Thursday, March 24, 2011

When The Ground Trembles

Californians are not strangers to earthquakes. In most cases the vibrations underfoot and the rattling of windows are shrugged off with a knowing smile and life goes on. But once in a while, things can get bad; really bad. In 1994 the Northridge earthquake resulted in $20 billion in property damage. Surprisingly, only about 12% of homes in the state have earthquake coverage. Many homeowners are not aware that earthquake damage or loss is not covered by a basic home insurance policy. Those who are aware of this lack of coverage often comfort themselves with the thought that they live far from the fault lines or that their localities experience only mild shocks which do no serious damage. But the US Geological Service says the Bay Area and Sanford “experienced large and destructive earthquakes in 1838, 1868, 1906, and 1989, and future large earthquakes to relieve this continually accumulating strain are a certainty.”

A major earthquake can never be predicted or prepared for. Do you really want to put your home and your family’s future at the mercy of the unknowable? Getting earthquake insurance is easy and can be less expensive than you think. Contact Allied Brokers and we’ll make sure that you get the cost effective earthquake insurance policy that is right for you. We have been in the insurance business since 1954 and we mastered the science of matching our clients’ insurance needs with the insurance policies that are best for them. Talk to us and you will know why our clients’ are so happy with the long term relationships we have with them. Visit our website at to know more.  Phone us at (650) 328-1000 or email to get started.

Wednesday, March 23, 2011

Under Insured Homes

A home is probably the biggest investment you will make. And with all the risks that surround us – both natural and man-made – no one knowingly under insures their homes. But when disaster strikes, that is the situation a large number of Californians find themselves in. In 2008, a survey found that 75% of the homes in San Diego and San Bernardino counties were under insured. Think of a worst case scenario where your home is destroyed by wildfire and you find the house rebuilding cost is $250,000 more than the insured value. Would you be able to go to the bank and withdraw that sum from your checking account?

The main cause of this problem lies a lack of clarity of the insurance options available. A homeowner gets his house valued and then looks for a home insurance policy that will cover that amount. This is what is known as cash-value insurance coverage. But when the time comes to make a claim, these cash-value insurance policies deduct the structure’s physical depreciation from the eligible repair cost. If the house is destroyed, these policies limit payments to the fair market value at the time the destruction occurred – the rebuilding costs are not taken into account. There are other policy restrictions that further limit the quantum of insurance coverage.

Although no one wants to spend more on home insurance than they need to, replacement-cost home insurance, which may be more expensive, is a far safer option. This will pay for the cost of rebuilding your home, irrespective of the fair market value. Even here there are different types of coverage to choose from. Why risk making a mistake that could affect your future? Why not contact Allied Brokers and make use of the expertise we have gained in our over 50 years of providing the highest levels of insurance services to Bay Area residents? We’ll clearly spell out the options you have, explain the pros and cons of each and help (but never coerce) you into making the right choice. All it takes make sure you and your home are fully protected is a phone call to (650) 328-1000, an email to or using the free rate quote service available on our website.

Tuesday, March 22, 2011

Is Your Business Process Perfect?

You have a revolutionary product or service and your startup business is going to be a huge success. But you will be swimming in uncharted waters and mistakes can easily be made. Or you may have a business plan that will knock the stuffing out of the competition. But you can’t win the war without getting into the trenches and in the heat of battle mistakes are made. Perhaps you have a successful established business. Unless you’re wearing a halo, you have made mistakes in the past and will make them again in future. In all these scenarios, the mistakes can be, at best embarrassing and at worst, ruinous.

You think you are protected from the financial implications because you have liability insurance. But general liability insurance policies do not cover your against errors and omissions (E&O). E&O insurance or professional liability insurance policies protect businesses and professionals against claims made by their clients for damages they have suffered due to negligence or inadequate work. Anyone who reads the newspapers knows that these claims are becoming more frequent and the settlements are often astronomical. Business owners and specified employees and subcontractors are protected under this policy for claims made against them. The amount of coverage is governed by the policy amount and it can be limited to a specified geographical location or to state, country and even worldwide coverage. In today’s world, even the most risk free of business is open to E&O liability. Suppose you run a tailoring business and a needle is left in a dress by accident. A customer claims that when trying on the dress the needle went through her skin and damaged a nerve. You could be sued for millions.

At Allied Brokers, we have been insuring businesses for over 50 years and we know all the risks they face. If you do not have E&O insurance or are not sure if you are properly covered, contact us and we’ll tell you where you stand, what the risks are and show you what you can do about it. All it takes is a call to (650) 328-1000 or an email. Click on to learn more about our business and other insurance services.

Monday, March 21, 2011

Business Insurance Is Our Business

The state of California has an economy that is larger than that of most countries in the world. There is not type or size of business that does not exist here. And for over half a century, Allied Brokers has been meeting the business insurance needs of California’s industries. Our objective is not just to sell insurance but to provide our clients with the protection they need to recover from unforeseen events and disasters that could ruin them financially.
As a business owner or manager you know the importance of insuring a business. But there is no such thing as a blanket business insurance policy that covers all eventualities. For example, suppose you run a business selling exotic and expensive food specialties. Your business is insured, but what happens if you experience a major power outage and all the food you have in stock goes bad due to lack of refrigeration? Will your policy cover you against this loss? With business insurance you need to think of all eventualities, no matter how unlikely the occurrence may be. Then check to see if your insurance covers them all. Coverages are defined in two ways – either specific coverage is mentioned in the policy or all risks are covered excepting those that are specifically excluded. Either way, if the risks you have listed out are not covered, you need to buy additional insurance to cover them. At Allied Brokers we will work with you to help you understand the risks your business faces – some of which may not have occurred to you – and then evaluate the costs and benefits of getting you the coverage you need. When making a commercial decision you want to have all the issues, fact and options clearly understood. That’s what we’ll help you to do in regard to your business insurance so that you can be sure of making the right decisions. Visit our website at to find out more about what we can do for your business and commercial insurance needs. Talking to us is as easy as calling (650) 328-1000.