Oklahoma City Tornado

It is amazing the damage done by the tornado that ripped through Moore, OK. Tens of millions of dollars of damage. The loss of life. That city seems to be right in an alley where tornado’s have historically traveled. Makes me wonder if people who move there have trepidation about the likelihood of this sort of thing happening in the future. The future is here…again.

In the metro Phoenix, Arizona area we don’t face tornado’s, or much in the way of hail damage. Sometimes we have fierce winds and heavy rains. Not often but I have seen them and dealt with some of the claim aftermath.

However, we do have other types of threats from causes such as fire, water loss and burglary.

When is the last time you received your annual homeowner renewal and really looked through it? I don’t necessarily mean all the fine print from cover to cover (though even that is advisable) but rather at least the main points of coverage information and the sections detailing what is covered and what is excluded?

Perhaps you need to let the Oklahoma loss and devastation remind you that it is worth 25 minutes of your life to take a careful look at your insurance. Understanding your coverages and policy limitations only serve to help you through the difficult process of a claim should it happen.

Minimum Auto Limits

The State of Illinois is considering raising their minimum auto insurance limits – the first such change in 24 years. Currently the state allows drivers to carry a minimum $20,000 bodily injury and $15,000 for property damage.

That means if someone hits your vehicle and you become injured the insurance will only pay out up to $20,000. Your vehicle damages will only be covered up to $15,000. Those limits may work for some claims but certainly not all, leaving some victims in a financial bind simply because someone else chose to cover low limits.

The new limits will raise the BI to between $25,000 – $50,000, depending if one person injured or two or more. The increase in premium is expected to be around $75 for the typical consumer.

Perhaps you are wondering then what Arizona’s minimum auto insurance coverage limits are? Bodily injury is $15,000 per person up to $30,000 and property damage is $10,000. Those are woefully low and an embarrassment to our state. Low limits like these put innocent people at personal and financial risk.

I hope at some point soon this issue will be taken up by someone in the Arizona legislature and the responsible thing done.

Insurance and the professional athlete

Many kids grow up dreaming of playing professional baseball, basketball and football (sorry hockey). The odds are so small however. Even the best athletes can run into injuries or even greater competition and never make it.

Peyton Manning is one of the lucky ones. He recently signed a contract with the Denver Broncos for $20,000,000 per season for 2013 and 2014. And in reality it probably is a bargain for Denver as their team will likely continue to compete for a Super Bowl as long as Manning is behind center.

As part of his contract Manning and the Broncos also agreed to add insurance to his contract that would wipe his salary off the books if he reinjures his neck. Ironically, the insurance policy does not cover the parties if he is injured for any other reason, just the neck.

In 2012, Manning threw for over 4,600 yards for 37 touchdowns and 11 interceptions.

I was unable to determine how much this insurance policy cost but it is merely the cost of doing business in professional sports.