Analyze how much Life Insurance Coverage I need

Life Insurance Tools

Here are two spreadsheets that will help you to determine how much coverage you need.

File 1

File 2

Here is a link to a Life Insurance Calculator

here are a few Widgets to help determine the amount of coverage needed.

How long will my life Insurance proceeds last?

Earnings over a lifetime

Special Form Insurance Policies Don’t Actually Cover “All-Risks”

Basic, Broad and Special Form Insurance Policiesread your insurance policy

Often when purchasing an insurance policy the insured has a choice between three different types of coverage. This usually comes up in homeowner’s, renters and commercial property policies. The three different types are referred to as basic, broad or special form insurance. The coverage increases from basic to special form insurance and special form insurance is often referred to as an “all risk” insurance policy.

Basic Form Insurance Policy

The basic form policy is usually just the bare bones in insurance and for homeowners policies only includes coverage or certain named perils. This means that if the loss is caused by a peril that is not specifically named in the policy there is no coverage. The perils named in the basic form Homeowner’s policies include:
• Fire
• Lightning
• Windstorm or Hail
• Explosion
• Smoke
• Vandalism
• Aircraft or Vehicle Collision
• Riot or Civil Commotion
• Sinkhole Collapse
• Volcanic Activity

Broad Form Insurance Policy

The next policy that expands upon the basic form is the broad form policy which is still a named peril policy but is “broader” than the basic form and thus names more perils for which there will be coverage. This is again a named peril policy such that if the peril is not named and a loss occurrs there is no coverage for the loss. In homowner’s policies the named perils include the basic form list of perils above and then add the following:
• Burglary/Break-in damage
• Falling Objects (like tree limbs)
• Weight of Ice and Snow
• Freezing of Plumbing
• Accidental Water Damage
• Artificially Generated Electricity

Special Form Insurance Policy

The confusion arises with the third type of policy known as the special form which is often erroneously referred to as an “all risk” policy. This is not a named perils policy, but covers all perils except that which is excluded. It is the “that which is excluded” language that generally confuses the insured. Sometimes the policy owner reads that he has purchased an “all risks” policy and doesn’t read any further. On a special form the named perils are that which are excluded. So if the excluded peril causes the damage, then there is no coveraage. So in a homeowners policy that which is excluded is the following:
• Ordinance of Law
• Earthquake
• Flood
• Power Failure
• Neglect
• War
• Nuclear Hazard
• Intentional Acts

Not “all risks” are covered in a special form insurance policy

It is generally well known by most insureds that earthquake and flood are excluded from homeowners and only covered by special endorsement or a separate policy. In fact earthquake in California was only written by the state’s California Earthquake Authority up until just recently when two private insurers have now entered the fray of earthquake coverage.

It is important to remember however, that an “all risk” policy does not exactly cover everything and in fact most insurers will not use the term “all risks” because of the confusion that title causes.  Remember, if you are confused as to your coverage, you need to talk to your agent or broker who should be able to explain your coverage. Certainly you can always call First Capital Insurance Services at (818) 451-3878 and they will find the insurance you need and carefully explain the  coverage you are getting.

Personal Lines of Insurance

Protect Your Home?

Protect Your Home?

Personal insurance lines help protect individuals from potential losses they couldn’t afford to cover on their own and make it possible to handle the risks involved with driving a care and owning a home each of which could cause financial ruin if certain risks were actually realized. Personal lines insurance make up about half of the overall insurance market.

Personal lines include products such as:

  • homeowners insurance
  • flood insurance
  • earthquake insurance
  • renters insurance
  • automobile insurance
  • RV or boat
  • life insurance
  • disability insurance
  • umbrella insurance
  • health insurance.

These products protect individuals and families against potentially significant financial losses caused by fire, theft, natural disasters, death, accidents, lawsuits and illness.

Some types of personal insurance are required by law, such as automobile liability insurance and,health insurance under the Affordable Care Act. Other insurance, such as comprehensive and collision automobile insurance and homeowners insurance, can be required by lenders when property is used as loan collateral.

Generally the amount of insurance coverage an individual will purchase depends on how much they are willing to pay in premiums. Of course higher premiums provide more coverage. However, individuals may be unable to purchase a policy for a particular risk if they pose too great of a risk to the insurance company. For example, someone with a history of cancer might not be able to purchase life insurance. In other cases, high-risk individuals can still purchase insurance, but will have to pay above-average premiums to compensate the insurer for the extra risk. An example is high-risk auto insurance for drivers who have been at fault in multiple accidents over a short time.

Personal lines won’t cover every risk an individual might face, but they can dramatically reduce the dollar amount of potential losses. Individuals can usually tailor each policy’s coverage and deductibles to strike the right balance between the amount of coverage and the cost of premiums. A good insurance agent can review the potential risks an individual faces and recommend appropriate coverage.