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Customer Alert
In this Issue:
Client of the Month
Giants Tickets Drawing
July Winner
Homeowners Insurance Tips for First-Time Buyers
Homeowners Insurance Tips for First-Time Buyers
The first thing you need to do when you buy a new home is to consider homeowner's insurance. Allied Brokers will take you through that, but there are a few pointers about homeowner's insurance you should be aware of. Homeowners Insurance comprises four parts - Structure, Personal Belonging, Liability and Living Expenses.

Structure refers to payment for repairs to actual damage to the house from natural conditions like hail, lightning or a hurricane, or from fire. However this policy will not cover flood and earthquake damage which will have to be bought separately if required.

Personal Belongings covers all property within the house against theft and destruction. The typically recommended amount of purchase should be 50% to 70% of the structure amount. If you have special items to be protected, mention this to the broker.

Living Expenses provides coverage for you and your family should you have to reside elsewhere if your home is rendered unlivable or while it is being rebuilt because of destruction or some other calamity.

Each family has its own needs so discuss with your broker the kind of distribution coverage that best suits your family. Your broker is there to guide you and answer your questions.

Chris Grammer
Chris Grammar
Connie Prince
Connie Prince
Personal Lines and
Office Manager
630 Cowper Street
Palo Alto, CA 94301
P: 650-328-1000
F: 650-324-1142
Open M-F 8:30-5pm
LIC# 0525309
Welcome to Allied Brokers' August 2010 Newsletter!
Giants Tickets Drawing - July Winner
Winner from July 2010 Drawing

Andrew F. Pierce, Esq.
(Winner from 115 client respondents)

To participate in this month's (Aug 2010) drawing send us an email with subject as "Giants Ticket - August 2010 Drawing".
Client of the Month
Client of the MonthTimothy Broderick
Broderick Law Firm

An Allied Brokers business
insurance customer profile.

2600 El Camino Real, Suite 506
Palo Alto, CA 94306
Tel: (650) 857-9000
Fax: (650) 857-1100

The philosophy of the Broderick Law Firm is to put an end to sexual harassment. We are devoted to zealously representing victims of sexual harassment and retaliation. Our experience gives us the ability to make a fair and frank assessment of your case.

Our goal is to provide cost-effective representation to resolve your dispute as quickly and efficiently as possible. We often take cases on a contingency-fee basis, which means we take a percentage of a judgment or settlement award.

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Last month we discussed why long term health care insurance is so important. Presuming that you have agreed with our arguments in favor of long term care insurance (if you haven't we probably did not explain it clearly enough, so please contact us with your queries), you are probably planning to go in for long term care insurance, if you have not already done so. But insurance is not a simple product like a pen that you buy and start to use. There are various options and permutations in every kind of insurance policy and long term care is no exception. Understanding the options before you will enable you to get the right kind of policy to meet your needs.

The Elimination Period

Just as most insurance policies have a deductible clause, so to a long term care policy may have an "elimination period." While each long term care policy will have different terms and conditions, the elimination clause is the first and perhaps the most important one you will encounter. The clause literally covers the period for which you are not covered by the policy, or for which the policy is eliminated. It works just like the deductible clause in other types of insurance and is also sometimes called a "waiting period." What it boils down to is that there is a period you must wait before the policy kicks in and this could be anything from 20 to 100 days from the time you become disabled or make a claim against the policy. During this period, you will need to pay all the care bills yourself. You can normally choose the duration of the elimination period and in most cases, the longer the period, the lower the premium.

Do not confuse this with the 90 day certification period that is required for tax qualified long term care policies. In the case of a tax qualified policy the certification demands that you must be certified to be unable to carry out 2 or more of your daily activities without major care and support from an aid giver and that this loss of ability must be expected to last for at least 90 days. The elimination period starts only after the certification is completed.

But do not let this put you off - there are various elimination period options you can choose from.

The Zero Day Elimination Period

A zero day elimination policy means exactly what it says - there is no elimination period. Your coverage kicks in from day one with zero elimination and covers home or community based care. The premiums with this option will be higher but keeping in mind the cost of even 10 days of care, it may be the best option.

The Calendar Day Elimination Option

Under this option, every day that you do not receive care coverage is counted against the elimination period. During this time you can you can be cared for by friends and relatives and once the specified elimination period is over, the policy will pay for your health care. This is a good option for those who can be certain of support from friends and family for at least a week or a month and will help to reduce the premiums.

The 1 = 7 Elimination Option

This is a slightly complicated option. Under this, the elimination periods is calculated on the basis of days in which you have received care and it will conclude only when the elimination time frame has been satisfied. However, 1 = 7 means that even one day of home care a week will count as seven days of the elimination period being used up. Be sure you understand the implications before choosing this option.

The Days Of Service Elimination Period

This option means that the elimination period is calculated on the basis of the number of days care is received. In the case of a 60 day elimination period where care is received twice a week, it will take 30 weeks for the elimination period to be completed. While this often offers the lowest premiums, the high costs of care during the elimination period can be a major issue and should not be ignored.

Choosing The Best Option

If you have adequate assets to cover your expenses during the elimination period, a long period with low premiums may work for you. A history of good health may also influence your choice. But keep in mind that sickness and disability can strike anyone, irrespective of past good health, with no warning. And with the cost of long term care (as mentioned in part 1) being what it is, you need to carefully balance out the risks and benefits of the various elimination period options when making your choice.

There is much more to be examined when choosing a long term care policy. Don't let the complications and options available put you off. At Allied Brokers we feel that it is our duty to guide our clients through the often intricate maze of insurance and present them with comprehensively explained options that are clear and easy to understand. And once they know the choices before them, we work with them to ensure that the right decisions are made - those that meet their requirements and offer them the kind of long term care coverage they may need. And we don't do this only for long term care - we follow this policy in every insurance product we offer. Contact us at phone (650) 328-1000, fax (650) 324-1142 or email Or visit our website at to learn more about the various health insurance options available to you. We will help you to find the right policy for your needs.

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