specifically mentioned in your policy. Some exceptions to look for is water damage caused by washing machines or dishwashers.

- Flood damage is not covered by basic renters insurance and if you live in a flood-prone area, you will need to purchase a separate policy for flood damage or add a rider to your current policy if possible.

- If, during the time of repair, your living space is unlivable, the insurance
company should pay for you to live in another location (less than or equal to the cost of current apartment).

Homeowners Insurance Information

- Standard homeowner policies usually cover all perils that are not specifically included and water damage is typically excluded. Be sure to look into a separate flood insurance policy or add a rider that covers water damage if possible.

- Do not wait for flood season to purchase a flood insurance policy. Most policies have 30 day waiting period and losses occurring within these first 30 days will not be covered by your new insurance.

- Know what your insurance covers as it is not a catch-all for all water-related damage. For example, it offers some degree of protection for flood-related basement damage, but may not cover events such as sewage backups unless they are directly related to a flood.

- Understand the definition of a flood. “Flooding represents water rising from below” states Dr. Robert Hartwig, chief economist of the Insurance Information Institute. This is the reason many residents were left without coverage during Hurrican Katrina, the water was pushed inside of their homes and did not rise from below.

The average flood insurance policy costs about $300 annually and offers protection for both your home and its contents. Even if you do not live in a flood-prone area of the country, factors such as storms, inadequate sewage, melting snow and hurricanes can cause serious flooding in areas where it is least expected. The examples of New Orleans and other southern states show us that it is always best to be prepared as the alternative can be devastating.

Tip of the month: Roommates and Renters Policies

While some insurance companies allow multiple roommates to be named on the same policy, each tenant should purchase separate renters policy to ensure that your personal property is covered in case of a loss.

Insurance During New Construction

In this real estate market, where homes and condos sell out before they are built, it may be important to consider home insurance while the building is in process. Insurance during this time can protect your interests in the case of a fire, theft, or other event that damages or even destroys your partially-completed home.

Two options are available to homebuyers during the time of home construction.

Standard homeowners policy

a. This type of policy will cover damages that occur during the building process and provide coverage for the theft of materials (although this will also be covered by the contractors insurance).

b. It also provides liability coverage if someone should trip during a showing of your dream house and decide to sue.

c. It is important to note that personal property will not be covered until the building is secured and lockable. When the building has reached that point, personal property can be added to your new homeowners policy.

Dwelling and Fire policy
a. This policy covers damage to the physical structure, but does not cover theft of building materials.

c. Appropriate if you will be living in your old house as your dream house is being built, as your current homeowners policy will cover any theft that may occur.

c. Also provides liability coverage.

Once your new home or condo has been built, it is important to reevaluate your coverage to ensure all you needs have been met. The process of moving has also been a hectic one, and this is one way to make that transition as simple as possible.

Out with the Old, In with the New

If you are already in the home of your dreams, but recognize that it can use some updating, you have one great option available: REMODELING. While this can be a long and intensive process, the results can be your wish come true. However, before you take out the hammer and put the first hole in the wall, it is important to take a look at your insurance coverage.

With each upgrade of appliance or addition of a new room, your property value increases. Regardless of the size of change that you make, make sure your property coverage limits reflect or can be increased to reflect this change in value. Additionally, if you are adding a new room, you want to be sure that it is specifically mentioned in your policy. Otherwise, your insurance company may not pay claims resulting from damage occurring to this room.

Doing It Yourself

Performing the work yourself can save you money, but be prepared if an accident should occur. If someone helping you is injured, his/her injuries should be covered in your homeowners policy under the liability section. In the case you have significant assets you want protected in the case of a claim, looking into a personal umbrella policy may be worth the time. A personal umbrella policy will provide coverage beyond your basic homeowners insurance where claims are larger than the policy limits of your basic coverage.

Hired Help

If you hire someone to do the work, make sure he/she is properly insured. All contractors should have a certificate of coverage that covers both workers’ compensation and contractor’s liability insurance. Workers’ compensation you from liability claims if your contractor (or his/her employees) get hurt while on the job. Contractors liability insurance provides coverage for damages to your property the contractor may have caused while working. Contractors (and subcontractors) proof of insurance can be obtained by contacting their insurance company directly.

Additional items to research before getting started on any remodeling project include:

· Check local building codes to ensure your project meets those standards; otherwise damages incurred may not be covered by insurance.

· Before choosing a contractor (or subcontractor), check with the Better Business Bureau to find out if any complaints filed against the contractor you may hire and ask to see the contractor’s license.

· Keep your insurance agent in the loop concerning any home improvements, as he/she can make sure you are protected adequately at all times. For example, he/she can check that your homeowners policy (or contractor’s policy) covers building materials and other uninstalled items that may be vandalized or stolen.

Deciding to remodel your home can be a large investment. Making sure to make an equal investment in your insurance coverage can provide the peace of mind needed during these hectic times.

November 2006

Protection from the Rain

With the recent anniversary of Hurricane Katrina and change in weather in our area, the fear of flooding and water damage steps to the forefront of our minds. For both renters and homeowners, the affect of water on your property can be a daunting task overcome.  Here are some things to know about your renters and homeowners insurance that can help you prepare for the worst case scenario.

Renters Insurance Information

-         Landlords insurance will cover losses to the building, but does not cover your personal property.  Additionally, if your landlords insurance only covers the external building, it will not cover carpet, pipe, or wall coverings damaged within your unit.  However, it is important to note that your landlord may still be liable for repairs depending on the circumstances.

-         Some renters’ insurance policies do cover water damage, but be sure that it is specifically mentioned in your policy.  Some exceptions to look for is water damage caused by washing machines or dishwashers.

-         Flood damage is not covered by basic renters insurance and if you live in a flood-prone area, you will need to purchase a separate policy for flood damage or add a rider to your current policy if possible.

-    If, during the time of repair, your living space is unlivable, the insurance company should pay for you to live in another location (less than or equal to the cost of current apartment).

Homeowners Insurance Information

-         Standard homeowner policies usually cover all perils that are not specifically included and water damage is typically excluded.  Be sure to look into a separate flood insurance policy or add a rider that covers water damage if possible.

-         Do not wait for flood season to purchase a flood insurance policy.  Most policies have 30 day waiting period and losses occurring within these first 30 days will not be covered by your new insurance.

-         Know what your insurance covers as it is not a catch-all for all water-related damage.  For example, it offers some degree of protection for flood-related basement damage, but may not cover events such as sewage backups unless they are directly related to a flood.

-         Understand the definition of a flood.  “Flooding represents water rising from below” states Dr. Robert Hartwig, chief economist of the Insurance Information Institute.  This is the reason many residents were left without coverage during Hurrican Katrina, the water was pushed inside of their homes and did not rise from below.

The average flood insurance policy costs about $300 annually and offers protection for both your home and its contents.  Even if you do not live in a flood-prone area of the country, factors such as storms, inadequate sewage, melting snow and hurricanes can cause serious flooding in areas where it is least expected.  The examples of New Orleans and other southern states show us that it is always best to be prepared as the alternative can be devastating. 

Tip of the month: Roommates and Renters Policies

While some insurance companies allow multiple roommates to be named on the same policy, each tenant should purchase separate renters policy to ensure that your personal property is covered in case of a loss.

September 2006

My Kids Have Left The Nest, Now What?

While it may have taken a couple of years, your children are off to college and you are left with an empty nest. It is the perfect time to relax and enjoy a more peaceful and less noisy future. However, before you whip out the party makers and Champaign flutes, you have important decisions to make about your insurance and how you and your children will be covered.

To help protect your children who are leaving the nest for college, the most important thing for you to look at is their Health Insurance. The same situations you guard against while they are home, are they same you want to shield against once they are at school. Additionally, many schools require that students are covered by some form of health insurance as a condition of enrollment.

In most cases, your current coverage may suffice, as many family policies cover full-time students who meet certain requirements of the policy. (I.e. age). If your policy requires the use of local doctors and hospitals and your child is leaving the area, you will need a separate plan which you may be able to purchase from a private insurance company or directly from the school your child will be attending. Although this is not an option offered by all universities, it is a viable one that may help lessen the amount of time you take in finding affordable insurance. As with all insurance, it is important that you review and consider the alternatives available to you.

- Amount of deductible and co-payment
- Extent of coverage
- Types of services covered
- Exclusions and Limitations
- Maximum benefit amount provided
- Flexibility in choice regarding health care providers and specialist

Auto Insurance is also an important aspect to review, whether they will be taking a car with them or not. If they own a car and are taking it to school, your insurance company may require that a policy be issued in their name. If they borrow one of your cars, you will probably want to list them as a principal or occasional driver on your current insurance. If you expect your child not to take a car, but instead only use your car during summer vacations or winter breaks, listing them on your policy is necessary. Be sure to ask if you are eligible for premium discounts if you expect this to be the case.

The last step of protection you can offer is over your child’s possessions with homeowners or renters insurance. The good thing about your homeowners insurance is that it may cover personal items like a computer, stereo, etc if your child commutes or lives in college housing. But for students living off-campus, a renter’s insurance policy is the best bet. The good thing about a renters insurance policy is that it may provide coverage if your child injures someone or causes property damage.

Leaving the nest is hard for both your child and you. Protecting them as they go should not be.

Hybrid Cars – the new choice of Baby Boom Generation

While in the past Hybrid car ownership focused on those who were tech-savvy and eco-friendly, lately the average owner is married men and women ranging from 41-60 years of age. This trend has taken place for a number of reasons, mostly due to decrease in ownership costs that owning a hybrid vehicle provides.

Some of the perks to owning an energy-efficient vehicle are:

- Decrease in auto insurance rates
A decrease in car insurance rates is based on preliminary research that purchasers of hybrid vehicles are generally safer drivers. Thus, falling into a preferred insured category and justifying lower premiums.

- Federal tax breaks
New tax laws established in 2006 allow for new tax breaks in the form of tax credits. These credits can range from $250 - $3,150, but will last for a short amount of time and is subject to special rules and regulations. The amount of time you have to benefit from this tax break is dependent on the cars manufacturer.

- Decrease in monthly cost for gas
Hybrids use both gasoline and electric power, so the overall purchase of gasoline to run your vehicle will be less than with a solely gasoline powered vehicle.

However, before you jump to make the move to be the next purchaser of one of these high-tech inventions, there are some cons that are associated with owning a hybrid vehicle.

- Higher purchase price than non-hybrid vehicles
Overall, Hybrid vehicles are $5,000 - $7,000 more expensive than their gasoline run counterparts. While the difference can be made in gas savings, consider the following:

“A Toyota Highlander Hybrid costs $7,185 more to purchase than
The non-hybrid version. That results in $558 more in sales tax and $2,653 more in financing costs… [And] will save you about $1,392 in gasoline over 5 years.”

- Faster depreciation
Annually, these cars are expected to lose 2% - 3% more in value than their gasoline run counterparts based on information gathered from Consumer Reports.

- Absence of long-term durability research
The mere fact that most of these vehicles have been purchased in the last couple of years indicates there is no long term data on how the cars will respond at 80,000 or 120,000 miles.

With over 300,000 hybrid vehicles on the road and a steady increase of newly purchased hybrid vehicles annually, the pros may be outweighing the cons for baby boomers and others looking for a more energy efficient way to get from point A to B.

August 2006

Importance of Life Insurance

Life Insurance does more than leave money to loved ones when one dies. It provides stability during a very unstable time for families. Its purpose is to cover expected and unexpected expenses that may occur with the lost of a breadwinner or other family member. It can also provide support when medical, funeral or legal costs arise, without using family savings. Below are some tips to keep in mind when purchasing life insurance for yourself and family members.

1. Shop around – Premiums can vary widely for the same coverage. Be sure to check out all of your options before making a final decision.

2. Never buy more coverage than you need – Ensure that you have enough coverage to maintain your standard of living. Having too much life insurance can lead to unnecessarily high premiums.

3. The healthier you are the better the rates – Rates for insurance increase as ones health worsens. You will be asked to pay more if you smoke, are overweight or take medication regularly.

4. Buy sooner rather than later – As one grows older, rates also tend to increase. The younger you are when you purchase life insurance; a lower premium will be the result.

5. Realize the importance of periodically reviewing your coverage – When life changes occur (i.e. new baby, children leave home), it is important to review ones coverage to ensure that one is not over insured or underinsured.

6. You may be paying more for monthly premium payments – Many companies charge fees if premiums are paid monthly. You may be able to lower your premiums by paying on a quarterly or annual basis.

7. Don't rely solely on the life insurance offered by your employer – Group Life Insurance offered by your employer is not portable, so if one leaves the job for any reason, a loss of insurance is the result. Additionally, group coverage may not be enough to adequately cover your life insurance needs.

8. Tell the whole truth and nothing but the truth - Lying on a life insurance application can mean a termination of ones coverage and may result in the inability to get life insurance at all.

To help you determine the best type and the appropriate amount of life insurance for your family, contact the associates at W.A. George Insurance Agency at 312-225-8456.

Summer Car Care Guide

With the signs of summer in full bloom, it can be easy to forget the problems of winter and take that long road trip you have been dreaming of during the dreary months of the year. It is important to note, however, that preparing your car for warm-weather driving is a necessary step for to avoid the problems of overheated radiators, flat tires, and burned-out transmissions that can ruin a great vacation. So before you jump in the drivers’ seat, read through this helpful summer car care guide to ensure your car is ready for that long drive ahead.

*Replace old anti-freeze with new coolant, and maintain a regular schedule of oil changes. The usual recommendation for an oil change is 3 months or 3,000 miles.

*Consider a tune-up, especially if you own an older model vehicle. Your manual should include a recommended maintenance schedule for your vehicle.


July 2006

Protecting the Nest
How to keep your home safe during the summer

With the emergence of summer comes the inclination to relax and vacation. But it also becomes more important than ever to protect your home and property from those who may see them as potential targets while you are away. It is estimated that each year 5 million families become victims of household burglary, many times while they are away on vacation. The average loss for the homeowner is $1,300 with some ranging in the thousands of dollars.

If these facts surprise, it should also be surprising to find out that 9 out of 10 burglaries can be avoided with simple preparation. Included are some tips to help protect your home and property while you are enjoying the summer.

Make it appear you are home
1. Ask someone you know or trust to keep an eye on your house
2. Stop the delivery of mail and newspapers – or have a friend or neighbor pick     them up for you
3. Keep bushes and shrubs near your home’s entrance or walkway well     trimmed. Overgrown shrubs provide easy camouflage for burglars
4. Use timers on lights, televisions, and radios to provide sound and illuminate     the inside of your home
5. Keep the outside of your home well lit
6. Arrange to have your lawn mowed if you will be gone for a long period of time 7. Leave the air conditioner on. A silent compressor on a hot day is a good     indication you aren’t home
8. Change the setting on your answering machine so it picks up on the first or
    second ring-or just turn down the ringer. A constantly ringing phone is a good sign no one is home.

Along with these tips, there are other measures you can take to secure you home. Examine your house from the street to make sure no valuables can be seen from the street. Additionally, make sure that all doors, windows, and sliding doors are locked and secure. A research study concluded that 28 percent of burglaries occur without using force to gain entry. Lastly, automatic garage doors should be unplugged as some burglars may be able to discover the code and open your garage.

In the case that none of these precautions work, make sure you have adequate home insurance protection for your house and belongings. Finding the appropriate amount depends on the value of your home and its contents. The experts at W.A. George Insurance Agency Inc. can help you find out exactly what type and amount you need before you go.

Summer is a time to enjoy yourself and should be the most relaxing time of the year. Do not let a lack of preparation destroy your season.

May 2006

LOCK-IN FOR MEDICARE DRUG ENROLLMENT

If you have a supplement plan in connection with Illinois Cares Rx, there is still time for you to make one change before Lock – In, May15 through 1 July 2006. Remember the penalty you will pay is particularly steep, and it is an on going penalty that the plan participant will pay monthly for as long as they are a part of the plan.

The sheer number of choices need not necessarily be a stumbling block. The first step in selecting an appropriate plan is to create a list of all of the drugs and dosages that you presently take, along with the associated costs, and a description of the insurance that you presently have to help cover these costs.

Armed with this information, there are a number of resources available to assist in determining which plan will provide the greatest coverage.

• Contact W.A. George Insurance Agency by phone at (312) 225 5037 with any    questions you might have about which program is right for your medical    needs;
•Visit the Medicare website at www.medicare.gov where you will find an
  easy-to-use program for identifying the best program for your particular needs.

If you need additional help in paying for drugs, and you meet the low income guidelines, you may also apply for extra financial assistance through the Social Security Administration at www.socialsecurity.gov.

Even if you are presently healthy and prescription drug costs are not presently an issue, it pays to enroll now. Plan enrollment penalties will continue to increase, so registering now will help keep costs down in the event that you need prescription drug coverage in the future.

W.A. George Insurance Agency works directly with providers that offer a number of these Medicare drug plans. It is our goal to educate our clients to be able to make better, more informed decisions about the prescription drug program that is right for them. If you need assistance in selecting a plan that is right for you, please give us a call at (312) 225-8456.

In a post Enron world, where compliance is as critical as it is complex, publicly trade small-cap companies need higher and more sophisticated levels of protection in their dealing with regulators, employees, litigation-savvy investors, Sarbanes-Oxley and SEC requirements. Today's small-cap public companies are facing many of the same disclosure requirements and management challenges as their larger counterparts. If your small or mid-sized firm is publicly traded, it probably ought to consider implementing a Management Liability Protection Plan.

Management Liability Protection (MLP) is a unique new type of business coverage designed to help small-cap public companies protect themselves from management liability risks and exposures. Recognized by the U.S. Chamber of Commerce as an important form of protection for publicly traded companies of all size, Management Liability Protection combines four essential types of management liability coverage, including:

• Board Directors & Officers (D&O) Liability;
• Employment Practices Liability (EPL)
• Pension Trust Liability insurance, and
• Independent Director Liability Insurance (IDL MAX)

Typical MLP programs also provide loss prevention, claims handling and litigation management to mitigate loss and to help the insured defend against management liability claims from shareholders, employees and others.

In some instances, this coverage can include access to the advice of outside counsel, comprised of leading securities, employment practices and fiduciary litigation attorneys.

In addition to obtaining Management Liability Protection, we also recommend that small and mid-size companies further mitigate their risk by “best practice” employment policies and procedures, and implementing widespread training, testing, tracking and compliance to these programs throughout the workplace.

Think your company might be a candidate for Management Liability Protection? W.A. George Insurance Agency can help. Call today for additional information -- 312-225-8456.

January 2006
Condominium Insurance 101 for New Board Members:
What every community association officer should know about their responsibility when it comes to insurance

There are four basic types of risks that associations typically face:

Property (both tangible property such as physical property and intangible property such as information and legal privileges held exclusively by the association),

Liability (the possibility that an entity or person may bring or threaten to bring a legal claim against the association),

Net Income (unplanned decrease in revenue or increase in expenses in a specific accounting period), and

Personnel (the losses resulting from the death, disability, retirement, resignation, unemployment of or malfeasance by association employees and, as applicable, association board members, owners or volunteers.

Risk management is accomplished by thoroughly understanding the risks that exist or could exist, minimizing the identified risks by making and carrying out decisions that minimize adverse effects of accidental losses to the association, and procuring insurance to cover the rest.

Your association can either control or transfer its risk. Control involves eliminating the chance of loss (such as closing a dangerous amenity), preventing loss (such as proofing a newsletter before publication), reducing loss (such as installing an alarm), and segregating exposures (such as backing up computer files), and transferring risk (such as employing a management company rather than having your own employees). A little effort on prevention can reduce risk a lot.

The remaining risk may then be transferred to a commercial insurance carrier. The Board of Directors is charged with obtaining and maintaining adequate insurance.

TYPES OF CONDOMINIUM ASSOCIATION COVERAGE

There are four basic types of insurance policies that protect an association against losses:

General Liability to cover the physical properties and provide the usual liability and medical, personal and advertising injury, fire legal liability coverage. The Board should debate the amount of risk it is willing to sustain and set the deductible as high as prudent to reduce premiums.

Workers’ Compensation and Employer’s Liability to cover employees who are injured while engaged in association business;

Directors & Officers to cover claims of alleged negligence or malfeasance by the volunteer leaders. Not all insurance companies offer D&O policies – your W.A. George Insurance Representative can help identify an appropriate insurance product that suits your building’s requirements. If you have a management company, you should also assure that you have a management company rider to protect the association against a suite involving your management company.

Fidelity Bonds cover claims of alleged misappropriation of association funds. Fidelity Bond policies are usually written for the total of the monies being handled by association employees and volunteers. The amount you should insure is typically your liquid assets. For example, if your association had $80,000 of liquid assets, $58,000 operating funds and $22,000 of operating reserves, your fidelity bond should be at least $80,000.

NOTE: Having third party fidelity bond coverage is wise. Make sure that all service providers (such as landscape, management, pool, and trash collection firms) carry their own insurance. You should obtain an endorsement on each service provider’s insurance policy to name the association as an additional insured for liabilities associated with the association – and barring that, add designated third party coverage to the fidelity bond policy.

Umbrella Policies are designed to cover anything else over and above the aforementioned policies...

These policies can be obtained and written separately or together, depending on the insurance company involved. When the basic policies do not provide adequate coverage, an “umbrella” policy is added to increase the aggregate liability coverage limits. In today’s litigious environment, an aggregate $2 million of general liability coverage and $1 million Directors & Officers coverage is minimal for the average association. Once the carrier has paid $2 million liability or $1 million Directors & Officers minus deductibles, the association will no longer have coverage. An umbrella policy should therefore be considered to increase the total coverage to $4 million - $5 million. The additional cost should be around $300 per million.

Consolidation is the key to smoother transactions in the event that you need to file a claim. Most claims involve more than one policy to provide general liability, workers’ compensation, fidelity, and Directors & Officers coverage. If you have two or more carriers the probability of conflict over which carrier should pay is greatly increased. Consolidating all policies with one company simplifies claims processing and potentially offers savings.

W.A. George Insurance Agency specializes in serving community associations, and offers tailored policies that can incorporate all of your insurance needs into one policy at competitive costs with a multi-year lock in on premiums.

Call us today to learn more -- 312-225-8456.