fbpx

Using Airbags Without Seat Belts Increases Risk of Spinal Cord Injury

The National Safety Council reports that significant cervical spine injuries can result from car crashes occurring at speeds as low as 5 miles an hour and that result in little or no damage to the car itself. According to a recent study conducted by the University of Pittsburgh, the risk of injury increases when airbags are deployed during a crash and the driver and passengers aren’t wearing seat belts.

The cervical spine is the seven vertebrae of the spinal cord that comprise the neck. It can be damaged when it is compressed against the shoulders during a collision or when the head is violently jerked either backwards or forwards, causing injuries to the muscles and ligaments of the neck. The resulting neck sprain is commonly referred to as whiplash.

The research team, lead by Dr. William F. Donaldson III, used data gathered from a Pennsylvania trauma database to identify crashes resulting in spinal cord injuries from 1990 to 2002. They examined approximately 12,700 spinal injury patient records and of these, 5,500 were identified as either drivers or passengers who experienced fractures of the cervical spine.

After studying the cervical spine injury records, researchers found that drivers who were not wearing a seatbelt had a 54 percent rate of cervical spine fractures. However, drivers who used both an airbag and seatbelt had only a 42 percent rate of injury. After adjusting for other factors, the relative risk of cervical spine fracture was 70 percent higher for drivers using an airbag alone compared to drivers who used an airbag and seat belt.

The risk of cervical fracture was approximately seven times higher for passengers who used only an airbag. For both drivers and passengers, men were more likely than women to be injured when using an airbag alone.

Another important discovery the researchers made was that drivers and passengers who used an airbag alone were more severely injured than those who used both. They also spent more time in the intensive care unit and more total time in the hospital.

The results of the study indicate that drivers and passengers who use airbags without seatbelts have a higher rate of cervical spine fractures and have more severe injuries, including injuries to the chest, abdomen, and head. Dr. Donaldson and his team concluded that using a seatbelt with an airbag and maintaining at least 10 inches between the steering column and the sternum may decrease the severity of injuries in general, in addition to reducing the instances of airbag induced cervical spine injuries.

When Your Adult Kids Move Back Home, Double-Check the Insurance

The slow economy of the past few years has exacerbated a trend that was already underway, that of adult children moving back in with their parents. A 2007 study found that one-third of people aged 18 to 34 were living in their parents’ homes. In addition to the issues this trend raises in households with regard to cost-sharing, work-sharing and personal boundaries, insurance issues arise. Home and auto insurance forms are very clear that minor children have coverage under their parents’ policies. This becomes less clear the older the children get, and it becomes ambiguous when they return home after living on their own for some period of time. Parents and their adult children may be risking thousands of dollars in financial loss if they do not handle the insurance correctly.

The standard homeowner’s policy provides coverage for the person named on the policy’s information page, that person’s spouse if a resident of the household, residents of the household who are that person’s relatives, and a full-time student under age 24 who is a relative and who resided in the household prior to moving out for school. Therefore, the policy covers parents and minor children, and it covers college students while they’re away from home. However, it is questionable whether an adult child moving back in with her parents is a resident of the household. Even courts have had trouble setting a precise definition of residency. For example, suppose a woman and her son relocate to her hometown following a divorce and they move in with her parents while she looks for an apartment. Is she a resident of her parents’ household while she’s living with them? Does it depend on how hard she’s looking for a new place? What if she is looking but falls ill and is unable to actively search for a period of weeks? At what point does she become a resident and not merely a guest? There is no hard and fast rule. In situations like these, the best way to eliminate any doubts about coverage may be for her to buy a renter’s insurance policy.

Auto liability insurance, which insures against a person’s legal responsibility for injury or damage to others, has a few other wrinkles. The standard policy covers the person named on the information page, the resident spouse, and any family member for the use of any auto. The policy defines “family member” as a person related to the named insured person by blood, marriage or adoption and who is a resident of the household. Therefore, the woman in the previous example has coverage for the use of any vehicle if she is a resident of her parents’ household (other policy provisions eliminate coverage for certain vehicles.) However, even if she is not a resident, she has some coverage: The insurance covers any person while using a vehicle listed on the policy if she is using the vehicle with a reasonable belief that she has permission. If she is temporarily living with her parents and her father loans her his car to run to the store, she has coverage. However, she does not have coverage while driving a vehicle she owns if her father’s policy does not list it. Again, the solution here is for her to carry her own auto insurance; this makes moot the question of whether she is a resident of her parents’ household.

Insurance companies have designed policies to easily fit households with parents and minor children, but they did not have returning adult children in mind. Because these situations can be complex, it may be best to consult with a professional insurance agent to determine the right approach. The wrong decision can result in a nasty surprise when a claim occurs.

Protect Your Child from the Dangers of Electrical Outlets

When bringing a child into the home, parents take many safety precautions. Unfortunately, those precautions do not always ensure that the child will avoid harm. Electrocution may not happen often, but its effects can be deadly.  Household wiring and large and small appliances cause the majority of electrocutions in the U.S each year. In 1997 (which is the most current data available), the CPSC found that 86 percent of reported injuries involved children 1 to 4 years old. The most common foreign objects stuck into electrical outlets were keys and hairpins. There are several options you can implement to help protect your children against this preventable safety hazard.

Most parents know to install plastic outlet protectors for all the outlets within their child’s reach. But do they really protect as well as we assume? A 1997 Temple University study tested the effectiveness of the different types of plastic outlet protectors with 37 children ages 2 to 4 years. For the round, flat face style protector with two prongs, 47% of the 4-year-olds and 31 % of the 2-year-olds were able to remove this protector. Another oval style had a 3/16″ thick oval face with tapered sides. Again, 47% of the 4-year-olds but only 18% of the 2-year-olds could remove this type of protector. Yet another style with a 1/16″ thick face and lacking tapered sides could be removed by all of the 2- and 4-year-olds!

However, you do have other choices. Some manufacturers make a child tamper-resistant outlet, rather than a cover. They resemble regular outlets, but behind the face of the outlet are plastic shutters. The shutters remain closed until something is inserted into both vertical outlet holes at the same time, at which point the shutters open and the plug can be inserted. This design is based upon the premise that most children will not stick two objects in the same two vertical outlet holes at the same time. This type of outlet costs between $6.00 to $8.00 each compared to a typical electrical outlet receptacle that usually costs no more than $5.00 a piece.

Outlet face covers are another option for you to consider. These covers have faces that swivel or slide over the outlet holes, requiring you to push the cover away while inserting the plug for a secure fit. These covers range from $6.00 to $10.00 each. Both the tamper-resistant outlet and the face covers should be available at your local home improvement or electrical supply store. Whatever type of protection you choose, ensure that you take some of these simple steps to protect your children from this very real safety hazard.

Why Does My Auto Insurance Cost so Much?

It’s hard to have a conversation about auto insurance without at least one person complaining that their rates are too high. What most people don’t understand is that their rate is not some magical amount they are required to pay, but rather a precise calculation that takes into account personal and lifestyle attributes.

One of the biggest factors that determine insurance rates is the type and value of the vehicle being insured. Smaller, more conservative vehicles are much cheaper to insure when compared to convertibles and luxury SUVs. This is because sportier vehicles carry higher sticker prices and are more likely to be stolen.

Where the car is parked has a lot to do with insurance rates, as well. Insurance companies study the amount of vandalisms, thefts, and accidents in each neighborhood and adjust their premiums accordingly. In most cases, car owners who reside in more populated areas pay higher rates than those who live in rural areas.

A third factor that affects the cost of insurance is the amount of driving you do every day. Drivers with long commutes or who put a consistently high amount of miles on their car each year are more likely to be involved in an auto accident, so companies charge these drivers a higher rate. On the other hand, insurance companies discount the rates of drivers who only use their vehicle recreationally or on the weekends.

Personal information, such as your age, gender, driving record and marital status, has an effect on what premium you are charged. Younger drivers pay more than experienced ones, especially drivers under the age of 25, and statistically speaking, women are safer drivers than men, so they pay less for insurance. Married individuals are also less likely to be involved in a car accident, so their rates are lower than single drivers. Regardless of everything else, having an accident and citation-free driving record will keep rates low and affordable.

Fortunately, drivers who are unhappy with their current insurance costs can do something about it. First, you can begin by asking your provider what kinds of discounts are offered. There may be some new discounts that can be applied to reduce your rate, like going a certain amount of time without filing a claim, owning your home, etc. If not, then shop around to see if a comparable policy is cheaper elsewhere. Changing from one insurance company to another is usually easy and hassle-free.

When out shopping for a new car, review consumer reports for the vehicle’s reliability and find out where it ranks on the list of frequently stolen vehicles. Cars that are expected to maintain a good service record and utilize anti-theft features have a lower overall cost of ownership and are cheaper to insure.

Also, consider taking public transportation or carpooling with co-workers to get to and from work. This will keep miles off of your vehicle and take dollars off of your insurance premium.

Market Value – How Much is My Home Actually Worth?

Homeowners always seem to have a ballpark estimate of their home’s worth, but when it comes down to the real value, they can be a little off target. People tend to view their home through rose-colored glasses as they calculate its value, remembering all of the tender moments that happened over the years. The open market, however, removes sentimental value from the formula and only assesses value based on features and characteristics.

In order to talk about how houses get rated, you must first understand what the term “market value” means. To real estate agents, it refers to the price a house can be bought and sold for within a practical time frame. This would be at a price that is considered fair by both the seller and buyer, and within a time frame ranging up to three months.

If you are interested in figuring out your home’s market value, you must concentrate on the types of things buyers look for when browsing around. Remember that the housing market can change in the blink of an eye and that the value of houses can vary drastically from one neighborhood to another. To establish a good starting point, take a look at the asking price of similar homes for sale in your area.

What to look for when doing a market value analysis of your home:

Location, Location, Location – What school district is the home located in? How desirable is the neighborhood? Is it near local parks, shopping centers, or public transportation?

Design and Overall Appeal – Is the layout of the home aesthetically pleasing? Does the home look nice or like a fixer-upper? Is there landscaping?

Quality of Construction – Does the house appear to be in good condition? Are there visible and obvious repairs?

Maintenance – Has the wiring and plumbing been maintained or updated? Does the home need new shingles or siding? Is there peeling or faded paint on the back porch?

Home Improvements – Is the back patio enclosed or has the bathroom recently been remodeled?

Distinguishing Features – Is there an in-ground pool for swimming or is the basement finished? Is there room in the backyard to plant a garden?

Another way real estate agents measure market value is by looking at the home’s price per square foot. This figure is calculated by taking the amount of livable square feet in the home and dividing it into the home’s most current appraised value, which can usually be found in your property tax paperwork. Look in the newspaper to see what similar houses in your neighborhood are selling for and determine their price per square foot. To prime your house to sell, you will want to price your house at a comparable rate.

Finally, you must take into consideration the current condition of the housing market. Thousands of dollars can be gained or lost depending on real estate trends. Changes in interest rates, the local economy, and even national issues have an effect each home’s market value. A booming economy improves interest rates and leads to higher home values, and on the other hand, in times of recession, home values sink below what owners think is fair. By completing a market value assessment on your home each year, you will have a better idea whether or not your home is properly insured. Be proactive, as an undersized policy will not offer much protection if something terrible would happen.

Identity Thieves: They Play, You Pay

It’s hard to tell exactly how they do it. Maybe you threw away some papers with your account number on them, somebody watched you put in your PIN number, or maybe you fell victim to an email phishing scam. Identity thieves don’t care where they get your information, they are just out take your money and ruin your credit in the process. Because there are so many different ways for identity theft to occur, it is important to know how to protect yourself and your assets.

Identity thieves are criminals who prey on other people’s personal information, for instance their social security number, credit card information, bank account information, and online account log-in information. Thieves even want to know your pet’s name or mother’s maiden name to help them steal passwords. Using this critical information, thieves are able to make unauthorized transactions and transfer funds behind your back. Before you ever find out, an identity thief could be enjoying a Caribbean vacation at your expense. While these damages can be repaired, it will cost you plenty of headaches and potentially thousands of dollars.

The threat of identity theft is ever present, but there are some things you can do to keep your credit protected. The first thing you should do is prevent yourself from revealing personal information over the phone and on the Internet. If you do not understand why a business would need your social security number or similar information, then do not give it out. Junk mail and credit card offers are also potential threats and should always go through a paper shredder before being thrown out.

Bank receipts and discarded deposit slips are a goldmine for thieves and should never get tossed in a public trash bin. When ordering new checks, request to have your first initial printed in the corner instead of your full name, to make it harder for forgeries to occur. Checks should never be printed with your social security number on them.

In your free time, take a trip to the library or use your office copier to make paper copies of everything in your wallet. Keep these duplicates in a strongbox or other safe spot at home so you can reference your driver’s license and credit card numbers if you ever lose your wallet or have it stolen. Make sure to photocopy the backs of your credit cards too, which contain the customer service phone numbers to call to deactivate the cards. Having these numbers handy will get your cards suspended quickly and cut down the amount of time the thief can access your accounts.

If you discover or suspect that your identity has been compromised, call the local authorities after you have deactivated your cards. Filing a police report legitimizes your claim and opens an investigation to find and stop the thief. Also, make a report with the fraud department at the Federal Trade Commission and the Social Security Administration. To stop further attacks to your credit, alert the three credit reporting bureaus to block the use of your social security number and name on any new credit applications.

Insurance companies offer identity theft policies to individuals who want added protection. These policies cover the costs of unauthorized purchases and restoring your credit. Sometimes identity theft protection is included with homeowner’s insurance or it can be added as an endorsement to a renter’s or homeowner’s policy.

Nearly 100,000 people each year have their identity stolen, according to Federal Trade Commission statistics. Just one bank slip or piece of mail can lead to having your credit destroyed by an identity crook. By making only a few changes to your lifestyle, you can keep your identity from being targeted by crafty thieves.

Totaled Vehicles and Insurance Payouts – What You Need to Know

Car accidents take their toll physically, mentally, and financially on those involved. Take the time now to learn about how insurance companies determine the value of your vehicle and you will have one less thing to worry about if your vehicle is ever “totaled” in an accident.

According to the car insurance industry, the term “totaled” doesn’t have as much to do with damage as you may think. When a vehicle experiences damage from an auto accident, the insurance company is more interested in the cost to repair the vehicle, rather than the overall amount of damage to the car. If the repair costs exceed what the insurance company considers the vehicle to be worth, the insurance company deems the vehicle to be “totaled” and the policyholder is paid the value of the vehicle. While most car owners are familiar will value guides like Kelly Blue Book and the NADA Official Used Car Guide, insurance companies generally refer to their own private databases when determining a vehicle’s value.

After making an assessment of your vehicle’s damages, the insurance company will make an offer which they feel is fair. The offer is meant to provide you the means to purchase a vehicle of the same style and condition of the one that was “totaled.” Insurance companies call this “making whole.” For example if you were driving a 5-year old pickup truck with 65,000 miles on it before the accident, your offer should provide you the money to purchase a similar truck with similar miles on it. As an informed policyholder, it is on your shoulders to make certain that your offer indeed makes your situation whole, putting you back behind the wheel of a comparable vehicle.

At times, insurance companies and policyholders cannot agree on a fair payout and drivers must turn to outside sources to help their case. Car owners can hire an independent appraisal service or take their case before an arbitrator. If considering having your vehicle appraised, factor the cost of the appraisal service into the equation and see if it is still a cost effective option. If you seek arbitration, keep in mind that there are binding and non-binding cases when arbitrating, and non-binding arbitration decisions can be appealed in court if you still consider the offer to be unfair.

In most cases, though, offers are easily agreed upon and your vehicle heads off to its final resting place – the salvage yard. Your vehicle will be dissected and sold for parts and scrap, with the insurance company keeping the profits. If you don’t want your car to meet this demise, you may opt to keep your damaged vehicle and pay for its repairs out-of-pocket, but this is not always the most economically wise decision.

Car owners who decide to keep their vehicle after it has been “totaled” receive a smaller payout from their insurance company. The offer is reduced by the amount of your deductible and the estimated amount of profits that would have been made from the salvage process. Owners who choose to keep their damaged cars run the risk of not receiving an offer large enough to get the vehicle roadworthy again. Re-insuring the vehicle will also be difficult in the future, as most insurance companies will only extend liability coverage to previously “totaled” vehicles, regarding they pass an inspection by the Department of Motor Vehicles.

Whether you choose to make the repairs yourself or have your vehicle salvaged, it is crucial that you understand how auto insurance companies operate before you are ever involved in an accident. By knowing this information, you will be prepared to get the most out of your vehicle, even if it is “totaled.”

The Data is in – Distracted Driving is Dangerous!

In our high-tech world, there are more and more instances of driver distractions that contribute to car accidents, some of them fatal.   According to the National Highway Traffic Safety Administration, in 2008, there were an estimated 6,000 deaths and 500,000 injuries attributable to distracted driving. If anything, the actual number is likely higher because distractions can be hard to quantify and the true number of accidents caused by driver distractions is difficult to define.

Our changing driving habits and increased dependence on technology have steadily raised the number of potentially dangerous distractions. Consider the attention-diverters in your own car – radio and climate controls, cell phones and navigation systems. Matters are complicated further when there is more than one distraction, such as eating while trying to discipline a child in the backseat.

Furthermore, the National Safety Council released a white paper in early 2010, discussing the effects of cell phone usage while driving, and the news is not good.  The white paper pulled information from at least 30 different scientific studies, and the results showed that cell phones have quickly become one of the leading driver distractions, even when drivers opted for “hands-free” devices.  The NSC reveals that cell-phone usage causes the driver to multi-task and weakens the brain’s ability to capture driving cues.  The overwhelming result is impaired driving performance.  

Because of the grim data, many states have placed restrictions on drivers’ use of cell phones. The number of wireless phone users in the U.S. has grown from five million in 1990 to more than 200 million today, and surveys show that 85 percent of these people use cell phones when behind the wheel. In fact, calls from moving vehicles account for half of all cellular air time use.

So what can you do to avoid falling into this trap?  Below are some important anti-distraction tips:

* Keep your eyes on the road. Consider the possibility of turning your cell phone off while behind the wheel.

* NEVER text while driving.

* Keep your hands on the wheel by programming your favorite radio stations, and arranging tapes and CDs in an easily accessible spot. Don’t attempt to retrieve objects that have fallen on the floor while driving.

* Teach your children the importance of good behavior in the car.

* Avoid eating and drinking while driving. If you must, choose easy-to-handle foods and keep beverages in a nearby cup-holder.

* Designate the front-seat passenger to serve as navigator rather than fumbling with maps and navigation systems yourself.

* Take a break if you find yourself lost in thought.

* Avoid stressful or confrontational conversation while driving.

Check Your Homeowner’s Policy for Coverage on Your Special Vehicles

Millions of Americans own special vehicles for recreation, personal assistance, property maintenance, and for other purposes. Residents and visitors in snow belt regions use snowmobiles. Golf carts cruise around golf courses and around many residential communities. Individuals with limited mobility use motorized wheelchairs and scooters. All-terrain vehicles and dune buggies are always popular. These vehicles can be expensive to purchase and can become involved in accidents. Individuals who own and use them need insurance protection when something goes wrong. Fortunately, the standard homeowner’s insurance policy provides some of the coverage users need.

The homeowner’s policy does not cover legal liability resulting from the use of motor vehicles that are registered for use on public roads or property or that the law requires to be registered for use at the place where the accident took place. However, it does provide some coverage for vehicles designed to be used off public roads if either the user does not own them or if the accident occurs on an “insured location,” as the policy defines that term. The term includes the place where the person named on the policy (the named insured) resides, other residences he acquires during the policy term, premises he doesn’t own and where he temporarily resides, vacant land he owns or rents, land he owns or rents where he is building a residence, and other premises he occasionally rents for non-business use.

Therefore, the homeowner’s policy will cover him for liability resulting from the use of:

* A motorized wheelchair at his home and surrounding property

* A dune buggy at a beach house he’s renting for a week

* A snowmobile he owns on vacant land he owns

* An ATV he rents while he uses it on someone else’s property.

It will not cover him if he takes a vehicle he owns off an insured location.

The policy contains special provisions regarding golf carts. It covers the person’s liability for use of a golf cart he owns that is designed to carry at most four people and is not designed to go faster than 25 M.P.H. on level ground. Coverage applies only if the accident occurs at a golfing facility or at a private residential community where golf carts can legally travel on its public roads, subject to the authority of a property owner’s association, and where an insured person has a residence. Therefore, an individual has coverage if he strikes a person with his golf cart while driving from one hole to another or if he lives in a gated community and damages a neighbor’s deck with his golf cart. He does not have coverage if he takes out a mailbox while driving a golf cart down a public road.

The policy covers certain vehicles if the insured person uses them solely to service his premises. For example, he would have coverage for a riding lawn mower that he uses on his own property, but he will not have coverage for it if he also uses it to cut a neighbor’s grass. The policy covers vehicles designed to assist the handicapped, but only while they are being used to assist a handicapped person or while they are parked on an insured location. A healthy 15 year-old who takes a handicapped person’s scooter for a joy ride does not have coverage.

Because coverage for these vehicles is so situation-dependent, people who own them should discuss the best way to insure them with a professional insurance agent. In some cases, policy changes may be available that will improve the coverage for an additional premium. All motorized vehicles carry a risk of accidents, so it is important to have the right insurance protection in place.

What You Need to Know about Carbon Monoxide Poisoning

The changing of the seasons usually brings along a laundry list of chores to most homeowners, in addition to some chilly weather. One task that should be at the top of the list is making sure your home’s carbon monoxide (CO) detector is working properly.

The presence of carbon monoxide gas is almost impossible to detect without some sort of device. The gas is odorless, colorless, and invisible, and can weave its way throughout your home much easier in the winter months. CO gases are created when heating elements that use natural gas, propane, wood, or oil do not completely burn off their fuels. Breathing in these fumes poisons the body and can be deadly. The effects may appear mild at first, as the individual begins to feel dizzy and nauseous, but can quickly turn to exertion and loss of consciousness.

Fortunately, carbon monoxide poisoning is preventable by performing routine safety checks around the house, and by installing and maintaining carbon monoxide detectors within the home. Proper maintenance of the home’s cooking and heating sources is the best place to start, but also consider safeguarding the house from the exhaust fumes of generators and vehicles. Recent statistics from the U.S. National Safety Council show that the two leading causes of accidental death from gases or vapors come from carbon monoxide given off by running vehicles and cooking and heating equipment.

The Center for Disease Control and the National Fire Protection Agency agree that having carbon monoxide detectors in the home is a family’s best line of defense against poisoning. Follow these tips to help protect your home from this deadly gas:

• Only use CO detectors that have been approved by a qualified, independent testing laboratory.

• The sensors in CO devices do not last forever. Abide by the manufacturer’s suggested replacement interval.

• Battery-powered detectors should receive new batteries once a year, unless the directions give a different time frame.

• Choose a centralized location outside of the family’s sleeping area to install the detector, making sure that its alarm can clearly be heard in each bedroom.

• List the phone numbers of the local fire and rescue services with your other emergency contacts.

• Perform a monthly test on all carbon monoxide detectors to make sure they are powered and working.

In the event that your detector’s alarm sounds, immediately evacuate your home, leaving doors open and turning off cooking and heating equipment, if possible. Alert the fire department and seek appropriate medical attention if anyone shows symptoms of CO poisoning. After the carbon monoxide levels return to normal, have your home’s equipment inspected for leaks and areas of weakness by a qualified technician.

Remember, carbon monoxide poisoning is serious and deadly, and its symptoms should never be taken lightly. By following the tips mentioned above, you can help protect yourself and your family from the “silent killer” during the wintertime and throughout the year.

Three Strategies for Lowering Auto Insurance for Your Teen

Teenagers are expensive. Parents pay for their cell phones, sports activities, video games, and when a teen starts driving, parents pay their car insurance. Car insurance is very expensive for teenagers due to their lack of experience on the road. Statistics show that teenagers are involved in a higher number of accidents with fatal or critical injuries than more experienced older drivers. Here are a few ways you may be able to decrease the cost of auto insurance for teen drivers.

  • Check for a good student discount. In the eyes of an insurance company, teenagers who do well in school appear more responsible. Keep in mind that a good student doesn’t mean an honor student. Each insurance company has its own definition of a good student. Your teen may still qualify even if he isn’t at the top of his class. You can also enroll your teen in a driver’s education course, even if it is not mandatory in your state. Find out from your insurance company if a driver’s education course will affect the insurance premiums.
  • Choose an older model car for your teenager. Teens are naturally attracted to shiny new sports cars, but the insurance costs on sports cars are astronomical. The insurance cost is tied to the horsepower rating of the car as well as the theft rate. Older cars also have a lower book value which in turn reduces the insurance premium.
  • Consider raising your deductible. A higher deductible means lower monthly premiums. You can always save the difference in a special account in case you need to draw on it to pay the deductible later in case of an accident or fender bender.

In summary, always be proactive when adding a new driver to your existing insurance policy. Ask questions and do your own research. Discounts are out there if you know where to look.

Paying Too Much for Auto Insurance?

To paraphrase President Barack Obama, if you are still feeling the effects of the economic recession, then the recession is not over for you. And chances are good that you may be among those who are still trying to pinch every penny and save money wherever and whenever they can. But have you thought about saving on your car insurance? Car insurance premiums represent a significant chunk of your income each year, so it only makes sense that you should make sure that you are not paying too much for necessary coverage. If you are not getting some of these car insurance discounts, then you are likely paying more than you should:

Safe driver who obeys traffic laws? Discount! The number one determining factor when your car insurance premiums are being calculated is your driving history and the driving history of other drivers on your policy. In fact, many insurers appreciate a good driver that they are willing to knock ten percent off the cost of your insurance for having a clean driving record. Now that’s significant!

Are you an older driver? Discount! Drivers over fifty are often eligible for many discounts on their car insurance. More and more companies are rewarding older drivers for their experience behind the wheel.

Have you taken a defensive driving course? Discount! Defensive driving courses can help you to become a better, safer driver, and your car insurance company knows this. If you can provide proof of taking a qualified defensive driving course, you can score additional savings.

Is your teen driver on the honor roll at her school? Discount! Students who make good grades may be eligible for a discount, as can those students who take a driver’s education course. It pays to be smart!

Is your car equipped with special features? Discount! Airbags, daytime running lights, anti-lock brakes and anti-theft devices are just some of the equipment that might qualify you for savings.

Compare Auto Insurance Rates and Save Even More

Other than qualifying for discounts on your car insurance, you can also reduce the cost of your car insurance by comparing rates with top companies. The quickest and most efficient way to compare rates is to contact a professional insurance agent. Many drivers find that they are able to save thirty percent or more off the cost of car insurance if it’s been a while since their last review.

Consider Cost of Car Insurance when Shopping for a New Ride

Most consumers will usually put forth a great deal of effort and time into searching out the best price for their new car. After all, the majority of America will have a budget for any large ticket purchase. One common mistake that consumers make when budgeting for a new car is only comparing what they can afford with the sticker price or loan payment for the car.

If cost is an issue, especially if choosing a car on the highest end of one’s budget, then it’s vital to factor in how much insurance will cost on the new car. It’s important to remember that car insurance prices will vary based on several car factors: sticker price, safety features, cost of repair, vehicle specific features, and high vs. low profile of vehicle.

Sticker Price

The greater the sticker price of a new or used car is, the more expensive it will be for an insurance company to replace it in the event of an accident. Therefore, the more expensive a car is, the more expensive the insurance will be for it. The added cost of insurance must be factored in to know if a car is truly affordable.

Safety Features

Safety features can have a big impact on car insurance. Features such as anti-lock brakes, airbags, automatic seatbelts, traction control, and airbags are statically proven to greatly reduce the number of accidents and /or injuries that occur while driving a car. The overall safety, class safety rating, and “crashworthiness” of a vehicle is also a factor. Certain states mandate that a discount be given for vehicles with certain safety features. So, be sure and check the safety rating for the car and applicable state law. Five stars indicate the highest safety rating and one star the lowest. 

Repair Cost

The cost to repair the car is another factor that will influence insurance cost. The more expensive a car is, the more expensive the parts will be in the event it ever needs a replaced or repaired part. Then, there are certain brands of cars that usually require a dealership or specialty mechanic for even the simplest repair. These cars usually require brand-specific tools and diagnostic equipment. All of this will result in higher insurance rates.

Car Specific Features

There are certain car features that will impact insurance cost. Hard top vs. soft top, number of doors, and size of engine would be feature examples. As a general rule, domestic cars and minivans are some of the less expensive types of vehicles to insure.

Profile

Some cars are easier to steal and more valuable to car thieves than others. These “high profile” cars are considered magnets for auto theft, and therefore more expensive to insure. Crime databases and local insurance agents can apprise buyers of what cars are considered high profile for their area.

All of the above influences on car insurance can dramatically increase the bottom line cost of acquiring a new car, as they can alter car insurance from a few dollars to several hundred dollars. It’s vital to seek an insurance estimate before deciding if a car is a good deal.

Check Your Home’s Fire Extinguishers

According to a fire loss study done by the National Fire Protection Association, house fires accounted for 75% of all structural fires in the United States. There’s about 400,000 residential property fires in the U.S. each year, and these residential fires account for over 3,700 human fatalities each year. Even when all other natural disasters are combined, fires still typically claim more American lives per year.

Considering the cost, frequency, and loss of life related to residential fires, it’s important for homeowners to have loss control measures in place. A fire extinguisher may seem like a simple item, but when properly selected, placed, and maintained, a fire extinguisher can be a powerful tool to prevent widespread fire loss. The best thing is that a fire extinguisher is a relatively cheap investment, as prices start at around $20.00.

It’s important to become familiar with the different classes of fire extinguishers. There are five classes, with each class based on what type of fire the extinguisher is capable of extinguishing. The five extinguisher classes are marked with a class specific color, geometric symbol, and/or picture.

Class A Fire Extinguisher

Color – green

Geometric symbol – triangle

Picture – burning garbage can and woodpile

This class of fire extinguisher is intended to be used on ordinary solid combustibles. These types of fires might involve cloth, wood, rubber, paper, or certain types of plastic.

Class B Fire Extinguisher

Color – red

Geometric symbol – square

Picture – container of fuel and burning puddle

This class of fire extinguisher is intended to be used on flammable liquids and gasses. These types of fires might involve lacquers, gasoline, alcohol, diesel oil, oil-based paints, or flammable gas.

Class C Fire Extinguishers

Color – blue

Geometric symbol – circle

Picture – burning outlet and electric cord plug

This class of fire extinguisher is intended to be used on energized electrical equipment. It would be used for fires that involve an appliance, electrical wiring, circuit breaker, or electrical outlet.

Class D Fire Extinguisher

Color – yellow

Geometric symbol – star or decagon

Picture – burning bearing and gear

This class of fire extinguisher is intended to be used on combustible metals. These fires might involve magnesium, potassium, sodium, or titanium. It’s important to note that some Class D fire extinguishers will work on multiple metal types, but others are metal specific.

Class K Fire Extinguisher

Color – black

Geometric symbol – hexagon

Picture – burning pan

This class of fire extinguisher is intended to be used on combustible cooking fires. It can be used to put out fires from cooking oils and fats.

Fire Extinguisher Tips

*Fire extinguishers are important fire protection tools. However, it’s vital to know the fire type and extinguisher class before attempting usage. Using the wrong extinguisher on the wrong fire can make the fire worse and cause life threatening injury.

*It’s extremely important for all members of the household, babysitters, housekeepers, and any other potential user to know how to safely and correctly use the fire extinguisher. Since most will not be using an extinguisher on a regular basis, it’s also important to periodically review the instructions.

*Because fires may often involve a combination of elements, most fire protection experts recommend a fire extinguisher with an ABC rating.

*Fire protection experts recommend that a medium-sized fire extinguisher be placed in the kitchen and garage. A fire extinguisher should also be placed on each additional floor of the home.

*All fire extinguishers should be annually inspected and maintained by a professional fire equipment supplier. If not properly maintained, a fire extinguisher might not discharge when needed. There’s also the risk of it rupturing when pressurized, which can result in serious injury.

* Having fire extinguishers in the home may reduce the cost of home insurance. Contact the insurance broker for the home to find out if a discount for fire loss prevention measures is offered.

 

Keep in mind that fire extinguishers are vital protection against fire loss, but they must be properly selected, placed, and maintained.

Beware of Deer when Driving

Before heading out for a week-end trip on beautiful, crisp autumn day, be aware that October, November, and December are the three months with the highest number of deer-vehicle collisions. These are the months when deer are both migrating and mating, making them more active and more likely to end up in the path of a coming car. Additionally, deer populations are getting larger, while at the same time, their habitats are being displaced by urban sprawl.

An October 2010 press release from State Farm notes that while the number of miles driven by motorists in the U.S. over the past five years has increased by only 2 percent, the number of deer-vehicle collisions has grown by ten times that amount. Based on claims data, it is estimated that 2.3 million deer-vehicle collisions have occurred in the U.S. during the two year period ending June 30, 2010. That figure represents 21.1 percent more accidents involving deer than 5 years earlier.

To put the numbers into perspective, during the time it takes you to read this paragraph, a collision between a deer and vehicle will likely have taken place. (They are most likely during the last three months of the year and in the early evening.)

According to the Insurance Institute for Highway Safety, deer-vehicle collisions in the U.S. cause approximately 200 fatalities each year, with an average damage to a car or truck around $3,100. And the accidents have a geographic component as well, with some states being far more dangerous than others when it comes to deer.

By evaluating the overall number of reported collisions in each state and weighing them by the total number of licensed drivers, a few states clearly led the list of deer-vehicle collisions. For the fourth year in a row, West Virginia tops the list of states where a driver is most likely to collide with a deer. The odds: 1 in 42.  Iowa is second on the list at 1 in 67, following by Michigan at 1 in 70. The state in which deer-vehicle collisions are least likely is still Hawaii, with the odds of deer strike being 1 in 13,011.

 Avoid Deer Collisions while Driving

If you are driving through a high-risk state, there are steps you can take to minimize your risk:

* Be aware of posted deer crossing signs. These are placed in active deer crossing areas.

* Remember that deer are most active between 6 p.m. and 9 p.m.

* Use high beam headlamps as much as possible at night to illuminate the areas from which deer will enter roadways.

* Be aware that deer generally travel in herds Д± if you see one, there is a strong possibility others are nearby.

* Do not rely on car-mounted deer whistles.

* If a deer collision seems inevitable, trying to swerve out of the way could make you lose control of your vehicle or move into the path of an oncoming car

 Where does your state rank?

 Here’s a list, from the highest risk to the least:

West Virginia: 1 in 41.91

Iowa: 1 in 67.09

Michigan: 1 in 70.36

South Dakota: 1 in 75.81

Montana: 1 in 82.45

Pennsylvania: 1 in 84.63

North Dakota: 1 in 91.11

Wisconsin: 1 in 95.68

Arkansas: 1 in 99.24

Minnesota: 1 in 99.51

Virginia:1 in 101.97

Nebraska: 1 in 110.60

Wyoming: 1 in 114.49

Maryland: 1 in 118.75

Ohio: 1 in 121.09

Mississippi: 1 in 131.35

Missouri: 1 in 133.88

South Carolina: 1 in 137.21

New York: 1 in 145.45

North Carolina: 1 in 147.27

Delaware: 1 in 149.86

Georgia: 1 in 149.88

Alabama: 1 in 150.32

Indiana: 1 in 159.61

Kentucky: 1 in 161.12

Vermont: 1 in 170.28

Kansas: 1 in 172.12

New Jersey: 1 in 182.75

Maine: 1 in 215.48

Tennessee: 1 in 217.83

Illinois: 1 in 218.45

Oklahoma: 1 in 245.35

Idaho: 1 in 249.18

Utah: 1 in 266.43

Oregon: 1 in 286.53

Louisiana: 1 in 288.45

New Hampshire: 1 in 299.49

Connecticut: 1 in 320.37

Rhode Island: 1 in 345.34

Colorado: 1 in 365.72

Alaska: 1 in 385.27

Texas: 1 in 399.97

Massachusetts: 1 in 452.34

Washington: 1 in 474.46

New Mexico: 1 in 606.78

District of Columbia: 1 in 747.47

Florida: 1 in 971.47

California: 1 in 1045.61

Nevada: 1 in 1,488.08

Arizona: 1 in 1,788.47

Hawaii: 1 in 13,011.28

Does My Insurance Cover My Gift Cards?

What do you buy for that special someone when you can’t think of anything else? With increasing frequency these days, the answer is a gift card. The National Retail Federation has reported that Americans spend more than $26 billion on gift cards during the holiday shopping season, and the average consumer spends more than $120. The reasons are simple — gift cards are easy to purchase, never come in the wrong size or color, and the recipient is guaranteed to get an item she wants with it. Like anything else of value, however, they come with risks. Some have fees attached to them, and some expire if the owner does not use them within a certain period of time. They are also vulnerable to theft, disappearance and destruction. If your gift cards are stolen during a burglary or burn up during a house fire, will a homeowner’s insurance policy reimburse you for them?

The standard homeowner’s policy provides partial coverage for gift cards. It limits coverage for money, bank notes, coins, “stored value cards,” smart cards and similar cash-like items to $200 for all property in that category. Also, the policy covers personal property, including cash and similar items, only for a list of 16 causes of loss. The list includes such causes as fire or lighting, windstorm or hail, explosion, smoke, vehicles, theft, vandalism, weight of ice, snow or sleet, and others. The policy provides no coverage if a cause that is not on the list is responsible for the loss.

A few examples will illustrate how this works.

Joe receives a $50 gift card for an electronics store for his birthday and leaves it in his living room with his other gifts while he goes out to celebrate. Someone breaks into his home and makes off with all the gifts. His policy will provide full coverage for the clothes, DVD’s and workout gear he got and the full $50 for the gift card. This is because the value of everything in that category of cash-like items was less than $200.

Joe’s family can’t think of a thing to get him for Christmas, so he gets a sweater and a pile of gift cards to various electronics and sporting goods stores and coffee shops. He feigns enthusiasm for the cards and leaves everything under the tree when he goes out to visit friends that night. Unfortunately, he has forgotten to water the tree for two weeks; an exposed tree light wire ignites it. The resulting fire cooks his downstairs. The policy covers the damage to the home and contents, but it pays only the $200 maximum for the $300 worth of gift cards.

Next year, Joe’s gift cards survive Christmas Day and, because he enjoys being stuck in traffic jams, he goes to the mall the day after the holiday to use them. However, when he steps up to a cash register with a Blu-Ray player under his arm, he cannot find any of the cards. He searches his car, every pocket in his coat, pants and shirt, and every place he went to in the mall, but he never finds the missing cards. Unfortunately, because disappearance is not one of the causes of loss listed on the policy, his insurance will not pay anything for them.

Some insurance companies may offer to increase the amount of coverage and the covered causes of loss for these items, so check with a professional insurance agent to identify those companies and find out the cost. For a small amount of money, you may be able protect yourself against the loss of these common gifts.

How to Stay Safe during Vehicle Trouble on the Roadway

As far as vehicle trouble goes, personal safety must remain the primary concern when your car breaks down away from home. In such a stressful and helpless time, it’s easy to embrace a stranger as a Good Samaritan. However, that isn’t always the case. One well-documented example of stranger danger is when Bill Cosby’s son, Ennis Cosby, had a flat tire on Interstate 405. After pulling his Mercedes over to change the flat, he was approached by a stranger that he assumed was approaching with an intent to help him. Instead, the stranger demanded money from Ennis, and then shot him in the head and fled.

The above tragedy should serve as a reminder that, no matter what the circumstances, personal safety must be forefront. Here are some safety tips for vehicle trouble away on the roadway:

Remember to always travel with a fully charged cell phone, especially if traveling long distances or in an unreliable vehicle. Even if your vehicle has an emergency system, such as OnStar, it’s prudent to travel with a cellphone to alert family or friends that you’ve had vehicle trouble.

Never exit, examine the damage, or attempt any vehicle repair on the side of a roadway with a high traffic volume or traffic traveling at high speeds. Whatever the damage, it isn’t worth the risk of being struck by a passing vehicle.

If possible, move the vehicle to an area away from the roadway before getting out. When a vehicle isn’t drivable, lock the doors and call for help.

If another driver is involved, such as in a vehicle accident, motion for the other driver to accompany you to a safer spot before calling the authorities or exchanging personal information. When possible, try to find an area that isn’t busy with traffic, but that is still populated.

Turn on the hazard lights to alert other drivers that you have a problem. If the car is in a safe place, you may exit the vehicle to further mark the vehicle location and alert other drivers to a motionless vehicle with reflecting triangles or roadside flares.

It might damage the rim, but go ahead and drive the vehicle to a safe location before trying to change a flat tire. Any damage to the tire or rim can be fixed, whereas the probability of you being fixed after a high speed car strikes you isn’t so good.

In the event that a stranger approaches or offers assistance, return to safety of your vehicle. Don’t roll the window down or exit the vehicle. If you don’t personally know the person, yell to them that you have assistance coming and politely refuse their assistance.

What to Expect during Your Condominium Coverage Checkup

Due to the fact that condominium coverage must be properly coordinated with the condominium association’s master policy, making sure that you have the proper amount of insurance on your condo is often much more difficult than run-of-the-mill coverage on a single-family dwelling. In order to avoid catastrophe, you should do a routine periodic condominium coverage checkup with your insurance agent.

At this time your agent will look for ways to ensure that you avoid any substantial coverage gaps and improve your coverage protection where needed. Here are some key points about what to expect during your condominium coverage checkup:

* Before visiting your insurance agent, ask your condo association for a copy of the declaration document that indicates the coverage you (the unit-owner) should be insuring yourself.

* You should help your insurance agent evaluate the appropriate property insurance limit for your specific condo. If you’ve done remodeling work, for example, then your unit-owner policy dwelling limits may not be sufficient and any damage incurred to your updates wouldn’t be covered under your master policy.

* The chance of assessments (from the association to you) in order to reimburse any deductibles the association incurs from a loss covered by the master policy is also an important consideration. This is a situation that can be very problematic for you if the assessment is from high property deductibles within the condo association’s master policy. The amount of the deductible can be found in the declaration document mentioned above. Most policies usually provide a limited amount of coverage for the assessment. If this is your case and there’s a possibility that you’ll be assessed over the assessment coverage limit, then you can probably increase that amount of coverage for your assessment.

* Your insurance agent will look for coverage gaps in the perils covered under your unit-owner policy and help you decide if the perils should be expanded.

* One last important element to review under your unit-owner policy is your personal property or content limit. Inform your agent of all big-ticket purchases that you’ve made since your last review, as your limit may need to be increased to provide adequate coverage.

What to Expect during Your Condominium Coverage Checkup

Due to the fact that condominium coverage must be properly coordinated with the condominium association’s master policy, making sure that you have the proper amount of insurance on your condo is often much more difficult than run-of-the-mill coverage on a single-family dwelling. In order to avoid catastrophe, you should do a routine periodic condominium coverage checkup with your insurance agent.

At this time your agent will look for ways to ensure that you avoid any substantial coverage gaps and improve your coverage protection where needed. Here are some key points about what to expect during your condominium coverage checkup:

* Before visiting your insurance agent, ask your condo association for a copy of the declaration document that indicates the coverage you (the unit-owner) should be insuring yourself.

* You should help your insurance agent evaluate the appropriate property insurance limit for your specific condo. If you’ve done remodeling work, for example, then your unit-owner policy dwelling limits may not be sufficient and any damage incurred to your updates wouldn’t be covered under your master policy.

* The chance of assessments (from the association to you) in order to reimburse any deductibles the association incurs from a loss covered by the master policy is also an important consideration. This is a situation that can be very problematic for you if the assessment is from high property deductibles within the condo association’s master policy. The amount of the deductible can be found in the declaration document mentioned above. Most policies usually provide a limited amount of coverage for the assessment. If this is your case and there’s a possibility that you’ll be assessed over the assessment coverage limit, then you can probably increase that amount of coverage for your assessment.

* Your insurance agent will look for coverage gaps in the perils covered under your unit-owner policy and help you decide if the perils should be expanded.

* One last important element to review under your unit-owner policy is your personal property or content limit. Inform your agent of all big-ticket purchases that you’ve made since your last review, as your limit may need to be increased to provide adequate coverage.

Four Steps to Help You Ensure Your Most Valuable Items Are Covered on Your Homeowner’s Insurance

What do holidays, special occasions, and inheritances often have in common? If you guessed the acquisition of a new possession, then you’d be right. While excited about your new big-screen, appliance, jewelry, antique, art, or other valuable item, you need to be mindful that acquiring such also increases the monetary value of your home contents. Your homeowner’s insurance should be updated to adjust for additions that add significant value. Here are four steps that can help you ensure your most valuable items are covered:

Home Inventory

Go through your home periodically and take note of the most valuable items, as these are the items you want to ensure are insured against damage or loss from events like theft or fire. For most, these items usually consist of electronics, jewelry, art, antiques, collectibles, appliances, and rare items. If an item would be hard or impossible for you to replace, then it should be included. Also keep in mind that standard policies usually limit firearm coverage since they are commonly targeted by thieves.

Home Inventory Appraisal

Some items are more difficult than others to give a value, especially antique or sentimental items. A professional appraisal can be very helpful in finding out the true value of an item. It’s also very useful in estate planning.

Home Inventory Documentation

Any item on your home inventory list should be visually documented with a camera or video camera. This will speed up the claim process. Make sure the shots are clear and show the details of the item. It’s also a good idea to get a wide shot of each wall in every room of your home. You may store the photos or tape in a safe deposit box and/or upload them to an online photo storage site like Flicker or Photobucket.

Coverage Examination

Many homeowners have no idea what’s covered by their homeowner’s insurance until disaster strikes and they’re trying to submit a claim. Don’t leave yourself in the dark and compound emotional loss with financial loss. You may very well find yourself trying to replace expensive items out of your own pocket.

Make sure that you carefully examine your homeowner’s insurance policy so that you don’t suddenly discover a loss isn’t covered. You should pay close attention to any category that contains exclusions or limits losses to a specific dollar amount. You’ve already done an inventory and appraisal. Now, it’s time to compare the value of the items on your inventory list to your existing coverage. You should make sure that the coverage is suffice to compensate you should you suffer a theft or disaster-related loss. If you note any discrepancies or have any questions or concerns, then you should schedule a policy review with your insurance agent.

How Uninsured Drivers Affect Responsible Drivers

Most Americans are surprised to learn that, nationally, approximately 1 in 6 drivers on the road are uninsured. This information comes from a recent study by the Insurance Research Council. The study further shows that in some states, as many as one in three drivers are uninsured or underinsured, and that there is a solid correlation between unemployment and lack of insurance. Furthermore, statistics show that nearly one out of every two accidents involves an uninsured or inadequately insured driver.

How Can You Protect Yourself from the Costs of an Uninsured Motorist?

You should ensure that your auto insurance policy includes both uninsured motorist (UM) and underinsured motorist (UIM) coverage. As a rule, the limits on these policies should be as high as your policy’s property damage and bodily injury limits.

When someone without insurance causes an accident that involves your car, or if your car was damaged by a hit-and-run driver, UM coverage would pay for the resulting claims. On the other hand, UIM insurance provides coverage when someone else causes an accident, but does not have enough insurance to adequately cover all of your costs.

You also need to consider how much your life would change, if you were hit by an irresponsible driver. How would you make your car and mortgage payments, and pay your other expenses if you were permanently injured? UM and UIM coverages bear the cost of lost wages if you are unable to work after an injury. If you do not have these coverages and are hit by an uninsured motorist, the only other option is to pursue the driver in small claims or civil court. This often proves to be a difficult and expensive option. Thus, the benefits of this coverage can be substantial compared to the relatively low expense.

What Should You Do if You Are Hit by an Uninsured or Underinsured Motorist?

If the driver has insurance, copy down the other driver’s insurance and contact information. Whether they have a policy or not, get the driver’s name, address, and phone number. Furthermore, you should always write down the license plate number and call the police, even if the accident appears to be minor. A police report is always valuable in determining who was at fault.

Do You Know How to Handle a Vehicle Accident?

According to The National Highway Transportation Safety Administration, there are more than six million U.S. motor vehicle crashes per year reported in the United States. Most of us don’t like to think about what if, especially when it comes to vehicle accidents. However, the odds say that you’ll most likely find yourself involved in a vehicle accident at some point in your life. Do you know how to handle a vehicle accident?

There will be an initial shock. Once you’ve realized what has happened and checked yourself for injury, you should attempt to exit your vehicle. You might need to use a window if your door has been damaged. As you find your way out of the vehicle, make sure to pay attention to the oncoming traffic and stay clear of it.

If your vehicle is still drivable, then move it to a public location. From there, you’ll be able to safely exit the vehicle and report the accident. Moving the vehicle is usually a good idea if there’s an immediate danger like being hit again on a busy interstate. Do keep in mind that some states require you to stay on the scene.

You should dial 911 to report the accident. The dispatcher will automatically know your location if you’re calling from a land-line. You’ll need to know your location when using a cellular phone since it’s a more difficult and lengthy process for an emergency dispatcher to determine your location through a cellular phone.

In the event that your vehicle ends up in water, staying calm is a must. You won’t be able to open the door due to the pressure from the water if the vehicle submerges. Calmly take a deep breath and roll down the window to escape. If the electric windows won’t work, then you should break the window by hitting it with an object or kicking it.

As far as insurance goes, most insurance carriers recommend the following universal steps be taken following an accident:

* Take note of how many passengers are in each of the other vehicles involved in the accident, as this will help prevent the future addition of passengers during insurance scams.

* Collect the full name, insurance information, and home address of all other drivers involved in the accident. You should also provide your information to the other driver(s).

* Write a brief summary of the accident, recording as many details as possible – the make, model and year of the vehicles involved; the time of accident; and weather conditions.

* Collect the names and contact information of any witnesses, especially if you feel something or someone other than yourself caused the accident.

* While it’s okay to express concern over what happened at the scene, you should never admit that the accident was your fault or claim liability.

* Have your insurance information, driver’s license, and vehicle registration available for the police. Once the police are on scene, the officer will collect your information. The officer will ask all the drivers what happened and record the account(s).

* Make sure that you ask the officer for the police report so that you can give it to your insurance carrier.

* You should contact your insurance agent or carrier as soon as possible. Most major insurance companies have a 24-hour phone number for claim reports.

Consider Options to Lessen Homeowner’s Insurance Premiums

Home is where the heart is, and for most homeowners, a large portion of your net worth resides there as well. We all know that insuring this valuable property is both necessary and expensive. In fact, homeowner’s insurance premiums can take a healthy bite out of a family’s monthly expenditures. Homeowners owe it to themselves to look at some approaches that could potentially lower monthly premiums.

Six Ideas to Reduce Premiums

  • Take steps to make your home as disaster resistant as possible. For instance, consider adding stronger doors, storm shutters and reinforced roofing for added protection from hurricanes and other disasters. Many insurance companies will reduce premiums based on these upgrades.
  • Ask your insurance agent if they offer homeowners discounts for new or recently renovated properties. Because a newer home usually results in fewer losses, some insurers reduce rates by up to 25 percent for homes that are less than five or ten years old. Likewise, homes that have had significant renovations completed by a qualified contractor can also qualify for reduced insurance premiums. In this case, your insurance company may require documentation of the renovations, and when they were completed.
  • Improve the safety and security of your home. Items such as burglar alarms, deadbolt locks and smoke detectors can reduce your monthly premiums. Your insurance company might also offer a discount for installing a sophisticated home-security system.
  • Maintain an outstanding credit rating. Many insurance companies utilize credit scores in determining homeowner’s premiums. Achieving and preserving a strong credit score can result in a monthly premium discount.
  • Ask questions to determine if your home is over insured. Be aware that the value of your home, and the value of your land are separate. If your home is severely damaged and needs to be rebuilt, the reconstruction costs should be based on the replacement value of your home, and not on the value of your land.
  • Consider the possibility that other discounts may apply. Insurance companies offer a variety of options such as: long term customer discounts, senior citizen discounts, loss-free discounts, or multiple policy discounts.

Your home is your castle, and there are many steps you can take to protect this valuable asset in the most efficient manner possible. Speak with your agent to see if these or other discounts apply.

How to Prevent Garage Door Injuries

Most people wouldn’t overlook a 300-pound football linebacker or a 400-pound boulder coming their way. For some reason, a garage door, which is also typically 300 to 400 pounds, opening and closing usually isn’t given a second thought. While this object may seem benign, it’s often the heaviest moving feature of your home and should be a safety concern area.

The majority of garage door-related injuries involve pets and young children that are oblivious to the potential dangers presented by such a heavy moving object. Children can easily get an extremity caught between the ground and the bottom of the garage door as it descends to a close. To avoid such a catastrophe, garage door owners should pay attention to three areas – educating children, safety precautions, and maintenance.

Garage door owners should make sure young children are clear of the garage door before it closes. Children should be taught never to run under a moving garage door and to never play near it, even when it’s not in motion. Children should be taught the emergency response, including how to reach an adult and call for emergency assistance, should an accident occur. Older children should be taught how to correctly operate the garage door and use its’ emergency release.

Garage door owners should also make sure that they are taking the appropriate safety precautions to avoid a garage door accident. Make sure to position the operating push buttons five feet or higher from the floor when it’s installed, as this will help prevent small children from playing with the buttons or inadvertently pushing it. Garage doors manufactured since 1993 have been subject to a federal law requiring all garage door openers to contain an automatic reversing mechanism that will immediately reverse the closing if the garage door comes into contact with anything as it’s closing. You might consider upgrading your garage door if it was manufactured prior to this law. You can check your garage door by placing an unbreakable item, such as a piece of wood, under it to determine if it reverses as it comes into contact with the item. Do try to perform this test away from the watchful eyes of children that might think of it as a new game to play.

Garage doors should be regularly inspected for any problem areas that could create a malfunction – worn or warped tracks, rollers, cables, pulleys, and springs. Worn springs are a particularly dangerous problem since they could dislodge and go through the air to strike someone with great force. This is not a DIY area; always consult a professional for maintenance.

With the right education and use, preventative measures, and maintenance, a garage door can be a convenience and a protective feature of your home, not a disaster waiting to happen.

Safe Driving Tips that Can Help You Avoid Vehicle Accidents

Few drivers consider themselves bad drivers. In fact, most people would probably give themselves an A+ on their driving skills. While some may indeed be excellent drivers, there wouldn’t be over 6 million vehicle accidents each year in the United States if everyone was an excellent driver.

Even though what other drivers do can’t be controlled and there will never be a way to completely eliminate the risk of being in a vehicle accident, you can practice safe driving to reduce your liklihood of being in a vehicle accident. It’s up to each and every driver to do their part to make the roadways a safer place for themselves and other drivers. You can do this by first remembering the basics you were taught on safe driving – both hands on the wheel, signaling before turning, and so forth. Here are ten more safety tips to remember:

1. Get rid of distractions like food, newspapers, books, makeup, and phones. Only change CDs or the radio station when stationary.

2. Properly maintain your vehicle on a regular basis, including tires and all fluids. Refer to your owner’s manual or accompanying maintenance log book for the recommended maintenance schedule for your vehicle.

3. Routinely inspect your brake and signal lights. If one is non-operational, then replace the bulb or have it repaired immediately.

4. Enroll in a defensive driving class.

5. Practice defensive, but not aggressive, driving. When an aggressive driver is encountered, simply ignore them and either allow them to move away from you or move away from them yourself. If extremely aggressive, then you can report the driver to the local authorities.

6. Keep a safe following distance; have at least one car length between you and the vehicle in front of you for each ten mph on your speedometer.

7. Since many unintentional and intentional insurance scam vehicle accidents occur at intersections, you should depart from intersections with extreme caution. Even after the light turns green, try to count to three before accelerating.

8. Be especially vigilant during poor road conditions, such as those caused by weather or construction work.

Make sure your headlights are on not just at dusk and dark, but also during hazardous weather conditions like fog and rain.

9. Set your mirrors and seat positions according to your view, not your passengers. Remember to check that they haven’t been moved from your settings before hitting the road, since making such adjustments while driving takes your eyes off the road and distracts you.

10. Never drive while intoxicated.

How to Prevent Emergency Generators from Becoming a Danger

Having a reliable backup generator can be invaluable during a power outage. From powering a refrigerator, the lights, or heating or cooling during an emergency power outage, an emergency generator can be a real asset and provide many of the essentials that your family would otherwise be without during an outage. That said, generators shouldn’t be used haphazardly. If safety regulations aren’t followed, a generator can become more of a danger than an asset.

Determine what size generator you’ll need. The size of a generator will be based on the items you’d like to power during a power outage. For example, those in colder climates will want to power the furnace to keep the home warm and help prevent pipes from freezing and breaking. A well pump, refrigerator, freezer, and electrical in-home medical equipment should also be considerations. Keep in mind that the generator’s size and cost will increase with the more you need the generator to support.

Once you’ve figured out what size generator you need, you will have two main types of generators to choose from – portable or permanent standby. Understanding the workings and what’s required for each can help you determine which type best suits your need.

Depending on the specific size, a portable generator will allow you to have television, radio, lights, furnace, water well, and refrigerator and freezer powered. Generators can range from 1000-watt to 10,000 watt, with the average home needing at least a 5,000-watt generator. You may switch out the appliances, such as by momentarily disconnecting the refrigerator to operate the microwave, but make sure not to overload the equipment. You’ll plug your desired appliances directly into the portable generator using several heavy-duty grounded extension cords. This type of generator doesn’t need to be installed professionally, but it’s of vital importance that users follow strict safety practices. Never operate the generator inside the home, garage, or otherwise confined space; it must be used in a thoroughly ventilated area. Make sure to keep gas-powered portable generators away from open flames.

On the other hand, a licensed professional electrician should be used to install a permanent standby generator since it’s connected to the home’s wiring system, the installation should meet local building codes, and must be installed with several key safety features. Special equipment must be installed to prevent the generator from backfeeding into the electrical system within the home. Backfeed can result in a fire or equipment damage. It must have a transfer switch installed so that power crews won’t be in danger from live electrical currents if they need to make repairs to lines. You’ll also need to notify the power company when you install a permanent standby generator.

A generator will only be an asset to help you safely and comfortably make it through a crisis when it’s used appropriately. Otherwise, it can create more problems than it solves.

Know the Facts to Help Avoid Being a Victim of Auto Theft

According to the FBI’s National Crime Information Center, one vehicle is stolen about every 25.5 seconds in the U.S., which amounts to a total of 1,235,226 stolen U.S. vehicles and upwards of 7.6 billion dollars in vehicle losses.

Despite the tremendous expense involved when a car is stolen, many consumers still aren’t preparing in advance to handle the possibility of a vehicle theft. A number of common misconceptions have contributed to consumers adopting a defeatist attitude about vehicle theft. There are a number of vehicle owners that feel it’s all but impossible to prevent becoming a victim of vehicle theft, even when protective methods like anti-theft devices are used. This type of defeatist attitude can have serious and unnecessary consequences for vehicle owners.

The Wiser Drivers Wise Up project was started by the Council of Better Business Bureaus, the Insurance Information Institute, and The National Insurance Crime Bureau to dispel the defeatist attitude and teach drivers how to handle their vehicle being stolen. The program includes five auto theft myths that can actually leave a vehicle owner more vulnerable to having their vehicle stolen:

1. Older vehicles aren’t targeted by thieves. Statistics clearly show this myth isn’t true. For example, The National Insurance Crime Bureau reports that the five top stolen model years for 2009 were: 1994 Honda Accord, 1995 Honda Civic, 1991 Toyota Camry, 1997 Ford F-150 Pickup, and 2004 Dodge Ram Pickup.

2. The majority of vehicle thefts occur in unprotected areas. Again, statistics clearly disprove this myth. According to one FBI report on the subject, more than a third of all vehicle thefts take place from a home. The same report showed that only two in ten vehicle thefts take place in a parking lot and that only a very small number of vehicles are stolen or carjacked along roadways, highways, and alleys. So, parking in a an area felt to be secure doesn’t decrease the likelihood of your vehicle being stolen.

3. Anti-theft devices aren’t hard to install. Unless, you’re trained on the complexities of a vehicle’s electronic workings, then it’s best to pay for a professional to install, wire, and test the anti-theft device for you. It might be tempting to go with the cheapest price, but keep in mind that a cheap price doesn’t always equate to a bargain. Check with the Better Business Bureau to help you determine if the installer is running a reputable business, especially if a business is offering a substantial price difference from their competitors. If the technician that will be installing your alarm system hasn’t been certified by the Mobile Electronics Certification Program (MECP), then you might want to consider a different installer. Make sure that the installer provides instruction on how the alarm system works and is operated. You will also want a written warranty from the installer.

4. The police usually find stolen vehicles. Only half of all stolen vehicles are ever recovered. The first few days following the theft will be critical, as the chance of recovery diminishes with each day the thief possesses it. The highest number of vehicle thefts occur on Saturdays and Fridays. The highest number of recoveries are from vehicle thefts occurring on a Monday or Tuesday.

5. Insurance companies always provide victims of vehicle theft with a rental car. Check your policy; while theft coverage is part of a comprehensive auto insurance policy, it may or may not include a rental replacement car following a theft.

In closing, vehicle owners shouldn’t make the costly mistake of assuming vehicle theft is an inevitable occurrence. It’s also advisable to do an annual review of your auto policy for mandatory coverages, needed coverages, and coverage features like rentals and roadside assistance.

Simple Keys to Understanding Homeowner’s Insurance

To make sure you have the right type, and right amount of homeowner’s insurance, you need to understand what it does, and doesn’t, cover. Regular homeowner’s insurance will cover damage from tornadoes, fires, and burglary; but it will not cover the calamity of hurricanes, floods, terrorism, or nuclear meltdowns.

Basic Principles

*Make sure to get enough coverage to re-build your home from bottom to top.

*Choose “replacement cost” instead of “actual cash value.”

*Regularly inventory your possessions and their replacement costs. Consider a special rider for valuables such as jewelry, furs, and family heirlooms.

*Understand “loss of use” provisions. These provisions will dictate how long your insurer will pay rent while your home is rebuilt or repaired.

Best Offerings

*Look at on-line quotes and shop around, in general. Do some research to make sure the company is financially sound.

*Consider the possibility of raising your deductible to keep rates low.

*Get discounts by purchasing homeowner’s and auto insurance from the same company.

*Consider an umbrella policy to protect against lawsuits.

*Ask if special discounts are available. Some companies offer discounts to longtime customers, seniors, and non-smokers.

*Monitor and maintain a good credit score

*Unless you plan to file a claim, don’t report damages.

What Isn’t Covered

*Home office equipment

* Damage from neglect and poor maintenance practices

*Losses caused by pests such as insects, rodents, and pets

*Sewer backups and mold

In Case of Disaster

*Get in touch with your insurance company as soon as possible.

*Begin checking for damage and take photos to document calamity. Make quick fixes and temporary repairs to mitigate further damage.

*Be cautious of repairmen charging exorbitant rates and con artists impersonating insurance adjusters.

*Read the fine print before signing anything! Be careful not to sign away future compensation upon receipt of the first check.

*If a settlement offer is clearly unfair, don’t accept it.

Learning a few simple principles in advance can save you a bundle, should disaster strike.  Speak with your insurance agent to gain a better understanding of your homeowner’s insurance needs. 

Internet Usage Spells Trouble for Drivers

Driving distractions come in many shapes and sizes. Between phone calls, text messages, Internet, television screens, unruly children, and distractions on the road, it is a wonder we ever arrive safely from Point A to Point B.

In November of 2010, State Farm created an online survey to gain a better understanding of what distracts drivers from their most important task at hand – driving. The survey went to 912 drivers who reported that they drive at least an hour per week, own a smartphone, and have a valid driver’s license.

Of those surveyed, 19% admitted to Internet usage while driving. Here are the top five internet activities that driver’s engage in:

1) Searching for and reading driving directions

2) Reading E-mail

3) Looking for specific information of immediate interest, such as where to find a restaurant

4) Reading/Updating social networking sites such as Twitter and Facebook

5) Writing/sending an e-mail

When asked about when their internet usage occurs, drivers responded:

*When stopped at traffic lights

*During heavy traffic

*When driving alone

*During daylight hours only

*On long highway drives

The survey further reports that about 40% of the U.S. population currently owns a smartphone, and this statistic equates to many distracted drivers on the road at any given time. Studies show that the increasing use of smartphones, especially among young adults, increases the risk of crashes. And there is an ever-growing need to remind yourself and the ones you love to put the phone away while driving.

House Fires do Happen: Take Steps to Prevent a Fire in Your Home

According to the American Red Cross, 80% of Americans don’t realize that home fires are the single most common disaster in our country.  In fact, each year fire kills more U.S. citizens than all other natural disasters combined. However, most people aren’t aware of this because house fires are “silent disasters,” seldom receiving the same publicity as floods, hurricanes and earthquakes.

Another little known fact is that very few fires are caused by natural events such as lightning or static electricity. The American Red Cross says that faulty appliances and faulty wiring cause the greatest number of house fires. The second most common source is heating devices such as kerosene heaters, wood stoves and fireplaces. These devices cause fires when furniture, boxes or clothing are placed too near to them, and the material overheats and bursts into flames. Although human error is often the catalyst for house fires, human preparedness can prevent them.

Here are some tips to keep your family and property safe:

* Purchase only quality household equipment that has been tested by Underwriters’ Laboratories (UL) or other appropriate testing facilities.

*Be certain that  household equipment is installed by a technician who has been trained how to properly install, and also knows the appropriate building code requirements for the installation.

*Have your electrical wiring and heating periodically checked to be sure they are in proper working condition.

*If an appliance is behaving erratically, don’t operate it.  Instead, call a qualified repairman to find the problem and correct it.

*Control the amount of combustible material in your home by removing cardboard boxes, newspapers, old mattresses, rags, leftover paint and other items that are no longer in use. In fact, you should periodically inspect the attic and the cellar to be sure that you aren’t storing any combustible materials that should be discarded.

*Check the type of wall finishes in your home to ensure they aren’t conducive to spreading a fire. Plaster and gypsum board retard fire growth. Plywood paneling made of compressed wood pulp, known as beaverboard, accelerates the spread of fire in dwellings.

*Place fire extinguishers so they are readily available in the event a fire starts. It is important to understand what type of fire extinguisher to use:

-Class A extinguishers can be used to put out fires in wood, rubber, cloth, and paper.

-Class B CO2 or foam-filled extinguishers can be used for fires in flammable liquids, greases and gases.

-Class C CO2 or foam-filled extinguishers can be used for fires in energized electrical equipment.

-Halon can be used on any type of fire.

*It is of utmost importance to put a smoke detector in every room.

*Schedule regular practice fire drills. Be sure children are completely familiar with the correct way to evacuate in the event of a fire.

*Don’t let your family be the victim of this “silent disaster.” Become familiar with these fire prevention tips and put them into practice.

Four Tips to Keep Your Teen Driver Safe when You Aren’t in the Car

Newspaper columnist and author Erma Bombeck once humorously advised parents to never lend a vehicle to anyone to whom they’ve given birth. If only life could be that simple. Most parents don’t find deflating the tires and locking away the keys from their teen driver a feasible approach and will eventually let their teen driver borrow the car.

Just because you’ve decided to let your teen get behind the wheel doesn’t mean that you want to hand the keys over haphazardly. There are several things that you can do to prepare your child and help relieve some of the uneasiness you might feel.

1. Enroll in a motor club.

One of the most important features is that the emergency roadside service you pick offers 24/7 roadside assistance. Your teen will then be able call for professional help whenever he/she might need it. You may also consider asking your motor club if they offer emergency roadside services for when your teen is riding in a friend’s car.

2. Have a candid conversation with your teen about driving.

You’ll never know your teen’s knowledge and attitude about driving if you don’t talk to them. Although the graphic details of what can happen when speed limits, stop signs, signal lights, and roadwork cautions are ignored might not be fun topics, it’s important for kids to know the consequences of their driving actions.

You’ll also want to establish ground rules for using the car, such as how many passengers will be allowed, what time it should be returned, and where it can and can’t be taken. Keep in mind that some state laws will dictate the answers to some of these questions.

Another topic of discussion should be drinking and driving. No parent wants to believe that their sweet and levelheaded child would be the type to drive intoxicated, but the reality is that even good kids can be foolish or succumb to peer pressure. Make it clear that you’ll have zero tolerance for both drinking and driving -and- riding with someone else drinking alcohol. At the same time, you’ll want your teen to know beyond a doubt that they can call you anytime they get into a bad situation and you’ll be there to come pick them up.

3. Purchase a global positioning system.

A GPS is a device that you can install to apprise you on the location of your vehicle and teen. You will establish a radius of operation for the device. The GPS will alert you if the teen takes the vehicle outside of your set radius, is driving the vehicle beyond their curfew, and if they break the speed limit.

4. Purchase a speed-monitoring device.

This device, also called a governor, restricts the fuel injection of the vehicle. This restriction prevents the vehicle from going over a certain speed. In addition to standard GPS and governor devices, there are also much more expensive high-tech options like tiny on-board drive cams that capture risky driving behaviors on video.

If you feel like you’re being intrusive, just keep in mind that NHTSA data shows the crash rates for drivers between 16 and 17 years of age are nine times that of an adult driver. As your teen driver becomes a more experienced driver and develops safe driving habits, you can always reconsider your approach.

Know What Red Flags to Look for when Purchasing Your First Home

According to the National Association of Realtors, most average home buyers look at 10 to 12 homes before making a purchase. However, some can painstakingly look for months, even years, before finding the one.

With such a long and tiring process, it’s very easy to get starry-eyed when you finally find the house with the perfect exterior, outdoor space, paint, room sizes, and so forth. Within a month, you’ve bought and moved into your new home. It’s at this point that you discover the roof is leaking and the foundation is cracked; suddenly, everything isn’t as perfect as you imagined.

A lot of homebuyers, especially those buying their first home, get caught up in a situation just like the above by focusing most of their attention on all the pretties and easily fixed dislikes of a home. All the red flags that signal the house might be more expensive or more trouble than it’s worth are overlooked or ignored. That’s not to say that your perfect house should be nixed for having a few flaws, but you do want to avoid having one of the largest purchases you’ll ever make turn out to be a lemon. Here are a few tips on some common problem areas:

1. Foundation

Foundations are one of the most expensive repairs facing a homeowner. Therefore, it should be one of the first things a homebuyer checks. Look for any cracks in the stone or concrete basement walls, brick fireplace wall, around all windows and doors, and along the outside brick veneer. These can be the first sign of an structurally unsound foundation and should be further inspected by a professional before the home is purchased.

2. HVAC

If the home has HVAC to heat and cool it, then make sure to ask about the system’s age and operation, look for any poorly connected vents, and watch and listen as the unit runs. Minor issues with the system can reduce how energy-efficient the home is and increase electric bills, while a total replacement can cost several thousand dollars in immediate expense.

3. Electrical

A home built in or before the 1930’s could still have knob-and-tube electrical wiring. This can be a problem if it has been tampered with, such as from attic insulation being blown-in atop the wiring. Such tampering can create dangerous fire hazards. Furthermore, most insurers don’t consider this type of electrical system safe and will charge you higher premiums or turn you down entirely. Keep in mind that rewiring the entire home will be a multi-thousand dollar expense.

4. Water Damage

Homes that have had water damage or leak issues might be hiding several expensive fixes and dangerous health issues like mold. Look for the signs of past leaks, such as any brown or white stains along the basement, main level, and upper level walls; mold growth under sinks; and horizontal stains along any bare floors. While fresh paint, especially in a basement, may just be updates, it could also be designed to hide the stains of water damage.

5. Look Twice

The first walkthrough of a home is often with rose-colored glasses. Even if you want to make an offer, take a few days to collect your thoughts and return to view the home at least one more time.

6. Pricing

There’s a big difference between getting a good deal and coming across a home with a price too good to be true. Suspiciously priced homes or sudden large price deductions can be indicators of an undisclosed problem, which is why a home inspection is so important.

7. Home Inspection

Home inspections can be a buyer’s best friend and a seller’s worst nightmare. Never make an offer before getting a home inspection. Get a second opinion anytime a home inspector files an inconclusive report.

Be safe rather than sorry.  First-time homebuyers can avoid many of the pitfalls to buying a home by just knowing what red flags to look for and not ignoring them.

At What Amount Should I Set my Auto Insurance Deductible?

While almost everyone would like to save on their auto insurance, it can be a big mistake to be penny-smart, dollar-foolish. The dollar amount you set your comprehensive and collision deductibles at will be one of the most important decisions you make during the purchase of auto insurance. In turn, the deductible amounts you set will be one of the main determining factors in the amount of your monthly premium.

Any insurance policy covering comprehensive and/or collision will contain a deductible. Most deductibles are $1,000, $500, $200, or $100 dollars; but deductible amounts do vary by state. Deductibles are the cost you will pay out-of-pocket during an insurance claim. For example, let’s say that your deductible is $500 and you’re involved in an auto accident that causes $4,000 dollars in damage to your vehicle. You will be responsible for paying the initial $500 and the insurance company will then pay the remaining $3,500. On the other hand, if your deductible is $100, then you will only pay $100 before the insurance company pays the remaining $3,900. As you can see, a higher deductible means you pay more out-of-pocket and a lower deductible means you pay less out-of-pocket after an accident. As a general rule, lower premiums are associated with higher deductibles and higher premiums are associated with lower deductibles.

It can be difficult to weigh what premium amount you’re willing to pay now against what deductible amount you’ll be willing to pay for any future claim. Be sure to take into account your comfort level; income, savings, and credit lines; driving history; and your vehicle’s value as you make your decision on the deductible amount.

Choosing a high deductible/low premium or low deductible/high premium will greatly depend on what you can reasonably afford. Imagine that you had an auto accident today – would you have funds from your household income, credit lines, and/or savings to use as your deductible? If so, what financial impact would using funds from these sources have on your family and how much would you be comfortable using to pay the deductible? If the deductible you have in mind (or already in place) is higher than what you have available or feel comfortable using, then it should be lowered. On the other hand, if you have the funds easily available to pay a higher deductible amount, then you can raise the deductible and save money on your premiums.

You also need to ask yourself how much risk you are willing to assume. Will you continue to be prepared to cover the deductible amount you set? If not, are you willing to risk having a high deductible and bet on not getting into an accident?

How often you expect to make a claim on your insurance is another factor to consider. While accidents are unpredictable and no driver wants to think they’re a bad driver, your driving history speaks for itself. If you’ve had a history of frequent fender-benders or accidents, then it could be best for you to opt for the higher premium/lower deductible option. On the other hand, the lower premium/higher deductible could be a better option if your driving record is excellent or only has a few infrequent driving incidents. You might also consult your insurance agent on what the average deductible is for your driving experience and the age of your vehicle.

Don’t forget to review your auto insurance deductible at least once a year. Ask yourself if your financial situation has changed since the deductible was set and if the deductible amount is still something you could comfortably pay if you had an auto accident today.

The bottom line is this: don’t let purchasing car insurance confuse or overwhelm you. Take your time to assess your finances and circumstances to figure out what you feel comfortable with paying on both a monthly basis and at any given time an accident should occur. If you have any questions or concerns, don’t hesitate to consult your auto insurance agent.

Do I Need to Make an Accident Report?

The first few moments following an auto accident can be an extremely confusing, emotional, and frightening time. As such, it may be difficult to know what accidents need to be reported and what your insurance may require.

There are some types of accidents that will always need a response from one of the local law enforcement departments, such as Highway Patrol, Police, or Sheriff. Each law enforcement department will have a jurisdiction, meaning that which department responds and takes the report will depend on where the accident occurred. For example, an accident within the city limits will most always be handled by the Police. Regardless of the responding department, you should always make a report when an auto accident involves elements like an injured person, severe damage to any vehicle, and/or a driver flees the scene of the accident.

Your insurance company may also require you stay on the scene and report the accident, even in cases where the other driver flees the scene of the accident. Some insurers will accept a counter report. A counter report may be provided by the responding officer for you to fill out, or you might need to go to the nearest station to complete the form off scene. Counter reports are fairly commonplace in larger jurisdictions when the responding officer sees that the vehicles involved are still in working order and no one is injured. In any event, just make sure to remember to get a copy of the counter report for your insurance carrier.

Even if the accident doesn’t involve one of the above elements, there are certain situations where it can be very helpful to have a law enforcement response and accident report. For example, the other driver might admit blame and offer you cash for your damages, but refuse to give you his/her insurance information or contact information. Even if the other driver does offer you his personal contact information in such a situation, you still have no way of knowing if the information being provided is factual. Another example would be you forgetting to collect all the important information and crucial details of the accident because you’re stressed or confused from the accident.

Making a police report can be very helpful in any of these situations since it will involve the law enforcement officer collecting/verifying the driver’s name, address, phone number, car tag, insurance information, accident details, injury details, and so forth. Basically, most any detail that would be needed in court or by the insurance adjuster will be documented in the police report.

Lastly, even though a police report will be necessary or needed for many accidents, you should still always try to remember to write down all the information yourself. Depending on the jurisdiction, it can often take weeks to months for the insurance adjuster to request and obtain a copy of the accident report. On the other hand, the adjuster can initiate the investigation immediately when you’re able to provide the insurance information on the other driver(s).

Four Rules of Thumb to Follow When Purchasing an Auto Insurance Policy

There probably aren’t very many, if any, drivers that look forward to buying auto insurance. If you’re like most people, you feel that you have an overwhelming task when it comes to sifting through dozens of companies and agents to find the ideal insurer for your vehicle and unique financial situation. The process can leave you feeling unrewarded and irritated as you think about writing a check for a policy that you hope you’ll never need to use.

On the other hand, you know that having auto insurance is a necessity that can be the difference between a financial catastrophe and enduring a minor inconvenience if you were to have an auto accident.  Furthermore, there are steps you can take that make the act of buying insurance less painful and complicated.

The following four rules of thumb can help you drastically simplify the process, while still getting the best auto insurance policy for your needs:

1. Don’t forget to consider the size and type of vehicle you drive when you choose your limits.

Insurers will not sell you a policy that is less than the minimum requirements for your state. However, that doesn’t mean that you should mistakenly opt for auto insurance limits based on the minimum amount required. Depending on the size and type of vehicle you drive, the bare minimum may not be enough to fully cover you if you should have an auto accident. For example, let’s say that you’ve selected the $10,000 minimum property damage amount set by your state, you drive an SUV or large truck, and you hit and cause $22,000 in damage to a brand new Mercedes. Since you’re only covered for $10,000, you will pay the remaining $12,000 out of your pocket.

2. Be forthcoming and honest with insurers.

Even if you think it won’t be favorable on your premiums, it’s extremely important for you to just tell it like it is when you’re asked about your driving history. You can choose to be less than truthful regarding your moving violations and auto accidents, but you won’t be given an accurate quote. This wastes both your time and the insurers, as all insurers will check your driving record themselves and make adjustments to the quote based on your actual driving record. Be honest from the start and you will save time by getting accurate quotes that you’ll be able to compare side-by-side.

3. Look at the whole picture.

It’s tempting to opt for the insurer offering the lowest rate, but cheapest isn’t always the best deal. Know exactly what you’re getting for your insurance dollars and pay careful attention to the fine print in the contract. Unusually low rates have a catch. Would you rather pay low rates with an insurer offering substandard service, or slightly higher rates with an insurer offering an attractive package and reliable 24/7 customer service? Are options on repairs and parts an important option to have? Is it price or convenience that’s at the top of your priorities? These are questions only you can answer in choosing your insurer.

4. Don’t waste insurance dollars on duplicate coverage.

Look at all your auto coverages and ensure options aren’t being paid for twice. For example, AAA members most likely have their towing costs already covered and wouldn’t need a policy with roadside assistance.

Finding the best auto insurance policy isn’t always fun or easy. However, by following a few rules of thumb during the selection process, you can certainly save yourself a lot of money, frustration, time, and regret.

Fire Insurance Coverage: Know What You Have and Understand How it Works

The extensive and costly damage caused by California wildfires over the last couple of years should serve as a reminder on why it’s vital to both know how you should proceed after finding yourself victim to a large-scale fire, and fully understand your fire insurance coverage before you need to call upon it.

Once the immediate danger of a fire is over, you will need to assess the situation and the resulting ramifications. If you find that the disaster has created large-scale destruction, then just the number of people impacted and the vastness of the destruction itself will most likely impact the cost and tempo of your rebuild. For example, available building materials will be depleted quickly and additional materials will be in high demand. Likewise, contractors will be available in limited numbers and be in high demand. The result – premium prices for supplies and contractors.

Given the above circumstances, it’s necessary for you to insist your insurance adjuster and contractor work together and reach an agreed price for your reconstruction. You might ask both parties to meet with you simultaneously at your home during the cost estimate of the reconstruction.

In addition to knowing how to proceed after a disaster, you also need to fully understand your insurance coverage. Do you know how much of the damage your insurance would cover?

If you opted to insure your home for 100% of its estimated replacement cost when you purchased your policy, then it should pay the cost to rebuild up to that estimated replacement cost. You can add at least an additional 25% if you opted for an extended replacement cost endorsement in your policy. Furthermore, a supplemental building ordinance endorsement in your policy will cover between 10% and 100% of the cost to bring your home up to code if there have been any new or changed construction codes since it was first constructed.

You will need to make an inventory of your home’s contents that were destroyed in the fire to receive compensation from your insurer. To make the settlement process go quickly and smoothly, make sure to provide the description; total cost of replacement, including sales tax; life expectancy; and age of each item. Don’t forget to verify the replacement cost by including the retailer’s name and phone number and salesperson’s name -or- the web addresses for any prices you obtained online. The average percentage of depreciation can be figured by dividing the age of the item by its average life expectancy. You will be paid the withheld depreciation difference on your destroyed items when you replace them with comparables if your policy only covers replacement value.

Additional living expenses, such as rent or a comparable furnished living area, may also be paid under your policy. Of course, this will be minus those expenses, such as mortgage payments and utilities, not directly resulting from your home having been destroyed. Coverage is usually a maximum of 20% of your home’s insurance limit and will generally continue for 12 months or less. Even if your home isn’t damaged, your living expenses may still be covered if your home is uninhabitable by government order. This coverage will end when the government allows you to return to your home.

The right coverage can ease some of the trauma a fire disaster causes to your life. However, you must know what you have and how it works to determine if you have the right insurance coverage in place to met your needs.

The Impact of Moving Violations and Driver’s License Points on Your Insurance Premiums

Americans love to hear about point systems. After all, many involve us earning desirable rewards, discounts, and freebies. However, not all point systems are about earning something desirable.

In most states, you earn points on your driver’s license after being ticketed for moving violations like running a red light or stop sign, illegal u-turns, unsafe lane changes, and so forth. While no driver relishes the thought of paying moving violation tickets, the financial implications are actually much broader when the points accumulate. This could be in the form of higher insurance premiums or even the suspension of your driving privileges. The details of the point system vary by state. For example, some states assess points to drivers that are at fault in an auto accident. That said, most point systems will assess points one of two ways:

1. One point per basic moving violation, with two points being assessed for speeding violations that involve the driver substantially exceeding the posted speed limit. Drivers assessed either eight points over three years, six points over two years, or four points over one year will have their license suspended.

2. Two points for incidences like slightly breaking the speed limit, an illegal turn, or other minor driving violation. Drivers with more serious moving violations, such as running a red light or stop sign, will be assessed three to five points. Drivers that are assessed 12 points within a three year period will have their license suspended.

Should you get a moving violation ticket, you’ll want to look for the vehicle code violation number on the front of your ticket and contact your state department of motor vehicles. Be sure to ask the number of points, if any, the violation carries; how many points you already have; and how many points will result in a license suspension.

These points can cause your insurance premiums to increase by 20% to 30%. Most insurers will regularly review the driving records for all their customers. Depending on your insurer’s policy and state’s laws, some insurers may be able to raise your premiums for just a single point. Most insurers will allow one moving violation every couple of years before they raise your premiums, but check with your insurer to determine their specific policy.

Can I Avoid/Remove Points?

You can contest the ticket. This may be especially prudent if your points are nearly suspension levels. Keep in mind that contesting the ticket is an iffy proposition in that avoiding the point will depend on you being successful.

An option that offers more certainty in avoiding the point is paying the ticket and attending traffic school. However, some jurisdictions will not allow anyone ticketed for driving fifteen m.p.h. or more over the speed limit to attend traffic school. If you’re eligible, then you may need to attend anywhere from once a year to once every two years, depending on your jurisdiction. Some states will require a court appearance or visit to the court’s clerk to enroll in the class, while other traffic schools are completed online. Some traffic schools give you the basic information with a splash of humor to make it less boring, while others may require you to sit through eight hours of lecture and films on gruesome accidents. In any case, it shouldn’t be too big a sacrifice when you consider the alternative higher insurance premiums from the point(s) going on your record.

Driver education courses, such as a defensive driving class, can help you remove existing points from your license. The department of motor vehicles for your state can give you a listing of applicable options.

In closing, insurers typically either avoid risk or charge exorbitant premiums to take it on. Having a number of moving violations is a strong indicator that you have habits that could lead to costly accidents and claims, and would therefore be a risk to insure. Most insurers do understand that humans err occasionally, but you’ll have the best chance at keeping your rates down by avoiding traffic violations altogether.

Home Buyers: Make Securing Homeowner’s Insurance a Top Priority

At long last, your loan package has been approved, your closing date is just days away, everything you own has been packed, and all that remains is a quick call to your insurance agent to line up a homeowner’s policy. That’s when the bad dream can begin. 

Your agent may inform you that your new home is uninsurable because of a history of insurance claims filed by the previous owner. Despite home inspections and various required real estate disclosures, this could happen to you.

Securing homeowner’s insurance used to be one of the last tasks a buyer undertook before closing. In reality, it should be one of the first.

Before issuing a policy, insurers always check a property’s claims history. Water damage claims are red flags, of course, but homeowners can also set off alarms simply by inquiring about their coverage, without ever filing a claim.

Most insurance companies research past claims through a shared database called CLUE, which stands for Comprehensive Loss Underwriting Exchange. When you apply for homeowner’s insurance, the insurer will request a CLUE report to ascertain whether you or the seller have filed any claims during the past five years. Even if you currently own a home and have a squeaky-clean claims history, if you buy a house with multiple claims filed against it, you may not be able to obtain insurance coverage.

Regrettably, you cannot order a CLUE report if you are not the homeowner. However, you can ask the seller to order a copy of the report as a contingency to your offer.

If you are ever denied insurance because of past claims, you can request a free copy of your CLUE report. In the event of a dispute with your insurer, you have the right to ask that your account of the events be included in the report. If you are simply curious about your home’s history, you can order a copy from ChoicePoint, the company that manages the CLUE database.

It pays to spend the time and effort to educate yourself about homeowner’s insurance when seeking affordable coverage. Consider the following ideas: 

  • Learn the rules regarding homeowner’s insurance renewals in your state. Regulators of some states exercise   control over when an insurer can refuse to renew your coverage.
  • Pay for small losses yourself. Insurers take notice of customers submitting frequent small claims.
  • Think twice before calling your agent or insurance company. When you place a call, the insurer opens a claims file on you regardless of whether you actually file a claim.
  • Increase your deductible and consolidate insurers. To reduce your homeowner’s insurance premium, consider raising your deductible. Also, most insurers offer discounts if you insure both your car and home with them.
  • Examine your credit record. In addition to your past claims history, insurers often use your credit score to determine whether to issue you a policy.

Don’t Get Stuck Paying for Costly Storm Clean-Ups

Following a damaging fire, thunderstorm, hurricane, tornado, ice storm, or other disaster, one of your first concerns will be the structural damage your home has suffered and how to repair and restore it back to its original condition. In most cases, your homeowner’s insurance policy will pay for the labor and materials to repair your home and for you to temporarily live somewhere else while your home is uninhabitable.

But, what about the mess that the disaster has left behind? You may have anything from destroyed furniture and appliances to soaking wet insulation and lumber that must be cleaned up and disposed of somehow. Of course, this certainly isn’t an expense or a task that a homeowner wants to be worried with after a disaster. The good news is that your insurance policy may also pay for the expensive cleanup and disposal process.

A typical insurance policy will cover a reasonable expense for you to remove the debris from your property, but the damage must be caused by one of the causes of loss that your insurance policy insurers against. For example, let’s say your insurance policy covers fire and a fire has damaged your master bedroom, closet, and entry hallway. In the process, your clothes and bedroom furniture were also destroyed by a combination of fire, smoke, and water. Since your insurance policy covers fire, it will also pay for all your belongings and building materials destroyed by the fire to be removed from your property. On the other hand, do keep in mind that most typical insurance policies don’t cover losses caused by earthquakes. Depending on your insurer, this coverage may be added for an additional premium.

The cost of debris removal is included in the insurance amount covering your home, but if the amount of home damage and debris removal exceeds what your policy will pay, most policies will usually provide an additional amount for you to remove the debris.

A typical policy will also cover the cost to remove fallen trees on your property. The amount is usually up to $1,000 for multiple fallen trees and up to $500 for a single fallen tree. However, the coverage only applies with certain circumstances. Removal of fallen trees owned by you, the policyholder, are usually covered if they fell as a result of a windstorm; the weight of snow, sleet, or ice; or a hail storm. Removal of a neighbor’s tree that has fallen on your property is usually covered if it fell from fire; wind and hailstorms; vandalism; the weight of snow, sleet, or ice; and such. The fallen tree must have damaged a structure that is already covered by your policy, such as your home, fence, garage, or porch, for the coverage to pay for the removal. There are a few limited exceptions to this rule, such as if the fallen tree is blocking the driveway to the home or a handicapped person’s accesses to the residence. Otherwise, a fallen tree on your property will be your financial responsibility to remove.

Keep in mind that homeowner’s insurance policies can vary from insurer to insurer. Be sure to review your policy carefully to make certain you have the extent and amount of coverage you need. Don’t forget to confirm that you have enough insurance to cover both repairs and removal. If any of the provisions in your policy aren’t perfectly clear to you, then you should ask your insurance agent to thoroughly explain it. If your agent can’t explain your policy to your understanding, then it might be time to look elsewhere for coverage.

Should Your Collision Coverage be Dropped?

If you are like most new car owners, then you probably paid the extra money to include the protection offered by collision coverage in your insurance policy. However, as your vehicle has now begun to age and depreciate, you’ve likely started to ponder if and when you should drop the pricey collision coverage that’s running up your insurance bill.

There’s not a one-size-fits-all answer to this question. After all, everyone won’t have the same comfort level on risk or the same insurance needs and wants. However, there are some factors that you can consider to help you determine if and when you should drop your collision coverage:

1. Determine the value of your vehicle.

The first thing you should do when deciding if you should drop your collision insurance is determine approximately how much your car is worth. There are several ways to go about this, but one of the best methods is by getting an actual cash value (ACV) estimate. Kelley Blue Book and N.A.D.A. guides are excellent sources. However, you might want to call your insurance agent to find out which ACV source is used by their claims department, as ACV figures will often vary slightly from source to source. Do remember to factor in the wear and tear on your vehicle. Dents, scratches, upholstery holes or tears, and fading or chipping paint are just a few of the factors that can lower your vehicle’s ACV.

2. Weigh your potential risk against the cost of your collision coverage.

Although your collision coverage premiums will generally decrease slightly as your vehicle ages, you still need to make sure that the cost of your collision coverage remains a worthy expense to cover damage that may or may not occur to your vehicle. Weigh what you’re paying every year for collision coverage against the potential risk of not having it. The ACV of your vehicle should also be a factor in your decision process. For example, the new car you bought several years ago may only be worth $3,000 dollars today, and if you’re paying $600 per year for your collision coverage, then you’re paying 20% of what your car is worth for just this one coverage.

3. What’s your deductible?

Your deductible is another important factor to consider. Most drivers usually select a collision coverage deductible between $250 and $1,000 dollars. You might have even selected a higher deductible to keep your premiums lower. In any case, you need to remember that your deductible is the amount of money you’ve agreed to pay out-of-pocket before your insurance coverage takes effect. You need to decide if the combination of your collision coverage premiums and the deductible amount you’d pay after an accident are still reasonable costs for the value of your vehicle. For example, you’d be looking at a $1,600 out-of-pocket cost for the year for your damaged vehicle if you have a $1,000 deductible and you’re paying $600 for your annual collision premiums. If your vehicle’s value is anywhere close to what you’d pay out-of-pocket, then you can see where you’re likely wasting your insurance dollars. On the other hand, if your vehicle would cost a great deal more to replace or repair than what you pay out-of-pocket with your collision coverage, then it’s likely worth the expense.

4. Can you live without the perks of your collision coverage policy?

You’ll need to decide how valuable the perks of your collision coverage policy are to you. For example, your collision coverage policy might offer a free rental following an accident. Without the collision coverage providing this, could you rent a car on your own or find alternative transportation?

The bottom line is that there’s no cut-and-dried answer about dropping your collision insurance. Consider the above points and how they apply to your unique situation before making your decision. You can always schedule an appointment with your insurance agent if you have any doubts, concerns, or questions during your decision process.

The CLUE Report: Don’t Be Left Clueless on Insuring Your New Home

If you don’t properly educate yourself on the home buying process, it can very well be like walking into a minefield. Most buyers at least have a novice understanding on areas like their credit, pre-approval, a home inspection, and so forth. However, most buyers don’t have a clue what a CLUE report is, much less what an important element it is when buying and insuring a new home. Considering that around 90% of all insurers underwriting homeowner’s insurance subscribe to the CLUE service, it’s certainly something that you should know about.

What Is CLUE?

The Comprehensive Loss Underwriting Exchange, or CLUE, is a database that allows auto and homeowner insurers to exchange information about property loss claims. Unless your state specifically requires it, prior notification isn’t required before your information goes into the system. ChoicePoint, one of the largest personal consumer data compilers in the United States, maintains the database. Property loss claims and even inquiries into coverage are entered into the CLUE database.

Your insurer can access the CLUE database when you apply for homeowner’s insurance on your new home. The system will allow them to see any past claims that previous owners filed on the house. It also allows them to see past inquiries on damages, even if there wasn’t a claim filed. You could find yourself in an insurance nightmare if a bad CLUE report causes insurers to be unwilling to provide you with coverage. Furthermore, it’s not just your new home under scrutiny. Old claims that you made on your previous home are also available through the CLUE database and can affect the cost and/or availability of homeowner’s insurance on your new home.

What Do I Do About CLUE?

The best thing you can do to keep CLUE from affecting the cost of your homeowner’s insurance and/or your ability to obtain insurance is to know your rights. Just as with any other credit reports, CLUE reports fall under the Fair Credit Reporting Act, or FCRA. This means that you’re entitled to certain rights, including the following:

* Notification if the insurer intends any adverse actions, such as increasing the cost of your new policy’s premiums or denying your new policy, based on the information they obtained from your CLUE report.

* Get a copy of your insurance scores and the actual CLUE report. The FACT Act is a recent amendment to the FCRA that entitles you to one free copy of your CLUE report per year. Aside from your one free copy, you’re entitled to get another copy of your CLUE report if you’ve had your policy canceled, coverage limited, premiums increased, or an application for insurance denied.

* Dispute incomplete information or inaccuracies within the CLUE report. You can do this at the ChoicePoint website. ChoicePoint is required by law to investigate your dispute. If you aren’t satisfied with the investigation by ChoicePoint, you can file a statement. This statement must be attached to all future reports.

In summary, you can see how a CLUE report can substantially impact your home purchase. Do keep in mind that you can’t obtain a CLUE report on a home that you don’t own yet. This means that you will need to ask your real estate agent to obtain a CLUE report for any property you’re considering purchasing.

Save Money by Avoiding These Costly Insurance Mistakes

When it comes to purchasing insurance, fear is an important motivator. We are justified in our worries about protecting assets such as homes and automobiles, and we buy insurance to protect our financial integrity. Despite our best efforts, sometimes our insurance does not offer full financial protection. This is not necessarily because there is a problem with the insurance policy; it can be a result of human failure. When purchasing an insurance policy, many people fail to look at the true level of coverage that is necessary to restore assets to their pre-disaster conditions.

Below are five common insurance mistakes to avoid at all costs:

*Trying to do it all on your own – Shopping for insurance is complicated, and it is best to seek professional advice. While it is fine to use the Internet to educate yourself, you should ultimately work with an independent agent who can offer multiple options for your consideration. An agent will help you untangle the complex issues involved in purchasing the proper amount of coverage to meet your needs.

*Buying into the hype – If it sounds too good to be true, it probably is. Where insurance is concerned, you often get what you pay for. A company that promises large discounts is most likely offering less coverage.

*Slicing it too thin– In a difficult economy, many people try to cut their living expenses to the bone. While it may be prudent to cut out some of the “extras” we enjoy such as eating out and going to the movies, reducing an insurance policy is risky. If and when disaster strikes, you’ll be glad you didn’t cut back on insurance premiums, which can result in thousands of dollars of uncovered damages.

*Neglecting regular protection reviews – Consider how much your life can change in a short amount of time. For instance, has the value of your home gone up or down in the last few years? Has a new car been purchased or has a teenager just gotten their driver’s license? Has an adult child finished their higher education? These are just a few of the changes that can cause either an overlap or gap in your insurance protection.

*Restricting your options – There are quite a few insurance companies that advertise a “one size fits all” approach to insurance. In some cases, these companies do not have your best interests at heart. It is best to consider multiple options, rather than limiting yourself to one choice.

Five Things You Should Know about Your Condo Association’s Insurance

A condominium unit-owner usually has her own insurance policy that covers her for loss of her personal belongings, parts of the building that the condominium agreement makes her responsible for insuring, the additional cost of living elsewhere after a fire damages her unit, and her legal liability for injuries or damages suffered by others. In turn, the condominium association has its own policy, which may cause some unit-owners to wonder why they have to buy separate insurance. Doesn’t the association’s insurance cover the same things that her policy does? Depending on the property at issue, the answer is maybe yes and maybe no. Insurance companies designed the two types of policies to complement each other in some cases and to overlap in others. Here are five things unit-owners should know about their associations’ insurance.

The association’s policy covers the building. Depending on the wording in the contract between the association and the unit-owner, the word “building” may mean several different things. If the contract requires the association to insure them, “building” can include fixtures, improvements and alterations that are part of the building and that are within a unit. For example, if a unit-owner installs new track lighting or an attached island in the kitchen, the association’s insurance would cover the cost of repairing or replacing them after a loss. Also if the contract requires, the association’s insurance will cover various appliances such as refrigerators, stoves and dishwashers.

The association’s policy covers personal property “owned indivisibly by all unit-owners.” Furniture in the building’s lobby, hand carts and other moving devices, and exercise equipment in an exercise room available to all residents are examples of the types of property that the association’s policy insures.

The association’s policy does not cover the unit-owner’s personal property. A unit-owner must buy her own insurance to cover her furniture, electronics, clothing and other belongings. Assume, for example, that the condominium contract requires the association to insure appliances. If fire damages a unit-owner’s space, the association’s insurance will cover the refrigerator but not the sofa. The unit-owner’s policy will cover the sofa. The association’s policy also does not cover an individual unit-owner’s legal liability for injuries or damages suffered by others. The unit-owner needs her own insurance to provide for her legal defense and to pay any judgments.

It is possible that both policies may apply to the same item of property. In the above example, both the association’s and unit-owner’s policies may cover the refrigerator. In that situation, the association’s policy will apply first; if it does not completely pay for the repair or replacement, the unit-owner’s policy will cover the balance. For example, if the cost of replacing the refrigerator is $5,000, and for some reason the association’s policy covers only $4,000, the unit-owner’s policy will pay the other $1,000 (the example doesn’t include deductibles that may apply.)

The association’s insurance company will not try to get its money back from a unit-owner. Suppose a unit-owner left a candle burning overnight and the unwatched candle caused a fire that damaged part of the building. Many types of insurance policies would allow the insurance company to pay its customer for the damage, then try to recover its payment from the person who caused the damage. However, a condominium association policy specifically states that the company waives its right to recover from a unit-owner. It still has the right to seek recovery from a person who is not a unit-owner and is responsible for the damage.

While comprehensive, the association’s policy is no substitute for a unit-owner’s own insurance. Unit-owners should work with professional insurance agents to ensure that they have the proper coverage.

Insurance Advice for after the Storm

Severe weather can come in many shapes and sizes.  It may take the form of heavy rain or snow, strong winds, thunder and lightning, and/or flooding.   When it comes to protecting your home and auto, you must prepare for the worst.  If damaging weather does come your way, here are some suggestions on what to do when the storm has passed:

1.   Contact your agent or insurance company as soon as possible to arrange a visit from an adjuster.

2.   Take photographs of any damage before doing repairs to your home.  Also, make an itemized list of all damage sustained during the storm and its aftermath.

3.   Protect your home from further damage by making only temporary repairs until your insurance company advises you further. Save all receipts for materials purchased for repairs.

4. Exercise caution when beginning repairs and clean up. Be careful with power tools such as chainsaws, and use proper safety equipment like safety helmets and/or glasses.

5.   Do not have permanent repairs made until your insurance company has inspected the property and you have reached an agreement on the repair costs.

6.   If necessary, rent temporary shelter. If your home is uninhabitable, most policies pay additional living expenses while it is being repaired. Before renting temporary shelter, check with your insurance company or agent to determine what expenses will be reimbursed.

7.   Unless you have purchased extra coverage, food lost in a power outage is most likely not covered. Consider buying an endorsement to cover future food losses.

8. Damages to appliances from a power surge are typically covered; however some electronic components may not be. Check with your agent to see what your policy covers.

9.   Most damage to your home or surrounding structures from fallen trees is covered. Check with your agent or company before calling a tree removal service; those costs may be covered, too.

10.   Damage to your vehicles from fallen trees or debris may be covered by your auto policy. Check with your agent.

Don’t Let Obsolete Driving Techniques Put You in Harm’s Way

It can be hard to hear your kids call your beloved television show reruns, choice of music, hairstyle, and/or clothes old school, but you’ll have to remember that you probably didn’t exactly jive with your parent’s choices either. While Elvis’s Rubbernecking may forever play in your head and never become dated in your eyes, you should realize that your driving techniques may be one dated area truly in need of an update. The advances made to automotive technology and in safety research have likely made most of what you learned as a new driver not only dated, but dangerous.

Here are six tips to bring your driving skills up-to-date and avoid jeopardizing your safety, as well as those around you.

1. Seat position – airbags have made seat positioning an important safety issue for drivers and passengers. When airbags were first placed in vehicles, they caused some serious injuries to drivers seated too close during a deployment. Even modern de-powered airbags can deploy at 150 mph and cause serious injuries if the driver isn’t seated at a safe distance. Position your seat 10-12 inches from the steering wheel.

2. Hand position – you probably learned to keep your hands palm-side down at 10 o’clock and 12 o’clock as you grip the steering wheel. Today, it’s recommended that your left hand be at 8 o’clock and your right hand be at 4 o’clock to help prevent your arms from tiring during prolonged driving. It’s also recommended to place your thumbs atop the steering wheel and wrap your fingers underneath the wheel.

3. Wheel turns – you probably learned the hand-over-hand method of turning the steering wheel. It’s now recommended to use a push-pull-slide method where one hand pushes the wheel up as the other hand pulls it down. Neither forearm will cross the steering wheel hub, and neither hand will leave the steering wheel. The upward pushing hand continues to push as it slides back to it’s original positioning. Meanwhile, the other hand is sliding back as it continues to pull. The driving technique is aimed at reducing the risk of hitting yourself in the face if your airbag were to deploy.

4. Normal breaking – it’s been discovered that you have the greatest control over breaking when you keep your heel on the floorboard and normally break with the toes. Ensure that you judge stopping distances accurately in order to use the same degree of braking pressure from the time you first break until the vehicle actually comes to a complete stop.

5. Breaking on slick surfaces – leave the transmission in drive and remove your foot from the accelerator if you’re breaking on a slick surface area. The drag of engine compression will help the vehicle to slow down quicker.

6. Emergency breaking – anti-lock breaking systems, or ABS, mean that you no longer need to pump the breaks. During emergency breaking, just maintain a firm, steady pressure on the brake pedal. Remember to steer in the direction you need the vehicle to go.

Don’t Let Driving Emergencies Take You by Surprise

There are two golden rules to remember when driving – expect the unexpected and be ready for anything. Many agencies, such as the National Safety Council, have compiled listings of the most common road emergencies and the ways that drivers can best handle them safely. Let’s look at six of them:

1. Blown Tire

Don’t over-steer, but do maintain a firm, steady grip on the wheel to keep the vehicle going in the desired direction until you’re able to slow it down. Keep in mind that a front blown tire will cause the vehicle to pull toward the blowout’s side, while a rear blown tire will cause the vehicle’s rear end to weave. Apply your brakes smoothly and slowly enough that you can pull the car to the side of the road at a safe speed. Never immediately swerve to the side of the road or jam on the brakes as you could lose control.

2. Blown / Malfunctioning Headlights

Slowly brake and come to a stop on the right shoulder. Try to get as far away from passing traffic as possible. Turn on your emergency flashers, if they’re still operational, and place road hazard markers or flares at least 300 feet from the rear of your vehicle. If you don’t have a cell phone to call for roadside assistance, then you can open the hood and try to scrape the battery cable’s lead terminal posts and the inside of connector lugs. This may provide a better connection and enough intermittent light to make it to a phone. As a last resort, you could use your emergency flashers as an intermittent light source if they’re on a separate circuit.

3. Skidding Vehicle

Remove your foot from the gas. Steer into the direction of the skid until you feel your rear wheels get traction again. Now, straighten the wheel. Never jam on the brakes or over-steer during the skid. To avoid skidding to one side when you need to come to a sudden stop, you can rapidly jam and immediately release the brakes. For those with anti-lock brakes, keep your foot on the brake and continue firm pressure while steering.

4. Engine Failure

Turn your right signal on and let the vehicle’s momentum carry you to the shoulder. If this isn’t a possibility, then remain in your lane or along the right side. Pump your brakes and turn your emergency flashers on to let other drivers know you’re in trouble. Once you’ve come to a stop, you’ll ideally exit the vehicle on the side without traffic flow. You can alert other vehicles by placing reflectors or flares; keeping your taillights on; and placing a white cloth around your handle, spoiler, or antenna. Use your cell phone to call for help or flag down a law officer. There may be an emergency call box on long bridges.

5. Stuck Accelerator

Turn off the ignition and apply the brakes. Keep in mind that your power assist feature will no longer work and braking and steering will be more difficult. Never lean down to handle the gas pedal, but you can try to lift the pedal with your toe if the pedal and throttle linkage have a positive connection.

6. Brake Failure

If your brakes still functioning properly, but you have a system light indicating a brake failure, then you should slowly take the most level route to a service station or mechanic shop.

If your breaks don’t feel normal, but are still offering some resistance, then pump them rapidly. This action could build enough hydraulic pressure to slow your vehicle down. You might be lucky enough to have a clear road and be able to coast to a stop or roll and apply your parking brake. Use your horn and flash your lights to alert pedestrians and other vehicles. You might need to carefully sideswipe hedges, snow banks, parked cars, and/or guardrails to help your vehicle stop if your on a downward, steep roadway. Never swerve to the left of a vehicle in your path unless it’s your only choice. If you’re headed straight for another vehicle, firmly press the brakes; head for a shoulder, ditch, or open ground on the right side; and try to alert others with your horn.

Driving emergencies are hard to think through as they’re happening. For the best outcome possible, you’ll need to know what the potential emergencies are, know how to safely deal with them ahead of time, and make the subjects part of your family’s safety discussions.

On-line Insurance as Opposed to an Insurance Agency: What’s the Difference?

Just as one may use a CPA to prepare their income taxes or an attorney to help them with their estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need professional advice during the process. Of course, everyone will have different needs and circumstances surrounding their purchase, and this is why an insurance professional’s advice can be an invaluable asset.

If you’re debating buying insurance on-line versus through insurance agency, then you should ask yourself a couple of questions:

* Do I know for certain what specific coverage(s) I need?
* Do I know all the questions I should be asking before making an insurance purchase?
* Will the on-line purchase truly result in both time and money savings?
* Can I obtain all my insurance policies through a single on-line insurance provider?
* Can I call the on-line insurance provider and receive insurance advice when needed?
* Is the personal information I’ll be providing kept secure?

You want to know exactly what coverage you need and that the insurance you’re purchasing meets those needs adequately. Insurance can vary greatly from state to state, meaning that it’s equally important for your insurance source to be knowledgeable. You certainly don’t want to purchase an insurance policy and discover down the road that it doesn’t protect you during a claim. Making an insurance purchase with an on-line company that fails to connect professional insurance advice to your personal insurance needs can leave you at risk of being without the coverage you need. You shouldn’t be the only one taking time to ask questions. The on-line insurance company must ask you questions in order to ensure they’re recommending the appropriate coverage(s).

One of the best ways to determine if you’re really saving money by purchasing your insurance on-line is to get a quote of your policy on-line. Do keep in mind that most on-line companies don’t offer multi-policy discounts, such as for home and auto. This is because most offer homeowner’s insurance through a different company, if at all. On the other hand, an insurance agency typically allows you to select coverage from several different insurance companies and can help you determine which company will offer you the most favorable rates for your particular risk type. Another consideration is that insurance agencies typically have a much more stringent screening process in relation to these insurance companies.

Unlike insurance agencies, many on-line companies will either not have the services that you need readily available or have a system that you must sign into and learn to navigate before being able to obtain what you need. One such example would be obtaining insurance documents, such as a certificate of insurance. Let’s say you’re using your vehicle to take your child and some of his/her classmates on a field trip. You learn the day of the trip that you must have evidence of your insurance before going. If you use an insurance agency, the documented can be faxed or emailed to the school or your smart phone with a quick and simple call. A second example would be how an insurance agency can help you meet some very challenging needs associated with needing a hard to place insurance policy. Despite the trend for on-line shopping, insurance agencies continue to thrive because of the solid reputations they build from customer satisfaction.

Insurance is often required – auto insurance by your employer, homeowner’s insurance by your mortgage lender, or even coverage(s) an owner of a space you’re trying to rent for a professional or personal function may require of you. Such requirements can often be like trying to understand the tax code. If you use an insurance agency, then you can email or fax any insurance requirements to your insurance agent for quick and efficient resolution.

Carefully consider how you go about purchasing your insurance. Surprises are the last things you want when it comes to the vital protection of insurance. If you have any uncertainty about what you’re really getting with on-line insurance, then you might want to rethink your decision. If you’d like to avoid the one-size-fits-all approach of on-line insurance and receive the knowledge and expertise of an insurance agent, then you may consider opting for a professional, independent agent to prepare your insurance policy.

Are Your Valuable Collectibles and Antiques Adequately Protected?

Many Americans have a passion for collecting costly antiquities, while others may simple inherent some valuable antiques from their relatives. Either way, these antiques are often not adequately protected under a typical homeowner’s insurance policy. Being inadequately insured could mean significant financial and emotional loss if something were to happen to one of your antiques.

As far as antiques go, a standard homeowner’s insurance policy may very likely include restrictive coverage and limits and have a valuation only on the actual cash value. Before you mistakenly assume that adding a personal property replacement cost endorsement to your homeowner’s policy will provide you with coverage, you should realize that the endorsement lists several ineligible properties, including antiques, paintings, art, and memorabilia. There are also several coverage restrictions, such as excluding coverage if the antique is accidentally scratched or broken.

Here are six tips that may help you better protect your valuable antiques and collectibles:

1. Make an inventory of all your antiques and otherwise valuable collectibles. Take pictures and videos of each item, making sure to capture the item from all angles.

2. Ensure that your antiques and collectibles are appropriately stored and adequately secured.

3. For items of a lesser value, a general value assessment can be obtained for free online if you have a good photo and description for the antique or fine art dealer. For extensive or high-value collections, you certainly need to consider contacting an experienced antique appraiser. Most appraisers will need to inspect high-value pieces in person. The appraisal should include the replacement value, auction value, a description, and any comments the appraiser has about the item. Of course, this will most often involve a fee-for-service. Make sure the appraisal is done as per the requirements and codes of the American Appraisers Association -and- American Society of Appraisers.

4. Common, less valuable objects can usually be valuated online with the use of internet auction sites like eBay. This can give you a good market value for an item. Make sure you note both the asking and closing price of the item, but remember that the closing price will give you the best idea of the true value of the item.

5. Schedule an appointment with your insurance agent to determine if your existing coverage adequately covers and protects your antiques and collectibles, and, if not, what coverages you may need. Be sure to bring your inventory, photos and videos, and appraisals to the appointment.

6. Ask your insurance agent about a personal inland marine policy or endorsement, which can be added to your existing homeowner’s insurance policy to schedule your items on an agreed value based on the item’s appraisal. Although the above may also contain an exclusion for breakage, the exclusion can usually be eliminated for an extra cost.

Are Your Safe Driving Skills Up to Par?

As if we didn’t already have enough distractions, on-board GPS systems, portable DVD players, iPods, and Smartphones have created more driving distractions than ever before. And, it’s certainly not atypical for a vehicle to simultaneously have ringing phones, cartoons blaring from the backseat, a GPS incessantly yelping orders out, and fast-food fries flying around like ninja weopons.

Even though elements like the above have been proven to make it nearly impossible for a driver to devote their full attention to the road at all times, many drivers still think they’re perfectly safe drivers. Here’s a simple yes -or- no quiz that you should take to really determine just how safe you are when driving with distractions:

1. So long as I’m not watching, it’s okay for passengers to watch a movie on the vehicle’s in-dash video screen?

The answer is no. Not only do most front seat, in-dash video screens generally have a feature that prevents it from showing entertainment or business video when the car is moving, but it would also be completely unsafe to do so since it would inevitably catch the driver’s peripheral vision and distract them. Furthermore, many state laws regulate the placement and use of on-board video screens.

2. Have there been any criminal cases alleging electronic devices were the causative factor in vehicle accidents?

The answer is yes. One example would be a 2004 case that took place in Alaska. The driver was allegedly watching something on his DVD player when he struck another vehicle and killed two people. Although the driver claimed he was only adjusting his CD player, he was charged with second-degree murder on the premise that he engaged in conduct showing an indifference to human life.

3. In-dash monitors for rear-view camera and navigation purposes can be installed in the front seat?

The answer is yes. If the device has the feature that prevents it from showing entertainment and business video, then it can be installed and used in the vehicle’s front seat.

4. It’s okay to drive as you eat or drink?

The answer is no. While driving as you drink coffee or eat a granola bar usually isn’t the distraction that watching a movie or text messaging is, it’s still an unsafe driving practice. The bottom line is that doing and thinking about anything aside from driving can distract you from the road and lead you to look away, remove your hands from the steering wheel, or become mentally preoccupied.

5. Does driver distraction cause very many accidents?

The answer is yes. Over 6 million crashes, 3 million crash-related injuries, and 42,000 crash-related deaths occur each year in the U.S., of which driver distraction accounts for 1.2 million to 1.8 million, or roughly 20-30 percent.

6. Do federal laws govern the use of mobile devices like a GPS in moving vehicles?

The answer is no. In some states, there are state laws that prohibit the use of hand-held cell phones in moving vehicles, but there aren’t any federal laws regulating the use of mobile devices in a moving vehicles.

7. Can the National Highway Traffic Safety Administration (NHTSA) regulate cell phone usage in moving vehicles?

The answer is no. Cell phone laws are enacted at the state or local levels. However, NHTSA is able to regulate the use of motor vehicle equipment and devices.

8. Are lawmakers concerned with vehicle crashes related to driver distraction?

The answer is yes. Over the last decade, several states have already passed or presented legislation related to driver distraction and vehicle crashes, and the number of states looking into such laws grow every day.

9. Do any states totally ban hand-held cell phone use while driving?

The answer is yes. Nine states, including California, Connecticut, Washington, New York, New Jersey, and Utah, prohibit all drivers from using hand-held cell phones while driving. Additionally, 30 states and the District of Columbia ban novice drivers from using both hands-free and hand-held cell phones.

10. Can your employer be held liable if you’re using a cell phone and crash into someone or something?

The answer is yes. Your employer can be held liable in a court of law. Under respondeat superior, an employer can be held liable in civil court for employee acts committed within the course of employment.

How many did you get right? Maybe you’ve learned a few new facts, or maybe you gained a new respect for what you already knew. Either way, it’s time to put down the food, turn off that cell phone, and start keeping your mind and body focused on the road ahead of you. 

Tips to Prevent and Combat Residential Electrical Fires

Nearly every home in America has a powerful and primed source of fire at this very moment, and it’s called electricity. From overloaded outlets to dated or defective wiring, there’s likely to be at least one electrical fire hazard in some corner of your home.

The United States Consumer Product Safety Commission reports that faulty electrical wiring in residential homes cause over 40,000 fires each year. Over the last decade, defective electrical wiring has caused an average of 350 deaths per year.

According to the National Electrical Safety Foundation, homeowners can use the following fire prevention tips to help create a fire-proof home electrical system:

* Use child-proof outlets to prevent small children from sticking an object into the outlets.

* Do periodic checks of all electrical cords, replacing any damaged or frayed ones, untangling knotted cords, and ensuring that none have been placed under carpets or rugs.

* Never overload outlets or extension cords. Although not always present, it could be a sign of an overloaded circuit if your appliances aren’t working up to par, the television has a poor picture, the HVAC isn’t performing properly, and/or the lights are dimming on their own. You might also ask an electrician to tell you what the maximum capacities are for the circuits in your home. By knowing this, you can add up the wattage of all the electrical devices plugged into each circuit and be able to ensure that the total load for each circuit is below its maximum capacity.

* Consider updating the entire electrical system with copper wiring in homes 40 or more years of age. Older homes with dated aluminum wiring are more prone to electrical fires than those with more fire-resistant copper wiring.

* Use the proper wattage bulb for every light fixture and lamp in your home, ensuring that you never exceed the recommended wattage.

* Arc fault circuit interrupters (AFCI) can be installed to help protect against electrical fires caused by arc faults, which are simply electrical currents being discharged across a gap. Wire insulation that’s pinched, overheated wires, and improper electrical connections are common sources of arc faults.

* Ground fault circuit interrupters (GFCIs) can be installed in your bathrooms, utility room, and kitchen to help protect your family from the risk of electrocution. GFCIs will detect any imbalance in electricity and shut down the electrical system.

* Use a power surge protection device for your computer and other large electronics. Electrical devices plugged into a circuit that receives a power surge, or sudden rush of voltage, can be damaged beyond repair.

Of course, despite all precautions, you still need to know what to do should an electrical fire start.

For an electrical fire at a wall outlet, you can either turn off the main switch -or- if you can do it safely, immediately try to pull anything that’s plugged into the outlet out by pulling on the end of the cord furthest away from the outlet. CO2 fire extinguishers can be used for small electrical fires, but do remember never to use water on an electrical fire.

In the event the electrical fire is large or otherwise uncontrolled, then you should evacuate the home and immediately alert the fire department that you have an electrical fire. It’s important that you tell the fire department if you suspect the fire could be electrical since they may be able to shut off the main power source and prevent it from spreading. 

10 Essential Hurricane Claim Tips

Hurricane Irene’s destruction has left many people facing extensive property damage. Individuals who must file a claim have several things to do. First, make any emergency repairs that are necessary to prevent further damage. Don’t attempt any non-emergency repairs until an insurance adjuster is able to assess the property. Be sure to take clear photos of the damage. Next, contact an individual insurance agent. If the number was lost in the damage, consult the Insurance Information Institute’s list of claim phone numbers for various insurance companies. Before contacting an agent, consider the following common questions and valuable claim tips.

1. What To Do After Filing A Claim
The most important thing to do is prevent further damage. Make sure property is secure, board broken windows, dry carpets and board damaged roofs. Don’t attempt any major non-emergency repairs until an adjuster can see the damage. Keep receipts for emergency repair supplies and temporary accommodations.

2. How To Speed Up The Claims Process
Keep in mind that priority is given to the most severe cases after a disaster. Larger claims are settled in steps. Try these following tips to help make the claims process quicker:

•Get at least two repair estimates for the adjuster to review.
•Take pictures of the damage. If photos of the property before the damage are available, make copies of them.
•Construct a list of all damaged property. Include a description, original cost, age, purchase location and estimated replacement cost of each item. If receipts are available for any of these items, make copies of them.

3. What To Do If The Property Is Uninhabitable
Remember that most homeowners policies cover extra living expenses resulting from hurricane damage. As long as the policy has provisions for hurricane damage, the company should provide reimbursement for living expenses. If unsure whether this is included, consult the policy to review the exact provisions. Remember to keep all costs in line with regular living expenses.

4. Food Spoilage Due To Power Outages
Unfortunately, most policies don’t cover spoiled food. However, some companies provide limited coverage for food that spoils during a power outage. The amount is usually between $250 and $500.

5. Coverage For Fallen Trees
Unless a tree damages a house, fence or garage, there is no coverage for damage to trees resulting from perils of weather.

6. Damage From Power Surges
When the power comes back on after an outage, surges often damage electronics or other equipment. Most insurance policies have a provision for sudden or accidental damage from artificially generated electrical currents. This excludes computer chips, transistors and some similar items. This means televisions and computers are excluded.

7. Claim Checks That Aren’t Enough
It’s important to understand whether cash value or replacement costs are awarded. If the amount received is lower than expected, consult an agent to discuss individual provisions.

8. When To Expect A Check
After the adjuster visits and assesses the damage, he or she completes the paperwork for processing. Once it has been processed, the carrier issues a check to the claimant. The turnaround time for receiving a check varies depending on how many claims are being processed. Some companies provide status reports for claim progress. If the check is slow to arrive, call an agent to see if the company has any progress reports on the claim.

9. Understanding The Difference Between Replacement & Cash Value
Replacement cost is the amount it costs to replace or repair an insured item today. It doesn’t cover the full original value of the item. The only limits are based on the amount of coverage purchased. Cash value policies pay for the cost of replacement of the item minus depreciation.

10. What “Underinsured” Individuals Should Do
Sometimes an agent tells an individual that they don’t have enough insurance. This is usually because homeowners don’t review their coverage regularly. Adding a room or making another change can have a significant impact on a policy. Be sure to contact an agent when any improvement or change is made to the home.

Keep in mind that agents are busy. If a copy of the policy is available, try to find the answers in the document before making a call. However, if there are questions that the policy provides unclear answers about, be sure to contact an agent. It’s important to file hurricane claims as quickly as possible. 

Homeowners Policies & Jewelry

After receiving valuable jewelry, it’s important to contact an insurance agent immediately. It’s important to keep in mind that most homeowners policies place limitations on coverage for personal valuable items. This means that owners of these valuable items may not receive the full value if any of the items are stolen or lost. As a general rule, most homeowners policies provide coverage for possessions up to 50 percent of the total coverage amount chosen. This means that a person who has a $600,000 policy would enjoy coverage as much as $300,000.

However, most policies place limitations on certain types of personal belongings. For example, a policy provider may offer to cover $1,500 or more for all jewelry if theft occurs or the jewelry is damaged. There are several other categories of personal belongings that have limited reimbursement terms. Firearms, stamps, furs, coins and silverware are examples of such items. Homeowners should be sure to read the section of their homeowners policies regarding contents and additional coverage. It’s important to remember that accidental loss is not usually covered. This means that a woman who loses her engagement ring will not receive payment from the homeowners insurance company.

Homeowners who want to raise their coverage limit to ensure protection for loss and theft cases should contact an agent immediately. It’s best to ask the agent to schedule the particular jewelry item or add a special rider to an existing policy. In some cases, a written appraisal may be required, so it’s best to ask an agent if this will be necessary. Usually a detailed receipt is sufficient proof for the value of the item. After a value schedule is assigned to the item, the owner has full protection for the total amount if the item is lost, destroyed or stolen. This makes the claims experience more simple since there isn’t a need for an investigation about the item’s value. In addition to this, there is no deductible assigned to the items.

Since additional coverage is so affordable, it’s best for all homeowners who have valuable jewelry or other special items to speak with their agent. Agents are able to make an assessment of what should be insured and provide valuable advice. As a general rule, homeowners policies don’t assign specific limits on electronic devices aside from the overall limit for possessions. It’s best for homeowners to insure their valuable items in such a way as to ensure that replacement-value coverage is in place. To learn more about the various types of riders and affordable coverage options, contact an agent today.

Dealing with Homeowners Policy Exclusions

Property exclusions exist in Sections A and B of a homeowners insurance policy. The following are some of the most important exclusions to be aware of:

 

Collapse If a home collapses, there is no coverage provided unless the cause is included in the list of additional coverage inclusions section.

 

Flood – This is one of the most important exclusions to be aware of. In the eyes of insurers, there is a large difference between water damage and flooding. It’s important to keep in mind that flooding hasn’t been covered in homeowners policies since the 1960s. In 1968, the government implemented the National Flood Insurance Program. Even those who don’t reside in flood zones should have this valuable coverage. Heavy rains and hurricanes often cause flooding in areas that usually don’t see it.

 

Freezing – If heating, air conditioning or plumbing systems freeze, the damage is excluded from a homeowners policy if the dwelling has been vacant or is in the process of construction.

 

Homes Under Construction – When thieves steal property or materials from an unfinished home, the loss is not covered by a homeowners policy.

 

Retaining Walls, Foundations & Nonbuilding Structures – Damage to swimming pools, fences, docks and similar structures from thawing, freezing, weight or pressure of water is not covered by a homeowners policy.

 

Mold, Wet Rot & Fungus – Damage caused by these issues is not covered if it’s due to a sump pump, sump or similar equipment. It also isn’t covered if it’s from a gutter, roof drain, downspout or equipment that is similar.

 

Risks Of Direct Physical Loss – This is the section of a homeowners policy that lists any other exclusions. Some examples of common exclusions are smog, rodents, birds, wear and tear or owned animals. It’s important to read it carefully to fully understand it. If there are any questions or concerns, contact an agent to clarify the terms.

 

Concurrent Causation Exclusions – Homeowners policies explain how loss is handled if a specific cause is covered but another is not.

 

Malicious Mischief & Vandalism – If the dwelling has been vacant for a period exceeding 30 consecutive days prior to the damage or loss, this exclusion exists.

 

Coverage sections A, B, C and D have several exclusions. Loss from any events that take place as a result of law enforcement on the property are excluded. However, endorsements are available to be added to a policy to provide this coverage. Damage or loss from earthquakes or landslides is also excluded. Power failure, neglect, water damage and war are also causes of damage that are excluded.

 

Sections E and F of a homeowners policy provide liability coverage. However, there are several exclusions in those sections to be aware of. Intentional injuries to other people are excluded. The business of an insured person is not covered by a homeowners policy. Premises held for rent, professional services, locations not listed on the homeowners policy, watercraft and motor vehicles are also not covered under a homeowners policy. Liability damages from war, owned aircraft, sexual molestation, abuse, communicable diseases and controlled substances are not covered. Coverage for home day care is very limited under the property section of the policy but is excluded under the liability section.

 

Although these exclusions exist, there are many add-on options available from insurers to provide coverage for such areas. There are also separate insurance policies for some exclusion. Flooding is one example. However, there are some exclusions that simply aren’t covered under insurance policies or additional coverage purchases. Harm to others from controlled substances is an example. The best way to avoid such problems is to take the proper preventative measures to avoid being in a position to suffer loss from any exclusions. The first step to getting coverage for exclusions is to speak with agent. An agent will be able to provide valuable information about extra coverage options and a list of ways to avoid suffering loss from issues that aren’t covered by insurance.

Avoid the Damage of Winter

Many disasters caused by winter weather conditions can be prevented by taking a few simple steps. Although it’s hard to think about such things during warmer months, it’s important to be prepared when the colder weather arrives. It’s hard to predict the weather in the future. However, long periods of low temperatures frequently experienced throughout history have proven that it’s important to be prepared.

Regular homeowners policies provide coverage for ice dams, burst pipes, loss from fires and wind damage from snow or ice. When snow melts, it can cause serious damage to a home. One of the most common causes of catastrophic loss is winter storms. Although wind and hail are the most common causes of insurance claims, freezing and water damage follow close behind. It’s important for homeowners to carefully review their insurance policies before winter arrives to understand what is covered. It’s crucial to have ample coverage for rebuilding a home and replacing all the belongings in it. It’s also helpful to consider purchasing sewer backup insurance.

There are several ways to prepare a home for winter and the damage it usually brings. Consider the following tips:

1. Clean out all gutters – It’s important to remove all sticks, leaves and debris. This helps the melting ice and snow flow smoothly. It also prevents ice collecting and forming a dam, which can result in water seeping into the house’s ceilings and walls.

2. Keep trees and branches trimmed – When branches hang over houses during the winter, they’re likely to accumulate snow and ice, which may make them break. Branches falling on homes can cause significant amounts of damage. They may also hurt people who enter the property.

3. Use gutter guards – These guards are useful for preventing interference of water flow from debris.

4. Seal cracks and holes – Caulk all holes and cracks to ensure that melted snow and wind can’t enter the home.

5. Keep steps and handrails safe – It’s important to ensure that steps and banisters are sturdy. If they accumulate snow or ice, they can contribute to serious injuries.

6. Use insulation liberally – Homeowners should add extra insulation to basements, attics and crawl spaces. When heat escapes through the roof, it contributes to ice and snow melting faster. As the moisture melts, re-freezes and accumulates, it can cause a roof to collapse.

7. Maintain a warm temperature – It’s best to keep the thermostat at 65 degrees to prevent pipes from freezing. The temperature in the walls is always colder than the temperature in the house.

8. Call the professionals – The heating system should be checked and serviced every year to prevent fires. It’s also important to ensure that smoke alarms are working. Carbon monoxide detectors are another valuable safety feature that should be placed in every home. In addition to this, homeowners should have a contractor evaluate the home for structural damage. It’s best to identify and repair minor problems before they become a disaster.

9. Be familiar with shutting off the water – Homeowners should know how to do this, and they should know where their pipes are located. When pipes freeze, it’s imperative to act quickly. When going away for an extended time, it’s best to have someone look after the home or have a service professional drain the system.

10. Add an emergency pressure release valve – By adding this to a current system, homeowners will have a system that is protected against increasing pressure from frozen pipes.

Deciding on Separate Rental Car Coverage

Insuring a rental car is a process that confuses nearly everyone. Most people don’t consider this type of insurance until the issue is brought up by a sales representative at the checkout counter. While rental insurance may sound like a good idea, it’s important to know what is covered and what kind of coverage may already exist before purchasing it. It’s best to call an agent and a credit card company before purchasing rental car coverage.

When calling the insurance company, ask how much coverage exists for a current vehicle. If the rental car is used for recreation, the same deductibles and coverage held on a personal vehicle usually apply to a rental car. If the car is used for business purposes, the same coverage doesn’t exist. Vehicle owners who drop their collision or comprehensive coverage to save money are not covered if the rental vehicle is damaged in an accident or stolen. It’s important to ask if an insurance company covers administrative fees, towing charges and loss of use for a vehicle. There are several insurance companies that offer riders for such coverage, which makes it less expensive to purchase coverage from the rental car company. However, it’s important to remember that diminished value isn’t covered by insurers in many states.

Credit card companies and the banks they use differ in the terms of coverage they offer for rental cars. For example, a gold card may offer less coverage than a platinum card would. Usually loss and damage are the only coverage provisions offered by credit card companies for rental cars. Damages to other vehicles, property of others and personal belongings are usually not covered. Although some companies provide coverage for towing, they usually don’t provide coverage for administrative fees or diminished values. It’s also important to keep in mind that many credit card companies have changed their policies in recent years, so cardholders may not have the amount of coverage they originally had. To learn about the type of coverage available from a credit card company, call the toll-free number on the back of the card. Be sure to ask for written information to be sent by mail or email. As a general rule, credit card company coverage should be used as secondary coverage to temporary insurance from the rental company or from personal auto insurance. If there are multiple credit cards available, call each company to find out which one offers the best provisions.

There are usually several different types of coverage offered at the rental car counter. Loss damage waivers, which are commonly called LDWs, are not technically insurance products. However, they do clear renters of the financial responsibility of theft or damage to the rental car. LDWs may also provide coverage for loss of use, administrative fees and towing. There are several incidents that may void LDWs. It’s important to understand the contract terms thoroughly before purchasing this coverage. Be sure to check with an agent before buying this type of insurance in order to avoid duplicate provisions. Liability coverage offered by rental companies must be in accordance with individual laws for the state in which the company is located. As a general rule, these amounts are minimal and provide limited coverage. Umbrella policies are much smarter investments. Speak with an agent to learn more about umbrella policies. Personal accident and personal effects coverage options also exist. They provide limited coverage for auto accidents and loss or damage of personal belongings.

Insurance Checklist for Home Buyers

There are many different issues to consider when looking for the perfect home to purchase. One of the most overlooked issues is insurance coverage. However, it is one of the most important aspects about home ownership. It’s essential for those who are shopping for a home to factor in the cost of insurance. Before going out to look for a home, consider all of the expenses the purchase will incur. There are several other things to do before preparing to sign the final documents.

Get A Credit Report

Everyone is entitled to one free annual credit report. It’s important to review the report for inaccuracies and derogatory information. Dispute any inaccuracies immediately. If a creditor can’t verify a debt, it will be erased from the report. Having good credit makes it much easier to obtain a good interest rate. Good credit also helps individuals qualify for an insurance discount. If a credit report isn’t good, it’s important to take the necessary steps to improve scores and eliminate derogatory information.

Get Renters Insurance

Anyone who is shopping for a home but is currently renting should get renters insurance. It’s important to keep this coverage until a home is purchased. Renters insurance provides protection for renters from the liability of injuries sustained by others while they’re on the property. It also awards compensation if personal belongings are stolen or destroyed.

Research The Nearby Fire Department

One factor affecting insurance that most people don’t think of is the nearby fire department. If the location has permanent staff and has high ratings, the home will cost less to insure. Homes that have nearby fire hydrants also cost less to insure. Adequate water supply, trained firefighters and ample equipment are all important aspects of determining home insurance rates.

Consider Natural Disasters & Bad Weather

Although homes along the coastlines are more desirable, they’re more expensive to insure than inland homes. It’s important to plan on a windstorm or hurricane deductible for a home on a coastline. This amount is not a flat cost. It is a percentage of the estimated cost to rebuild the structure if it is destroyed. These percentage variables usually differ from one state to another. Even if the home is located in a state that doesn’t have a coastal border, it’s important to consider other natural disasters. Flooding and earthquakes are important issues to consider. Be sure to investigate the area’s history of flooding and earthquakes. Keep in mind that these coverage options must be purchased separately.

Know The Home’s Age

While older homes have their own unique beauty, they’re more expensive to insure than newer homes. Since some of the ornate features of older homes are more difficult to replace, the insurance premiums are higher. In addition to this, their plumbing, electrical or gas systems may be old enough that they’re considered risky. If this is the case, they result in a higher insurance premium.

Consider Swimming Pools & Other Features

Homes with swimming pools usually cost more to insure. Since a swimming pool is expensive to replace and poses a safety risk, it is considerably more expensive to insure a home that has one. Hot tubs, saunas and any other features that may pose a liability issue require careful planning for insurance. It may be best to purchase an umbrella policy to ensure liability protection.

There are several other things to consider when looking for a new home. For example, a roof that is new can positively affect insurance rates. However, an older roof that needs repair will cost more to insure. Homes that aren’t up to code also cost more to insure. It’s important to speak with an agent before agreeing to purchase a home. Agents are happy to look over the property’s details to determine how much of a risk the home is. When the time comes to purchase the perfect home, an agent can help arrange ample insurance coverage for the future. 

Why Earthquake Insurance is Important Everywhere

When most people think about earthquakes in the United States, California and Alaska are the two states that come to mind. However, earthquakes can happen in any part of the country. Many people move out of areas that are prone to earthquakes after experiencing one to escape the possibility of a repeat experience. The truth is that there is no place that is completely safe from earthquakes. They are a very real threat that everyone must consider and plan for. One of the most vital aspects of proper preparedness is having ample insurance coverage.

Earthquake damage isn’t covered in the majority of homeowners policies. This is also true for business policies. Both types of policies specify that damage from earth movement is not covered. While actual damage from a quake may not be covered, property insurance may provide coverage for fires and other incidents that occur as a result of it. Policyholders should scour their policies to understand the specific exclusions. If the policy seems difficult to read, it’s important to contact an agent with any questions.

Many people think they won’t experience a major earthquake during their lifetime. This is especially true for those who live in areas where earthquakes happen every 100 years or less. Although many people may not experience a strong earthquake like the recent Virginia incident, there are over 5,000 incidents recorded each year by the USGS. Damage from earthquakes has been recorded in all 50 states in history. There have been reports of damage in 39 states alone since 1900. This proves that while some people may not live in areas that commonly experience earthquakes, they’re still not immune to the threat.

Earthquake insurance is available as a rider, which is added to a business or personal property policy. People who have one of these types of coverage should contact their insurer to find out what coverage options are available. Since they’re unpredictable and happen suddenly, it’s best to be prepared for all types of disasters. Earthquake insurance is so important that it can’t be stressed enough. While the majority of people assume all California homeowners have this type of coverage, research indicates that about 12% actually have this type of insurance. The nation’s average is less than 12%.

Earthquake insurance costs vary by location, building type and the age of the building. It’s much more expensive to insure older buildings. In addition to this, brick structures are more expensive to insure. Buildings with wood frames withstand the force of earthquakes better, so it’s cheaper to insure them.

To offer an example, a home with a wood frame in Washington may cost between $1 and $3 per $1,000 of coverage. The same home may be less than $.50 per $1,000 insured on the East Coast. However, a brick home may cost between $3 and $15 per $1,000 in the Pacific Northwest. In most East Coast locations, the same home may only be between $.60 and $.90 per $1,000.

Every earthquake policy also has a deductible. This means that homeowners must pay upfront for a portion of the damages before the insurer pays the remaining amount. The deductible may be up to 20% of the structure’s replacement value. The percentage depends on the insurer and the location of the structure.

There are also options for renters. There are coverage policies that protect personal property. In addition to this, they usually cover living expenses if the building becomes uninhabitable after an earthquake. It’s important for renters to keep a list of belongings and their values. Major appliances, furniture, electronics and other expensive items must all be documented properly. A new way of creating a record of belongings is making a narrated video tour of the home and focusing on belongings.  It is best to contact your insurance agent to secure the earthquake coverage that is right for your individual needs.

Filing a Homeowners Claim

It’s necessary to file a claim with the insurance company if a home is destroyed by a storm or a visitor is injured. It’s important to keep in mind that a homeowners policy is a contract held between an insurer and an individual. This means that there are specific procedures and rules to follow. It’s important to thoroughly read an insurance policy to completely understand individual responsibilities. There are a few pointers that every homeowner should remember.

Immediately report all crimes to the police.

It’s important to notify the police of any vandalism, burglary or other crime. Homeowners should also obtain the names of any police officers involved in the report or investigation. It’s also important to write down the names of all law enforcement officers after speaking with them on the phone.

Make all necessary temporary repairs.

Don’t shell out thousands of dollars for full repairs to a damaged property. It’s best to pay only for supplies to temporarily repair or sustain something. For example, if a window is broken, it’s best to pay for boards and nails or tape and cardboard to temporarily repair it. It would be pointless to pay for an entirely new window until after the claim is honored. Homeowners should save all receipts of items purchased for making temporary repairs.

Call an agent immediately.

After calling the police for any crime-related issues, it’s important to call an insurance agent. If the nature of the claim doesn’t involve a crime, phone an agent immediately after discovering the issue that will become a claim. Since there are time limits for some claims, it’s important to follow this advice. Ask the agent what steps must be taken. Agents are also able to provide advice regarding how long the claims process will take.

List all damaged items.

Don’t discard any items that are damaged before the insurance adjuster is able to survey them. Photographs and videotapes are also acceptable forms of proof in most cases. After making an inventory, make a copy for the insurance adjuster.

Obtain the necessary claim forms.

After receiving notification of a claim, an insurance company must send the proper forms to an individual within a specific time period. The best way to avoid delays is to ensure that the paperwork is filled out correctly.

Keep all receipts after relocating. 

Not everyone has to relocate after filing a claim. However, if the dwelling is uninhabitable, it’s important to remember that homeowners insurance has provisions for living expenses to some extent. It’s best to keep receipts in order to show written proof of expenditures.

Homeowners should carefully follow each of these steps. After filing a claim, it’s best to have an insurance adjuster come out as quickly as possible to survey the damage. Most insurance companies arrange for adjusters to visit a residence. To learn more about this process or to obtain answers to other questions, contact an agent.

Protecting a Home from Mold

It’s important to have a plan and routine in order to protect a home from mold. This involves constantly looking for watermarks on ceilings or walls, signs of mold growth and musty smells. If mold is caught early enough, it can be removed with a simple cleaning solution of bleach and water. However, preventing mold from growing again requires that the source of moisture be eliminated. The area where the mold started growing must also be dried properly. In some cases, the surface or area may simply need to be replaced. After cleaning the mold and attacking the source, be sure to place all rags, clothing, materials, paper and other debris affected in a plastic bag to be thrown in the garbage.

Mold is similar to insect infestations and rot in the respect that it is usually not covered under a homeowners insurance policy. Standard policies afford coverage for sudden or accidental disasters. However, they don’t offer coverage for cleaning or maintaining a home. If the mold is a direct result of a burst pipe or other covered peril, the insurance company may cover the cost to eliminate the mold.

Since mold is also dangerous, it’s important to tackle the problem immediately if it arises. Mold can cause family members in the home to become sick. Symptoms are usually similar to allergic reactions or hay fever. The best way to avoid all of these problems is to take steps to prevent mold. The following steps can be taken to prevent mold from growing.

Reduce Humidity Level
It’s best to keep the humidity level between 30 percent and 60 percent by utilizing dehumidifiers and air conditioners. Be sure to place exhaust fans in all bathrooms and kitchens. If carpet is desired, avoid installing it in bathrooms or kitchens. It’s best to have carpet only in rooms that aren’t exposed to moisture on a regular basis. Another important thing to remember is to avoid letting water pool and collect under house plants.

Check & Replace Hoses
Be sure to regularly inspect pipes, fittings and hoses. It’s best to replace hoses to appliances that use water every five years. At about $5 or $10 per piece, the cost of replacing hoses is much less expensive than dealing with a major mold problem.

Use Mold-Reducing Products
Clean all bathrooms in the home with bleach and water regularly. There are also several other cleaning products available that are designed to kill mold. It’s a good idea to add mold inhibitors to paint before applying it to the walls or doors.

Exercise Caution After Water Damage
If at any time a large amount of water comes into contact with the home’s interior, it’s important to ensure that carpets, upholstery and any other surfaces that hold water are dried thoroughly and promptly. Everything should completely dry within 24 to 48 hours following the initial water contact. Items that can’t be dried should be discarded. If there is standing water, remove it promptly. In addition to promoting mold growth, standing water is a prime breeding ground for microorganisms. After all areas have been dried, wash and disinfect them well. This includes the surfaces of appliances, closets, walls, shelves, floors, heating systems and cooling systems.

Check The Roof & Gutters
Another way to prevent mold is to check the roof and gutters frequently. Clear the gutters of any debris. If there are any leaks in the roof, have them repaired immediately to avoid water seeping into the home.

While mold is problematic, it can be prevented with proper care. For any questions about mold and the specific terms of an individual homeowners insurance policy, contact an agent.

How to Avoid Post-Disaster Scams

Homeowners must exercise caution after their homes are destroyed by fires, tornadoes or other disasters. There are many dishonest scam artists and service providers who are ready to take advantage of distressed homeowners. They know that individuals who have just experienced such a great loss due to disaster are in a panicked state of mind. Since homeowners in such situations aren’t thinking clearly, scam artists are able to get the money they want. In order to avoid such a fiasco, simply avoid making rash decisions by talking to an agent immediately following a disaster to get a list of reliable service providers. When disaster strikes, this will make it easier to know who to turn to. In addition to obtaining a list from an agent, consider the following tips for hiring service providers.

Builders & Roofers
Avoid rushing when hiring a builder or roofer. It’s better to obtain business cards and written estimates from several service providers before making a decision. Make sure to ask for references and check them. Research the track records of the companies or individuals being considered for the job. It’s best to use professionals who have good reputations. One way to find a list of such individuals is to contact the Better Business Bureau. Individuals earn a place on this list by being honest and providing quality work. One scam that is common in building and roofing involves a service worker asking for an extremely large deposit to begin working. After starting the job, the individual or company will disappear. Never do business with anyone who asks for a large sum of money upfront.

It’s also important to beware of contractors who are pushy about spending a lot of money for temporary repairs. The purpose of temporary repairs is to provide a cheap and temporary fix. Payments for temporary repairs are covered in the total settlement from the insurance company. Homeowners who pay service providers large amounts of money for temporary repairs usually find that they don’t have enough to cover the cost of permanent repairs. A good service provider will offer reasonable rates for temporary and permanent repairs. Whether obtaining temporary or permanent work, be sure to keep receipts for services received in a safe place. Always ask an agent when in doubt about repair quotes.

Attorneys & Public Adjusters
Never make hasty decisions about hiring someone to handle an insurance claim. It’s especially important to be careful about individuals who offer their services by door-to-door soliciting following a catastrophe. Never let any company or individual use scare tactics to encourage a quick signature for immediate services. If such people surface in the aftermath of a disaster, they will likely victimize anyone who is willing to agree to their terms. These individuals usually offer quick or immediate service, which homeowners feel desperate for after a disaster. However, their efforts to make quick money usually leave victimized homeowners without enough money to pay for permanent repairs. Keep in mind that quality repairs take time to obtain after a major disaster.

Another thing to remember is that it’s best to settle a claim directly with the insurance company before considering using the services of a public adjuster or attorney. Insurance companies provide their adjuster’s services to policyholders for free. Be sure to ask an agent to help with filing a claim, and never hesitate to ask questions. Individuals who agree to work directly with the insurance company still retain the right to hire a third-party professional for help, so there is nothing to lose by working directly with the insurance company. If the claim is complicated and the services of an attorney are desired, make sure the individual selected is qualified. Ask around the community for advice about which attorneys are best. Another place to check for reliable advice about which attorneys are reliable is the county’s Bar Association. Keep in mind that attorneys ask for about 30 percent of the settlement, and public adjusters usually require 15 percent. The key idea to remember after any disaster is to contact an agent before making any decisions.

Understanding the Payment Process

An insurance adjuster is responsible for inspecting damage to a home following a claim. These individuals are also responsible for offering a specific sum of money that is to be used by the policyholder for necessary repairs. As a general rule, the first check received from the insurance company is meant as an advance toward the total amount of the settlement. It’s important to remember that it’s not the final payment. Separate checks are issued for each category of damage. Checks to cover living expenses are usually also sent separately. Individuals who are offered a settlement amount on the spot may choose to accept the money. If further damage is identified later, it’s possible to reopen the claim to request more money. Keep in mind that most policies require all claims to be filed within one year of the disaster’s occurrence. It’s best to check with an agent to learn about rules pertaining to individual state insurance departments.

People who have mortgages on their homes will receive a check for repairs that is payable to them and their lenders. This is because lenders usually require that their names be placed on the homeowners policy, which means they’ll also be named on any checks for claims. Since the lender has a vested interest in the property for as long as it’s under a mortgage, they have equal rights to the checks issued by homeowners insurance companies. When a lender’s name is on the check, the document must be endorsed by the lender before it can be cashed. As a general rule, lenders place the funds in an escrow account. They use the money to pay for the repairs until the work is completed. Borrowers must communicate with their lenders to ensure the repairs are done quickly and efficiently. After receiving a bid from a contractor, show it to the lender. Let them know how much money the contractor requires up front to start working. Keep in mind that a lender may want to have the work inspected before releasing enough funds to pay the rest of the bill.

There are some construction companies that require customers sign a form that permits their homeowners insurance company to pay the company directly. If this is the case, it’s important to be sure the final work product is acceptable before telling the insurance company to complete the final payment. There are specific guidelines that lenders must follow after a disaster occurs. To learn about these rules, contact an agent.

The first step to take after a disaster occurs is to total up the cost of all personal belongings. Use photos, videos and any other means necessary to prove ownership or show the condition of items that were destroyed. If there are receipts or sales records of any items, be sure to save them. Homeowners who have a replacement cost policy will receive reimbursement for the purchase of new items. Cash value policies provide reimbursement minus the cost of depreciation. Most companies require policyholders to purchase new items before they offer reimbursement for the destroyed items. To learn how reimbursement works and what type of compensation an individual policy offers, contact an agent today.

Checks for additional living expenses are made payable to the policyholder. Since the lender has nothing to do with these expenses, they don’t receive any of the money. If the check contains the lender’s name, contact an individual agent. Those whose homes have been destroyed have several options. They may rebuild on the same site. If this option is chosen, the amount of money awarded to rebuild will depend on the type of policy purchased and the amount specified under the declarations section. Some homeowners may decide to rebuild elsewhere. If this option is chosen, the amount awarded will be determined by state law, policy provisions and court rulings. Homeowners considering either option should contact an agent before making a decision. 

Choosing the Right Roofing Material

Every homeowner wishes for a roof that is cheap, never requires repair and will last forever. However, the average roof must be replaced or repaired about every 10 years. It is important to choose roofing materials carefully to get the most life out of a roof, lessen the amount of waste in landfills and use fewer natural resources. For example, the color of a roof impacts how hot or cold the attic and the rest of the home will be, which affects cooling and heating bills. Choosing the right material may yield a result that lasts for more than 30 years. There are many roofing materials available. Cost does not always determine the level of quality for many of the popular materials. The following paragraphs outline the positive and negative features of the most popular types of roofing.

Composition Shingles
These are a good selection for buyers who want an affordable roof that looks clean. There are also high-quality versions available that are constructed from fiberglass or asphalt, which are more durable. Composition shingles come in many brands, colors and types. The major advantages they hold include the following:

•Adjust well to different applications
•Can be nailed over an existing roof
•Easy to install
•Low maintenance
•Some brands may feature Class A fire protection.

However, there are a few disadvantages to consider:

•May blow off in strong winds
•Material is prone to scarring while hot
•Does not have the same aesthetic dimensional appeal as tile or shakes

Clay Tile
This tile is a good choice for Spanish, Southwestern or Italian styles of homes. Some of the biggest advantages they offer include the following:

•Durable
•Long lifespan
•Will not burn or rot
•Resistant to insect damage
•Low maintenance

There are several disadvantages of clay tile. One of the biggest is its weight. This means that additional roof support is often required to hold the tile. The following are also disadvantages:

•Color fades over time
•Difficult to perform roof maintenance that requires walking on fragile tiles
•Difficult to install
•Expensive

Wood Shakes
This natural look is unique because shakes can be different widths, colors, thicknesses or cuts. The main advantages include the following:

•Helps insulate an attic
•Allows home to breath

Since they are wood, there are also several risks and disadvantages to consider. The following are the most important considerations:

•Many are unrated by fire safety codes
•Many manufacturers use spray or wipe fire retardants
•Difficult to install
•Lifespan maintenance cost may be high
•Old shakes cannot be recycled
•Prone to insect infestations

Concrete Tile
Some of these tiles are coated with other materials. Plastics, thin metals, enamels and various recycled materials are some examples. The following are advantages of concrete tiles:

•Long lifespan
•Low maintenance
•Good fire resistance
•Resistant to insects and rot
•Durable

The following are disadvantages of concrete tiles:

•More expensive than similar materials
•May be prone to breaking, curling or changing color

Slate
This material is often seen on upscale homes. While it may be expensive, it offers a natural look. The following are some advantages of slate:

•Long lifespan
•Good fire protection
•Resistant to insects and rot
•Low maintenance
•Wide selection of sizes and natural colors

The following are disadvantages of slate:

•Can be heavy enough to require extra support
•Breakable enough to making walking on it not recommended

Metal Roofs
These roofs were popular in the 1700s, and they are making a comeback today. One advantage people like about them is that they can be designed to look like other types of roofing. The following are the main advantages:

•Durable
•Energy efficient
•Fire resistant
•Very low maintenance
•Made from up to 65 percent recycled material
•Some types can be installed over an existing roof

The following are disadvantages:

•Difficult to install
•Expensive
•May not be as efficient as other roofing materials

Hot Mop
This is installed on flat roofs. It is not very attractive, so most people cover it with decorative stones. It can only be installed on roofs with proper drainage devices intact. While it is inexpensive, it poses several health risks because of dangerous substances in its material composition. 

Are You Prepared for a Sewer Backup?

While many homeowners assume otherwise, their insurance policies do not cover a sewer backup. However, there is separate coverage available. In comparison with the cost of dealing with the aftermath of a sewer backup, coverage is a true bargain. Homeowners are responsible for repairing and maintaining the portion of pipeline that connects their home with their city’s sanitary sewer main. Since this pipeline is actually owned by the homeowner, any parts of it that extend into the public right of way or street are also included. Working on these pipes is a costly chore, so it is important for all homeowners to know how sewer backups are caused. The following three types of blockages are the most common causes of backups.

Tree Roots Blocking Pipelines
Trees thrive on water, so their roots often gravitate toward cracks in sewer lines. While the growth starts with a few tiny roots penetrating the pipe, they eventually get thicker and expand. They often enter pipelines near the joints, which results in major blockages. Unfortunately, tree roots can eventually span the entire length of the pipe and cause a complete clog. If trees owned by the city are suspected of causing problems, contact their cleanup department immediately. They will often sample the roots to determine who is responsible for cleanup. In some situations, a combination of city trees and privately owned trees are to blame. When this happens, the city and the property owner must split the cost of cleanup and repairs.

Heavy Rains Clogging Storm Sewers
If a sanitary sewer or storm sewer is unable to contain the amount of rain falling, a backup may occur. Water typically enters the home through washtubs, toilets or sump wells in the basement. While damage is most common in the basement, it may occur anywhere in the home. To help avoid this problem, make sure there is a sump pump to drain the water and a generator that will run the pump if the power goes out.

Sanitary Main Blockages
Several types of blockages are possible in the sanitary main. Blockages result in sewage backing up into the home itself. Fortunately, this occurrence is gradual, so there is time to call a plumber before the house is overtaken with sewage. In some cases, there may be a rapid flow of water coming in through the basement. When this happens, it is important to call the city’s public works office immediately.

Each of these events can be very costly. Sewage and standing water can also be hazardous to human health. In addition to this, they destroy nearly every tangible object they meet in a home. A simple calculation of the cost of replacing damaged items and comparing it to the cost of insurance is enough to clarify the importance of adequate coverage. To learn how to obtain protection from sewer backups, discuss available options with an agent today.

State Minimum Auto Liability: Is It Enough?

State minimum insurance requirements are minimal. Most states demand less than $100,000 for bodily injuries and $50,000 for property damage. Some states require only $10,000 for property damage coverage.

How many cars valued at greater than $10,000 travel the highways? How many trucks carrying cargo are worth more than $10,000? $50,000? $100,000?

According to the 2010 census, the median family net worth exceeded $200,000. That amount includes houses, cars, savings, retirement funds, cash in the bank, college savings, and furniture and personal effects. Half the families are worth more, half have assets less than $200,000; all of it is hard earned.

If the family is underinsured for liability, their net worth is vulnerable to be seized in a lawsuit based on injuries or property damage caused by any family member driving a vehicle. The car owner and the car driver become parties to the suit.

Bodily injuries sustained in car wrecks devastate lives. People unable to work, the high cost of medical treatment, rehabilitation expenses, and the pain and suffering can only be compensated with money. The money comes from the insurance company or the liable party’s personal wealth.

Not convinced you need higher limits? Bankruptcy options are available?

Not all liabilities are released in bankruptcy. Many states have specific legislation disallowing debt reduction for certain accidents, most notably driving while intoxicated. Wage plans reduce take home pay by as much as thirty three percent. Many employers do not tolerate either bankruptcy or wage garnishments.

Still not convinced? How about a selfish motivation?

Other drivers are either uninsured or underinsured. Most insurance companies will not provide uninsured motorist coverage in limits greater than the liability limits of the policy.

Uninsured and underinsured motorist coverage from your policy pays on behalf of the driver who hits you if they are poorly insured. In a classic exercise of the golden rule, insurance companies only sell limits commensurate with the protection you offer others.

Proper limits of liability allow you to protect yourself from the improper coverage other people maintain.

So how much coverage is enough? What are reasonable limits of liability?

Ask your insurance professional. And consider this:

Your assets are your excess insurance coverage. This means that when the limits of your policy are reached, your assets are at risk.Excess insurance – umbrella policy – is available in one million dollar layers over your automobile and homeowners’ liability limits if those limits qualify – are high enough.Protect yourself against underinsured drivers by increasing your uninsured motorist coverage.

Vehicle Type has Impact on Insurance Rates

The costs associated with purchasing a vehicle do not end when you pay the dealer. When you own a car, you must pay for gasoline, maintenance and car insurance. The cost of car insurance usually varies based on your driving history, age and the type of car you drive. While certain types of cars lower the cost of your insurance, others will raise it.

Car insurance companies determine the cost of your policy based on the risk of loss on insurance claims for the company. If the type of car you drive is associated with a larger number of expensive insurance claims, insurance companies will charge you a higher premium than it would charge if you were insuring a vehicle with fewer risks.

A car insurance company assesses the risk associated with your vehicle by examining past information about the vehicle and about the type of person that usually drives it. If drivers of the vehicle usually make more claims, the insurance company will assign a higher premium. Cars that are often associated with more claims are usually those driven for pleasure, such as sports cars. Drivers of pleasure vehicles travel faster and may pay less attention to safety regulations. Sports cars also tend to become damaged more easily.

On the other hand, if the insurance company determines that your vehicle type does not usually result in many expensive insurance claims, it may assign a lower premium. For example, minivan drivers typically make fewer insurance claims and thus pay lower insurance premiums. This is because minivan drivers are typically carrying multiple passengers, so they drive more safely. Drivers of minivans also tend to travel less during peak traffic times.

Along with the profile of the driver and the safety of the vehicle, insurance companies also look at the cost of repairing your vehicle when determining your premiums. If repairs made to your vehicle would cost more than repairs made to most other vehicles, it is likely that your insurance premiums will be higher than the premiums associated with those other vehicles. In most cases, the more expensive the vehicle is, the more expensive the cost of repairs will be. For this reason, cars that cost more to purchase also cost more to insure, especially if the car is worth more than $60,000.

Regardless of the vehicle you drive, your age and driving history will also affect the value of your premium. If you are a young or inexperienced driver, your rates will usually be higher than the rate charged to a driver with more years of experience. Likewise, if you have a poor driving history with many insurance claims, your rate will increase. 

Six Tips for Insuring Young Drivers

Now that your blood pressure has recovered from giving your teenage driver her first driving lessons, it’s time to add him or her to your insurance policy. But teenage drivers and young adults are historically risky clients for insurance companies – and rates generally reflect that. What is the best way to manage the situation?

Here are some things you and your new driver can do to keep premiums affordable.

Tell Junior to Hit the Books

Insurance actuaries – the bean counters who actually figure out the odds and set insurance rates – have long known that there is a correlation between good grades and good driving records. Kids who have the discipline and focus to do well in school statistically also have the judgment and impulse control not to get into a lot of accidents.

Many insurance companies offer a discount to students with good report cards. If your youngster has a GPA of 3.0 or better, you may qualify for a discount on your insurance premiums. One idea: Compare the difference in premiums with and without the discount – and make junior pay the difference himself!

Keep it in the Family

Insurers like it when everyone in the family signs up. So much so, in fact, that many of them will discount premiums on family members. It is generally much more efficient to add a young driver to an existing policy than it is to get a separate policy.

Use Multi-Line Discounts

Many companies will offer a discount if you use them for multiple lines of insurance. For example, if you have your homeowners or renters insurance policy with a company, and your life insurance, consider placing your car insurance with the same carrier as well.

Get an Older Car

Older cars are generally less expensive to replace than a new car. This means that if your young driver totals a 10 year old car, the insurance company has to pay less to replace the car than if she wrecks a brand new one. This translates to much lower insurance premiums if you carry collision coverage. Don’t skimp on safety – but don’t needlessly pay too much for a car for a young driver, either.

Skip Collision Coverage

You may want to consider skipping collision coverage altogether. For older cars, the bigger risk isn’t the cost of the car – it’s the covering your teenage or young adult driver against liability. You can recover from the cost of a single clunker. You can’t recover from a $100,000 judgment. If your family can afford to replace an old car, consider dropping collision altogether and adding to liability coverage.

Avoid Tickets and Accidents

The last part seems obvious to adults; It may not register yet with the kids. Impress on them the importance of maintaining a good driving record. Moving violations get recorded, and reported to the insurance industry. Even a single accident or moving violation can cause your premiums to skyrocket. And a single DUI conviction? Better invest in a bus pass, because those are the only wheels your kid will be taking for years. Coverage is nearly impossible to find once a young driver gets a DUI. 

Understanding Tree Damage & Your Homeowners Insurance

When a tree falls on a house, the first thing most homeowners wonder is whether their insurance will cover the damage. Fortunately, they do, and the coverage inclusions are clear. If a tree falls on a home or other insured property structure, a homeowners insurance policy provides coverage for the structure itself and the items inside of it. This type of coverage includes trees that fall due to hail, lightning or wind.

The fallen tree does not have to be owned by the policyholder for a claim to be approved. For example, if a tree owned by a neighbor falls over the property line onto a policyholder’s home, the affected homeowner’s policy will cover the damage. The affected homeowner must simply file a claim with his or her insurance company. Trees, branches and shrubbery have a tendency to become hazardous objects during storms, and insurance companies are aware of this fact. This is why they do not conduct extensive investigations to figure out exactly where the offending tree or shrub came from. Their duty is to assess the damage, figure out the reimbursement cost and issue a check.

In some cases, the insurance company may try to collect money from a neighbor’s insurer. This process is called subrogation, and it is usually initiated when the insurer feels that the offending tree was not kept well. However, this is the insurance company’s job. If the company is successful in proving the tree was poorly maintained, the policyholder affected by the damage may receive a reimbursement for his or her deductible amount.

If a tree falls on a home or insured structure, there is also coverage for the cost to remove the tree. This amount is usually between $500 and $1,000. Reimbursement numbers may vary from one insurance company to another. The amount also varies depending on the type of policy chosen. However, if a tree does not affect a home or structure, there is usually no reimbursement for damage or removal. Some insurance companies may extend special coverage for trees blocking driveways or handicapped ramps.

In addition to the previous coverage inclusions, standard homeowners insurance policies allow protection for tree damage due to theft, explosion, fire, lightning, vandalism, malicious mischief and vehicles owned by others. However, coverage is usually limited to a small percentage of the amount of insurance on the home or other property structures. As a rule, most insurers place a limit of $500 for any shrub, plant or tree. Shrubbery and trees grown for business purposes require special business insurance policies. To learn more about this type of coverage, discuss the options with an agent. 

Understanding the Basics of Insurance Deductibles

To get the most out of a car or home insurance policy, it is important to understand the roles deductibles play. A deductible is the amount deducted from an insured loss. When a damage claim is filed, the deductible is the amount of money a policyholder must pay upfront. It may be a percentage of the policy’s total or a set dollar amount. Larger deductibles are associated with smaller premiums. To find the verbiage concerning deductibles, consult the front page of the auto or homeowners policy. Deductibles are subtracted from the claim amount. For example, if a person with a $500 deductible files a claim for $10,000, that policyholder will receive a check for $9,500. However, if that individual’s deductible is calculated using percentages, the amount may differ. With percentages, the variable is calculated from the total claim and then subtracted from the total.

In many areas of the United States, deductibles are increasing. This is especially true in states prone to hurricanes. Property damage deductibles work differently than those for other types of insurance. For example, a deductible applies each time a claim is filed for auto or homeowners insurance. However, a deductible applies only once each year for health insurance. There are some exceptions for damage-related insurance products. In some cases, hurricane coverage has a per-season deductible. The following points cover some of the most important deductible information.

Deductibles Do Not Apply To Liability Claims

While there is no deductible for a liability claim with a homeowners or auto policy, there is a deductible for property damage. Deductibles apply to claims made to the comprehensive policy. In homeowners insurance, deductibles also apply to damaged items inside the insured structure. However, they do not apply if a homeowner is sued or if a medical claim is filed by an injured visitor.

Higher Deductibles May Save Money

One of the easiest ways to cut expenses is to raise deductibles for homeowners and auto insurance policies. Increasing an auto insurance deductible from $200 to $500 reduces collision and comprehensive premium costs up to 30 percent. Raising the deductible to $1,000 may result in a savings of more than 40 percent. Remember this is the out-of-pocket amount that must be paid regardless of the amount of the claim.

Flood Insurance Deductibles Vary

Since flooding is not covered in standard homeowners policies, it is sold by the NFIP and private insurance companies. There are several different choices of deductible amounts for these policies. Keep in mind that some mortgage companies require homeowners to keep their deductibles under a specific dollar amount. Flood coverage for vehicles can be obtained with an optional comprehensive plan.

Various States & Companies Affect Deductible Amounts

Insurance is a state-regulated product, and insurers are required to follow their state’s rules. The laws affect how deductibles are worded in policies and how they are implemented. Since there are a wide range of deductibles found in each state, it is best to compare policies. Keep in mind that doubling the deductible may save more than 20 percent on the cost of a policy.

Percentage Deductibles Apply To Hurricanes, Hail & Earthquakes

Earthquake deductibles may be much less than 10 percent or as high as 20 percent of the structure’s replacement value. Insurance rates are higher in states such as Nevada, Utah and Washington. Consumers in these states may choose higher deductibles to save money. There are special earthquake policies for California residents. To learn more about areas prone to earthquakes, discuss them with an agent.

There are two separate types of wind damage deductibles. The first is a hurricane deductible, which applies to wind damage sustained from hurricanes. The second type is a windstorm deductible, which applies to damages sustained from any other type of windstorm. Hurricane deductibles depend on specific triggers. These are usually designated by the National Weather Service, individual states and insurers. The triggers apply when a storm is officially deemed a tropical storm or hurricane. To learn more about how these triggers work, discuss them with an agent. Some states allow set deductibles. However, communities in high-risk coastal areas may have mandatory percentage deductibles.

How Credit History Affects Auto Insurance Premiums

Many factors are involved in determining an auto insurance rate. The age of the insured driver, the vehicle type and the individual’s driving history are all key factors. However, there is a more controversial factor used by auto insurance companies, which is individual credit history. It is important for all drivers to consider the following issues.

Credit Scoring
Insurers perform a credit check to determine an insurance credit score. They use FICO scores and credit history to assign a number. Each insurance company has their own method of calculating this score. By looking at specific items on a credit report, the insurer connects each one with either a positive or negative aspect of driving. They do this because many studies have shown that certain items on credit reports relate to the likelihood of people filing auto insurance claims.

Predictive Modeling
The practice of connecting various credit report items with auto insurance is called predictive modeling. While credit was not always used in the past, insurers still used a driver’s age and record to determine rates. For example, individuals who have several traffic accidents or tickets on their record are more likely to file claims in the future. In addition to this, statistics show that younger drivers have more severe accidents due to their lack of experience. These factors have remained true over the years. Many insurers feel that credit should be treated the same way as these other factors. However, it is much harder for consumers to understand their methods. Several court hearings regarding this practice have ended with insurance companies being able to prove that specific credit items really do relate to insurance claims.

Credit Considerations
Each company has rules for what aspects of credit should be used to calculate insurance rates. As it is with the FICO calculation formula, insurance companies assign a specific percentage to various credit items. While the aspects they consider are similar to the credit bureaus’ considerations, the percentages they assign are much different than the FICO method. The common factors insurance companies consider are current debts, types of credit, payment history, length of history, account balances, recent inquiries and bankruptcies.

Improving An Insurance Credit Score
By working on the areas of credit most companies review, it is possible to improve a credit insurance score. Be sure to keep balances low, pay all bills on time, keep old accounts open and close retail store accounts. It is also important to avoid applying for several new credit cards. As a rule, insurers check an insurance credit score every one to three years. Individuals who are working on improving their scores should ask insurers to recheck them before renewing a policy.

Reviewing Individual Credit
Some items on a credit report may be inaccurate. People who have common names often see items that belong to other people with the same name. In addition to this, some people experience the nightmare of identity theft. When this happens, there may be a long list of inaccuracies on a credit report. Be sure to dispute them. If identity theft is suspected, contact the major credit bureaus directly. In some cases, it is possible to receive an exception from an insurance company while a report is being updated. For any concerns or questions about insurance credit scores, discuss them with an agent.

Improving Road Safety with a GPS

There is plenty of controversy about how safe GPS devices are. Whether they increase or decrease safety depends on the driver. However, when used correctly, a GPS can be a great safety addition to any vehicle. The following reasons show good examples of why drivers are safer with a GPS system.

Drivers know where they are going. Lost drivers are usually distracted and dangerous additions to the road. They speed up, slow down and spend more time looking at signs than watching the road. When a GPS is used correctly, drivers can focus on the task of driving while the GPS navigates. If a turn is missed, the GPS will automatically recalculate the route to compensate for it.

Driving at night is safer with a GPS. Most people find it more difficult to drive at night or in low-visibility conditions. Fortunately, a GPS has the ability to warn the driver of upcoming turns or ramps before it is time to use them. The map previews are especially helpful for driving on dark back roads.

There is no need to deal with awkward paper maps. Juggling large paper maps and trying to refold them is a difficult task. Trying to read these maps while driving creates several hazards. Having a passenger try to read the maps may not always be beneficial. This is why it is easier and safer to get a GPS device.

There are special safety features. Hands-free features allow for calling the police while driving. There are also features for locating nearby hospitals, good repair shops and a wide variety of other destinations.

It is easy to choose the right lane. Some streets and freeways are confusing. Certain lanes may turn into exits, and congested traffic makes such situations worse. A good GPS system will tell drivers which lane to stay in, which exit to take and when to turn.

How To Turn A GPS Into A Safety Aid
The first driving task any person should accomplish is to be aware of his or her surroundings. By following some simple rules, drivers can stay aware and maximize the safety features of their GPS devices.

Learn to use the device before taking off. Although most people learn the basic functions before getting on the road, very few thoroughly learn the overall system. Beginners should practice using the GPS and become comfortable with the touchscreen. Make sure the features are optimized for visibility. One mistake many beginners make is keeping their eyes on the screen too long.

Never program the device while driving. Every start-up screen and safety manual reiterates this important tip. Enter the destination prior to departing. If it is necessary to change or cancel the destination while driving, pull over to a safe place to re-program it. Fortunately, some newer devices prohibit re-programming while the car is in motion.

Mount the GPS device in a safe place. When choosing a spot for the GPS, make sure it does not conflict with important sight lines. Positioning it near the dashboard is a good idea.

Always rely on the voice directions. While it may be necessary to occasionally glance at the map, try to rely mostly on voice directions. Avoid staring at the map. If it seems confusing, pull over to study it. 

How to Protect a Vacant Home

When the summer season approaches, many families and couples start planning their vacations. Whether the destination is near or far, it is important to make sure the home is properly protected. Locking the door and setting the alarm is not enough. The following five tips provide useful information for making a vacant home look less attractive to criminals.

1. Make the house look occupied. Although the home will be vacant, it is important to make any unwanted visitors think twice. If criminals think someone is home, they are much less likely to break in. Purchase timers for several wall outlets. By plugging lamps into these timers, it is possible to program the lights to turn on and off randomly throughout the day. Many DVR systems turn the television screen on when they begin a scheduled recording. If this is the case, set the DVR to record random movies and shows. Another way to make the home less attractive is to set up music to play at different times.

2. Have a neighbor check on the house. Everyone should make friends with at least one person or family in the neighborhood. Since most homeowners want to make their surrounding environment as peaceful as possible, they are usually willing to keep an eye on a vacant property. In addition to watching for burglars, they can watch for smoke or other serious problems with the home.

3. Keep windows, doors and all openings closed and locked. While this tip may seem like it would fall under the category of common sense, many homeowners forget to close a window or lock a door before leaving. Even a window that is slightly open may attract a criminal. When the home is vacant, there is no reason to leave any windows or doors unlocked. If a neighbor will be feeding a pet or bringing in the mail, supply that individual with a key. Never leave even a side door unlocked. Burglars also know that keys are hidden in fake rocks, under doormats or on windowsills, so avoid leaving extra keys out.

4. Hold mail and package deliveries. I:t is best to request a hold for packages and regular mail. A package sitting on a doorstep for a long period of time will look very attractive to a thief. Many criminals look through mailboxes for cards containing money, statements with personal information or any other items of interest. It is possible to fill out a convenient hold form online for regular mail.

5. Activate the security system. If the home does not currently have one of these systems, get one before leaving for vacation. In addition to sounding sirens and alerting law enforcement, they detect carbon monoxide and several other problems in the home. There are also wireless systems, which will still alert law enforcement officials if power cords are cut.

Vacations provide great opportunities for families or couples to enjoy time together. However, burglaries and disasters in the home have the potential to cast a pall on these happy memories. They also create needless hassles and expenses. Before taking off for vacation this year, be sure the house is ready.

Making your Smart Phone “Insurance Smart”

You have the phone and the capabilities that come with it. Using the phone to manage all of your insurance affairs is not only smart, it will put you ahead of the game if you need to access your insurance information or if you end up having a claim. There is no better place than having all the information and tools on your smart phone because it is likely with you at all times. The best news is, the resources are there and putting in place what you need is a snap.

The first thing you should do is to see if your insurance company has an app for your phone. If they do, downloading such an app is a no-brainer. These apps are available as a free added value service to you. The best part is that most of these apps have a number of capabilities. This includes nearly everything from accessing your policy information to submitting a claim and everything else in between. For example, if you get into an accident, some apps included the capability to take photos and submit them along with a claims form you complete right on your phone. This means you can submit a claim within minutes after the accident happened, along with all the photos documenting the incident.

While reporting a claims incident is probably the most valuable advantage of these apps, another advantage is having access to your policy information anytime you need it. What is your policy number? When does your policy renew? When is your next payment due? How much coverage do you have? All of this is right at the tip of your fingers. For example, if you need your policy number and information for your job or you are driving kids on a field trip and the school needs it, these apps make it easy to access all this information.

While most insurance carriers do have apps, even if your carrier does not have an app, the phone itself can be a valuable resource. For claims situations, the phone’s camera is just about the best mobile documentation tool you can have. Also, if you are away from home, the ability to connect to the internet to look up resources such as the nearest towing company, the insurance company’s website, and of course your agent’s phone number can be your greatest asset. Best yet, you can use the phone’s map to get directions to the closest place you may need to get to.

In addition to insurance company apps, there are a number of other applications that may be available. One example is a home inventory app that will help you to setup and organize photos or video of your entire home inventory. This can come in handy in the unfortunate event that you have a fire or are burglarized, as insurance companies will need an entire inventory to complete forms when processing the claim. Another example of a helpful app is a document storage and sharing app such as box.net or dropbox.com. These apps allow you to store and share documents and images virtually in what is referred to as a “cloud” format. This basically means that you can upload and save images from a computer to the cloud, and then you will have access to those images from your smart phone or any other computer.

Investing a little initial time to download and setup apps and other resources to make your phone insurance smart is well worth it. It will not only save you time when you need this information, it will allow you to be significantly ahead of the game, even possibly being able to provide enough evidence to prove you are not at fault in an auto accident. You are 95% there by having a smart phone, and the benefits are too great not to take that next step in using the insurance-ready resources that are available.

Important Fire Safety Tips to Avoid A Disaster

In a very short amount of time, a fire can accelerate from a small flame to an out-of-control blaze. Fires destroy thousands of homes in the United States each year, so it is important for all homeowners to take steps to prevent them. It is also important to know what to do when a fire breaks out and how to control it. Research shows that almost 80 percent of structural fires happen in peoples’ homes or apartments. Almost all of these fires are preventable, so fireproofing a home is the most important step to take.

There is much more to fireproofing a residence than purchasing a fire extinguisher and testing smoke alarms regularly. For increased safety, consider the following suggestions:

For Bedrooms
– Replace any mattresses made before 2007 with new ones. The Federal Mattress Flammability Standard was enacted then, and it was made to increase the manufacturing safety standards.

– Avoid using space heaters or electric blankets that are not approved by leading laboratories.

– Make sure electrical cords are not trapped against walls or under objects where heat commonly increases.

– Never put clothing or textiles on top of lamps.

– Make sure closets and other storage spaces do not have loose papers or other flammable materials lying around.

For The Kitchen
– Never leave food unattended in the oven, on the stove or in other kitchen cooking devices.

– Make a habit of using timers for cooking food.

– Avoid leaving flammable items on kitchen counters. Paper towels, cleaning supplies, oven mitts and shopping lists should be stored in safe places.

For Appliances & Electrical Outlets
– Leaving any appliance on increases the risk of a fire, so never leave the home without making sure all appliances are off. This also includes washers, dryers and dishwashers.

– Frequently clean stoves, change furnace filters, clean vacuum filters and empty dryer lint traps.

– Check the cords of fixtures and appliances frequently. If they are frayed, they should be replaced.

– Avoid plugging too many items into one electrical outlet or power strip.

– If fuses blow several times in a short time span, call an electrician immediately.

– Have the home’s wiring examined frequently. This is especially important in older homes, attics and crawl spaces where insulation can be ignited by sparks.

Unfortunately, even the most careful homeowners may experience a fire. Lightning could strike, and a burning tree or bush could engulf a home in flames during a dry lightning storm. For this reason, it is important to have ample insurance coverage. Homeowners and renters should discuss these options with an agent. 

How to Properly Prepare for a Wildfire

In the U.S. today, many homes are being built in wooded areas. Rural plains, forests and mountains are all becoming popular construction sites. Although homeowners in such areas enjoy fresh air and beautiful scenery, they also face the risk of wildfires. Some homes survive wildfires, but many are destroyed each year. However, homes that survive are almost always the result of prepared homeowners. By preparing now, homeowners in every risky area can protect themselves, their families and their homes.

Always practice wildfire safety. Avoid leaving fires unattended, and never start an outdoor fire pit on a windy day. Cigarettes should be disposed of in approved containers. To learn more ways to prevent wildfires at home, contact the local health department, fire department and forestry office. Make sure emergency vehicles have easy access to the home. Signs, addresses and home names should be displayed clearly. When someone else is doing something that may start a fire, report the activity to the fire department. Keep all matches out of the reach of kids, and be sure to teach them about fire safety. Families should also make an emergency escape plan, review it often and post it in a visible area with emergency phone numbers. It is crucial to talk to neighbors about fire safety. If all neighbors are vigilant and informed, it is easier to report flames before they become out-of-control blazes.

Make a safety zone around the house. When designing a home or landscape theme, be sure to select materials and vegetation that help contain a fire instead of spreading it. Non-combustible building materials and water-containing vegetation are helpful aids. Keep grass watered, and avoid letting any vegetation dry out. Keep in mind that conifers are more likely to burn than hardwood trees. When creating this safety zone, make sure it is about 30 feet to 100 feet in length, and it should encompass the entire home. Here are a few additional tips:

-Remove all dead leaves, trees or limbs from your property.
-Trim any tree branches hanging over the home or near chimneys.
-Have the power company remove branches near power lines.
-Remove vines from the home’s exterior walls.
-Clear the areas surrounding propane tanks or grills, and put a screen over the grill.
-Never stack firewood next to the home.

Protect and maintain the home. If there are any chimneys, have them inspected at least twice each year. They should be cleaned annually, and dampers should be in good condition. Have chimneys fitted with spark arresters. For more information about specifications for these products, contact the local fire department. The following steps are also helpful:

-Clean the roof and gutters regularly.
-Keep ladders and fire tools in accessible places, and teach family members how to use them.
-Use mesh screens below floor areas, decks, porches, attics and roofs.
-Make sure a functional dual-sensor smoke alarm is installed on each floor.
-Install fire-resistant shutters and drapes.
-Keep valuables and important documents in a fire-proof safe.

Plan ahead for water needs. Anyone who lives in a wooded area should have access to a small pond, a well, a cistern or a swimming pool. Installing a hydrant is also a good option. Make sure there is a hose long enough to reach from the home to an outdoor faucet or pump. If the home is in an area that freezes during the winter, be sure to purchase freeze-proof outlets.

If conditions seems favorable for wildfires, have a bag packed and ready to go. Have a radio or television on at all times. When evacuation orders are given, follow them immediately. Even if those who stay behind may not feel in danger of catching on fire, the smoke can be just as dangerous. Have a vehicle ready to go. If the garage has an automatic door, open it and disable the automatic function. Be sure to have any medications for family members or pets ready to go. Make arrangements for temporary housing at a hotel, a friend’s house or an emergency housing location. Be sure to call neighbors who might be concerned. Call a family member or friend, and tell that individual about any temporary relocation plans.

Keeping Your Home Safe During Vacation

Vacation is a time every family, couple or individual looks forward to. However, home invaders can easily ruin vacations. When a person gets a call from the authorities about such an incident, it often cuts the trip short. Leaving a home with broken windows or doors can only invite more trouble, so homeowners usually find themselves on the next flight home. Fortunately, there are several simple steps people can take to reduce the chance of a burglary in a vacant home.

1. Make sure all windows and doors are locked. Construct a checklist to make sure each door and window is checked twice before leaving. Every shutter, blind and drape should be drawn shut.

2. Make the home look occupied. There are several ways to go about this task. A cute note letting neighbors know the family is on vacation may seem like a good idea, but it is the same as putting an invitation on the door for burglars. Set timer switches for lamps to turn on and off randomly. If there is a DVR, set it to record shows randomly and turn the television on during the process.

3. Have a neighbor keep watch. Give a trusted neighbor a spare key. Have that individual pick up the mail every day and check on the home. If it is not possible to set timer switches for lamps, have the neighbor turn lights on and off randomly.

4. Make sure the garage is closed and locked. Leaving the door open is the same as putting a bright flashing sign in the front yard notifying burglars that the home is vacant. Keep the door locked. If there are windows, cover them up to keep burglars from seeing inside.

5. Never leave spare keys in the yard. That cute little rock disguised as a key holder may seem clever, but burglars are very familiar with every form of key enclosure. If a key must be left behind, make sure it is in the hands of a trusted neighbor.

6. Arrange for lawn care. Do not tell lawn care professionals that the home will be vacant. Pay them in advance, but instruct them to clean up well. Keeping the yard groomed and leaving some toys or accessories scattered around on the porch makes the home look occupied.

7. Discontinue regular delivery services. If newspapers, milk or other regular deliveries are arranged, put holds on them. Never leave notes on doors for delivery personnel.

8. Do not make vacation plans public knowledge. Never post plans to travel on social media sites. Do not tell any unfamiliar people in the neighborhood about the trip, and make sure local newspapers do not publicize any plans. Only trusted neighbors, close friends or family members should know about travel plans.

9. Have the mail held. If a trusted neighbor cannot pick up the mail every day, have it held. This can be arranged online or by visiting a local post office.

10. Invest in a home security system. This solution may not be compatible with every person’s budget. However, it is a good investment for those who can afford it. Many companies offer free installation as a promotional special. New technology allows homeowners to monitor activities from the Internet or their smart phones. Another option is to hire a house sitter. If this is the chosen option, make sure the individual knows self-defense techniques and has adequate means to practice them.

How to Make a Car Unattractive to Thieves

The rate of car theft is so high today that it would be a Fortune 500 company if stock analyst firms measured it. Although thieves may not be the most upstanding citizens in society, they have excellent organizational skills. Discriminating thieves will not just break into any random car to look around. When they make the effort to steal, they make sure it is worth their time and the risk of getting caught. In many cases, they may be after the vehicle itself instead of the contents of it. What they are after is economic gain, so they choose carefully. Unfortunately, people who own vehicles that are popular to buy usually also own automobiles that are popular targets for car thieves. This information may sound discouraging to many car owners. However, it is important to take the necessary steps to prevent theft.

To be better prepared and protected, vehicle owners need to know what to do to combat organized car thieves. The steps to better protection are not very difficult. The first goal should be to make the vehicle a difficult target. When thieves do a quick assessment on a car, they are likely to pass up one that is better protected. From their perspectives, they want vehicles they can quickly break into and take. There are several simple things car owners can do to make their vehicles less attractive to car thieves.

1. Never leave the keys in the ignition. Do not leave the keys sitting on the seat or in the glove box. Keep the keys in hand while the car is not occupied. More than 10 percent of stolen vehicles are taken because the keys are left in the car or in the ignition. Never leave the car running unattended, and do not leave children in it.

2. Lock the vehicle. About 50 percent of stolen vehicles are taken because they were left unlocked. Modern locks are difficult to pry, and thieves prefer unlocked doors. Be sure the windows are rolled up completely.

3. Do not hide a spare set of keys in or under the car. If this trick is so popular that there are special magnetic key holders in every auto supply store, rest assured that thieves know about them. Many car thieves watch their targets, so they may know exactly where to look for an extra key.

4. Choose attended lots over unattended areas. Vehicle thieves despise witnesses, so they try to avoid them at all costs.

5. Park under plenty of light. If a parking lot is dark and unattended, find a safer location. Thieves love places where it is difficult to be seen.

6. Limit key access in attended lots. Not all parking lot attendants are upstanding citizens, so it is important to be wary of them. When handing the keys over, only give attendants the keys to the door and the ignition. If the vehicle has a trunk with the same key as the door, have one of them changed. By doing this, vehicle owners can put important items in the trunk without worrying about lot attendants stealing them. Make sure any backseat access to the trunk is restricted. Always make sure the battery, spare tire and regular tires are in tact after returning to the car.

7. Never leave valuables in plain view. Leaving a purse or valuable item on a seat is like leaving a steak on the porch when there are stray dogs nearby. Valuable items are just bait for thieves.

8. Use the garage. Vehicle owners who have garages should use them. Thieves are not likely to want to break into a garage and a vehicle. They want something quicker and easier. Be sure to lock the garage and the vehicle.

9. Never leave the title or registration in the car. It is best to carry registration proof in a wallet that will not be left in the vehicle. Keep the title at home in a safe place. Thieves can use these documents to sell stolen vehicles.

10. Use the emergency brake. This increases car safety, and thieves will have a harder time trying to tow it.

Understanding Insurance Needs for a New Car

New cars bring the need for auto insurance, and liability coverage alone will not be adequate. Although it may satisfy the state’s legal minimum requirements, it will not be enough to compensate for most accidents. In most cases, vehicle owners have unpaid loans to think about, so repairs are almost impossible to pay for. Even spare parts are expensive if they are available at all. As soon as a new car leaves the showroom or lot, its value depreciates considerably. For this reason, the majority of vehicle owners feel safer with insurance that covers accidents, theft and natural disasters. Consider the following tips when looking for coverage.

1. Shop Around
People who are serious about buying a new car should start comparing various policies before signing the papers and taking the keys. The first step is to obtain quotes from several companies. These quotes are free, and they offer a reasonable estimate of what premium amounts will be. Some insurers may have cheaper rates than others. Several factors contribute to determining a premium, so it is very important to shop around.

2. Pay Attention To Comprehensive & Collision Insurance
Since people like to save money any way they can, they often skip extra coverage beyond the state-required liability minimums. Comprehensive coverage protects vehicle owners form a wide array of incidents aside from collisions. Natural disasters and several other calamities are covered. There are usually add-on policies available for hail damage or other specific events. Collision insurance provides money for damages resulting from an accident. The funds are available whether the vehicle owner was at fault or not. When compared with the cost of paying for accidents upfront, insurance is very affordable. For example, one accident where a person is at fault and two other injured parties are involved could easily cost over $100,000. If either of the injured parties sustained permanent injuries that require lifelong treatments, the at-fault driver could be in a financial mess for a long time.

3. Think About GAP Insurance
Many new car owners prefer this type of coverage. It provides funds for the difference between the vehicle’s market value and the unpaid loan amount. If a vehicle is lost or stolen, there will be adequate compensation. This is a great choice for people who own expensive luxury cars or have sizable loans to repay. When the amount of money owed is higher than the vehicle’s market value, GAP insurance is a good choice.

Preventing Water Damage & Dealing With Flooding

When spring arrives each year, many homeowners are reminded that flood damage is not covered under a homeowners policy. However, water damage is covered under a homeowners insurance policy. It is important to understand the difference between water damage and flooding. Water damage is defined as damage that comes downward from the top. Although this is not completely accurate in all situations, it is a good rule to remember. If the water is above ground level, the incident is probably covered. However, there is an exception. If damage is caused by a pipe that is letting water drip slowly into the home, it is not covered.

When it comes time to file a claim, it is important to know how the water damage occurred. To prevent further destruction, it is important to clean up the water immediately. Take pictures first, soak up the water and try to dry the area. Although water damage can leave surfaces looking unsightly, neglected areas can leave behind mold with the moisture. Mold is harmful and can ruin sinks, walkways, walls and carpets quickly.

Anyone who has ever tried to clean black mold off of a bathroom surface knows just how important prevention is. Check caulking and sealant around tubs and sinks frequently. If it starts to crack or appears reddish, reapply new sealant. Keep water off the floors by using bathmats. After taking a shower, hang the bathmat up to dry. It is also important to check pipes frequently. A tiny leak can result in thousands of dollars in damages. Even minor plumbing work is not something everyone can do. It may seem easy, but it is very precise work. Anyone who does not have experience should enlist the help of professionals.

Water damage cannot always be prevented. However, homeowners can take several steps to greatly reduce the likelihood of damage by following the suggestions in the previous paragraphs. It is also helpful to check the roof frequently. Water seeping into the walls from the roof can create entire colonies of harmful mold. Unfortunately, there is no way to prevent flooding in some areas. People who have beautiful riverfront properties enjoy some great views, but they may also face the risk of severe flooding. Anyone who lives in a waterfront area or a region where flash floods and rain are common should look into specialized flood insurance. In comparison with the cost of compensating for flood damages upfront, the cost of a specialized policy is very affordable. To obtain this valuable coverage, discuss the details with an agent.

How to Fight & Prevent Mold Growth in the Home

It is important for homeowners to take the right steps to prevent mold and mildew growing in the home. If there is already mold growing, it is important to remove it immediately. Moisture in the basement, attic, kitchen or bathroom creates an ideal place for mold to grow and spread. If mildew is left untreated, it can ruin furniture, fabric and walls. It can also trigger allergic reactions and other physical illnesses in family members. Battling mold growth is an ongoing challenge, but there are a few helpful steps homeowners can take to keep their living spaces free of this annoying fungus.

1. Find the cause of any moisture buildup or leak. To find leaks and moisture buildup, look over the entire house frequently. Be sure to look in places that do not see much foot traffic. For example, closets, empty rooms and corners are all places homeowners should check. Cracks, crevices and folds of drapes are common hiding place for mildew. If there is moisture, find out where it is coming from.

2. After finding a leak, patch it up immediately. Leaks that originate outdoors should be treated when the house is dry. Windows, roofs and exterior cracks should be fixed as quickly as possible. When improper ventilation is found to worsen the problem, consider purchasing air conditioning units, exhaust fans or dehumidifiers. If necessary, install extra insulation.

3. Remove mold or mildew from any surfaces. If there is mold in the carpet, vacuum it up. When doing this, use the brush attachment. This may not be the best way to clean mold if the vacuum itself is difficult to clean. Many newer bag-free models are easy to clean, but older vacuums with bags may hold smells for a long time. Another option is to use a stiff brush to remove mold from carpeted surfaces.

4. Clean the affected area well. Bleach is the best chemical to use for battling mold and mildew. After cleaning away the fungal growth, use a solution of one-fourth cup of bleach to one gallon of water. Never use hot water with bleach. While cleaning, be sure to wear rubber gloves. Use a sponge, mop or spray bottle to distribute the solution throughout the affected area. Rinse the surface with fresh cool water. Set up fans to dry the area thoroughly.

5. Use mold-resistant paint. After cleaning mold or mildew from a wall, it is best to paint over the area. Choose a mold-resistant paint to prevent future incidents. This paint can be found at any major home improvement store or paint retailer. There are also some mold-resistant wood stains available.

6. Air out moldy furniture and fabrics. Furniture, upholstery and drapes that cannot be put in the washing machine should be put outside to air out. Sun exposure will also help, so try to leave them out during the brightest hours of the day.

7. Wash fabrics to remove mold or mildew. Any clothing, curtains, bedding or other fabrics that have mold or mildew should be washed in hot water. Use laundry bleach in the wash cycle. Be sure to follow each item’s washing instructions. If it cannot be washed in hot water, take it to a professional cleaning company that specializes in mold removal.

The best bet for battling mold is proper preventative techniques. Following the first three steps in this paragraph on a regular basis is a great start. Be sure to keep the house properly ventilated at all times. Rugs, towels and other items that get wet frequently should be washed regularly. After using bath rugs, hang them on towel racks or over the shower to prevent mildew buildup on the bottom surface. If bathrooms or rooms frequently exposed to moisture have carpet, consider replacing the carpet with tile. 

New Technologies Make Vehicles Safer than Ever

Many factors contribute to the longer average life spans of today’s world, and car safety is one of the major factors. With new advances in safety features, less people die in accidents today than they did several decades ago. Cars that drive automatically may seem futuristic, but so did many of today’s features several decades ago. Car safety technology is advancing rapidly. The following points provide some examples.

Adaptive Cruise Control
In the past, cruise control features simply set a desired speed. However, a driver paying attention to something else could still slam into the back of another vehicle. With new technology, there are sensors installed in many vehicles’ cruise control features to apply the brakes when drivers get too close. If a collision is sensed, the brakes will be applied hard. The seat belts will also tighten. This is not an invitation for drivers to give in to distractions, but it could prevent such mistakes from costing motorists their lives.

Tire Pressure Monitoring
Many vehicles are now required to have tire pressure monitoring systems. Wheel sensors alert drivers with an audible noise or panel light when pressure becomes too low.

Rollover Prevention
Many vehicles have systems for electronic stability control or preparation actions. New advances go beyond these features. If a rollover is sensed, the brakes will be applied. The throttle will also be automatically adjusted to help maintain control.

Blind Spot Detector
With this new technology, drivers are alerted when there are objects or vehicles in their blind spots. The feature is usually enacted when a turn signal goes on. The driver is alerted by a flashing light on the dash, a light in the mirror, a seat vibration or a steering wheel vibration. The detection system is only for short ranges.

Lane Departure Warning
This feature is similar to the blind spot detector. However, it determines an approaching vehicle’s speed. When a driver changes lanes, there is a warning signal. If the system detects the vehicle going over the lines on the road, it will also initiate a warning for this.

Emergency Brake Assistance
Emergency brake assistance is not the same as an anti-lock brake feature. This new technology allows the vehicle to sense a panic stop. When it senses a stop, additional brake pressure is applied to shorten the amount of time it takes to come to a complete stop. In some vehicles, this system works in conjunction with stability control or cruise control features.

Occupant-Sensitive Dual Airbags
Since each person is different from the next, low-risk airbags are being created to accommodate those differences. They can be used many times and have occupant sensors for deployment. In addition to sensing an occupant’s presence, these devices also sense odd positions. This means deployment will different for someone who is bending over to reach the radio versus a person who is sitting up straight.

Adaptive Headlights
Thermal imaging cameras and infrared lamps are helpful for night vision. New technology allows the vehicle’s controls to change the direction and height of the beams. There is also a cockpit display, which shows images far away that are hard to see.

Emergency Response
There are several new enhanced emergency response features in the latest vehicles. One system turns off the interior lights, shuts off the fuel and unlocks the doors after the airbags deploy. Some systems also turn on the hazard lights or disconnect the alternator and battery terminal. New systems may also include GPS data for emergency response units to use for locating the vehicle.

Rear Camera
These cameras protect children or pets from accidents in the driveway. Several unfortunate reports of people backing over pets or kids in recent years prompted this feature’s development. When the vehicle is in reverse, a camera appears on the dash or on a mirror, and it generates an image of everything behind the vehicle. The image range includes the ground, so small pets will be noticed. This camera feature is also helpful for hooking up trailers or parking. 

Hurricane Preparation

Hurricanes are destructive and potentially deadly storms that can cause a tremendous amount of property damage and, occasionally, people’s lives. Longtime residents of coastal Florida, the Carolinas, Texas, Mississippi,Alabama and Louisiana are familiar with the drill – but there are always new people and always procrastinators every year. Hurricane preparedness takes time! Don’t leave it to the last minute. Here are some things to keep in mind:

Hurricane season is normally June through November. But that doesn’t mean the occasional storm can’t come early or late. Don’t get complacent.

  • Maintain situational awareness. Keep an eye and ear on national and local media, and monitor developing weather systems.
  • Track the projected path of storms, using websites like National Hurricane Center(www.nhc.noaa.gov).
  • Do a risk assessment for your home. Assess vulnerability to storm surge, wind damage, and flooding. A Category 5 hurricane could result in storm surge of 30 feet above ground level in some areas. You can find a storm surge risk map at https://www.nhc.noaa.gov/surge/risk/.
  • Plan on at least a three day wait before substantial government assistance is in place. FEMA can’t put its trucks and trailers in the direct path of the storm. It takes at least three days for state and FEMA resources to be put in place.
  • Cut down any large trees overhanging your house and garage. The tree could fall, taking out part of your house.
  • Expect a run on hurricane supplies in the last 48 hours before the storm. Buy your batteries, bottled water, fuel cans, generators and other supplies before you need them.
  • Invest in hardened windows, shutters and doors.
  • Failing that, buy your plywood well ahead of time, along with a drill and screws to board up your windows.
  • Obey evacuation orders. If you receive an evacuation order, you are getting it because the authorities know they will not be able to reach you in an emergency. Many people in coastal communities are killed by hurricanes – or vanish forever – when they ignore orders to evacuate.
  • Keep your homeowners or renters coverage updated with the current replacement value of your home and belongings.
  • Inventory your belongings. You can use sites like: Lockboxer.com, Knowyourstuff.org (a creation of the Insurance Information Institute) and Stuffsafe.com. These resources are free or very low cost, and will facilitate compensation from your insurance company if your home is damaged or destroyed by a weather event.
  • Keep fuel in your car. Many times, gas stations run out of fuel in the day or so before a storm. If you can’t fuel your vehicle, you can’t evacuate. And you may not be able to function.
  • Get a functional battery-operated radio. Don’t count on cell phones working for a number of days after a storm.
  • You may be without power for as long as two weeks and sometimes longer. Keep nonperishables, batteries and flashlights.
  • Keep your generator outdoors. Every year, people die from carbon monoxide poisoning because they moved their generator indoors to protect it from theft.
  • Understand your generator’s capacity. Generators have a limited load. This is especially important to know when you start up electrical items connected to the generator, because startups cause a spike in electrical demand.
  • Know your neighbors. Your neighbors may have a harder time preparing or evacuating from storms than you do, because of frailty, disability, young children, poverty or lack of reliable transportation.
  • Look out for family members of emergency responders. Police, fire department, National Guard members and medical personnel often have to concentrate on preparing for the mission, and have less time to attend to their own homes and families.
  • Know your community emergency management contacts. You can find an online listing at https://www.ready.gov/community-state-info
  • Don’t underestimate tropical storms. Just because it’s not a hurricane doesn’t mean it can’t do a lot of damage locally. Tropical storms can dump as much rain as a hurricane.

By understanding these guidelines, you can be an asset to your community in the event of a hurricane, instead of a drain on emergency resources. You will also have an easier time getting reimbursed by your insurance company for any damage done, and be doing your part to keep overall hurricane insurance premiums down.

Taxation of Repairs versus Improvements

Repairing versus improving a rental property considerations go beyond initial cost considerations; it also can reduce or increase your tax burden. The Internal Revenue Service (IRS) offers guidelines to determine whether work done to real estate rental property is considered a repair or an improvement.

Repairs

Repairs are defined as something that keeps property in working condition. Calling Handyman Fred out to fix the abovementioned dishwasher is considered a repair to the IRS. Repairs are a business expense and are fully deductable in the tax year the repair was made. Handyman Fred’s $100 charge for labor is $100 off your tax burden.

Improvements

Improvements are generally defined as something that increases the overall value of the property. Examples include:
• replacement
• expansion/new construction
• substantial rebuilding
• restoration

It is considered a capital outlay by the IRS, something done “having a useful life substantially beyond the tax year” according to Terry Myers, J.D. and Dee DeScherer, J.D. The IRS considers repairing the broken dishwasher to be a maintenance expense. But Ripping out the old dishwasher and installing a new appliance is considered an improvement. Handyman Fred charged you $500 for the dishwasher and installation. That $500 gets added to your tax basis in the property. Under MACRS rules, you normally depreciate the dishwasher over 5 years. Over your next five tax years, you are able to take $100 off per year off of your taxable income. (Accelerated guidelines not applied in this scenario).

Which Option to Choose?

Are you going to repair or are you going to improve your property? First, reflect on how long you are going to own this property. If you’re planning to sell, consider the following questions:

• Will you own it long enough to depreciate the full value of the improvement?
• Will the new market value substantially increase your capital gains taxes?
• Will you roll the property over into a 1031 exchange to avoid paying the capital gains taxes?

If you are planning to keep the property,

• Will the repair hold up long enough to keep from being a headache to you and your tenant?
• Does not replacing the item cause additional problems? For example, will a broken dishwasher cause water damage to the subfloor, costing you even more in the long run?
• How does does the cost of repair or maintenance compare to the replacement/improvement cost?

Note: Keep meticulous records and receipts for all work done to your property, whether repair or improvements. Every dollar you spend in improving the property adds to your tax basis in the property, which can pay off handsomely later when you eventually sell it. Contract with a tax attorney or a Certified Public Accountant (CPA). Let the professionals do the work you hire them for: By hiring a professional you are better able to correctly categorize the work done to your property and therefore take advantage of all possible deductions and depreciations allowed you by law.

How to Avoid Colliding With a Moose or Deer

Many insurance claims are filed each year as the result of collisions with deer or moose. Although some accidents may happen regardless of precautions, most can be avoided with heightened awareness. Follow these tips to avoid a collision with a moose or deer.

1. Pay attention to the warning signs. Waterways, forested areas and plains marked with deer or moose signs are the prime places to encounter these wild creatures. It is important to understand that they are more likely to appear during certain months. If it is hunting season, keep in mind that startled deer may run across the roads more frequently. They also run more when there are fires nearby, so be aware of any wildfires in the area.

2. Travel at a safe speed. When approaching curved roadways or areas with more hills, slow down. Drive slower at night. Keep in mind that it takes several seconds to stop completely when traveling at higher speeds. Slower speeds can reduce the likelihood of a collision, and slower speeds also lessen the impact of an unavoidable collision.

3. Drive defensively at all times. Practice stopping the car within the length of the headlight beams. Do this in a safe place with little to no traffic. Always drive at a speed where this is possible to do at night. Be ready to react quickly, and always have a plan for what to do. For example, if a deer or moose stops in the middle of the road, brake quickly without swerving. Many accidents happen because people swerve into trees or other cars instead of actually hitting an animal.

4. Scan the landscape frequently. During daylight hours, the key to preventing a collision with a moose or deer is spotting it before it reaches the road. These creatures often run through fields in the late fall or winter months, so they may blend in better with the dead vegetation. Always watch for movement, and be prepared to stop suddenly.

5. Use the horn when needed. If a deer or moose is running near the road, honk the horn. In most cases, the animal will freeze or move away from the noise.

6. Take the proper steps after a collision. Driving defensively is the best way to prevent a collision, but it is important to know what to do if a collision occurs. First, pull over to the side of the road. Put on the hazard lights and make sure the other passengers in the vehicle are conscious. Treat injured passengers accordingly. It is important to keep a first aid kit available in the vehicle. Put road flares out if they are available.
If the animal is dead and lying in the road, try to angle the vehicle enough that the headlights cast light on it. This may help prevent other drivers from hitting the animal. Never approach an injured animal. It may gore, kick or attack a human out of fear. Stay in the vehicle, call the police and wait for help to arrive. If anyone is injured to the point of needing medical care immediately, call 911.

Addition Tips To Consider
Although these six tips are the most important to follow, it is also helpful to know more about deer and moose behaviors. Many of these animals travel together, so there may be more following what appears to be a lone animal. Rest assured that if one deer or moose is seen alone, there are more within one mile. Even if a deer or moose is spotted off in the distance, slow down immediately to enhance alertness and safety.

In some states, oncoming motorists will alert other drivers of dangers in the road ahead. To do this, they usually blink their headlights quickly once or twice. If this happens, slow down and be alert. Tired drivers are more likely to hit deer, so pull over and rent a motel if sleepiness is overwhelming. Do not count on deer whistles to be effective. They have often fallen short of the promises printed on their packaging. These whistles will not work with moose. Keep these tips in mind to avoid submitting an insurance claim. 

Preparing Your Home for Disaster

When it’s hurricane season in the Gulf states and Hawaii, it’s also wildfire season throughout the west. Earthquakes are always in season, and flooding never goes out of style. Are you ready for the next disaster, whether natural or man-made? A few inexpensive preparations you can do in just a few hours can pay big dividends when disaster strikes.

Designate a Rally Point. Disaster may strike while your family is separated.  Cell phones may not work. Work out a plan to meet somewhere safe in the event of a disaster. Explain it to your children. You can even practice it with them. Designate a back-up rally point, other than home or school, in case these obvious locations are inaccessible or dangerous.

Pack Go-Bags. These are bags pre-packed with three days’ change of clothing, non-perishable food and water, hygiene supplies, and key insurance documents. You can keep them in the trunk of your car or in an easily-accessible place in your home or garage. The idea is to be able to grab them in seconds and get away.

Get a Hazard Assessment. Many homeowners’ insurance companies will help you with a free or very inexpensive on-site inspection to assess your home’s vulnerability to common hazards, including water damage from flooding, wind damage, theft, or fires. Contact your agent and take advantage of these programs.

Get a generator. Don’t count on being able to get one when there’s already a hurricane warning afoot or the disaster has already struck. Buy your generator ahead of time. Read the manual and understand how to use it, and to properly plan the voltage loads so as not to overload the generator. And never operate the generator indoors. Also, don’t attempt to plug your generator’s output into a wall socket to power your house. This can be extremely hazardous.

Conduct an insurance audit. Sit down with your agent and go over your existing coverage, deductibles and exclusions. Your home may have appreciated in value since you last reviewed your coverage. Ensure your coverage reflects the actual replacement value of your home and other valuables.

Inventory your belongings. If your home is destroyed by a tornado, fire or flood, many of your valuables will likely be damaged beyond repair, and perhaps beyond recognition. To ensure prompt reimbursement for your lost or destroyed property, it’s important to inventory and photograph each valuable item. Tip: Don’t store the data at home – you don’t want your data destroyed by the same disaster that destroyed your home and property.

Get a battery-powered radio. Don’t count on having electrical power for some time after a severe disaster. In some instances, you could be without power for weeks. Don’t forget batteries.

Fill water bottles. Keep a store of fresh bottled water on hand – at least three days’ supply is optimal. That’s typically how long it takes the Federal Emergency Management Administration to move bulk supplies into a disaster-affected area. You may also consider filling your bathtub and water jugs with tap water. Be prepared to boil drinking water, even if you don’t have gas or electric power. You may need Sterno or propane stoves to do this.

Visit Ready.gov. This is the portal for the Federal Emergency Management Administration (FEMA). The site contains a number of useful tips, checklists and resources for disaster preparation. FEMA also provides a number of tools to help you prepare and educate your children as well. Different states also have their own websites that contain state contact numbers and resources. The state government resources usually contain additional information that pertains more specifically to hazards common in these states. That is, California residents will find more information on earthquake preparedness and not so much on hurricanes, while Florida residents will find a great deal on hurricane preparation and not much on earthquakes.  Midwesterners and Southerners will find additional information on tornados, and northern states will devote more information to snow and ice-related events. 

Usage-Based Auto Insurance Benefits Drivers & Insurers

Big changes are coming to the auto insurance industry. These changes will result in enhanced pricing sophistication, increased profitability, better control of claim costs and differentiation between policyholder services and products. In addition to these changes, the outcome will result in a much better ability to improve the behavior of drivers. That will lead to a great reduction in the frequency and severity of accidents for policyholders.

Many larger insurance companies are already utilizing applications for usage-based auto coverage, which is commonly referred to as UBI. Midsize and smaller companies are expected to follow suit. Since the benefits of this new technology will be phenomenal, insurers are jumping on board with the changes quickly.

Although the long-term benefits are attractive, the main benefit is to obtain information that eliminates guesswork. This means insurers can identify drivers’ risks. Easier identification means insurers can measure the risks, and they can then take steps to reduce those risks. The benefits are not only for insurers. Drivers who have low-risk profiles and impeccable records can certainly benefit, but even drivers with tarnished records will favor the change. This is because it affords them the opportunity to learn safer driving behavior, which will lower their rates over time.

The following points sum up all of the benefits for drivers:

– Lowered frequency of accidents.
– Lowered severity of accidents.
– Better tracking technology to recover stolen vehicles.
– Quicker emergency response times after accidents occur.
– Less driving, energy consumption, pollution and traffic congestion.
– Better accuracy in deciding which party is at fault during claim settlements.

However, it is also important to look at the challenges this technology brings. Storing information, transmitting, analyzing and scrubbing the large amounts of data can be a tremendous task. While there are programs that cost less, the UBI technology can still be costly. In addition to this, products must be specifically designed to make sense from an economic point of view. This is true for policyholders and carriers.

So, what is in store in the future? Although there are obstacles to overcome, consumers’ acceptance of UBI has been very promising. This is especially true for consumers who have expressed the desire to improve their abilities on the road. If they want to demonstrate that they have learned how to drive responsibly, they may do so to obtain a lower rate. Insurers acting now to adopt UBI will be in the best positions for bringing and keeping the best customers. However, insurers choosing to enter the game later will have less selection and more struggles. 

Insurance & Lawsuit Considerations for Homeowners with Dogs

More than 30 percent of homeowners insurance claims result from dog bites. In 2011, insurers paid out more than $450 million for dog bite claims. Research shows that the average payout for a dog bite claim was about $29,000 in 2011. That number reflects more than a 12 percent increase since 2010. Between the years of 2003 and 2011, the average cost of a dog bite claim increased by more than 50 percent. This increase was due to rising medical costs and larger settlement award policies. However, awards have risen far above the normal rate of inflation. This information should have every homeowner who owns a dog concerned.

There are three types of laws regarding dog owner liability, but not every type of law applies in each state.

One Bite Rule
In some states, a dog’s first biting incident does not mean an owner will be held liable. However, the second incident will not be excused. Owners will be liable for dogs showing vicious propensity, which means such dogs repeatedly show aggressive behavior and try to bite others. Although some states still allow one bite to go unpunished, many states are doing away with this rule and holding owners liable for all incidents.

Dog Bite Statute
This law states that dog owners are liable for all injuries or damages resulting from a dog bite, and provocation of the dog is not considered.

Negligence Laws
Some states rule that dog owners are liable only if they are careless in controlling the dog. For example, a person who is bitten after entering a yard uninvited may not have a case, but a neighbor who is bitten when the owner is present and fails to restrain the dog will have a case. In almost every state, dog owners are not liable for injuries of trespassers who are bitten. This is especially true if the owner displays signs warning others that a dog is on the premises.

When owners are liable for dog bites, they must reimburse the injured party for lost wages, medical bills, property damage and pain or suffering related to the bite. Although some people buy dogs to protect their properties, security systems and deadbolt locks can be less expensive. In addition to this, these features can actually lower insurance premiums.

This does not mean homeowners should take their beloved pets to the pound. There are ways to stay properly insured and avoid costly legal battles. Most liability policies cover between $100,000 and $300,000, so homeowners are responsible for any amount beyond that. Keep in mind that the no-fault medical coverage is also awarded. Although most insurers are willing to work with dog owners, they will issue a higher premium after the first biting incident. In some cases, the dog may be excluded from coverage. Some policies exclude certain breeds that are known to have vicious tendencies. Not all insurers will drop the dog, but some may require dog owners to take behavior classes with their pets.

Since many lawsuits exceed the maximum insurance allowance, it is best for homeowners with dogs to buy an umbrella policy. This type of insurance is similar to a safety net. When the maximum benefits in the homeowners policy are spent, the umbrella policy covers additional expenses up to a certain amount. Umbrella liability usually ranges between $1 million and $10 million. In addition to being properly insured with homeowners and umbrella policies, it is wise to take steps to prevent dog bites. The following tips are helpful:

– Purchase a muzzle for the dog to wear when introducing it to new people. Many pet stores sell muzzles that flex enough for the dog to drink water, breathe or vomit, so they are not dangerous to the animal.

– Keep the dog confined while guests are present. Dogs can stay in crates, other rooms or outdoors.

– Never leave the dog alone with visitors’ children. Dogs think differently than humans and may bite fearful children or timid adults.

– Enroll the dog in professional behavior training and socialization classes.

– Have the dog spayed or neutered to reduce hormones related to aggression.

How Reckless Driving Affects Insurance & How to Get a Better Premium

Inattention, driving under the influence of alcohol and excessive speeding are all reckless behaviors that have bad outcomes. Such drivers ultimately cause accidents, which may end the lives of innocent people. In addition to the expenses and punishments stemming from legal trouble, reckless drivers also experience higher auto insurance rates. Before this happens, their licenses may be suspended for a period of time. To have a license reinstated, a driver must usually take classes and pay a fee. Auto insurance following such a reinstatement is much more expensive than traditional rates.

When auto insurance companies calculate premiums, the most important issue they research is the customer’s driving history. Speeding tickets and auto accidents usually stay on a person’s record for more than three years. Age, gender, driving frequency, parking location, car type, desired coverage and credit history are also considered. Keep in mind that insurers use a different type of credit scoring than lenders do.

Although people do not have control over their age or gender, there are several other ways to keep rates down and prevent reckless driving. Safe driving is the key to lowering rates. To practice safe driving, policyholders should refresh their knowledge of road rules. Free booklets are available at any DMV office or online. Drivers should also avoid speeding and try to stay out of accidents. Driving defensively is the best way to avoid an accident. One important thing every driver should do is avoid cell phone use in the car. Texting, talking without a hands-free set and studying digital maps while driving can lead to accidents. Every driver should remember that reckless driving is not only expensive but also deadly.

Thousands of people die in vehicle crashes each year. In about 20 percent of cases, speeding is a factor. About 15 percent of crashes result from driving under the influence, and almost 10 percent are due to inattention. If drivers feel their abilities are lacking, it is best to enroll in driving classes. After receiving a ticket, there are also several steps to lowering insurance costs.

Request higher deductibles. For collision and comprehensive coverage, a higher deductible will mean a lower premium. It also means paying more upfront for an accident, but that is a good incentive for drivers to be more careful. Raising a deductible may help a driver save up to 40 percent.

Combine auto and homeowners insurance policies. Buying a homeowners or renters policy from the same company issuing the auto insurance results in a discount. If more than one vehicle is insured, there may be an additional discount.

Lower coverage for older cars. Some people have one or more older cars that are rarely used or just collect dust. If this is the case, lower the coverage for these vehicles. Every state requires liability coverage, so be sure to stay within the state’s minimum requirements.

Ask about discounts for low mileage. Insurers may offer discounts for drivers who do not drive excessively. People who carpool to work usually also qualify for this discount.

Improve and maintain credit. Insurers use a special formula for calculating the credit score they use, but a good FICO score and good credit history mean a better insurance score.

Ask about group insurance. Many insurers offer group discounts for drivers who obtain insurance from their employers’ plans.

Insurance companies have different discounts, and some companies have more offers than others. It is best to ask an agent about any other available offers. For example, some students qualify for discounts when they maintain a good grade point average. To enjoy a better rate, be sure to follow these tips and practice safe driving at all times. 

Why Hurricane Deductibles are so Important

People who live in coastal states need to consider their hurricane deductibles, which may be found on a homeowners insurance policy. This type of deductible determines how much policyholders must pay upfront before the insurer picks up the rest of the tab. Hurricane deductibles are listed in clear wording on a homeowners policy.

Hurricane season starts in June each year and lasts until November. Although it is best for homeowners to check their deductibles before the start of this season, it is good to also check it anytime there are questions. Every coastal homeowner should know what their policy includes. Although hurricane coverage used to be a separate policy, it is now included in most homeowners contracts in 18 coastal states.

Typical fire, disaster and theft deductibles are listed as flat dollar amounts. However, a hurricane deductible is usually listed as a percentage. The amount may vary between one percent and five percent of the insured value of a home. This means a policy with a five percent deductible on a home insured for $600,000 would require the policyholder to pay $30,000 upfront before insurance benefits kick in. It is also important for homeowners to understand when their policy benefits begin.

Deductibles are triggered by specific criteria. First, the National Weather Service must issue a classification of a Category One storm making landfall. Insurers may also have other criteria. Many companies have criteria for severity classifications. Deductibles vary by insurer and state. Since policies differ, homeowners should check their own policies. It is never safe to assume that a policy is identical or even similar to a friend’s. If there are questions about the deductible, what it covers and how to find the wording, it is best to discuss these concerns with an agent.

Insured homeowners in coastal areas may have the option to pay higher premiums in exchange for a set deductible. This means a dollar amount will be assigned instead of a percentage. This often depends on how close the dwelling is to the ocean. In high-risk areas, many insurers will not sell a homeowners policy without the inclusion of hurricane coverage. To find out if there is a flat amount available in exchange for a higher premium, discuss the option with an agent. It is important for homeowners to understand what hurricane coverage is and where it came from.

In 1992, the famous Hurricane Andrew brought more than $15 billion in insurance losses. As the most expensive storm in history for insurance companies, it sparked the creation of catastrophe-risk computer modeling. This showed that homeowners were vulnerable to extreme risks in coastal areas. Insurers also had trouble getting insurance for their businesses, which is called reinsurance. By requiring policyholders to bear a fair share of the costs, insurance companies were able to get insured again and offer coverage to consumers.

Notify an Agent Before Starting a Remodeling Project

In the upcoming year, home improvement activity is expected to rise. For those who plan to be a part of this rising number, it is important to have the right type of insurance and the right amount of coverage. Insurance should be in place during and after construction. Anyone considering a remodeling project should contact an agent before the process begins. Many people must alter their coverage or add more. Waiting until the project starts or is finished can be an expensive mistake, so take the following four important steps to avoid an expensive problem.

1. Discuss home improvement plans with an agent. Ask about updating a homeowners policy, and ask whether or not other types of insurance will be needed for protection during the construction process. Only those who are qualified to perform DIY projects should attempt them. People who are not construction workers should not help unless there is sufficient liability coverage for their protection. Many homeowners must raise their no-fault medical protection limit for such workers. For a larger project, it is best to consider a course of construction policy. This covers the home during the building process from weather or theft damages.

2. Make sure the contractor is covered. Before allowing a contractor to start work, ask to see his or her insurance policies. Contractors should carry both workers compensation and commercial general liability insurance. If one of the insured contractor’s workers sustains injuries, that individual will not be able to sue the homeowner. Contractors who are unwilling to provide insurance documents should never be hired.

3. Store all receipts and records. Be sure to take photographs before, during and after the remodeling project. This provides a virtual record of what the property looked like during each phase. Hold on to all contracts from contractors, and be sure to save the receipts for all materials purchased. Keep receipts for any other belongings bought for the home during the project.

4. Update insurance policies after the project. Let an agent know when any home improvements are made. Insurance amounts may need to be increased following a major renovation. All of the records and receipts may need to be copied and sent to the insurance company. This helps them assess needs and assign accurate values for the improvements. An agent will be able to recommend a floater or endorsement for more expensive items. More liability coverage may be needed if a pool or spa was added. An umbrella policy may be the right solution for this situation.

Be sure to ask an agent about discounts. When people install smoke detectors, stronger doors, deadbolt locks or burglar alarms, they may qualify for discounts. Some insurers also offer larger discounts to people who install more sophisticated burglar alarm systems, sprinkler systems, fire alarm systems or other devices. People who update their plumbing, electricity, roof or windows may also qualify for discounts. This is especially true if any energy-saving features were installed. In areas prone to strong storms, shutters, reinforced roofs and shatterproof windows may also result in discounts. If a remodeling project is the result of a growing family, be sure to consider other insurance changes that may positively benefit a new spouse, baby or adopted child. 

Your Mortgage, Your Homeowners Insurance and Forced Placed Coverage

When you take out a mortgage, part of the agreement is that you will purchase adequate homeowners insurance coverage. Adequate coverage usually means that you are insured for the replacement of your home to 100% of replacement value or that your home has enough coverage to address the amount of the loan. While the latter may mean that the mortgage company wants enough coverage to pay the outstanding loan balance, most homeowners policies do not cover the loan amount, just the rebuilding of a home. In a nutshell, the mortgage company wants to make sure that they are protected if your home suffers an insurable loss such as fire or water damage. If you are in a flood zone, they will require you to get separate flood insurance, as regular homeowners policies exclude damage caused by flood and ground water.

Your mortgage company will, at a number of times, prompt you to provide proof of home insurance. This typically happens when:

  1. Your first purchase your home; this will be done through your title company.
  2. At the annual renewal; however most homeowners policies automatically send the lender a copy of the renewal.
  3. When you refinance and there is a new lender, this is done by the title company.
  4. When a policy is cancelled, either at the renewal or for non-payment.

When you get a request, you should always forward the request, along with any instructions, to your homeowners insurance agent. If a title company is involved, you should always provide your agency information, phone number, fax and email address to the title company. If you are purchasing a new home, you should always contact your broker at least 3 weeks prior to make arrangements for a policy and notify your title company as soon as you can. Getting the request to your agency right away will allow for fewer problems and a quick resolution to complying with your homeowners insurance requirements.

Should there be any gap in your homeowners insurance, the mortgage company will force place coverage on your home and have the right to do this since it is in the mortgage agreement. This forced placed coverage is usually very expensive and more likely than not will protect the mortgagee’s interests, not your interests. The bottom line is, the coverages are probably very basic, will probably not protect you to the degree a regular homeowners policy would protect you and probably does not include liability insurance. The reason why these policy premiums are very expensive is the policy is not underwritten, and because of this there may be an assumption that you cannot get coverage on your own and that your property may be high risk.

To avoid this expensive forced placed coverage, attend to your lenders homeowners insurance requirement right away. Even if you have a three-day gap in your homeowners insurance, they can still come back and charge you for those three days, and it’s not cheap. Your agent is here to help you avoid things like this from happening. Maintaining good communication, either via email or phone, is the key for things to go as smoothly as possible.

How Much Should Consumers Really Pay For Car Repairs?

With the average vehicle on the road being about 10 years old, it is apparent that Americans are keeping their cars longer these days. There are benefits associated with owning an older automobile. Drivers with older cars do not have to worry about making loan payments, and insurance costs are much lower. However, there are also disadvantages. Unexpected expensive repairs can drain a savings account. In some cases, the repairs may cost more than what the car is valued at. There are several Web sites with helpful resources for evaluating repair estimates.

Both RepairPal and AutoMD are free to use. RepairPal, which was started in 2007, is run by auto enthusiasts. Estimates from this company are based on labor rates, cumulative car repair invoices and prices of parts. An online auto parts retailer owned by U.S. Auto Parts operates AutoMD. The staff consists of certified mechanics and auto data specialists. These workers use the data gathered from average labor costs for each zip code, real-time pricing data and repair time estimates. DIY repair cost estimates are also available from AutoMD. Both companies offer zip code estimates for repairs. Estimates also include those of independent mechanics and dealerships for comparison.

Researchers conducted tests on both sites. They found that sample repair data entered into both systems produced similar estimates. AutoMD’s estimate was comprehensive. In addition to time estimates, it included price ranges for parts and labor. Prices for both dealers and independent mechanics were included. The estimates provided by RepairPal are for a range of overall costs. In addition to this, there is a breakdown of costs for labor and parts.

The pages on these sites are printable, so consumers can take the information they collect to dealers or mechanics. People who are also in search of mechanics can find local shops by searching a zip code on the site. AutoMD’s list shows request statistics, the number of mechanics at various shops, hours of operation, map location, shop details and contact information. In addition to specifying whether shops install parts provided by AutoMD partners, the site specifies whether a shop uses Chilton or Mitchell labor standards. RepairPal’s list is not quite as extensive. However, map locations, hours, reviews and specialties are included. Both sites are helpful to consumers, but it is still important for people needing auto repairs to decide whether they should use parts from a dealer or aftermarket company.

6 Promising Car Safety Innovations

They may not make engines the way they used to – but they’re making cars safer and more crash-proof per pound than ever before.  Innovations in materials, GPS technology and microchips have made a wide variety of potentially life-saving technologies cost-effective and affordable for the car buyer.

Car safety devices and features can be separated into two categories: Passive devices such as seat belts and airbags, and active devices, which proactively help drivers avoid accidents, not just survive them.

In some cases, insurance companies may offer a premium discount for owning vehicles with some or all of these safety features:

Intelligent Airbags

In the old days, airbags could prove almost as dangerous to smaller drivers and passengers as the crash itself. They opened with such force that they could injure smaller and lighter crash victims. The new generation of bags can sense the size of the crash victim, and their forward speed, and automatically make adjustments to compensate, resulting in a safer airbag.

Distance Control Assist Devices

This active device uses radar or laser technology to gauge the distance between your car and the one in front of you. The computer system also monitors your forward speeds and your speeds relative to one another. If the distance between you is shortening rapidly, you will hear an alarm. Some models will even begin to move the gas pedal upwards to make it easier to switch to the brake.

Lane Departure Warning Devices

Lane departure warning devices use optics to monitor lane markings – and automatically generate a warning tone if you begin to drift out of your lane. Some higher end cars will even nudge the car back into the lane. These devices have been in use in commercial truck fleets for years, but are now making their way into the luxury sedan market.

Anti-Rolling Technology

Anti-rolling technology takes aircraft automatic pilot technology and applies it to your car. A system of sensors monitors whether your car is tilting one way or another – and automatically makes adjustments to prevent the car from flipping. The car may apply a combination of measures, such as reducing throttle, applying the anti-lock brake system, and adjusting steering to prevent a flip – and perhaps save you from a deadly injury. Chrysler calls this technology “rollover mitigation.” General Motors refers to this technology as “rollover avoidance.”

Accident Notification Systems

This is a passive technology, but can be a critical one:  It will call emergency responders when you can’t. If your car is in an accident, the accident notification system will automatically notify the manufacturer’s cellular link service (think “OnStar” but there are others), which will then notify rescue personnel using global positioning system technology. So if you are incapacitated after a wreck, or even if you forgot to charge your cell phone, help is on the way.

Emergency Brake Assist

An emergency brake assist feature uses computer technology to determine whether a brake application is a gentle, routine slow-down or stop, or whether it is a panic brake situation. If your brake application is combined with a frantic movement of the steering wheel, or if your foot release on the gas is faster than usual, or you are hitting your brakes unusually hard, a computer will automatically channel the emergency brake assist – putting more hydraulic pressure on the line and applying brakes faster and more powerfully to stop your car’s wheels.

Obviously, different carriers have different pricing systems – and discounts offered for equipping your vehicle with safety features vary from state to state, even with the same carrier. The newer features are still winding their way through the system, but many carriers offer discounts for anti-lock brakes, airbags or anti-theft devices – all of which have proven effectiveness in lowering claims.

It may be time for a policy reassessment. Can you qualify for a discount? Contact your auto insurance agent today and find out. 

Understanding Carfax and What is Included in a History Report

Carfax is a commercial service offering vehicle history reports to businesses and consumers. The company serves both the United States and Canada. Carfax was founded in Missouri in 1984, and the company is now headquartered in Virginia. One of the original purposes of the company was combating odometer fraud. The latter part of the company’s name came from their signature reports, which were sent quickly via fax machines. However, the most popular way to obtain reports today is over the Internet. To this day, Carfax is still a trusted name among consumers and used auto dealers.

Carfax Services
Carfax offers four free services: lemon checks, record checks, problem car checks and recall checks. While the free services can be helpful in gathering only the information indicated in their names, they do not include all of the detailed data provided in a full Carfax report.

The history report is the company’s most detailed product. It includes data about previous wrecks and other recorded incidents. With over 34,000 sources, the company has access to data in every American state and 10 Canadian provinces. Police departments, Highway Patrol offices, DMVs, auto shops and several other agencies. Information is connected to a vehicle’d identification number, which is commonly called a VIN. Reports include all or some of the following details:

– History of flood damage.
– Past and present title data.
– Total number of owners.
– Any available odometer readings.
– The emission inspection history.
– All available service records.
– Whether the vehicle was ever labeled a complete loss.
– Whether the vehicle was ever part of a rental car fleet or other fleet service.
– Reports from accidents the vehicle was involved in.

Carfax Limitations
While a Carfax report is a valuable tool for all auto shoppers, it is important to keep the other crucial details of buying a car in mind. Consumers should still take a vehicle for a test drive in the city and on the highway before making a purchase. It is also wise to take a vehicle that is being considered to a trustworthy mechanic for an inspection. Although a Carfax report has details about the car’s past history, it may not contain information about its current condition. For example, a car could have a completely clean history, but it could be sitting on the lot due to an engine problem that causes the warning light to come on from time to time. Whether the dealership is unaware of the problem or they choose not to disclose it, potential buyers may not know anything is wrong if it does not come on during a test drive. By having a mechanic inspect the vehicle, it is possible to pinpoint several problems.

When shopping at a used car dealership, it never hurts to ask if the company has recently received a Carfax report for the vehicle. In some cases, they may provide it, but do not count on receiving one for free. However if you cannot obtain one from the dealer or you are buying a car from a private party, getting a Carfax report in relatively inexpensive may be well worth the investment. 

New Catastrophe App Helps iPhone Users Prepare For The Worst

The Insurance Information Institute released a free mobile disaster preparedness app that provides safety tips, communication tools and checklists for common disasters. This helps people prepare for severe winter weather, wildfires, earthquakes, hurricanes and other types of disasters.

One of the best ways to make it through a catastrophe is to be prepared beforehand. The Know Your Plan app has several checklists containing preparedness steps and property protection steps. App users are also able to build their own customized checklists from scratch. Every list allows users to set completion dates, record progress and add personal notes to various tasks.

There are also other options. App users are able to share their lists with friends and family members. In addition to this, there are resources available for planning evacuations. This also includes evacuation of pets. The helpful app also provides up-to-the-minute data about disaster details and local evacuation routes. Know Your Plan is available from iTunes, and it can be found by searching for the Insurance Information Institute on the iPhone App Store.

During the past 10 years, insurance companies spent almost $250 billion in settling the claims of disaster victims throughout the United States. The overall cost of catastrophes is rising continuously, so insurance companies are looking for every helpful tool they can find to help speed up the repair process and prevent unnecessary injuries to humans.

The I.I.I. partnered with the Insurance Institute for Business & Home Safety to develop property mitigation information. The IBHS is a respected organization specializing in building science research and communications. This organization tries to reduce the negative effects of disasters through research, maintenance, improved construction and encouraging preparedness.

In 2011, many communities throughout the United States experienced record-breaking catastrophes. The IBHS and the I.I.I. want to lessen the amount of future damage from such strong catastrophic occurrences. With so many people using the iPhone, the two organizations knew it would be possible to reach out to millions of people to help them take control of risks through proper preparedness. Some of the new app’s features include the following editable checklists:

– Earthquake
– Flood
– Hurricane
– Tornado
– Wildfire
– Severe Cold
– Emergency Kit
– Evacuation
– Blank Checklist

There are also note-taking features for individual tasks, and users have the option to select due dates for their checklists. A countdown feature is included for progress tracking. There is a Google Crisis Response feed allowing access to emergency information from local sources.

This app is the second in a series of apps created by the I.I.I. The first app is Know Your Stuff, and it includes home inventory information. Know Your Stuff is available for both Android and iPhone users. For more information about preparing for catastrophes, discuss concerns with an agent. 

The New WreckCheck App Helps Consumers File an Accident Report and Avoid Identity Theft

A free new mobile app released by NAIC lets people protect their property and their identities after experiencing a traffic accident. Research shows that very few people know what steps to take after an accident. In addition to this, the majority of the population does not know what information to share and what information to avoid sharing following a collision. By giving too much personal information to another party, people may put their identities at risk.

As a rule, individuals should only share their names, the names of their insurance providers and their insurance providers’ phone numbers. Any additional information shared can put a person at risk. Research found some of the most common mistakes people make. The most common misconceptions and their resulting risks include the following:

– About 25 percent of people were willing to share their personal addresses. However, this gives identity thieves an exact location to go through mail and garbage containing personal information.

– Almost 40 percent of consumers felt they must share the data on their driving licenses. In addition to this, one of every six people interviewed were willing to let other parties photograph their license information. Since many merchants accept driving license data as identification verification, sharing this data is very risky.

– About 20 percent of respondents thought local law enforcement officials should only be contacted if there are injuries. Filing a police report can help expedite the claims process, so it is a wise idea to file a report for any auto accident.

– Approximately 30 percent of the drivers surveyed said they felt they should share their phone numbers with the other party involved. However, this is not necessary. The other party could easily become a nuisance if he or she is prone to making frequent calls about petty details.

With a step-by-step guide, the WreckCheck app outlines what to do immediately after an accident. These steps also help app users create their own accident report. In addition to the report steps, there are helpful tips for keeping calm. There are tips for capturing the types of photos insurers prefer, and tips for filing insurance claims are offered. When the report is finished, there is a feature available to email the document to an agent. This free app is available for both Android and iPhone users. For more information about this app and accidents, discuss concerns with an agent.

The Five Worst Construction Frauds & Tips for Avoiding Them

When warm weather arrives, so do crooked contractors wanting to steal from homeowners. They provide bogus repairs that are not even necessary. In some cases, no work at all is done. These dishonest contractors love the warmer months when hurricanes, tornadoes, hail and severe storms are more common. After such disasters pass, they are happy to swoop in on unsuspecting homeowners who are desperate for quick repairs.

While the majority of contractors out there are honest, it is usually the ones who go from door to door offering help who are untrustworthy. Good contractors do not need to solicit themselves in this manner to find work. People who go knocking on doors usually say they walked by and happened to notice something wrong. They may offer to get the house ready for storm season before any major cells hit. If there was a recent storm, they may simply show up and offer to fix something that is clearly damaged.

When falling victim to these scams, homeowners could lose thousands of dollars. In addition to this, the ensuing headaches from trying to pay even more for real repairs or trying to recover money from a con artist complicate the situation. If a person’s insurance company does not cover fraudulent repairs, compensation may never be gained. The five worst scams these crooks pull off include the following:

1. Poor Work Quality
Con artists often use very cheap materials if they do any repairs. The work is obviously low quality, and homeowners must usually have the repairs redone with their own money.

2. Prepayment
With this type of scam, the contractor asks for a large sum of money upfront. After receiving the funds, the individual disappears or does very little work. In some cases, he or she may ask homeowners to pay for bids.

3. Inflated Damage
In order to increase billable expenses, contractors performing this type of scam may make the holes in roofs larger. They may instead just inflate the bill for work that was not done.

4. Phantom Damage
With this type of scam, the contractor says there is storm damage when there actually is none. However, the dishonest individual damages sidewalls or roofs to create damages and repairs them.

5. Deductible Payment
Some contractors offer to pay the homeowner’s deductible in order to gain business. However, this is always a plot to lure people in for fraudulent work.

How To Avoid Scams
Fortunately, there are several ways to combat these actions. The following tips are simple and easy to remember.

Verify a contractor’s license. Most licensed contractors are not willing to lose their reputation by doing fraudulent work. Such actions could be connected to a licensed contractor for a long time. Check with local and state licensing agencies for proper verification procedures.

Stay away from door-to-door contractors. Good contractors are usually too busy to knock on doors. Only someone who is desperate for money has to go from door to door.

Contact the Better Business Bureau. Search for the contractor on the BBB’s site or call to make an inquiry. Avoid people with a sketchy history. It is also helpful to check Angie’s List.

Demand a contract. Do not sign a contract and leave blank spaces. Make sure the contract specifies what work will be done. The repair schedule and price should also be included.

Work with the insurance agent. Do not let a contractor talk to the insurance company alone. It is much better to work directly with an agent who will survey the damage and decide what repairs are necessary. It is crucial to get the right repairs done by a reputable professional in order to be covered by the insurance company.

Look out for any red flags. Many con artists do not have references or business cards. Their appearance is usually poor. They may also be hesitant to provide an address. If they do provide one, it is usually a post office box instead of a street address. When these individuals’ vehicles are parked within view, they are usually run down. These contractors also cannot produce insurance proof.

Make Sure the Big Day is Perfect with Wedding Insurance

While every couple hopes their wedding day will be perfect, there are many cases each year where disasters happen. Unfortunately, most disasters become what they are because couples do not have wedding insurance. This type of coverage protects couples financially and covers their wedding arrangements against various mishaps and bad weather. Wedding insurance is affordable enough to fit into almost any couple’s budget. With policy price tags starting around $125, couples planning expensive weddings cannot afford to go without coverage. Even if couples do not have to make claims against their policies, the investment is worth the peace of mind at such a hectic time.

The decision to buy wedding insurance is a personal choice each couple must make for themselves. In the United States, the average cost of a wedding is more than $25,000. Some couples get by on less, but there are many couples who spend much more than this amount on the reception alone. The key to deciding whether insurance is necessary is to weigh the total wedding bill against the cost of coverage. For a couple who plans to have a drive-through wedding wearing their everyday clothing, insurance may not be necessary. However, couples planning a large outdoor wedding with a catered reception would certainly benefit from coverage. For weddings somewhere between lavish and simple, there are insurance policies designed to provide just enough coverage for what is necessary.

It is important for couples to understand what is covered in a wedding insurance policy. The following are components of a typical policy:

– Inclement weather is covered. If an event must be put off due to bad weather, the policy covers expenses for rescheduling.

– Missing officiants are partially covered. When a celebrant or religious officiant does not show up, some costs can be recovered.

– Injuries and illnesses are covered. Members of the wedding party or key persons who become ill may cause the wedding to be delayed. If this happens, the costs involved with postponing are covered.

– The ceremony location is covered. Many reception venues have their own insurance. If they do not have coverage, a wedding insurance policy will cover damage to the site. This includes mechanical problems, electrical damage and fires. Compensation is also provided for making alternate arrangements if the venue goes out of business before the scheduled event.

– Missing vendors are covered. If a photographer, florist, caterer or any other vendor does not show up, some of the initial costs and the expenses involved with rescheduling will be covered.

In addition to these main features, there are riders that can be purchased. When the bride, groom or a key person is on active duty, a military service rider can be added. This ensures the cost of postponing the event until a later date is covered if a service member is deployed. There are riders for wedding clothes, which cover the cost of damage or stores going out of business. Additional damage liability riders are available for couples planning home weddings. For couples whose renters or homeowners insurance does not cover theft or damage of gifts, a gift rider can be purchased. Couples may also purchase a rider for honeymoon cancellation. Wedding insurance policies do not cover cancellation due to something that was known at the time the policy was taken out. In addition to this, it does not cover cancellation due to cold feet. To learn more about this type of coverage, discuss concerns with an agent. 

What is your Earthquake Risk?

In some areas of the country, the risk of an earthquake is never far from people’s minds. In areas along the San Andreas Fault line in California, the earth has a way of nudging people awake if Californians ever feel complacent.

But Americans have been relatively lucky in the last hundred years, as truly devastating earthquakes on the level that we have seen in recent years in China, Mexico, Japan and Haiti, involving thousands and even hundreds of thousands of deaths -have been rare.

That’s due to a combination of strenuously enforced building codes – and pure dumb luck. Yes, we have had several quakes of 9+ magnitude strike sparsely-populated areas of Alaska over the years. But as of this writing, the United States has not had a major metropolitan area host the epicenter of a 7.8 magnitude-plus earthquake in living memory.

But that could change any minute.

The Federal Department of Emergency Management has developed a threat matrix to help gauge your exposure to earthquake threats.

In addition, FEMA has also published maps to help you determine your proximity to fault lines, which are areas with an elevated likelihood of a seismic event.

You can download the maps from FEMA at https://www.fema.gov/earthquake/earthquake-hazard-maps.

The closer you are to a red area on the map, the greater your exposure to seismic forces. But the damage you will incur has a lot to do with the strength of your building as well.

FEMA divides the map into five basic zones, and designates them as threat levels A through E, or “white” through “red.”

If you live in a white area, FEMA assesses your risk as very low. Even if you get a tremor, it would be quite unlikely for you to experience substantial structural damage or loss to property as a result, in these areas. You may want to plus up your coverage for floods, fires, hurricanes or other hazards, but earthquakes are not a huge concern in the white areas on the map.

Your exposure to risk becomes significant in “yellow” areas. These areas can extend a considerable distance from the fault line. If you are in a yellow zone, a strongly fortified modern building will likely withstand the shaking with minimal damage. But poorly-built structures are at substantial risk of significant damage and could be totally written off.

As you move further through the color scale, your risk becomes critical in “red” areas. Poorly-built buildings have a high likelihood of collapse or irreversible structural damage – resulting in a total loss of the building. Even moderately well-built buildings are at risk of collapse or substantial damage. Only the most robust buildings should be considered safe, and even these may well incur substantial structural damage. Buildings can be shaken off of their foundation, and some buildings will be completely destroyed by the quake.

Protecting Yourself and Your Property

The first step should be obvious: Do not skimp on construction quality or building to code. Earthquakes of magnitudes that killed tens of thousands in other countries have not had that effect so far in the United States in living memory, in large part, because of our strong building enforcement in the United States.

Second, if you are in an earthquake danger zone, locate valuable resources – especially people – in solid and well-constructed buildings designed with earthquakes in mind. You can start over if you have a warehouse full of lumber collapse from an earthquake. Having a building full of people collapse is another scenario altogether. No insurance check ever written can compensate a business for that kind of loss.

Third, get earthquake insurance – and keep your policy updated.

Some states, like California, have a state sponsored risk pool to indemnify residents against earthquake risk. In other areas, you’ll need to get specialized coverage.

Don’t assume a regular homeowners or business policy will necessarily cover you for damage or loss from earthquakes. Generally, you must obtain separate coverage specifically to cover earthquake damage – just as those who live in a flood plain must carry separate flood insurance. 

Benefits Of Pay-As-You-Drive Insurance

Usage-based insurance may also be called pay-as-you-drive insurance. It is based on a driver’s vehicle, the distance driven, the time spent driving and the driver’s behavior. When compared with traditional insurance, this type of coverage is much different. Traditional insurers attempt to reward the drivers they classify as safe, and their assessment is based on past documentation and the individual’s record. The new method uses current behavior instead of past patterns. With the traditional method, drivers must wait longer to establish themselves as safe or reckless drivers. However, the new method does not require as much time for drivers’ habits to catch up with them and affect their insurance rates.

Many transportation and environmental groups approve the new usage-based coverage. They claim it makes people more aware of what they are doing. For most people, this means they will drive more responsibly. It also encourages people to use their cars only when they need them. For example, driving a few blocks to the grocery store instead of walking would look less tempting with usage-based coverage.

How Usage-Based Coverage Works
The simplest form of this type of insurance assesses costs based on the amount of miles driven. When, where and how a person drives may also be factored in with several insurance models. Premium amounts are based on how much a person drives, and coverage is based on the vehicle’s odometer. To track how many minutes a car is in use, a vehicle-independent module is used to transmit data using RF technology or cellphone features. The time of day, speeds, distance, driving actions and time traveled are also sent regularly. Formulas can be basic enough to include only the amount of miles driven. Alternately, they may be much more complex and include a wide array of features. With advanced features, the device is able to determine if a person should pay a higher premium for speeding, using a cellphone while driving or driving for a long period of time without a break.

Another type of system in existence is telematic usage. This system uses a device that immediately relays information as it happens, which keeps a constant feedback loop for drivers. When drivers increase their risks, their premiums change immediately. Although some drivers may think this sounds intimidating, it is actually a helpful way to enforce good driving behavior and make the road safer. The following are benefits of usage-based insurance:

– People are more socially and environmentally responsible.
– Actual risk for each driver is assessed on a more concise and up-to-date basis.
– Consumers enjoy more choices between types of car insurance.
– Responsible drivers can save more money without having to wait to clear old records.
– High-risk drivers pay more, so they are less inclined to spend time on the road.
– For responsible young people, rates are not based on group averages of peers.
– With telematic coverage, continuous tracking may help people who are stranded or hurt.

To learn more about this type of insurance and to find out what options are available, discuss questions with an agent.

Why Bundling Benefits Customers & Insurers

Following the worst CAT in the history of the United States, the homeowners insurance industry is heavily focusing on property lines. In the past few years, premiums have spiked almost 20 percent. Many professionals are predicting a time of policy churning ahead. However, customers can benefit from bundling their policies by saving money, and insurers can benefit from offering this option by enjoying better customer retention rates. Insurance companies must understand customers’ attitudes toward bundling coverage compared with their attitudes toward competitors’ options.

Research shows that several factors influence the retention rate of customers. The customer’s tenure and bundle choice often reflect how likely that individual is to stay with the company or look elsewhere. Research shows that the overall retention rate for homeowners insurance was almost 90 percent between 2011 and 2012. Of that percentage, the amount of retained customers who had bundled policies was 95 percent. Retention rates for customers who used multiple insurers was slightly more than 80 percent.

The discovery that customers who pay for multiple policies with one insurer are more likely to stay with that company is something that remains consistent across various generations. This study surveyed people who bought a combination of homeowners and auto policies. However, the retention averages were higher for people who had more than two policies with one insurer.

Customers who were insured with companies that did not offer multiple coverage options did not say that they were certain about renewing their coverage. However, more of the customers who used insurers with added benefits answered that they would definitely renew their policies. Offering the option to bundle auto and home insurance is usually the first and most important step toward building a long-lasting relationship between insurers and customers. In customer satisfaction surveys, customers who bundled two policies were more satisfied. The customers who were most satisfied had three or more policies bundled.

The study also looked at what specific products were the most influential for bundling options. In addition to the combination of homeowners and auto policies, personal liability umbrella coverage followed close behind. This type of coverage has a high bundling rate overall. Secondary residence coverage also had favorable feedback. However, life insurance policies did not have a major impact on retention in relation to bundling. This is likely true because of the uniqueness of life coverage and the issue that customers do not always have the ability to transfer such a policy to another company. However, the option of offering life coverage certainly does not create a disadvantage.

Understanding bundling trends and preferences of customers will help insurers market their products better and provide more efficient options for consumers. It is also important to remember that a customer’s income affects what type of coverage he or she is more likely to buy. For example, people with higher incomes are more likely to purchase umbrella coverage to protect their assets. However, younger people are more likely to bundle life insurance if the option is presented to them. This is due to people in this age group getting married, buying homes and having children. Overall, bundling products with homeowners and auto coverage is something that both customers and insurers can benefit from. Customers who are interested in this option should discuss their concerns and needs with an agent.