Insurance Insights ~ August 1997

Additional Insured's and the Certificate of Insurance

We receive numerous requests on a daily basis for certificates of insurance. These documents simply provide proof of insurance protection, showing type of coverage, policy limits, and policy dates.

In addition to requests for this document, many of our clients will ask that the certificate holder (person/organization requesting the document) be named as an additional insured. We wanted to take this opportunity to discuss the concept of an additional insured.

There are several important considerations that the named insured needs to be aware of when adding additional insured's to an insurance policy. First, the named insured may find themselves with inadequate limits of protection, when a loss occurs and both the named insured and the additional insured are held liable. Since the amounts of insurance under the policy are shared by both parties, the aggregate limits of the policy are decreased by the amount paid for the loss.

Another consideration is defense conflicts. These problems can surface when there are several parties covered by one policy for a loss, and each party may have different attorneys representing them. The attorneys may not work together to resolve the issue, placing blame on others. Unfortunately, the insurance company must pay all these fees, as one of the primary benefits under defense costs.

In closing, it is important to point out that an additional insured is a party to the insurance contract, and not a party of the insurance contract. As such, the additional insured does not have any rights under the insurance contract like the named insured does.

It is very important that the insured and agent get together each year at renewal to review their list of certificate holders and additional insureds. You will want to remove any additional insured's that no longer have a business interest with you. Not only are you being charged an additional premium for covering them, but hopefully after reading this, you realize the added burden this places on your insurance protection.

Replacement Cost on Personal Property: A Wise Investment?

Question: If there is a fire in my living room, will my homeowners or renters insurance automatically pay for the full cost of replacing my furniture or contents?

Answer: NO! Unless you have replacement cost coverage on your personal property and possessions, your furniture and contents is only insured for its actual cash value. Actual cash value is determined by taking the replacement cost at the time of loss, minus depreciation of its value and any deductible applying to your policy.

Replacement cost coverage protects you from both depreciation and inflation. It is usually available at a nominal charge in addition to your homeowners or renters insurance and is well worth the investment.

Don't be caught short. Erie's Replacement Cost Settlement on Personal Property Coverage gives you full replacement cost settlement after a loss. The only cost you will incur is the deductible applicable to your policy.

Household Inventory Record -- Well Worth the Time

Whether you're still unpacking boxes from your recent move or whether your boxes of memorabilia have been stashed away for years, the contents of your home are valuable.

Trying to appraise your belongings would be a difficult task without an organized format to follow. Erie Insurance has designed a brochure enabling you to accurately assess your belongings. For your own home inventory form, e-mail our office at info@gcwinsure.com.

If you would like to do your own inventory, follow these basic steps:

• List all your major belongings and furnishings, room by room. Record a brief description, serial numbers, purchase prices and dates, and current value. Attach any receipts or appraisals you may have. Some computer software programs include a household inventory schedule.
  
• Take photographs or videos to back up your inventory list. Write the date, contents shown, and location on the back of each picture. If using video, simply narrate to provide this information while your shooting each room.
  
• Store the inventory and photos (or video) in a safe place away from your home, such as in a safe deposit box.

When disaster strikes, the last worry you want is the need to recall all the items you had that were damaged, destroyed or stolen. For more information, please contact us by phone or e-mail.

Myth: Filing a Claim Is a Painful Process

You've no doubt heard the horror stories about how difficult it is to settle a claim with the insurance company. It seems as if the insurance company likes to make your life difficult, and you enter into the process expecting a hassle.

Our first priority is to let you know what's going to happen in the claim process. Our agency and the claim adjusters know that a claim is an upsetting time in a person's life. We do our best to minimize concerns, answer questions, get the claim completed, and get our customer's lives back to normal.

We hope you never have a claim, but just in case you do, here are some important reminders that will help us help you see that your claim is settled:

• Don't panic. Contact our office or call the toll-free number listed on your insurance card.
  
• To file your claim, you'll need to provide the following information:
  1. Where, when and how the accident or loss occurred.
  2. Personal injuries you and others suffered.
  3. Names, addresses, work and home phone numbers of everyone involved in the accident or loss, including witnesses.
  4. If someone was taken to the hospital, record the name of the hospital.
  5. Damage to vehicle and/or property.
  6. If a police report was filed, record the name and location of the police department and the incident number of the report.
  7. Insurance information on others involved in the accident or loss.
     
• Although there are a lot of details required, these can be very important in settling a claim quickly:
  1. Accurate names and phone numbers for everyone involved in the accident or loss enables claims specialists to promptly make contact.
  2. If there are only specific times that we can contact you or others, let us know those times.

Remember, we are here to help you. The more information we have, the faster we can process your claim. You can also contact us by e-mail (info@gcwinsure.com) and request the brochure "What To Do When You Have An Accident." This brochure can be placed in your glove box and be used should you be involved in an accident to record all the pertinent information.

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 8/1/97. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.

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To contact G.C. Weimer Insurance Agencies, e-mail info@gcwinsure.com (please read this first).