California Personal Injury and Insurance Blog

Renters Insurance: Do you need it?

I was talking to a friend today who rents a house with two roommates. In the course of the discussion, it came up as to whether she had renters insurance. (Okay, that doesn't come up in conversation with normal people, but I am an insurance geek, remember? It comes up in my conversations with people.) She answered that she had no renters insurance.

Does she need it? YES! Do you need it? YES! Why?

Renters insurance is simple. It pays for your contents if they are damaged by one of 17 (usually) named events (called perils in the insurance business.) In other words, if your property is stolen, destroyed by fire, etc... the insurance company will pay to replace the items.

Also, renters insurance provides you with liability coverage. So, if your negligence injures someone, then the policy will pay any amount you are responsible for. In other words, if you injure someone because of something you do, they will be able to be compensated by the insurance company and not by you personally.

Renters insurance is relatively cheap. A good policy is about $200 per year. It is something ever renter should buy.

Fire Victims "Burned" By Legislature

The LA Times has an interesting article about the legislative process. Basically, after the San Diego fires, bills were introduced to give homeowners more rights. Not surprisingly, the insurance companies gave a ton of money to the Assembly Insurance committee members and the bills died.

I am not going to get into the debate about government here and lobbying. I am going to suggest that the insurance companies spend a lot of money every year on lobbying and they expect a payoff. The insurance commissioner, also an elected position, needs money to be elected or re-elected or, when he is termed out, elected to a new position. In my opinion, this makes it extremely difficult for meaningful legislation to be passed especially when the insurance commissioner is a career politician and not someone with a working knowledge of insurance.

New Podcast Released

I am pleased to announce that I just released a new podcast. This podcast is the ninth released in the series. This podcast provides an overview of the California Fair Claims Practices Act. It does not go into substantial detail, but it does provide you with basic information.

I am going to be releasing a Consumers Guide to the Fair Claims Practices Act as well. That will be coming soon.

If you have questions about this topic, please send me an email or post a comment here.

The Defendant Files for Bankruptcy: UH OH!

Sometimes, unfortunately, you have a claim against another person. That person may end up filing for bankruptcy protection. What happens then to your case?

Well, a few things could happen. First, if there is a lawsuit pending, it is automatically put on hold (called stayed in legalese). Federal law requires that this happen.

Second, if the defendant has insurance, your attorney can file a motion to request the bankruptcy court let your case proceed. But, you can only proceed then against the insurance policy. The most you can recover in this situation is the amount of insurance that the defendant has bought. However, the case then can move forward.

Third, if the defendant does not have insurance, you have to try your case in bankruptcy court. Sometimes this makes sense and sometimes it does not. You really need the advice of an attorney at this point. It gets quite complicated.

Those are the basics of what happens when a defendant files for bankruptcy. Always consult with an attorney if this happens in one of your cases.

Wyoming Insurers Want to Avoid 3rd Party Bad Faith

Wyoming insurers are lobbying against a bill that would allow 3rd party bad faith cases. Basically, the idea is that if the insurance company for the other person does not pay your claim timely and fairly, you can then sue the insurance company directly. The insurers allege that this will cause rate increases and fraudulent claims.

Here is a simple idea: instead of worrying about that, how about paying claims timely and fairly? If the insurers pay the claims timely and fairly, do they really have anything to worry about? Probably not. Insurers only get into trouble when they do not follow the fair claims practices act for their state. If they follow the act and deal with people properly, then they wont have these issues to worry about.

But maybe that is just me.

Avoid Global Healings Society

The California Department of Insurance has issued a cease and desist order to Global Healings Society. Basically, they are telling these people to stop selling their services in California.

Global Healings may be selling insurance. They claim they are not. I looked at their website, which I won't link to primarily because I think the Department of Insurance is right. Do not buy auto insurance from these people, in my opinion. I do not believe that you will be protected.

Seatbelts dont work..........

UNLESS YOU USE THEM. (Did you really think I would advocate not using seatbelts?) Some statistics: 45% better chance of surviving an accident if you wear a seatbelt and a 50% better chance of surviving without serious injuries. So, why don't you wear a seat belt?

Is it because...........

• You are a good driver? Great. But not everyone is. Someone is going to be at fault, and if it is not you, it is going to be the other guy. (And the other guy may be drunk too.)
• You can brace yourself if you stop suddenly? Go catch a 300lb barbell dropped from two feet. If you can do that, you can brace yourself for a 10 mile per hour collision. If you can't catch it, buckle up.
• You want to escape in a hurry? The front windshield will help you escape after an accident. Of course, you won't be able to move after that, but don't let that worry you.
• You forget? Do you forget your keys? Do you forget putting the car in gear? If you remember these things, you can remember your seat belt.

Here is an easy rule: the car does not get turned on until everyone has their seat belt on. It will save your life.

Apartment Living Tips

Some tips about apartment living.

First, GET RENTERS INSURANCE. It is cheap and it will cover you if your property is stolen or if you injure someone. Just for those who missed it, GET RENTERS INSURANCE.

Now, some tips other than GET RENTERS INSURANCE:

• Talk to the police about a neighborhood watch
• Publish a complex newsletter with information about crime
• Report broken doors, lights, complex gates, etc... to management immediately
• Make sure your deadbolt locks
• Keep your windows closed at night - even on the second floor
• Get to know your neighbors
• Get to know security

One final tip: before you move in, talk to the local police and see if you can find out about problems at the complex.

Car Safety Tips

After my last post, I thought I would post some tips about car safety. Driving in a car has enough issues, but being safe is your most important concern.

• Always lock car doors after entering or leaving your car.
• Park in well-lighted areas.
• Have your car keys in your hand so you don’t have to linger before entering your car.
• Check the back seat before entering your car.
• If you think you are being followed, drive to a public place.
• If your car breaks down, open the hood and attach a white cloth to the car antenna. If someone stops to help, stay in the locked car, roll down the window a little and ask them to call a tow service.
• Don’t stop to aid motorists stopped on the side of the road. Go to a phone and request help for them.

I know some of you will argue with my last tip. But, I have had clients stop to help others and then be injured in an accident. Use your cell phone to help others.

Tips on Personal Security

From the State Attorney General's office,  comes this information on personal safety:

Be prepared

• Always be alert and aware of the people around you.

• Educate yourself concerning prevention tactics.

• Be aware of locations and situations which would make you vulnerable to crime, such as alleys and dark parking lots.

Street precautions

• Be alert to your surroundings and the people around you, especially if you are

alone or it is dark.

• Whenever possible, travel with a friend.

• Stay in well-lighted areas as much as possible.

• Walk close to the curb. Avoid doorways, bushes and alleys where someone could hide.

• Walk confidently, and at a steady pace.

• Make eye contact with people when walking.

• Do not respond to conversation from strangers on the street, continue walking.

• If you carry a purse, hold it securely between your arm and your body.

• If someone bothers you, change seats and/or tell the driver.

• Carry your wallet inside your coat, or in a front pocket. A comb, placed horizontally

in the fold of your wallet, will alert you if someone tries to remove it from your pocket.

• Keep your handbag in front of you and hold it close to your body with both hands.

• Check your purse or wallet if someone is jostling, crowding, or pushing you.

• If you see any suspicious activity, tell the driver.

Office security

• Never leave your purse or billfold in plain view or in the pocket of a jacket

hanging on a door.

• Personal property should be marked with your driver’s license number

(preceded with the letters ‘CA’).

• Don’t leave cash or valuables at the office.

• If you work alone or before/after normal business hours, keep the office door locked.

• If you work late, try to find another worker or a security guard to walk out with you.

• If you are in the elevator with another person, stand near the control panel. If you are attacked, press the alarm and as many of the control buttons as possible.

• Be alert for pickpockets on crowded elevators.

• Report all suspicious people and activities to the proper authorities: office manager, building security, law enforcement.

This is some good information that you can use to keep yourself safe.