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MAY YOU LIVE IN INTERESTING TIMES… March 25, 2020

As we begin our second week of shelter in place as a result of the corona virus aka COVID19 we are beginning to see all kinds of emotions, from fear to anger to despair to acceptance and to coping with our new norm for the foreseeable future.

We at the McGann Insurance Agency have no clue as to how long we will be living with these dramatic lifestyle changes, but we are planning as if this will be a long-term event. All members of your insurance team are operating remotely from their homes and while there are still a few bugs to work out, please be assured we are here for you in these times of uncertainty.

Some of you might have lost your jobs or are afraid that may a possibility, so dollars will need to be allocated prudently and we are committed to helping you reevaluate your insurance program to fit your “new norm”.

Here are some strategies that you may wish to consider:

AUTO Insurance:

1) Non-op that extra vehicle (or two) and drop the insurance all together.
2) Drop collision and or comprehensive on vehicles you rarely drive or are worth less than $4000 (arbitrary number). Collision rates average about 30% of your insurance premium.
3) Sell you higher priced vehicle that you’ve been commuting in and purchase an older model, reliable, “around town” car.
4) Adjust the estimated annual mileage with us, insurance rates are based on exposure and if you are driving significantly less you should pay less premium.
5) Take that senior defensive driving class! Folks 55 and over get up to 10 % discount off their premiums.

HOME Insurance

1) Increase your deductible since you are home more, you are less likely to have that theft or major “burst water pipe” claim.
2) Jewelry floater: Consider dropping. You may not be wearing that special piece enough to warrant the expense; but, keep in mind the floater does cover loss if you lose the ring, so if you take it off regularly while gardening or doing dishes you may want to keep the coverage.
3) Earthquake insurance: consider adding, changing or dropping coverage. In the Bay Area the California Earthquake Authority (CEA) rates have jumped dramatically. We have alternative earthquake insurance markets that may offer significant savings. Outside the Bay Area the CEA premiums are cheap! You may be able to pick up a CEA policy for as little as $100 per year which entitles you to a 5% 7% discount on your Farmers Home and 5% discount on your Farmers Auto on your Farmer’s home insurance policy.

LIFE Insurance:

1) If you have a flexible policy like a universal life policy you may be able to temporarily discontinue paying the premiums and let the dollars you have already contributed into your “cash” accumulation” account work for you.
2) If you have recently lost your group life insurance benefit from work due to the loss of a job, we may be able to help by getting you an affordable 10-year term life insurance policy.

BUSINESS Insurance

1) Business shut down: This is a tough one. At this point in time it is unlikely Farmers will pay the Business Interruption coverage, unless the business interruption was caused by a covered insurance peril such as fire, vandalism or water damage. You may ask your landlord for some rent forgiveness.
2) Workers Compensation Insurance: premiums are based on payroll, which may be significantly less if you have had a reduction in payroll.
BOATS, MOTOR HOME, MOTORCYCLE, JET SKIS ETC.
1) Possibly sell the “toy” that you haven’t used and will not use for the foreseeable future. OR
2) Drop or reduce the coverage on that unused “toy”.
3) Alternatively, maybe it is time to buy that new boat or motor home that you can operate your new “home office” from!
4) If you have “toys” that are insured with another company, let us know. If we switch them to Farmers, we can get you extra discounts – up to 12% on your Farmers Auto.

HEALTH Insurance

We are authorized representatives of COVERD CALIFORNIA health insurance. Because of the coronavirus and the loss of many jobs, Covered California has re-opened enrollment that offers consumers the chance to add or modify their health insurance plan. You may now be entitled to a greater subsidy if your projected income for 2020 has reduced significantly.

Sorry for the lengthy list of examples, but we want you to know there are insurance solutions out there! And it is our duty to inform you. We look forward in the days, weeks and months ahead to do whatever we can to help in these INTERESTING TIMES!

Thank you for your business, be safe, care for each other and God Bless.

With gratitude, your friends at McGann Insurance: Mike, Laurie, Jasmine, Glenda and Scott.