As our lives change, so do our insurance needs. Letting us know about changes can ensure that you have adequate insurance coverage through Stanberry Insurance. Here are some examples of when to check your coverage:

1. You’re remodeling or building an addition to your property. When you hire the contractor, request a certificate of insurance to confirm their liability and workers’ compensation coverages. Review the certificate and your homeowners policy with our agency. In some cases, remodeling projects can increase your home’s reconstruction cost.

2. Your teen starts driving. If a teenager in your home is learning how to drive, that means you’ll soon need to help them purchase insurance. We can guide you through the process, find the best way to add them to your policy and provide materials about safe driving behavior.

3. You got a new job. If you have accepted a position and the work commute is shorter or longer, call us. A significant change in annual mileage could warrant a change in your auto policy. (And that could save or cost you money.)

4. You bought a new ride. If you’ve purchased or leased a new or used vehicle, your insurance policy needs to be updated. Car dealers are required by law to confirm insurance coverage, but only you can make the necessary changes to your policy to make sure you’re fully protected.

5. You’re saving a buck with refinancing. When you’re taking advantage of lower interest rates by refinancing your home or vehicle, your policy should be updated to reflect any new mortgagee or lienholder.

6. Your family’s growing and changing. When you get married or welcome a new baby to the family, the new responsibilities may warrant a change in your home, auto and life insurance coverage.

7. You’ve bought a little luxury. When you purchase valuables such as a diamond ring or a rare piece of art, you should contact your agent. Your homeowners policy covers personal belongings and furnishings, but higher-valued items may have coverage limitations. An endorsement may be advisable for more costly or unusual items.

8. You’ve decided to work from home. If you’re starting a business out of your house, let us know. Depending on the equipment and the nature of your work, an endorsement or separate policy may be necessary to protect your investment and liability exposures.

9. It’s time to retire. Ready to kick back and relax? We can help you maximize the benefits of your retirement plan with a life insurance program.*

No matter what you’re considering, contact our agency. We will assist you with life, auto or home insurance policy changes and insurance needs.*

That’s why it’s important to insure your home at the level it would cost to replace it—not its market value. Although it might seem like you’d save money if you insured your home for its market value, you could end up worse financially if disaster hits.

It might seem strange to think about. People are inclined to think in terms of value—how much is your car worth? How much did you spend on that coat? But when it comes to insuring your home, the current market value isn’t necessarily the most important aspect. Keeping yourself protected from financial disaster is.

Susan will be our go to person for new policy sales in our personal lines division.

Her extensive background in the financial industry will provide our customers with a service focused and value driven agent to speak with when a new policy is needed.

Welcome Susan, we are thrilled to have you on the Stanberry Team!

There are many ways to save on home and auto insurance. Be careful, though, not to make mistakes that could result in your being dangerously underinsured.

“When money is tight, it’s extremely important to be financially protected against a catastrophe with the right amount and type of insurance,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the Insurance Information Institute (I.I.I.). “By taking a few simple steps, it is possible to cut costs and still be protected should disaster strike.”

According to the I.I.I., these are the five biggest insurance mistakes that people often make:

1. Insuring a home for its market 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. 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 you 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. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.

Financially strong insurers like Erie Insurance have the financial wherewithal to ensure that  payment is made when it’s due. ERIE has an A.M. Best rating of A+ (superior) with a stable financial outlook. Additionally, ERIE ranks among the 50 top performing insurance companies, according to the Ward Group, which analyzes the financial performance of 3,000 property-casualty companies. ERIE has also won awards for customer satisfaction and claim service by independent organizations.

3. Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Many homeowners are unaware they are at risk for flooding. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies.  Erie Insurance offers coverage through American Bankers.

A better way to save: All types of homes, including condominiums, are eligible for flood insurance. You can even purchase flood insurance to protect your contents if you rent your home. It’s a good idea to start the process as soon as you can because most flood insurance policies have at least a 30-day waiting period before they take effect. If you’re already living in a flood zone area, look at mitigation efforts that can reduce your risk of flood damage. Before purchasing a home, check with the NFIP to determine if it’s in a flood zone; if so, consider a less risky area.

4. Only purchasing the legally required amount of liability coverage for your car. In today’s litigious society, buying only the minimum amount of liability coverage means you are more likely to have to make out-of-pocket payments — and those costs may be steep.

A better way to save: The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury liability protection per person and $300,000 per accident. Also, consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000.

5. Neglecting to buy renters insurance. A renters policy covers your possessions and additional living expenses if you have to move out due to a disaster. 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.

If so, you know that the way you have managed your credit in the past is very important. The information contained in your credit report can have a major influence over many parts of your life, including your auto and homeowners insurance.
Many insurance companies use a credit-based “insurance score” when evaluating insurance applications or policies. This post was designed to give specific answers to questions about insurance scoring, including how and why it is used.

What is a credit-based insurance score? Why do insurance companies use them?

An insurance score uses information from your credit report to predict how often you are likely to file claims, and/or how expensive those claims will be. The way you handle your credit says a lot about how responsible you are. Insurance companies want to reward responsible people by offering them better insurance products and by charging them lower rates. That’s why insurance scores are so useful.

It is important to understand that an insurance score is not the same thing as a credit score. Both are derived from the information found in your credit report, but they predict very different things. A credit score predicts how likely you are to repay a loan or other credit obligation. When you are applying for a loan or some other form of credit, the bank will consider your credit history as well as other factors in determining whether you are likely to repay your debt.

While banks and other lenders will look at your income when making
decisions, insurers do not.

When you apply for insurance, the insurance company orders credit information from one or more of the three major U.S. credit bureaus. This information is entered into a computer program that generates an insurance score. Most of these programs, or “models,” look at things like payment history, collections, credit utilization and bankruptcies. For example, if you have never been late paying your mortgage, you will probably have a better score than a person who pays late. If you have “maxed out” credit cards, that will negatively affect your score. When you apply for coverage and your insurance company orders your score, the credit bureau will make a note in your file that the insurance company looked at the record.

What does my credit history have to do with how I drive my car?

Having a good insurance score does not necessarily mean you are a good driver or a more responsible homeowner. However, research has shown that consumers with better insurance scores generally file fewer claims and have lower insurance losses. That is not to say that all people with low insurance scores are higher risks.

For instance, if you add a 16- or 17-year-old driver to your auto insurance policy, your premiums will very likely increase. This is because, as a group, younger drivers have more claims and losses than those with more experience. That does not mean that all 17-year-olds are bad drivers. Research shows, though, that drivers in that age group are more likely to have losses, so they pay more in premiums. It’s the same thing with insurance scores– research shows that people with certain patterns of behavior in their credit history are more likely to result in losses for the insurance company.

As a result, they pay higher premiums, or, in extreme cases, they might have trouble getting insurance from some companies.

What kinds of things affect my insurance score?

Insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and house payments affect a score positively, while late payments affect a score negatively. Any time someone looks at your credit report, the credit bureaus record this activity – they refer to it as an “inquiry.” The number of inquiries on your record can also affect your insurance score. There are several types of inquiries, but under the models used by most insurance companies, the only inquiries that affect your insurance score are those you initiate. Every time you apply for credit, whether a department store charge card, a new car loan, or “easy financing” on new bedroom furniture, an inquiry is noted on your record. Applying for a lot of credit in a short time shows that you might be taking on more than you can handle. One way to improve your insurance score is to limit the number of self-initiated inquiries in your credit report. This can be done by only applying for credit when you really need it. For example, an unsolicited “pre-approved” credit card notice in the mail would not affect your score, because you did not initiate the offer. If you fill out the form and send it back, though, you are applying for new credit. An inquiry will then be posted in your credit history, which may have an effect on your score.

Credit-based insurance scores look at patterns of financial management. Applying for one credit card is unlikely to have much effect on an individual’s score. But applying for several lines of credit in a short period probably will have an impact. If you are shopping for a car or a house, you may fill out lots of applications within a short period to find the best deal. This shows that you are a responsible consumer. Under most of the models used by insurance companies, applying for several car or mortgage loans over a certain amount of time will only count as one inquiry. Also, most models do NOT consider inquiries you initiate when you are shopping for insurance.

Do credit-based insurance scores discriminate against certain ethnic or income groups?

No. Insurance companies do not consider the following information in the calculation of your insurance score:

• Income
  
• Ethnic group
  
• Religion
  
• Gender
  
• Marital status
  
• Nationality
  
• Disability
  
• Address
  
• Public assistance sources of income

Can my insurance score help me save money on insurance?

Yes. Credit-based insurance scores allow companies to charge lower premiums to customers who are better risks. For most people, a better insurance score, combined with a good driving record, helps them qualify for a better rate.

In recent years, some states have enacted legislation dealing with insurance scores. This information is available from each state’s Insurance Department.

Do I have any rights if I am denied insurance based on my credit history?

Absolutely. If an insurance company takes an “adverse action” against you (such as denying you coverage) as the result of information contained in your credit report, you may obtain a copy of your credit report free of charge from the bureau that provided the information. Again, if you believe there are errors in the report, you should immediately notify the credit bureau – the credit bureau must promptly correct errors.
Can I get a copy of my credit report before I apply for insurance?

For a small fee, each of the three major credit bureaus will send you an updated copy of your credit report.* If you believe there are errors in the report, you should immediately notify the credit bureau. If the information is incorrect, the bureau is required to promptly correct any errors. Contact information for the three major credit bureaus is listed at the end of this brochure.

* Some states have laws which permit consumers to receive one free copy of their credit report each year. As of Jan. 1, 2002, those states were: CO, GA (allows two per year), MA, MD, NJ and VT.

How do credit-based insurance scores benefit consumers?

Credit-based insurance scores can help you qualify for lower premiums, because insurance companies charge lower premiums to customers who are considered more responsible.

• The use of credit-based insurance scores has allowed more companies to offer more products to more people. Since insurance scores have been used, competition in the auto insurance market has increased significantly – and competition quite often leads to more choices and lower costs.
  
• The Federal Fair Credit Reporting Act (FCRA) provides numerous consumer protections.

These include:

• The right to obtain a free copy of your credit report if you are adversely affected (for example, denied coverage) based on information in your credit report
• The right to contest any inaccuracies in your credit report and have
  inaccurate information removed
• Insurance scores can be improved. By using credit wisely – paying activities –  bills on time and exercising responsibility in other financial activities – you can usually qualify for lower rates**

**Insurance companies have different policies with regard to how often they will recheck your insurance score. Check with your insurer to find out their policy.

Contacts and other resources:

Consumer Data Industry Association (CDIA)
(www.cdiaonline.org)
Contact CDIA for information on the credit
report dispute resolution process.
Phone 202-408-8011

Federal Trade Commission (FTC)
(www.ftc.gov)
Visit the FTC’s website for information on credit and your rights
under the Fair Credit Reporting Act (FCRA).

Equifax (www.equifax.com)
For a copy of your report, call 1-800-685-1111.
To dispute information in your report, write to:
P.O. Box 740241, Atlanta, GA 30374

Experian (www.experian.com)
For a copy of your report, call 1-888-397-3742.

TransUnion (www.tuc.com)
For a copy of your report, call 1-800-888-4213.
If you have a copy of your report and wish to
discuss it, call 1-800-916-8800.
To dispute information in your report, write to:
P.O. Box 34012, Fullerton, CA 92831
(for residents of the Western & Southwestern U.S.)
P.O. Box 2000, Chester, PA 19022
(for residents of all other regions)

Written and distributed by:
American Insurance Association
1130 Connecticut Avenue, N.W. Suite 1000
Washington, D.C. 20036
202-828-7100 www.aiadc.org

One word – snow!

• If you have 6″ of snow covering 1,000 square feet of your roof, if it melts it will produce about 1,750 gallons of water.
• Snow accumulating on the ground next to your house can melt and seep in causing water damage and a wet basement.
• Snowmelt flooding in the mountains occur when the snow starts to melt and the resulting water begins to flow because the ground is still frozen and cannot absorb the melted snow.
• Snowmelt flooding is worsened by rains falling over the mountain snow adding to the water that flows into the creeks and rivers.

So here’s what you do to protect your family and property from the dangers of snowmelt.

1. Buy flood insurance now because there is a 30 day waiting period before a policy can take effect.
2. Make sure that downspouts carry water several feet from your house to a well drained area.
3. Move snow on the ground away from the house at least 3-5 feet.
4. If you have a sump pump keep it clean and make sure you have your discharge hose carry the water several feet away from your house. Remember to keep the pipe on a slope to keep it from freezing.
5. Remove show from your yard to a well drained area to minimize soft, wet soil conditions.
6. Anchor any fuel tanks. An unanchored tank can be torn away by flood waters and contaminate the area.
7. Have a licensed electrician raise the electric components about 12″ above your home’s projected flood elevation.
8. Place the furnace and water heater on masonry blocks or concrete at least 12″ above your home’s projected flood elevation.
9. If you keep your washer and dryer in your basement, place them on masonry blocks at least 12″ above your home’s projected flood elevation.
10. Plan and practice a flood evacuation route with your family.
11. Ask an out-of-state relative or friend to be a contact person in case your family is separated during a flood. Make sure everyone in your family knows the name, address, and phone number of this person.

Stanberry Insurance is having a customer referral contest starting January 3rd 2011 through March 31st 2011.

The prize up for grabs is a 42″ LG 1080p LCD HDTV!

All you have to do to get your name entered into the random drawing is recommend everyone you know or meet to go to stanberry-ins.com/refer, and enter your name in as the person they were referred by. If the information we receive is a qualified referral, you will get THREE entries into the drawing that will take place on Friday, April 1st, 2011.

How does a referral become a qualified referral?:

• The person you refer fills out the form and electronically authorizes Stanberry Insurance to contact them
• Stanberry Insurance is able to contact the referral and complete a quote
• The referral has not had a personal insurance policy with Stanberry Insurance within the prior 365 days

Here are some frequently asked questions (updated 1/3/11):

• Q: Do I have to have a personal policy with Stanberry Insurance to refer someone to you to get a quote? →A: No.
• Q: Can I refer myself and use this as an entry? →A: No.
• Q: Does the person I refer to you have to buy the policy you quote for them? →A: No.
• Q: How many times will you attempt to contact the person I refer to you? →A: We will attempt to contact the referral three times; if we do not receive a response we will not attempt again unless prompted by the referral.
• Q: Can members of your staff win this TV? →A: No, staff members nor their immediate family are not eligible for this contest.
• Q: Do I have to purchase anything to win? →A: No
  
• Q: Where can I find out more about the TV you are giving away? →A: Click here for details from the LG website.
• Q: The people that I want to refer do not have internet access, how can I refer them →A: Write to us to at Stanberry Insurance Referral Contest  c/o Ken Peck   715 E Main St    Sylva, NC   28779. We will send you three postage paid postcards that your referrals can fill out and mail back.
  

The federal grant provides funding to improve health insurance premium review processes

RALEIGH — Insurance Commissioner Wayne Goodwin today announced that the N.C. Department of Insurance has been awarded $1 million in federal funding to help the agency implement requirements under the federal Patient Protection and Affordable Care Act, specifically for making improvements to the current health insurance premium review process.

“A little over a month ago, our staff submitted the premium review assistance grant to the federal government. I am pleased that North Carolina was approved for this funding,” said Commissioner Goodwin. “The Department of Insurance has a lot of work ahead of us to implement the new federal health care reform initiatives. We will use this federal funding to review our existing procedures, hire new staff and improve consumer outreach specific to approving rate changes to health insurance plans.”

The Department’s grant application identified the following measures to improve the rate review process in North Carolina:

• Seek outside review of actuarial processes to determine areas of improvement in the process.
• Seek additional authority to expand prior rate approval to small and large employer group health and association group health plans via the N.C. General Assembly.
• Hire additional staff to accommodate increased rate filings and their review.
• Increase transparency and accessibility:
  • Improve the access and readability of rate filings that are currently posted on the Department’s website.
  • Seek authority via the N.C. General Assembly to require insurers to create consumer-friendly summaries and increased public information for rate filings.
  • Seek input and consider planning for public comment and public hearings on rate requests.

A copy of the grant application is available on the Department’s website, www.ncdoi.com/healthcarereform.

Consumers with questions about the PPACA legislation may call the Department’s consumer helpline, 1-800-546-5664, or visit www.ncdoi.com/healthcarereform.

Photo by: Mark Haskett

Providing insurance may be the Stanberry family’s specialty, but the company’s owners have yet other forté — serving their community.
“We want to make it a better place in our own little way,” said Scott Stanberry, who co-owns the business with his brother Kevin.
The Stanberrys have found multiple avenues to staying involved in Jackson County, from coaching Little League baseball to collecting cans for food drives to consistently being a lead donor in local walks to end cancer.
Kevin and Scott say they are just eager to give back to the community they’ve called home for decades.
“We’re from here so we definitely stay involved and try to help out,” said Kevin.
The Stanberrys’ commitment to the community is evident to anyone who drives past their Sylva office. Instead of using the marquis outside for promotional purposes, the company opts instead to display community-focused messages.
Recently, the marquis invited passersby to drop off teddy bears for children in need. This free advertising helped build up a pile of teddy bears in a big cardboard box inside the Sylva office.
Every year, Stanberry Insurance employees take part in a charitable Christmas project, with the latest one involving collecting food to give away in backpacks to hungry children.
Stanberry Insurance also regularly contributes to local nonprofits and sponsors local sports teams. Athletes in elementary school all the way to those at Western Carolina University receive financial support from the company.
Having a commitment to the community while simultaneously operating a successful business is a skill Kevin and Scott learned while growing up. Their father would wake up each day at 5 a.m. to get work done and still have time to coach Little League baseball and make it to Kevin and Scott’s baseball and basketball games.
Kevin and Scott have learned well from their parents, expanding the business to two new locations in Waynesville and Highlands since taking over. When their father and mother opened Stanberry Insurance in 1980, they only had one other employee. Now, the number of employees has swollen to 30.
Though everybody at work isn’t a Stanberry, a family atmosphere still persists at the office.
“We have people who worked for our parents that still work for us,” said Kevin.
But it’s not just the employees that want to stick around.
“This is home,” said Kevin. “I don’t think of ever living anywhere else.”

Published in Our Town 2010 • Vol. 5

Distributed by the Jackson County Chamber of Commerce