If You Are Using Supplemental Heating Sources In Your Home, Take Proper Precautions

Heating Equipment Leading Cause Of Winter Home Fires, Says I.I.I.


NEW YORK, December 7, 2010— With oil rising to $90 a barrel this week, homeowners in the Northeast and Midwest who heat their homes with oil may be tempted to use supplementary heating sources to offset their high heating bills. These alternative heating sources, if not used properly, can contribute to an increased risk of fire, according to the Insurance Information Institute (I.I.I.).

Space heaters, wood stoves and other supplemental heating sources are the leading cause of home fires during the winter months, trailing only cooking equipment. The National Fire Protection Association reports that fixed and portable home heating devices account for two of every three home heating related fires and two of every three related deaths. In 2008 (the most recent statistics available), heating equipment was involved in an estimated 66,100 reported home structure fires, 480 civilian deaths, 1,660 civilian injuries, and caused direct property damage of $1.1 billion.

Fireplaces and chimneys were involved in 43 percent of these fires and 11 percent of the deaths. Fixed and portable space heaters, including wood stoves, were involved in 25 percent of the heating fires, but resulted in 74 percent of the fatalities.

By comparison, central home heating systems account for only a small percentage of heating-related fires and fatalities. Supplemental heating devices are more dangerous because they provide many opportunities for error by the people using them. Here are some of problems:

• Lack of regular cleaning, leading to creosote buildup in wood-burning devices, chimneys and connectors. (Creosote is a flammable, tar byproduct of wood smoke that builds up on the walls of a chimney or wood stove.)
• Failing to give space heaters enough space.
• Flaws in the construction or design of wood-burning equipment.
• Fueling errors involving liquid- or gas-fueled heating equipment.
• Improper installation.

“Damage caused by fire and smoke are covered under standard homeowners and renters insurance policies,” said Loretta Worters, vice president of the I.I.I. “Homeowners are also covered for water or other damage caused by fire fighters working to extinguish the blaze.

To protect yourself from the economic consequences of fires and other disasters, the I.I.I. advises homeowners to purchase enough insurance to rebuild the home and personal possessions.

“Unfortunately, many consumers do not know what is in their policy until they have to file a claim and at that point it is too late to purchase the right amount of financial protection,” Worters explained.

For those living in a community that charges fire department services, special coverage may be available. Generally, homeowners are reimbursed up to $500 of this cost and there is no deductible.

In 2009, there were 377,000 residential fires in the U.S., costing nearly $8 billion. Because of the deadly and destructive nature of fire, insurers offer discounts and preferred rates to homes and communities that take steps to reduce the risk of fire

Homes made of fire-resistant material or located near a fire department that is highly rated often have lower insurance rates. In addition, homeowners may be eligible for discounts up to 20 percent if the wiring in a home is upgraded, sprinkler systems installed or if the house has smoke and fire alarms that ring at an outside service. Even purchasing simple safety devices such as basic smoke detectors and fire extinguishers will generally provide discounts of at least 5 percent.

If you use supplemental heating sources, remember to follow these basic safety tips.

Portable Space Heaters
The biggest mistake people make with space heaters is placing them too close to flammable materials such as bedspreads, draperies, upholstery or clothing. Space heaters need at least three feet of clearance from anything that can burn.

• Make sure any new space heater carries the mark of an independent testing laboratory.
• Always turn space heaters off when you leave a room or go to bed.
• If you use an electric heater, do not overload the circuit. If you must use an extension cord (and it is better not to), choose one that is the same size or larger than the appliance cord. Do not use electric heaters in bathrooms or other areas where they may come in contact with water; the danger of electrocution is too great.
• If you use a kerosene heater, burn only kerosene. Gasoline, camp stove fuel or any other fuel except kerosene can be extremely dangerous if used in a kerosene heater. Make sure your kerosene is water-clear, not yellow. Refuel the heater outdoors.
• When turning a portable heating device on or off, follow the manufacturer's instructions. If possible, buy devices with automatic shutoff features.
  
  

Fireplaces and Woodstoves

• Wood and coal stoves, fireplaces, chimneys, chimney connectors and all solid-fueled heating equipment should be inspected and cleaned professionally each year, especially if they have not been used for some time. Fireplaces regularly build up creosote that needs to be cleaned out.
• Woodstoves should be UL listed and of solid quality and design. Install them with three feet of clearance from combustible surfaces and with adequate floor support and protection.
• Never use flammable liquids to start a fire in a fireplace or woodstove. Do not use excessive amounts of paper to build roaring fires. Never burn charcoal indoors; it can generate lethal amounts of carbon dioxide.
• Keep flammable material away from the hearth and mantel. Use a sturdy screen to keep sparks from flying into a room.
• Before you go to sleep, be sure your fireplace fire is cold. Never close the damper with hot ashes in the fireplace; the fire will heat up again and toxic carbon monoxide can spread into the house.
• Synthetic logs are increasingly popular because they are so easy to use. Follow the directions on the package. Never break a synthetic log apart to quicken the fire or use more than one log at a time. This could release dangerous levels of carbon monoxide.
  

Central Home Heating Systems
Make sure your furnace is in good working condition. Have it inspected regularly, and leave repairs to professionals.

Get into good safety habits and teaching family members what to do in a fire or other emergency. Print a list of emergency phone numbers such as the police and fire departments and place them near the telephones in your home. Make sure that smoke detectors and fire extinguishers are in good, working condition. Install a sophisticated alarm system that rings at an outside service to contact the fire, police or local emergency medical service.

The Institute for Business & Home Safety offers additional information on Alternative Heating Sources. For more information on making your home safer, contact the United States Fire Administration.


For More Information please visit: Insurance Information Institute

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THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
Insurance Information Institute, 110 William Street, New York, NY 10038, (212) 346-5500

Child Safety Seat Tips

If you have children it's important to make sure they are secured properly when you drive with them. They are almost always safer when riding in the back, in a car seat that is appropriate to their age and weight.

Using a car seat correctly can prevent injuries, but wrong usage is very common. Even a small mistake in how the seat is used can cause serious injury in a crash.

Tips to Ensure You Are Using a Child Car Seat Correctly

1. Never put an infant in the front seat of a vehicle with a passenger air bag.
2. Route harness straps in lower slots at or below shoulder level.
3. Keep harness straps snug and fasten the clip at armpit level.
4. Make sure the straps lie flat and are not twisted.
5. Dress your baby in clothes that allow the straps to go between the legs. Adjust the straps to allow for the thickness of your child’s clothes. Do not use bulky clothes that could increase slack in a crash.
6. To keep your newborn from slouching, pad the sides of the seat and between the child’s legs with rolled up up diapers or receiving blankets.
7. Put the car seat carrying handle down when in the car.
8. Infants must ride in the back seat facing the rear of the car. This offers the best protection for your infant’s neck.
9. Recline the rear-facing seat at a 45-degree angle. If your child’s head flops forward, the seat may not have reclined enough. Tilt the seat back until it is level by wedging firm padding such as a rolled towel, under the front of the base of the seat.
10. All new car seats are now required to come equipped with top tether straps. A tether strap is a belt that is attached to the car seat and bolted to the window ledge or the floor of the car. They give extra protection and keep the car seat from being thrown forward in a crash. Tether kits are also available for most older car seats. Check with the manufacturer to find out how to get a top tether for your seat. Install it according to instructions. The tether strap may help make some seats that are difficult to install fit more tightly.

Do not use a car seat if any of the following apply:

1. It is too old. Look on the label for the date it was made. If made before January 1981, the seat may not meet strict safety standards and its parts are too old to be safe. Some manufacturers recommend using seats for only 6 years.
2. It does not have a label with the date of manufacture and model number. Without these, you cannot check on recalls.
3. It has been in a crash. If so, it may have been weakened and should not be used, even if it looks all right.
4. It does not come with instructions. You the instructions to know how to install and use the car seat properly. Do not rely on the former owner’s instructions. Get a copy of the manual from the manufacturer.
5. It has cracks in the frame of the seat.
6. It is missing parts. Used seats often come without important parts. Check with the manufacturer to make sure you can get the right parts.

To find out if your child safety seat has been recalled, you can call the Auto Safety Hotline ( 888-DASH-2-DOT ). If the seat has been recalled, be sure to follow the instructions for the recall or to get the necessary parts. You should also get a registration card for future recall notices from the Hotline.

For more information about infant or toddler car seats, go to the Web site of the Insurance Institute for Highway Safety. Also check out the National SafeKids Campaign which offers a free Child Car Seat Locator that allows you to enter your child’s age and weight, and get back a list of recommended car seats. Another good source of information on car seats is the American Academy of Pediatrics Web site, which offers a detailed shopping guide to car seats.

Is your child ready for a regular seat belt?

Keep your child in a car seat for as long as possible. When he or she is big enough, make sure that seat belts in your car fit your child correctly. The shoulder belt should lie across the shoulder, not the neck or throat. The lap belt must be low and flat across the hips, not the stomach. The child’s knees should bend easily over the edge of the vehicle seat. Seat belts are made for adults. If the seat belt does not fit your child correctly, he or she should stay in a booster seat until the belt fits.

Never tuck the shoulder belt under the child’s arm or behind his or her back and use lap belts only as a last resort. Try to get a lap-shoulder belt installed in your car if it doesn’t already have one. If you must use a lap belt, make sure it is worn tight and low on the hips, not across the stomach.

For more information visit: Insurance Information Institute

Celebrate the Season of Light Safely

Candles, lights and decorations are an essential part of the holiday season. Unfortunately, they also increase the risk of fire and injury. Each year fires occurring during the holiday season injure nearly 3,000 individuals and cause over $900 million in damage.*

To have a safe and healthy holiday season, the Insurance Information Institute (I.I.I.) recommends following these important safety tips:

Christmas trees

• Pick out a freshly cut Christmas tree-one that is too dry can easily catch fire. Trim at least one inch from the bottom of the tree; this will increase the tree's ability to absorb water. Live trees need a lot of water so check the water level and refill often.
  
  
• Place the tree in a secure stand designed to hold the weight of the tree. Never place a Christmas tree near a heat source such as a fireplace, radiator or stove. Do not use candles to decorate a tree. And never go near a tree with an open flame such as a candle, lighter or matches.
  
  
• Dispose of the tree when it becomes dry, or when the needles begin to fall off in large quantities. Never burn old trees or needles in a fireplace or wood-burning stove. Instead, take it to a recycling center or have it removed by a community pick-up service.
  
  
• If you buy an artificial tree, make sure that it is made of fire-resistant material.

Decorations and lights

• Do not overload electrical sockets by plugging too many cords into a single outlet. Always unplug holiday lights when no one is home or when everyone goes to sleep for the evening. Use only Underwriters Laboratories (UL) approved lights. Inspect old light strands for any cracks, frayed edges or bare spots. Throw out any damaged chords.
  
  
• When decorating a tree with lights, fasten them securely to the tree and make sure that no bulbs come in contact with needles or branches. Check wires regularly. If they become warm, unplug the lights immediately.
  
  
• Never use indoor lights outside. They are not designed to withstand the elements and if they get wet, can cause an electric shock. Remove outdoor lighting as soon as the season is over. Even specially created outdoor decorations are not designed to withstand prolonged exposure to the elements.
  
  
• Do not block exit paths to doors or fire escapes with Christmas trees or other decorations.

Fireplaces

• Never burn wrapping paper in the fireplace. This may release fire-starting embers or produce a build-up of dangerous chemical fumes in the home.

Entertaining

• If you entertain guests who smoke, provide large ashtrays and check for cigarette butts in upholstered furniture before going to bed. Cigarette fires are a leading cause of fire fatalities in the home.
  
  
• Do not leave the stove unattended when cooking-in the excitement of entertaining, it is easy to forget something on the stove and leave it to burn, causing a potential fire hazard.

Children and pets

• Place all ornaments and candles out of reach of small children and pets. Small or breakable ornaments can be easily knocked down, which can result in cuts or choking. Curious children and playful pets can topple a tree in seconds causing serious injury.
  
  
• Beware of toxic decorations. Mistletoe and holly berries may be poisonous if more than a few are swallowed. Old tinsel may contain lead so discard old tinsel if you are not sure of its composition. Fire salts (which produce a multi-colored effect when thrown on burning wood) contain heavy metals, which if swallowed may cause serious gastrointestinal problems and vomiting.

Candles

• Check candles frequently to make sure they do not burn down too far or drip hot wax. Make sure candles are placed in sturdy, non-combustible holders away from decorations and other combustible materials.
  
  
• Clean and trim candlewicks to 1/8 inch to 1/4 inch before lighting. Long or crooked wicks cause uneven burning and dripping. Candles should be placed at least three inches apart so they do not melt onto one another. Keep candles free of wick trimmings, matches or any flammable material that might ignite.
  
  
• Never leave candles burning unattended. Remember to snuff out all candles when leaving a room or before going to sleep.

Give your family the priceless gift of safety this holiday season. Prepare for the New Year by getting into good safety habits and teaching family members what to do in a fire or other emergency. Print a list of emergency phone numbers such as the poison control center, and police and fire departments and place them near the telephones in your home. Make sure that smoke detectors and fire extinguishers are in good, working condition.

You may also want to consider installing a sophisticated alarm system that, in the event of an emergency, rings at an outside service to contact the fire, police or local emergency medical service.



For more information on making your home safer, contact the United States Fire Administration at or the Candle Fire Safety Association.

For more information on insurance and safety, visit the I.I.I. Web site.

_________________
*U.S. Fire Administration figures


The I.I.I. is a nonprofit, communications organization supported by the insurance industry.

Travel Insurance

Before leaving on vacation, make sure you have adequate insurance. Vacations can sometimes cost thousands of dollars so it is important to have the proper insurance protection in case the cruise or tour operator goes bankrupt or you need to cancel the trip due to illness or other unforeseen events.

There are four major types of travel insurance, although you can also purchase packages that offer several options, including Trip Cancellation, Lost Baggage, Medical, Dental, Emergency Evacuation, 24 Hour Traveler Assistance, Baggage Delay, Travel Delay, and Accidental Death Coverages. Some policies also have options for Collision/Damage coverage for rented cars.

1. Trip Cancellation Insurance

This would reimburse you if the cruise line or tour operator goes out of business. It would also provide coverage if you have to cancel the trip due to sickness, a death in the family or another calamity listed in the policy.

In addition, if you or an immediate family member becomes seriously ill or is injured during the trip most policies would reimburse you for the unused portion of the vacation.

The cost is generally five to seven percent of the price of the vacation, so a $5,000 trip would cost roughly $250 to $350 to insure.

Trip cancellation is very different from a Cancellation Waiver that many cruise and tour operators offer. Waivers are relatively inexpensive, costing approximately $40 to $60. They provide coverage if you have to cancel the trip, but they have many restrictions. They must be purchased when you book the trip and will usually not cover you immediately before departure (the time period most people cancel) or after the trip has begun. Most importantly, waivers are not insurance. Cancellation Waivers are not regulated by the state department of insurance, so if your tour or cruise operator gets into financial difficulty, you may not be able to collect.

2. Baggage Insurance or Personal Effects Coverage

This would provide coverage if your personal belongings are lost, stolen or damaged during the trip.

To insure $1,000 worth of personal belongings for a week, it would cost roughly $50 per year.

Before purchasing this type of coverage, find out how much insurance the airline or trip operator provides for your belongings.

Also, check your homeowners or renters policy. It will usually provide coverage for off-premises theft. Therefore, if your luggage is stolen, your insurer will pay to replace it, less the deductible.

If you are traveling with expensive electronic equipment, jewelry or sporting gear, it might be more cost-effective to purchase a floater or endorsement to your homeowners or renters policy. The cost to insure a $1,000 ring would be between $10 and $40 annually. This would provide full coverage for the item, anywhere in the world, usually for one year.

3. Emergency Medical Assistance

This provides insurance and medical assistance for travelers. It would cover you if you had to be airlifted off a mountain due to a skiing or hiking accident, or if you had to stay for a prolonged period of time in a foreign hospital. It would also provide coverage if you got seriously sick or were injured and needed to be flown home. Some commercial airlines require very sick passengers to travel on a stretcher with a doctor. This means that you might have to purchase 10 or more seats on a plane at a possible cost of over $10,000.

Before purchasing this type of coverage, check with your own health insurance carrier. Find out what type of coverage you have when traveling abroad and if there are any limits. Also, ask if the policy will pay to fly you home or to a country with first-rate medical care.

4. Accidental Death

This provides a variety of coverages if you or a family member die on the trip. If you have a good life insurance plan or made other financial provisions for your loved ones, this may be duplicate insurance.

Your credit card company may provide travel-related services and coverage. You can also purchase travel insurance from either a travel agent or you can buy directly from an insurer that specializes in this type of coverage.

For More Information Visit: Insurance Information Institute

Trying to Save Money? Avoid the Five Biggest Insurance Mistakes!

Tips For Saving Money On Home and Auto Insurance, From the I.I.I.

With nearly one in 10 Americans out of work, and others forced to make ends meet with less money, many people are looking for ways to cut costs. There are smart ways to save on home and auto insurance; however, there are also mistakes that can result in being dangerously underinsured, according to the Insurance Information Institute (I.I.I.)

“When money is tight, it extremely important to be financially protected against a catastrophe with the right amount and type of insurance,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “By taking a few simple steps, it is possible to cut costs and still be protected should disaster strike.”

Following are five of the biggest insurance mistakes that consumers should look out for:

1. Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.

2. Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.

3. Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas.

A better way to save: Before purchasing a home, check with the NFIP to check whether it is in a flood zone; if so, consider a less risky area. If you are already living in a flood zone area, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.

4. Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket—and those costs may be steep.

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

5. Neglecting to buy renters insurance. A renters policy covers your possessions and additional living expenses if you have to move out due to a disaster. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.

The I.I.I. website has consumer information on insurance, as well as more tips for saving money on homeowners and auto insurance.

THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

INSURANCE INFORMATION INSTITUTE, 110 WILLIAM STREET, NEW YORK, NY 10038, (212) 346-5500

FOR MORE INFORMATION VISIT: INSURANCE INFORMATION INSTITUTE

Disasters: Are You Covered?

Common Questions Asked by Homeowners about Insurance

If a fire, flood, earthquake, or some other natural disaster were to destroy or damage your home, would you have the right insurance coverage to rebuild your house?

This brochure, based on the questions consumers most frequently ask, explains what is covered in a standard homeowners policy and what is not. Where gaps in coverage exist, it tells you how to fill them.

To simplify explanations, we assume that you have a policy known as Homeowners-3 (HO-3), the most common homeowners policy in the United States. Find out what type of homeowners policy you have. If you have a different policy, you should review your options in question #17.

QUESTION # 1: AM I COVERED FOR DIRECT LOSSES DUE TO FIRE, LIGHTNING, TORNADOES, WIND STORMS, HAIL, EXPLOSIONS, SMOKE, VANDALISM AND THEFT?

Answer: Yes. The HO-3 provides broad coverage for these and other disasters or “perils,” as they are called in the policy, including all those listed in the question. You should check the dollar limits of insurance in your policy and make sure you are comfortable with the amount of insurance you have for specific items. Also, if you live near the Atlantic or Gulf coasts there may be some restrictions on your coverage for wind damage. Ask your agent about windstorm/hurricane deductibles. In areas prone to hailstorms, you may have a specific hail damage deductible.

QUESTION # 2: ARE MY JEWELRY AND OTHER VALUABLES COVERED?

Answer: The standard policy provides only from $1,000 to $2,000 for theft of jewelry. If your jewelry is worth a lot more, you should purchase higher limits. You may wish to add a floater to your policy to cover specific pieces of jewelry and other expensive possessions such as paintings, electronic equipment, stamp collections or silverware, for example. The floater will provide both higher limits and protect you from additional risks, not covered in your normal policy.

QUESTION # 3: IF MY HOUSE IS TOTALLY DESTROYED IN A FIRE AND I HAVE $150,000 WORTH OF INSURANCE TO COVER THE STRUCTURE, WILL THIS BE ENOUGH TO REBUILD MY HOME?

Answer: If the cost of rebuilding your home is equal to or less than $150,000 you would have enough coverage. The HO-3 policy pays for structural damage on a replacement cost basis. If the cost of replacing your home is, say, $120,000, then that is all the insurance you need. On the other hand if the cost of rebuilding your home is $180,000, then you will be short $30,000.

If you live in an area that is frequently hit by major storms, ask you insurance company about an extended or guaranteed replacement cost policy. This will provide a certain amount over the policy limit to rebuild your home so that if building costs go up unexpectedly, due to high demand for contractors and materials, you will have extra funds to cover the bill.

If you choose not to rebuild your home, you will receive the replacement cost of your home, less depreciation. This is called actual cash value. You should make sure that the amount of insurance you have will cover the cost of rebuilding your house. You can find out what this cost is by talking to your real estate agent or builders in your area.

Do not use the price of your house as the basis for the amount of insurance you purchase. The market price of your house includes the value of the land on which the house is situated. In almost all cases, the land will still be there after a disaster, so you do not need to insure it. You only need to insure the structure.

QUESTION # 4: AM I COVERED FOR FLOOD DAMAGE?

Answer: No. So, if you live in a flood-prone area it may be wise to purchase flood insurance. Flood insurance is provided by the federal government, under a program run by the Federal Insurance Administration. In some parts of the country, homes can be damaged or destroyed by mudslides. This risk is also covered under flood policies. Contact your agent or company representative to get this insurance or call the Federal Emergency Management Agency at 1-800-427-4661 or visit its Web site atwww.fema.gov.

QUESTION # 5: A PIPE BURSTS AND WATER FLOWS ALL OVER MY FLOORS. AM I COVERED?

Answer: Yes. The HO-3 covers you for accidental discharge of water from a plumbing system. You should check your plumbing and heating systems once a year. While you are covered for damage, who needs the mess and hassle?

QUESTION # 6: WHAT IF WATER SEEPS INTO MY BASEMENT FROM THE GROUND, AM I COVERED?

Answer: No. Water seepage is excluded under the HO-3. And if the water seepage is not due to a flood you will not be covered under a flood policy. Seepage is viewed as a maintenance issue and is not covered by insurance. You should see a contractor about waterproofing your basement.

QUESTION # 7: AM I COVERED FOR EARTHQUAKE DAMAGE?

Answer: No. Earthquake coverage is sold as additional coverage to the homeowners policy. To find out whether you should buy this insurance, talk to your agent or company representative. The cost of this coverage can vary significantly from one area to another, depending on the likelihood of a major earthquake.

QUESTION # 8: A NEIGHBOR SLIPS ON MY SIDEWALK OR FALLS DOWN MY PORCH STEPS AND THREATENS TO TAKE ME TO COURT FOR DAMAGES. DOES MY POLICY PROTECT ME?

Answer: Yes. The policy will pay for damages, if a fall or other accident on your property is the result of your negligence. It will also pay for the legal costs of defending you against a claim. Also, the medical payments part of your homeowners policy will cover medical expenses, if a neighbor or guest is injured on your property. You should check to see how much liability protection you have. The standard amount is $100,000. If you feel you need more, consider purchasing higher limits.

QUESTION # 9: A TREE FALLS AND DAMAGES MY ROOF DURING A STORM. AM I COVERED?

Answer: Yes. You are covered for the damage to your roof. You are also covered for the removal of the tree, generally up to a $500 limit. You should cut down dead or dying trees close to your house and prune branches that are near your house. It's true that your insurance covers damage, but falling trees and branches can also injure your family.

QUESTION # 10: DURING A STORM, A TREE FALLS BUT DOES NO DAMAGE TO MY PROPERTY. AM I COVERED FOR THE COST OF REMOVING THE TREE?

Answer: Your trees and shrubs are covered for losses due to risks like vandalism, theft and fire, but not wind damage. However, if a fallen tree blocks access to your home you may be covered for its removal. Decide if you need extra insurance for the trees, plants and shrubs on your property. You may be able to purchase extra insurance, which will not only cover the cost of removing fallen trees, but will also cover the cost of replacing trees, and other plants.

QUESTION # 11: IF A STORM CAUSES A POWER OUTAGE AND ALL THE FOOD IN MY REFRIGERATOR OR FREEZER IS SPOILED AND MUST BE THROWN OUT, CAN I MAKE A CLAIM?

Answer: The general answer is no. However, there are a number of exceptions. In some states, food spoilage is covered under the homeowners policy. In addition, if the power loss is due to a break in a power line on or close to your property, you may be covered. You should check with your agent to find out whether you are covered for food spoilage in your state. If not, you can add food spoilage coverage to your policy for an additional premium.

QUESTION # 12: I HAVE CHILDREN AWAY AT COLLEGE. ARE THEY COVERED BY MY HOMEOWNERS INSURANCE?

Answer: If they’re full-time college students and part of your household, your insurance generally provides some coverage in a dorm, typically 10 percent of the contents limit. If they live off campus, some companies may not provide this limited coverage if the apartment is rented in the student’s name.

QUESTION # 13: MY GOLF CLUBS ARE STOLEN FROM THE TRUNK OF MY CAR. DOES MY HOMEOWNERS POLICY COVER THE LOSS?

Answer: Yes. The HO-3 covers your personal property while it is anywhere in the world. However, if your golf clubs are old, you will only get their current value, which may not be enough to purchase a new set. Consider buying a replacement cost endorsement for your personal property. This way you will get what it costs to replace the golf clubs, less the applicable deductible.

QUESTION # 14: I HAVE A SMALL POWER BOAT. IF IT IS STOLEN, AM I COVERED? WHAT IF THERE IS A BOATING ACCIDENT AND I GET SUED? AM I COVERED FOR THAT?

Answer: Whether or not you are covered for either theft or liability depends on the size of the boat, the horsepower of the engine and your insurance company. Coverage for small boats under homeowners policies varies significantly. Ask your insurance representative whether you need a Boatowners policy.

QUESTION # 15: MY HOUSE IS CLOSE TO THE OCEAN. I’VE HEARD THAT IF IT IS DESTROYED BY THE WIND, THE TOWN'S NEW BUILDING CODE REQUIRES ME TO REBUILD THE HOUSE ON STILTS. THIS WILL ADD $30,000 TO THE COST OF REBUILDING MY HOUSE. AM I COVERED FOR THIS EXTRA COST?

Answer: No. The HO-3 excludes costs caused by ordinances or laws that regulate the construction of buildings. You can purchase an Ordinance or Law endorsement. This will cover the extra costs involved in meeting new building codes.

QUESTION # 16: AM I COVERED FOR “ACTS OF GOD”?

Answer: Sometimes. The term “Acts of God” is not specifically mentioned in homeowners insurance policies. It usually refers to natural disasters like hurricanes and tornadoes, as opposed to man-made acts, like theft and auto accidents. Some natural disasters, such as damage from windstorms, hail, lightning and volcanic eruptions, are covered under homeowners insurance. Damage from floods and earthquakes is not.

QUESTION # 17: WHAT SHOULD I DO IF MY POLICY PROVIDES LESS COVERAGE THAN THE HO-3?

Answer: Review your coverage with your agent. Some older policies provide less coverage than the HO-3. They may not provide coverage for water damage, theft, or liability. They may also provide coverage for the house on an actual cash value basis, rather than a replacement cost basis.

Actual Cash Value means replacement cost less depreciation. For example, if your roof is destroyed in a storm, the insurance will only pay for the cost of a new roof less the amount of depreciation of the old roof. If your roof was in great shape, this deduction will not be large. However, if the roof was old and worn out, the deduction for depreciation may be significant. You should try to get an HO-3.

For more information, contact your agent or company representative. You can also visit: Insurance Information Institute

This brochure was reviewed by the Cooperative State Research, Education, and Extension Service, USDA. For additional assistance with homeownership questions, contact your County Extension office listed under County Government in your local telephone directory.

Halloween: Fun for Kids, Worries for Adults

What's a big treat for kids of all ages but a big worry for parents and motorists? It's Halloween!

Parents can minimize risks this October 31 by making sure their trick-or-treating youngsters follow some safety tips, advises the Insurance Information Institute (I.I.I.).

Smart parents can ensure a safe Halloween by accompanying small children around the neighborhood. If children are old enough to explore the neighborhood on their own, advise them to visit homes where they know they'll be welcome. If the house is dark and uninviting, tell the kids to stay away.

Parents should also leave the porch light on once it's dark. It will be a signal that you welcome kids and it also will help to brighten the neighborhood.

Parents should warn children to stay on the sidewalk and to cross the streets carefully. It's also a good idea to put reflective tape on costumes and trick-or-treat bags and to arrange for youngsters to go out in groups rather than individually.

Here are more safety tips:

• Make sure costumes aren't loose-fitting, which could cause the child to trip and fall.
  
  
• Use make-up instead of masks. Some masks can obstruct the child's vision.
  
  
• Make sure all costumes are made of non-flammable material.
  
  
• Keep lighted jack-o'-lanterns and candles away from children or flammable materials.
  
  
• Inspect all treats before allowing children to eat them.

The I.I.I. urges motorists to drive slowly in residential areas and to honk their horns on dimly lit streets to alert children. Drivers also need to watch out for youngsters crossing against the light, darting out from between parked cars and walking in the street.

For More Information Visit: Insurance Information Institute

Halloween: Fun for Kids, Worries for Adults

What's a big treat for kids of all ages but a big worry for parents and motorists? It's Halloween!

Parents can minimize risks this October 31 by making sure their trick-or-treating youngsters follow some safety tips, advises the Insurance Information Institute (I.I.I.).

Smart parents can ensure a safe Halloween by accompanying small children around the neighborhood. If children are old enough to explore the neighborhood on their own, advise them to visit homes where they know they'll be welcome. If the house is dark and uninviting, tell the kids to stay away.

Parents should also leave the porch light on once it's dark. It will be a signal that you welcome kids and it also will help to brighten the neighborhood.

Parents should warn children to stay on the sidewalk and to cross the streets carefully. It's also a good idea to put reflective tape on costumes and trick-or-treat bags and to arrange for youngsters to go out in groups rather than individually.

Here are more safety tips:

• Make sure costumes aren't loose-fitting, which could cause the child to trip and fall.
  
  
• Use make-up instead of masks. Some masks can obstruct the child's vision.
  
  
• Make sure all costumes are made of non-flammable material.
  
  
• Keep lighted jack-o'-lanterns and candles away from children or flammable materials.
  
  
• Inspect all treats before allowing children to eat them.

The I.I.I. urges motorists to drive slowly in residential areas and to honk their horns on dimly lit streets to alert children. Drivers also need to watch out for youngsters crossing against the light, darting out from between parked cars and walking in the street.

For More Information Visit: Insurance Information Institute

Winter Weather Preparation

Ice, snow and wind can have devastating consequences on your home. The time to winterize is when the leaves begin to turn and not when the snow begins to fall.

Homeowners should take the following precautions:

Maintain Gutters
Remove leaves, acorns, sticks and other debris from gutters so melting snow and ice can flow freely. This can prevent "ice damming"–a condition where water is unable to properly drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls. You may also consider installing gutter guards. Available in most hardware and home stores, gutter guards are screens that prevent debris from entering the gutter and direct the flow of water away from the house and into the ground.

Trim Trees and Remove Dead Branches
Ice, snow and wind can cause weak trees or branches to break, damaging your home, car or injuring someone walking on your property.

Check Insulation
Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic it can cause snow or ice to melt on the roof. The water re-freezes causing more snow and ice to build up. This can result in a collapsed roof, and can contribute to ice damming. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing.

Maintain Pipes
Wrap pipes with heating tape and insulate unfinished rooms such as garages that frequently have exposed pipes. Also, check for cracks and leaks. Have minor pipe damage fixed immediately to prevent much costlier repairs in the future.

Keep the House Warm
The temperature in your house should be at least 65 degrees. The temperature inside the walls where the pipes are located is substantially colder than the walls themselves. A temperature lower than 65 degrees will not keep the pipes from freezing.

Check Heating Systems
The proper use and maintenance of furnaces, fireplaces and wood-burning stoves can prevent fire and smoke damage. Have furnaces, boilers and chimneys serviced at least once a year. Make sure that smoke and fire alarms are working properly and consider installing a carbon dioxide detector.

Maintain Steps and Handrails
Broken stairs and banisters can become lethal when covered with snow and ice. Make repairs now to prevent someone from falling and seriously being injured.

Get To Know Your Plumbing
Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent the pipes from bursting.

Hire A Licensed Contractor
Have a professional survey your home for any structural damage. If damage is discovered, have it repaired immediately so further damage will not occur during the winter. Also, find out about ways to prevent water damage due to snow-related flooding. Plastic coatings for internal basement walls, sump-pumps and other methods can prevent damage to your home and belongings.

Plan For Being Away
If you are not going to be in your home this winter for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting. Also, have someone check on your home on a regular basis. If there is a problem, it can be fixed quickly, thus lessening any damage. Activity at your home will also reduce the likelihood that it will be burglarized.

Standard homeowners policies cover winter-related disasters such as burst pipes, ice dams, wind damage caused by weight of ice or snow.

Damage to homes caused by flooding is usually excluded from most standard homeowner policies. Flood insurance is available from the National Flood Insurance Program. Ask your insurance professional about flood insurance, as well as specific advice about winter-proofing your home.

For More Information Visit: Insurance Information Institute

Deer-Vehicle Collisions Are On the Rise - Make Sure You Have Comprehensive Coverage On Your Auto Policy

Cars and deer can be a lethal combination. Deer migration and mating season generally runs from October through December, and causes a dramatic increase in the movement of the deer population. As a result, more deer-vehicle collisions occur in this period than at any other time of year, so drivers need to be especially vigilant, according to the Insurance Information Institute (I.I.I.).

Damage caused by an accident with deer or other animals is covered under the optional comprehensive portion, not the collision portion, of an automobile insurance policy. Comprehensive auto insurance includes almost everything that might go wrong with your vehicle, except collision, including: fire, theft, vandalism or malicious damage, riot, flood, earthquake or explosion, hail, windstorm, falling or flying objects, damage due to contact with a bird or animal and sometimes, depending on the policy, windshield damage.

There are more than 1.6 million deer-vehicle collisions each year resulting in about 200 fatalities, tens of thousands of injuries and over $3.6 billion in vehicle damage. An additional billion dollars is spent on medical payments for injuries to people in the car and out-of-pocket expenses paid by vehicle owners, bringing the total cost to approximately $4.6 billion.

The average claim for deer-vehicle collisions is $3,100, with costs varying depending on the type of vehicle and severity of the damage, up 1.7 percent from a year ago. While the number of miles driven by U.S. motorists over the past five years has increased just 2 percent, the number of deer-vehicle collisions during that time has grown by 10 times that amount.

State Farm estimates that 2.3 million collisions between deer and vehicles occurred in the U.S. during the two-year period between July 1, 2008 and June 30, 2010. That is 21.1 percent more than five years earlier.

Not only is urban sprawl displacing deer from their natural habitat, but the deer population is also growing. As a result, many of them find their way onto highways and into suburban neighborhoods, especially during deer season.

“As our wildlife habitat continues to shrink, accidents with deer and other animals are likely to increase,” said Loretta Worters, vice president of the I.I.I. “Drivers should stay alert and pay particular attention to the sides of the road, especially during the hours just before dusk and just before daylight.”

Fortunately, there are steps you can take to decrease the likelihood of being involved in a deer-vehicle collision.

Drivers should be aware of the following:

• Deer are not just found on rural roads near wooded areas; many deer crashes occur on busy highways near cities.

• Deer are unpredictable, especially when faced with glaring headlights, blowing horns and fast-moving vehicles. They often dart into traffic.

• Deer often move in groups. If you see one, there are likely to be more in the vicinity.

Drivers should take the following precautions:

• Drive with caution when moving through deer-crossing zones, in areas known to have a large deer population and in areas where roads divide agricultural fields from forestland.

• Always wear your seatbelt. The Insurance Institute for Highway Safety reports that in a study of fatal animal crashes, 60 percent of people killed were not wearing a seatbelt. Sixty-five percent of people killed in animal related crashes while riding motorcycles were not wearing a helmet.

• When driving at night, use high beam headlights when there is no oncoming traffic. The high beams will better illuminate the eyes of any deer on or near the roadway.

• Be especially attentive from sunset to midnight and during the hours shortly before or after sunrise. These are the highest risk times for deer-vehicle collisions.

• Brake firmly when you notice a deer in or near your path, but stay in your lane. Many serious crashes occur when drivers swerve to avoid a deer and hit another vehicle or lose control of their cars.

• Do not rely on devices such as deer whistles, deer fences and reflectors to deter deer. These devices have not proven effective.

In the event your vehicle strikes a deer, try to avoid going near or touching the animal. A frightened and wounded deer can hurt you and further injure itself. If the deer is blocking the roadway and poses a danger to other motorists, you should call the police immediately.

Contact your insurance agent or company representative as quickly as possible to report any damage to your car.

FOR MORE INFORMATION ABOUT INSURANCE: WWW.III.ORG

THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

INSURANCE INFORMATION INSTITUTE, 110 WILLIAM STREET, NEW YORK, NY 10038, (212) 346-5500

Why Should I Consider Purchasing an Annuity?

Annuities can serve many useful purposes.

If you are in a saving-money stage of life, a deferred annuity can:

• Help you meet your retirement income goals. Employer-sponsored plans such as a 401(k), 403(b) or Keogh are an important part of planning for retirement. However, contributions to these plans and to IRAs are limited, and they might not add up to enough for the retirement income you need, especially if you started saving for retirement late or had contributions interrupted—perhaps due to job changes and/or family responsibilities. Moreover, your social security and defined-benefit pension (if you have one) may provide less than you need to retire. Remember that the purchasing power of defined-benefit pension income is eroded by inflation.
• Help you diversify your investment portfolio. Investment experts routinely advise that, to get the best return for a given level of risk, you should diversify your investments among a number of asset classes. Fixed annuities, in particular, offer a unique asset class—an investment that is guaranteed not to decrease and that will actually increase at a specified interest rate (and, often, potentially more). The guarantees are supported by the claims-paying ability of the insurer.
• Help you manage your investment portfolio. Investment experts routinely advise that, whenever your investments in various asset classes get too far from the percentage allocations you prefer, you “rebalance” to the original formulation, by shifting funds from the classes that have grown faster to the ones that have grown more slowly. If you do this with mutual funds, you pay capital gains taxes; if you do it in a variable annuity, you don’t pay capital gains taxes. When you eventually withdraw money from the annuity (which could be many years after the rebalancing), you pay tax then at the ordinary income rate.

If you are in a need-income stage of life, an immediate annuity can:

• Help protect you against outliving your assets. Social security pays retirement income for as long as you live, as do defined-benefit pension plans. But the only other source of income available that continues indefinitely is an immediate annuity.
• Help protect your assets from creditors. Generally the most that creditors can access is the payments from an immediate annuity as they’re made, since the money you gave the insurance company now belongs to the company. Some state statutes and court decisions also protect some or all of the payments from those annuities.

For More Information Visit: Insurance Information Institute

What Is In a Standard Homeowners Insurance Policy?

A standard homeowners insurance policy includes four essential types of coverage. They include:

1. Coverage for the structure of your home.
2. Coverage for your personal belongings.
3. Liability protection.
4. Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.

1. The structure of your house

This part of your policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear. When purchasing coverage for the structure of your home, it is important to buy enough to rebuild your home.

Most standard policies also cover structures that are detached from your home such as a garage, tool shed or gazebo. Generally, these structures are covered for about 10% of the amount of insurance you have on the structure of your home. If you need more coverage, talk to your insurance agent about purchasing more insurance.

2. Your personal belongings

Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. Most companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of insurance on the structure of your home, you would have between $50,000 to $70,000 worth of coverage for your belongings. The best way to determine if this is enough coverage is to conduct a home inventory.

This part of your policy includes off-premises coverage. This means that your belongings are covered anywhere in the world, unless you have decided against off-premises coverage. Some companies limit the amount to 10% of the amount of insurance you have for your possessions. You have up to $500 of coverage for unauthorized use of your credit cards.

Expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. Generally, you are covered for between $1,000 to $2,000 for all of your jewelry and furs. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for it's appraised value. Coverage includes “accidental disappearance,” meaning coverage if you simply lose that item. And there is no deductible.

Trees, plants and shrubs are also covered under standard homeowners insurance. Generally you are covered for 5% of the insurance on the house—up to about $500 per item. Perils covered are theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. They are not covered for damage by wind or disease.

3. Liability protection

Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins your neighbor’s expensive rug, you are covered. However, if they destroy your rug, you are not covered.

The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world.

Liability limits generally start at about $100,000. However, experts recommend that you purchase at least $300,000 worth of protection. Some people feel more comfortable with even more coverage. You can purchase an umbrella or excess liability policy which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits. Generally, umbrella policies cost between $200 to $350 for $1 million of additional liability protection.

Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without a liability claim being filed against you. You can generally get $1,000 to $5,000 worth of this coverage. It does not, however, pay the medical bills for your family or your pet.

4. Additional living expenses

This pays the additional costs of living away from home if you can't live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt. Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20% of the insurance on your house. You can increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time.

If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

For More Information Visit: Insurance Information Institute

Preparing an Effective Evacuation Plan

In the event of a sudden emergency such as a hurricane, you may have just minutes to gather your family and important papers, and get out of your house, possibly for good. Are you prepared? Where would you go? What would you take with you?

With preparation and practice, you stand the best chance of getting out with what you and your family need, and ending up in the right place.

Planning ahead is crucial; this five-step plan can help get you and your family on the road to safety.

1. Arrange Your Evacuation Ahead of Time

• Identify where you can go in the event of an evacuation. Try to have more than one option: the home of a friend or family member in another town, a hotel or a shelter. Keep the phone numbers and addresses of these locations handy.
• Map out your primary route and a backup route in case roads are blocked or impassable. Make sure you have a map of the area available.
• In case your family members are separated before or during the evacuation, identify a specific place to meet and ask an out-of-town friend or family member to act as a contact person.
• Listen to NOAA Weather Radio or local radio or TV stations for evacuation instructions. If advised to evacuate, do so immediately.

2. Create a Home Inventory

A home inventory will help ensure that you have purchased enough insurance to replace your personal possessions. It can also speed the claims process and substantiate losses for income tax purposes. A detailed home inventory is also helpful should you need to apply for disaster aid.

To make creating a home inventory easier, the I.I.I. provides free Web-based software at KnowYourStuff.org. Know Your Stuff allows you to organize easily and list your possessions, as well as add digital photographs of your valuables and upload scanned receipts. The program provides free, secure storage of your inventory on Amazon Web Services. Storing your inventory online gives you the ability to access it from any computer in the event your own computer is damaged or destroyed.

3. Plan What to Take

• Medicines, prescriptions and first aid kit
• Bottled water
• Clothing and bedding (sleeping bags, pillows)
• Flashlight, battery-powered radio and extra batteries
• Special items for infants or elderly or disabled family members
• Computer hard drive or laptop
• Photographs
• Pet food and other items for pets (litter boxes, leashes)

4. Gather Important Documents

Keep important documents in a safe place that you can access easily. In the event of an evacuation take the following documents with you:

• Insurance policies
• Prescriptions
• Birth and marriage certificates
• Passports
• Drivers license or personal identification
• Social Security cards
• Recent tax returns
• Employment information
• Wills, deeds and recent tax returns
• Stocks, bonds and other negotiable certificates
• Bank, savings and retirement account numbers
• Home inventory

5. Take the Ten-Minute Challenge

To find out if you are ready, do a real-time test. Give yourself just 10 minutes to get your family and belongings into the car and on the road to safety. By planning ahead and practicing, you should be able to gather your family members and pets, along with the most important items they will need, calmly and efficiently, with a minimum of stress and confusion.

The Following Video Provides Additional Tips

For More Information Visit: Insurance Information Institute

What is Covered By a Basic Auto Policy?

Your auto policy may include six coverages. Each coverage is priced separately.

1. Bodily Injury Liability

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

2. Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

3. Property Damage Liability

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.

5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.

6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

For More Information Visit: Insurance Information Institute

Air Bag Safety

Air bags save thousands of lives each year, according to The National Highway Traffic Safety Administration (NHTSA). In frontal crashes, air bags reduce deaths among drivers by about 30 percent and among passengers by 27 percent.

Air bags, however, can be dangerous. If small children sit unbelted in the front seat, they can be catapulted into the path of a deploying air bag, which inflates with great force. This risk also applies to small adults—who must sit close to the steering wheel in order to reach the pedals—pregnant women and the elderly. Infants in rear-facing safety seats on the passenger side can be severely injured because their heads are in the direct path of an inflating air bag. If your airbag is stolen or it deploys, you must get a new one, but you will be reimbursed under the comprehensive portion of your auto insurance policy.

Preventing air bag injuries

Drivers should have all children sit in the backseat wearing a safety belt. Infants should be placed in rear-facing car seats and put in the backseat. Small adults should move the seat back so that their breastbone is at least 10 inches from the air bag cover.

1. If this is not possible, air bag switches can be installed so that the vehicle owner has the option of turning the bag off or on, depending on the situation. In January 1998, NHTSA allowed auto dealers and repair shops to begin installing air bag cut-off switches. Before the switch can be installed, vehicle owners must complete a four-step process:
   Obtain an information brochure and request form from NHTSA, dealerships or repair shops
   Return the form to NHTSA
2. Receive authorization from NHTSA after it reviews the case
3. Take the vehicle to the service shop along with the authorization from NHTSA which certifies that the owner has read the brochure and met one of the four eligibility classifications:

• rear-facing infant seat can be in the front (necessary if the vehicle has no back-seat)
• driver's seat cannot be adjusted to keep more than 10 inches between the driver and the steering wheel
• putting a child 12 or under in the front seat can not be avoided
• having a medical condition that puts them at risk of injury when an air bag deploys.

For More Information Visit: Insurance Information Institute

What are the Principal Types of Life Insurance?

There are two major types of life insurance—term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life.

Life insurance products for groups are different from life insurance sold to individuals. The information below focuses on life insurance sold to individuals.

Term

Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.

There are two basic types of term life insurance policies—level term and decreasing term.

• Level term means that the death benefit stays the same throughout the duration of the policy.
• Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.

In 2003, virtually all (97 percent) of the term life insurance bought was level term.

For more on the different types of term life insurance, click here.

Whole Life/Permanent

Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 100! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.

In the case of traditional whole life, both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company could charge a premium that increases each year, but that would make it very hard for most people to afford life insurance at advanced ages. So the company keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.

By law, when these “overpayments” reach a certain amount, they must be available to the policyholder as a cash value if he or she decides not to continue with the original plan. The cash value is an alternative, not an additional, benefit under the policy.

In the 1970s and 1980s, life insurance companies introduced two variations on the traditional whole life product—universal life insurance and variable universal life insurance.

For more on the different types of whole life/permanent insurance, click here or visit the Insurance Information Institute.

How To Take a Home Inventory and Why?

Would you be able to remember all the possessions you’ve accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For clothing, count the items you own by category -- pants, coats, shoes, for example –- making notes about those that are especially valuable. For major appliance and electronic equipment, record their serial numbers usually found on the back or bottom.

• Don't be put off!
  If you are just setting up a household, starting an inventory list can be relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can be daunting. Still, it’s better to have an incomplete inventory than nothing at all. Start with recent purchases and then try to remember what you can about older possessions.
• Big ticket items
  Valuable items like jewelry, art work and collectibles may have increased in value since you received them. Check with your agent to make sure that you have adequate insurance for these items. They may need to be insured separately.
• Take a picture
  Besides the list, you can take pictures of rooms and important individual items. On the back of the photos, note what is shown and where you bought it or the make. Don’t forget things that are in closets or drawers.
• Videotape it
  Walk through your house or apartment videotaping and describing the contents. Or do the same thing using a tape recorder.
• Use a personal computer
  Use your PC to make your inventory list. Personal finance software packages often include a homeowners room-by-room inventory program.
• Storing the list, photos and tapes
  Regardless of how you do it (written list, floppy disk, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you’ll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.
  

For FREE Home Inventory Software Visit Know Your Stuff

For More Information Visit: Insurance Information Institute

Shopping for a Safe Car

If you’re like most people shopping for a new car, safety ranks high among things you're looking for. Every new car must meet certain federal safety standards, but that doesn’t mean that all cars are equally safe. There are still important safety differences, and some vehicles are safer than others. Many automakers offer safety features beyond the required federal minimums. The following safety features should be considered when purchasing a car:

1. Crash-Worthiness
   These features reduce the risk of death or serious injury when a crash occurs. You can get a rating of crash-worthiness from the Insurance Institute for Highway Safety’s Web site.
2. Vehicle structural design
   A good structural design has a strong occupant compartment, known as the safety cage, as well as front and rear ends designed to buckle and bend in a crash to absorb the force of the crash. These crush zones should keep damage away from the safety cage because once the cage starts to collapse, the likelihood of injury increases rapidly.
3. Vehicle size and weight
   The laws of physics dictate that larger and heavier cars are safer than lighter and smaller ones. Small cars have twice as many occupant deaths each year as large cars. In crashes involving smaller and larger vehicles, heavier vehicles drive lighter ones backwards, decreasing the forces inside the heavier car and increasing them in the lighter car.
4. Restraint systems
   Belts, airbags and head restraints all work together with a vehicle’s structure to protect people in serious crashes. Lap/shoulder belts hold you in place, reducing the chance you’ll slam into something hard or get ejected from the crashing vehicle. If you aren’t belted, you’ll continue moving forward until something suddenly stops you—often a hard interior surface that will cause injuries.
   
   
   
   • Shoulder belts are on inertia reels that allow upper body movement during normal driving, but lock during hard braking or in a crash. Belt webbing is stored on the reel, and during a frontal crash any slack in the webbing can allow some forward movement of your upper body. Then you could strike the steering wheel, dashboard or windshield. This problem is addressed in some cars with belt crash tensioners that activate early in a collision to reel in belt slack and prevent some of the forward movement.
   • Airbags and lap/shoulder belts together are very effective. However in some circumstances, a deploying airbag can cause serious injuries and even death. The greatest risk of injury occurs when you are on top of, or very close to an airbag when it starts to inflate. Choose a car that allows you to reach the gas and brake pedals comfortably without sitting too close to the steering wheel. Some cars offer telescoping steering column adjustments that may help.
   • Side airbags are designed principally to protect your chest. They may also keep your head from hitting interior or intruding structures.
   • Head restraints are required in the front seats of all new passenger cars to keep your head from being snapped back, injuring your neck in a rear-end crash. But there are big differences among head restraints. Some are adjustable, and others are fixed. They also vary in height and how far they are set back from the head. To prevent neck injury, a head restraint has to be directly behind and close to the back of your head. Look for cars that have this type of restraint. If the restraints are adjustable, make sure they can be locked into place. Some don’t lock, so they can get pushed down in a crash.
5. Anti-lock brakes
   When you brake hard with conventional brakes, the wheels may lock and cause skidding and a lack of control. Anti-lock brakes pump brakes automatically many times a second to prevent lockup and allow you to keep control of the car. If you were trained to brake gently on slippery roads or pump your brakes to avoid a skid, you may have to unlearn these habits and use hard, continuous pressure to activate your antilock brakes. Anti-lock brakes may help you keep steering control, but they won’t necessarily help you stop more quickly.
6. Daytime running lights
   Daytime running lights are activated by the ignition switch. They are typically high-beam headlights at reduced intensity or low-beam lights at full or reduced power. By increasing the contrast between a vehicle and its backgrounds and making the vehicles more visible to oncoming drivers, these lights can prevent daytime accidents.
7. On the road experience
   Other design characteristics can influence injury risk on the road. Some small utility vehicles and pickups are prone to rolling over. "High performance" cars typically have higher-than-average death rates because drivers are tempted to use excessive speed. Combining a young driver and a high-performance car can be particularly dangerous.

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