Insuring Cash

Most home insurance policies cover the damages associated with theft. If your home is burglarized and your contents taken, you may be able to receive benefits equal to the actual or replacement value of those items. If you have cash or its equivalent in the home, that may be covered by your policy as well.

Cash and Equivalents: What’s Covered

If you have cash, coins, gift cards, and even foreign currencies in your home and they’re stolen or damaged by fire or other covered perils, your insurance company will cover the damages as outlined by your policy. Your policy deductible will still apply but your coverage for cash and its equivalents may have its own limit separate from your general contents limit. It's important to make note of the limits on coverage for cash to ensure that the money you keep on hand does not exceed what you can get reimbursed.

When considering coverage in terms of theft, a typical break-in is not the only situation that could result in stolen cash and its equivalents. There are many individuals who enter your home and have access to cash hidden inside; any of them could take it without your permission. This includes neighbors, party guests, service providers and even friends and non-resident family members.

What isn't Covered

If you lose or misplace your cash and it isn't stolen or damaged in an insurable incident, then your insurance company is not likely to pay the claim. Likewise if cash is stolen from you while you are away from home it may not be covered.

Another instance in which the damage to or theft of your cash might not be covered is if the cash was received through an illegal activity or while you operated an unreported business in your home. Your home insurance company must be aware of any business activities you operate in the home or your claim could be denied and your policy rescinded.

Proving the Existence of Cash

It's critical that you keep records showing that you obtained the cash that you report as stolen or damaged. You can use a bank statement or deposit receipt showing a cash withdrawal, ATM receipts, or possibly even a handwritten bill of sale. Your insurance company may, in the event of a theft, ask for a copy of the police report as well.

If you want to know more about how your Oklahoma City home insurance policy protects you, or you want to increase your limits, give us a call at Alexander & Strunk Insurance today.

How Life Insurance Insulates Heirs from Market Risks

Legacy planning is an important topic for most individuals who have children and grandchildren. The ability to leave behind assets that can work to substantially ease the future financial burden faced by heirs is a powerful motivator to many and creates the ultimate reward after a life spent working hard.

While all of your assets can contribute toward your overall legacy, one of the most important assets to have is a life insurance policy. A life insurance policy not only ensures your heirs a certain amount of money upon your death, it also helps to insulate them from the market risk your other assets may bring to the table.

Investment Losses vs. Life Insurance

When you leave an investment portfolio to your heirs, there is nothing that protects them from a swift decline of stock values after your death. This decline can occur no matter how carefully you researched and invested because stock prices are based on much more than just the value of a company. In fact, a global economic crisis that does not directly impact the companies you've invested in could still result in lost value for your heirs at a time when they can least afford to face it.

With a life insurance death benefit, even in a variable policy, the death benefit is predictable and secure as long as there was no misrepresentation on the application for coverage, no outstanding loans against cash value, the death was not caused by one of the excepted situations, and the premium has been paid on time. No matter how the market fluctuates after death, that benefit remains the same.

Assets and Estate Taxes

A decline in the value of the assets you plan to leave behind does not have to occur just after your death, it can even begin occurring while you are alive and there is little you can do to stop it other than sell your assets, take losses, and then find another place to invest your money. On top of the losses, your heirs may also be required to pay estate taxes, especially as the estate tax exemption falls substantially in 2013. With a life insurance policy, as long as there are no instances of ownership, your heirs can likely avoid estate taxes no matter the exemption amount.

If you are ready to strengthen your estate plan with a life insurance policy, give us a call at Alexander & Strunk Insurance today. We can help you create the best, most effective plan for your heirs.

The Truth about Cyber Risks

In 2008, IT security company Panda Security conducted an assessment of the remittances sent from US companies to international banks. They found that 30 percent of the 1,500 computers they monitored that were involved in these transactions had virus software that was outdated. Even more alarming was the fact that 60 percent of these computers were actively infected by a virus that could have been stealing valuable information from them. That means that only 10 percent of the monitored computers were both free of viruses and protected from potential virus and malware attacks.

Cyber Theft and Your Business

Every business, even one with active anti-virus software, is exposed to cyber risks such as:

• Interception of wire transfers
• Credit card fraud
• Identity theft

You owe it to your clients to protect their data and sensitive information as you would any tangible asset that you had in your possession. But with technology changing so rapidly, it’s almost impossible to guarantee complete protection against cyber theft or fraud. That’s why a cyber theft insurance policy means so much to the success of your business—it can protect you when you are unable to protect your clients.

Hidden Risks

And while you might think your business doesn't have anything of value for a cyber thief to steal, you could be incorrect. For example consider how vital your prospect list is to your company. Without that list of would-be clients to tap into, you would have little opportunity for success in the immediate future and instead, would need to spend your time building up another list. Should a thief decide to breach your computer's security system and take this list, it could result in your prospects’ information being distributed which could erode trust between your company and your prospects and severely limit your future success. Meanwhile that prospect list could be sold to another company who could benefit from your work.

Cyber risk insurance can protect you from risks you didn't even know you faced, which is important because you don't have to be able to imagine the value of the digital information you hold in order for someone to try to steal it from you. When you are ready to protect your business and begin shopping for cyber risk insurance give us a call at Alexander & Strunk Insurance. We can help you understand exactly how this important benefit would protect your company and create a policy with an Oklahoma City Insurance premium you can afford.

Post-Divorce Insurance Adjustments

A divorce can change your entire life almost overnight. It can change where you live, how you live, and what kind of insurance you need. If you're going through a divorce, here are some adjustments you should consider making to your insurance portfolio.

1. Change life insurance beneficiaries: If the current beneficiary of your death benefit is your soon-to-be ex-spouse, you need to consider who you want your new beneficiary to be. You can leave the benefits to a relative, close friend, your children, funeral home or a trust.
2. Get health insurance: If you're currently on your spouse’s health insurance plan then after your divorce you will qualify for COBRA coverage. However you will be limited to the options available on your ex-spouse's insurance policy and you will be subject to COBRA premiums that can include an additional administrative fee. Instead, you might consider getting your own individual health insurance policy with the coverage options you want, the network of doctors you prefer, and a premium you can easily afford.
3. Renter’s insurance: If you are not keeping the home that you and your spouse occupied and are instead moving into an apartment, then you need to consider replacing your Oklahoma City home insurance. A renter's insurance policy not only covers the risk of financial loss to the contents within your apartment (such as your electronics and furniture), but it also covers your liabilities should someone be injured when they're visiting you.
4. Long- and short-term disability: Should you become disabled after divorce you no longer have your spouse’s income to rely on. That makes it very important that you have your own long- and short-term disability policies. That way you can supplement your income after a disability without waiting for Social Security’s approval and waiting period.
5. Auto insurance coverage: Chances are good you shared an auto insurance policy with your soon-to-be ex-spouse. If that is the case then you need to quickly get an auto insurance policy for yourself. Your individual auto insurance policy will not only comply with state mandated insurance regulations but will also cover those events that concern you such as collision, theft and vandalism.

When you're going through a divorce, the last thing you want to think about is how it will change your insurance policies. But to ignore the impact divorce can have on insurance is to ignore the financial risks you face as you head into your new, single life. Give us a call at Strunk Insurance and we can work with you to make all the necessary changes with your new budget in mind.

Should You Keep Insurance after a Job Loss?

After losing a job, you will likely consult your budget and try to find ways to reduce your cost of living during this unexpected and financially challenging period. Unfortunately, many individuals look at their various insurance policy premiums as acceptable expenses to cut. They may begin the process by increasing deductibles and lowering limits in order to adjust premiums down. Then, they may chop out various “optional” benefits within their policies and finally, they allow coverage such as life insurance, which isn’t required by the state or a lender, to lapse through non-payment of premiums.

Treating insurance coverage this way can be one way to reduce immediate expenses, although it’s an activity that can be financially devastating over the long haul. The less insurance coverage you have, the more risk you bear; and after a job loss, you can’t afford any additional financial risk.

Why maintain life insurance? Your family needs life insurance in order to keep their financial lives together after a loss. When you lose a job, your financial position becomes even more unstable, so leaving your family without a life insurance benefit can be devastating. Instead, find out if your insurance company can do an applied premium loan and utilize some of your cash value to make premium payments.

Why not reduce auto insurance coverage? It will be difficult to find a new job, and get to one if you are offered a position, if you don’t have a car. Without car insurance to pay for damages after an accident, or with a high deductible that puts more pressure on you to pay for repair costs, you could be sabotaging your ability to get a job and remain employed again. Not to mention the risk of liability you take on, which can easily wipe out retirement and other savings.

Do you really need that much home insurance? It’s hard enough to imagine how you could afford to replace all your property and rebuild your home after an insurable event that occurs while you are employed, but imagine having to do so when you are unemployed.

Can you put health insurance on hold? Your health is your most precious asset. Without it you can’t work, enjoy your family or have a happy, fulfilled life. The ability to have serious problems detected early and to continue receiving preventative and emergency care measures is vital when you are unemployed. In addition, keeping continuous coverage ensures that your pre-existing conditions won’t be excluded by certain new plans.

If you have questions about how to continue with your Oklahoma City Insurance policies after a job loss, or how to replace those coverages lost after a job loss, give us a call at Strunk Insurance today.

Insurance: The Secret Weapon of an Effective Savings Plan

For many individuals and families, it is difficult to find the financial footing to start saving for emergencies, vacations, and retirement. With the cost of living rising and paychecks not always keeping pace, savings have become an even more precious asset to protect.

While you might think of insurance as a product that protects “things”, it actually protects your savings because it prevents you from needing to use your personal assets to pay for lost or damaged possessions and liability claims.

Your Property as an Investment

When you buy small ticket items like clothes, accessories and certain electronics, you might not think of them as investments but they are. Often, discretionary dollars are used to make the purchases, which is money that could have been used for savings instead of spending.

Whenever you spend money, you are making an investment. You are trading long hours of work for a product meant to improve your life in some way. By having the proper insurance on the item, whether through home insurance, flood insurance or auto insurance, you give yourself protection like other investors dream of. With your insurance, you’ll be made whole after a loss; and that means you won’t need to tap into your savings.

Liability Protection

Everyone is exposed to potential liabilities. From having a loose walkway stone that causes a neighbor to trip, to running a stoplight and hitting someone, to damaging your neighbor’s mailbox while backing out of your driveway. These are just a few examples of how you face many situations each day that could result in a liability claim.

Liability insurance coverage and umbrella policies help ensure that if you are sued, you won’t suffer financial damages beyond your deductible and those that exceed your limits.

For Your Heirs

Life insurance offers a great way to preserve your savings for your loved ones. Death benefit proceeds can help pay for estate tax liabilities and other expenses after you’re gone. This will ensure that the money you worked hard to save goes to your heirs after death.

When creating your savings plan, you’ll spend a lot of time on your budget. You’ll figure out what expenses to cut and how much to put into certain savings accounts. One of the biggest mistakes you can make though, is to ignore potential shortfalls in your insurance policies. With too little, or nonexistent coverage, you may find that your savings doesn’t stand a chance at accumulating.

Contact an agent at Strunk Insurance to make sure your Oklahoma City Insurance policy is going to protect you in the event of a loss.

Supplementing Your ID Theft Insurance Policy

With the continuing emergence of new ways to steal your identity, ID theft insurance offers a lot of comfort to those who choose to add it to their insurance portfolio. Better still, would be to never have to use the many benefits that ID theft insurance offers you.

Using the following easy steps as a supplement to your ID theft insurance policy is a great way to reduce the likelihood of encountering the frustrating, and damaging, event of identity theft.

• Use only secured internet connections to ensure that identity thieves can’t get your sensitive information. Entering sensitive information only into sites with secured connections, represented by the HTTPS in the address bar. An unsecured connection will simply show HTTP prior to the web address.
• Manually enter web addresses of all sensitive sites. If you get an email from your bank or other financial institution urging you to click an in-email link to clarify your sensitive data, do not click the link. This could be a phishing email meant to look as though it’s from your financial institution when it is really sent by a third party. As soon as you click through the link, the third party will direct you to an address that stores your data for thieves. Instead, always type in the web address for your bank and other financial sites.
• Shred all of your statements. Your statements reveal many items of information about you that an identity thief could use. Shred those and all other documents with sensitive information, including bills and medical documents which could contain your social security number.
• If possible, don’t carry credit cards. Stolen credit cards can lead to identity theft. Only carry a credit card when you know that you need to use it that day. Minimizing how often you carry these cards reduces the likelihood that they will be stolen. On vacation, opt for travelers cheques instead of always using your credit card. You may not be able to re-coop the loss if the cheques are stolen, but it costs you far less than losing your identity.
• Close unused credit accounts. If you no longer use a credit account, and you don’t need to keep it open to help your FICO score, then close it and destroy the card.

ID theft insurance protection helps to make you whole after your identity is stolen. It can’t prevent the theft from occurring, but it can help you work towards getting it back. For information on your Oklahoma City Insurance policy, contact Strunk Insurance today.