Closing the Gap: Do I need Gap Insurance in Redmond, WA?

September 17, 2013 By Tosten

Congratulations, you just bought a new (or new to you) car! You were able to afford a down payment and now you are the proud owner of a new car and a monthly car payment. But, what happens if your car becomes involved in an accident and you owe more than your car is worth?

Imagine this scenario: While out enjoying your new car, you hydroplane and hit a guardrail damaging your new vehicle beyond repair. The insurance company is telling you that your new car is a total loss. While you may not be able to drive the vehicle, you are still responsible for the loan associated with vehicle. If you have gap insurance in Redmond, WA, you may be only responsible for your deductible.

How gap insurance in Washington works:

What is depreciation: Vehicles, especially new vehicles, begin to depreciate as soon as you drive them off the dealer lot. Depreciation can be quite surprising and is not necessarily tied to the base cost of the vehicle. Due to wear-and-tear, fluctuating market conditions and a number of other factors, depreciation in the first year is the steepest. Even with proper care and maintenance and no accidents, a vehicle will continue to depreciate. Even though the value of the vehicle will go down each year, the amount you owe on the vehicle will not. Depreciation will vary between make and model but here is a baseline comparison:

Year	Vehicle	Style	Base price	Depreciation year one
2013	Subaru Legacy	2.5i sedan	$21,295	$3,069
2013	Honda Civic	Base sedan	$22,715	$4,406
2013	BMW	328i sedan	$34,900	$5,198
2013	Ford	F-150	$28,595	$5,915
2013	Toyota	4Runner	$37,155	$6,380

*Figures courtesy of automobilemag.com

Why gap insurance: In the unfortunate event that your vehicle is totaled, and it is an event covered under your current auto insurance policy, your insurer may pay the actual cash value of the vehicle, which may be significantly less than the outstanding vehicle loan. In that case, you would still be responsible for the remaining balance between the loan and the insurance payout, which could be thousands of dollars. If you choose to purchase gap insurance in Redmond, Washington, your insurance company would cover the remaining balance between the actual cash value of the vehicle and the remaining loan balance, typically up to 25 percent, potentially saving you thousands of dollars.

Options for gap insurance: There are two options for purchasing gap insurance in Redmond, WA. It can be purchased from the dealership or through an insurance agent. If you choose to purchase gap insurance through the dealership you purchase your vehicle from, the gap insurance will be built into your loan. The average price for gap insurance from a dealership is around $1,000, but add interest and taxes and it can add up to much more. If you choose to purchase gap insurance from an insurance agent, on average it would add less than $10 per month to a policy! There may be certain stipulations associated with a gap insurance policy:

The loan may need to be through a financial institution rather than an individual
Your current auto insurance policy may need to include Collision and Comprehensive coverage
Your claim may need to be a covered Collision and Comprehensive coverage event
Your vehicle may need to be determined as a total loss

Before you purchase a new vehicle, make sure to check with your licensed insurance agent in Redmond, Washington to see how you can add gap insurance to your new vehicle policy. The local, independent agents at Chess Insurance Agency can assist you with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.

Sewer & Water Backup – a Nasty Possibility

March 15, 2013 By Tosten

There is a phrase that can strike fear into the heart of any homeowner in Redmond, WA: water or sewer backup.

With fall and spring typically being the two wettest months in the U.S., it is important to inspect our homes for susceptible sewer or water backup in our drain lines. There are certain steps that a homeowner can take to reduce the risk of a water or sewer back-up crisis.

Check around the home, foundation, basement, etc. for cracks that water or sewer waste can enter. Repair and fill any cracks
Ask a plumbing professional to see if your system can accept a shut-off valve to be used in case of a back-up emergency. Your insurance agent can refer you to licensed professional.
If you live on or below a floodplain take steps to ensure that furniture and valuables are stored above the flood line.
Do not pour grease down sinks or toilets
If a water or sewer back-up occurs do not attempt clean up without protection: gloves, face masks and eye protection.

Generally a water or sewer back up is caused when heavy rains or floodwaters over run the sewer system as well as your sump pump. Debris from rainstorms or natural disasters can also clog the system, potentially causing a nasty mess to push backwards into your home.

While you may have a homeowners policy a claim from water or sewer back-up can be costly and typically is not covered by your traditional standard homeowners insurance policy. This is a separate endorsement that your agent can add to your policy to ensure you’re covered in the event of such a claim. Homes that are located on hills, mountains, or other raised plateaus may have a lower likelihood of a water or sewer back up than homes located on low or flat plains, but that does not exclude them from having these issues. Any home can have a water or sewer backup claim

Talk to your Redmond, WA insurance agent to determine whether or not a water or sewer back up policy or endorsement is right for your home.

Jewelry Insurance Protection for Valentine’s Day

February 7, 2013 By Tosten

Protect your Valuable Valentine’s Day Gift with a Jewelry Endorsement to your Homeowner’s Insurance Policy

You have painstakingly perused through the mall jewelry stores and online retailers to find the perfect “I love you” gift for Valentine’s Day. It is purchased, wrapped and you are anxiously waiting to see the look of joy on your sweetie’s face come V-Day. According to a 2013 survey by the National Retail Federation, approximately $4.4 million will be spent on jewelry this Valentine’s Day, but only 1 in 10 will have their jewelry insured.

Homeowner’s insurance in Washington and renter’s insurance in Washington can cover loss or theft of jewelry, but generally it is a very small amount, sometimes as little as $500. Even then it may not cover the loss of item if Junior flushes it down the toilet or it gets mangled in the garbage disposal. Having a separate valuables policy can help ensure that you are reimbursed for the value of your item(s) should a claim be necessary. In the event of a claim, you can make the process easier for yourself and your agent:

Photograph items that are included in your valuables policy.
Keep receipts or appraisal records, this makes it easier to establish a price value for your items
Have a written record of items, update as new items are purchased
Update your agent as new items are purchased

Often these polices can include other valuable items likes art, fine wine, crystal, etc., and there may be little to no deductible if any items need to be replaced. One can also apply this list to household appliances and electronics, because while the flat-screen may not be as valuable as great-grandma’s vintage Tiffany’s wedding band, it is still a good idea to photograph and keep a running list of all household items to help make the claims process easier and establish value in the event of theft or loss.

Call your agent today and ask how we can help you add a separate valuables policy to your existing homeowner’s or renter’s insurance policy today!

Chess Insurance: 425-392-1588