In the October issue of Consumer’s Report, Erie Insurance was rated one of the best insurers in the country when compared to several high profile national insurance companies.  We found this to be interesting and worth of note that Erie Insurance should be rated against national insurance companies.  You see, unlike the other companies in the comparison, our geographic area is eleven states and the District of Columbia – not the entire nation!

Don’t get us wrong!  We’re not surprised at all with the favorable comparison.  Nor are we surprised at all that we rated so well against the ‘big folks’.  From our modest start in 1925 as a Pennsylvania automobile insurance agency, we’ve blossomed into a multi-line insurance agency with a wide network of independent agents who work together to carry out our founding purpose:

“To provide our Policyholders with as near perfect protection, as near perfect service as is humanly possible and to do so at the lowest possible cost.”

At ERIE, we adhere to disciplined underwriting, fair pricing and a prudent investment philosophy. These factors have contributed to our ability to earn consistently superior ratings in the insurance industry. The combination of a quality agency force, a commitment to customer service, and the financial stability provided by Erie Insurance Group assures you that we’ll be there when you need us most.

Yes, that is what it says on our Website at www.erieinsurance.com.  You can read all that and more.  But let’s take a closer look at that founding purpose and what it means to you:

To provide our Policy holders with:

• As near perfect protection – which means that your Erie Agent is going to take the time to design a policy that meets your needs…that he or she is going to take the time to know you and to really understand what your needs are!  His job is to get you the protection you need…and, because he is your local agent, his reputation depends upon it.
• As near perfect service as is humanly policy – herein lies the difference between Erie and the other guys.  We know you.  We’re not that company that some voice from California debates with you whether you’re covered or not in an emergency.  We are your local agent who comes to you, assesses the situation, and gets you relief!  Right then!  Right there!
• Other awards Erie Insurance has won

Don’t get swallowed up by the system!  Consider Erie Insurance as your primary care insurance company.  In Wayne County, contact RJ Muto at Eastgate Insurance, Inc. at 315-333-5710, 1266 Ridge Rd., Ontario, NY 14519.  You can reach him at rj@eastgateins.com

Understanding Homeowners Insurance

A standard homeowners insurance policy includes four types of coverage:

Coverage for the Structure of your Home and Other Structures

This part of your policy pays to repair or rebuild your home for damage caused by most common risks. Typically, damage caused by fire, wind, hail, or lightning is covered under this part of the policy. Insurance for flood, earthquake, water and sewer backup damage must be purchased separately.

Most standard policies also cover structures that are detached from your home such as a garage, tool shed or gazebo. Generally, these structures are covered for about 10-20 percent of the amount of insurance you have on the structure of your home.

When deciding on the limits of your coverage — the maximum amount the insurance company can pay — make sure that your policy covers the cost to replace the structure, not market value or just what you still owe on it.

Coverage for your Personal Belongings

Whether the contents of your house — furniture, clothing and other items — are stolen or destroyed in an insured disaster such as a fire, they are covered under this part of the policy. Most companies provide coverage for about 50-75 percent of the amount of insurance you have on the structure of your home.

Conduct a home inventory to determine if that’s enough coverage for your personal belongings. If the amount is insufficient, or if you have particularly valuable items like fine art and jewelry, you may need to purchase additional coverage, called a floater.

Additionally, most homeowner policies contain internal sub-limits for such items as guns, furs and silverware that can limit the amount of recovery. Also, most policies limit contents coverage for property kept at an additional residence. Buying specific coverage may be the best option for maintaining full coverage in these instances.

Standard homeowners policies also provide limited coverage for trees, plants and shrubs as well as unauthorized use of your credit cards.

Coverage for Additional Living Expenses

If the damage from a fire, storm or other insured peril forces you out of your home, this part of the policy covers the expenses incurred while your home is being rebuilt. Many policies provide coverage for about 20 percent of the insurance on your house or limit coverage to expenses occurred over a twelve month period. Our policies do not permit an increase in this coverage.

If you rent out a portion of your house, additional living expenses coverage also reimburses you for the rent that you would have collected from your tenant if your house had not been damaged or destroyed.

Liability Protection

Liability protection covers you against claims or lawsuits for bodily injury or property damage that you or your family members negligently cause to other people or property. It also pays for injury or damage caused by pets.

So if your son, daughter or dog accidentally ruins your neighbor’s valuable rug, you’re covered. But if they destroy your rug, your liability coverage does not provide compensation.

Your policy also provides medical coverage. In the event a friend or neighbor is injured in your home, he or she can submit the medical bills to your insurance company. Expenses are paid without the injured party filing a liability claim against you. Liability coverage pays for both the cost of defending you in court and any court awards up to the limit of your policy. This coverage applies anywhere in the world.

You can also purchase an umbrella or personal catastrophe liability policy to provide broader coverage, including claims against you for libel and slander, and higher liability limits.

Additional Homeowners Coverage Options

• Replacement cost. The policy pays the cost of rebuilding or repairing your home, or replacing your possessions without a deduction for depreciation.
• Sewer or drain water back-up. This insures your property for damage caused by the back-up of sewers or drains. Water back-up may not always be included in a policy. Check with your ERIE Agent for more details.
• Umbrella or personal catastrophe liability. This is a way to add more liability protection and broader coverage to your standard policy.
• Earthquake insurance. Homeowners policies typically don’t automatically include earthquake insurance, but it can be purchased as an optional endorsement.
• Flood insurance. Like earthquake insurance, flood insurance is excluded from most homeowners policies and must be purchased separately through the National Flood Insurance Program.
• Coverage for valuables. If you own expensive jewelry, electronic equipment or collectibles, you may want to purchase additional coverage such as an inland marine policy. Although these items are protected by your policy, coverage for theft or loss is limited.
• Identity protection. Identity Recovery Coverage is designed to help you restore your credit in the event of identity theft.

Understanding Business Insurance

The success of any business depends on hard work and ingenuity. Business insurance ensures that all the effort and money you have invested in your business is covered in case a disaster strikes. In general, businesses need to purchase at least the following four types of insurance:

• Property insurance compensates you if the property you use in your business is lost or damaged by common perils such as fire or theft. Property insurance covers not just a building or structure but also what insurers call business personal property.
• Liability insurance protects you in the event that someone claims that your business caused him or her harm. Your liability insurance pays damages to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits, as well as legal fees. It also covers the medical bills of any people injured by your business.
• Business vehicle insurance provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits. Depending on what kind of coverage you buy, the insurance may pay to repair or replace your vehicle because of damage resulting from accidents, theft, flooding and other events.
• Workers compensation insurance or workers comp, as this coverage is generally called, pays for medical care and replaces a portion of lost wages for an employee who is injured in the course of employment, regardless of who was at fault for the injury.

Other Types of Policies You May Need

In addition to the basic coverages highlighted above, there are various other policies needed by some businesses, including the following:

• Business catastrophe liability or umbrella policies provide coverage over and above your other liability coverages. It is designed to protect against unusually high losses. For the typical business, the umbrella policy would provide protection over and above general liability and auto liability policies.
• Specialized liability insurance policies are designed to meet specific needs of individual businesses specialized for liability policies needed by some businesses. They include Errors and Omissions Insurance (E&O)/Professional Liability Insurance, Employment Practices Liability Insurance (EPLI) and Directors and Officers Liability Insurance (D&O).
• Terrorism insurance is offered to owners of commercial property as mandated by the Terrorism Risk Insurance Act, enacted by Congress in 2002. Insurance losses attributed to terrorist acts under these commercial policies are insured by private insurers and reinsured by the federal government.