New Minimum Limits for Auto Insurance in Ohio

Beginning December 22nd, 2013, minimum liability limits for auto insurance in Ohio will double, going from the current minimum of $12,500 per person and $25,000 per accident to $25,000 per person and $50,000 per accident.  Here are a couple things to consider about this new minimum limit.

1. Current minimum limits are $12,500 per person and $25,000 per accident. This means that if you are in an accident, your insurance will pay up to $12,500 to each person injured in the accident, but no more than $25,000 for everyone injured in the accident. The new limits ensure that the driver has double the coverage.
2. Minimum limits are meant to protect those that are injured in an accident, not the driver. As a driver, it is HIGHLY recommended that you have more than just minimum coverage.  If you are involved in a fatal car accident, you could potentially be liable for well over $25,000.  If you are tried in court and found liable, your assets can be seized, and your wages can be garnished... all because you wanted to save some money on your car insurance!

If you own a home, savings, 401(k), cars, or any other assets, you need to have more than minimum state coverage.  In the event of a serious accident, your liability limits offer you protection. If you have only $25,000 in liability coverage on your car, and have a serious accident, you could be sued.  If you are sued, your insurance will still only pay $25,000 per person, which means you could lose your home, cars, savings, 401(k), and any other assets.

If you currently have minimum coverage, your next renewal will include the increase to $25,000/$50,000.  I highly recommend you consider taking the time to review with an insurance agent the implications of this increase, and even consider a higher increase in coverage to help protect your assets.

Fire Prevention Week: Home Sprinkler Systems

We are half way through Fire Prevention Week, and I wanted to write about something that most people I talk to have never considered: home sprinkler systems. We all know that hotels, high rise buildings, and restaurants have them, but can a home have a sprinkler system? YES! And there are a number of reasons why they should:

1. They are cheap improvements to a home!  The average cost of installing a system in an existing home was $1.27 per square foot last year.  For a 1,200 square foot home, that's only about $1,524.  Before you tell me that's a lot of money, consider that it costs about the same to repave a driveway, and about half the cost of a new roof.  There's a big reason that a home sprinkler system is a better investment than either of those...
2. They can significantly increase the value of a home.  Homes with a sprinkler system typically resale for more and quicker than homes without a sprinkler system. There are also discounts available on home insurance, typically 8-16%!
3. Smoke detectors are good, and every home (and every room in a home) should have one. However, smoke detectors are only good at alerting occupants to a potential hazard. They are no good at putting out a fire!  A home sprinkler system can be used in conjunction with smoke detectors, and have a much higher probability of containing the fire before it is out of control.

There are a number of concerns about home sprinkler systems as well.  I would like to address a couple of those concerns right now:

• A home sprinkler system will flood my whole house! Wouldn't it cost me or my insurance company regardless of whether my home is damaged by water or fire?

Actually, a home sprinkler system uses 10X less water than a fire hose! Plus, the home sprinkler system won't flood the whole house. 85% of the time, only one sprinkler head will activate: the one closest to the fire. The water damage would be minimal compared to the fire damage AND water damage if the fire department has to put the fire out.

• There is too much chance of the sprinkler system getting a leak and flooding my house!

Highly unlikely that would happen. In fact, because of the testing that home sprinkler system go through (with water pressures that are 2 to 3 times what they will experience once installed), it is more likely that your home plumbing will leak before your home sprinkler will.

I hope you find this information useful, and I thank you for taking the time to visit!

Fire Prevention Week

The second week of October is Fire Prevention Week, and Erickson Insurance Agency wants to help you make sure you are ready!  Here are some Fire Facts to keep in mind:

• 2/5 of all home fires start in the kitchen
• Seven people die from home fires each day in the US.  Cooking is the number one cause of home fires, while smoking is the number one cause of home fire deaths.
• 34% of all home fires are caused by unattended cooking. 
• Stove Top/Ranges accounted for 58% of all home cooking fires.
• 62% of all home fire deaths resulted from fires in homes with no smoke alarms or no working smoke alarms.
• Almost 75% of all Americans have a fire escape plan for their home, but less than half have ever practiced it.

Here are some tips to ensure you and your home are prepared:

• Keep a mutli-purpose fire extinguisher near an exit in your home.  Make sure that it is certified by an independent testing laboratory, and that you know how to use it.
• Ensure that smoke detectors are installed inside of each bedroom, outside of each sleeping area, and on each level of the house.
• Change the batteries in a smoke alarm twice a year. Changing them at the same time you change your clocks each year helps you to remember to change them.
• Each of these tips should be just a part of your Fire Escape Plan. The number one rule of a house fire is to ensure everyone knows how to get out of the house.

In addition to these tips, make sure to speak to your insurance agent about saving money on your home insurance because of fire extinguishers, smoke alarms, and other safety devices.

For more information on Fire Prevention Week 2013, go to Fire Prevention Week 2013.

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