Michael Martinez

Southern California Earthquakes and Earthquake Insurance – Have you felt all the earthquakes recently? Whether you live in Orange County, Los Angeles County, or the Inland Empire, in the past recent weeks, a swarm of earthquakes have made their presence. We know earthquakes aren’t something new in Southern California; however, the swarm and the unexpected turn it has recently taken is new and something to consider.

Just to place it in perspective, on June 5, 2019, a 4.3 earthquake centered nine miles south of San Clemente hit at 3:47 a.m. Later that day, at 7:32 a.m, another 4.3 magnitude quake hit almost the exact same spot! Then, we have around Fontana in the Inland Empire. Since May 25, 2019 (that’s only a couple of weeks), there have been MORE THAN 700 EARTHQUAKES!

We have clients calling in concerned because they’re feeling earthquake after earthquake, day after day! What is going on? Although Caltech seismologist, Egill Hauksson, said the chance that the series of tremors will turn into a large and destructive quake isn’t particularly high, what is unusual is that this swarm of quakes were initially moving northward…but then yesterday they turned around and started going back South, towards the middle of the activity and the 60 Freeway.

“This is somewhat of an unexpected evolution,” said Hauksson. In addition, the earthquake activity is fading much slower than expected, leading to Hauksson’s statement: “That would suggest it’s going to continue for – I don’t know – at least several weeks.” Hauksson also said that GIVEN ALL THE SEISMIC ACTIVITY, residents should be ready and make sure to store “plenty of water [and that] there’s nothing that can fall on them.”

Expert Recommendations for Dealing With Southern California Earthquakes

• Removing all heavy objects from around beds and sitting areas.
• Strapping bookcases and dressers to walls.
• Anchoring flat-screen TVs and pictures frames to walls.
  • Note, the last known fatality from an earthquake in California was due to an unstrapped television hitting someone in the head. So make sure all heavy objects are strapped.
• Preparing an emergency bag.
• MAKING SURE YOUR HOME HAS ADEQUATE EARTHQUAKE INSURANCE COVERAGE.

In terms of Earthquake insurance, did you know that standard home insurance doesn’t pay for any damages from earthquakes? Earthquake insurance can be offered as an add-on or a separate policy, but whether you have it or whether you have enough coverage can be mystifying if you haven’t discussed it with your insurance broker.

Given all the seismic activity, we can’t stress enough the importance of having your current policy reviewed by us to ensure you have adequate earthquake coverage.

Earthquake insurance can pay for repairs to your home and attached structures (i.e. garages), your personal belongings (i.e. furniture and clothes), and additional living expenses (i.e. hotel bills if you can’t live in your home due to an earthquake) if an earthquake strikes. This is huge and it’s not worth the expensive risk of going unprotected!

In terms of how much coverage you will need, contact us today and we can see what’s best for you, your family, and your home!

The Importance of Equipment Breakdown Insurance for Manufacturers

There is nothing more important to a manufacturer than their machinery. Subsequently, when a breakdown occurs, the impact can be devastating. When equipment grinds to a halt, deliveries are delayed, and/or job orders are lost, revenue stops and the cost of continuing operations rises. Equipment Breakdown insurance is designed to help keep a shop operating and also protect the insured from mechanical and or electrical breakdowns. It should also protect the business owner from mechanical or electrical equipment damage caused by operator error, poor workmanship, or negligence.

Equipment Breakdown policies cover the cost to repair or replace key pieces of equipment. Equipment in a policy is defined as follows:

1. equipment built to operate under internal pressure, such as boilers and pressure vessels
2. electrical or mechanical equipment used in the generation, transmission or utilization of energy
3. communication and computer equipment
4. the equipment used by a utility to supply its services

In addition to paying to repair or replace the equipment, a policy may pay for other expenses related to the loss. These can include lost income, extra expenses needed to continue operations while the machinery is being repaired, or the lost value of spoiled or contaminated products.

There are several key reasons that make Equipment Breakdown insurance so critical to an operation, including:

• Mechanical and Electrical Breakdown insurance covers specific equipment damaged by mechanical and electrical failure and other events, which are typically excluded from Commercial Property policies. For example, damage to equipment from short circuits/electrical arcing, power surges, mechanical breakdown and explosion of pressure vessels is not covered under a Commercial Property policy. Equipment Breakdown insurance steps in to fill in these gaps.
• Operator Error and Negligence is included in the Equipment Breakdown coverage. Operator error resulting in equipment damage is the most common cause of loss for any manufacturer. This can come to a surprise to most but these situations would and should be covered.

Most equipment contains a range of sophisticated controls and sensors, Internet connectivity, and advanced electronic sub-components. Components include transformers, panels and cables, and because these are interconnected, excessive voltage in one component can lead to significant damage to others. Arcing, for instance, can cause damage to a panel, as well as completely close down an operation. Fragile technologies today also make computer-generated machinery susceptible to electronic damage due to electrical surges, sags, etc. The cost to replace these machines can be significant. Even though the equipment may not cost a great deal to repair, the cost of missed shipments and loss in production adds up quickly.

OAK Insurance Solutions specializes in insuring manufacturers, including but not limited to the following: steel fabricators, machine shops, food and beverage manufacturing and plastic manufacturing. We partner with leading carriers that can provide comprehensive Equipment Breakdown coverage for our clients. For a consultation, please call OAK Insurance Solutions at (626) 818-8987 to speak with a member of our team.

What We Do Best – Over $150M in property insured!

Commercial Real Estate Insurance Overview:

When insuring property for commercial real estate owners, it’s important to advise them not to consider the “high level” points associated with one’s particular policy or program.

Often times, owners will be unable to look past total insured limits and the annual premium. Partnering with the right specialist, however, will help investors identify gaps in coverage and ensure the minimization of all risk exposure.

Whether a client owns hundreds of real estate assets or just a few properties, there are many common elements of a property insurance program that should be considered while placing coverage.

Insured Limits and Valuation

In the event of a disastrous claim, most owners seek to be “made whole” by their insurance policy. A policy’s ability to respond in this fashion is not automatic; most property policies will only respond up to preset limits, and will respond according to prearranged valuation methods:

• Replacement Cost: The amount required to replace damaged property completely, using new materials and furnishings.
• Actual Cash Value: Generally the Replacement Cost of insured property, with a deduction for depreciation (in other words, the age of property factors into the claim adjustment process).

Clearly, Replacement Cost is superior to ACV in most cases. The bottom line is, there is a big difference in the way claims are handled between the two methods. Accordingly,  they are both worthy of consideration.

Coinsurance

Occasionally, property owners will be tempted to assume some of the risk in order to reduce their annual premiums. When agreeing to a coinsurance clause (most are either 80% or 90%), a property insurer is stating that if the total insured limit is not at least a certain percentage of the true Replacement Cost at the time of a partial claim, then the property owner would be penalized by ratios representing the percentage by which the property is underinsured. Oftentimes, coinsurance clauses can be negotiated out of policies in exchange for a signed “statement of values,” or other evidence of insurance to value.

Deductibles

Most property insurance policies will pay out subject to a deductible, for which the policyholder is responsible. This seems straightforward, however it is important to note that deductibles may vary depending on the peril insured against. For example, a property insurance policy could have different deductibles for each of the following different perils:

• “All Peril,” or standard causes of loss like fire, water damage, etc.
• Earthquake
• Flood
• Equipment Breakdown
• Business Interruption
• Wind/Hail/Named Storm/Hurricane
• Per-Unit Deductible (for condo buildings, for example)
• Ice Dam or Water Damage Deductible

It’s very important to make sure that all deductibles are clear when placing coverage – it is not uncommon for certain deductibles to be less obvious than others when reading a policy document.

Sub-Limited or Excluded Areas of Coverage

Property insurance must be specifically tailored by an experienced insurance professional knowledgeable about the client’s business. The following is a non-exhaustive list of exposures that may or may not be automatically included within a standard commercial property insurance policy unless specifically addressed:

• Equipment Breakdown coverage
• Business Income/Business Interruption/Extra Expense Coverage
• Ordinance or Law Coverage (Loss to Undamaged Portion, Demolition Costs, Increased Cost of Construction due to Code)
• Water/Sewer Backup
• Earthquake
• Flood (or other naturally occurring water damage)
• Business Personal Property (qualifying items owned by the business but not attached to the structure)
• Production machinery or owned equipment
• Leasehold Improvements
• Property of Others in your care/custody/control

In short, while annual premium is certainly an important factor when placing insurance coverage for commercial property, there are many other factors that must be addressed to ensure that coverage responds favorably in the event of a loss. A good insurance broker will not only negotiate rates with underwriters but they will know how to properly customize coverage based off the property’s value and total exposure.

About OAK Insurance Solutions

Oak Insurance Solutions is a California-based insurance agency specializing in comprehensive protection plans that are strategically tailored to fit the needs of any business or individual. We do this through product knowledge, profitability, years of experience, and value-added services across all enterprises.

At our core is client satisfaction. We believe in treating our clients with respect and faith. We continue to grow through creativity, invention and value-innovation while integrating honesty, integrity and business ethics into all aspects of our daily business functioning and corporate culture.

We’ve created this culture by engaging with our clients on a personal level to understand what is most important to them. We’ve distilled their feedback into key performance indicators with metrics and measures in place to help increase visibility, agency focus, and improve the overall client engagement and experience. We pride ourselves in resolving issues quickly, while proactively searching to find more desirable solutions to the main points at issue.

A true leader in the insurance industry and neighboring communities located in Glendora, CA.

To All Existing and Future Clients:

We would like to introduce David Smith as the newest member of The OAK Insurance Solutions Family. David has officially joined us as Director of Business Development on December 1^st, 2018 and brings over 40 years of business to business sales experience.

As the Director of Business Development, David’s role will include the following:

• Comprehensive and manageable sales pipeline.
• Strategic alignment with target customers.
• Strengthen dialog and the mutual development of comprehensive, executable growth plans between the Agency and our valued partners.

For over 40 years David has enjoyed a successful career in the Foodservice industry, holding leadership roles with different companies. He has built his career on the philosophy that hard work pays off and has always held himself to the highest standards of integrity and loyalty.

His transition into the insurance industry will provide him with more meaningful products for his customers. It will allow him the ability to connect more with his passion, which is helping friends, family and neighbors. It is with great pleasure that we welcome David to the Family.

Born in Anaheim, CA, and raised in Buena Park, CA, David graduated from Western High School in Anaheim. By the time David graduated from high school he had already begun his career in the Foodservice industry. While he works hard, he strives to maintain work-life balance. He serves at Evangelical Free Church as a mentor, lay-counselor and member of an intergenerational ministry team. David currently resides in Brea with his wife. They have four children and seven grandchildren. Aside from his business career, David’s passion is spending time with family and friends, cycling, and golf.

David Smith
OAK Insurance Solutions
Director of Business Development
541 S. Glendora Ave. Suite B
Glendora, CA 91741
Office: 626-508-3371
Website: www.oakinsurancesolutions.com

Teen Driver’s Car Insurance, Glendora – One day we’re teaching our kids to sit properly in their car seat, hold our hands and look both ways as they cross the road, and carefully drive their power wheels without running into things. But the next??? The next, we’re teaching them how to adjust the car’s mirrors and seat, slowly release their foot off the brake and press the gas, maintain a safety cushion with their surroundings, safely change lanes, check for blind spots, and make a safe three-point turn. Embarking on the journey of acquiring a teenage driver can be an emotional roller coaster.

Will they be safe on the road? Will they be cautious of other drivers? Will they put their phone away? Will they follow the rules of the road? The fact is, according to the Center for Disease Control (CDC), teenage drivers between the ages of 16 and 19yrs are three times more likely to be in a car accident than one over 20. As parents, this is nerve wrecking because all we want to do is protect our children. As insurance companies, this can indicate risk.

Unfortunately, that’s why insurance rates generally are higher for teen drivers compared to adults. However, there are ways to reduce a teen driver’s car insurance rates.

How to Reduce a Teen Driver’s Car Insurance Rate

1) Permitted Drivers May Not Need Their Own Policy
Kids can’t wait to start counting the days to when they can have their permit, since this is their first step to getting their driver’s license. (Side note, we bet this is one test they’re super excited to study for and take.) But what happens when they get their permit? Well, in California, one must be between 15 ½ and 18 years of age to apply for their permit. Once earned, they can drive with their parent, guardian, spouse, or an adult over 25 years of age who has a valid driver’s license. They must also hold onto their permit for six months before taking their driving test for their license. Now, during this time, many parents wonder if their teen driver will require their own car insurance. And the answer, generally speaking, is no. The car driven must be insured, but generally not the permitted driver. Therefore, as long as the car is insured and the teen driver is not excluded, the driver should be covered.

Two things to note: (1) If your teen causes a car accident while with a permit, you may have to add them to your policy or exclude them moving forward. (2) Since teen drivers are new to the road, unfortunately getting into car accidents is common. Accordingly, if the car your teen is driving only has liability insurance, this is the time to consider switching to full coverage. Yes, liability coverage is usually cheaper than full coverage, but many times, when you work with a knowledgeable agent as OAK Insurance Solutions in Glendora, you can establish a policy that keeps your rates low and your coverage high.

2) Adding a Teen Driver to Your Existing Policy Can be Cheaper than Getting Their Own Policy

Depending on the primary driver’s circumstance, in most cases, adding a teenage driver onto an existing policy can save you more than adding them onto their own policy. Why is that? Well, one reason is that teen drivers by themselves don’t have all the characteristics that can help reduce their rates compared to an older adult (i.e. being married, driving history, low-risk job, etc…). Additionally, if they have their own car, you can receive multi-car discounts simply by adding them and their car to your existing policy.

3) Good Grades Pay Off

If your teen is enrolled in school full-time and has a grade point average of at least 3.0, they are considered a lower risk and responsible driver. As such, the teen driver can be rewarded discount rates!

4) Driving a Safe Vehicle Makes a Difference

I bet you’ve heard the type of car you drive makes a difference to your rate, and this is true. The safer your car, the more affordable your rate. So if you’re car shopping and looking for an insurance friendly car, think enhanced safety features, crash protection, and larger body. Avoid sports cars, trucks, and SUVs.

5) Keep a Clean Driving Record

We have established that younger, newer drivers have higher rates due to higher risk. However, if you promote and establish rules for safe driving, and your teen follows, then as time goes by, their rates can drop.

6) Take an Approved Driving Course

After six months of driving with a permit, a teen is eligible to apply for their driver’s license. However, in addition to completing 50 hours of driving practice with an adult over 25, 10 of which must be done at night, the new driver must complete a driver’s education course and 6 hours of professional driving training. Although policies differ, if you take an approved driving course, your rate can be reduced.

7) Carry a Higher Deductible or Lower Coverage Limits

As long as you carry adequate insurance coverage, should an accident occur, you have free range to carry a higher deductible or even lower your coverage limit. To make such changes, it’s best to have your policy reviewed (we’d be happy to do that for you) and look at what options are available to you.

There you have it! Quite frankly, having a teenage driver is bittersweet. Suddenly your little one is not so little anymore. Suddenly the fear of not holding your hand has grown exponentially to making sure they’re safe on the road. And suddenly, your insurance policy is considering a “teen driver.” Although we can’t keep your little one little, we can help you with your teen driver’s insurance rates. Above are just some of the tips available to reduce your rates. For more options and to have your current policy reviewed, please contact us.

To All Existing and Future Clients:

We would like to introduce Carrie Mangana as the newest member of The OAK Insurance Solutions Family. Carrie has officially joined us as Department Manager – Personal Lines on September 4, 2018 and brings over 30 years of industry experience.

As the Personal Lines Department Manager, Carrie’s role will include leading and managing personal lines’ new business development. In addition, she will be responsible for the overseeing and training of personal lines’ staff and agency retention. At our core are client satisfaction, respect, and faith. Carrie’s passion and altruistic personality makes for an important resource in our service commitment to the agency and our clients. Again, it is with great pleasure that we welcome Carrie to the Family.

Born and raised in Glendora, CA, Carrie attended Glendora High School. Upon graduation, her passion to serve the community quickly transformed into a 30-year career in the insurance industry. Throughout her tenure, Carrie continued to give back as a Sunday School Teacher for First Presbyterian Church, Parent Volunteer at Sutherland Elementary School, Goddard Middle School, Glendora High School, and President of San Clemente HOA. This California native currently resides in Glendora with her Husband and Daughter. Aside from insurance, her passions include Disneyland, the beach, her family, off-road races, and camping.

Carrie Mangana
OAK Insurance Solutions
Department Manager – Personal Lines
541 S. Glendora Ave. Suite B
Glendora, CA 91741
Office: 626-508-3371 Ext. 202
Direct: 626-508-3375
Website: www.oakinsurancesolutions.com

Glendora Fire Insurance – Due to the drought, warmer weather, and home construction deeper into fire prone regions, California is consequently experiencing an earlier and longer destructive wildfire season. Subsequently, the California Department of Insurance has sent out a warning that California homeowners will find it harder to obtain and hold onto fire insurance. We’d like to preface this with two points:

1) OAK Insurance Solutions is a California company in itself. We know fire has been and unfortunately will continue to be part of California. That said, we also know how hard homeowners work to purchase and keep their home. Accordingly, we firmly stand on doing everything in our power to make sure our clients can obtain and will keep their insurance. We’ve been hearing a lot of stories regarding homeowners opting to go uninsured because they can’t find affordable fire insurance. Do not take the risk! To save you time and money, we can shop and compare rates on your behalf, and set you up with affordable, quality, insurance coverage.

2) A report has also indicated that after California’s most recent wildfires, homeowners are finding it more difficult to rebuild due to coverage shortfalls in their homeowner’s insurance. This is why we can’t stress enough…if you haven’t reviewed your current policy and its coverage limits, you must. Contact us and we’d be happy to identify any limits, gaps, and opportunities for rate reductions. Unfortunately, there have been an increasing number of stories of homeowners who have lost their home due to California’s wildfires. If such devastation wasn’t enough, they are now realizing that the total their insurance pays out to rebuild isn’t enough. In fact, many are facing shortfalls of $200,000 and upwards. What does this mean? It means that once their insurance pays them out, not only do they not have enough to rebuild their home, but the total may not be enough to pay off their current mortgage or even place a down payment on another home. Having no other options, homeowners are having to take out an additional loan to cover the shortfall in their coverage and unfortunately having to pay for the additional mortgage as well. Imagine losing your home in the fires. Then, due to a lack of coverage, needing to take out a second loan and as a result, increasing your monthly home expense by at least another $1000. This isn’t fair.

As the local Glendora fire insurance agency…

We want to be your trusted source for everything insurance. Although the California Department of Insurance is suggesting that the “other guys” may begin opting to not renew policies or stop writing policies in areas with high fire risk, we are not the “other guys.” It’s anticipated that parts of the state will be reclassified from safe to high-risk and our competitors will increase their rates. It further has been revealed by a Department of Insurance report that the number of non-renewals has increased 15% and insurers have dropped more than 10,000 policies in just California’s 24 high fire risk counties. This data is for 2016 and it has been estimated that the numbers have increased since then.

Again, as the community’s go-to insurance agency, we are and will continue to strive to not only provide high coverage, but beat our competitors’ rates 95% of the time. Whether you are with the “other guys” or not, contact us to review your current policy and options. You never know when disaster can strike.

Here in Glendora, fire insurance covers not only damages and losses covered by fire, but it can cover smoke and water damage too. Since fires can ignite from more than just wildfires too, fire insurance covers a policyholder against fire loss or damage from such sources as fire brought by electricity, faulty wiring, gas explosion, lightning, or other natural disasters.

Protect your home, property, and family, contact OAK Insurance Solutions today or get a quick quote here.