Whether you are driving 1 mile, 10 miles, 30 miles, or just around the corner, taking care of your vehicles and making sure they are running correctly is a very important part of our lives. So we do everything we need to keep them running smoothly. That starts out with finding a great and trusted local mechanic to help keep our vehicles rolling for the years to come.

That's a lot of responsibility for a good auto mechanic to undertake. Sometimes they are so involved with making sure your vehicle is repaired that they forget to purchase the necessary insurance. Here we discuss a few important insurance coverages that any auto mechanic needs to purchase to help protect their customers and themselves. 

Owners of garages and repair shops need business insurance to protect their assets from the risks associated with making repairs to other people's vehicles. Any kind of injury, error, or property damage can result in a costly claim or lawsuit. The most important insurance policy for an auto repair shop is garage keepers liability insurance. 

Garage Keepers Liability Coverage

This policy protects you if a customer's vehicle is damaged while it is at your business in your care, custody, and control. There are two levels of coverage that you can choose from: Legal Liability and Direct Primary.

1. Legal Liability offers coverage to the customer if the damage was the mechanic's fault and the auto body shop is legally liable for the damage.
2. Direct Primary covers other problems that can occur, even if the auto body shop is neither negligent nor legally liable, such as a customer's vehicle is stolen right from the parking lot. 

Business Interruption Insurance

Business interruption coverage compensates you for lost income if your business is temporarily closed due to a covered loss under your business policy. Your insurance policy would pay for the loss of income you would experience due to a partial or total interruption. The interruption coverage time period begins with the date of the loss to a covered property and ends on the date when the covered property is repaired, rebuilt, or replaced with reasonable speed and similar quality.

An important component of business interruption insurance is that the loss must be a property loss, such as a fire or a vehicle driving into your building and destroying it. An event such as a pandemic, where businesses are forced to close, is not covered by business interruption insurance since there is no property loss. 

Data Breach Insurance

Your customer's credit card information is stolen while in your care, which legally requires you to take action. Most states have breach notification laws that not only require a business owner to inform any affected individuals of a data breach, but also specify the manner and period in which the business owner must inform customers. 

1. Data Breach Response Expenses: It could cover the expenses you incur when notifying affected individuals of a breach per state laws.
2. Data Breach Liability Coverage: It could cover damages that you are legally obligated to pay when the customers' nonpublic personal information that is lost, stolen, or accidentally released is used fraudulently. It also covers the cost defend lawsuits seeking damages.

These are just a few important coverages that are needed by an auto mechanic shop. Others include business auto insurance, workers' compensation, property and equipment insurance, crime insurance,. etc. Except workers' compensation, many of these can be packed together into one policy.

Who qualifies for an accelerated death benefit?

Patients who are considered terminally ill or chronically ill can qualify for the funds from the ADB rider. Terminally ill patients are those that have been diagnosed with an illness or condition that is expected to result in death within 12 months or less. The insurance company will want to see a certification from a doctor or medical professional stating that you are terminally ill and have a life expectancy of 12 months or less.

Chronically ill patients are those that are unable to perform 2 of the 6 activities of daily living for a period of at least 90 days or requires constant supervision to protect from threats to health or safety due to severe cognitive impairment. The activities of daily living include bathing, continence, dressing, eating, toileting, and transferring. 

How does the accelerated death benefit work?

If you access your death benefit before you die using the ADB rider, you receive a portion of the death benefit to pay for medical care or anything else that you may need. Some companies will only let you take out a partial amount of the death benefit, whereas other companies will allow you to withdraw the entire death benefit. 

The remainder of your life insurance benefit not taken out for the ADB rider goes to your beneficiaries after you die. Keep in mind that the amount taken out by the ADB rider reduces the amount of money your beneficiaries receive after you die. For example, you have a $500,000 term life policy and you use $300,000 for the ADB rider, the remaining $200,000 will be paid to your beneficiaries after you die. Another thing to keep in mind is that you cannot give back and unused ADB rider money. Once it is paid out in a lump sum, it cannot be given back to the insurance company in order to increase the death benefit for your beneficiaries. 

​What expenses does it cover?

The money you receive can be used however you want, though most people use it towards medical expenses that would alleviate any financial burden during your final time. You can use it for hospice, nursing home, medical supplies, and for a private caretaker.

What is it not?

One thing to keep in mind is that an accelerated death benefit rider is not a long-term care policy, nor is it a Medicare supplement policy. Those are separate policies that you can purchase. Long-term care does not assume terminally or chronically ill. You can only access the funds in ABD rider if you are terminally ill or chronically ill as certified by a medical professional.

Split Limit Liability Coverage

Split limit coverage divides the coverage limits into three areas: one amount for bodily injury per person, one amount for bodily injury for the accident, and one amount for property damage from the accident. A common split limit is a 100/300/50 split. This explicitly means that there is $100,000 of medical bodily injury coverage per person, $300,000 of bodily injury coverage for the entire accident, and $50,000 limit for property damage. 

Combined Single Limit Liability Coverage
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Combined single limit has one liability limit for all injuries or property damage sustained in an accident. For instance, if you choose $300,000 of combined single limit coverage, you would be protected for both bodily injuries and property damage up to that $300,000 amount total in a single accident. There is no cap per person, per accident, and for property damage. The only cap is the $300,000 total in damages. 

How These Both Work

Suppose you cause an accident where total injury and damages total $225,000. Two people are injured with $155,000 of bodily injuries (one at $30,000 and the other at $125,000), and $70,000 in physical damages. If your policy carries a 100/300/50 split, you might not be covered fully. Here's why. The first injured person would be covered for $30,000, but the second injured person would only be covered for $100,000 since the first limit is per person. The full $125,000 would not be covered and you would be on the hook for the difference of $25,000. For the physical damage that totals $70,000, you would only be covered for $50,000. You would be on the hook for the difference of $20,000. The total amount that you would be personally liable for is $45,000 under the split limit policy.

In the event of that same accident, the combined single limit would cover everything and you would be fully protected. The entire cost of all of the injuries and damages combine together to make one single payout. 

Advantages and Disadvantages of Single Limit

In many cases, carrying a single limit coverage policy will result in limits that are more than adequate to cover any claims resulting from an accident. Split limits can result in a gap between actual claims and the coverage limits. This can result in a personal injury lawsuit against the policyholder in an attempt to recoup any unpaid expenses. Many people choose to purchase a personal umbrella policy to fill in the gaps. Single limit coverage though is more expensive than split limit. Those who want to spend less on auto insurance will find that split limit is less expensive. 

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​When clients buy a home and purchase the needed homeowners insurance, they might hear the word escrow thrown around. Let's look at what escrow is, how it is used, and how it can benefit you as a home buyer or homeowner.

What is Escrow?

Escrow is a legal agreement in which a third party temporarily holds money or property until a particular condition has been met, such as the fulfillment of a purchase agreement. It is used to protect the buyer and seller throughout the home buying process. Also, throughout the term of a mortgage, an escrow account will hold funds for taxes and homeowner's insurance. Escrow accounts may be handled by a variety of third parties, including an escrow company, an escrow agent, or a mortgage service provider. 

How is Escrow Used?

An escrow account is used in two different ways: to protect the buyer's good faith deposit and to hold funds for payment of taxes and insurance.

In a home purchase, an escrow account is used to protect the buyer's good faith deposit (also known as earnest money) until the fulfillment of the terms of a purchase contract. This account shows that you are serious about buying the home. The earnest money is held in an escrow account until closing, at which time that money will be applied to the down payment for the buyer. If the contract falls through due to the fault of the buyer, the seller usually gets to keep the earnest money. If the home purchase is successful, the earnest money will be applied to the down payment. Sometimes, funds are held in escrow past the completion of the sale of the home until certain conditions are met by buyer and seller. 

An escrow account is also used to hold funds for payment of taxes and insurance. After closing, your mortgage service provider takes a portion of your monthly mortgage payment and sets it aside in the escrow account until your tax and insurance bills are due. These bills can change from year to year, and your mortgage provider will determine each year how much needs to be held in escrow to cover these bills.

Benefits for a Home Buyer or Homeowner

For a home buyer, an escrow account protects your deposit during the purchase of your home. If the sale falls through and you paid the seller directly, you might not get your money back at all from the seller. When the money is being held by a third party, your money will be returned according to the contract.

For a homeowner, an escrow account makes it easier for you to pay your taxes and homeowners insurance for the entire year. Instead of paying a lump sum for those bills, you are paying for them throughout the year from the escrow account, which can make the payments more manageable. 

Disadvantages of an Escrow Account

The main disadvantages of an escrow account include higher monthly mortgage payments since it includes your taxes and insurance, and occasional incorrect estimates of what needs to be held in escrow, resulting in fluctuating monthly mortgage payments.

Contact us today if you would like a homeowners quote or have any questions about your homeowners insurance.

Having a child is a major life event that drives people to consider getting term life insurance. When you have loved ones who depend on you financially, term life insurance provides a cost-effective way to protect them from financial hardship if you were to suddenly pass away. If you plan on having children, many people seem to wait until they are pregnant or had the baby already before they purchase life insurance.

Claim Scenario #1:  Your home and furnishings were destroyed during a recent wildfire. You made a claim to your insurance company and have met your deductible. Now you want to replace the damaged furnishings. Last year, you bought a sofa for $2,000. If you have replacement cost coverage, the company might pay you $2,100 because that is what it would cost to buy a similar sofa using today's prices.

Claim Scenario #2: Suppose you have an eight-year old air conditioning compressor that is damaged by lightning and needs to be replaced. The average life span of an air compressor is 16 years. You made a claim to your insurance company and have met your deductible. Eight years ago you paid $4,000, but now it costs $6,000. If you have replacement cost coverage, the insurance company would base the claim payment on the $6,000 cost. 

Homeowners usually prefer payment based on the replacement cost because it compensates you for the actual cost of replacing the property, whereas actual cash value compensates you after deducting for depreciation.

​Pepe Insurance Agency is your trusted local insurance agent located at Poughquag, NY in Dutchess County. We do our best to make sure that our clients are well-protected with affordable homeowners insurance. We make sure to go the extra mile to help you with your needs. To learn more about homeowners insurance and to obtain a free quote, click on the button below.

​This is where life insurance comes in to play. With the right coverage, the surviving spouse could afford the help they need in a difficult situation. A term life insurance policy would come in handy if the surviving spouse now needs to pay for childcare and hire other workers for help around the house. The life insurance death benefit could greatly ease the financial strain. 

Pepe Insurance Agency is your trusted local insurance agent located at Poughquag, NY in Dutchess County. We do our best to make sure that our clients are well-protected with affordable life insurance. We make sure to go the extra mile to help you with your needs.

​The answer depends on the coverage that you have with your insurance policy. Windshield coverage generally falls under comprehensive coverage. If you purchased comprehensive coverage with glass coverage, then your windshield can be replaced. There might be a deductible, so check your policy. If you have liability only on your car, then you will need to pay out-of-pocket for your windshield because liability doesn't cover damage to your vehicle. 

If your policy allows you to submit a claim for a cracked windshield, call us to report the claim and we will report it to the insurance company. The dominant windshield replacement company is Safelite. They will call you directly and schedule an appointment to fix your windshield. It is that simple!

Pepe Insurance Agency is your trusted local insurance agent located at Poughquag, NY in Dutchess County. We do our best to make sure that our clients are well-protected with affordable auto insurance. We make sure to go the extra mile to help you with your needs. To learn more about auto insurance and to obtain a free quote, click on the button below.

​Youth sports are a popular recreational activity in our area of Dutchess County and the entire Hudson Valley and beyond. Whether it be baseball, softball, soccer, football, or any other sport, they are an enjoyable pastime for the entire family. On an given day, you see multitudes of teams practicing and playing their sports. Team spirit and good sportsmanship are learned and forever friendships are formed. 

However, when you are on the grandstands cheering for your child and team, insurance is never on anyone's mind, except insurance agents like Anthony Pepe! There are so much to do with running the teams around during the season, that nobody stops to think about the insurance aspect of running youth sports. Coaches, players, parents and fans are having a great time, but sometimes things go wrong such as getting hit in the ball or bat, a spectator is hurt, or a car is damaged from a fly ball. 

This is where Pepe Insurance Agency comes in to help. Good thing that Anthony is not only an insurance agent, but also  softball parent and coach. He knows the ins and outs of how these teams operate and he knows what coverages your team needs to purchase to make sure your ream is adequately insured for any type of liability or loss.

What are the Coverages?

The insurance includes a combination of risk protections that insure teams, leagues, associations, and clubs. You can purchase a complete package or custom design a policy that meets the needs of your particular organization or sport.

Important coverages that you need to consider and we can provide are:

• General Liability: covers certain lawsuits arising from an accident causing bodily injury and property damage due to the alleged negligence of the sports organization.
• Property Damage Coverage: Covers the property of the sports organization such as damaged storage trailers and stolen equipment.
• Professional Liability: covers certain lawsuits alleging purely economic damages arising out of performance of member services accompanying bodily injury or professional liability. This generally includes personal injury and advertising liability.
• Participant liability: covers your organization or team, along with the directors and supervisors, from lawsuits that can result if a player is severely injured.
• Participant accident: covers a player or coach who is injured in the course of a supervised sports activity. This includes games, practices, clinics, travel, and more.
• Abuse and molestation: covers the organization against lawsuits stemming from sexual molestation.

Pepe Insurance Agency is your trusted local insurance agent located in Poughquag, NY in Dutchess County. We do our best to make sure that your sports team is well-protected with affordable insurance. We make sure to go the extra mile to help you with your needs. To learn more about business insurance and to obtain a quote, click on the button below.