Personal Perspective

There are many hidden costs associated with owning a boat: Dock fees, general maintenance, and winter storage, just to name a few. One expense that boat owners should never skimp on is purchasing the best available insurance policy for their watercraft.

Because buying a boat is a huge investment, owners should protect their boat with comprehensive insurance coverage. Plans are often based on the type and size of the boat. Many Homeowners and Renters insurance policies provide limited coverage for property damage if the boat’s engine is less than 25 mph horsepower or if it is a small sailboat, but without additional insurance, no liability coverage is included.

Owners of larger, more powerful boats and yachts will need to purchase a separate insurance policy for their boat. The insurance company will take into account the size and type of boat, its value, and where the boat sails when drawing up the conditions and cost of the policy.

Separate boat and watercraft insurance policies provide much more coverage to the owner. These policies generally include loss and damage coverage to the boat’s hull, machinery, furnishings, fittings, and any permanently attached equipment, like a navigation system. Liability coverage is extended to:

• Bodily injury to other persons
• Damage to other’s property
• Legal expenses associated with non-consensual operation of the boat
• Medical costs for injuries to the owner and passenger
• Boat theft

Policyholders can choose the liability limits of their plan, ranging anywhere from $15,000 up to $300,000. The deductible cost for property damage is $250, and it ranges between $500 and $1,000 for theft and medical expenses. Of course, policies can be individualized based on the boat owner’s needs. Other endorsements and coverages can be added to the policy to cover the boat’s trailer, fishing gear kept aboard the boat, and any other accessories. Also, make sure to ask whether or not the policy covers the boat while it is being towed.

Just as Auto insurance providers offer discounts to their policyholders, discounts for watercraft policies apply in certain cases. For example, insurance companies favor diesel-powered engines over gasoline ones because diesel fuel is more stable, making the engine safer to operate.

Other discounts are related to safety equipment kept on the boat. Having items like fire extinguishers approved by the U.S. Coast Guard and ship-to-shore radio equipment could reduce the amount of the premium. Also, completing a boater’s safety course offered by the Coast Guard Auxiliary, the American Red Cross, or the U.S. Power Squadrons can gain some favor with the insurance company. Maintaining a clean boating record is just as important as being accident-free on the roadways, when it comes to lowering insurance rates. Premiums are usually discounted for every two years the boater goes without an accident or filing a claim. Bundling your Watercraft insurance with Homeowners and vehicle policies is another good way to save money on coverage costs.

A solid insurance policy gives boaters the peace of mind needed to set sail and enjoy the open waters. Nothing is more relaxing than knowing your investment is covered.

As traffic increasingly approaches gridlock in urban areas, and higher housing costs cause workers to push their homes ever further from work, it’s no surprise that commuting times have lengthened considerably.

Longer trips to work mean that more and more car-bound commuters are looking for ways to pass that seat time either productively or pleasantly. Hands-free cell phones, enhanced stereo systems, laptop computers, PDAs, and (hopefully only in the back seat) DVD players and video games are standard equipment in many vehicles.

Have you considered how your Personal Insurance coverage will cover losses to these often-expensive additions?

To determine how much coverage, if any, your Auto or Homeowners policy will provide for these tech “toys,” you’ll need to determine:

• The value of the device.
• Whether it’s “built-in” to the vehicle, or powered through an adapter.
• The value of any media (such as CDs, DVDs, or game cartridges) used with the device.
• Whether the device is for personal or business use, or both.

Be sure you have the coverage you want before a loss reveals a possible gap in your protection. Contact one of our Personal Insurance professionals today.

Don’t let negative rumors about home security systems keep you from adding this valuable protection for you and your family. Before you buy a system, consider these myths and realities:

Myth: No one will break into my home.

Reality: Burglars can target any home anywhere, and they’re seeking unprotected targets like yours. In 2011, the FBI reported more than 1.5 million residential burglaries, an average of more than one a minute.

Myth. Security systems cost too much.

Reality: According to the FBI, burglaries cost victims an average of $2,185 in 2011. A security system that costs $50 a month (a mid-range figure for most systems) can provide more than three and a half years of protection for the money and valuables you might lose in a home burglary, not to mention helping ensure your peace of mind.

Myth: My pet will set off false alarms

Reality: Many home security systems are pet friendly, designed to distinguish between pets and intruder.

Myth: Having a security system won’t lower my insurance rate

Reality: Because insurance companies can save a ton of money when policyholders use quality alarm systems (which reduce the chances of burglary claims significantly) they offer these customers a sizeable discount on homeowners coverage. You can use these savings to offset the cost of your system.

Myth: Because I have insurance, I don’t need a security system

Reality: Insurance can’t bring back irreplaceable items, such as family heirlooms or other valuables, which a home security system can help protect. What’s more, many people don’t want to deal with filing a claim and receiving an insurance settlement.

For more information on the benefits that alarm systems can provide, feel free to get in touch with us at any time.

Do you know the most common residential insurance claims? Learn what they are so that you can prepare your home this fall. That way, you’ll prevent expensive repairs and possible insurance rate spikes before winter weather strikes.

1. Water Damage

From a leaking roof to cracked pipes, water damage can ruin your home and possessions. Inspect the roof and make any repairs before heavy snow and ice arrive. Clean and repair rain gutters, too, to ensure water runs off into the street instead of saturating the ground around your basement.

2. Fire Damage

Unexpected cooking or heating source fires can quickly level a home. While you’ll want to test your indoor smoke detector batteries and practice the escape plan, replace furnace filters and clean the chimney, too. Then, inspect the exterior of the chimney to remove bird nests and ensure it is in safe working order.

3. Storm and Wind Damage

Snow, ice and wind storms damage fences and roofs. Take time now to trim trees and remove dead or low-hanging branches that could do the most damage around your property. Nail loose siding into place and secure patio furniture, bicycles and other loose items inside the shed to prevent them from flying away or being damaged.

4. Visitor Accidents

Uneven sidewalk, loose railings and worn deck stairs could cause your winter visitors to slip and fall. Fix these problems now. Also, stock ice melt and a sturdy shovel so that you can remove ice and snow as soon as bad weather starts and before anyone suffers an injury.

5. Animal Bites

Prevent your dog from biting or attacking anyone when you repair the fence so that it can’t escape the yard. Ensure the lock is tight as well. When visitors come into your yard, tie your dog securely to a post with a sturdy leash.

These five common insurance claims could affect you, but preventative measures go a long way toward protecting your family, home and visitors this winter. While you’re at it, ensure your home insurance policy is up to date. Add liability coverage or an umbrella policy if necessary when you talk to your agent today.

A recent nationwide survey found that only 34% of tenants carry a Renters policy which means that most renters are taking a financial gamble with all of their belongings.

The three leading reasons that respondents gave for not buying Renters insurance show that many people don’t understand what this policy covers – and doesn’t cover:

• Nearly three in five (57%) felt that their rented home has such effective security that they don’t need protection against losses from theft.

  However, without a Renters policy, tenants still remain highly vulnerable to other risks. A fire could damage or destroy their possessions, requiring replacement at a high cost. An accident might leave the unit temporarily unlivable, costing hundreds or thousands in living expenses. An injury to a visitor on the premises could result in costly medical bills – not to mention a lawsuit. The typical Contents policy will provide protection against these losses – and a wide variety of other risks.

• More than half (52%) believed that they couldn’t afford the coverage. Among respondents, 21% estimated the annual premium at $1,000 or higher, while another 60% pegged the cost as $250 a year or more.

  However, according to the National Association of Insurance Commissioners (NAIC), the average Renters policy costs only around $185 a year.

• Nearly half (48%) thought that the landlord already had coverage.

Although the landlord carries insurance in the building itself, the policy does not cover risks to tenants’ property and liability.

Cooler temperatures have arrived, and it’s time to turn on your heater. Be safe and protect your family and home with these home heater safety tips

Use Only Approved Heating Sources

Certain heating sources should never be used to keep your family and home warm. They include the stove or candles. Your risk of carbon monoxide poisoning or fire increases when you use a non-approved heating source.

Install Heaters Properly

It’s easy to buy a stationary space heater, fireplace or wood stove. Those heating sources should be professionally installed, though, to ensure they conform to the manufacturer’s instructions and local codes. Invest the necessary time and money to ensure your family and home stay safe and warm.

Use the Right Fuel

Different types of heaters, whether they’re fireplaces, space heaters or pellet stoves, use different fuels. Be sure you’re using the right fuel for your heater. Find the details in the heater’s instruction manual or on the manufacturer’s website.

Inspect and Clean Your Heater Annually

While it’s easy to flip a switch or light a match and start your heater in the fall, you want to make sure it’s operational. Hire a qualified professional to inspect and clean your chimney and heating equipment before you turn it on. They can make sure your heater is safe to operate all season.

Turn Off the Heater

You may think that leaving the heater turned on is a good idea as you keep your home warm. However, fires can start and rapidly spread if you leave your fireplace or space heater unattended. Always extinguish fireplaces properly and turn off space heaters before you leave the house or go to bed.

Keep Your Distance

Your furnace, fireplace, space heater or other home heater keeps you and your family warm, but they’re also fire hazards. Anything flammable should be kept at least three feet away from your heater. Flammable object can include curtains, clothing, upholstery and wood.

Enforce a Kid-Free Zone

Kids sometimes start playing and forget to follow safety rules. Implement and enforce a three-foot kid-free zone around the fireplace or space heater. It protects your kids from getting burned.

Use Smoke and Carbon Monoxide Detectors

Despite your safety precautions, heaters can malfunction. Buy and install smoke and carbon monoxide detectors in your home. Test the detectors every month and replace the batteries every six months, too.

Update Your Home Insurance

As you prepare your heater for another season, make sure your home insurance is up-to-date. It can ensure your home and possessions are covered if there’s a heater accident.

The cooler temperatures outside mean you’re ready to turn on your home heater. Follow these tips as you stay safe.

In your vehicle, it’s easy to feel like you’re secluded from everyone else on the road. Your vehicle is one of many on the road, though. Above all else, you must always prioritize safety and use these etiquette tips.

Obey the Rules of the Road

Every rule of the road applies to you, so obey the speed limit and stop, yield and merge signs. Your agenda is never more important than safety.

Be Considerate

You share the road with other drivers, bikers and walkers, so be considerate. Give other drivers the right of way, let other drivers pass if they’re in a hurry and yield to pedestrians. Don’t demand your own way or give into road rage. Show consideration and make the commute safer for everyone.

Take Turns

When the road narrows from two lanes to one or traffic slows for an accident, take turns merging. It’s better to let someone go in front of you than to cause a pileup.

Turn on Your Headlights

Your vehicle’s headlights allow you to see clearly as you drive at night or in certain types of weather. Remember to turn off your high beams when another car approaches. Also, don’t use your headlights as aggression toward another driver.

Use Your Horn Sparingly

The horn in your vehicle is designed to alert other drivers of dangers. In certain occasions, it’s appropriate to honk your horn, but use it sparingly and remember that laying on the horn is poor manners and a sign of aggression.

It’s appropriate to lightly beep your horn when:

• The light turns green and the driver in front of you is distracted
• It’s the other driver’s turn at the intersection
• Another driver is ready to cut you off because you’re in their blind spot

Do not use your horn to:

• Scold drivers who are speeding or being unsafe in other ways
• Vent your frustrations

Respect Emergency Vehicles

Ambulances, fire trucks and police cars also use the roadways. When you see flashing lights, slow down and pull off to the right side of the road. Wait for the emergency vehicle to pass and then merge back into traffic.

Pull Off the Road if You’re in a Fender Bender

Minor fender benders do occasionally happen. Instead of stopping your vehicle in the middle of the road, pull off the road safely to assess damage and discuss the next step, which may include exchanging insurance information, with the other driver.

Report Emergencies

When you pass a vehicle with its emergency lights on, stop and offer assistance. You can also call 911.

Etiquette goes a long way toward maintaining roadway safety for everyone. Share the road, remain calm and use your manners as you drive safely.

Gun safety is essential for adults and kids whether you own a gun or not and if you live in the city, suburbs or rural farm. You owe it to your kids to teach them gun safety tips now.

Guns Are Not Toys

In video games and cartoons, characters shoot other people and no one dies. However, in real life, guns can permanent injury or kill someone. If you want to teach your child how to use a gun properly, you have that right, but clarify that guns are not toys.

Under no circumstances should you or your child play or joke around with a real gun. It only takes one incident with a bullet in the chamber for your kids to kill themselves or someone else.

Violence is Not Okay

Kids do get bullied, argue with friends and struggle with interpersonal challenges. Violence and guns should never be used to solve problems.

As an adult, never threaten to shoot someone. Teach your kids to follow your example, too. Threats or violent acts could result in police action.

Keep Guns Locked Up

Many times, guns are fired by accident. It’s important for your kids to never access guns stored in your home.

Whether you hunt, have a gun for protection or own a gun collection, always keep your gun in a locked cabinet. Project ChildSafe offers free gun locks, and you can pick one up at your local police station. The ammunition should be locked in a separate cabinet. Keep the key with you at all times as you protect your children.

Teach Kids How to Respond to Guns

You may not have guns in your home, but your kids may visit family members or friends who have guns. Always check with the parents of your child’s friends to see if they have guns in the home. Also, teach your kids how to respond to guns in a safe and responsible way.

If they see a gun lying somewhere, they should:

• Stop what they’re doing
• Don’t touch the gun
• Leave the room or area
• Tell an adult immediately

If a friend offers to show then a gun, they should:

• Say no
• Leave the room
• Tell an adult in the home or call their parents

If someone threatens to bring a gun to school, they should:

• Report any suspicious activities or conversations
• Tell the principal, teacher, guidance counselor or parent about the incident
• Understand that telling on someone is the safe and right thing to do

Gun safety is important. Use these tips as you ensure your kids know the right way to handle situations where guns are involved.

Your wedding only happens once in a lifetime. Make it special when you tie the knot in an exotic destination. Whether you choose the beach, mountains or cathedral, understand what insurance coverage you need for your destination wedding.

Cancellation or Rearrangement

Despite all your planning, you can’t always control every detail of your wedding event. Weather, travel delays or other unforeseen circumstances may affect your day. If you have to cancel or rearrange your wedding, insurance can cover any related costs.

Travel

Whether you arrive to your destination wedding via airplane, boat or car, travel is unpredictable. Insure your wedding travel and receive financial reimbursement if your wedding travel plans are disrupted.

Wedding Service Providers

A dozen or more wedding service providers, including the venue, florist, caterer, musicians and limo company, assist you in making your wedding one to remember. Because you schedule your wedding months in advance, there’s always a chance that one of the vendors may go out of business before your special day. Purchase insurance that will cover any irrecoverable deposits and the costs of making alternative arrangements for other suppliers.

Flowers, Food, Cake and Other Details

Wedding details, including the flowers, food and cake, add to the ambiance of your special day. Unfortunately, accidents happen. If the cake falls on its way to the venue or someone gets sick on the shrimp, insurance will cover the related expenses.

Photographer and Videographer

Recording your special day is essential. If your photographer or videographer doesn’t show up or if the footage is compromised, insurance can reimburse you. It may also pay for the photos or video to be reshot.

Wedding Attire

You spend hours finding the perfect dress, and even though you protect it, it can be ruined, especially if you travel overseas with it. Insurance will cover the cost of your dress, tuxedos and other wedding attire if it’s damaged and pay for you to rent new attire.

Rings

The rings you and your fiancé pick are special. Insuring them will give you peace of mind since you will get your money back if the rings are lost, damaged or stolen.

Gifts

At some destination weddings, guests give the bride and groom special honeymoon gifts, such as a spa treatment, sightseeing trip or other fun event. However, if your guests bring gifts and they are stolen, lost or damaged, insurance will reimburse you.

As you plan your destination wedding, you make sure all the details are perfect. Insure your wedding, too, so that you can concentrate on planning and enjoying your special day no matter what happens. Discuss your wedding plans with your insurance agent as you buy the coverage you need.

How old’s your car? To save money, you may prefer to invest in older model cars. The insurance costs could take away any financial benefit, though, so understand if it’s cheaper to insure an old or new car.

Drop Comprehensive Coverage

Older cars depreciate in value. Find your car’s value in Kelly Blue Book or Edmonds then check your insurance policy. If you’re paying more for your comprehensive coverage than the car is worth, drop it and save money.

Your Age Matters

If you’re a young or senior drivers, be prepared to pay higher auto insurance rates because statistically drivers in these age groups have a high risk of accidents. On average, middle age drivers enjoy the lowest insurance rates.

Check Out the Safety Features

The safety features on your vehicle can lower your insurance rates since they reduce accidents. Older cars without safety features such as automatic brakes and back-up cameras may be more expensive to insure.

Drive Safely

The way you drive can actually influence your auto insurance rates more than your car’s age. Maintain a clean driving record to get the best rates.

Know Other Factors that Determine Insurance Rates

Your car’s safety features, your age and your driving record impact your insurance rates. Other factors can affect your policy’s costs, too.  Those factors include:

• Marital status
• Gender (depending on the state in which you live)
• How often and where you drive the vehicle
• Claim history

How to Lower Your Rates

You increase your chances of earning low insurance rates when you take several steps.

• Don’t drive while you’re distracted. Pay attention to your surroundings and keep your focus on the road.
• Obey traffic laws and follow posted signs.
• Choose a high deductible. By increasing your deductible, you can lower your annual vehicle insurance costs.
• Improve your credit score. Many insurance companies use your credit score to decide if you’re a good insurance risk, so improve your score to get lower insurance rates.
• Add a vehicle. Instead of purchasing two different insurance policies, add the second driver in your home to your policy and save money.
• Bundle different policies. Purchase auto insurance from the company that also insures your home or rented apartment, and you’ll get a discount on your car insurance.

While the age of your car does affect your car insurance rates, other factors also determine the amount of insurance premiums you pay. For more details, talk to your insurance agent. He or she can also suggest additional steps you can take to lower your rates and get the insurance coverage you need.