Why Claims Get Denied

The insurance claims process is not like cashing in a winning lottery ticket. In most instances, claims for insurance policy benefits must be investigated and approved before they are paid out. In some cases, after an investigation is conducted, an insurance company may even deny the claim.

Claims are not denied on a whim, however. There are four major causes behind denied claims:

1. The event was considered an uncovered peril.

There are some incidents that an insurance policy simply won't cover. For example, if your property suffers damage due to an earthquake or flood, your home insurance policy may not cover the damage since earth movement and flood are not covered perils. If a claim were made in this instance it would be denied.

Likewise if you are in auto accident with an uninsured driver and you make a claim against your insurance policy, it will likely be denied unless you chose to carry uninsured motorist coverage.

2. The damages fall below the deductible.

An insurance deductible is the amount of money an insured agrees to pay out-of-pocket for any incidents that occur. If your claim is for financial damages that equal an amount which falls below your deductible, then the claim would be denied. That's why it's so important to monitor all of your deductibles and ensure that they are affordable.

3. The incident was planned.

Insurance policies are designed to compensate you for financial damages after an unexpected hazard occurs. But when the covered event was purposefully orchestrated in order to profit from an insurance policy or a claim amount is overstated in value, then the claim can be denied or approved for a lower amount. An insurance adjuster will help you to make claims that are reasonable. As far as purposeful incidents go, those are denied outright and your insurance policy may be terminated.

4. The event was excluded.

Depending on your specific set of risk factors, your insurance company may exclude certain events from your coverage. When an insurable incident occurs and the event is excluded in your policy then your claim will likely be denied.

You might think it's a good idea to simply explore your Michigan home insurance policies before making claims so that you don't make a claim that’s ultimately denied. But a better idea is to explore your insurance policies before you even have a claim so that you can identify any gaps in your coverage and work with our office on filling them. Call us at 734-421-9900 today to make sure that you’re properly insured.

Helpful Information and Tips About Car-Deer Crashes

Car-deer crashes are a year-round problem in Michigan.  During 2010, there were 55,867 reported car-deer crashes in this state alone. That translates into one car-deer crash every nine minutes.

These crashes are at least a $130 million a year problem.  The average car-deer crash causes about $2,100 in damage, usually to the front end, often leaving the vehicle undriveable.

Car-deer crashes are not only costly, they are deadly.  In 2010, 11 persons were killed in crashes with deer.  Another 1,433 were injured.  The most serious crashes occur when motorists swerve to avoid a deer and hit another vehicle or fixed object, such as a tree.

Several factors are combining to make the car-deer crash problem grow. Urban growth spreading into deer habitat and a deer population that is four times higher than 1970 combine to force deer into smaller areas and into contact with people, often in collisions with vehicles.  The deer herd in this state is estimated at about 1.7 million.

More than half of all car-deer crashes occur in southern lower Michigan.  In 2010, The five counties with the most vehicle-deer crashes were: Kent (1,976), Oakland (1,836), Jackson (1,779), Calhoun (1,618) and Lapeer (1,321).

Here are some tips to lessen your chances of being involved/injured in a car-deer crash:
-Stay aware, awake and sober.
-Remember car-deer crashes occur all year, but be especially alert in the spring and fall and at dusk and dawn.
-Pay attention to deer crossing and speed limit signs.  They are placed at known deer crossing areas to alert you to the possible presence of deer.
-Deer are herd animals and frequently travel in single file. If you see one whitetail cross the road, chances are there will be more.
-Remember to always wear a safety belt.  It is the best defense against injury in any roadway crash.

If a crash is unavoidable:
-Don't swerve.  Brake firmly, stay in your lane, hold onto the steering wheel and bring your vehicle to a controlled stop.
-Pull off the road.  Turn on your emergency flashers and be cautious of other traffic if you leave your vehicle.
-Don't attempt to remove a deer from the roadway, unless you are convinced it is dead.  An injured deer's sharp hooves can easily hurt you.
-Report the crash to the nearest police agency and your insurance agent.  Car-deer crashes are typically covered under the comprehensive portion of the insurance policy.
-Police or DNR conservation officers may issue you a permit if you want to keep the deer.

If you are on a motorcycle:
-Be alert for deer whenever they ride.  Deer-vehicle crashes happen in urban, suburban and rural areas.
-Slow down. Decreasing speed gives a motorcyclist more time to spot an animal and react.
-Cover the brakes to reduce reaction time.
-Use high beam headlights and additional driving light when possible.
I-f riding in a group, spread out riders in a staggered formation. If one rider hits a deer, this will lessen the chance that other riders will be involved.
-Wear protective gear at all times.

To check up on your insurance policies, contact the experienced professionals at Insurance Planning Service today at 800-220-5582 or use our online contact form.

Article source: IIM
Image source: MichiganScience.org

10 Tips to Help Prevent Identity Theft

As online communications and electronic commerce continue to grow, identity theft has reached new criminal proportions. Identity thieves now do much more than simply steal credit card numbers from discarded paper receipts; they use sophisticated computer technologies to illegally obtain your financial assets and can potentially ruin your credit history.

Identity thieves steal personal identifying information, such as names, addresses, date of birth, social security numbers, credit card numbers and driver’s license numbers, and use this personal information to fraudulently obtain cash and credit, goods, services and other property, including insurance policies.

Some of their criminal tactics include opening phony bank accounts or stealing from established ones, obtaining unauthorized credit cards and insurance policies, applying for car or house loans, and leasing apartments with false names.

Here are 10 tips that can help in preventing Identity Theft.

1. Shred or tear up personal financial documents before discarding them.

2. Do not print personal identifiers such as your social security number, date of birth or driver’s license number on your checks.

3. Use your social security number only when necessary.

4. Before revealing any information online, ensure the website is securely protected (a yellow padlock symbol will be present in the corner of your computer screen on secured websites).

5. Before revealing any information to another person, ask how it will be used.

6. Do not provide personal, financial or identifying information to an unknown telephone caller.

7. Pay attention to billing cycles. Identity thieves may reroute bills to another address to hide criminal activities.

8. Carefully review your monthly credit card statements, checking for any unauthorized use.

9. Obtain a copy of your credit report at least once a year to check for errors.

10. Minimize the number of cards and identifying information you carry, especially your social security card and passport.

It pays to be cautious with any information about yourself.  And, you should be aware that insurance coverage is available on most Michigan homeowners insurance policies and some business insurance. policies that can pay for expenses associated with recovering stolen identity.

The professionals at Insurance Planning Service, can let let you know what is available on your policy.  Call us today at 800.220.5582 or contact us on the web using our simple contact form.

Article source: National Insurance Crime Bureau
Image source: hitsjournal.net

9 Tips to Prevent Water Damage

Water in the wrong places in your home can create a real mess and result in very costly repairs.  We recommend these few tips to help avoid problems from water.

1. Roof. Repair or replace shingles around any area that allows water to penetrate the roof sheathing, particularly common around chimneys, plumbing vents, and attic vents.
2. Gutters.  Gutters should be cleaned a minimum of twice a year and downspouts should be angled to flow away from the house.
3. Windows. Check all the windows in the house and ensure that seals are tight.  Replace caulk as necessary to avoid water seepage.
4. Hot Water Heater.  Check the hot water heater for leaks and corrosion.  Rust is a sign of imminent tank failure.
5. Washing Machine Connections.  Inspect waching machine hoses and check for signs of brittleness or corrosion.  Experts recommend changing standard rubber hoses to stainless steel reinforced hoses which will reduce the likelihood of leaks and guarantee a longer life.
6. Grade Around the House.  Make certain to have a positive grade away from the house so that water doesn't puddle and run down the foundation wall.
7. Plumbing.  Check for leaking faucets, dripping or "sweating" pipes and clogged drains. In the kitchen, regularly examine the icemaker, dishwasher, sink and garbage disposal for leaks and replace these hoses every 5 years.  In the bathroom, inspect the shower stall for leaks and inspect for old or brittle caulking.  Check the sink and toilet.  Water stains around the toilet may be an indication of damage to the rim and tank seals.
8. Exterior Faucets.  Exterior faucets need to be winterized.
9. Main Shut-Off.  Make certain everyone in the family knows where the main shut-off is and how it works.

Doing all the right things to prevent water damage from happening doesn't guarantee that accidents won't still happen.  For those situations that couldn't be prevented, make sure your Michigan homeowners insurance policy is up to date.  The professionals at Insurance Planning Service are happy to help you review.  Call today at 800-220-5582 or contact us via the web. 

Image Source: olx.com

Five Insurance Mistakes to Avoid… And Still Save Money

We are all concerned with saving money and it is important to shop around when looking for insurance coverage. However, simply reducing your coverage or dropping important coverages altogether can leave you dangerously underinsured in the event of a disaster.
 
Following are the five biggest auto, home, flood and renters insurance mistakes consumers can make, along with suggestions to avert those pitfalls while still saving money:
 
1. Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.
 
A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.
 
2. Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.
 
A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.
 
3. Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas. Furthermore with the significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance.
 
A better way to save: Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Additional information on flood insurance can be found at www.FloodSmart.gov.
 
4. Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued—and those costs may be steep.
 
A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
 
5. Neglecting to buy renters insurance. A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.
 
A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.

Source:  Insurance Information Institute