California Personal Injury and Insurance Blog

Moving? Update your homeowners policy

Yesterday, I talked about updating your auto policy when you move. Well, guess what? The same applies to your homeowners (or renters) policy. You need to update it and here is why:

1. Your current company may not write policies in your new state.
2. Your current coverages may not be adequate. Sure, it is a new house and you need to have a new coverage for the structure. But, liability limits that are adequate in one state may not be adequate in another state.
3. You have no insurable interest in the old house. (Go read my old posts about insurable interest!)
4. If you don't take out a new policy, your mortgage company will and it will be EXPENSIVE! OUCH!

There you go. Now, when you move, you can add getting new insurance to your list of things to do.

Moving? Update your auto policy

I have come across this twice recently and never thought it was an issue until then. Here is the situation: You live in State A. You move to State B. You take your cars with you and your auto policies. What should you do?

The easy solution is to notify your insurer and get a policy for State B. Why? There are a few reasons:

1. It may be cheaper. A policy in your new state may save you money.
2. Different coverages apply. Some states, like New Jersey, have no fault. That may not be the case in your new state. You want the right type of coverage for your new state.
3. Your life will be easier. In some states, even with the same coverage, different rules apply. Maybe your state has certain rules about uninsured motorist coverage that are not in the new state. These rules may affect the policy and how the claim should be handled. But you will have a hard time finding an attorney who knows all of the rules and can explain them to you.
4. Your old insurance company may not be in your new state. That could cause a problem, including them not understanding how things work in your state.

The basic advice is simple: if you move, get new insurance. It will make your life easier!

Want to know about an insurance company

Here is a helpful link I have found on the California Dept. of Insurance website. The link provides you with information on an insurance company. From the website itself:

Use a partial or full company name to search for an insurance company.

From there you will be able to access information about a company's location, former names of the company, agent for service of process, reference information (license status, company type, state of domicile), lines of insurance the company is authorized to transact, and complaint history.

This can be very useful to you. It is a good way to check up on your insurance company!

More on hiring an attorney

I had a discussion the other day with a potential client. He had talked to another attorney who was willing to take the case for a lower percentage. The difference was about 5%. He wanted to know if I would "price match." I didn't.

Why? There are a lot of reasons. Some of the basic ones are that you get what you pay for. You can hire an attorney who charges less. But, think about it this way. If the lower price attorney gets you $10,000 for your case, and charges 25%, then you get $7,500. However, if the more expensive attorney gets you $12,000 for your case and takes 30%, then you get $8,400. That is another $900 in your pocket. That makes a difference.

And in my experience, newer attorneys or less experienced personal injury attorneys are competing on price. That should not be the criteria you use in hiring an attorney. I have produced a free report that you can get by emailing me. While this issue is not in the report, it is one more thing to keep in mind when hiring an attorney.

Small Claims Court

At some point in time, you may have a case that is not worth retaining an attorney. For example, maybe someone owes you $500 or $1,500 or even $3,500. Paying an attorney to try to collect this money usually does not make sense.

The same thing applies to personal injury cases or property damage. Maybe the damage to your car is $2,500 and the other person's insurance company does not want to pay you. Maybe you only have one doctor visit or two doctor visits and $500 in medical bills. Then, you might want to consider small claims court.

Here are a few tips for small claims court:

1. Make sure you read the rules. A good place to start is the California Court website.
2. Read the rules for your local county. For example, in Sacramento County, you file the small claims court lawsuit online.
3. Use a registered process server to serve the lawsuit. Do you have to? No. But, it will make it easier on you if the other person does not show up. The extra $30 or $40 is worth it.
4. Bring two sets of copies of your documents, including estimates, pictures, and other papers that support your case. You will have to show one set to the other party and the judge will keep one set. Never bring originals.
5. Talk to the judge. Do not argue with the other side. This is not Judge Judy. Talk in a slow, calm voice to the judge and explain your position.
6. Do not interrupt. This goes for the judge and for the other party. Let them speak. You will be given a chance to respond.
7. Remember, if you win, the court does not collect the judgment for you. You have to do this yourself. At that point, you may need to talk to an attorney about how to collect.

Good luck if you choose small claims court. It can be a very worthwhile experience.

Renting? Who is responsible?

I read a comment on Craigslist about a renter who had the bad luck of having the house he was living in burn down. He had no insurance and was not sure what to do. That is a problem.

The solution: renter's insurance. I have talked about it before, but it really is something that you should have if you are renting. Why? Well, in the case above, the landlord is probably not responsible for the tenant's items. Unless the landlord was somehow responsible for the fire, which is doubtful, then it is likely that the landlord has no responsibility. If that is the case, then the tenant is just out of luck. That is no good!

Renter's insurance is cheap. It costs a couple of hundred dollars per year. If you are a renter, buy it. It is worth every penney it costs!

What to do after an auto accident

I just finished a new report, and it is free by sending me an email. The new report talks about something very basic: What do you do after an auto accident? Honestly, in my experience, most people do not know. This is especially true for new drivers and teens. So, here are 10 things to do. Get the new report for more details.

1. PULL OVER TO THE SIDE OF THE ROAD
2. MAKE SURE NO ONE IS HURT
3. CALL THE POLICE
4. TAKE PICTURES
5. BE PLEASANT!
6. CHECK FOR WITNESSES
7. EXCHANGE INFORMATION
8. LEAVE THE SCENE
9. CALL THE INSURANCE COMPANY
10. TALK TO AN ATTORNEY

These ten steps will help make sure you get everything done and all parties involved in the accident are safe!

The revolving door of adjusters

Has anyone else ever noticed that when you file a claim you end up dealing with one, two, three or more adjusters? Anyone ever wonder why?

Their is a hierarchy of adjusters. It goes something like this:

Step 1:         When you first report a claim, if the report comes in as property damage only and it is a clear liability case, the claim is assigned to a fast-track adjuster. These people handle claims quickly, but do not deal with injuries or arguments about fault. Some insurance companies, if not most these days, use these people to deal with any non-injury claim.

Step 2:          Your claim involves clear liability (in other words, everyone agrees that the guy who hit the parked car is at fault) and an injury, then you get into an adjuster who handles injury claims. But, as you probably figured, there is a catch. Call them step 2A and step 2B.

              Step 2a:  2a involves clear liability claims with subjective injuries. In other words, soft tissue type claims like whiplash. There is one type of an adjuster for these cases, usually someone promoted from step 1.

              Step 2b: 2b involves clear liability claims with objective injuries. In other words, someone has a broken bone. This is usually a promotion from 2a.

Step 3:          Step 3 involves disputed liability claims with an injury. At this point, most insurance companies do not break claims down into subjective and objective. Disputed liability with an injury usually ends up here.

Step 4:          Attorney represented claims. Up until now, steps 1 through 3, the claims involved people trying to do it themselves. Once you get an attorney, you move to step 4. And you are lucky. Seriously. These are better quality adjusters with more experience who understand the system. They try to resolve most cases without lawsuits being filed.

Step 5:          Litigation adjusters. These are the adjusters who take step 4 claims after a lawsuit has been filed. Usually, they are the most experienced adjusters and understand how to resolve cases, and what a case is truly worth. These are, in my experience, the best adjusters.

Now, is this true for every insurance company? Of course not. But, it is true often enough. Now you will at least have some idea who you are dealing with and why you may be passed around like a hot potato.

Free Reports

Just a reminder that I have four free reports for you. All you have to do is ask for them. The reports include:

• Fair market value for your car
• 10 mistakes to avoid with your claim
• 10 things the insurance companies do not want you to know
• How to hire an attorney for your personal injury case

Just send me an email with your name and address and the reports will be sent to you.

Questions Question Questions

I know you have questions. Why? Because I get emails from you. However, due to the nature of those, I can't use them on the blog. So, tell me what you want to know. Ask the question you have always wanted ask. Post it as a comment here or send me an email and in the subject write "For the blog."