Personal Insurance Newsletter

WINTER 2012

2012-01-31T15:53:00.000-08:00

More important than knowing how to submit a claim is knowing when to submit a claim and what type of events are covered under your policy.

First, it is critical to understand the purpose of insurance, which is designed to cover losses that are unexpected, accidental, or catastrophic (such as a fire, theft, or natural disaster). Everyday maintenance, for example, is not covered by your insurance policy. Likewise, damage that results from a lack of maintenance may not be covered either.

Fixing leaky pipes or an aging roof, for example, are not sudden or unexpected occurrences, and so the homeowner must arrange for these types of repairs before they cause major damage. At the same time, if a homeowner does all they can to winterize their home, then expenses related to a burst pipe will typically be covered. The more a homeowner can do to prevent serious damage to their property through regular maintenance, the better off they will be if a sudden or accidental loss occurs. If you are faced with a loss, make sure to initiate the claims process right away and retain any documentation of the loss and related expenses. If you have any questions about when to submit a claim or about your specific policy, contact your Leavitt Group insurance advisor.
Reference: iii.org

Water damage to homes accounts for billions of dollars in losses each year. It is one of the most common and costly disasters affecting homeowners and renters. However, you can protect your home and your wallet by properly maintaining your home and by purchasing the right amount and the right type of insurance coverage.

Damages arising from water that comes from the top down, such as burst pipes, wind-driven rain, and ice dams on your roof, are covered by standard homeowners and renters insurance policies. A separate flood insurance policy would be required to cover the damages when water comes from the bottom up, such as an overflowing river. This type of flood policy can be purchased through the National Flood Insurance Program (NFIP) available through the federal government.

One of the best ways you can prevent water damage is by properly maintaining your home, both inside and out. The following checklist provides tips to help inspect your property and stop water damage before you get soaked.

Check hoses and faucets. Annually inspect hoses leading to water heaters, dishwashers, washing machines, and refrigerator icemakers. Look specifically for cracks or leaks and replace as necessary. It is a good practice to replace all hoses every five to seven years, regardless of whether they are showing any damages.

Inspect sinks, toilets, showers, and bathtubs. Make sure the seal and caulking is watertight and that there are no leaks in the piping leading to these items. Fixing the slightest leak immediately upon discovery can save hours of time as well as money in the long run.

If you are going on vacation for an extended period of time, shut off of the water supply to your home. Never leave your home with the washer or dishwasher running. A burst hose in one of these appliances can cause a lot of damage to your home, even in the time it might take you to run to the grocery store and back.

Consider installing an emergency pressure release valve in your plumbing system. Should your pipes freeze, a pressure release valve can help control or limit increased pressure and may prevent your pipes from bursting.

Maintain seals around windows. The caulking may need to be replaced periodically to maintain a good seal. This will help guard against leaks.

Check roof for needed repairs. Replace shingles that are missing, damaged, or aging.

Keep downspouts in good repair. Check downspouts and rain gutters regularly and remove debris that may have accumulated. Make sure downspouts are directed away from the house.

Maintain sprinklers and irrigation systems regularly. Make sure they are not spraying the walls and foundations of the house. Protect against frozen pipes by turning off the water supply and draining outside faucets in the fall.

Reference: iii.org

FALL 2011

2011-10-31T15:00:00.000-07:00

Standard homeowner and renter insurance policies include coverage for personal items, such as jewelry. However, many policies limit the dollar amount for theft of valuable personal possessions such as jewelry, furs, and precious stones from $1,000 to $2,000 total.

To properly insure jewelry and other expensive items, consider purchasing additional coverage through a floater or an endorsement. In most cases, you would also be covered for what insurance companies term “mysterious disappearance.” This means that if your ring falls off your finger or is lost, you would be financially protected.

To make sure your jewelry and other expensive items are adequately protected, it is suggested you:

Contact your insurance professional immediately after acquiring jewelry or other expensive items
Have the item appraised
Keep a copy of the store receipt and add it to your home inventory
Store valuables in a secure location

Source: iii.org

People rarely know how much it would cost to re-build their home and replace their belongings after a total loss, and the prospect of determining local building costs and thoroughly cataloging all of their possessions can seem overwhelming. As a result, homeowners coverage has too often been based on assumptions: either a rough guess or a default percentage of the home’s structural value set by the insurance carrier. Protect your investment by playing an active role in determining the amount of insurance you need to cover the following:

The structure of your home. You need enough insurance to cover the cost of rebuilding your home at current construction costs. Don't include the cost of the land, and don't base your rebuilding costs on the price you paid for your home. For an estimate of the amount of insurance you need, contact your insurance agent. Your agent will have tools available to provide you with an estimate in order to make sure your home is properly insured.

Your personal possessions. To determine if you have enough coverage, you need to conduct a home inventory. This is a detailed list of everything you own and information related to the cost to replace these items if they were stolen or destroyed by a disaster such as a fire. For free online home inventory software, visit www.KnowYourStuff.org

Additional living expenses. This coverage is for the cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs. This is a very important feature of a standard homeowners insurance policy. This pays the additional costs of temporarily living away from your home if you can't live in it due to a fire, severe storm, or other insured disaster. It covers hotel bills, restaurant meals, and other living expenses incurred while your home is being rebuilt.

Liability to others. This part of your policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for injuries to others caused by pets. It pays for both legal defense costs and any damages a court rules you must pay.

Source: iii.org

SUMMER 2011

2011-07-29T16:06:00.000-07:00

Personal liability protection is part of your homeowners insurance policy and covers you against lawsuits for injury or property damage that you or your family members cause to other people. It also pays for damages caused by your pets. The coverage will pay for legal defense costs as well as any damages the court rules you must pay. There is no deductible requirement for liability insurance.

What is covered by personal liability insurance?
Most standard homeowners policies provide a basic limit of liability of at least $100,000 for property damages or injuries. In addition, medical payments coverage is included in most policies and reimburses you for basic medial bills incurred under a liability claim, such as a neighbor being bit by your dog or being injured on your property.

How much personal liability insurance do I need?
Consider the property and investments you own that are worth a significant amount. What would be at stake if you had a claim or lawsuit filed against you? You should purchase enough personal liability insurance to protect these assets. The standard amount that is included in your homeowners policy might be sufficient to meet your needs. However, if the value of your assets exceeds the value of the coverage, you need to consider a higher limit.

How can I secure more coverage?
You may be able to obtain additional liability coverage by simply increasing the amount of liability insurance on your homeowners policy. You should also consider an umbrella policy, which is an inexpensive way to obtain a significantly higher amount of coverage.

Source: www.rmiia.org

Do you ever wonder if you have enough insurance to cover a large insurance claim against you? And do you know where the money would come from if you weren’t adequately insured? The answers to these questions come from insurance agents who recommend that clients get umbrella policies, which kick in when policyholders reach the limit on the liability coverage in their home or auto policies.

Consider the risk in the following scenarios:

Your teenage son is in a car accident and you are sued for $1 million.
A neighbor is injured or drowns in your swimming pool.
A passerby trips and falls on the sidewalk at your house.
Your dog bites a friend’s child.

What’s My Exposure?
Today, anyone can be sued, and million-dollar judgments are becoming more common. And, alarmingly, any amount exceeding your standard liability policy would fall to you. In order to cover the costs, you could be forced to use money from your current assets, such as savings accounts, 401(k)s, or even your home. And your future earnings could be applied as well. So, while these types of catastrophic events are unlikely, insurance companies offer umbrella policies for customers who want to protect their assets and feel more secure. The good news is, this insurance is relatively affordable. Policies are generally available for $1 million, $2 million, and $5 million in coverage (availability varies by state).

How the Coverage Works
If there is a covered liability claim under your auto or homeowners policy and the dollar amount of the judgment is greater than the coverage limits you have purchased on those policies, the umbrella goes into effect. Certain coverage limits must be met on your auto and home policies before you can purchase an umbrella policy. The big question is often: How much coverage should I carry? The answer usually depends on your net worth. Calculating the value of your home, stocks, mutual funds, and retirement accounts is the first step.

Contact your Leavitt Group insurance representative for more information on umbrella insurance and for a review of your coverage options.

Source: The Hartford

SPRING 2011

2011-04-29T13:01:00.000-07:00

In wildfire situations, most homes are not destroyed by the initial fire front of the wildfire but by the embers from that fire. Creating defensible space around your home and regular clean-up of vegetation and flammable materials will lessen the opportunity for those embers to cause another fire.

Here are a few recommendations for protecting your home against wildfire:

Use fire-resistant materials when possible (especially on the roof of your home).
Create a safety zone around your home by clearing leaves, dead limbs, and other flammable vegetation. If you live in a community at risk of wildfire, FEMA recommends creating a 30- to 100-foot zone around your home.
Remove leaves and debris from roof, gutters, vents, and under structures.
Safely store flammable items such as gasoline and oily rags in approved safety cans and away from your home or other structures.
Keep a garden hose within easy access. It should be long enough to reach any area of your home and all structures on your property.
Prune trees and bushes regularly to keep them clear of power lines and chimney outlets. Remove dead branches that extend over the roof.

For more suggestions on protecting your home, visit www.fema.gov.
Source: www.fema.gov

Misconception: My home is not located in a flood zone, so floods are not a risk and I don’t need flood insurance.

Even if your home is not located in a high-hazard flood zone, you are still at risk. Hurricanes, winter storms, and snow melt are common and often overlooked causes of flooding. New land development can increase flood risk, especially if the construction changes natural runoff paths. Nearly 25 percent of all flood claims come from moderate to low flood risk areas.

Though you may not be required to hold flood coverage based on your geographic location, this is still important coverage to add to your policy. Remember, standard homeowners and renters insurance policies do not cover flood damage, so you will need to discuss this coverage with your agent in order to add it to your policy.

Misconception: The value of my home has declined with recent market fluctuations, so I should be able to lower my insurance coverage to save money.

The value of your insurance policy should be based on the cost to rebuild your home rather than the market or tax value of your home. The purpose of the homeowners policy is to rebuild your home and replace its contents in the event of a total loss, so the policy value should be based on actual rebuilding and replacement costs rather than perceived market value.

How do you determine how much coverage you need? Your insurance agent has access to tools that will help estimate the rebuilding costs of your home. Your help in maintaining an accurate home inventory will aid in ensuring your policy is adequate for your needs.

Misconception: I added my boat to my homeowners policy - I don’t need any other coverage to protect this asset and my liability.

While it is easy and convenient to add a boat or personal watercraft to your homeowners policy, the coverage options are limited. A separate watercraft insurance policy provides more in-depth coverage, including the following options:

Uninsured/underinsured watercraft bodily injury
Fuel spill liability and wreckage removal
Personal effects
Unattached equipment coverage
Emergency assistance

Winter 2011

2011-01-31T15:44:00.000-08:00

As a condominium owner, there is comfort in knowing building maintenance, roof repairs, landscaping, and insurance will be taken care of. An insurance policy provided by your homeowners association will most likely cover the exterior building structure and common areas, but what about potential structural damage to your unit and coverage for your personal belongings? Without a personal insurance policy, you could be left paying for damages out-of-pocket if your unit floods, is damaged in a fire, or is burglarized.

You will need two separate policies to protect your condominium investment:

1. Your own personal insurance policy

This provides coverage for your personal possessions, structural improvements to your condo, and additional living expenses if you are the victim of fire, theft, or other disaster listed in your policy. This policy also includes liability protection.

2. A “master policy” provided by the homeowners association

This covers liability risk and physical damages for the common areas you share with others in your building including the roof, basement, elevator, and walkways.

If you have questions about what coverage is in place, talk to your homeowners association, insurance professional, or family attorney.

If you are currently renting a home or apartment, you should strongly consider renters insurance. No one likes to think about the possibility of a fire or a burglary, but these are real possibilities worth insuring against. Here are a few things you should know about renters insurance:

Renters insurance protects your valuables from property losses, including flood, fire, theft, and vandalism.

Renters insurance provides liability protection to protect you from lawsuits resulting from someone injuring themselves while visiting your home. Potential liability risks include slips and falls, accidents at parties, and pet attacks.

The amount you receive if your belongings are damaged or stolen depends upon whether your policy is for “actual cash value” or “replacement cost.”

The best way to determine how much renters insurance coverage to buy is to conduct a home inventory. Check out www.knowyourstuff.org for free software you can use to create your own home inventory.

Renters insurance is very affordable. In addition, discounts are usually available to those who have multiple policies with the same company and for those with safety features, including smoke detectors, dead bolt door locks, and fire extinguishers.

FALL 2010

2010-10-29T14:47:00.000-07:00

Every year, winter storms across the United States cause significant property damage to homes, cars, and businesses. Understanding what information is needed for the claims process is an effective way to make the most of your insurance dollar. Here are six helpful tips to follow when filing a claim:

1. Call your insurance company as soon as possible. Let them know the extent of the storm-related damage. If you had to evacuate your home, let them know where you are staying and how you can be reached.

2. Document your loss. Make a list of your damaged property, and take photographs to substantiate your losses. If you had completed a home inventory previously, provide that information to your insurance company.

3. Keep receipts for additional living expenses (ALE). If you are unable to live in your home due to an insured disaster, your insurance company will typically provide reimbursement for additional living expenses, such as restaurant meals and hotel rooms. Save your receipts so you can submit them for reimbursement.

4. Make temporary repairs to prevent additional damage. It is your responsibility to make basic temporary repairs so that your home and belongings are not exposed to the elements and at risk of further damage. Reasonable expenses will be covered by your insurance, but it is important to keep receipts and not spend too much on repairs until after the adjuster has surveyed the damage.

5. Be organized. Good record keeping can make filing claims easier. It is important to make lists of damage, out-of-pocket expenses incurred, and the names and contact information of everyone you speak to during the claims process.

6. Don’t be the victim of a scam. It is unfortunate, but fraudulent service providers prey on disaster victims. Don’t be rushed into signing contracts. Instead, collect business cards, check references, and get written estimates for the proposed job. Never give a deposit to anyone you do not know. Remember, your insurance company is a great resource when it comes to finding reputable service providers such as roofers and contractors.

Source: http://www.iii.org/

Floods and flash floods happen all across the United States. Standard homeowners and renters insurance policies do not cover flood damage. Flood coverage, however, is available in the form of a separate policy from the National Flood Insurance Program. Flood insurance is available for renters as well as homeowners.

Hurricanes, winter storms, and snow melt are common and often overlooked causes of flooding. New land development can increase flood risk, especially if the construction changes natural runoff paths. You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program (NFIP). Over 5.5 million people currently hold flood insurance policies in more than 20,500 communities across the United States.

If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a federally-backed mortgage, your mortgage lender requires you to have flood insurance. In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire. Last year, about 25 percent of all claims paid by the NFIP were for policies in moderate-to-low risk communities. Don’t wait for a flood season warning on the evening news to buy a policy—there is a 30-day waiting period before the coverage takes effect.

Private flood insurance is available for those who need additional insurance protection, known as “excess coverage,” over and above the basic policy, or for people whose communities do not participate in the NFIP. Some insurers have introduced special policies for high-value properties. These policies may cover homes in non-coastal areas and/or provide enhancements to traditional flood coverage.

Source: www.floodsmart.gov

SUMMER 2010

2010-07-28T14:18:00.000-07:00

Many vacationers will be renting a car this summer, but often don’t start thinking about rental car insurance until they get to the counter. This can result in some costly mistakes. Faced with a number of choices, some renters either purchase all of the coverage, or they decline the insurance without knowing if they are covered by other policies. This can result in either wasting money by purchasing unnecessary coverage or having gaps in coverage.

Before renting a car, you should make two phone calls: one to your insurance agent or company representative, and another to the credit card company you will be using to pay for the rental car.

Rental car insurance offers four important coverages:

Loss Damage Waiver (LDW), also referred to as collision damage waiver, is not technically an insurance product—it relieves or “waives” renters of financial responsibility if a rental car is damaged or stolen.

Liability Protection provides financial protection from lawsuits in the event you are sued following an accident involving a rental car.

Personal Effects Coverage provides insurance protection for the theft of items in your car.

Personal Accident Insurance will cover you and your passengers for medical and ambulance bills incurred by injuries in an automobile accident.

Source: www.iii.org

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Although most auto insurance provides property, liability, and medical coverage, many states have different requirements. Here are typical coverages found in an auto policy:

Liability:
Pays for damages you cause to other people and their property. Higher limits than what you currently have may be available.

Medical Payments:
Provides protection for the insured, family members, and passengers in the insured’s auto for injuries sustained in an accident regardless of who was at fault. Also provides reasonable expenses for necessary medical and funeral services incurred. Higher limits than what you currently have may be available.

Personal Injury Protection:
Provides coverage for injury, death, loss of services, and loss of income suffered by you, your covered passengers, or covered family members (for those who reside in states with no-fault insurance laws).

Uninsured Motorist Coverage:
Automobile coverage designed to provide protection for the insured if involved in an accident where an uninsured motorist is at fault. Limits usually match liability coverage.

Underinsured Motorist Coverage:
Auto coverage that pays the difference between the insured’s actual damages for bodily injury and the amount of liability insurance carried by the at-fault driver. Limits usually match liability coverage.

Collision Coverage:
Protects you from loss caused by damage to your auto by collision with another object or vehicle or the overturn of the auto.

Comprehensive:
Pays for the losses to your auto OTHER than collision. Included is damage or loss to your auto caused by fire, theft, glass breakage, falling objects, and vandalism.

Towing and Labor:
This endorsement offers reimbursement for the cost of having a vehicle towed. Labor costs to repair a vehicle are not covered. Higher limits than what you currently have may be available.

Rental Reimbursement/Loss of Use:
Loss of use covers the daily cost to rent a vehicle while yours is out of commission due to covered loss.

Auto Loan/Lease Coverage:
Coverage may be extended for the difference between the unpaid amount due on the loan or lease of a new auto and the actual cash value at the time of loss.

Audio, Visual, and Data Electronic Equipment:
Tapes, records, discs, and other media can be included on the auto policy.

The coverages discussed herein are for illustrative purposes only. The terms and conditions of your specific policy may differ from those described. Please consult the provisions of your policy for the terms, conditions, and exclusions that apply to your coverage.

SPRING 2010

2010-04-30T17:19:00.000-07:00

Damage from earthquakes is not covered by a standard homeowners policy. Similar to flood insurance, earthquake insurance must be purchased separately.

Earthquake coverage can be added as an endorsement on your homeowner policy or purchased as a separate policy.

Many insurance companies have specific enrollment periods for earthquake coverage. If you choose not to add the coverage when you purchase a homeowners policy, you may need to wait until your policy renews to add the coverage.

If the insurance company has specific enrollment periods for earthquake coverage, you may receive an offer for the coverage with your renewal policy. This coverage is typically offered every other year.

Earthquakes can cause devastation any time of the year and without warning. Taking steps to secure the furnishings in your home may help prevent injuries and mitigate damages should an earthquake occur. Here are some steps you can take to protect your family and your home:

Secure bookcases and shelves to prevent them from toppling over and causing injury or damage.

Attach cabinets to the walls and floors to prevent them from falling over and to keep their contents safe.

Consider using shatter-resistant Teflon^® fluorescent lights or install plastic sleeves over the light tubes to keep glass from scattering if they break.

Securely anchor large appliances to the wall and brace your water heater.

Secure heavy equipment such as TV’s and computers to the furniture on which they are placed.

Use closed screw eyes instead of traditional picture hangers to secure pictures and other valuable artwork to the walls.

For more ideas, check out www.DisasterSafety.org.

How will earthquake coverage help?

If you have a typical home loan and deed of trust, you will remain responsible for the loan balance even if your home is damaged or destroyed by an earthquake. The deductible and amount of coverage available for earthquake damage vary by state.

Earthquake coverage can help towards the costs associated with earthquake damage, such as:

replacing the contents of your home

temporary accommodations

repairing or replacing your home

paying a mortgage, second mortgage, or line of credit on your home if your home is destroyed

WINTER 2010

2010-01-29T12:50:00.000-08:00

Four Golden Rules to Buying Auto Insurance

Simplify the insurance selection process and ensure you have adequate coverage with these tips:

      1. Consider higher limits of coverage than the state-required limits. If you choose the minimum coverage required by your state, you may not be fully covered in an accident. For example, if your property damage coverage is $15,000 and you cause $25,000 worth of damage, you’ll have to pay the remaining $10,000 out of your own wallet.

     2. Tell it like it is. Be completely up-front and honest about your driving history. If you fail to disclose past accidents, speeding tickets, or other moving violations, the insurance company will not be able to give you an accurate quote. As soon as the insurance company checks your driving record, they will adjust the price to reflect your violations.

     3. Pay attention to the total package. Consider price, coverage, convenience, and customer service. Decide what’s most important to you, and communicate this with your insurance agent so they can help you choose the company that is right for you.

    4. Don’t double up on coverage. Before you settle on a policy, consider any other auto coverage you may have so you don’t duplicate coverage. For example, if you are a member of AAA, your membership probably covers towing costs if you break-down. Therefore, there’s no need for a policy that includes roadside assistance coverage.

As your insurance agent, we are here to guide you in selecting your insurance coverage. Please call us today and we will help ensure you have the right coverage for your needs.

Protect Your Possessions with an

Electronic Home Inventory

Maintaining a thorough home inventory is a critical addition to your homeowners insurance policy. By documenting your possessions and updating the list on a regular basis, you can ensure you have enough coverage, settle claims faster, and substantiate losses for income tax purposes.

A traditional home inventory is a basic list of all belongings along with receipts that substantiate value. With digital cameras and camcorders, the process of creating a home inventory is simple. By electronically documenting your home inventory, you can account for items you may not have thought to include in a written list. Videotaped inventories are especially useful as they can be narrated to include important details of each item.

Keep copies of supportive records, including sales receipts, purchase contracts, and appraisals. Record the serial numbers for major appliances and electronic equipment, which are usually found on the back or bottom of these items.

Once you finish documenting your inventory, either print out the files or burn a CD. Keep a copy in a safety deposit box or have a friend store it. In case your home is severely damaged, or if you experience a hard-drive crash, it is critical to keep a second copy of your home inventory off-premises.

Finally, remember to update your home inventory annually to add newly acquired items and remove items you no longer own.

Check out www.knowyourstuff.org for free software you can use to create your own home inventory.

FALL 2009

2009-10-30T16:14:00.000-07:00

Whether you are planning a vacation or a short trip to visit relatives this holiday season, keep in mind that an empty house is a tempting target for a burglar. Follow these tips to keep your home safe:

Use sturdy locks on all doors and windows and secure before you leave. Repair any broken windows or locks.
Ask a neighbor or friend to periodically check on your home.
Don’t broadcast your plans on your answering machine or online (e.g. Facebook)
Put a temporary hold on newspaper delivery.
Use a simple plug-in timer to turn your lights on periodically.
Don’t leave valuables in plain sight.

SAFELY NAVIGATE WINTER DRIVING CONDITIONS

During the winter months, you may run into adverse driving conditions. Make sure to exercise additional care; for example, drive slowly and be aware of other drivers. If possible, avoid driving at all if the road is slippery or the weather is bad.

But what happens if you do get in an accident? Here are some key things you need to do:

Remain at the scene of the accident.
Take steps to prevent further accidents – park safely, turn on emergency flashers.
Call the police or ask someone to call for you.
Obtain the other driver’s name, insurance company name and phone number, the vehicle’s license plate number, and the operator’s license number (obtain this information from all parties involved).
Give the other driver your name, insurance company name and phone number, the vehicle’s license plate number, and your license number.
Discuss the specifics of the accident only with the police.
If you have a camera, take photos of the accident scene and vehicles if it is safe to do so.

Winterize Now
Prevent Cold-Weather Problems Later

Poorly winterized homes can be a source of both property and liability insurance claims. However, an investment of time and preparation now can save you money and hassle in the long run. The following are tips to help prepare your home and minimize the risk of a wintertime insurance claim.

Replace filters in all of your heating systems before turning them on for the season. Make sure your units have been professionally serviced, and replace the filters on a regular basis.
Replace batteries in both smoke and carbon monoxide alarms.
Check for and seal cracks and gaps around windows and doors. Seal around windows and walls where air-conditioning units are installed.
Check the insulation in attics, basements, and crawl spaces. Too much heat escaping can cause ice and snow to melt too fast to be carried away efficiently. If moisture seeps into the roofing, it can cause damage or collapse. Adequate insulation can also help prevent the inconvenience of frozen or burst pipes. If pipes are located in unfinished spaces, such as garages, wrap the pipes with heating tape.
During the winter, keep interiors at 65 degrees or more. Remember, the interior temperature of walls can be a lot colder than the air in the rooms, putting pipes at risk of freezing.
Check your driveway, sidewalks, and handrails to make sure they are in good repair - this important safety precaution may also limit your liability should an accident occur.
Make sure your snow blower and other snow removal equipment is in working order. Having cleared walkways will help ensure no one is seriously injured on your property by winter weather conditions.
Before the first freeze, remove debris from gutters so heavy winter rains and melting snow can flow freely and not damage your roof or walls. Consider installing gutter guards to keep gutters clear from additional debris.
Survey your landscaping. Trim trees with overhanging limbs that could block your walkways or endanger your home or vehicles during heavy snowfall and ice storms.

SUMMER 2009

2009-07-31T10:23:00.001-07:00

Scheduled Personal Property
Case Study: Computer Insurance You Really Need

When something happens to your laptop, will your homeowner’s insurance help pay for a new one? If you have a standard policy form, maybe not. The standard policy covers personal property of all types for specific causes of loss. This includes things like fire, lightning, explosion, windstorm, and theft. It does not list the other common causes of computer loss. If someone steals a laptop from a dorm room, the policy will provide coverage. If the student drops it and cracks the screen, there is no coverage.

For a relatively small cost, homeowners, renters, and students can insure their important but delicate belongings against thefts and accidents.

The same is true for other high-priced personal property. The relatively small cost of Scheduled Personal Property coverage for your jewelry, antiques, collections, fine art, and so on is well worth the peace of mind. Call us to see if you can benefit from adding this coverage for your valuable belongings.

Insuring Your Student Away at College

Sending a child off to college is always an exciting and anxious time for parents. They worry about their child’s safety, roommates, and independent living. Between making sure that textbooks and supplies have been purchased, tuition bills paid, and course registrations completed, it’s natural that parents won’t think about insurance considerations. Here are a few items to think about:

1. Your student's age and status
A homeowner’s insurance policy may not cover a part-time student or one over a certain age. For example, policies often state that a person has coverage if he or she is a full-time student and was a resident of the policyholder’s household before moving out to attend school. They also limit coverage to students unless they are either under the age of 24 and related to the policyholder or in the policyholder’s care and under the age of 21.

2. Driving at school
If the student brings a car to college and the parents’ auto insurance policy lists it, the student will have coverage for its use. If students buy their own policy, make sure liability coverage is purchased in an amount at least equal to what the parents have. Purchasing only the minimum limits required by state law could mean owing a large amount out of pocket if an accident occurs. Coverage is typically in place on the parent’s policy if a student occasionally borrows someone else’s car.

3. Personal belongings
A typical policy covers the student’s belongings while at college, but limits coverage to 10% of the insurance amount covering the parents’ personal property. For example, if the policy shows a limit of $100,000 for coverage of personal property, it will cover the student’s property up to a maximum of $10,000. If this amount of insurance is too low, you’ll want to consider higher limits.

4. Laptop
Many colleges require students to own a laptop computer. As mentioned previously, make sure to schedule your student’s laptop to cover against dropping the computer, spilling a beverage on it, or incurring damage to its circuitry from a power surge.

5. Liability
The homeowner’s policy will typically cover students’ liability for any injuries or damages they may cause to others while at school.

SPRING 2009

2009-04-27T06:05:00.000-07:00

Apples to Oranges: Not All Insurance Policies are the Same

When it comes to auto insurance policies, there are countless options on the market. However, not all policies are created equal. While you may be tempted to buy the insurance policy with the lowest price tag, this might end up costing you in the long-run. Here are a few tips for choosing the best policy:

• Compare limits - make sure yours are adequate
• Protect against gaps in coverage (e.g. umbrella policy)
• Customize your policy (limits, discounts)
• Read the fine print
• Work with a professional

We are here to make sure your auto policy does its job: keeps you protected in case of an accident. As independent agents, we can do the shopping for you, apply applicable discounts, and - most importantly - make sure you have the right policy for your situation.

Don't Float Your Boat
Until You Know it's Protected

We all love a day at the lake. But boating carries risk, too. According to the U.S. Coast Guard, there were 5,191 boating accidents reported in 2007, and more than 80 percent of all boating accidents go unreported. Given this level of risk for accidents, it is critical that boat owners are properly covered. However, 29 percent of U.S. boat owners don’t own a separate watercraft policy. This often happens because boat owners assume that their craft is covered by their personal auto policy or their homeowner’s policy; unfortunately, this is not the case.

Is there coverage on my homeowners policy?
Some homeowner’s policies offer coverage for physical damage for boats, but only for smaller vessels. The typical homeowner’s policy contains a special property limit of $1,500 on watercraft, which doesn’t begin to cover the value of most boats. In addition, the covered perils specific to the boat are greatly restricted. There is liability coverage available for boats under most homeowner’s policies, but once again, it only applies to smaller watercraft.

What about my auto policy?
The standard auto policy covers the boat trailer for liability with the option to add coverage for physical damage. The boat itself, however, is not covered for liability or damage.

What kind of situations would require a specialized boat owners policy?*

1. Your cruiser collides with a speedboat whose operator fails to yield the right of way, causing extensive damage to your boat. The owner of the speedboat does not have any insurance coverage.

2. An expensive bass boat you just purchased is stolen from your home.

3. Your 27-foot-long sailboat is damaged by a major hailstorm while docked at the marina.

4. Your sport fishing boat is struck by lightning, incapacitating its electrical system.

5. Your son’s friend is water skiing behind your boat and he falls into the lake, injuring himself due to the excessive speed of the boat.

6. You negligently cause another boat to overturn to avoid a collision.

7. Your outboard motor explodes, seriously injuring your next-door neighbor.

*Scenarios provided by the Institutional Risk Management Institute (IRMI).

WINTER 2009

2009-01-01T10:39:00.000-08:00

Consider Four Key Areas When Buying Homeowners Insurance

You buy homeowners insurance to protect your biggest asset, so it’s important to purchase enough coverage to suit your needs. By looking at a few key factors, you could end up saving yourself a lot of money and heartache should you ever have to make a major homeowners insurance claim. Be smart and ask yourself the following four questions when considering how much coverage to purchase.

How much will it cost to rebuild?
How much will it cost to replace my personal possessions?
Will I have any additional living expenses as a result of an insured disaster that damages my home?
How much coverage do I have in the event I am named in a lawsuit for bodily injury or property damage caused to others?

Four Reasons You Might Want to Get Under an Umbrella

Umbrella policies provide additional insurance that takes over when a claim uses up all of the homeowners or auto insurance. They can even cover some losses that home and auto insurance do not cover. They provide insurance amounts as low as $1,000,000 and may provide $5,000,000 or more. And they are not just for wealthy people. Here are four situations where umbrella policies are vital:

1. Auto Insurance
A driver loses control on icy pavement and strikes another car. The other driver suffers serious injuries tallying up to $900,000. The at-fault driver has an auto insurance policy that covers $250,000 for injuries to any one person. If he has an umbrella with a $1,000,000 limit, it will pay the remaining $650,000.

2. Homeowners insurance
A homeowner has insurance that covers her liability for bodily injuries to others up to $300,000 per accident. Three neighbor children drown in her swimming pool. The neighbor’s estate sues her for $1,500,000. Her homeowner’s insurance will pay $300,000; but if she doesn’t have an umbrella, she is responsible for the remaining $1,200,000.

3. Boats
A man has a boat insurance policy that covers his liability for injuries to others up to $300,000. He loans his boat to a friend for the weekend. His friend is wreckless and plows into another boat. The survivors and the estates of the deceased sue the driver and the boat owner. The court finds the owner liable for $1,000,000 of the judgment. His boat policy pays $300,000 but he is responsible for $700,000 because he didn’t have an umbrella policy.

4. Personal injury
A woman loudly repeats a rumor she heard about her neighbor. The neighbor sues her for defamation of character and wins $500,000. The woman’s homeowners insurance does not cover defamation, but her $1,000,000 umbrella does. After she pays a $250 deductible, her umbrella pays the rest.