Kato Insurance | Kato News

Auto-Owners receives J.D. Power & Associates Award!

Fri, 5 Nov 2010 16:25:18 -0500

J.D. Power & Associates has named Auto-Owners Insurance “Highest in Customer Satisfaction with the Auto Insurance Claims Experience” for the 3rd consecutive year! To read the press release, please click here.

Why Auto-Owners Annuities are Better Than Certificates of Deposit (CDs)

Thu, 16 Sep 2010 15:50:12 -0500

Why would anyone, especially a senior, own an Auto-Owners annuity rather than a CD? Because they simply work better!

Unfortunately, a CD is the first choice that many conservative savers make for their hard earned savings. Many savers are not aware of all the advantages of Auto-Owners annuities over CDs. Some mistakenly assume auto-owners annuities are associated with less safety, restricted access to funds, high fees, and high minimum deposits. Nothing could be further from the truth. In order to better understand the benefits of Auto-Owners annuities let’s focus on seven points that deal with these mistaken perceptions.

Reason #1
Safety: Conservative investments plus the strength of Auto-Owners equals real peace of mind!
Auto-Owners invests in the most secure investments possible – The combination of U.S. Government Bonds and investment grade bonds represents over 73% of assets. We do not chase the latest fads developed by Wall Street. Rather, we stick with the investment program that has been successful for us over many years. Safe. Sound. Secure.® is more than a phrase; it’s our position and our promise.

Reason #2
Liquidity: No Problem! Auto-Owners annuities make funds available!
Most CDs give a customer about five to seven days to withdraw or roll the
money without a penalty at maturity. At all other times, a “significant penalty may
apply”. That penalty may be all, or at least, 90 days of interest. Like a CD, Auto-Owners annuities have a penalty for early surrender. But, unlike CDs, Auto-Owners allows up to a 10 percent withdrawal each year without penalty. Even better, for those ages 60 and greater, the surrender charge period is five years. Additionally, under certain conditions the surrender charge is eliminated due to critical illness or nursing home confinement.
No problem access to funds makes Auto-Owners annuities better.

Reason #3
Practicality: Auto-Owners annuities are better by design!
Flexible contributions. Unlike CDs, funds can be added to an Auto-Owners annuity at any time in the future without having to open a new contract.
No confusing introductory “teaser rates”. Just Auto-Owners straight forward competitive fixed rate of interest.
Minimum guaranteed interest rate of 3%. No “if”, “and”, or “buts!”
No maturity dates to track.
Local service. Auto-Owners annuities always come with a conveniently located independent agent.
Auto-Owners annuities are better because they function better on important practical issues.

Reason #4
Performance: Auto-Owners annuities are a quality investment!
Often, seniors rely on the interest income on CD’s for a portion of their
retirement income. As the rate has recently dropped, so has their return, thus reducing their income. Our rate of interest is competitive and stable. In fact, our lead deferred annuity product, Item 300, has had only one adjustment over the past year!*
Competitive and stable best describes our performance and makes Auto-Owners
annuities better.

Reason #5
Never outlive income: Only annuities can do this!
Not knowing how long their money will last is understandably frightening to many planning for and living in retirement. Auto-Owners annuities can guarantee a
lifetime of worry free and hassle free income. Sure, CDs can provide funds until the funds run out; but periodic withdrawals are not available and CDs can’t guarantee lifetime income. Auto-Owners annuities are better because they conveniently reduce, and even eliminate, the fear of living longer than income.

Reason #6
Manage Taxes Better: Annuities make retirement income go further!
Taxes are due annually on CD interest whether or not a withdraw is made. On
the other hand, interest on deferred annuities is only taxed as it is withdrawn. Tax
deferral of interest and control over associated income tax make annuities better.
Seasoned savers recognize the importance of controlling the negative effects of income tax. Auto-Owners annuities put the savvy saver in better control of tax on interest income.

Reason #7
Avoid Probate: Annuities are a valuable estate-planning tool!
Probate delays, cost, and public disclosure are all avoided using annuities. CDs not held in Trust don’t offer an important benefit like this. Auto-Owners annuities are better because they avoid probate, with or without other estate planning.

Auto-Owners annuities are better…especially for seniors! Compare for yourself. Visit with your Kato Insurance Agent to learn even more about annuities the Safe. Sound. Secure.® Auto-Owners way.

*Item 300 adjusted from 4% to 3.8%, 11/04

The Growing Necessity of the Umbrella Policy

Wed, 1 Sep 2010 14:31:32 -0500

According to Jury Verdict Research (2009), 16% of recent plaintiff awards exceeded $1 million. These findings confirm that owning a personal umbrella policy has never been more critical. Plus, the decision becomes increasingly simple when you learn how little an Umbrella Policy can cost with multi-policy discounts. Below is a sample of recent jury verdicts demonstrating the wide range of exposures facing individuals, which can result in significant judgments. These cases are examples of why we believe it is a responsible, yet reasonable policy for you to own.

The Homeowners Policy & College Students

Thu, 12 Aug 2010 07:49:10 -0500

Question: "Is a computer provided by my daughter's school for use while she is attending covered for theft out of her locked room while she is out of the room? Toward the end of the school year, someone came through her suite mate's room, through the bathroom, and into my daughter's room and stole the computer she had signed out to her by the school. I just received a letter from the school stating that she had to pay $1,600 before she would be allowed to return to school. Does homeowner's insurance normally pay for such losses? Do you have any idea why my agent would say this was not covered and it was the responsibility of the school?"

Clearly this is a covered loss under the "ISO standard" homeowners policy. Note: Be aware that insurance companies do not all use the same insurance forms. That is why it can be foolhardy to purchase insurance over the internet without the professional counsel of a qualified insurance agent who can properly match your exposures with the best policy and price available for your individual needs.

The homeowner's policy covers any personal property "owned OR USED by" an insured if it is damaged or lost due to a covered peril. The student was certainly using the property and theft is a covered peril. The term "insured" includes a resident relative, and courts have determined consistently that a dependent child away at school is still a resident of the named insured's household. And, under the theft peril, the policy says, "Property of a student who is an 'insured' is covered while at a residence away from home if the student has been there at any time during the 45 days immediately before the loss." In this case, the student was there at the time of loss, so this theft restriction does not apply.

There is, however, one limitation that does apply. For personal property "usually located at" an insured's "residence" other than the residence premises, only 10% of the policy's contents coverage is available for losses. In this case, 10% of the contents limit is more than adequate for the loss of the computer. Of course, there is a deductible to contend with, typically $250.

In addition, policy conditions require that theft losses be reported to the police. Although "police" is not defined, it is presumable that notice to the campus police would suffice. That being done, this appears to be a clearly covered claim, the only mystery being why the agent would say that it isn't covered.

Copyright 2000 by the Florida Association of Insurance Agents, Inc. Reprinted with permission.

NOTE: Policy coverages and circumstances can change at any time, so the information above may not be accurate at the time of reprinting or subsequently to that time. IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information. The most current, up to date version of this article can be found at IIABA’s Virtual University at http://vu.iiaa.net.

MANKATO FREE PRESS: Storm damage still swamping repair companies, insurers

Thu, 5 Aug 2010 14:22:39 -0500

“Another prudent rule of thumb: Reputable roofing and siding contractors don’t need to go door-to-door in storm aftermaths.”

By Brian Ojanpa  Free Press Staff Writer

MANKATO — This summer’s surfeit of damaging storms has been a stimulus package of sorts for roofing and siding companies and auto body shops dealing in hail damage.  The June combo platter of hail and tornadoes — there were three twisters in Blue Earth County alone — continues to tax the resources of home and auto-repair entities.  “It’s just been amazing,” said Hansen Siding & Windows sales manager Taylor Murphy.  Based upon homeowner phone inquiries and dealings with insurance adjusters, Murphy estimates that 80 percent of homes in a west-to-east swath of Mankato have had hail damage to some extent.  “There’s also been a lot of siding damaged, which is extremely unusual for hail,” he said.  Matt Peterson, residential roofing manager for Schwickerts of Mankato, said this summer has produced by far the strongest local demand for roof repair he’s seen in his 13 years with the company.  He said hail does not respect shingles’ age; the frozen pellets pock new and old roofs alike.  His take: There are probably 10,000 roofs in town with insurance claims on them.  Don Kersten, area manager for a State Farm Insurance catastrophe team, said 50 people have been brought in to assist the company’s Mankato-area insurance adjusters with claims inspections.  He said the company has received about 4,500 homeowner claims in an area roughly encompassing Blue Earth County and west to New Ulm.  Jennifer Eager of Madelia Insurance Center said her office has finally caught up with claim settlements after being swamped with calls for two weeks following a June 17 hail storm affecting most of that city’s homes and many vehicles.   Madelia auto body shop owner Dave Koehler said he’s repaired 30 to 40 hail-dinged vehicles thus far with no let-up in sight.  “I’ve been going six days a week, sometimes seven,” he said.  How long does he work?  “I go home when I’m tired,” he joshed of the 14- to 16-hour days.  Meantime, repair to storm-damaged homes continues unabated as contractors found themselves having to prioritize jobs on the fly early on.  Generally speaking, Murphy said properties with water damage get top priority, followed by people who have sold their homes and have an impending closing date, followed by those whose homes are for sale.  The storms also attracted unscrupulous opportunists looking to make a buck on unnecessary roofing repairs.  Harold Warner Jr. of Madelia said a roofer showed up at his parents’ Madelia home following the June 17 hail storm and deemed the shingles in need of replacement.  Warner said upon learning of the visit he inspected the roof himself — the newly reshingled roof — and found nary a trace of damage.  Pat Griffiths of Mankato had the same experience in early July and again a few days ago, when guys showed up at his door claiming to be roofing company representatives.  Griffiths, whose roof had been reshingled several days after a late-June hailstorm, played dumb on both occasions.  The first would-be contractor walked all around the house and told Griffiths the roof was in woeful condition.  “Oh, this is bad,” Griffiths said, mimicking the man’s words.  At that point it was time to reel the guy in and net him. Griffiths led him into the garage.  “I instructed him not to trip over the bundle of shingles that the roofers had left two days ago,” said Griffiths, who proceeded to give the guy a verbal beat-down.  The second solicitor climbed upon the roof and told Griffiths the shingles looked to be “10 or 11 years old.”  Law enforcement authorities say homeowners in such circumstances should never sign anything and should first consult with their insurance companies.  Another prudent rule of thumb: Reputable roofing and siding contractors don’t need to go door-to-door in storm aftermaths.  Said Murphy, “We refuse to knock on doors and we refuse to contact people who haven’t contacted us first.”