R&R Insurance Blog

In the 2014 budget, the President is looking to raise estate tax rates and lower exemptions that applied in 2009. While nothing is finalized yet, Jonathan Forster & Jennifer Smith provide interesting opinions on the potential impacts of the proposed budget: Weighing The Obama Budget's Impact on Estate Planning.

Under the President's proposal, as of 2018 the top estate, gift, and GST tax rates would return to 45% (up from 40%), the estate and GST tax exemptions would revert to $3.5 million, and the gift tax exemption to $1 million (all down from $5.25 million). In their opinion, this would make lifetime gift planning more complicated for wealthy families and closely-held business owners who want to transfer ownership to their family members.

Additionally, this year's budget would only tax property transferred to trusts through sales or similar transactions that are "disregarded" for income tax purposes under the grant trust rules. The potential impact: even in its more restricted form, passage of this proposal would adversely affect planning with grantor trusts.

The Obama administration wants to terminate a trusts' GST-exempt status on its 90th anniversary and subject the trust assets or subsequent distributions to GST tax. Potential impact: this would limit the long-term tax leverage afforded by GST exempt trusts and a family's ability to preserve wealth over time.

The Administration would also limit the availability of the GST exemption to qualified transfers made directly by a living donor and not through trusts. Generally, direct payments to medical care providers or tuition for another person are gift and GST-tax exempt. The potential impact, in their opinion, is that it would affect all non-exempt trusts, not just HEETs.

Now is the time to make the contact Pat Driscoll and take advantage of current estate planning laws.

Insurance carriers use credit scores as part of their calculations to determine the level of risk you would pose to them as an insured. They have found a direct correlation between credit scores and claim activity. Knowing that, it's important to keep your credit scores in good shape so that your insurance premiums stay in line.

Here are 10 ways to increase your credit score by 100 points - most often this can be done within 45 days.

1. Check your credit report. Get a free credit report from each of the three credit reporting agencies (Equifax, Experian and TransUnion) once a year at annualcreditreport.com. Look for errors that lower your credit score and take action to correct them. Review the negative factors in the report and work on improving them, such as paying bills on time or reducing debt.
2. Pay your bills on time. Set up automatic payments using your bank's bill pay service or sign up for e-mail alerts from your credit card company if you sometimes have trouble paying bills before the due date.
3. Pay off any collections. Paying off a collection will increase your score, but be aware that the record of a debt having gone into collection will stay on your credit report for seven years.
4. Get caught up on past-due bills. If you missed a payment, get current as soon as you can. A missing payment can lower your score by as much as 100 points. It may take a some time for this black mark to fade from your credit report, but take heart: your credit score usually depends more on your most recent activity than on past credit problems.
5. Keep balances low on your credit cards. A common rule of thumb is to keep the balance at or below 10 percent on each line of credit to improve your credit score. A balance close to or over the limit will significantly reduce your credit score.
6. Pay off debt rather than continually transferring it. While a balance transfer to pay zero interest or a lower interest rate on your debt can be worthwhile, make sure you pay down the balance before increasing your debt load. FICO says paying down your overall debt is one of the most effective ways to boost your score.
7. Don't close paid-off accounts. Closing unused credit card accounts reduces your available credit and can lower your credit score. Keeping them open and unused shows you can manage credit wisely. And think twice before closing older credit card accounts, because a long credit history improves your score.
8. Shop for new credit over a short time period. If you are shopping for a mortgage, a car loan or a credit card, lenders typically pull your credit report to see if you qualify and to determine the rate they will charge. Too many inquiries over time can negatively impact your score, but if you cluster these applications within a few days or a week, the FICO scoring system will recognize that you are comparing rates for a single new loan or credit card rather than attempting to open multiple new lines of credit.
9. Have a mix of credit types. FICO prefers to see consumers with both installment loans and credit cards . If you are repaying student loans or have a car loan or a mortgage, then having one or two credit cards is also a good idea. While having too many credit cards can be a negative factor, you should have at least one to prove you can handle credit appropriately.
10. Apply for new credit sparingly. Only apply for new credit when you actually need it and not simply to boost your available credit. Opening several new credit accounts in a short time frame can lower your score.

One of the many advantages of working with an independent insurance agency like R&R Insurance is that we represent many different insurance companies. We are not a "one size fits all", or "call 1-800 for no real service or no real relationships” type of agency. The benefit to our clients is that we find the right company for your exact needs.

Two of the many great companies we represent are West Bend Mutual Insurance and Secura Insurance. They offer discounts from 5-18% depending upon the group! West Bend Mutual and Secura already have some pretty attractive rates without the discounts! Below is a list of the groups that qualify for these discounts. Wisconsin residents, please contact us for the eligibility requirements for your specific group.

West Bend Mutual Group Discounts:

Alumni Association Paid Member
American Council of Engineering
American Probation and Parole
Architects
Associated Builders and Contractors
Certified and/or Licensed Professional Engineers
Certified Public Accountants
Chiropractors
Classic Car Club Member
Commercial Partners
Community Bankers of Wisconsin
Condo Unit Owners
Credit Union Employee Association
Dental Association
Educators
Insurance or Financial Professionals
International Brotherhood of Electrical Workers
Law Enforcement Association
Mercy Health System
Midwest Dental
National Association of Women Business Owners
Pharmacists
Physicians Health Network
Post Graduate Degree Individuals
Prime Rewards
Robert W. Baird & Company
State Bar of Wisconsin
Vetrinarians
West Bend Mutual Insurance Agents
West Bend Mutual Associaties
Wisconsin Auto Collision Technicians
Wisconsin Auotmotive Aftermarket Association
Wisconsin Funeral Directors Association
Wisconsin Green Industry Federation
Wisconsin Optometric Association

Secura Insurance Group Discounts:

Architect
Attorney
CPA Association
Dentist
Doctor
Educator
Engineer
Nurse
Pharmacist
Veterinarian

After turbulent winter weather and heavy rainstorms in spring, roofs take a beating from the elements. And wherever you find damage, unfortunately you also find scams.

In the Milwaukee area, storm chasers have been known to blanket an area hit by hail or wind damage and look for unsuspecting homeowners. They’ll pass out leaflets, show up unannounced, and offer a free inspection. The scammers know the claims process with insurance companies, and based on the square footage of the roof, they can figure out how much it will cost to put on a cheap new roof. The catch is that the storm chaser does the bare minimum to replace the roof and usually pushes the homeowner to move forward with the repairs before the insurance company has a chance to inspect the damage.

The homeowner is then left with a poorly constructed roof and a claim that potentially could be denied by the insurance company because the roofers often cause the damage.

Lessons to learn:

• Insurance companies should inspect damage BEFORE work begins
• Research the roofing company
• Ask for qualifications - they should be an accredited company
• Shop around for at least 3 quotes to ensure you are getting the best price and service
• Do NOT provide money upfront - they may say it is needed to purchase supplies but it is all part of the scam

Wisconsin residents looking for help contacting your insurance company, please contact a knowledgebroker before beginning any repairs.

We've been waiting patiently and we're hoping that spring will be here to stay! Before you roll down the windows and soak up the sunshine, here are some spring cleaning tips to make sure your car is ready to hit the road.

Beat the Frost: Run the air-conditioning while defrosting the windshield. AC air is dry, so it will take the moisture out of the air by dehumidifying as it cools.

Handle the Pressure: Less air means more contact and friction between the tire and road, which wears the rubber faster, makes the engine work harder, and uses more gas - so make sure you're tires are filled to the recommended amount.

Correct the Corrosion: If your battery terminals are corroded, crack open a can of cola and pour it directly onto the battery terminals. The acid in the cola will bubble away the corrosion, improving both your connection and the odds of a successful jump-start. Once you're home remove the cola residue.

Wash in the Shade: Never wash or wax a car in direct sunlight, or if the paint is hot to the touch. Bright sun can soften the paint and make it more susceptible to scratching.

Replace Wipers: After a harsh winter, many vehicles require new windshield wipers. Having wipers in good working order is necessary, especially during intense spring showers.

Contact us more information on how R&R Insurance can help protect your vehicle.

Spring will be here before we know it! Better Homes and Gardens gave us some great ideas on how to spruce up your patio area so it's the perfect retreat or place to entertain! These ideas are easy and fairly inexpensive!

Water element: There's something about water that's serene and peaceful. Be sure to add it to your patio. Enhance those relaxing moments with a patio-size water garden.

Don't forget the power of fragrance: When you're relaxing on the patio at the end of the day, enjoy a rich aroma or subtle perfume.

Patios often look like they've just been plopped in your yard: To avoid a jarring feel, plant a border of flowering annuals, perennials, and shrubs around the edge.

Throw down a rug: There are more and more high-quality, weather-resistant rugs for use outdoors. They come in a variety of colors and styles, so you can find one to suit your tastes.

Light it up: Give your patio personality at night. Whether to illuminate a dark space or add ambiance to your favorite seating area, outdoor lighting can be just the touch of nighttime pizzazz your patio needs.

With all of the fun, new outdoor living accessories, be sure to have everything properly insured. Wisconsin residents, contact Kori Cumley to review your current policy or for more information.

Here are 5 easy things to remember to help save yourself some money when it comes to your own health care costs.

1) Compare costs of health care services

• Check with your doctor or health care facility and compare the cost of services before receiving care
• Make sure the charges are covered by your health care plan.
• Employees can use health care transparency tools to help estimate costs.

2) Prescription choices

• Generic prescriptions are a great choice for less cost.
• Utilizing a split-pill or mail order program can also save you a lot of money.

3) Choose In-Network Options

• Choose in-network providers.
• When doctors order routine lab work or when you enter a health care facility for services, always as for an in-network option.

4) Save emergency rooms for emergencies

If you are not experiencing a true emergency, visit your doctor or go to a walk-in clinic.

5) Take care of health conditions before they become costly

• Costs related to chronic conditions can be kept in check when employees learn how to improve their overall health.
• Participation in an annual bio metric screening is a good way to start understanding your own health.

For more information about WellCompForLife, about self-funding your health insurance plan, health care reform or basic employee benefits questions, contact knowledgebroker Riley Enright.

Join our group on LinkedIn: Obamacare: Strategies for Business to Survive. We welcome you to join in the conversation with our LinkedIn group dedicated to discussions for business owners on Obamacare: Strategies for Business To Survive. Read articles, download documents, join the conversation, and add your expertise!

It only takes a few inches of water in a basement to cause tens of thousands of dollars in damage. The average water damage claim, including sump pump overflow, results in approximately $6,000 worth of damage. Unfortunately, many homeowners often overlook this protection on their homeowners policy. This can easily be added with a separate endorsement called "back up of sewer and drain" with many of the carriers we represent here at R&R Insurance.

A standard homeowners policy will not have coverage for a sump pump, or any existing drainage system, and the back ups are also not covered by flood insurance so it's a very valuable endorsement to add. The average lifespan of a sump pump is about 10 years, and eventually they do wear out, but there are a few regular maintenance checks you can do as a homeowner:

NOTE: Make sure the power cord is unplugged before any maintenance.

1. Clear the debris from the basin - Make sure any unwanted items are not stored in the basin cause the float mechanism to fail. Test the float itself and make sure it's not burned out. Fill up the pit with water, and make sure it both starts and stops as it's supposed to.
2. Inspect the "check" valve - The check valve's arrow should not be pointing toward the sump pump, and it should be set up so that when the sump pump shuts off no water will go back into the pump.
3. Clean the weep hole and/or the impeller - Some pumps have a small hole between the pump and check valve, you can clean it with a tiny object like a toothpick, but be careful not to break anything into the hole. The impeller is a small filter that can become clogged, if you hear a whining noise, it could be the impeller - and it could use a good cleaning to work properly.
4. Smells - Typical odors are caused from the sump pump's trap. You can eliminate it by using a bleach water mixture to clean the basin or you can fill the basin until the sump pump engages and cycles the water to help eliminate odors.
5. Back-up power - A back up power supply or a generator is a great idea to avoid overflow when you have an outage! Most power outages are caused by thunderstorms that bring a substantial amount of rain.

Wisconsin residents, contact an R&R knowledgebroker about adding the proper protection for your home.

The snow which blanketed communities throughout Wisconsin this winter is melting on top of frozen earth. When combined with the inevitable springtime rains, excessive run off could produce record flooding.

Many people are unaware that their homeowner's policy does not cover their property and possessions in the event of a flood. Flood insurance covers the direct physical losses caused by floods, flood-related erosion, severe rainstorms, flash floods and mudslides.

According to the Federal Emergency Management Agency (FEMA), almost all Wisconsin homeowners (99%) lack proper flood insurance. Can you imagine what it would cost to recover from a flood? And are you prepared to foot that bill if it ends up happening? In most cases, the answers to these questions are no and no.

Top Ten Reasons to Have Flood Insurance:

1. Be Flood Smart! Spring flooding is almost here and there is a 30-day waiting period before coverage begins. You can’t simply wait for it to start raining before you call to obtain coverage.
2. Coverage is relatively inexpensive with an annual average premium between $300 and $400 for approximately $100,000 of coverage.
3. You can depend on being reimbursed for flood damages because NFIP flood insurance is backed by the federal government, even if the President does not declare a federal disaster.
4. You do not have to repay flood insurance benefits, and your premium will not go up because you make a claim.
5. You become eligible for additional benefits to elevate, strengthen or move your building.
6. Renters can purchase flood insurance contents coverage for their personal belongings or business inventory.
7. Basement coverage includes cleanup expense and items such as furnaces, water heaters, washers, dryers, air conditioners, freezers, utility connections, and pumps.
8. You can request a partial payment immediately after the flood, which can help you recover even faster.
9. Buying flood insurance is the best thing you can do to protect your home and business, and your family's financial security from a flood.
10. Your standard home policy does not cover damages caused by flood.

Wisconsin residents, for more information about your homeowner's policy or flood coverage, or to find out if your home is in a flood zone, contact a knowledgebroker today.

A reminder from our friends at Kelman Restoration - certain things should never be put in the dishwasher. As the photo shows us, never put a wooden spoon in your dishwasher. In the case of this insured, the spoon fell between the cracks and landed on top of the heat coil, resulting in a fire.

Other items to avoid putting in your dishwasher:

• Acrylic
• Adhesive-joined pieces all aluminum
• Antiques
• Blown glass
• Bronze
• Cast iron
• China with metallic decoration
• Crystal
• Disposable plastics NOT labeled "dishwasher-safe"
• Flatware with bone, plastic, or wood inlays or handles
• Gold-plated flatware
• Iron
• Knives
• Many nonstick pots and pans
• Milk glass
• Pewter
• Rubber tools
• Tin

Remember, dishwashers can catch on fire. Wisconsin residents, contact a R&R knowledgebroker to ensure all aspects of your home are properly covered.