Newsletters - Past Issues

Video home insurance self inspections Update Feb 20 2025

 

Home Insuarance Inspections

 

Home owners in high fire risk areas probably already know they have a good chance of being routed to the California Fair Plan for the fire portion of their homeowners insurance. Having covered Cal Fair in many articles, I won’t go into the specifics of what those policies cover, but it’s safe to say the fire risk and a few related ones are what Cal Fair insures.

The liability part of the homeowners policy along with a few other different risks such as water damage, theft, and falling objects to name a few are addressed with a companion policy called a Difference in Conditions (DIC) policy, also nicknamed by some a “wrap” policy.

Interesting enough, the Cal Fair policies are easy to get and coverage is seldom refused. What is next to impossible to obtain is the DIC policies.

Since the DIC doesn’t cover fire, why would that policy be hard to get and why are the DIC companies pulling out of California en masse?

Without journeying into the weeds too far, just know that the DIC covers falling objects while the Cal Fair covers windblown objects. Since a tree, or even the fire itself, could be argued as to what caused what and what preceded what, therein may lie the problem. Additionally, when whole towns are obliterated by a wildfire, the lawsuits fly everywhere. The insurance companies that could write the DIC policies probably don’t want to be anywhere near the many lawsuits and claims that follow.

When you obtain a Cal Fair policy, you can expect an inspection of your property at some point. You may not even know when or if it occurred. On the DIC policy, if you are lucky enough to get one or keep the one you have, an inspection may also occur. Once again you may or may not be notified.

Recently, a few DIC companies are requesting video/photo inspections by the homeowners themselves. A fairly new method of obtaining the information they need to confirm a policy, the self-inspection video has requirements homeowners should be aware of in advance so one does not video tape him or herself out of coverage.

Once notified a self-inspection is required, you will receive detailed instructions by a web link `system` and questionnaire. Making sure your video will meet with approval, prepping and servicing the areas that will be filmed will not only give you a better chance at keeping your policy and/or keep premiums low, it will likely make your home just a little bit safer for both you and the insurer.

They will require all sides of the home be filmed or photographed, including the siding and the roof, your furnace and HVAC systems, fireplaces, visible plumbing in and around all applicable areas, the electrical panel with manufacturer label, the water heater, the kitchen, living room, and other rooms, the appliances, and any outbuildings, structures, pools or other systems or features they deem necessary. 

Obviously you want the video to show a well-kept home, free of debris, with well serviced appliances and good housekeeping. It is suggested you photograph/video graph in daylight and have good lighting indoors.

In conclusion, the self-inspection option and the guide they will provide you assists both you and the insurer. Doing what is required will also provide a video/photo record of many things in the home which will help with any claims you may have should an event such as a wild fire occur.

“Watching the markets so you don’t have to”    

(end)    

(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)    

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: news@moneymanagementradio.com

 

 

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Cuniberti Money Matters update Feb 1 2025

Nvidia and Apple are worth HOW MUCH?

 

 

 

Too big to fail is a term that hatched back during the bank and real estate blowup in 2008/09. It referred to the size of the major banks that controlled so much money, the Federal Reserve would have no choice but to bail them out. Not doing so would have, so they thought, brought down the entire financial `system` of the United States and possible even the entire civilized world. We will never know if that premise holds true as the government is convinced of such and will has lived by that mantra since 2008 and will likely continue to do so.

Enter today’s Money Matters article and I dare to use the “too big to fail” theory on another financial entity, that being applicable to an individual stock. Or possible even many such company stocks whose value has ballooned to previous unimaginable heights.

A company’s total value, which might also be thought of a company’s worth, is arrived at by taking the number of shares in the stock market multiplied by the current price of an individual share. For those wondering what a “share of stock is”, think of it like the pink slip of your car. Whereas you only have one pink slip for your car showing ownership, companies have many shares showing ownership. Your car can be said to have one share, and thereby one owner. Companies however create many shares so the ownership of that company can be distributed and traded back and forth with many owners.

For example, XYZ company may have 1,000,000.00 (one million) shares out in the public markets being actively traded every waking minute the stock market is open. If at any one time the share perhaps trades at two dollars, it could be said one million shares at two bucks apiece would put a value of the company at two million dollars.

Fast forward to last week in the stock market and semi-conductor chip market suffered a major blow to their stock prices on news a Chinese company had found a better way facilitate the hot artificial intelligence  (AI) market.

The largest chip maker NVidia, who arguably led the AI market, lost 600 billion in value in one day. Prior to the crash that hammered many chip stocks, the value of NVidia stood at 3.5 trillion. That’s with a “T” mind you.

Keep in mind, the entire value of all the money exchanged for all goods and services in one year (GDP) in the United States stands at about 27 trillion. Doing some quick math, the previous value of NVidia before last Monday was about 12% of GDP. NVidia’s one day loss of 600 billion was about 2.2% of GDP.

Does anyone see a problem with this?

Now understand that a company’s value rising and falling does not immediately affect the overall economy such as a default or bankruptcy of a large financial institution would. We saw how something like that can and did cause market upheavals back in 2008 when a firm called Lehman Brothers collapsed which started a chain of financial implosions that almost brought down the global financial system.

But when we see just one company’s net worth being the equivalent size of 12% of the entire U.S. economy as well as a one day sell off the size of almost 3% of that same economy, you have to wonder just how much air has been pumped into the stock market balloon by the professional gamblers of the world also known as “investors” in more polite company.

Nvidia slipped under APPLE, whose market cap sits at 3.54 trillion, about where NVidia was prior to the crash.

Considering Bank of America is only valued at about 350 billion (only right? LOL), and Lehman Brothers was valued at 111 billion when its collapse shook the entire world, you have to wonder with a company, (or actually a handful of companies)  valued at 35 times larger in today’s market place, should anyone feel a sense of calm in the company of these financial behemoths?

Whether the market value of a company can actually cause a financial implosion should something happen to the valuation, the amounts in question would likely cause some upset somewhere. Just how much damage an event like that would cause however, remains to be seen. And my guess is we will probably see what happens at some point.

“Watching the markets so you don’t have to”    

(end)    

(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)    

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: news@moneymanagementradio.com

 


 

Markets and Wildfires Update Jan 26 2025

 

 

 

The 2024 December jobs report came out last Friday and it showed an increase of 256,000 jobs following a 212,000 gain in November. Analysts expected 165,000 created jobs for December so saints be praised, the country seems robust!

Not so fast said Wall Street and the Dow subsequently shed  a whopping 696 points on the day sending traders into the local bars at closing to gulp down a couple of double martinis to ease the pain of it all. So good economic news causes the market to crater?

How can that be you say?

Let me explain.

I miss the olden days. Back when sanity ruled Mr. Market, good economic news meant positive market movement. That was before the governmental money guys tried to harness the winds of supply and demand that drove the market in the direction it wanted to go.

Which is to say let it freely meander to and fro in response to a healthy and vibrant U.S. economy that was the envy of markets everywhere.

So the question becomes what happened since then where now good news on the economy causes the stock market to bleed red and bad news might cause a market rally?

What happened was the repeated interventions by the Federal Reserve (the FED) nearly every time the markets got a cold. So many times has the FED intervened, messed with, manipulated and basically tried to steer the market with monetary (money) injections, the knee jerk reaction by investors has now become what will the FED do in response to any economic news that comes out.

Bad news might cause the FED to juice the market by lowering interest rates, making credit easier, and bailing out a bank or two. Good economic news might cause the FED to do the opposite and tighten up on the money spigots causing markets to pull back.

Investors now seem more concerned with FED response to a positive or negative economic statistic than the actual health of the economy itself. What an odd investing world we now live in.

In other news, the Los Angeles fires no doubt will mean higher insurance rates for us homeowners.

Just last month, I penned an article discussing the solvency of the California Fair Plan insurance entity and how they might be, self-admittedly, one large fire away from insolvency. Well, the news is out the latest fires in Southern California might be the costliest insurance event in their history. I have seen social media chat suggesting Cal Fair is in shambles. I can say as a Cal Fair agent, they are still up and running and, at least now, seem no worse for wear. I have no way of knowing their current financial picture, but they continue to communicate and operations continue, at least from an agent’s point of view.  In the article, I mentioned Cal Fair may have to instigate assessment charges on policies throughout the state to cover shortfalls. Much like a property tax bill where you get an invoice for a new road or what have you, a fire assessment would send you a bill out of the blue to help cover costs.

In the middle of the crisis, it’s difficult to tell how this will all wash out. But my guess is the Federal and or state governments along with the insurance companies will all have to contribute massive amounts of money to cover the costs of these fires. A bail out by somebody is in the cards.

A bail IN, where you and I will be asked to contribute is also a possibility.

In conclusion, whatever happens, if you thought insurance rates of all kinds were high now, it’s not rocket science to foresee even higher rates are in our future.

For now, let us offer our prayers and support for those victims and their families, our first responders and all those involved in bringing this horrid event to a close.

“Watching the markets so you don’t have to”    

(end)    

 

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: news@moneymanagementradio.com

 


 

Market and Wildfire News Update January 18 2025

 

Fire Insurance   A must in today's world

Market news also included in today's musing

 

The 2024 December jobs report came out last Friday and it showed an increase of 256,000 jobs following a 212,000 gain in November. Analysts expected 165,000 created jobs for December so saints be praised, the country seems robust!

Not so fast said Wall Street and the Dow subsequently shed  a whopping 696 points on the day sending traders into the local bars at closing to gulp down a couple of double martinis to ease the pain of it all. So good economic news causes the market to crater?

How can that be you say?

Let me explain.

I miss the olden days. Back when sanity ruled Mr. Market, good economic news meant positive market movement. That was before the governmental money guys tried to harness the winds of supply and demand that drove the market in the direction it wanted to go.

Which is to say let it freely meander to and fro in response to a healthy and vibrant U.S. economy that was the envy of markets everywhere.

So the question becomes what happened since then where now good news on the economy causes the stock market to bleed red and bad news might cause a market rally?

What happened was the repeated interventions by the Federal Reserve (the FED) nearly every time the markets got a cold. So many times has the FED intervened, messed with, manipulated and basically tried to steer the market with monetary (money) injections, the knee jerk reaction by investors has now become what will the FED do in response to any economic news that comes out.

Bad news might cause the FED to juice the market by lowering interest rates, making credit easier, and bailing out a bank or two. Good economic news might cause the FED to do the opposite and tighten up on the money spigots causing markets to pull back.

Investors now seem more concerned with FED response to a positive or negative economic statistic than the actual health of the economy itself. What an odd investing world we now live in.

In other news, the Los Angeles fires no doubt will mean higher insurance rates for us homeowners.

Just last month, I penned an article discussing the solvency of the California Fair Plan insurance entity and how they might be, self-admittedly, one large fire away from insolvency. Well, the news is out the latest fires in Southern California might be the costliest insurance event in their history. I have seen social media chat suggesting Cal Fair is in shambles. I can say as a Cal Fair agent, they are still up and running and, at least now, seem no worse for wear. I have no way of knowing their current financial picture, but they continue to communicate and operations continue, at least from an agent’s point of view.  In the article, I mentioned Cal Fair may have to instigate assessment charges on policies throughout the state to cover shortfalls. Much like a property tax bill where you get an invoice for a new road or what have you, a fire assessment would send you a bill out of the blue to help cover costs.

In the middle of the crisis, it’s difficult to tell how this will all wash out. But my guess is the Federal and or state governments along with the insurance companies will all have to contribute massive amounts of money to cover the costs of these fires. A bail out by somebody is in the cards.

A bail IN, where you and I will be asked to contribute is also a possibility.

In conclusion, whatever happens, if you thought insurance rates of all kinds were high now, it’s not rocket science to foresee even higher rates are in our future.

For now, let us offer our prayers and support for those victims and their families, our first responders and all those involved in bringing this horrid event to a close.

“Watching the markets so you don’t have to”    

(end)    

(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)    

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: news@moneymanagementradio.com

 

 

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(530) 559 - 1214

 


 

UPDATE MARKETS AND CAL FAIR FIRE UPDATE

 

 

The 2024 December jobs report came out last Friday and it showed an increase of 256,000 jobs following a 212,000 gain in November. Analysts expected 165,000 created jobs for December so saints be praised, the country seems robust!

Not so fast said Wall Street and the Dow subsequently shed  a whopping 696 points on the day sending traders into the local bars at closing to gulp down a couple of double martinis to ease the pain of it all. So good economic news causes the market to crater?

How can that be you say?

Let me explain.

I miss the olden days. Back when sanity ruled Mr. Market, good economic news meant positive market movement. That was before the governmental money guys tried to harness the winds of supply and demand that drove the market in the direction it wanted to go.

Which is to say let it freely meander to and fro in response to a healthy and vibrant U.S. economy that was the envy of markets everywhere.

So the question becomes what happened since then where now good news on the economy causes the stock market to bleed red and bad news might cause a market rally?

What happened was the repeated interventions by the Federal Reserve (the FED) nearly every time the markets got a cold. So many times has the FED intervened, messed with, manipulated and basically tried to steer the market with monetary (money) injections, the knee jerk reaction by investors has now become what will the FED do in response to any economic news that comes out.

Bad news might cause the FED to juice the market by lowering interest rates, making credit easier, and bailing out a bank or two. Good economic news might cause the FED to do the opposite and tighten up on the money spigots causing markets to pull back.

Investors now seem more concerned with FED response to a positive or negative economic statistic than the actual health of the economy itself. What an odd investing world we now live in.

In other news, the Los Angeles fires no doubt will mean higher insurance rates for us homeowners.

Just last month, I penned an article discussing the solvency of the California Fair Plan insurance entity and how they might be, self-admittedly, one large fire away from insolvency. Well, the news is out the latest fires in Southern California might be the costliest insurance event in their history. I have seen social media chat suggesting Cal Fair is in shambles. I can say as a Cal Fair agent, they are still up and running and, at least now, seem no worse for wear. I have no way of knowing their current financial picture, but they continue to communicate and operations continue, at least from an agent’s point of view.  In the article, I mentioned Cal Fair may have to instigate assessment charges on policies throughout the state to cover shortfalls. Much like a property tax bill where you get an invoice for a new road or what have you, a fire assessment would send you a bill out of the blue to help cover costs.

In the middle of the crisis, it’s difficult to tell how this will all wash out. But my guess is the Federal and or state governments along with the insurance companies will all have to contribute massive amounts of money to cover the costs of these fires. A bail out by somebody is in the cards.

A bail IN, where you and I will be asked to contribute is also a possibility.

In conclusion, whatever happens, if you thought insurance rates of all kinds were high now, it’s not rocket science to foresee even higher rates are in our future.

For now, let us offer our prayers and support for those victims and their families, our first responders and all those involved in bringing this horrid event to a close.

“Watching the markets so you don’t have to”    

 

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: news@moneymanagementradio.com

 


 
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