Personal Perspective

Many consumers have faced rapidly escalating Homeowners insurance premiums during the past few years. In some cases, they’ve had trouble getting coverage, particularly if they have filed several claims.

To reduce the possibility of future losses, you can take a number of precautions, including:

• When washing machine hoses start to deteriorate, replace them with stainless steel hoses, for which your insurance company might offer you a discount. The hoses should not rub against the wall. Also, to prevent leaks, turn off the machine’s water faucet when the appliance is not in use.
• If you experience a water leak, make sure it that it’s repaired properly and remediated as soon as possible; this might include removing and replacing building materials, such as sheetrock. For larger leaks, call in a professional that specializes in remediation. These measures will reduce the possibility of hazardous and expensive mold losses down the road.
• Consider an automatic water shut-off system for your home. These systems have sensors which detect water leaks and send a wireless signal that interacts with the shut-off valve to turn off the water to the home. Some insurance companies offer discounts for these systems.
• Maintain your roof in optimal condition. A quality roof inspection on a periodic basis can identify sections that need repair, and thus prevent water losses. If you live in an area that’s prone to windstorms, use roofing materials that are resistant to high winds.

To learn more about keeping your Homeowners premiums under control – and making sure that you have the coverage you need – please feel free to get in touch with us at any time.

For more recommendations on repair and maintenance of your home, please feel free to get in touch with our agency at any time.

Identity theft claimed 12.6 million victims in the U.S. last year – and can victimize you at any time! It’s all too easy for bad guys to pilfer your e-mail, take a photo of your credit card (including your security code), or even install “malware” that records every keystroke on your computer.

Identity theft can clean out your bank accounts, devastate your credit, and even result in charges of fraud against you. Although credit monitoring can alert you to the theft, you’ll still face the tedious, costly – and often lengthy – process of restoring your credit and, possibly, of clearing your good name. For example it might easily take months, or even longer, to settle fraudulent bills with your creditors.

Identity Theft insurance can help! As a rule, this coverage will reimburse you, up to the policy amount – which can range from $10,000 to $1,000,000 – for many of the costs of restoring your identity and credit rating, such as:

• Notification of your banks, creditors, and credit agencies of the theft by phone or mail (including notarization of documents, registered or certified mail, etc.).
• Replacement of lost or stolen identity documents – such as passports and, Social Security cards.
• Attorney fees (if needed).
• Lost wages, for time taken from work to deal with the theft.

Some policies also offer such benefits as providing restoration services to guide you through the process and an emergency cash advance if the theft occurs while you’re away from home.

Identity Theft insurance usually costs $20 to $100 a year, with an annual deductible of $100 to $150. You can either add it to your Homeowners policy or buy it as a separate coverage. We’d be happy to recommend the policy that’s best suited to your needs.

Dog bites cost insurers $489 million in 2012 – more than a third of all Homeowners Liability claims, says a study by the Insurance Information Institute and State Farm!

Pet owners can help prevent bites by following these guidelines based on the instinctual behavior of their best friends:

1. Consider your dog’s “rank.” Canines have superior/subordinate relationships similar those in to the military; the rank of family and guests dictates a dog’s behavior towards them. A high-ranking “general” dog won’t tolerate insubordinate behavior from a perceived lowly “private” child or guest, such as trying to take food or toys away from him.
2. Don’t yell. Because your dog doesn’t know you’ve ordered pizza, he’s agitated by the “threat” of the delivery at the door and starts barking. Yelling at him to stop increases his anxiety, so, when the door opens, he bites the delivery person. Instead, it’s best to greet guests at the door and reassure your dog.
3. Treat strangers as friends. Dogs respond to their owners’ behavior about the safety of a situation. A dog can easily perceive a stranger who meets and interacts formally with its owner as being an enemy – or prey. Owners who hold a leash too tightly can unwittingly trigger a dangerous “fight or flight” response in their dogs. Relaxing and acting like a friend when you meet strangers should elicit a friendly response from the dog.
4. Don’t let your dog feel trapped. Dogs don’t care about your home, car, or the valuables they might contain. When they’re in a home or car, they can easily feel trapped in an enclosed area and will respond to strangers with a fight-or-flight reaction. You need to: 1) to train your dog to signal someone’s approach calmly; and then 2) assert authority over the situation.

So the police pulled you over and you got a speeding ticket? Don’t despair. Along with the chunk of change you’re required to send the state or city, you might be eligible to take a traffic class that will keep the points off your record — and your Auto premiums from rising.

In 41 states, the DMV transfers these points to your driving record. Insurance companies generally check this record when you take out or renew an Auto policy, change coverage, or drop or add cars and/or drivers.

Garner a few points and your premium will increase at renewal, especially if you have more than one violation in three years. For instance, according to Insurance.com, a speeding ticket will raise your premium by 11% to13%.

To keep your record clean and avoid a surcharge if you’re cited for a minor violation, you might be able to complete an in-person or online traffic course. Laws, deadlines, and limitations vary by state. Most states also allow drivers who have accumulated points to have them removed by taking a safe driving class.

If you have a clean driving record and go to traffic school, most insurance companies will offer a 5% to 15% discount on Liability and Collision coverage when you renew your policy.

As a rule, taking a driver safety class will either remove points from your record for minor violations or give you a discount, but not both.

There might be some variations, depending on state laws and insurance company. For example, only drivers over age 25 might be eligible for the discount, or all drivers of the insured vehicle must take the course to qualify.

For more information, just give us a call.

Metal car keys are going the way of the land line, as most drivers have graduated to a key fob or remote with a transponder that needs programming before use. If you own a high-tech luxury vehicle you might have a “smart key” – a remote control to plug into your dashboard or leave in your pocket.

Although these devices add convenience, they’re pricey. You’ll pay $200 to $400 to replace a smart key on a luxury car, plus $100 an hour for labor. If you lose all your keys, you might need to replace the locks, which could cost $1,000.

Auto insurance will cover the cost of replacing smart keys (or metal keys) only if the loss comes from a peril covered under the policy. For example, if your keys are damaged when you collide with another car, Collision coverage would pay to replace them. Comprehensive coverage –which reimburses you for loss or damage to your vehicle from theft, vandalism, fire, hail, or flood – would include replacement of the keys, as part of the vehicle.

If your car keys are stolen, Homeowners insurance should pay to replace them because theft is a “named peril” under the policy.

Bear in mind that your Auto or Homeowners deductible will apply against the cost of replacement.

Technology is well on the way to eliminating car keys. According to the AAA, smart phone apps that allow you to unlock and start your car will be standard on many vehicles as soon as 2015.

In the meantime, you can avoid paying the high cost of replacing smart keys by keeping spares in a safe place.

To learn more, please feel free to get in touch with us.

If your Auto insurance company sees you as a deadbeat or high-risk or driver, it might cancel or non-renew your policy.

Because insurers take cancellation seriously they won’t eliminate coverage for a traffic ticket or two. What’s more, state regulators ban cancellations under most circumstances.

However, a company can non-renew your insurance at the end of each policy period (six to 12 months) or cancel the policy during the first 30 to 60 days that it’s in force. The main reason for midterm cancellation is nonpayment. State regulators set the requirements, such as a written notice of non-payment, together with a 10 to 30-day grace period to pay.

Some states allow insurers to cancel coverage, usually for an activity – such as a DUI conviction that involves bodily injury or substantial damage – which indicates you’re at high risk for an accident; or for misrepresenting your driving history (for example, not disclosing that your teenager was behind the wheel instead of you when an accident occurred). Some companies will backdate coverage to the cancellation date, while others will not cover you during the period when you haven’t paid your premiums.

If you can’t bring your account up to date or the company cancels you for a reason other than non-payment, your policy probably won’t be renewed – which means you’ll have to look for insurance elsewhere, probably at a higher rate. Depending on the reason for cancellation, some companies might refuse to write your business. In this case, you can to turn to the state’s assigned-risk pool, which offers bare bones coverage at higher rates.

Your best move is to do everything possible to avoid cancellation or non-renewal. For example, if you can’t afford to premium payments, consider reducing your coverage rather than take the risk or cancellation.

For more information, just give us a call. We’re here to help!

If you want to insure a mansion or a priceless art collection, don’t be surprised if a certified thermographer shows up at your door, infrared camera in hand.

Thermal imaging cameras are among the latest high-tech tools Homeowners insurers are using to help stem losses before they become catastrophes, saving policyholders from heartbreak and companies millions in damage claims.

One major insurance company is using thermal imaging cameras for its high-value homes, letting inspectors “see” hidden hot or cool spots. A hot reading might indicate a fire hazard from an electrical malfunction, while a cool reading could come from a leak. In one case, the camera detected a cool spot in a ceiling due to a leak caused by a faulty 37-cent clip in an upstairs ice maker. If the ceiling had collapsed, it would have caused $125,000 in damage.

High-tech devices aren’t limited to the high-end market. One insurer offers an online risk-assessment tool that its Homeowners clients can use to find the risks for flooding, wildfire and storm surge, based on their address. This company also provides its clients inexpensive alarms that can detect potential water leaks before they can cause extensive, and expensive, damage.

Insurance companies are exploring new technologies. One insurer has patented a data recorder that can be installed in building to analyze potential causes of damage or destruction. Another company has filed a patent for a system that would use spectroscopy to identify chemical changes caused by wildfires and other natural disasters. If such a change were detected and confirmed, the company could speed up the claims process.

One of the most exciting and terrifying moments for any parent comes the first time you watch them drive away alone. You trust your child, and you’ve either taught them well or hired a professional to do so. Still, there might not be anything quite as scary as the moment when those taillights disappear from view.

Having a solid Auto insurance policy for your teen is essential to give you peace of mind when they’re on the road without you. Although insuring a teenager won’t be cheap, you can easily get the coverage you need at an affordable price.

Most Auto policies will offer discounts to teen drivers who maintain good grades, usually rewarding a B average with some not insignificant savings. Because the vehicle your teenager drives will significantly impact the cost of coverage, when shopping for that first car look for reliability, not flash. Choosing a car with good safety ratings and consumer reviews will help keep premiums under control. Pick a model that’s not too old to need constant maintenance, but isn’t so new that repairs will break the bank. Most insurance companies keep a list of vehicles and the cost of insuring them.

Many companies also offer premium discount if you have your child receive some extra driving instruction. Most states require a minimum number of hours of driving spent with a certified professional.

Remember, an ounce of prevention is far better than a pound of cure. It makes sense to pay for a comprehensive, cost effective Auto policy now, rather than shell out big dollars for repairs and legal costs after your teen has a car accident.

As always, our insurance professionals stand ready to help you make the right choice – just give us a call.

A pipe bursts and water ruins a corner of your Brazilian cherry wood floor. A windstorm tears off half of the vinyl shingles on one side of the house. A fire burns a couple of kitchen cupboards. Although your Homeowners policy will cover such partial losses, the extent to which the insurance company must go to make everything look just the way you’d like can be tricky.

Let’s say that the new siding contrasts with the older, weathered shingles or that you can’t find replacement kitchen cupboards that precisely match the originally.

Your claim should put you back to pre-loss condition so the new part shouldn’t stick out like a sore thumb. For example, this might mean replacing the entire floor of a room even if only a portion needs repair, or repainting all four walls after damage to only one.

In some states, if replaced items don’t match in quality, color or size, the insurance company must make “reasonable repairs or replacement of items in adjoining areas.” Although other states don’t have laws on matching, some Homeowners insurers have added similar “non-matching language” to their policies.

Besides varying by state, insurer, and policy, the issue of patching versus full replacement can depends on insurance company adjusters.

If you can’t get make any headway with the adjuster on the repairs you want, consider going over his or her head to a supervisor, or file a complaint with the state insurance department. Another option is to hire a public insurance adjuster to work on your behalf through the claims process. These professionals usually charge about 10% of the final settlement.

Home and Auto insurance were relatively straightforward for yesterday’s ‘typical American household” – Mom, Dad, and the kids. Today, economic pressures are leading more and more adults to move back in with their parents, double up with other families, or make room for elderly relatives. These multigenerational households and other nontraditional living arrangements can raise serious insurance issues.

In most states, when family members move in with relatives who have Homeowners (HO) insurance, their belongings will be covered under the relative’s policy. However, if the individuals who move in are not related to their policyholder, their belongings probably won’t be insured.

With a rented apartment or house has Renters insurance, the coverage rules are different. In these cases, the policy won’t cover the property of a person who moves in with the renter, regardless of whether the two are related.

In a multigenerational household, or when multiple families live under one roof, whether or not you’re the homeowner, it makes sense to supplement standard Liability coverage under a your HO policy with a relatively inexpensive Personal Umbrella policy.

If you’re in a multiple-living situation, let your Auto insurance company know even if the other drivers have their own coverage and won’t be driving the cars your policy covers. Some car owners who house other drivers with checkered histories behind the wheel might wind up paying higher premiums, On the other hand, a roommate with a clean driving record could lead to multiple car discounts or other benefits.

Whether it’s Auto, HO, or Renters insurance, please let our agency know before you find yourself in an expanded or multigenerational household.