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Water, water everywhere

October 16th, 2011

We have certainly seen our fair share of water this year have we not? Water seems to cause many issues when it comes to insurance. Certain water damage is covered yet other types are not. This is the second of three blog articles on losses that seem to cause the most confusion with Homeowners. I will attempt to categorize and clarify how water is and is not covered in a typical Homeowners insurance policy. As always consult your policy and your agent for your particular situation.

So, let’s start with what is not covered and then end on a positive note as to what is covered. Insurance policies use this method of denying coverage and then adding back what is covered as a means of clarifying coverage. Clarification is very important because suits that arise between customers and insurance companies very often end up hinging on the clarity of the policy terms.

One section of your policy that should be read is the General Exclusion section. It is not long (9 items usually) nor is it complicated but it contains the primary water exclusion in the Homeowners policy.

The exclusion is titled Water Damage. Please note the title is not Flood. Flood is actually defined in an actual Flood policy and the insurance industry uses that definition to decide when a flood has occurred. As you can tell by the title of the exclusion there is more to this exclusion than just flooding. Other items included in this exclusion are damage from surface water, waves, tidal water, any overflow of a body of water, flood or spray from any of these whether or not driven by wind. Water below the surface of the ground as well as water that exerts pressure or seeps or leaks through a building or foundation is also not covered. That is a lot of water that is not covered. Flood policies can pick up some of the slack for sure but not all of it. The exclusion goes on to also eliminate water or water borne material that backs up through a sewer or drain or which overflows from a sump pump or related equipment. Be careful of the leaking roof claims as well. These claims pose no issue if from sudden or accidental losses but if your 20 year roof starts to leak in year 25 for no apparent reason insurance is not a maintenance policy.

So what types of items are covered? Water damage from bursting pipes is usually covered. If freezing is the culprit, be sure the heat has been maintained or there could be issues. Sudden rupture of appliances are also usually covered just not the cost to repair the appliance. Ice dams that form on a roof due to freezing and thawing are also covered if you have the right kind of Homeowners policy (Special Form vs. Broad or Basic where no coverage for ice dams is afforded). If you have a fire there is usually a lot of water damage from the firefighting efforts so that is also covered. If water damages the interior of your home because the outside of the building has been compromised (ex. Fallen tree) that loss is covered.

What else can you do to protect yourself from water damage? First off you can purchase a flood policy to protect you from water damage that fits the flood definition. If you see it on the news it meets the definition. Many floods occur without making the news so if it is affordable consider it. Backup of sewer and drain endorsements are available from most insurance companies. Ask your agent to price out the premium charge for various coverage limits and deductibles. Not much can be done about seeping water in basements however. I have never seen a policy cover that loss unless it was tied to a flood policy.

After that it comes down to risk management. Maintenance of your appliances, roof and sump pump will help. Installation or use of a generator to maintain sump pumps if your basement is prone to leaking are a great investment. Trimming trees around your home and taking down trees that are of questionable health or are not sturdy in windstorms. Low temperature sensors for homes that are not continuously occupied in colder months will alert you to potential freezing issues. Water alarms near hot water tanks and catch basins for these appliances may not stop a loss but might mitigate the damages.

I hope this summary helps clarify coverage for water damage. Depending on your policy coverage may vary for your home and contents so again consult your agent or policy for the specifics. If you happen to live in our territory send me a note and I would be happy to help.

Thanks for reading.

Tom

Tags: flood, insurance, water damage
Posted in Claim Information, Flood Insurance, Homeowners Insurance, Why choose us for your insurance | No Comments »

The Wind is howling, I wonder if I’m covered?

September 21st, 2011

Thank you to all that took the time to post a couple of comments. This post will deal with insurance coverage for wind damage. Property insurance policies are triggered by “Perils.” In the world of insurance a peril is what caused the loss. Property policies are written in two ways, either the peril shows up on a list as covered or there is no list of perils so instead you would look for an exclusion. The later is the broadest and the most advised way to insure property.

Wind, in most cases, is either listed as a peril or not excluded from coverage. It is a routine coverage in most Homeowners policies. Coastal areas may be a little different, check your policy. For this discussion we are going to leave out wind driven water because that is better handled in the future post about water damage. Irene was much more than a coastal storm. It’s uniqueness was the size and scope of the storm.

The type of wind damage we typically see is exterior damage to a home or other structure on the premise. Siding torn off, wind related roof damage as well as trees falling on structures. Other common occurrences are downed, fences either blown over or hit by trees, damaged pool liners and tree limbs falling on vehicles.

I will attempt to give those reading this post a sense of how insurance TYPICALLY works. Please understand that states modify policies and insurance companies have numerous endorsements that could alter what I say so please read your policy or call your agent for your particulars.

Wind damage to your roof is a routine claim in most instances. Siding damage also presents few issues. Color and fading issues can present themselves in both instances and will be decided based on the details of the situation.

Tree damage caused by a windstorm however is a bit more confusing to the consumer. In general, tree damage to a structure will be covered for the damage to the structure and the removal of the tree or trees that hit the structure. Homeowners policies contain “Additional Coverages” that include Debris Removal (due to a covered peril). Within this additional coverage is language for how the policy will treat the removal of trees specifically. In a commonly used policy form in the industry, removal of trees is capped at $1,000 per loss. Coverage is trigger for removal when:

Your trees are felled by windstorm, hail, weight of ice, snow or sleet
Your neighbors tree (that falls in your yard) is felled by a peril listed in the Coverage C (contents coverage) portion of your policy. This actually gives more insured perils than for your trees.

Provided that:

The tree damages a covered structure
Does not damage a structure but blocks a driveway on your premise so that a vehicle cannot enter or leave
Does not damage a structure but blocks a ramp or other fixture that allows handicap access to the dwelling

So, as you can see the trees that fall in a storm that do not fit into one of these categories are not covered for removal. I have seen companies cover the complete removal of the tree that hits a structure. I have also seen companies pay to have the tree removed from the structure and then leave the actual removal from the premise in this subsection noted above. Irene was such widespread damage with insurance companies working frantically to get to customers that removal of trees hitting structures has yielded few complaints. Trees that have fallen and not damaged a structure are always a bone of contention because it is not well understood. It is the number one issue in wind and ice storms because most that fall do not hit a structure, block a driveway or handicap access to the home.

Trees or limbs from trees hitting cars are almost always a Comprehensive claim under an auto policy. It does not matter whose tree it was at the time of loss. It is very rare to see this done any differently.

Fences, pools and other structures on the premise should be covered by most policies for wind damage or from trees that are felled by wind. They may not get paid for on a replacement cost basis however. These items may fall under the Actual Cash Value (depreciation is factored) method of payment. This might also apply to awnings and outdoor equipment. Again, this can vary so check your policy.

Having said all of this there will be a property deductible that will need to be subtracted from the claim settlement.

Insurance is confusing as you can see. Irene was covered extensively by the media and how insurance policies handle flood and wind. The details of wind coverage are another matter. My attempt here is to educate so that consumers have a better understanding of how an insurance policy might handle a loss situation that is not uncommon. Irene was uncommon for sure but throughout the year wind and tree damage occurs on a regular basis. As always, contact your agent (or me if you happen to live in our marketing territory mostly NY,CT,VT but have some resources in surrounding states as well) for your particulars.

Next post will be about water damage as this was the big topic of discussion in Irene for our area and beyond.

Thanks for reading,

Tom

Posted in General Information, Homeowners Insurance, Why choose us for your insurance | 10 Comments »

Wind,Trees, Power and Water mix them together and what do you get? Confusion and Disappointment

September 1st, 2011

In the wake of Irene the tally begins. Damage is widespread for sure but most of it comes from wind, trees, loss of power and water. Insurance plays a vital role in the restoration from damage but it has limits. For these four items issues come up again and again. How these items get treated in the wake of a disaster, regardless of size, is important for you to know. Wind, trees, power and water are not necessarily easy coverages to identify. Coverage can be excluded and limited. Sometimes it can be addressed by endorsment or another policy.

One post on these topics would be a mile long so this is just the introduction. More information will follow soon. I will start with the loss due to water as that seems to be the most damaging . So, I will discuss Flood insurance, leaky basements, sump overflow and backup of sewer and drains. I will restrict the coverage explanations to Homeowners policies as they are the most prevelant. Variations will exist for rental properties and mobile homes. Stay tuned. I will keep it as easy to understand as I can.

Posted in Flood Insurance, General Information, Homeowners Insurance, Why choose us for your insurance | 8 Comments »

Insurance at the workplace

June 27th, 2011

Hi Everyone,

Welcome to InfoEd International, employees!! We are offerining you discount products via The Travelers Insurance Co. but also will quote your insurance needs with other carriers as well. We can review your insurance if it has been on autopilot for awhile or you bought it yourself and did not get much of an explanation as to what you purchased. This is a no hassel, no pressure way to get your coverage and pricing reviewed. Many of our carriers offer online functionality and all offer 24 hour claim service.

Check out this video for more information: http://www.youtube.com/watch?v=njf1QQzXhnY

Posted in General Information, Why choose us for your insurance | No Comments »

Be Careful of the “side” Equine Business

September 20th, 2010

Anyone who lives in the Capital District knows Saratoga County has a strong equine influence. Farms of all types dot the area. What many may not know is that many surrounding counties have many horse farms that offer a wide range of services. Although farms specializing in racing are certainly present the vast majority of farms are not racing oriented.

Farms offer services such as boarding, lessons, training, breeding, sales and events to showcase the farm. We have a special division within our operation that handles insurance for horse farms. What we have found is confusion with some farmowners as to what is covered or not covered in a homeowners insurance policy. The reason I say Homeowners policy is that some equine facilities are covered (incorreclty I might add) on a Homewoners policy.

If you run an equine business of ANY type and are relying on a Homeowners policy to respond to your losses call us immediately!! All Homeowners policies have exclusions for “business” activity. “Business” is defined in the policy and most definitions are very broad in nature to included part-time work and acitivities that generate $2,000 or more in ANNUAL revenue. So boarding a couple of horses in your barn to offset the cost of your own animals is most likely a business so not covered.

If your horse activity is striclty pleasure no need to worry. I have not seen any policies with “horse” exclusions for on or off premise activity. Many companies will underwrite your policy for the number of horses but two to four is usually not a problem. Some companies have also come out with hybrid Home policies that give expanded coverage for more pleasure horses and incidental business activities. If you have a business your best bet is a Farmowners policy which is designed to handle personal and commercial activities.

As always, read your policy for at least the limitations and exclusions or just call us and we can help!

Posted in Horse & Farm Insurance | No Comments »

When Insurance hits your “To Do” List: Make One call

September 16th, 2010

I am going to guess that in many ways your life is a lot like most people I know. It is busy. Not to say that is all bad but it is very busy. We also seem to have so many diversions and cool things we can be doing with our time. Sad to say insurance does not seem to ever hit the cool list. That really is to bad because we see some very interesting things in the course of a work week.

Insurance ,like any service, needs to add value and convenience or it becomes irrevelent. Insurance protects you from the financial consequences of a loss. It satisfies requirements of lenders so their interests are protected as well as meeting the demands of state authorities that ensure the general public has a means of restitution for unforseen events. That is the value.

Buying from independent agents gives you the convenience no other distribution channel can match. One call gets you multiple quotes for multiple products from various insurance companies. We can also efficiently explain your options and place your order. When things change independent agents can place virtually any insurance need you will ever have. One call (or email) does it all.

You don’t have to tell your story and answer the same questions over and over. You don’t have to research all the terms so you understand the coverage. If your price goes up and you don’t like it you contat the same source and they get you a new carrier but you still deal with the same people. You buy a boat call the same number, done. Buy a rental property, done. Buy a summer home, done. Had a few claims or driving issues no problem. New driver? Do it all the time. New baby want life insurance for yourself, do that too. Rent an apartment, buy a home, get a Harley, buy a plane call the same number. State Farm, Allstate, Amica, Erie, Geico and Progressive can give you product options for sure but not from 13 different sources like we can. Can’t be done.

One Call=Mulitple Quotes, Products and Companies

All you Need to make life easy.

Posted in General Information, Why choose us for your insurance | No Comments »

Driving, Drinking and Kids Do Not Mix

August 27th, 2010

We all know that there is and has been an all out war against drinking and driving across the country. No secret here for sure. Whether you operate or are a passenger you need to care. The Child Passenger Protection Act passed on 12/18/o9 here in NY makes the offense even more serious when children under the age of 16 are in your vehicle. The law is also know as Leandra’s Law due to a very unfortunate accident that occurred October 2009 in NYC.

When this law was passed it had another component with a different time frame of implementation. On August 15, 2010 the law triggered new additions to the existing alcohol related laws. This part of the law applies whether or not a child under the age of 16 is in your car or not. It also applies to first time offenders. The long and short is offenders will have to pay to install and maintain devices that are integrated into the ignition system of the car. These devices would require the driver to essentially take a breathalyzer before the car will start. Failure to comply or circumvent the law yields more bad things for the offender or an accomplice trying to aide the offender.

You can view the particulars on the NYS Division of Criminal Justice Services site. I’m sure there are other places as well. The link is http://criminaljustice.state.ny.us/pio/press_releases/2010-7-20_pressrelease.html for more information.

Insurance companies are tough on alcohol related offenses as well. With the advent of Insurance Scores (credit and loss based scores that determine pricing) it is less clear as to the dollar value of the offense but the underwriting is still difficult. Many companies will not entertain the risk which forces drivers with these offenses to carriers who are comfortable with it. Those carriers also tend to charge more.

If you have or want to obtain a Personal Umbrella Liability policy alcohol related offenses can make that problematic as well.

Drinking an driving does not mix for a whole host of reasons. Leandra’s law further ups the consequences for parents, guardians, and custodians because you are reported to the Statewide Central Register of Child Abuse and Maltreatment as well.

Some stats from the NYS Division of Criminal Justice Services: 311 arrests under Leandra’s law through July 10, 2010. Of that number 117 were women and 194 were men. Looks as if the counties of Erie, Westchester and Suffolk had the most activity but arrests have been made in 51 of the states 62 counties.

If you have not checked this out you should.

Posted in Car Insurance, General Information | No Comments »

Your Duties After a Loss

December 10th, 2009

Insurance contracts have conditions that dictate what you the policyholder is responsbile for in the event of a claim. These conditions vary by policy so I will generalize to some degree. The important thing is that you know they exist. Knowledge is power and it helps to demystify some of the claim process especailly if you have little experience with insurance claims.

The first on the list is prompt notice of the claim to your insurance company. When you notify an agent you have in essence notified the company. In our experience property claims can be discussed prior to a formal report being made to the insurance carrier in terms of how much damage has been sustained in relation to a deductible. We also help if a client has a prior claim history to discuss the potential of a new claim causing an issue with pricing or renewability. Liability claims and property claims that are not clear as to coverage will be reported as it is our obligation to the insurance company.

Protect property from further damage is another condition to which you should pay attention. If you have a property claim (auto or home) take steps to protect your property and keep records of the money you spent to do it. Insurance companies will typically reimburse for those expenses but if you take no steps to protect the property you could run into problems with your settlement.

Cooperate with the insurance company in the investigation of your claim. Sounds pretty straight forward but we have had claims closed with no payment just because the consumer did not cooperate with the company.

The “often as we reasonably require” condition which lists items such as medical exams, ability of claims personnel to view your property, examinations under oath and access to pertinent records.

Submission of a proof of losswhich essentially sets forth your version of the claim. This proof of loss should note the time and date of the loss. The insurable interests involved and any other insurance that may be in effect. Estimates, reciepts and an inventory of items (property loss) will be part of this submission. Getting this done accurately and timely speeds up the payment process so make the time to complete this document.

While I have generalized these conditions will be found in most insurance contracts. If you have a claim with our agency we will walk you through the process and check in on a regular basis to be sure there is no confusion. Knowing these conditions will better prepare you and increase the likelihood of a satisfactory settlement.

Posted in Claim Information, Why choose us for your insurance | No Comments »

Renters Insurance Gets No Respect

November 19th, 2009

It has been in the news over and over again. That’s a good thing because repetition may be what it takes to get the message into the hearts and minds of renters AND Landlords. Renters insurance is one of the most underutilized insurance products on the market today. It is easy to obtain, offers some great coverages and is very inexpensive.

News articles that appear in newspapers or personal finance magazines always talk about the importance of protecting belongings as well as picking up some protection against lawsuits. While this is certainly the crux of the product we would like to mention some of the situations that we often see where renters insurance fills coverage gaps that exist because of an individuals living situation.

The most common is the apartment rented by two or more people. Next we see a home owned by one person and their partner lives in the home as well. Lastly is a homeowner who rents out a portion of their house. What all these living situations have in common is the potentail for one person to have limited coverage or no coverage at all.

Homeowners insurance (Renters insurance is a form of Homeowners insurance) will provide some coverage at the discretion of the insured for property of others while ON the residence premise of the insured. So if in our first two examples the policyholder chose to have the coverage of their partner/roommate covered an insurance adjuster might go along with it. I can’t speak for all homeowners policies on the market today so reading your policy would be critical. Although this sounds nice there is no coverage for OFF premise exposures for the partner/roommate. So if something is stolen from a vehicle or lost on vacation coverage would not apply. This also does nothing for Liability coverage or Loss of Use coverage which pays hotel and restaurant charges if the apartment/home cannot be lived in due to a covered loss. The other issue is in a severe loss the policyholder might not have enough insurance for their own items let alone the belongings of a roommate/partner. Bottom line is for the partner/roommate relying on the policy of the insured for coverage is not a great idea and renters insurance solves all the problems.

For those who rent out a portion of their home exclusions exist for roomers, boarders and tenants of the insured. The choice of extending coverage is not usually an option. If family members happen to be the roomers or boarders coverage could be afforded. So for unrelated parties a Renters policy works nicely to fill the coverage gaps and gives the landlord/property owner the piece of mind that the activities of these parties are insured elsewhere.

The cost of Renters insurance can usually be had for under $150 per year and often times we see policies that are $100 or less. Call us if you would like to discuss your individual situation or check out or site on Renters Insurance at www.InsureRenters.com.

Posted in Renters Insurance | No Comments »

So you think your Home Business is Covered

October 15th, 2009

If you own a home based business you may find your Homeowners insurance falls short in terms of coverage. Home businesses are substantial in number. Statistics I have seen put the number in the millions and the sales in the billions.

Homeowners insurance was not designed to cover business exposures. In fact there are exclusions and limitations in the homeowners policy. Many policies consider a business a trade, profession or occupation engaged in on a part time, full time or occasional basis. There are also compensation amounts that may be as low as $2,000 that further refine the definition. The definition of business may vary depending on the carrier that writes your insurance but suffice it to say very few activities will fit through the definition to obtain coverage.

Once an activity is defined as a business your homeowners policy will have very little liability and property coverage to offer. Business property may be limited to $2500 while in your home and $500 while off premise. Again, these amounts may vary depending on which company you have chosen for coverage. Liability arising from the business will be excluded. Riders or endorsements can be attached to the home policy to work around the business definition but they should be explored carefully to be sure they fit your situation. If your business is a significant percentage of your income your home policy will offer no way to cover a loss of business income in the event of a loss at your home.

A better way to handle the exposure is to purchase a policy specifically designed for home based businesses. Some inusrance companies can even endorse a rider onto an existing home policy to cover the exposures. These home business policies are structured very much like a traditional commercial policy and often times have the advantage of lower minium premium levels than the commercial market. These policies can have additional insureds added if required by contract and offer higher limits of liability. Policies usually are underwritten based on the type of business. If your business fits into one of the underwriting categories the pricing can be done quickly. If for some reason your business is not an acceptable category then you may have to purchase a traditional commercial policy.

Insurance for home based businesses may be less expensive and easier to obtain than you think. Reliance on your homeowners policy to cover your exposures as a businessperson may not be the most practical way to go.

Posted in Business Insurance, General Information, Home Business Insurance, Homeowners Insurance, Why choose us for your insurance | 2 Comments »