Archive for the ‘Insurance’ Category

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Homeowners Insurance 101 – What You Need to Know

Tuesday, May 19th, 2009

For most people, their home is their largest investment and the centerpiece of their retirement savings. Homeowners insurance is necessary to protect that investment, but do you know what type to get and how much coverage you need? There are four types of coverages that are contained in the homeowner’s policy: dwelling and personal property, personal liability, medical payments, and additional living expenses.

We’ve compiled some guidelines for you to help make the decision process a little easier. You can read the whole, unabridged version here.

Property Damage Coverage

Property damage coverage helps pay for damage to your home and personal property. Other structures such as a detached garage, a tool shed, or any other building on your property are usually covered for 10% of the amount of coverage on your house.

Personal property coverage will pay for personal property including household furniture, clothing, and other personal belongings. The amount of insurance coverage is usually 50% of the policy limit on your dwelling. The coverage is also limited by the types of loss listed in the policy. The coverage only pays the current cash value of the item destroyed, unless you purchase replacement cost coverage. Your homeowner’s policy also provides off-premises coverage. This means that the policy covers your belongings against theft even when they are not inside your home.

Personal Liability Coverage

Homeowner’s policies provide personal liability coverage that applies to non-auto accidents on and off your property if the injury or damage is cased by you, a member of your family, or your pet. The liability coverage in your policy pays both for the cost of defending you and paying for any damages the court rules you must pay. Liability insurance does not have a deductible that you must meet before your insurer begins to pay losses. The basic liability coverage is usually $100,000 for each occurrence. You can request higher limits that are available for an additional cost.

Medical Payments Coverage

Medical payment coverage pays if someone outside your family is injured at your home regardless of fault. This includes payment for reasonable medical expenses incurred within one year from the date of loss for a person who is injured in an accident in your home. The coverage does not apply to you and members of your household.

Additional Living Expenses

If it is necessary for you to move into a motel or apartment temporarily because of damage caused by a peril covered in your policy, your insurance company will pay an amount up to 20% of the policy limit on your dwelling for these expenses.

You can protect your home, property and liability with the proper insurance policy. Take the time to access what you need to ensure you are covered.

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Winter Snow Means Spring Flooding – Are You Insured

Wednesday, December 24th, 2008

Fema is strongly warning homeowners to get flood insurance this year. Heavy snows and cold winters, hint at spring flooding. Check it out at FloodInsurance.Net

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Can Santa Claus Sue You if He Falls Off Your Roof

Wednesday, December 24th, 2008

One of the key components of your homeowners insurance policy is your premises liability coverage.
Premises liability involves your responsibility as a property owner to maintain safe conditions for people while on your property. As a homeowner, you can be held liable for injuries which occur in or around your home. (or in this case on your roof). If a person slips, trips, or falls as a result of a dangerous or hazardous condition, you might be considered to be fully responsible. Property owners are generally held responsible for falls as a result of ice, snow or wet surfaces. Any abrupt changes in flooring, holes, protrusions, sharp corners, debris, poor lighting, or a hidden hazard. How much responsibility you have often depends on the nature of the visitor who is injured.

Invitees

Where a homeowner, by express or implied invitation, induces or leads others to come upon the premises for any lawful purpose, a duty to exercise ordinary care arises to keep the premises safe. The invitation may be express, implied from known and customary use of portions of the premises, or inferred from conduct actually known to the homeowner. Workers or contractors are typically considered invitees.
Licensees

A licensee is a person who has no contractual relation with the owner of the premises but is permitted, expressly or implicitly, to go on the premises. A social guest at a residence is normally considered a licensee. The homeowner is liable to a licensee only for willful or wanton injury. It is usually willful or wanton not to exercise ordinary care to prevent injuring a licensee who is actually known to be, or is reasonably expected to be, within the range of a dangerous act or condition.
Trespassers

Surprising to many homeowners is the fact that a duty is also owed to those without permission to be on the premises. A trespasser is a person who enters the premises of another without express or implied permission of the owner, for the trespasser’s own benefit or amusement. The duty of the owner to a trespasser is not to prepare pitfalls or traps for the trespasser nor to injure the trespasser purposely. Once the owner is aware of the trespasser’s presence or can reasonably anticipate such presence from the circumstances, (EVIDENCE of skateboarders in an unfinished swimming pool would fall into this category) then the owner has a duty to exercise ordinary care to avoid injuring the trespasser.

Homeowner’s Insurance policies cover this form of legal liability in the event that anyone suffers an injury while on the insured property. The extent of your liability, and the extent of your coverage will have a lot to do with what category Santa falls into. Since he is bringing you presents for your kids, and is clearly on your property for your benefit rather than his own, he is clearly not a trespasser. If you are Jewish, Muslim or staunchly secular and don’t believe in Santa, you might have a clearer shot at having your carrier classify him as a trespasser.

If Santa is like a meter reader, he is welcome to come onto your property for his own benefit and on his own schedule. He’s not there because you invited him, but because it comes with the job. He’s the guy regulating the whole naughty/nice thing and you don’t really have much of a say. In that case, you just can’t show wanton disregard for his safety or willfully harm him. Lighting a fire in the fireplace is probably a no no. But if he trips over your rooftop inflatable reindeer and takes a tumble it probably isn’t your responsibility.

But if you put out a plate of cookies and milk, watch out. You’ve probably made Santa an invitee and you need to exercise reasonable care to provide him with a safe environment. No black ice on the roof, no hard to see cables or satellite dishes that might catch up the sleigh or the reindeer. Its up to you to make sure that he can enter and leave safely.

Generally, even if you do have liability for an injury to a visitor, if you have reasonable homeowner’s insurance your are going to be covered under your premises liability coverage. If you aren’t sure about your coverage, check out our homeowners insurance quote system here.

And remember, even if you do get sued by Santa Claus, your insurance carrier probably has a responsibility to defend you in courth. Its one of the Clauses in your policy.

Read more about premises liability coverage here

Or Track Santa here.

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America Cools Down – Arson is down by Half from 1998 to 2007

Tuesday, December 23rd, 2008

Are we a more mellow nation these days? Over the 10 year period from 1998 to 2007 the number of arson fires in America is down by 50%. Is it a sign of a calmer society? Or is it just a reflection of a society growing richer year by year. It will be interesting to see if the mortgage meltdown will find a correlation with a new rise in arson as desperate homeowners and businesses torch their properties and hope that their insurers will “show [them] the money.”

* An estimated 32,500 intentionally set structure fires occurred in 2007.
* Intentionally set fires in structures resulted in 295 civilian deaths.
* Intentionally set structure fires also resulted in $733,000,000 in property loss.
* 20,500 intentionally set vehicle fires occurred, no change from 2006, and caused $145,000,000 in property damage, an increase of 8.2% from 2006.

The following table shows the number of fires, deaths, and dollar loss due to intentionally set structure fires that occurred from 1998 to 2007. Note: Injury data for intentionally set structure fires are not reported to NFPA.

Arson Fire Statistics Year Fires Deaths Direct Dollar Loss In Millions
1998 76,000 470 $1,249
1999 72,000 370 $1,281
2000 75,000 505 $1,340
2001¹ 45,500 330 $1,013 (excluding 9/11)
2001² - 2,451 $33,440 (including 9/11)
2002 44,500 350 $919
2003 37,500 305 $692
2004 36,500 320 $714
2005 31,500 315 $664
2006 31,000 305 $755
2007 32,500 295 $733

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Park Your Car and Ride Your Bike

Thursday, May 8th, 2008

NEW YORK, May 1, 2008 — Millions of Americans are expected to celebrate National Bicycle Awareness Month by leaving their cars behind and hopping onto their bikes during the week of May 12-16 for National Bike to Work Week. Unfortunately, bicycles have become a major target of thieves, according to the Insurance Information Institute (I.I.I.).

Almost 1 million bicycles were stolen in the U.S in 2006, according to the FBI and most of them were never seen again. With the increasing popularity of bicycling as a sport and as a means of transportation, bike thefts are on the rise.

“A good bike can cost several thousand dollars,” said Jeanne Salvatore, senior vice president and consumer spokesperson at the I.I.I. “To protect it, always lock your bike, and make sure you have adequate insurance coverage.”

Bicycles are stolen most often in densely populated areas such as cities and suburbs, but university and college towns are another hot spot; in fact bicycle thefts represent over half the property crimes on campus.

Bicycles are covered under the personal property section of standard homeowners and renters insurance. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane or other disaster listed in your policy.

There are two types of coverage for personal property.

* Actual Cash Value
Actual cash value is what the bicycle is actually worth given its age. A ten year old bicycle, for example, would be valued at the cost of a new bicycle minus ten years depreciation.

* Replacement Cost Coverage
Replacement cost coverage will reimburse you for what it would cost to replace your ten year old bicycle with one of like kind and quality at today’s cost. Replacement cost coverage costs about 10 percent more than actual cash value, but it is a good investment.

Homeowners and renters insurance also provide liability protection for harm you cause to someone else or to their property. Therefore, if you injure someone in a bicycle accident, and they decide to sue, you will be covered up to the limits of your policy. This protection also includes no-fault medical coverage; in the event you injure someone, he or she can simply submit medical bills to your insurance company so that medical bills can be paid without the injured person having to sue you. This coverage usually ranges from $1,000 to $5,000. To make filing a claim easier, the I.I.I. suggests the following:

Save your receipts
When you buy your bicycle you will probably purchase expensive equipment to go with it. Be sure to save all your receipts. The cost of a helmet, patch kits, pumps, extra inner tubes and other essentials can add up quickly. If your bike is damaged or stolen, having receipts can help speed the claims process.

Add your bicycle to your home inventory
Everyone should have an up-to-date home inventory of their personal possessions. This can help you purchase the correct amount of insurance and will make the claims filing process easier if there is a loss. To help you create a home inventory, the I.I.I. provides free, downloadable software located at www.KnowYourStuff.org. As well as listing all your possessions, the software allows you to add digital photographs of your valuables and save scanned receipts.

To protect yourself and your bicycle while cycling, follow some simple rules:


* Always wear a helmet; the most serious bike injuries are to the head.
* Wear reflective clothing so motorists can see you clearly.
* Properly maintain your bicycle; repair tires, gears and brakes as they age.
* Obey the rules of the road. Follow the same rules that apply to cars and other vehicles such as stopping at stop signs and yielding to pedestrians.
* Ride in the same direction as cars, never against traffic.
* Ride well to the left of parked cars. This will help you avoid being “doored” when a motorist unexpectedly opens the driver’s side door as you ride by.

To learn more about bicycle safety visit Advocates for Auto and Highway Safety.

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Putting in a Pool? Cover it with insurance (and a solar cover)

Saturday, April 12th, 2008

I’m installing a pool—what kind of insurance do I need?

All pools—from a simple above-ground kiddy pool to an aquatic extravaganza—can be dangerous and need to be properly insured and comply with local safety standards.

According to the Center for Disease Control, over 3,200 people drown each year. Among children, ages one to four, most drowned in residential swimming pools. Most of these young children had been out of sight for less than five minutes and were in the care of one or both parents at the time.

If you plan to purchase a pool, the I.I.I. suggests that you:

  • Contact your town or municipality
    Each town will have its own definition of a “pool,” often based on its size and water depth. If the pool you are planning to buy meets the definition, then you must comply with local safety standards and building codes. This may include installing a fence of a certain size, locks, decks and pool safety equipment.
  • Call your insurance agent or company representative
    Let your insurance company know that you have a pool, since it will increase your liability risk. Pools are considered an “attractive nuisance” and it may be advisable to purchase additional liability insurance. Most homeowners policies include a minimum of $100,000 worth of liability protection. Pool owners, however, may want to consider increasing the amount to $300,000 or $500,000.You may want to talk to your agent or company representative about purchasing an umbrella liability policy. For an additional premium of about $200 to $300 a year, you get $1 million of liability protection over and above what you have on your home. It would also provide added liability protection when you drive.

    If the pool itself is expensive, or if you decide to install an in-ground structure, you should also have enough insurance protection to replace it in the event it is destroyed by a storm or other disaster.

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Can a renter get insurance for her home?

Tuesday, April 8th, 2008

Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

There are two types of renters insurance policies you may purchase:

  1. Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
  2. Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy

With either policy, you may want to consider purchasing a floater. A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

Thanks to: III.org

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How do I pick an insurance company?

Tuesday, April 1st, 2008


There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company:

  • Licensing
    Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. To find out which companies are licensed in your state, contact the state insurance department.
  • Price
    Many companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet. (you can get quotes right here) Your state insurance department may publish a guide that shows what insurers charge for different policies in various parts of your state.
  • Financial Solidity
    You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.
  • Service
    Your insurance company and its representatives should answer your questions and handle your claims fairly, efficiently and quickly. You can get a feel for whether this is the case by talking to other customers who have used a particular company or agent. You may also want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.
  • Comfort
    You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.

hat tip to the III

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Got Stuff? Take a Home Inventory

Thursday, January 31st, 2008

Every homeowner’s insurance policy includes some coverage for loss of your stuff. You know, your furniture, your clothing, your music, your dishes. Your Stuff. But you can’t claim it if you can’t show you had it. The Insurance Information Institute has a great little tool for taking an inventory of your stuff. Download it here from Knowyourstuff.org

Here’s the link to the software:

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Mold, its not just ruining your bread

Wednesday, January 30th, 2008

Molds – a type of microscopic fungus – are found in virtually every ecosystem in every climate on earth. They have existed in the natural environment for hundreds of millions of years and humans have co-existed in the presence of mold and other fungi throughout the entirety of their evolution. Molds and other fungi are used in the production of everything from foods to medicines.

There are more than 100,000 species of fungi of which at least 1,000 are common in the United States. According to the Centers for Disease Control and Prevention (CDC), mold
can be found almost everywhere, and will grow indoors where there is moisture. Some of the most commonly found species are Stachybotrys, Cladosporium, Penicillium and
Aspergillus.

While some mold species can damage property if unchecked and some can affect people with allergies and immune deficiencies, exposure to mold only rarely results in health problems. Common health concerns arising from exposure to mold include hay-fever-like allergic symptoms, according to the CDC. Certain individuals with chronic respiratory disease may experience difficulty breathing when exposed to some molds, and people with immune suppression disorders or underlying lung disease are more susceptible to fungal infections.

The Insurance Information Institute has compiled this report on mold and the standard homeowners insurance policy.

Click on the file name below to download the full document:

Download/View File: Mold and Insurance (PDF File) (381 K)

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