Protecting Net Worth with Umbrella Insurance

America is a horribly litigious country. There are so many lawsuits. Each year over 15 million civil lawsuits are filed in the USA. Every business owner is almost guaranteed to be sued. In fact, the statistics say that almost all businesses have experienced some kind of lawsuit and many have more than one in progress.

Multi-Million Dollar Awards or Settlements

Sometimes the lawsuits are frivolous and have no merit. Other times they are extremely serious There may be plenty of liability exposure that might make a jury grant a multi-million dollar award if the lawsuit goes to trial.

The biggest awards make the headlines. On average only 4% of plaintiffs are awarded more than $1 million. However, the numbers are misleading because the vast majority of lawsuits are settled before they go to court. In many cases, the settlements are kept confidential. There is a good reason for this. If a business makes a big payout as a settlement, getting attention for this may attract more legal attacks. Umbrella insurance is a tool used to reduce this exposure for business owners.

How Much Protection is Needed?

The agents at Neff & Associates Insurance Services Inc, serving Pismo Beach, CA and the surrounding area, usually get this question from their clients, which is “How much umbrella insurance should I have?” The unfortunate answer is “How much do you have to lose?”

If the policy limits of commercial insurance are exceeded by a claim, then a business owner may become responsible for the extra amount that has no insurance coverage.

If umbrella insurance is in place for a covered risk, the umbrella insurance picks up where the underlying policy left off to handle a proven claim up to the limit of the umbrella policy. For some risks, umbrella insurance is the only coverage for those types of claims. Umbrella insurance may also help pay legal expenses, so ask your agent about this possibility.

The Net Worth Rule of Thumb

A person’s net worth is the total value of their assets minus anything that they owe. If the net worth is a positive number, this is the value of what is potentially at risk of being lost if adequate insurance is not in place.

For more peace of mind, have umbrella insurance with a limit that is at least as high as your net worth. In that way, for a covered claim, the insurance stands up first to protect you. You do not have to lose everything from a lawsuit if adequate protection is in place.

Conclusion

Lawsuits are inevitable. Business owners need the protection offered by umbrella insurance that is at least as much as their net worth. Many prefer to have double this amount. Contact your agent at Neff & Associates Insurance Services Inc in Pismo Beach, CA by calling 805-773-1710 to get a quote for umbrella insurance and any of your other insurance needs.

4 Things to Know About Motorcycle Insurance

Do you own a motorcycle? Our Neff & Associates Insurance Services Inc team has put together this quick guide about this type of coverage for drivers near Pismo Beach, CA. Here are four things to know about motorcycle insurance.

#1: Liability Insurance for Your Motorcycle is Required by Law

Similar to the requirements for a car, liability coverage for motorcycles is mandatory by law. The minimum coverage to stay legal $15,000 for each person injured in an accident, up to $30,000 per accident, and an additional $5,000 for property damage. If this sounds a little low, it really is. In fact, most agents advise their clients to boost this number up to a little higher figure for added protection.

#2: Comprehensive and Collision Coverage Are Still Optional

Another similarity between car insurance and motorcycle insurance is that comprehensive and collision coverage are still optional. But this doesn’t mean you should skip them! These policy options pay for any damage to your bike thanks to a collision with another object, theft, fire, or an act of nature. Plus, if you currently have a loan on your motorcycle, your lender might require you carry them.

#3: Don’t Forget About Medical Coverage

One more optional coverage to consider for your motorcycle insurance policy is medical payments. This portion of your policy helps handle any costs associated with hospital or doctor bills if you’re injured in a motorcycle accident. If the wreck is serious enough, it could also pay out a small death benefit to your family.

#4: Uninsured and Underinsured Drivers Are a Huge Problem in California

Sadly, thousands of California drivers are either uninsured or don’t have enough coverage if they’re involved in a serious accident. This means that if you’re seriously injured and it is someone else’s fault, your medical bills might not be covered. Having uninsured and underinsured coverage on your motorcycle insurance policy helps minimize this risk.

At Neff & Associates Insurance Services Inc, we are proud to help motorcycle owners around Pismo Beach, CA with all of their insurance needs. Please contact us today to schedule an appointment.

 

Do I Need Renters Insurance for a Short-term Rental?

Similar to homeowners, renter’s insurance protects you (the renter) in situations related to short-term leases. When you purchase a renters insurance policy in Pismo Beach, CA with the help of Neff & Associates Insurance Services Inc, you will be protected from any type of lawsuit or other legal action against you. This policy also typically covers any damages to the rental unit and your personal property. Similar to a homeowner, you need to reference the details of your policy and speak to the insurance provider to make sure you fully understand your coverage.

Getting the Coverage You Need

One of the most important factors you have to consider when purchasing short term rental insurance is the amount of coverage you actually need. For example, do you need a minimal amount of coverage, due to having minimal belonging and a low risk of issues? Or, would you feel more comfortable with a higher coverage amount? These are factors you should discuss with a reputable insurance agent as they can provide you with insight on how big or small of a policy you should purchase.

The Dangers of Subpar or No Coverage

If you don’t have enough coverage, then it may cost you in the long run. Take the time to get to know some of the options, along with the associated costs. This will help you determine the type and size of policy that you need. Be sure to be well-informed and ask your insurance agent plenty of questions.

If you need to purchase short-term renters insurance in Pismo Beach, CA, be sure to contact the professional team from Neff & Associates Insurance Services Inc to get started with the process of making this purchase right away.

 

3 Reasons You Need Condo Insurance Today

No matter where one may reside, purchasing condo insurance is important for condo owners of all kinds. Pismo Beach, CA is no different. An area known for its lovely wineries and beaches, even this luxurious location is not immune to the need for condo insurance. That said, let’s take a look at 3 reasons you need condo insurance today.

The Master Policy Won’t Protect You

Although you may be under the false assumption that you condo’s master policy is enough to keep you and your belongings protected, that couldn’t be further from the truth. Those policies typically only cover damages to common areas. So, if you want to keep you home and belongings protected, you need to purchase a policy of your own. 

Loss of Use

Since condos are typically connected in some form or fashion, making sure you are covered for loss of use is vital. This way, if your home becomes uninhabitable due to the actions of your neighbors, you and your property will be covered.

Liability Coverage

In addition to making sure you are covered against your neighbors’ mishaps, you will also want liability coverage to cover against your own. For instance, if someone becomes injured inside your condo, this will be your responsibility.

Overall, for residents of Pismo Beach, CA, consult with Neff & Associates Insurance Services Inc. for condo coverage and more. Simply call, email, or stop by the office to find out how one of their highly trained professionals can assist you. Don’t get caught without enough coverage, contact Neff & Associates Insurance Services Inc. so one of their highly trained professionals can create the perfect policy for your needs.

Does Flood Insurance Cover Damage To Interior Contents?

Flood insurance is an optional coverage unless you live in an area where there is a high likelihood of a flooding incident or in a neighborhood where it is required. Flood insurance is a government program that is designed to protect homeowners from specific flooding events to prevent large monetary losses.

Are Contents Covered?

Flood insurance is only mean to cover damage to the actual structure and will not cover any contents or personal belongings. Anyone who wants contents coverage will have to purchase it along with their home insurance. It is also important to not that flood insurance doesn’t cover all types of damage from water, so be sure to understand the terms and conditions and supplement any coverage with separate home insurance and riders on existing coverage to prevent gaps and losses. 

Working With A Reputable Agency

One of the best ways to take the guess work out of flood insurance is to work with an established and respected insurance company. Knowledgeable agents can guide the home owner during their search for a policy and help explain all of the terms and conditions so they are more informed and can make any additional insurance purchases to offer complete protection from a variety of threats from water related damage. Residents who live in or around the Pismo Beach, CA area should look into working with the Neff & Associates Insurance Services Inc. and discover how they can help make the process of obtaining flood insurance easier. 

Anyone who needs to purchase flood insurance should stop by or call the Neff & Associates Insurance Services Inc. office, serving the residents of Pismo Beach, CA,  and speak to an agent. They can provide answers and options to give homeowners peace of mind. 

Insuring Technological Advances in Business

The pace of business in 2019 demands technology capable of meeting the demands of consumers.

From small business to Fortune 100 enterprise, modern advances are available to support improving the way business is conducted. These advances require a fresh look at business insurance policies.

Perhaps the primary technology that is being implemented across numerous industries is drones. From crop sprayers in farming to traffic monitors to package delivery, drone technology is adaptable to meet the needs of many businesses.

That’s why it is so necessary to understand the options when it comes to insuring drones and other technologies. Neff & Associates Insurance Services Inc serves Pismo Beach, CA and will help you get the right insurance for your technology.

Film and still photo insurance is one of the unique coverages required to own and operate a drone in California. There are minimum basic requirements for photography and additional insurance requirements for drones.

Unmanned Aerial Systems (UAS) can be insured through " an aviation-specific insurance carrier (such as Global Aerospace)" or by adding UAS coverage to a general policy.

Another technology that will require additional expertise from insurers like Neff & Associates is the up-and-coming self-driving vehicles. Self-driving fleet will require not only standard automotive coverage but will have implications to all business owners.

According to a study conducted by the California Department of vehicles (DMV), there have been "concerns related to insurance a determining liability."
Autonomous vehicles will present new and unique challenges to business owners seeking to add efficiencies for their customers while keeping the right coverage to protect their assets.

As technological advances like drones and autonomous cars impact the way business is conducted, experts like Neff & Associates Insurance Services Inc, serving Pismo Beach, CA are here to help.

What Does “Minimum Coverage” Mean?

If you are an automobile owner in the US, you are required to carry auto insurance that meets at least minimum legal requirements. The "minimum" in "minimum coverage" is dictated by state law – which means one state’s minimum may not cut it in another state. Here in Pismo Beach, CA, the state minimum is $15k/$30k/$5k liability insurance. These numbers essentially mean that if you are involved in an accident and it is deemed your fault, your insurance will pay a maximum of $15,000 for bodily injury per person involved up to a maximum of $30,000 to total bodily injury and a maximum of $5,000 toward damages. Note that these numbers do not cover situations where there is a no-fault accident, or you find yourself involved in an accident with an uninsured motorist. In this situation, there may be no financial assistance or reimbursement at all for you.

Minimum automobile insurance coverage can sound appealing – save big money on your premiums so long as you don’t get into an accident. However, in the event the worst does happen, you can be stuck with substantial out-of-pocket costs if you’re rolling with minimum coverage. The minimum coverage may sound like a lot now, but a common road accident nowadays can rack up total costs of more than $400,000. That means you’ll have to pay whatever your insurance doesn’t pay.

Neff & Associates Insurance Services Inc recommends you carry at least $100,000 of bodily injury coverage per person and $300,000 maximum bodily injury coverage per accident. It does not cost much more to be confident in your insurance limits. Make sure you are adequately protected by contacting an agent at Neff & Associates Insurance Services Inc here in Pismo Beach, CA and discuss your options. There are a number of policies available to help you save money without risking your financial future with ongoing settlement payments.

What Does Umbrella Insurance Cover?

There are all kinds of insurance options for you and your home. You likely already have home owner’s insurance and you should also have auto insurance and other coverage that protects other additions, such as boating and RV insurance. However, you may have come across umbrella insurance and wonder what exactly it is. Well our team at Neff & Associates Insurance Services Inc can help you out with that. So whether you live in or around Pismo Beach, CA here is everything you need to do. 

Additional Liability Insurance

If someone slips and falls on your sidewalk, trips down your stairs, or is injured by your vehicle, you may be sued. When you are sued your regular insurance policy may cover a small portion of the legal fees, but chances are you’ll be paying much of this out of pocket. With umbrella insurance coverage you bring about added protection. With the additional liability coverage you’ll protect yourself and have the necessary financial support from the insurance company to pay for the legal fees and other expenses. 

Peace of Mind

Accidents happen. Whether out on the road or inside your home, there are times where you can’t prepare for an accident because these issues do come about. However, while you can’t always prepare for an accident you can always protect yourself in the event of one. With umbrella insurance coverage you’ll protect your home and all of your financial assets. 

Giving yourself extra liability protection for your property and other valuables is always a quality investment. So whether you live in or around Pismo Beach, CA the team at Neff & Associates Insurance Services Inc are here to help you out every step of the way. All you need to do is give the team a call. 

Getting Insurance Coverage to Handle Your Bed Bug Infestation

There’s nothing worse than moving into a new Pismo Beach, CA apartment and discovering bed bugs throughout your home. If you have a renter’s insurance policy from Neff & Associates Insurance Services Inc or any else, you need to understand what your policy will cover and what it won’t cover.

Does Renters Insurance Cover Bed Bugs?

Renters insurance typically covers the physical damage done to a home but does not cover pest infestation. That problem is true of bed bugs, which rarely cause real physical damage to a home. Even worse, the liability policy of most renters insurance won’t cover you if a visitor gets bitten by bed bugs.

There are exceptions to this fact, however, and some policies will cover bed bugs. It all depends on where you get your insurance and what the company is willing to handle. However, finding a policy that covers bed bugs may require looking to alternative policy sources, including expanded renters insurance policy options. 

What Policies Will Cover Bed Bugs?

All-risk insurance is a great choice for renters because it will cover just about everything that can happen to an apartment. For example, it will cover bed bug infestations and will pay for getting them treated and eliminated from an apartment and protect your home from a new infestation.

Make sure, though, that you read through a policy carefully to ensure that there are no exclusions listed for pests. Even some all-risk renters insurance policies have exclusions for certain issues and bed bugs and other types of pests often quality as an exclusion.

Learn More About Renters Insurance

While many types of Pismo Beach, CA renter’s insurance policies do not cover bed bugs, that doesn’t mean that policies aren’t available that do. So if you are curious about this type of policy and want to ensure you are fully covered, please contact Neff & Associates Insurance Services Inc to learn more.

Does CA Have Helmet Laws?

Spectacular ocean views call many riders to enjoy California coastal highways. If you’re a motorcyclist in Pismo Beach, CA, contact Neff & Associates Insurance Services Inc to find out the legal expectations of operating a motorcycle here. In the meantime, here are the rules for helmet laws in California.

The short answer is yes. Currently, California does require motorcycle helmets, and this law applies to all riders. In this regard, California law mimics 19 other states. Another 27 states protect minors by requiring them to wear helmets and just three states don’t require helmets.

Types of Helmet Required

California follows minimum safety standards set by the U.S. Department of Transportation for motorcycle helmets. Standard 218 of the Federal Motor Vehicle Safety code set forth the following requirements:

  • Thick Inner Liner at least one inch thick and made of polystyrene foam
  • Riveted Chin Straps are sturdy and attached to the helmet via solid rivets
  • Weight for the federal standards is a minimum of three pounds
  • Helmet designs shouldn’t protrude more than 0.2 inches from the shell

Does Not Wearing a Helmet Affect Insurance Eligibility?

Federal laws and state requirements supersede insurance eligibility in this regard. In the state of California, helmets are required to operate a motorcycle, so they are automatically required to be insured as a legal motorcyclist.

Penalties for Not Wearing a Helmet

State laws do not consider operating a motorcycle without a helmet an equipment offense, which would involve steeper penalties. Violations are met with fines of varying degrees, depending on the circumstances. 

California law is very specific when it comes to how to hear a helmet to avoid circumvention of wearing a helmet anyway other than the head, In this case, the law is absolute.

To obtain an insurance quote for your motorcycle insurance in Pismo Beach, CA, contact Neff & Associates Insurance Services Inc to set up an appointment for a quote.