By:  James Lunders,  Insurance Agent
Chances are, either your home or the home of someone you know, has a fuse box.  Fuses function the same way breakers do—to cut off power if an electrical circuit is overloaded.  Both fuses and breakers can be very effective in protecting your home against an electrical fire.

However, one problem that can arise with fuses occurs when someone inserts a fuse of higher amperage than the circuit is designed for.  For example, a homeowner tires of replacing blown fuses and inserts a 30-amp fuse where a 20-amp fuse should go, the 30-amp fuse allows more current into the circuit than the circuit was designed to accommodate.  The fuse “blows” indicating that the circuits are overloaded. These must be replaced as the fuse element burns up.  A fire can result.

If you have a fuse box, it’s a great idea to have an electrician inspect it and check the wire size to install the proper fuse bases. Type S fuses should be used in aging fuse panels to prevent over fusing. Type S fuses are the only type allowed by the National Electrical Code in new fuse box installations.

Whether you have a fuse box or a breaker box, have your electrician tell you the size of your electrical service to make sure it is sufficient. Years ago, 60-amp or 100-amp service wasn’t uncommon; but most families today have electrical appliances that demand more service.  It’s smart to get an electrician’s opinion on whether an update is needed since modern homes are typically wired for minimum 200-amp service.

Electrical fires are all too common, and many homes in the U.S. need electrical updates.  Please take whatever action necessary to update the electrical service in your home.

By James Lunders, Insurance Agent 

Whether you’re a first time buyer of auto insurance or already have it but are looking for a better deal, you should be asking several questions. 

First, is the person from whom you’re buying (your agent) a visible, established member of your community—someone you know and trust? 

Second, is the company from whom you’re buying well known? What is its reputation? What about price? Because there are hundreds of companies competing for your business, prices vary—sometimes a lot. It may pay you to shop. Be sure the premiums you’re quoted are for equal amounts of coverage. 

How about service? Price is important but saving money won’t mean much unless you get the service you need— when you need it. If possible, ask other clients of your prospective agent how they’ve been treated, especially when they’ve had a claim. Find out how the company handles claims. Is the method convenient for you, no matter where you have an accident? How about solvency? Is the company you’re considering still going to be in business when you file your claim? Your state department of insurance has financial rating information on all of the companies that do business in its state. 

Once you’ve decided on a company and an agent, there are more questions to ask. How much coverage do you need? The required minimum amounts of liability coverage may not be enough for you.  Consider your needs in light of your assets and income. How much can you afford to pay if there’s a big judgement against you because of an accident?

What about deductibles? Deductibles lower your premiums—most commonly for collision and comprehensive coverages —but increase the amount of loss that comes out of your pocket.  How much additional risk are you willing to take in order to save? Should you carry collision and comprehensive coverage? As your car’s value decreases, you might consider dropping these coverages and pocketing the savings on premiums. But consider if the savings are enough to offset the risk of footing the entire cost of repairing or replacing your car.  

Auto insurance is not a generic commodity. It is a product that should be tailored to each individual. James Lunders can help you answer these questions and thereby help you tailor your auto insurance to your specific and unique needs.

By James Lunders, Insurance Agent

Life is….spending time with family and friends. Watching a ball game. Lying in a hammock on a Saturday afternoon.

Life can be all of these things and more. Life is happy and sad and all things in between. It’s about living.

But life is also about protecting your family from the unexpected.  Life is making sure your family can continue without financial hardship if you are no longer around to help them. One way to do that is to have adequate life insurance coverage on you and your spouse.  Life is….being protected with life insurance.

Whether you are the main breadwinner or not, the American Life Insurance Council states you should have five to seven years worth of your salary in coverage. Others increase it to 10 years.

According to LIMRA, 68 million adult Americans have no life insurance. With so many Americans leaving their loved ones financially vulnerable, the Life and Health Insurance Foundation for Education (LIFE) designated September as Life Insurance Awareness Month (LIAM), a time for the public to take stock of their life insurance needs.

The best way to determine your needs is to begin with calculating what long-term expenses you have that your loved ones would be responsible for if you were not around. Those expenses could include a mortgage, college tuition and everyday items such as food and clothing.

The type of policy you choose is an important decision. Term coverage can be very affordable initially, but premiums may increase over the life of the policy. Permanent policies usually have higher premiums but tend to stay level. How long you need the policy is also important to consider.

A qualified life insurance professional can assist you in your calculations and show you policies that may fit your needs.

Life is ever changing. Protecting your family from financial struggles after you are gone is what life insurance is all about.

By James Lunders, Insurance Agent

Water damage can occur almost anywhere in your house. Water-using appliances and fixtures, such as refrigerators with icemakers, dishwashers, washing machines, toilets and water heaters are common locations of leaks.

Unfortunately, slow leaks at these appliances and fixtures are often times impossible to see until it is too late. If it goes undetected, a slow leak can lead to rotting house framing and subfloors, and can be a precursor to a catastrophic leak that can release several gallons of water per minute, causing extensive water damage. A water leak detection system may help prevent these problems.

There are two types of water leak detection systems: passive and active.

Passive leak detection systems are intended to alert you of a leak. They generally sound an audible alarm tone and some may also feature a flashing light. Passive systems are frequently battery-operated, stand-alone units. They are inexpensive and easy to install. Some simply sit on the floor while others may be wall mounted. A moisture sensor is located on the floor and activates the alarm when it becomes wet. Passive leak detection systems are especially useful in locations where it is easy for someone to hear the alarm such as near refrigerators, dishwashers, or toilets.

Active leak detection systems usually generate some type of alarm, but also perform a function that will stop the water flow. They feature a shut-off valve and some means to determine that a leak is occurring. Most devices use moisture sensors to detect a leak. Other systems use a flow sensor and a timer to determine that something is leaking and the water needs to be turned off.

An individual appliance system, which costs $50 to $150, detects a leak from a specific appliance, such as a washing machine or water heater and shuts off the water supply to that appliance only. You can often install these systems without the use of special tools.

A whole house system, which costs $500 to $1,500, sends an alarm when a leak is detected and automatically shuts off the main water service. Some models can also be integrated with a local or central station security system.

Contact a local contractor, building official or hardware store for more information about water leak detection systems. If you’d like more information about how you can prevent water losses in your home, please call or stop by my office.

By James Lunders, West Des Moines Insurance Agent

Although the number of crash-related fatalities for children has steadily decreased since 1975, motor vehicle crashes remains one of the leading causes of death for children¹.  The National Highway Traffic Safety Administration (NHTSA) revealed that, on average, 6 children under the age of 15 years were killed and 721 were injured in crashes everyday in 2002².  Sadly, most of these deaths could have been prevented.  Half of all children under age 15 killed in crashes were completely unrestrained².  Although all 50 states currently have some form of child restraint laws, parents and drivers need to make sure children are appropriately restrained every car ride.  Here are some tips to help keep kids safe in vehicles:            

• All children 12 and under should ride in the back seat of the vehicle appropriately restrained³            
• Make sure children are appropriately restrained according to current best practices.  NHTSA recommends the following guidelines⁴:
  • Infants: Birth until at least 20 pounds AND at least 1 year old should ride rear-facing in an infant or convertible seat
  • Toddlers: Over at least 20 pounds AND over at least 1 year old; up to 40 pounds should ride forward-facing in a convertible or combination seat
  • Young children: Over 40 pounds; Up to at least age 8, unless 4’9” should ride in a belt-positioning booster seat with a lap and should seat belt
  • Older children: Over 8 years old or 4’9” should use a lap and shoulder seat belt

• All child safety seats should be used and installed according to the manufacturer’s instructions, as well as the vehicle owner’s manual instructions
• Never place a rear-facing infant seat in front of an airbagBe a good role model…always wear your seat belt.  For adults, seat belts in combination with air bags provide the best protection against injury and death in crashes.  

¹Insurance Institute For Highway Safety

²National Highway Traffic Safety Administration

³AmericanAcademy of Pediatrics

4Current as of May 2003

January 24th, 2008

By  James Lunders

Insurance Agent
So your 1040 is filed and you are now anxiously waiting for your refund. What do you plan on doing with it? Go on that long-awaited cruise, get a new set of golf clubs or buy that wide-screen TV you’ve had your eye on? There are so many ways you could spend your refund, but there may be better alternatives to consider.
According to the Internal Revenue
Service, over 75 percent of American taxpayers received a federal tax refund, with the average around $2,500. It’s what you do with your refund now that may create a better financial future for you and your family later on.
Instead of spending your refund this year, consider funding an Individual
Retirement Arrangement (IRA), setting up a college savings fund for a child, or paying down credit card debt. These options will help to improve your financial situation.
First on your list of priorities should be paying down any high-interest credit card debts you have incurred. By paying only the minimum each month, you may be paying just the interest (or less) on the debt and little or nothing towards the principal. Paying down the debt can free up additional money for other important financial needs.
If debt is not a problem, your tax refund could provide you an excellent opportunity to fund an existing IRA or establish a new one. For the 2007 tax year, you can contribute up to $4,000 to an IRA. If you are 50 years or older by December 31, 2007, you can add an
additional $1000 to the account. Making a tax-deductible contribution to a Traditional IRA is an option if you are not participating in an employer-sponsored retirement plan or, if you are participating, your Adjusted Gross Income falls within eligibility guidelines.
A Roth IRA may be a more appropriate choice, depending on your eligibility. Contributions to a Roth IRA are not tax deductible. However, qualified distributions are received free from federal income tax.
Your refund could also be used to fund a Coverdell Education Savings Account
(ESA) or 529 Plan for your child. Contributions are not deductible, but withdrawals to pay qualified educational expenses are free from federal income tax.
One thing to remember after you’ve decided the fate of this year’s refund: the check you received is not a windfall but the return of an interest-free loan you provided the government.
Regardless of the pleasure you may get from receiving a large check each tax year, adjusting the amount withheld by Uncle Sam to reduce the amount of future refunds may be an appropriate course. You may not get a refund in April, but there may be more in each paycheck to contribute to a Coverdell ESA, 529 plan, IRA or to pay down debt throughout the year.
Take some time to consider your options before making the down payment on that cabin cruiser. The earlier you start saving for your future, the more you may have during your retirement.
If you have questions about these options and others, you owe it to yourself to contact a financial services professional that you know and trust. Your financial future may depend on it.

January 31st, 2008 A question I face a lot is with regard to child safety seats. The problems usually come in the form of confusion. People don’t know how to get the seat placed correctly in the car, don’t know what size seat to use and don’t know if the seat they are using is of good quality. The government is stepping in and in the article listed below from the AP you can see that the safety ratings are getting easier to understand.

James Lunders, Insurance Agent

By KEN THOMAS
ASSOCIATED PRESS

WASHINGTON — Parents who struggle to install their child safety seats or fasten their toddlers in the backseat chairs are getting new guidance from the government.

The Transportation Department said Wednesday it was revamping a consumer ratings system for child safety seats to help parents and caregivers make the best choice.

The new approach is to use a five-star rating system, based on the seats’ ability to secure a child and the ease with which the seats are installed. It also is to consider the seats’ labeling and instructions.

“We believe that the new star system will help simplify one of parents’ most important decisions: choosing the best safety seat that will protect their children,” Transportation Secretary Mary Peters said at an Arlington, Va., fire station.

Many parents can attest to the frustration found in securing a car seat or making sure their child is strapped in. The National Highway Traffic Safety Administration said seven in 10 child safety seats are either the wrong size or misused, reducing their ability to protect kids in a crash.

NHTSA estimates that child restraint systems reduce fatal injuries by 71% for infants and 54% for toddlers in cars and by nearly 60% for infants and toddlers in SUVs, pickups and vans.

By James Lunders, Agent

There are so many “rainy days” that people can experience — a sick child, a broken-down car, a late mortgage payment.
But what about a lawsuit?
These days more and more lawsuits are being filed — not just against big corporations, but also against people like you and me. Litigation can be expensive when you add up lawyer’s fees and settlements or jury awards. If you have assets, such as cars or a home, you should consider a personal liability umbrella policy.
What is an umbrella?
A personal liability umbrella policy is designed to give you extra liability protection. It can include coverage for various situations such as false arrest, false imprisonment, wrongful detention, libel, slander, defamation of character or invasion of privacy.
This policy can be beneficial, especially if you are ever sued because of an accidental injury to someone else or damage to their property.
For example, if a visitor tripped and fell down your stairs, your homeowners insurance would cover his or her doctor bills.
But if the person went a step further and decided to sue you; would your homeowners policy provide enough coverage? If a jury awarded damages that exceeded your coverage limits, you could be in jeopardy of losing your home or other assets. This is where the umbrella could help you out by giving you extra protection. A personal liability umbrella can also be applied to your auto coverage.
Why an umbrella?
A personal liability umbrella policy can give you a lot of coverage — about $1 million worth — for a small premium.
It can protect your assets when you need it the most and can bring you piece of mind knowing that you have it around.
To see if this is a policy that can be beneficial to you, talk to your insurance agent.

When you are trying to choose just the right gift for your grandchildren, you can have a tough time sifting through the newest trends and fads. Last week it was this pop star, next week it may be a new cartoon character. On top of that, you don’t want to get something that won’t last 10 minutes out of the package.
One gift that will last for many years is a life insurance policy. There are many reasons why it can be an excellent gift for your grandchild .
· Affordability – The younger the child’s age, the lower the premiums.
· Protection – Illness or injury may affect a child’s ability to purchase life insurance coverage later in life. Coverage purchased now will continue to provide protection, even if a child’s health changes, provided premiums are paid as required by the policy.
· Financial Security – Life insurance can be the foundation for a strong financial plan. The child may be able to borrow against the accumulated cash value (with interest charged) to pay for future expenses. While loans decrease death benefits and cash surrender values, the proceeds can be used for important expenses such as a college education or the purchase of a home.
Giving a gift of life insurance to your grandchild can be one of the most significant things you do during your lifetime. He or she may not understand at the time how important the gift is, but should grow to appreciate it in the future.
Take the guesswork out of your gift shopping. Life insurance is a gift that will last a lifetime.

By James Lunders, Agent

By James Lunders, agent

April 15 has long been considered a date to avoid. Visions of tax men coming for your money are common in many advertisements on television and in print.
Wouldn’t it be nice if you could do something to lower your federal income tax burden instead of mailing a big check on April 15? With a traditional Individual Retirement Arrangement (IRA), you may be able to do just that.
A contribution of the 2007 maximum of $4,000 prior to April 15, 2008 could reduce your taxable income, making your federal tax burden less for the year. If you were 50 or older by the end of 2007, you can add a $1000 catch-up contribution to potentially reduce the tax burden even more.

If you already have a traditional IRA, plan to make a contribution prior to the April 15 deadline. If not, talk to a financial professional as soon as possible to start one.
There are restrictions governing who may contribute to a traditional IRA. If you don’t qualify, consider a Roth IRA. You won’t get the federal tax advantages now, but qualified withdrawals can be made free of federal income tax during your retirement years.
Either way, having a plan for retirement is important. You owe it to yourself to make the best plan as soon as possible.