Garcia Insurance

Ride like you are invisible

David — Mon, 14 May 2012 16:05:54 +0000

The first advice given to me when I started riding my motorcycle was, “Ride like you are invisible.” I thought it was worthless advice. I wanted people to see me when I ride. I wanted to ride in the most visible way possible. I wanted attention drawn to myself. Visibility meant the chances of getting killed were greatly reduced. After all, most motorcycle accidents happened because distracted, good intentioned four wheeled motorists just didn’t see the rider.

That’s when it hit me, distracted, four wheeled motorists just don’t see riders. We are invisible. No matter how visible we try to make ourselves with colorful jackets and bikes, reflective helmets, blinking lights, and even super loud tail pipes, motorcycles go unnoticed to those not trying to notice them. We are invisible. Ride like you are invisible because it puts you in a completely defensive position.

May is Motorcycle Awareness month.

As the weather continues to warm and you find yourself on the road more and more, please be safe. And you four wheeled motorists out there keep an eye out for us!! And don’t forget Garcia Insurance Services can insure your motorcycle!

A Cent that makes Scents

Erik — Mon, 16 Apr 2012 13:17:30 +0000

I can still smell it…It haunts me. Never again do I want to be subjected to the smell of rotting food in my freezer after returning home from evacuation.

Here is tip that was passed to me:
To prepare your freezer before leaving for a hurricane or severe weather, put all of your freezer items into black plastic bags. Tie the bags and place them back into the freezer. Put a Dixie cup of water in the freezer, let it freeze and then put a penny on top of it.

When you return, if the penny has dropped to the bottom and been re-frozen you would know that your power had gone out.You can then discard the black bags and save your freezer or refrigerator.

Hopefully we will not have to deal with this again. Better safe than sorry.

Got new bling for Valentine’s day?

Erik — Tue, 14 Feb 2012 15:44:27 +0000

With Valentine’s Day still fresh in everyone’s minds, the team at Garcia Insurance Services wants to remind all those lucky recipients of “bling” to call us and make sure that your new sparkly bits are covered under your homeowners insurance policy.

We make it easy and affordable to protect those special gifts so please, don’t take any chances by assuming you’re covered.

Here are a few tips for properly insuring your bling.

1.) Have all of your fine jewelry appraised by an independent appraiser. Make sure each item is listed, described and valued on paper.
2.) Call us to find out the amount of coverage your current policy provides for items such as jewelry.
3.) Ask us about deductible and no-deductible riders so that we can tailor fit your policy just the way you want.
4.) While you may have over insured your home and its contents, ask us about specific items of significant value to make sure that you are properly covered.
5.) Always ask questions! We’re here to help and we’re always happy to answer questions about protecting the things you cherish.

Happy Thanksgiving!

Erik — Tue, 22 Nov 2011 06:24:05 +0000

What will it take to feed people this holiday?

7.11 billion pounds of turkey
2.4 billion pounds of sweet potatoes
1.1 billion pounds of pumpkins
750 million pounds of cranberries
248 million turkeys expected to be raised

Be thankful and share what you have with others who may have less. And if you are frying one of the 248 million turkeys that are being raised, don’t burn your house down! Be careful.

Louisiana Citizens Sheds Homeowners Policies

Erik — Tue, 30 Nov 2010 14:41:22 +0000

Louisiana Citizens Property Insurance Corp. (Citizens) has held a fourth depopulation offering in which 13,500 policies have been assumed into the private insurance market, state Insurance Commissioner Jim Donelon announced.

Citizens, which insures homes and commercial properties that private companies refuse to insure, had its book of business spike to 174,000 in September 2008 following Hurricanes Katrina and Rita. Since that time, Citizens has held three depopulation offerings to the insurance industry. Some private insurers have been enticed by state grants to take over the policies from the state’s insurer of last resort, while other private insurers that haven’t taken part in the incentive program also have assumed policies.

In 2009, the market share of Citizens fell to 6.4 percent of the total Louisiana homeowners market, an amount lower than the Citizens homeowners market share on the day prior to Hurricane Katrina. That share placed Citizens third in terms of size of the market. With the latest removal of 13,500 policies, Citizens total will drop to 119,000 policies and is predicted to have dropped to below a 6 percent market share and rank fifth or sixth in size of market share in the state, the DOI reported. “This decline is further evidence that the homeowners market in Louisiana continues its recovery from Hurricanes Katrina and Rita,” it said in a statement.

The reduction of Citizens policies benefits all property owners by preventing or reducing future assessments that could be charged to all property insurance consumers in Louisiana, the DOI said. Another benefit for Louisiana property owners is that policies taken out of Citizens and written in the private insurance market will be written at lower premiums. This is because the rates charged by Citizens are required by law to be residual or, put another way, the highest rates in a parish, Commissioner Donelon explained. Many policyholders have lowered their premiums by hundreds, even thousands, of dollars after being written by a private insurance company instead of Citizens.

“I am very encouraged by these numbers, and I believe they indicate significant improvement in the recovery of the Louisiana property insurance market,” Donelon said. The reduction in market share of Citizens is a great indicator that the homeowners insurance market, as well as the commercial property insurance market, in Louisiana is rebounding from the severe hit we suffered as a result of Hurricanes Katrina and Rita. On behalf of Louisiana property owners I welcome new companies into the Louisiana market and encourage other companies to join us.”

In the three previous rounds of Citizens depopulation, Citizens saw the following reduction in policy counts: Round one 26,595 policies on June 1, 2008, round two 13,343 policies on Dec. 1, 2008 and round three 3,368 policies on April 1, 2009.

For more information, contact the Louisiana Department of Insurance at 800-259-5300 or www.ldi.state.la.us.

Source: DOI
Find this article at:

http://www.insurancejournal.com/news/southcentral/2010/11/23/115110.htm

Home, Flood Insurance Markets Still Troubled 5 Years After Katrina

Erik — Fri, 29 Oct 2010 14:43:05 +0000

Five years after Hurricane Katrina devastated the Gulf Coast, neither the federal government nor the private sector is any closer to developing effective solutions to the problems facing flood and windstorm insurance, according to a new study from the RAND Corp.

The seven hurricanes that pummeled the Gulf Coast region in 2004 and 2005 did an unprecedented amount of damage, causing nearly $90 billion of insured wind losses to property, with one-half of those losses caused by Hurricane Katrina alone. As a result, insurance premiums skyrocketed, numerous private insurers retreated from coastal regions and government insurance programs were expanded.

Taxpayers and policyholders in low-risk areas have often subsidized the premiums offered by public insurance programs, raising concerns that these programs provide inadequate incentives to avoid high-risk areas or otherwise reduce risk. In addition, thousands of residents whose homes were damaged or destroyed by the storms resorted to the courts to resolve disputes over whether their insurance policies covered the losses.

“The current constellation of institutions and regulations is not adequate for achieving the basic goals for a well-functioning residential insurance market along the Gulf Coast,” said Lloyd Dixon, one of the authors of the study and senior economist with RAND, a nonprofit research organization.

“Until an improved system for mitigating and insuring hurricane risk is developed, these storms will continue to cause record-setting losses to life and property, ever-increasing federal disaster relief and major economic disruption in the Gulf Coast states,” Dixon said.

Building on previous work by RAND and others, Dixon and his colleagues reviewed the latest research and conducted more than 40 interviews and meetings with a broad range of concerned stakeholders, including coastal residents, consumer groups, insurers, regulators and legislators.

The RAND study suggests four goals to guide any reform effort:

insurance premiums should create appropriate incentives to mitigate risk;
decisions by households and residential developers should factor in wind and flood risk;
the insurance system should pay legitimate claims efficiently and expeditiously;
and the insurance market should encourage innovation and price competition. The researchers also suggest that a national commission be created to assess reforms.

The study identifies numerous obstacles to public and private efforts to achieve these goals. For example, it has always been difficult for the private sector to insure low-probability, high-consequence events like major hurricanes and earthquakes that affect a large number of policyholders simultaneously. The large variation in annual losses can mean that insurers must hold a large amount of capital in reserve to protect against insolvency, which forces rates up.

“We found that the last round of catastrophic hurricanes has shaken the confidence of some insurers in their ability to predict wind damage risk,” said James Macdonald, a study co-author and an adjunct staff member at RAND. “Several insurers we interviewed raised doubts about whether catastrophic windstorm peril can be accurately modeled.”

While public sector programs have some advantages over private sector insurers, government programs often subsidize premiums in high-risk areas by charging less than actuarially needed. By doing so, these programs may be creating disincentives for homeowners to take the risk of hurricane damage into account when they choose where to live, or discouraging them from taking mitigation measures.

The study identifies the types of reforms that could address the ongoing problems facing the Gulf Coast residential insurance marke and discusses the trade-offs of different approaches. Some of the policy approaches that the researchers say warrant consideration include:

Changes in government regulations that reduce the cost of capital that private insurers hold to protect against large losses
Government provision of reinsurance for wind risk
Government provision of wind insurance
Expanding mandatory flood insurance purchase requirements
New policy language on loss allocation, such as addressing how losses are allocated when there is both wind and flood damage
Federal — as opposed to state — regulation of wind and privately provided flood insurance to encourage competition and innovation

The study is titled, “Residential Insurance on the U.S. Gulf Coast in the Aftermath of Hurricane Katrina: A Framework for Evaluating Potential Reforms.”

Source: Rand Corp.

Take a class on the National Flood Insurance Program (NFIP) from the Academy of Insurance

Autofocus: Adjusting Your Mirrors Video

Erik — Fri, 22 Oct 2010 14:49:00 +0000

Erik’s son Joshua recognized for his artistic talent!

Erik — Sun, 13 Jun 2010 23:21:01 +0000

Erik’s son Joshua recognized for his artistic talent!

A Few Basic Saftey Tips

Erik — Sun, 13 Jun 2010 23:16:20 +0000

Hurricane Safety

When mandatory evacuations are issued for a hurricane, evacuate. If it is not mandatory, but the opportunity presents itself, evacuate.

Before the start of hurricane season, verify with your insurance agent that homeowners and flood insurance polices are in place. Remember: Homeowners insurance does not, and will not, cover flood damage.

Update photographs of your home and belongings.

When a storm approaches, prepare your house for possible-destructing winds and water by boarding windows, sandbagging low-lying areas, picking up outside furniture, garbage cans and plants. Brace any larger landscaping when possible.

Motorcycle Safety

When enjoying your motorcycle, ride safely.

Wear your helmet.

If it has been dropped or in a previous accident, get a new one.

Obey traffic laws.

Drive to the left or the right of a traffic lane; there is less oil buildup here.

Keep distance when riding with others.

Boating Safety

DWI laws apply to boating as they do to automobiles.

Do Not Drink and Drive.

Check fuel balances before going out.

Check the weather forecast before going out to sea.

FEMA: Insurance Applies if Oil from Spill Mixes with Flood Waters

Erik — Sun, 13 Jun 2010 22:48:45 +0000

The Federal Emergency Management Agency has clarified that in the event of a declared flooding disaster, National Flood Insurance Program coverage will apply even if oil from the British Petroleum deep well blowout in the Gulf of Mexico is mixed with flood waters.

The NFIP will bill BP for reimbursement for any claims it pays for covered properties affected by flood waters mixed with oil from the BP spill.

In a memorandum issued to insurance industry Write Your Own flood program particpants, James A Sadler, director of Claims for the NFIP, said that oil in flood water is not a new development for the flood insurance program. However, in order for coverage to apply there must first be a definitional flood as described in the Standard Flood Insurance Policy (SFIP), Sadler wrote.

Damage caused by the oil in flood waters is covered subject to the provisions of the SFIP.

Other stipulations provided by Sadler in the memo include:

Coverage for commercial buildings and contents must be purchased separately and the limit for damage caused by pollutants is $10,000.
Homes and contents are covered up to the policy limits.
NFIP only pays for direct physical loss by or from flood.
Condominium contents are covered to the policy limits.
Damage to ground, soil, or land caused by flood, oil, or flood water mixed with oil is not covered.
The cost of complying with any local or state ordinance including one that requires special removal methods for oil is specifically excluded (certain floodplain management mitigation requirements are exceptions).
There is no coverage for testing for or monitoring of pollutants unless there is a law or ordinance requiring it.
If the policyholder makes any claim against any person who caused the loss and recovers any money, the policyholder must pay FEMA or the WYO back first before the policyholder may keep any of that money.

Source: FEMA