing earnings. In fact, earnings were down 30 percent in adjusted income.

What Happened?

According to industry insiders and AIG’s reports, the company took a huge hit from paying out for the California mudslides, the severe weather that hammered a great deal of the eastern part of the country, and other natural disasters. In all, these cost AIG $376 million. So what did this do to the stock price of AIG? Analysts were forecasting $1.26 a share in profit, but when adjusted for the payouts, the overall adjusted profit was $963 million, or $1.04 a share. That’s down from $1.36 in the first quarter a year ago.

So Who Bailed on AIG?

Investor Carl Icahn has a net worth of $18.8 billion. He is considered one of Wall Street’s most successful investors and has been shaking up corporate boardrooms for decades. He is not without his own rocky financial roads, however. His investment fund, Icahn Capital Management, has suffered three straight years of losses. After President Trump took office, Icahn advised him on regulatory overhaul but he left the position due to potential conflicts of interest.

Carl Icahn decided to sell his stake in AIG and it was publicly announced on Monday, May 7th. It’s significant because he held around a 4.8% stake in the company, which made him the third-largest shareholder in AIG. According to Forbes, Icahn sold his shares when the stock was between $60 and $65, which occured in early February.

Carl Icahn is well-known for his hostile takeovers of businesses. In 2015 he began purchasing shares of AIG and then called for the resignation of the company’s CEO, Peter Hancock. He demanded the insurer be split into three separate companies. That didn’t happen. Instead, the board approved a turnaround plan, and Icahn decided to sell his shares.

What Does This Mean to You?

Partners Direct Insurance works with a wide variety of insurance providers. It is important to us that your specific, unique needs are met with insurance, whether it is property, casualty, health, commercial insurance needs, or employee benefits. We can tailor an insurance plan that perfectly takes care of the things most important to you. Contact us so we can sit down with you and together work up a plan that has your best interests at heart.

 

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How Many Likes: Facebook’s Founder in Front of Congress

Mr. Zuckerberg Goes to Washington

The 33-year old billionaire said mea culpa to members of the US House and Senate in mid-April, answering questions about Facebook and its privacy policies and whether or not it is safe for people to be on the mammoth site.

 

By the Numbers

Zuckerberg, the co-Founder and CEO of Facebook, faced off against Democrats and Republicans alike.

 

  • 2 Days
  • 10 Hours of Testimony
  • 600 Questions From Nearly 100 Lawmakers

 

It was a public grilling for a relatively young man who ditched his standard hoodie and jeans for a suit and tie to head to Capitol Hill. He was hauled before the committees following revelations that a political consulting firm, Cambridge Analytica meddled with the US election process, using Facebook’s social network to access private data from 87 million Facebook users. The lawmaker’s questions boiled down to a few main points:

  • Did the company do enough to keep Cambridge Analytica from harvesting FB user data
  • Does it intentionally censor conservative content
  • How much did Russians meddle with US elections

There were many questions Mr. Zuckerberg could not answer, saying 20 times that his team would get back with Congress on various issues that had been raised during the hearings. He admitted up front that his company had failed to protect privacy, and tried to outline the work Facebook employees were doing to avoid something like this happening in the future. He said several steps had already been taken:

  • FB cut off advertisers’ access to info from 3rd party data brokers.
  • FB outlined ways for people to download and review the data the company has on them already.

Speaking of that, a CNN Money reporter went through the steps to find out what information Facebook had on her. You can use these steps to find out what Facebook knows about you, too.

There were some decidedly tense moments in the 10 hours of hearings, including when Sen. Dick Durbin (D-Illinois), asked Zuckerberg if he would feel comfortable sharing with the group the name of the hotel he stayed in Monday night, or whether he’d be willing to share the names of people he has messaged this week.

“No, I would probably not choose to do that publicly here,” Zuckerberg said. Sen. Durbin replied “I think that may be what this is all about. Your right to privacy. The limits of your right to privacy, and how much you give away in modern America in the name of  “connecting people around the world.”

Mr. Zuckerberg was not averse to new regulation on this rapidly changing media platform. Many lawmakers are ready to urge calls for regulation of these internet giants, saying there is enough data and concern to change the way technology companies should handle your private data.

They may end up looking to Europe for guidance. Lawmakers in the EU are already cracking down on Facebook, which has forced the company to stop using facial recognition technology and cut back on some of its internet-tracking practices.

In a tense exchange, Rep. Anna Eshoo (D-Calif.) repeatedly asked Zuckerberg why Facebook had failed to explain its privacy data collection practices in “clear and pedestrian language.”  The House panel’s chairman, Rep. Greg Walden (R-Ore.) called Facebook an “American success story,” but added “While Facebook has certainly grown, I worry it has not matured. I think it is time to ask whether Facebook may have moved too fast and broken too many things.”

Senator Catherine Cortez Masto (D-Nev.) summed up the feelings of many of both committees. “Mr. Zuckerberg, you’ve said you’re sorry. I appreciate the apologies. But please stop apologizing and make the change.”

Facebook users have had their sense of security taken away following news of Cambridge Analytica. So far, lawmakers are not convinced there is enough insurance in Facebook’s moves to protect users’ private data. In our complicated world, there is need for security and privacy. At Partner’s Direct Insurance, we take your security very seriously and want to make sure you are protected with the right insurance: everything from homeowners to renters to life, umbrella and marine insurance. We know how to keep you safe, so contact us in order to partner with you!

 

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Can You Buy a House With Bitcoin?

Shutterstock: Courtesy Wit Olszewski

What’s Bitcoin, Anyway?

Have you heard of bitcoin? Do you know what it is, and whether or not you should use it? If so, you are not alone.

Bitcoin is a new cryptocurrency or digital money that made its debut in 2009 by…who knows? The originator of the bitcoin uses the alias Satoshi Nakamoto. Bitcoin bypasses a typical bank transaction, and you can use bitcoins to book hotels, shop for furniture, or buy household goods. In fact, right now more than 100,000 merchants accept bitcoin as a legitimate form of currency.

Compared to traditional currency, with bitcoin there are no third parties, authorities or central government that regulates transactions. It is an attractive currency if you are doing an international transaction, as payments are easy and cheap, with no credit card or bank fees. Bitcoin users like that they can have electronic transfers or buy goods and do so anonymously, without government regulation. In other words, there is no paper trail to trace the person involved in the transaction.

Some investors have bought bitcoin, thinking it will rise in value. It has had a rocky road. It hit its peak on late 2017, but has since been on a roller coaster ride. Bitcoin is used most frequently in China and South Korea, but those countries seem to be leaning toward tightening the rules that concern bitcoin trading.

Can I Buy a Home using Bitcoin?

Still, bitcoin for consumer use is gaining in popularity. Can you finance a home using bitcoin? Maybe. If the home seller is comfortable using bitcoin as currency, then there are typically no issues. It is an extremely new process. The first home was sold in Texas via bitcoin in 2017. The challenge was to figure out which company would do an exchange that large. The transaction was completed with BitPay, which turned the bitcoin into dollars. If you are interested in bitcoin, there are sites like Open Listings which make it easy to find properties you can purchase with bitcoin.

However, the idea of using virtual currency to purchase real estate is very new, and there is still a great deal of nervousness in the industry. Traditional lenders want reliability and stability in a home buyer’s ability to pay, and bitcoin is a new player in the financial market, with a recent volatile history, so lenders are typically hesitant about this more speculative form of payment. Even if you can find a seller who is willing to deal with you in bitcoin, you might not be able to find title insurance and escrow companies that are as well.

Bottom line: bitcoin has not been widely adapted as cryptocurrency for a home purchase. But technology, and the use of it, grows quickly, so this may change in lenders’ perceptions of bitcoin in the coming months and years. If you find a lender who has had positive experiences with bitcoin you may have success. Most lenders and agents continue to be skeptical of the cryptocurrency.

At Partners Direct Insurance, we pride ourselves on helping each client with his/her individual insurance needs and finding solutions that work. Contact us to help you!

 

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How Home Insurance Can Improve Your Way of Life

When was the last morning you woke up, knowing you had a great night’s sleep? It gives you energy, and gets you ready for the day-at-hand. None of us knows what the day will bring, but at Partners Direct Insurance, our team wants to be sure you can take “home insurance” off your late-night worry list.

 

It’s true all around the country, but especially in Southern California: your home is one of the largest financial investments you will ever make. But your home is vulnerable: we’ve seen that first-hand in the last few months with the voracious wildfires. We know earthquakes are always a possibility, but what about a freak storm, or a break-in? Are you covered if the unforeseen occurs?

 

You know that if you drive a car, by law you have to have auto insurance. But the same is not true of your home. If you are not insured, or underinsured, things that happen on your property will have to be paid straight out of your pocket. Now that will cause some sleepless nights!

 

There’s No Place Like Home

 

If you are buying a home and signing for a mortgage, often you are required to have home insurance. It just makes sense: the lender wants to be protected from the unexpected. So say you already have homeowners insurance. Are you adequately protected? Some new homebuyers get the minimal policy and are surprised when they talk with their agent and their new emergency isn’t totally covered. It’s important to get replacement coverage, so that items you need to buy now are priced at what they will cost now to replace, not when you originally purchased them.

 

Let’s Get Personal

So take out a calculator, and figure out how much it would cost you to replace:

  • All electronics, including desktops, laptops, phones, and TV’s
  • Appliances
  • Clothing
  • Furniture

If you don’t have homeowners insurance, this hits you squarely in the pocketbook. The great thing about this type of home insurance is that it even covers you if your stuff is stolen when you are not at home: in your car, in storage, on vacation, in the locker at your gym.

 

Why Did I Buy That Trampoline, Anyway?

A good homeowners policy also covers you for liability. Say your kids begged you for a trampoline, and a friend broke an arm while using it. His family comes to you for medical bills. With liability coverage on your homeowners policy, you can take care of slips, falls and breaks.

 

The really amazing thing about homeowners coverage is that liability can also extend past your home, including accidents away from your house. It really is peace of mind.

 

Looking For a Place to Stay

Let’s talk more about the devastating wildfires that swept through Southern California. If your home was affected, and you had to evacuate, not to return for several weeks, what if you had no homeowners insurance? Unless you have some kind relatives nearby, that hotel bill would be astronomic. If you have a policy in place, temporary living costs are covered while construction workers repair your home. The policy can cover not only living space, but laundry, storage, even cable or satellite charges so you can stay connected and working while dealing with a disaster.

 

So What’s It Going to Cost Me?

It depends on several factors.

 

  • How old is your home: older homes take more money to repair
  • How big is your home: the bigger the square footage, the more expensive to fix
  • Location of your home: are you close to a fire station? Or in a higher crime neighborhood?
  • Do you have a pool?
  • Do you have a burglar alarm system, smoke detectors, fire extinguishers, sprinkler systems?
  • Do you smoke? Smokers bring higher premiums because of the increased risk of fire
  • Have you submitted multiple claims in years past?

 

At Partners Direct Insurance, we take your well-being seriously, and want to be sure to give you the right insurance coverage for your individual needs, so you can sleep better…every night. Contact us for a quote today!

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Why It’s Important to Review Policies Every Year

You are responsible. Everyone knows that. You get your oil changed on a regular basis. You see your dentist once or twice a year for teeth cleaning. You even schedule a yearly checkup with your doctor. Your financial planner sees you once a year. You are amazing.

 

Not to burst the bubble, but when was the last time you had a yearly checkup with your insurance agent?

Why Do I Need to do That?

Changes. It is as simple as that. It can be changes in your family, changes in your home, or changes in insurance policies that could affect you. Have you:

 

  • Changed your address?
  • Added a driver?
  • Added a vehicle?
  • Added new people to your home?
  • Added on to your home?
  • Bought new speakers or other upgrades to your car or truck?

 

This is Step One, and the most important reason to meet with your insurance agent: to talk about any changes in your family’s life. If, for example, you have added on an outside kitchen complete with fire pit, and if something were to happen there, you might not be covered under your current policy. Your old policy would cover the original dwelling, but not the addition, unless you talk with your agent about the changes. Generally, adding on to your initial homeowners policy costs you very little, but keeps you totally covered.

 

Also, if you have added a new driver in your family but you have not updated your policy, and something happens, that can be seen as leaving out critical insurance information, which can have extremely negative consequences for you and your family moving forward. It is so important to keep your insurance agent in the loop as your family situation changes through the years.

 

Show Me the Money!

You need to meet with your insurance agent to make sure you are taking advantage of all discounts to which you may be entitled. For example, your rate could go down if:

 

  • You got married
  • A child on the policy recently graduated
  • Your child is now in college and no longer drives a vehicle
  • You purchased a renter’s insurance policy for your child, which can cut your auto premium

 

Where’s My Magnifying Glass?

Another reason to meet with your insurance agent is to go over your premium with a fine-tooth comb. Has your premium increased? If so, why? There are a lot of reasons why premiums can rise, and some make sense. You may have had tickets or an accident. Sometimes, premiums will rise and you haven’t had a ticket or accident or claim on your record. If, like so many people, you have the premiums automatically deducted from your checking account, you may not even notice the increase. It is good to have one-on-one time with your insurance agent to get clarification on any changes. Our team at Partners Direct Insurance pride ourselves on getting you the best insurance coverage for your individual needs. We consider our clients part of our extended family.  We know that providing you with a unique policy means giving you service that is personal, thorough and transparent.

 

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6 Reasons Why Protecting Your Business is Your Best Investment

Your business is like your baby. You spend months, even years nurturing this fledgling idea into a healthy, thriving enterprise. Maybe you are early in that journey and are just starting out with an exciting idea, a plan and a lot of focused energy. At Partners Direct Insurance, our focused team offers insurance ideas that uniquely fit your business. We understand that a good business team is always looking hard at the bottom line, but sometimes that can leave them vulnerable to events outside of their control. That’s where a comprehensive insurance plan, tailored for you can make all the difference. Here are 6 reasons why protecting your business is your best investment. 

 

As you know, when it comes to insurance, it is all about managing risk. What could potentially happen that could devastate your business and your future? What is the smartest way to keep your business (and your family) covered in case of something unforeseen? Partners Direct has relationships with some of the finest consultants and vendors in the market to get you the quick, efficient help you need should the unexpected occur and you need to use your policy to protect your business.

 

Each business, and each business owner(s) are unique. That’s why we don’t believe in a ‘one size fits all’ kind of approach. But here are some general things to consider as you move forward with your ‘baby.’

 

  1. General Liability Insurance–this is Step One. You simply must have insurance to protect your business from from liability, should a person claim bodily injury while on your property. It protects you from staggering medical costs, property damage, personal injury and data loss. It is essential if you are your employees:
  • Visit a client’s workplace, or they come to see you at your place of business
  • Represent your client’s business in the public
  • Operate a business without owning or renting any property
  • Have access to a client’s equipment, like a computer network
  • Need a General Liability policy in order to qualify for contracts

 

2) Business Property Insurance–this protects you from damage to a property and covers the cost of replacing the equipment inside. You would want to check with our team about Business Property Insurance if you:

  • Own the building
  • Rent a space
  • Have costly business equipment like computers or furniture
  • Work with large amounts of data
  • Are concerned with employees who could steal client’s property or steal from your business

 

3) Professional Liability Insurance–This policy protects you in the case a client or customer would charge you with negligence or injury for the services your company provides. As you know, even if you are completely not at fault, a lot of money can be tied up with attorney fees and court costs. You should talk with us about Professional Liability if you:

  • Have a consulting firm, like a marketing, architectural or counseling firm
  • Provide professional services to your clients
  • Need to enter contracts as part of doing business

 

4) Workers Compensation Insurance–In the state of California, employers are required by law to have workers’ compensation insurance, regardless of the number of employees. If your employee is hurt on the job, or becomes sick as a result of the workplace, you are required to pay workers’ comp benefits. These benefits include medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits and a return-to-work supplement, and death benefits.

 

5) Commercial Auto Insurance–this policy protects your business vehicle just like your personal car insurance protects you. If an employee drives unsafely, or is hit by an errant driver, or skids off the road during a rainstorm, you are covered. Each business is unique, and that’s why we like to meet with you to discuss your individual needs so we can tailor-make the policy that makes the most sense for you.

 

6) Cyber Insurance–as you can imagine, this is a relatively new type of insurance coverage. There are two ways a business can be vulnerable in the cyber world. First of all, if its data is hacked and the hackers are demanding ransom to give it back. Imagine the disruption and cost to your business to be virtually cut off while the problem is being rectified. The other type of coverage may be needed if you experience a cyber attack, and someone steals your clients’ data and it is used to compromise their identities. You would want to consider this type of insurance if you:

  • Have a website that is accessed by the public
  • Do business online
  • Have your customers data stored on your website
  • Have your customers data managed by a 3rd party vendor

 

Our Partners Direct Insurance team prides itself on tailoring solutions to fit your business needs. Call us so we can consult with you on the best ways to keep you covered!

 

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How Umbrella Insurance Plans Save You More

What is Umbrella Insurance Anyway?

So it is pouring down rain. You are wearing your suede jacket and not happy about the unforeseen weather change. Thankfully you have your umbrella with you: reach in, grab it, and whew! Problem solved! Umbrella Insurance is just like that. You aren’t ruining your suede jacket, but you are protecting your hard-earned savings from life’s accidents. An umbrella liability policy covers much more than your auto and home policies, and can make a long-term difference in your financial health.

 

Why Do I Need It?

No one likes insurance until they need it, then they are grateful to have it. The umbrella protects your financial assets from an event you didn’t see coming. Say you were involved in a car accident, and the court decided you were responsible for damages and bodily injuries to the other party. They decide to file a lawsuit against you: if you don’t have an umbrella policy, you are legally responsible for the damages, and that can deplete your savings in a hurry.

 

What Does It Cover?

It covers the extras that your basic coverage does not. In the case of the car accident, it will cover the extra expenses of the others involved beyond what your normal policy does. It can also cover you for legal fees, false arrest, libel and slander.

 

Okay, You Have My Attention: How Does It Work?

Let’s go back to the car accident. The court found you liable for the wreck, and there are people who are hurt and a car that is totalled. You are sued and need to pay for your legal defense. Umbrella policies pay once your basic liability limits have been reached.

 

So Assets Matter!

What are your financial assets? Your house certainly. Add in your cars, your investment and retirement accounts, and don’t forget your checking and savings accounts. If someone decides to sue you for a lot of money and you don’t have the policies in place to take care of what the court says you owe, your assets can be liquidated to pay your debts. Imagine that one bad mistake, one traffic accident, can ruin you financially because you did not have an umbrella plan in place.

 

Got It. How Much Does It Cost?

Our team at Partners Direct Insurance have a mission of making sure we look at each client’s needs individually, in order to design a custom insurance package that works. We want to be sure that you have the coverage you need, without overpaying. Getting an umbrella policy for $1 million worth of coverage can be very affordable. Our team can help design a plan that works for you.

 

How Much Do I Need?

That depends. Think about a few things, and talk with our partners to get the best deal for you.

 

  • How risky are you? Do you skydive? Race sports cars?
  • How much are your assets worth? The more property, stocks, retirement funds to protect, the higher the umbrella policy to consider
  • What would it cost you to lose your future income? If it would be devastating, you need more coverage.

 

Can I Write It Off My Taxes?

Generally speaking, personal umbrella policies are not tax deductible. However, if you own a business, an umbrella policy can mean your premium is tax deductible. This is another reason why it is important to have our team counsel you on what works best for your individual needs.

 

Let’s Talk!

At Partners Direct Insurance, we partner with our clients to make sure they have the best umbrella policy for their particular needs. Call us and we can discuss what makes the most sense for you, to keep you covered!

 

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Helpful Insurance Tips for the New Year

Auld Lang Syne

It is now one second past midnight on January 1st, and people in your time zone are celebrating the New Year. Why do we attach so much significance to the changing of the calendar? We can thank Julius Caesar for New Year’s Eve parties, when he changed the calendar and everyone took notice. This unique time change gives us the opportunity to celebrate and reflect. We want to take stock of what went well in 2017, and make adjustments to bring forth a better 2018, and that includes insurance tips for the new year.

 

We want to lose weight. We want to make more money. We want to feel more spiritually fulfilled. We want to find the job we truly love. We want more control over our lives. Whatever ‘it’ is for you, one of the things we all should do at the start of the new year is to take stock of our insurance, and make sure we have the coverage we need to protect our families. The team at Partners Direct Insurance, take seriously the task of making sure you have the right insurance for your home, auto and business needs.

 

Most people find an insurance policy that works for them, and then they mentally check off that box and never think of it the rest of the year. But we think it is important to re-evaluate your policies and coverage to make sure it is the best fit for you. That’s why our company is dedicated to working with your individual needs to find the best fit for you.

 

So take the mental dust off those policies, and consider a few things:

 

Risk managers are essential to your family’s well-being. Yes, they will tell you to think about what could possibly go wrong in 2018. That’s their job. It’s important to listen so you can find the best coverage for your individual needs.

 

There’s No Place Like Home

For example, if your home was destroyed by a wildfire, what would it take financially to get you back on your feet? If you leave for a weekend and a water leak springs from your kitchen sink and half of your home is flooded, how well are you covered? It’s important to figure out what it would actually cost you to rebuild, repair or replace the structure with brand new materials of comparable quality. Does your policy include coverage that provides for your family if you need to relocate? Those costs can add up very quickly following a home emergency.

 

On the Road Again

If your car is totalled by a driver with no insurance, how soon can you get back on 4 wheels? One of the most common insurance pitfalls for drivers is being uninsured and not understanding the coverage they have already purchased. What if you are injured? Will your insurance policy pay for medical needs? What if you are at fault and others are hurt? Will your policy cover their medical needs? It’s estimated that 40 percent of drivers on the roads aren’t adequately covered by their insurance policies for bodily injury. One mistake on the road can ruin you financially for years to come. How much car insurance do you need? Talk with our team to discuss your individual needs: sometimes it makes sense to increase your deductible. If you can save $200 by assuming an additional $500 worth of risk, it might be worth it.

 

Now Let’s Get Down to Business

If you run a business out of your home, you’ll want to check on your insurance options. If you store inventory at your home, or have customers coming in, you need to consider your liability in the case of theft, or if a customer would slip and fall. It just makes sense to protect yourself from the worst case scenarios.

 

We agree: not pleasant topics, but these insurance tips for the new year are essential ones to consider when talking with our team. At Partners Direct Insurance, we love our clients and make sure we match the best policy to their needs. Call us and let’s celebrate 2018!

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How Umbrella Insurance Plans Save You More

What is Umbrella Insurance Anyway?

Imagine it’s pouring down rain. You are wearing your suede jacket and not happy about the unforeseen weather change. Thankfully you have your umbrella with you: reach in, grab it, and whew! Problem solved! Umbrella Insurance is just like that. You aren’t ruining your suede jacket, but you are protecting your hard-earned savings from life’s accidents. An umbrella liability policy covers much more than your auto and home policies, and can make a long-term difference in your financial health.

Why Do I Need It?

No one likes insurance until they need it; then, they are grateful to have it. The umbrella protects your financial assets from an event you didn’t see coming. Say you were involved in a car accident, and the court decided you were responsible for damages and bodily injuries to the other party. If they were to file a lawsuit against you and you didn’t have an umbrella policy, you would be legally responsible for the damages and that can deplete your savings in a hurry.

What Does It Cover?

It covers the extras that your basic coverage does not. In the case of the car accident, it will cover the extra expenses of the others involved beyond what your normal policy does. It can also cover you for legal fees, false arrest, libel and slander.

Okay, You Have My Attention: How Does It Work?

Let’s go back to the car accident. The court found you liable for the wreck, and there are people who are hurt and a car that is totalled. You are sued and need to pay for your legal defense. Umbrella policies pay once your basic liability limits have been reached.

So Assets Matter!

What are your financial assets? Your house certainly. Add your cars, your investment and retirement accounts, and don’t forget your checking and savings accounts. If someone decides to sue you for a lot of money and you don’t have the policies in place to take care of what the court says you owe, your assets can be liquidated to pay your debts. Imagine that one bad mistake, one traffic accident, can ruin you financially because you did not have an umbrella plan in place.

Got It. How Much Does It Cost?

Our team at Partners Direct Insurance have a mission of making sure we look at each client’s needs individually, in order to design a custom insurance package that works. We want to be sure that you have the coverage you need, without overpaying. Getting an umbrella policy for $1 million worth of coverage can be very affordable. Our team can help design a plan that works for you.

How Much Do I Need?

That depends. Think about a few things, and talk with our partners to get the best deal for you.

  • How risky are you? Do you skydive? Race sports cars?
  • How much are your assets worth? The more property, stocks, and retirement funds to protect, the higher the umbrella policy to consider.
  • What would it cost you to lose your future income? If it would be devastating, you need more coverage.

Can I Write It Off My Taxes?

Generally speaking, personal umbrella policies are not tax deductible. However, if you own a business, an umbrella policy can mean your premium is tax deductible. This is another reason why it is important to have our team counsel you on what works best for your individual needs.

Let’s Talk!

At Partners Direct Insurance, we partner with our clients to make sure they have the best umbrella policy for their particular needs. Call us and we can discuss what makes the most sense for you, to keep you covered!

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