Erica

December 17, 2012

Aviation insurance is an important consideration for all pilots. Whether you are an aviation enthusiast or a professional pilot, insurance protection should not be ignored. Knowing how and where to purchase this insurance is key in selection the right coverage for your needs. Unfortunately, it’s not something you can get from your favorite pilot store so you’ll need to do a bit of research. The choice of aviation insurance protection should be considered if you are a professional pilot providing paid pilot services to an aircraft owner as an independent contractor. Most owners of aircrafts use contract pilots as primary as-needed flight crew members when there is no regular crew.

All pilots must be approved as pilots under the insurance policy of the aircraft owner, by being named specifically as an approved pilot in the policy’s endorsement, or by meeting the stated minimum requirements of the policy (the “Open Pilot Clause“). When all pilots are approved under an insurance policy, it is only for the aircraft owner’s benefit, and not for the approved pilot. If the policy does not provide approval for the pilot, a denial of coverage could be applied on the aircraft owner if any loss occurs.

When operating an aircraft, there are two areas of exposure all pilots have. These are (1) physical damage to the operated aircraft, and (2) liability for bodily injury or for damage to property (damage caused by the pilot to other people’s property).

Protecting Yourself through Aviation Insurance

To protect yourself, you should buy your own insurance plan, which covers your exposures when operating an aircraft not owned by you. It is impossible or difficult to get that type of coverage, and is usually expensive.

Liability

The best way of protecting yourself is when you buy coverage under the policy of the aircraft owner. For the property damage liability and bodily injury exposures, you need to be included as an additional “Insured” under the insurance policy of the owner. This is done through the company-issued endorsement. Being included as an additional insured under the liability plan supersedes any contrary of the policy’s provisions, like the exclusionary wording which describes who does not have any protection.

Physical Damage

What would happen if you caused damage to the aircraft operated by you? You need to have an agreement with the owner of the aircraft, wherein the owner agrees that you will not be held responsible for damage caused by you to the aircraft. The insurance policy will then require the owner to make the insurance company to know of the agreement. After the insurer gives an approval, an endorsement will be issued, with the rights of recovery against you being waived for the aircraft’s damage.

Certificate of Insurance

To confirm that the insurer has agrees to give you protection, a Certificate of Insurance will be issued to you, stating that you are an additional insured. It will also state the waiver of subrogation, and that it has been agreed that you be given a prior written notice of 30 days if the policy is cancelled by the company.

Different ways are used by companies in requesting protection for a contract pilot. Some companies do not mention the name of the specific contract pilot, but will only disclose the name of the company providing professional pilot services. Additional premium is charge by some insurers, while others do not; while there are some who refuse the protection.

Everything You Need To Know About Car Insurance

Erica

November 30, 2012

Car insurance has become a basic need for every vehicle owner. Drivers without car insurance end up paying more than necessary during an accident, whether financially in damages or physically through an injury. To assure you and your vehicle of less trouble, it’s important to know what to look for when applying for a car insurance plan. You’ll want to be prepared and know the answers to some of the most common car insurance questions.

For every car insurance plan, the minimum required by most states is liability coverage. This includes any injury sustained by another person in case of an accident that involves other cars. Your plan should be able to cover the damage done to that person. It’s recommended to get the minimum, but there are other coverage terms you might want to invest in. Most insurance plans include a deductible, which is the amount you pay for an at-fault loss. Such an instance covers accidents that only fault you the driver, ie if you miss a turn and drive the car into a wall. If the damage is about $800 and the deductible is $700, then the plan only pays $100.

Car insurance can be a burden to your monthly deductions, but you can save while still investing in a plan. Be a responsible car owner and always follow the road rules. Make sure that your record has little or even no instances of violations so that you only spend when necessary. For families that have more than one car, it helps to avail of a homeowner’s policy. You might also want to consider how invested you are in the vehicle—younger car owners end up paying the highest premiums, while married women appear as less of a risk so they pay less. Compare and contrast insurance plans by looking through each insurance company’s data on what type of individual is described as a higher risk.

There are several other factors to consider when settling on a car insurance plan. Check for the coverage’s policies on MedPay and Bodily Injury coverage; the former takes care of other individuals damaged by the car, while the latter also compensates for your injury. Some banks require a collision or comprehensive coverage; collision protects you against accidents involving other vehicles, while a comprehensive coverage insures you against instances of theft or acts of God (ie floods, storms, etc.). The type of coverage you get will depend on these factors. It is recommended that brand new cars get both collision and comprehensive coverage. You may also want to consider car rental, roadside assistance, and towing coverage.

To ensure that you are getting the most out of your plan, take into consideration the roads you take, the circumstances you normally face, and the accidents that are common in your area. Medical related coverages are always a smart and practical option. Study your credit history as well, since individuals with lower credit scores tend to pay more for coverage. Whatever your situation, it’s always smart to invest in emergencies that a car insurance coverage takes care of. You not only save up for a more practical future, but also protect your investment into the vehicle.

What’s The Big Deal About Homeowners Insurance?

Erica

September 7, 2012

Securing oneself from the troubles of tomorrow is one of the wisest decisions a person can make. In practical sense, insurance is an important policy where the State guarantees protection to its citizens by allowing insurance companies to answer for the possible damages. Such insurance policy is imbued with public interest and is recognized across states.

Availing insurance coverage as a guard against a specific peril secures the insured that his property will be protected from any unfortunate event. Home insurance, for instance, covers indemnity in case of any sort of house destruction. Insurance companies also answer claims resulting from the injuries sustained by other people on the property. In effect, the Home Insurance answers for all financial consequences that might arise out of an uncertain or unfortunate event. It is one of the best investments in securing the family’s property. Home Insurance otherwise called Homeowners Insurance is a combination of Hazard Insurance and Liability Insurance.

Hazard Insurance

Hazard Insurance is an indemnity that covers damage or destruction of the property on the occasion of unforeseen or uncertain event including but not limited to fire, storm, vandalism, or theft. There are two policies covered under the Hazard Insurance. These are the valued policy and the open policy. If the insured enrolled for the valued policy, he will be indemnified of the value of the thing lost. On the other hand, if the insured enrolled for the open policy, he will be indemnified for the actual cost of the loss on the property. These two policies are important to distinguish because it has a different effect on the amount of indemnity that can be recovered.

Liability Insurance

While Hazard insurance is a Home Insurance centralized on the property that was lost, Liability Insurance is concerned on the injuries sustained by a third person on the property that was destructed. This kind of Home Insurance indemnifies a person injured to the extent of the expenses incurred for medical treatment. This is a personal liability of the insured to a third person who suffered injuries by reason of accident on the property.

Mortgage Requirement

Insurance is also required in case of mortgaged property to ensure that the property secured under the mortgage contract will remain to be in good condition within the term agreed upon and guarantees indemnity in case of destruction.

Special Property

Like any other policies, Insurance has some limitations in granting indemnity. Examples of these inclusions are the jewellery items and cash. The reason behind this is because it exists independently from the house and has a separate value than that of the house in a Home Insurance.

Exclusions

Aside from the limitations, there are also exclusions on the insurance coverage. It excludes the coverage from flood damage and earthquake damage. Such situations may be covered by other insurance coverage and not by the Home Insurance. At the same time, insurance companies are not responsible in the cost of the maintenance of houses to avoid destruction. This is something that is within the active management of the insured on his property.