[StBernard] News You Can Use - 10/26/05

[Westley Annis]

October 26, 2005

Alltel Customers - Listen Up 

Like several of the cell phone service providers, Alltel came to the
assistance of the People of Katrina by not charging overage or roaming
charges to us for a period of two months after Katrina hit.  That two month
period expires on October 28th.  Therefore, if you haven't already done so,
you should evaluate your current Alltel calling plan and make sure that it's
still right for you given your current "new" circumstances.   If your
current plan isn't right, give them a call. Paying an additional $20 - $30 a
month to buy some extra minutes may be a lot less expensive than paying
overages on a per minute basis.  Just a heads up. Can you hear me now?
(oops, wrong carrier)

 


SBA News


The deadline for filing "physical loan" applications with the SBA has been
extended.

Originally, October 28th was the deadline for filing your paperwork with SBA
if you were applying for a loan for your personal residence or business
equipment.   That deadline has now been extended until January 11, 2006.
If you have not already done so, you should call SBA at 1-800-659-2955 and
get the paperwork to apply for a loan on your home or business property.  It
cost you nothing to apply and there's nothing you can lose by doing so.

 

If you have already applied for a loan and want to know where your
application stands, you can call that same number and ask them for an update
on your application. The phones are staffed from 5 am till 10 pm central
time.  

 

If you are a business owner (including sole proprietors) and would like some
help in getting the forms necessary to apply for business loans and also
perhaps, getting some help in completing these forms, you can visit the
"Business Recovery Center" located at One Canal Place in New Orleans. It's
open Monday through Saturday, from 8 to 5.  This center is specifically set
up to assist business owners.  They have all the applications you would
need, as well as available assistance in completing the forms.  There are
also several business oriented agencies in the center who may be able to
help you as well.

 

Those of you who need assistance with SBA on a personal level can visit any
of many Disaster Recovery Centers  (DRC) located throughout the state.  In
St. Bernard, the DRC  is located in the parking lot of the new Wal Mart.
There are 3 DRC's in Orleans Parish (in addition to the business center) and
3 more in Jefferson Parish.  For the specific location of these centers as
well as any other centers located in the state, go to this site:  

http://www.sba.gov/disasterarea3/SBA_LA_OFC.pdf  

 

 


Insurance Matters


 

What I am about to discuss borders on being "legal advice".  For the record,
it is not legal advice as I am not an attorney.  It is merely information
you may find helpful.  If you would like legal advice on this matter, you
should consult an attorney.

 

There have been a lot of questions about the process of settling your
insurance claims.  Many feel that if they accept a check today from the
insurance company, that indicates they have "closed the book" on the matter
and won't be able to revisit the issue in the future. Their concern is that
had they waited a little longer, maybe they would have found some more
covered claims and could have gotten more reimbursement from their insurers.
Perhaps they're concerned that the scales the insurers are using to
determine how much items or work will cost are not accurate.  In any event,
they're hesitant to accept a check from the insurers today.

 

The other night, I was driving home after working a half day (12 hours) and
heard an attorney on the radio advising the listeners that if the insurer
offers a check, you should accept it.  His advice was to take what they are
offering now, and that in doing so, you do not preclude yourself from the
opportunity to go back to them for more.  

 

I happen to agree with this philosophy.  In settling my homeowner's claim, I
made it clear to my adjuster that my accepting of the check didn't close the
book on the issue.  He concurred and indicated there will be many "issues"
that will arise as we go through the repair process.  He indicated if while
doing the repairs, we came across damages that were covered but not noticed
in the initial inspection, they would cover them and compensate me for them.

 

To my knowledge, the only "hard" deadline that exists for getting funds from
your insurers is that under Louisiana law, we have one year from the date of
loss to conclude all aspects of the claim.

 

There may be a very important deadline in your policy that is coming up very
soon.  Some policies contain a technical provision that requires your
submission of a "formal proofs of loss" within 60 days after the casualty.
That date falls on October 28, 2005.

Usually the field representative or adjuster's inspection constitutes proof
of claim.  Communication with your agent does not.

Just to be sure, you may want to send some type of correspondence or
communication to the insurer prior to the 28th  to avoid any potential of a
"technical defense" in the future.  Even though your loss is not fully
adjusted or calculated, a fax or certified return receipt mail
correspondence to your insurer may be a good thing to send if you have not
yet had your inspection.  

 

Frankly, I would be surprised if any insurer would hang their hat on such a
technicality, but you never know.   

 

 

And while we're talking money:

 

If you have a mortgage on your property, your settlement check from your
insurer will most likely be made payable to you and your mortgage company.
In order to process this check, it needs to be endorsed by all parties.
Different mortgage companies handle this different ways.  

 

Some mortgage holders will simply ask you to send them the check so they can
endorse it, and then return it back to you.  Some mortgage companies will
ask you to endorse the check and send it to them.  They will then deposit it
into an escrow account (held by them) for your behalf.  They will send you
money as you need it to repair the property they hold as collateral.  They
are on sound footing in doing this. 

 

Remember the mortgage company is very interested in having your property
repaired.  Their holding on to the check and disbursing the funds as the
repairs are made is their way of ensuring that the work gets done.
Otherwise, you may be inclined to go to Tahiti with the funds and leave the
lender holding the title to a relatively worthless property, while you still
owe them lots of money on it.

 

Either way, when you get your settlement check from the insurer, note to
whom the check is made payable.  If your lender is one of the payees, be
sure to contact them and ask how they will handle it.  This will save you
the hassle and potential embarrassment of standing in line at the bank
waiting to deposit your check, only to be turned away because you don't have
all the proper endorsements on the document.

 


Finally, a small commercial


 

Are you wondering what to do when you receive your check in settlement of
your insurance policies?   

 

For many, these checks will total over $100,000.  These funds need to be
placed somewhere safe, so they are available to you when you need them to
rebuild your house, or purchase another property. Do not be tempted to have
someone "put these funds to work for you in the market."

 

Many of you know that professionally, I am a Certified Financial Planner
professional.  If you would like to receive information on a federally
insured savings account paying very attractive rates on money held until it
will be used to rebuild, please give me a call or reply to this e mail.
This account has no fees or minimums and is insured by the FDIC.  I'd be
happy to tell you about it and give you the details.

 

Go out and do something fun today.

 

DISCLAIMER:  This e mail is intended to help those of us who have been
impacted by Hurricane Katrina.  It may contain information that is somewhat
legal  in nature or affect your taxes.

 

References to legal or tax considerations are intended only to alert you in
a general way of those considerations which may effect you.  We do not
engage in the practice of law.   All legal considerations must be referred
to and passed upon by your attorney.  All tax considerations should be
reviewed by your tax preparer.

 

Paul V. Perez
Certified Financial Planner
 
Financial Network Investment Corporation, Member SIPC
7642 Old Hammond Highway
Baton Rouge, LA  70809
(504) 494 3144
(225) 248 6635
(225) 208 1885 (fax)