Does My Homeowners Insurance Cover Flooding?

Standard homeowners and renters insurance does not cover flood damage. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program - NFIP (888-379-9531) and from a few private insurers.

The NFIP provides coverage for up to $250,000 for the structure of the home and $100,000 for personal possessions. The NFIP policy providesreplacement cost coverage for the structure of your home, but onlyactual cash value coverage for your possessions. Replacement cost coverage pays to rebuild your home as it was before the damage. Actual cash value is replacement cost coverage minus depreciation so that the older your possessions are, the less you will get if they are damaged. There may also be limits on coverage for furniture and other belongings stored in your basement.

Flood insurance is available for renters as well as homeowners. You will need flood insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Consider buying a flood insurance policy if your house could be flooded by melting snow, an overflowing creek or pond or water running down a steep hill. Don’t wait for a flood season warning on the evening news to buy a policy—there is a 30-day waiting period before the coverage takes effect.

Excess flood insurance is also available from some private insurers for those who need additional insurance protection over and above the basic policy or whose community does not participate in the NFIP. Depending on the amount of coverage purchased, an excess flood insurance policy will cover damage above the limits of the federal program on the same basis as the federal program—replacement cost for the structure and actual cash value for the contents.

Excess flood insurance is available in all parts of the country—in high risk flood zones along the coast and close to major rivers as well as in areas of lower risk—wherever the federal program is available. It can be purchased from specialized companies through independent insurance agents, or from regular homeowners insurance companies that have arrangements with a specialized insurer to provide coverage to their policyholders.

To find out whether private primary flood insurance is available in your area, contact your insurance agent.


For more information please visit: Insurance Information Institute

Dangers of Winter Driving

Fresh white snow, woolen scarves, mittens, Frosty the Snowman, and warm cocoa all make winter wonderful. But wintertime on the roads isn't so nice for drivers.

Why winter driving can be dangerous

The U.S. DOT Federal Highway Administration reports that 24 percent (about 1.5 million) of all car accidents are weather-related. When you factor in snow, sleet, black ice, and frigid temperatures, it's easy to understand why winter is considered the most dangerous season.

In many states, winter weather brings heavy snow, freezing rain, flooding, and bitterly cold temperatures that can all wreak havoc on road conditions.

The 2 main culprits: ice and black ice

Ice forms when the road is wet and its surface temperature drops below freezing. Because the ground warms more slowly than the air, ice may still be on the roads even if it's not freezing cold outside.

This surface ice can stop your tires from getting a good grip, making steering and stopping difficult. And while icy roads are extremely dangerous, black ice is even more so. Black ice is a thin layer of ice that forms on the roadway, but instead of looking icy, the road appears wet. It usually has a matte appearance rather than the glossy one typical of icy roads. Black ice tends to form at night or in the wee hours of the morning, and drivers tend not to notice it until they've lost control.

Winter driving safety tips

• Winterize your car. Make sure your car is ready for winter and the weather it brings.
• Adjust your speed. If the weather's anything but clear and 50 degrees, drive a little slower than normal.
• Increase stopping distance. When driving on slick roads, you need at least 3 times more distance to stop. Always make sure you have enough space between you and the car in front.
• Give yourself extra time. Trips can take longer during winter weather than other times of the year, so give yourself some extra time to get to your destination.
• Watch out for hazardous sections of roadways. Bridges, overpasses, and shaded spots often form ice before other parts of the road.
• Bring your cell phone with you. Keep your phone nearby in case you get in an accident. (And if you're an Esurance customer, you can use our mobile app to submit a claim on the spot.)
• Keep your windshield and windows clear. Make sure there's a snow brush or scraper in your car at all times.
• Don't cruise. Using cruise control when driving on a slippery, snowy surface can make it hard to react in time.
• Check your tire tread and pressure. Good tire tread and properly inflated tires are essential to staying in control on slippery roads.
• Fill up on gas. A fuller gas tank prevents your car's gas-line from freezing.
• Don't slam on your brakes. In winter weather, sudden braking often leads to skids.
• Check the exhaust pipe. Double-check that your exhaust is clear of snow or debris before getting on the road. A blocked pipe may cause carbon monoxide gas to leak into your car while the engine is running.
• Drive with your lights on. Keep your lights on low when driving in the snow.
• Don't pass snowplows. A nice explanation from the Wisconsin DOT: "Snowplows have wing plow blades that can extend anywhere between 2 and 10 feet beyond the width of the truck. This wing plow blade is often not seen because of the snow cloud being kicked up by the snowplow. These wing plows can often weigh as much as a compact car."
• Don't spin your wheels. If you get stuck in the snow, spinning your tires too fast can overheat them, which can lead to a minor explosion. Gently rock your car back and forth if you find yourself stuck.
• Watch for salt. At really low temperatures, salt can make pavement freeze over faster.

Winterize your car

Follow these tips to get your car ready for wintry road conditions:

• Make sure the brakes, defroster, heater, exhaust system, and lights all work properly.
• Replace your wiper blades.
• Inspect your tires. Since fall weather often changes from warm to cold, your tires can expand or contract, which leads to loss in air pressure. Always make sure your tires are properly inflated and have plenty of tread.
• Carry snow chains or consider snow tires. Snow chains can provide more traction when driving through snow and ice.
• Get an oil change and make sure the oil can handle cold weather conditions.
• Test your battery. If your battery is more than 3 years old, it might be time to get a new one.
• Make sure your antifreeze is a 50:50 mix: half antifreeze, half water. This mixture prevents the liquid from freezing in low temperatures. You can check your mix with an antifreeze tester, which you can find at most auto parts stores.
• Stock up on emergency supplies and keep them in your car. Good emergency kits include: a flashlight, first-aid kit, flares, window washer fluid, tool kit, blanket or sleeping bag, gloves, paper towels, de-icer, drinking water, extra food, and sand, salt, or kitty litter (and maybe a good book in case you have to wait for help).

Gearing up for the cold

Winter is a season to be reckoned with. By practicing driving precautions in winter weather and making sure your car's winterized, you can reduce your exposure to driving dangers and the risk of a weather-related car accident.

For More information please visit: Esurance

What Type of Insurance Do I Need If I’m Renting Out My Home?

There are many reasons why you might want to rent out your home on either a short- or long-term basis. Whether you own a second home that you plan to lease to a tenant, or want to rent out a room in your house periodically though an online service such as the increasingly popular Airbnb, your first step should be to call your insurance agent or company representative. Depending on the rental scenario, your standard homeowners policy may not cover losses incurred while your home is rented out, and you may require a more specialized insurance policy.

 

Short-Term Rentals/Primary Residence

If you are planning to rent out all or part of your primary residence for a short period of time, for instance, a week or several weekends, there will likely be two insurance scenarios.

1. Some insurance companies may allow a homeowners policyholder (assuming they have notified the company) a short-term rental. Other companies will require an endorsement to the existing homeowners or renters insurance policy in order to provide insurance coverage.
2. If you plan to rent out your primary residence for short periods, but on a regular basis, to various ‘guests’, this would constitute a business. Standard homeowners insurance policies do not provide any coverage for business activities conducted in the home. To be properly covered you would need to purchase a business policy—specifically either a hotel or a bed and breakfast policy.

Long-Term Rentals/Second Home

If you are planning to rent out your home for a longer period of time, such as six months or a year, to one person, couple or a family, you will likely need a landlord or rental dwelling policy. Landlord policies generally cost about 25 percent more than a standard homeowners policy because landlords need more protection than a typical homeowner. If you are renting out a vacation home or investment property, this would also require a landlord or rental dwelling policy.  

 

Landlord policies provide property insurance coverage for any physical damage to the structure of the home caused by fire, lightning, wind, hail, ice, snow or other covered perils. It also offers coverage for any personal property you may leave on-site for maintenance or tenant use, like appliances, lawnmowers and snow blowers.

 

The policy also includes liability coverage; if a tenant or one of their guests gets hurt on the property, it would cover legal fees, due to injury claims, and medical expenses.

 

Most landlord policies provide coverage for loss of rental income in the event you are not able to rent out the property while it is being repaired or rebuilt due to damage from a covered loss. This coverage is generally provided for a specific period of time.

 

Renters Insurance

As the landlord, your coverage is only on the structure itself and your financial interest in it. Your tenant’s personal possessions are not covered under your policy. In order to avoid disputes in the event of damage to the renter’s belongings, many landlords require a tenant to buy renters insurance before signing a lease.

For More Information Please Visit: Insurance Information Institute 

Identity Theft Insurance

Identity theft is the act of taking someone’s personal information and using it to impersonate a victim, steal from bank accounts, establish phony insurance policies, open unauthorized credit cards or obtain unauthorized bank loans. In some more elaborate schemes, criminals use the stolen personal information to get a job, rent a home or take out a mortgage in the victim’s name.

 

Close to half of identity theft cases are the result of a lost or stolen wallet, checkbook, credit card or other physical document. But as online shopping becomes increasing popular, it can also pose an identity risk. 

 

Victims of identity theft are often left with lower credit scores and spend months or even years getting credit records corrected. They frequently have difficulty getting credit, obtaining loans and even finding employment. Victims of identity theft fraud often travel a long and frustrating road to recovery; depending on the severity of the identity theft fraud damage, the recovery process can take anywhere from a few weeks to several years.

 

Most homeowners and renters policies provide coverage for theft of money or credit cards; however, the amount of coverage is limited (usually $200 in cash and $50 on credit cards). Once you have reported the loss or theft of your credit card to the issuing company, you are responsible for only $50 of unauthorized use.

 

Some companies now include coverage for identity theft as part of their homeowners insurance policy. Check your policy to find out. Others sell it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy which can run about $25-$50 annually. Identity theft insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports. It generally covers expenses such as phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). Some companies also offer restoration or resolution services that will guide you through the process of recovering your identity.

 

Use of stolen credit card numbers is among the most common forms of identity theft, but some schemes use electronic means, including online scams like ‘phishing’, in which thieves use email inquiries purporting to be from financial or other online organizations, to obtain sensitive account information. Others might use more old-fashioned methods, such as ‘dumpster diving’—rooting around in people’s garbage to collect financial information.

 

Many credit card companies are now using radio-frequency identification (RFID) chips in their credit cards instead of magnetic stripes. The advantage is quicker, more efficient transactions, especially those carried out at traditionally cash only retail outlets, such as fast-food restaurants or convenience stores. However radio frequency identification may make it possible, in some cases, for identity thieves to use a simple electronic device to capture the information. The scariest part is that it can happen right in your presence, without you even knowing it.

TIPS FOR AVOIDING IDENTITY THEFT

• Keep the amount of personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security card or passport unless absolutely necessary.
• Guard your credit card when making purchases. Shield your hand when using ATM machines or making long distance phone calls with phone cards. Don’t fall prey to “shoulder surfers” who may be nearby.
• Always take credit card or ATM receipts. Don’t throw them into public trash containers, leave them on the counter or put them in your shopping bag where they can easily fall out or get stolen.
• Do not give out personal information. Whether on the phone, through the mail or over the Internet, don’t give out any personal information unless you have initiated the contact or are sure you know who you are dealing with and that they have a secure line.

• Proceed with caution when shopping online. Use only authenticated websites to conduct business online. Before submitting personal or financial information through a website, check for the locked padlock image on your browser’s status bar or look for "https://" (rather than http://) in your browser window. If you have any concerns about the authenticity of a Web page, contact the owner of the site to confirm the URL.
• Be aware of phishing and pharming scams. In these scams, criminals use fake emails and websites to impersonate legitimate organizations. Exercise caution when opening emails and instant messages from unknown sources and never give out personal, financial or password related information via email.

• Make sure you have firewall, anti-spyware and anti-virus programs installed on your computer. These programs should always be up to date.

• Monitor your accounts. Don’t rely on your credit card company or bank to alert you of suspicious activity. Carefully monitor your bank and credit card statements to make sure all transactions are accurate. If you suspect a problem, contact your credit card company or bank immediately.
• Order a copy of your credit report from each of the three major credit bureaus. A new law that took effect December 1, 2004, entitles you to one free credit report per year. Your credit report contains information on where you work and live, the credit accounts that have been opened in your name, how you pay your bills and whether you've been sued, arrested or filed for bankruptcy. Make sure it's accurate and includes only those activities you've authorized.
• Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, any part of your Social Security number or phone number, or any series of consecutive numbers. If you suspect a problem with your credit card, change your password.
• Shred any documents containing personal information such as credit card numbers, bank statements, charge receipts or credit card applications, before disposing of them.

 

In order to make it more difficult for identity thieves to open accounts in your name, you can also contact the fraud department of any of the three credit reporting agencies to place a fraud alert on your credit report—by law, the agency you contact is required to contact the other two agencies. The fraud alert tells creditors to contact you before opening any new accounts or making any changes to your existing accounts. The three major credit bureaus are Equifax, TransUnion and Experian.

For More Information Please Visit: Insurance Information Institute

Motorcycle Insurance

Choosing the right insurance policy is much like choosing the right motorcycle. You want it to fit your needs and lifestyle, but at the same time be within your budget. Although most states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. Always ask your insurance agent or company representative which laws apply in your state.

In order to find out what coverage is best for you, it is important to understand all the options available.
    

LIABILITY COVERAGE

Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident. It doesn't cover you or your motorcycle. Find out if your coverage includes Guest Passenger Liability, which provides protection in the event that a passenger is injured on the motorcycle. Whether or not this is included depends on the laws of your state and the company issuing the policy.
    

COLLISION COVERAGE

Collision insurance covers damage to your motorcycle if you are involved in an accident. Your insurance company pays for damages, minus your deductible, caused when you collide with another vehicle or object. Collision insurance usually covers the book value of the motorcycle before the loss occurred.
    

COMPREHENSIVE COVERAGE

Comprehensive coverage pays for damages caused by an event other than a collision, such as fire, theft or vandalism. However, just like collision coverage, your insurance company will pay for damages, minus your deductible, and will cover only the book value of the motorcycle.

Keep in mind most comprehensive and collision coverages will only cover the factory standard parts on your motorcycle. If you decide to add on any optional accessories such as chrome parts, a custom paint job, trailers or sidecars, you should look into obtaining additional or optional equipment coverage.
    

UNINSURED/UNDERINSURED MOTORIST COVERAGE

Uninsured/underinsured Motorist Coverage covers damages to you and your property caused by another driver who either doesn't have insurance (uninsured) or doesn't have adequate insurance (underinsured) to cover your damages.

This coverage typically pays for medical treatment, lost wages and other damages. If your uninsured/underinsured motorist coverage includes property damage, then your motorcycle would also be covered under the same circumstances. Check with your insurance professional to see if property damage is included or needs to be purchased separately.
    

TIPS FOR THE COST-CONSCIOUS RIDER

Many factors can play a role in determining what your insurance costs will be such as your age, your driving record, where you live and the type of motorcycle you own, or being a graduate of a rider-training course.

• Many companies offer discounts from 10 to 15 percent on motorcycle insurance for graduates of training courses, such as the Motorcycle Safety Foundation (MSF) rider course. Riders under the age of 25, usually considered a higher risk, may see some savings by taking this course. It’s also a good idea for cyclists who have already had accidents.
• Maintaining a good driving record with no violations will also help reduce your premiums.
• In many northern states, riders may save money by buying a "lay-up" policy. With a lay-up policy, all coverage except comprehensive is suspended during winter months.
• Find out what discounts your insurance representative offers. Multibike discounts for those insuring more than one bike, organization discounts, if you’re a member of a motorcycle association, and mature rider discounts for experienced riders, are just a few possibilities. Discounts can range anywhere from 10 percent to 20 percent, depending on the company and your state. Availability and qualifications for discounts vary from company to company and state to state.
• Keep in mind that the type, style (such as a sports bike vs. a cruiser) and age of the motorcycle, as well as the number of miles you drive a year and where you store your bike may also affect how much you pay for your premium.

Choose the agent or company that's right for you. If you already have auto insurance, you can contact the same insurer. Otherwise, ask friends, relatives and co-workers where they bought their auto or motorcycle insurance. Your local motorcycle shop may have a company they refer customers to. Or you can check local motorcycle magazines and newspapers for insurance professionals advertising motorcycle insurance.

For More Information Please Visit: Insurance Information Institute

Distracted Driving

Driver distractions or inattentive driving play a part in one out of every four motor vehicle crashes. That is more than 1.5 million collisions a year and 4,300 crashes daily, according to the National Highway Traffic Safety Administration. Text messaging, changing radio stations, even turning around to talk to passengers can prove deadly.

While cellphones and text messaging cause the most accidents, drivers are also distracted by using PDAs, laptops and navigational aids while driving. Other drivers create a potential hazard because they eat, drink, read, write or groom themselves when their full attention should be on the road in front of them. 

In January 2010, the National Safety Council (NSC) released a report estimating that at least 1.6 million crashes (28 percent of all crashes) are caused each year in the U.S. by drivers talking on cellphones (1.4 million crashes) and texting (200,000 crashes). The estimate is based on data of driver cellphone use from the National Highway Traffic Safety Administration and research that quantifies the risks using cellphones and texting while driving.

A July 2009 Virginia Tech Transportation Institute study found that texting while driving is far more dangerous than previously estimated. The collision risk became 23 times higher when motorists were texting while driving.

In addition, as of June 2010 eight states (California, Connecticut, Maryland, New Jersey, New York, Oregon, Utah and Washington State) plus the District of Columbia, ban the use of hand-held cellphones while driving.

EMPLOYERS MAY BE HELD LIABLE

Employers are now concerned that they may be held liable for accidents caused by their employees while driving and conducting work-related conversations on cellphones, according to the I.I.I. Under the doctrine of vicarious responsibility, employers may be held legally accountable for the negligent acts of employees committed in the course of employment. Employers may also be found negligent if they fail to put in place a policy for the safe use of cellphones.

The I.I.I. recommends the following safety tips when driving:

• Pull Off the Road Don’t drive while calling or texting; pull off the road to a safe location.
• Use Speed Dialing
  Program frequently called numbers and your local emergency number into the speed dial feature of your phone for easy, one-touch dialing. when available, use auto answer or voice-activated dialing. 
• Never Dial While Driving
  If you must dial manually, do so only when stopped. Pull off the road, or better yet, have a passenger dial for you. 
• Take a Message
  Let your voice mail pick up your calls in tricky driving situations. It's easy—and safer—to retrieve your messages later on.
•  Know When to Stop Talking
  Keep conversations on the phone and in the car brief so you can concentrate on your driving. if a long discussion is required, if the topic is stressful or emotional, or if driving becomes hazardous, end your conversation and continue it once you are off the road.
•  Keep the Phone in Its Holder
  Make sure your phone is securely in its holder when you are not using it so it does not pop out and distract you when you are driving.
• Don't Take Notes While Driving
  If you need to write something down, use a tape recorder or pull off the road.
• Don't Eat or Drink While DrivingSpills, both hot and cold, can easily cause an accident. If you have to stop short, you could also be severely burned.
•  Groom Yourself At Home
  Shaving, putting on makeup, combing your hair or other forms of preening are distractions and should be done at home, not while driving. 

While everyone should follow these safety rules, it is particularly important to review them carefully with teens when they are first learning to drive. “Teens and Distracted Driving”, a Pew Internet & American Life Project 2009 survey of 800 young people, found that 26 percent of American teens ages 16 to 17 have texted while driving and 43 percent have talked on a cellphone while driving. Forty-eight percent of teens ages 12 to 17 say they have been in a car when the driver was texting and 40 percent say they have been in a car when the driver used a cellphone in a way that put themselves or others in danger.

For More Information Please Visit: Insurance Information Institute 

Keep Cool by the Pool—With the Right Insurance and Simple Safety Measures

This week (July 22-29, 2012) swimming pools around the country will be holding pool safety events as part of the national Pool Safely campaign. There is no better time to consider the insurance and safety implications of owning a pool, according to the Insurance Information Institute (I.I.I).

 

“You can be sued if someone drowns or is injured in your pool even if they did not have your permission to be there,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “So it’s important to have the proper locks and safety equipment and to have appropriate liability insurance.”

 

If you own a swimming pool, or are in the market for one, the I.I.I. recommends taking the following steps:

 

Call your insurance agent or company representative
Let your insurance company know about the pool as it will increase your liability risk. Pools are considered an “attractive nuisance” and you may need additional liability coverage. Consider increasing the $100,000 minimum in your homeowners policy to at least $300,000 or $500,000 if you are a pool owner. You can also buy an umbrella liability policy, which, for an additional premium of $200 to $300 a year, gives you $1 million of liability protection over and above what you have on your home.

If the pool itself is expensive, you will need enough insurance protection to replace it in the event it is destroyed by a storm or other disaster. And don’t forget to include any deck furniture around the pool when calculating the value of your belongings.

Contact your town or municipality
Each town will have its own definition of what constitutes a ‘pool’, often based on its size and the depth of the water. If your pool meets the definition, you must comply with local safety standards and building and electrical codes. This may include installing a fence of a certain size, locks, decks and pool safety equipment.

“Pools offer a great way to keep cool in this heat and humidity, but they can also be dangerous,” cautioned Salvatore. “A child can drown in a few inches of water in less than 30 seconds.”

To help spread the word about the importance of pool safety, the I.I.I. is partnering with the U.S. Consumer Product Safety Commission (CPSC) for the third year of its Pool Safely public education campaign (also on Twitter: @poolsafely).

Drowning is the leading cause of unintentional deaths in the U.S. for children aged five and under, according to the CPSC. “Pools offer a great way to keep cool in this heat and humidity, but they can also be dangerous,” said Salvatore. “A child can drown in a few inches of water in less than 30 seconds.”

 

Keep your children and other pool users safe by taking these precautions:

1. Create several ‘layers of protection’. In other words, set up as many barriers as possible to the pool area, in addition to the fences that are often required by towns and municipalities.
2. Never leave toys or floats in the pool when it is not in use—they can be a deadly temptation for toddlers who might fall into the pool when trying to reach them.
3. Check the pool area regularly for glass bottles, toys or other potential accident hazards. Keep CD players, radios and other electrical devices away from pools or nearby wet surfaces.
4. Limit alcohol use around the pool as drinking alcoholic beverages negatively impacts balance, coordination and judgment—and its effects are further heightened by sun exposure and heat.
5. Clearly post emergency numbers on the nearest phone, so they can be located easily in the event of an accident. 

In addition, Pool Safely recommends the following:

 

Watch Children in and Around the Pool

• Never leave a child unattended in a pool or spa and always watch your children closely around all bodies of water.
• Teach children basic water safety tips.
• Keep children away from pool drains, pipes and other openings to avoid entrapments.
• Have a telephone close by when you or your family are using a pool or spa.
• If a child is missing, look for him or her in the pool or spa first.
• Share safety instructions with family, friends and neighbors. 

Learn Water Safety Skills

• Learn how to swim and teach your child how to swim.
• Learn to perform CPR on children and adults, and update those skills regularly.
• Understand the basics of life-saving so that you can assist in a pool emergency. 

Have Proper Pool or Spa Equipment

• Install a four-foot or taller fence around the pool and spa and use self-closing and self-latching gates; ask your neighbors to do the same at their pools.
• Install and use a lockable safety cover on your spa.
• If your house serves as a fourth side of a fence around a pool, install and use a door or pool alarm.
• Maintain pool and spa covers in good working order.
• Ensure any pool and spa you use has drain covers that comply with federal standards, and ask your pool service provider if you do not know.
• Have lifesaving equipment such as life rings, floats or a reaching pole available and easily accessible. 

RELATED LINKS

Articles: I’m installing a pool; what kind of insurance do I need?; Should I buy an umbrella liability policy?

Video: Swimming Pool Safety

Pinterest: Pool Safety Board

 

For More Information Visit: Insurance Information Institute

Lightning Coverage and Safety

Damage caused by lightning, such as fire, is covered by standard homeowners and business insurance policies. Some home and business insurance policies provide coverage for power surges that are the direct result of lightning striking a home or business. There is also coverage for lightning damage under the comprehensive portion of an auto insurance policy.

With the explosion in the number and value of consumer electronics in homes, such as flat screen TVs, home entertainment centers, multiple computers, gaming systems and other expensive devices, it is more important than ever to take precautions.

Preventing Losses

The I.I.I. offers the following tips to protect homes and businesses against power surges and lightning strikes: 

1. Install a lightning protection system. A lightning protection system supplies structural protection by providing a specified path on which lightning can travel. When a building is equipped with a lightning protection system, the destructive power of the lightning strike is directed safely into the ground, leaving the structure and its contents undamaged. The system includes a lightning rod or air terminals at the top of the house that can be disguised to look like a weather vane and wires to carry the current down to grounding rods at the bottom of the house. According to the Institute for Business & Home Safety (IBHS), the lightning protection system needs to be securely anchored to the roof; otherwise it may whip around in a storm and damage the building. So make sure to have a licensed electrician install your lightning rod and protection system.

2. Use surge protectors. Today’s sensitive electronic equipment is particularly vulnerable to lightning. To assure the highest level of protection, UL-listed surge arrestors should be installed on electrical service panels. Installations typically include surge arrestors for the main electric panel, as well as incoming phone, cable, satellite and data lines. Surge arrestors protect against damaging electrical surges that can enter a structure via power transmission lines. By filtering and dissipating the harmful surges, arrestors prevent electrical fires and protect against electrical discharges that can damage a building's electrical system, computers, appliances and other systems. UL-listed transient voltage surge suppressors can also be installed to protect specific pieces of electronic equipment. Keep in mind that power strips offer little protection from electrical power surges.

3. Unplug expensive electronic equipment. As an added precaution, unplug expensive electronic equipment such as TVs, computers and the like if you know a storm is approaching.

Do’s and Don’ts for Lightning Safety

1. When Thunder Roars...GO INDOORS! Take shelter in a home, large building or substantial fully enclosed building, preferably protected with a lightning protection system. Hard topped-vehicles are generally safe shelters, as well.

 

2. Avoid areas where you will be the highest object. If you are caught in an open field with no nearby shelter, and your hair begins to stand on end (an indication that lightning is about to strike) drop down and crouch with hands on knees, rocking up on the balls of your feet. (The idea is to make as little contact with the ground as possible.) Never lie down flat or place your hands on the ground. 

 

3. Certain locations are extremely hazardous during thunderstorms. Avoid lakes, beaches or open water, fishing from a boat or dock, riding on golf carts, farm equipment, motor cycles or bicycles. Take shelter in tunnels, subways, even ditches or caves if necessary—but never under a tree!

 

4. If caught on high ground or in an open area, seek shelter in a low area and stay away from trees. A small grove of bushes or shrubs is preferable to lone trees.

 

5. To avoid side flashes (voltage from a nearby struck object) stay clear of fences or isolated trees. Keep away from telephone poles, power lines, pipelines or other electrically conductive objects. 

 

6. Stay off the telephone! In your home, don’t stand near open windows, doorways or metal piping. Stay away from the TV, plumbing, sinks, tubs, radiators and stoves. Avoid contact with small electric appliances such as radios, toasters and hairdryers.

For more information please visit: Insurance Information Institute 

Renters Insurance Checklist

If you rent a house or apartment, your landlord’s insurance will only cover the costs of repairing the building if there is a fire or other disaster. You need your own coverage, known as renters or tenants insurance in order to financially protect yourself and your belongings.

 

Renters insurance includes three important types of financial protection:

• Coverage for Personal Possessions
• Liability Protection
• Additional Living Expenses 

The following checklist can help you choose the right coverage when you are shopping around for renters insurance or speaking with an insurance agent or company representative.

1. Coverage for Personal Possessions

1. How much insurance should I buy? Make sure you have enough insurance to replace all of your personal possessions in the event of a burglary, fire or other covered disaster.The easiest way to determine the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even linens—is to create a home inventory. This is a detailed list of all of your personal possessions along with their estimated value. An up-to-date home inventory will also make filing an insurance claim faster and easier.
   The Insurance Information Institute offers free Web-based home inventory software, available at www.knowyourstuff.org.
2. Should I get replacement cost or actual cash value coverage?
   An actual cash value policy pays to replace your possessions minus a deduction for depreciation whereas a replacement cost policy will pay the cost of replacing your possessions without accounting for depreciation. The price of replacement cost coverage is about 10 percent more but can be well worth the extra expense as the value of most items tends to depreciate quickly.
3. What disasters are—and are not—covered?
   Renters insurance covers you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and certain types of water damage (such as when the tenant upstairs leaves the water running in the bathtub and floods out your apartment or a burst pipe). Most renters insurance policies, however, do not cover floods. Flood coverage is available from the federal government’s National Flood Insurance Program (888-379-9531, www.floodsmart.gov) and from a few private insurers. You can get this coverage from the same agent or company representative who sold you the renters insurance policy. Earthquakes are not covered either. You can either get a separate policy or have it added as an “endorsement” to your renters policy, depending on where you live.
4. What is my deductible, and how does it work?
   A deductible is an amount of money you pay out-of-pocket before the insurance coverage kicks in. Deductibles are available as a specified dollar amount, typically $500, $1000 or $2000, though higher deductibles are available. The larger the deductible, the lower the premium charged for the same amount of coverage, so if you can afford a deductible of at least $1,000, you may get as much as 25 percent off your premium. Remember though, that you will be responsible for paying the deductible each time you file a claim.
5. What is a “floater” and do I need one?
   If you have expensive jewelry, furs, sports or musical equipment, or collectibles, consider adding a floater to your policy. Most standard renters policies offer only a limited dollar amount for such items; a floater is a separate policy that provides additional insurance for your valuables and covers them if they are accidentally lost. You will need to present receipts and/or appraisals for the items covered by the floater. It is important that expensive items be appraised properly as you will pay a premium based on the appraised value and in the event of a claim, be compensated for this dollar amount. You can ask your insurer to recommend a reputable appraiser. For some items, like laptop computers, a stand-alone policy may also be an option. Check your renters policy first to see whether your laptop is covered and what the deductible is. 

2. Liability Protection

1. Do I have enough liability insurance in the event someone sues me?
   Renters insurance provides liability protection that covers you against lawsuits for bodily injury or property damage done by you, your family members and even your pets. This coverage pays for both the cost of defending you in court and court awards—up to the limit of your policy. Most standard renters insurance policies will generally provide at least $100,000 of liability coverage, but additional amounts are available. Consider whether the amount of liability coverage provided by your policy is sufficient to protect your assets.
   Did you know you also have no-fault medical coverage as part of the liability protection provided by your renters policy? This coverage is only for injuries sustained by others and is not a substitute for your own health insurance. Medical payments coverage allows someone who gets injured on your property to simply submit his or her medical bills directly to your insurance company so the bills can be paid without resorting to a lawsuit. Most policies include about $1,000 to $5,000 worth of this coverage.
2. Do I need an umbrella liability policy?
   If you need a large amount of liability protection, you can purchase a personal umbrella liability policy. An umbrella policy kicks in when you reach the limit on the underlying liability coverage provided by your renters or auto policy. It will also cover you for things such as libel and slander. For about $150 to $300 per year, you can buy a $1 million personal umbrella liability policy. The next million will cost about $75 and $50 for every million after that. Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your renters policy before selling you an umbrella liability policy for $1 million of additional coverage.  

3. Additional Living Expenses

1. If I can’t live in my home after a disaster, will I be covered?  If your home is destroyed by a disaster that your policy covers and you need to live elsewhere, renters insurance provides additional living expenses (ALE). ALE pays for hotel bills, temporary rentals, restaurant meals and other expenses you incur while your home is being repaired or rebuilt. It is important to know out how much coverage you have, and what the limits are. Some companies provide coverage for a set amount of time, while others have a financial cap.

4. Other Coverages

1. I run a business out of my home; do I need supplemental coverage?A typical homeowners or renters policy provides only $2,500 coverage for business equipment which is generally not enough to replace all of the equipment required by even a small home business. You may also need coverage for liability and lost income. Insurance companies differ considerably in the types of business coverages they offer. Some may meet the specific needs of your business, while others may not. So it is wise to shop around for coverage options as well as price.
2. Am I covered if I am traveling or away from home?Most renters polices include what is called off-premises coverage. This means that belongings that are outside of your home are covered against the same disasters listed in your policy. For example, property stolen from your car would be covered. However some companies may limit the amount of off-premises theft to 10 percent of the amount of personal possessions insurance. If you think you need additional off-premises theft coverage—for example if you travel a lot—shop around for a policy that has the insurance protection you need.  

5. Discounts

Insurance companies often offer discounts on renters insurance if you have another policy with them for your car or business. You can also get discounts if you:

• Have a security system
• Use smoke detectors
• Use deadbolt locks
• Have good credit
• Have multiple policies
• Stay with the same insurer
• Are over 55 years old 

Companies offer several types of discounts, but these can vary widely by company and by state, so review your options carefully. Also, some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere

For more information please visit: Insurance Information Institute