Elite Insurance Blog

Make A New Year’s Resolution To Avoid Costly Insurance Mistakes And Save Money On Your Auto And Homeowners Insurance In 2012

2012-01-06T11:03:00.005-05:00

FIVE TIPS TO PREVENT YOU FROM ENDING UP DANGEROUSLY UNDERINSURED

NEW YORK, January 4, 2011 — Reducing expenses is a popular New Year’s resolution for many people. While there are smart ways to save on homeowners and auto insurance, making the wrong choices can result in being dangerously underinsured, according to the Insurance Information Institute (I.I.I.).

“There are simple steps you can take to cut the cost of your home and auto insurance while continuing to be financially protected against a catastrophe,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.

Following are five insurance mistakes that consumers should avoid, along with practical suggestions for better ways to save:

1. Insuring a home for its real estate value instead of for the cost of rebuilding. With the real estate market in a slump and home prices down in many parts of the country, some homeowners may think they can reduce the amount of insurance on their home, too. But insurance is designed to cover the cost of rebuilding, not the sales price of your home. Make sure you have enough coverage to completely rebuild your home and replace all your belongings in the event of a disaster.

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

2. Selecting an insurance company by price alone. Do not just choose a company with competitive prices. It is a good idea to also make sure the company 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 has a reputation for excellent customer service and 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 see whether it is located in a flood zone. If so, consider buying a home in a less risky area. If you already own a home in a flood zone area, look at home mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.

4. Purchasing only the legally required amount of liability for your vehicle. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued—and those costs may be steep. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

A better way to save: Consider dropping collision and/or comprehensive coverage on older vehicles worth less than $1,000.

5. Neglecting to buy renters insurance. A renters insurance policy covers your possessions and additional living expenses if you have to move out of your home 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.

National Flood Insurance Problem – FloodSmart.gov

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; www.iii.org

Home Buyers Insurance Checklist

2012-01-05T12:29:00.003-05:00

Shopping for your dream house? There are many considerations when looking at real estate, such as property taxes, school district, available recreational opportunities in the neighborhood, to name a few.

But an important and often overlooked consideration is the insurance implications of your purchase. You will be paying insurance on your home for as long as you own it, so you should factor the cost of insurance into the home-buying process. You don’t want to find out that your dream home is more expensive to insure than you thought—after you own it!

BEFORE YOU START LOOKING FOR A HOME

Thinking through all the costs associated with buying a home will make the process run more smoothly, and it may also save you money. It is important to:

Check Your Credit Rating
A good credit history helps you in many ways. Good credit makes it easier to get a mortgage at a competitive rate, and it may also qualify you for a good credit discount on your insurance. Make sure you know your credit rating before you apply for a mortgage. Get a copy of one or all of your credit reports. Make sure they are accurate and report any mistakes immediately. If your credit is not as good as it could be take steps now to improve it. The I.I.I. has information on credit and insurance to help you with this process

Protect Yourself with a Renters Insurance Policy
If you are currently renting a house or apartment, protect yourself financially with a renters insurance policy. This provides insurance protection in the event a fire, hurricane or other insured disaster damages or destroys your personal possessions. It also covers the cost of additional living expenses if something happens to make your rental home or apartment unlivable. Additionally, renters insurance gives you liability protection if someone is injured in your home and decides to sue you. Disasters happen, and it would be unfortunate to have to use the down payment you saved to buy your new home to pay for losses that could have been covered by renters insurance. Furthermore, having a renters insurance policy provides a useful insurance history to your prospective homeowners insurer when you go to buy your first home.

WHILE HOUSE HUNTING

As you search for your new home, remember that the physical characteristics of the house—its size, location, construction and overall condition—can affect the cost, choice and availability of home insurance. Following are some factors to consider when shopping for a home:

Quality and Location of the Fire Department
Houses that are located near highly-rated, permanently staffed fire departments usually cost less to insure. This also holds true for homes that have a hydrant nearby. An important underwriting criterion for insurance companies is a community’s investment in fire protection, which includes trained firefighters, proper equipment and adequate supplies of water.

Proximity to the Coastline
Houses located on or near the coast will generally cost more to insure than those further inland. There will also likely be a hurricane or windstorm deductible. This is a percentage deductible based on the cost to rebuilding a home, rather than a flat dollar amount. With a homeowners policy that has a $500 standard deductible, for example, the policyholder pays the first $500 of the claim before insurance kicks in. However, as percentage deductibles are based on the home’s insured value, if a house is insured for $100,000 and has a 2 percent deductible, the first $2,000 of a claim is paid out of the policyholder’s pocket.

There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes; and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary by state and range from 1 percent to 5 percent of a home’s insured value. These come into effect if certain triggers occur—a deductible triggering event can be, for instance, an official National Weather Service declaration that a storm is generating hurricane-strength winds (i.e., 74 miles per hour, or more) in your community.

In coastal areas with high wind risk, some homeowners may select higher hurricane deductibles to lower their insurance premiums, but that means they pay more if their home is damaged. In some coastal communities, private homeowners insurance coverage may not be readily available. Instead, you may need to purchase insurance through a state-run insurance program, which can provide less coverage, and in some cases be more costly, than private insurance.

Age of the Home
A stately, older home can be quite beautiful, but ornate features such as plaster walls, ceiling molding and wooden floors may be costly to replace and raise the cost of insurance. Plumbing and electrical systems can become unsafe with age and lack of maintenance. So, older homes may cost more to insure. If you are considering buying an older home find out how much it will cost to update these features and factor it into the cost of ownership.

Condition of the Roof
Ask about the condition of the roof. A new roof matters to insurers and keeps you and your family safer. Depending on the type of roof and whether or not you use fire and/or hail resistant materials, you may even qualify for a discount. Talk to your insurer about qualifying discounts.

Is the Home Well-Built and Up to Code?
Find out whether the house has been updated to comply with current building codes. Homes built by careful craftsmen and those built to meet modern engineering-based building codes are likely to better withstand natural disasters. Consider hiring a licensed home inspector who is knowledgeable about the latest building codes to inspect the property before you sign a mortgage.

Risk of Flooding
Damage from flooding is NOT covered by standard home insurance policies. If you are buying a home in an area at risk from flooding, you will need to purchase separate insurance. Insurance for flooding is available from the federal government’s National Flood Insurance Program (NFIP), which is serviced by private carriers, and from a few specialty insurers. People often underestimate the risk of flooding. Ninety percent of all natural disasters in the U.S. involve flooding, according to the NFIP. More important is that 25 to 30 percent of all paid losses for flooding are for damage in areas not officially designated as special flood hazard areas. If you are not in a high-risk flood zone, NFIP coverage is available at a lower premium.

History of Earthquakes
While earthquakes are most frequently associated with California, they have occurred in 39 states and, like flooding, are not covered under standard home insurance policies. Earthquake insurance is available from private insurers as an endorsement to a homeowners policy, and in California from the California Earthquake Authority, a privately funded, publicly managed organization. The cost of earthquake insurance differs widely by location, insurer and the type of structure being covered. Generally, older buildings cost more to insure than new ones. Wood frame structures may benefit from lower rates than brick buildings because they tend to withstand quake stresses better. Regions are graded on a scale of 1 to 5 for likelihood of quakes, and this difference is reflected in insurance rates.

Swimming Pool or Other Special Feature
If the house has a swimming pool, hot tub or other special feature, you will likely need more liability insurance. You may also want to consider purchasing an excess or umbrella liability policy to provide added protection in the event someone gets injured on your property and decides to sue you.

BEFORE YOU PLACE A BID ON THE HOME

Check the Loss History Report
Ask the current owner of the house for a copy of the insurance loss history report, such as a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report from ChoicePoint or an A-PLUS report from ISO, a leading source of information about property/casualty insurance. This is a record of insurance claims on the house that can provide answers to two questions that any savvy homebuyer should ask:

Have there been any past problems in the home?
If damage has occurred, was it properly repaired?

Note that prior claims are not a barrier to getting insurance. In fact, sometimes a recent claim can have positive ramifications. If, for example, a roof was damaged by a wind storm and replaced by a new one, this would make the house more desirable to an insurance company. If there have been no claims within five years, there will be no loss history report on the home.

Get the House Inspected
A thorough inspection of the home is very important. The inspector should:

check the general condition of the home;
look for water damage, termites and other types of infestation;
pay special attention to the electrical system, septic tank and water heater;
show you where potential problems might develop;
double-check that past problems have been repaired;
suggest upgrades or replacements that may be needed.

If the inspector raises questions, your insurance company will as well. And, be sure to find out if there is an underground oil storage tank, as many insurers will not provide policies for homes that have one.

Determine How Much It Will Cost to Maintain the House
Routine maintenance is your responsibility as a homeowner. Losses caused by failing to properly care for your home are not covered by standard homeowners insurance policies. The yearly cost of taking care of your house is another factor to be included in the overall price of owning the home.

Call Your Insurance Representative
Don’t wait until the last minute to think about insurance. Ask your insurance professional if the house will qualify for insurance, and get an estimate of the premium. The sooner you act, the smoother the process will be. Don’t be shy about asking for estimates on more than one house. Insurance is an important consideration when purchasing a home. If you are uncomfortable with the cost of insuring a particular house, keep looking for one that better fits your financial situation. If you do not already have an insurance agent or company representative, get recommendations from family, friends or co-workers, or consult yourstate insurance department.

Purchasing Insurance for your New Home

When purchasing a home insurance policy, work with your insurance agent or company representative to get enough insurance to rebuild the house in the event of a total loss. No new home buyers want to think that their house could go up in flames, but disasters do happen. It’s important to have enough insurance to completely rebuild your home and replace all of your personal possessions. You also need to make sure you have enough liability insurance to protect your financial assets. Ask about additional coverage such as:

Replacement cost for personal possessions
Extended or guaranteed replacement cost for the structure
Building code upgrades
Sewer and drain back-up coverage
Inflation-guard
Umbrella coverage for a pool or other high-risk items
Special riders for jewelry, collectibles and expensive items

To save money on your homeowners insurance, shop around and take the highest deductible you can afford. Since most people only file a claim every eight to 10 years, having a higher deductible saves money over time and preserves your insurance for when it’s really needed. You can also ask about available discounts for:

Multi-policy (home, car or other policies with the same company)
Smoke detectors
Fire extinguishers
Sprinkler systems
Burglar and fire alarms that alert an outside service
Deadbolt locks and fire-safe window grates
Being 55 years old and/or retired
Long-time policyholder
Upgrades to plumbing, heating and electrical systems
Earthquake retrofitting to make the home safer
Wind-resistant shutters

ADDITIONAL RESOURCES

ChoicePoint
CLUE reports
Fair Isaac
To order a credit report, MyFICO.com
For help in determining your credit score, call 800-777-2066
Institute for Business & Home Safety
ISO
-To order a copy of your A-PLUS report, call 800-709-8842
-For up-to-date information on fire protection services throughout the country, see the Public Protection Classification program
National Flood Insurance Program

For More Information please visit: Insurance Information Institute

Your Insurance Policies Can Protect You If You Get More “Tricks” Than Treats This Halloween

2011-10-28T10:45:00.001-04:00

A few basic safety steps, along with up-to-date homeowners and auto insurance policies, can take some of the fright out of possible Halloween related damage, according to the Insurance Information Institute (I.I.I.).

“If you’re worried about your home or apartment being damaged by a small army of trick-or-treaters dressed like Zombies, Charlie Sheen, Snooki or Lady Gaga—anticipated to be the most popular costumes this year—call your insurance agent, broker or company representative,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “They can help explain your insurance coverage, suggest upgrades to your policy and even offer tips to keep your home safe this holiday season.”

Fortunately, your insurance can provide coverage for many possible Halloween-related disasters:

Your home or car is the target of mischief
Standard homeowners and renters insurance policies provide coverage for vandalism. There will be a deductible before your policy starts to pay, but if you suffer expensive damage to your home or possessions you will be financially protected. In the event that your car is damaged by mischievous trick-or-treaters, there is coverage under the optional comprehensive portion of your auto insurance policy.
There is a fire in your home
If a Halloween candle or electrically powered decoration causes a fire, any damage will be covered by standard homeowners and renters insurance policies. If the fire is significant enough to make your home unlivable, you would also be covered for additional living expenses, such as having to check into a hotel while your home is being repaired.
A trick-or-treater is injured on your property
If a trick-or-treater or Halloween party guest is accidently injured in your house or apartment, you would be covered under the liability portion of your homeowners or renters insurance policy, should the injured guest sue you. Standard policies also include no-fault medical coverage so that the injured guest could simply file their medical claim with your insurance company and avoid a lawsuit. Not everyone is familiar with this coverage, but it provides very important financial protection.
You crash your car into a tree to avoid hitting a trick-or-treater
Of course, we know you will drive slowly and carefully, but if a group of excited trick-or-treaters darts in front of your car causing you to swerve and hit a tree, you should be covered. Accidents that do not involve another driver or pedestrian are covered under the optional collision portion of an auto insurance policy. If another car or person is involved in the accident, the liability portion of your auto policy would kick in.

Some basic steps can make your home safe for trick-or-treaters, so you can avoid Halloween disasters altogether:

Remove all objects around the outside of your house that could cause children to trip or fall.
Turn your outside light on so children will know they can visit your home.
Keep candles, jack-o-lanterns, matches and lighters in a place that children cannot reach. Halloween candles with multiple wicks close to one another are hazardous and should not be used. When lit they can produce a single high flame or several large flames close together resulting in intense heat and the danger of igniting nearby materials such as curtains or window sills.
Keep pets inside and away from trick-or-treaters and lit candles, especially if they are easily frightened or become over-excited in the presence of strangers.
If using decorative lights indoors or outdoors, use lights certified by a recognized organization such as UL (Underwriters Laboratories). Check lights for broken or cracked sockets, frayed or bare wires or loose connections. Discard damaged sets. Do not overload extension cords.

It will be getting dark in much of the country by 5 p.m. on Monday, October 31, and because Halloween falls on a school day, many youngsters will be canvassing neighborhoods for treats after dark. Motorists need to remember that kids may be distracted by all the costumes and candy. So, drive slowly in residential areas and honk your horns on dimly lit streets to alert children who may not be paying close attention to vehicular traffic. And watch out for youngsters crossing against the light, darting out from between parked cars and walking in the street.

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org; PUBLICATIONS: iii store AND amazon.com

FACEBOOK: InsuranceInformationInstitute; TWITTER: @iiiorg

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

Six Questions To Ask Before Buying A Life Insurance Policy

2011-09-30T08:06:00.002-04:00

I.I.I. Recognizes Life Insurance Awareness Month, A Reminder Of The Importance Of Proper Coverage

Before buying a life insurance policy there are some important questions you should consider, and discuss with your insurance agent or company representative, according to the Insurance Information Institute (I.I.I.).

The benefits of a life insurance policy are clear: the coverage provides financial protection against the death of a policyholder in the form of a payment to the beneficiary; and life insurance proceeds are not taxable income. However, it is important that you find the policy that best fits your situation. In recognition of Life Insurance Awareness Month, here are six key questions to help you make the right choice.

Do I need to buy a life insurance policy?
If you and your spouse or partner have made financial commitments that rely on the continuation of your income, a life insurance policy is the most cost-effective way to provide the benefits your survivors would need. The proceeds from a life insurance policy also enables your estate to pay what it owes after your death, or fund a post-death gift to your beneficiaries.
Won’t the life insurance benefits I receive from my employer be enough?
Maybe, but probably not. Group life insurance policies—often offered to employees by their employers—generally pay out a dollar amount equal to one year of the employee’s salary, much less than what your survivors would need over time.
Can I count on my survivors getting Social Security benefits?
U.S. Social Security survivor benefits are available only if the surviving spouse has dependent children under the age of 18, or if the surviving spouse is aged 60 or over, so there may be a lengthy period where, in fact, he or she would not receive any benefits at all. Even when children and spouses are eligible for Social Security survivor benefits, the federal government caps them at a “family maximum,” which is likely to fall far short of what the survivors need.
How can I figure out how much life insurance coverage I need?
Try to identify how much money your survivors will need for as long a time period as they will need it, and buy enough insurance to meet this dollar amount. Some people like to use a shortcut, such as a multiple of their current annual income, when deciding how much the face value of their life insurance policy should be. If you use this method, remember that your income is likely to increase over time, while the life insurance benefit is often a fixed amount, such as $100,000 or $500,000. In other words, a death benefit bought today as a multiple of your current income will be a smaller multiple of future income. Moreover, life insurance industry research has shown that most survivors struggled to meet their financial commitments when the life insurance policy proceeds they received were equal to three times the policyholder’s annual income, or less. If you use a multiple-of-income shortcut, consider buying a life insurance policy with a face value equal to at least 10 times your annual income.
Should I purchase a term or permanent life policy?
Term insurance is a form of life insurance that pays out only if the policyholder’s death occurs during the “term” of the policy, which is usually anywhere from one to 30 years. The premium rates for term policies are lower than for permanent life policies. Permanent policies, such as whole life, universal life, variable life and variable universal life, remain in force as long as the premium is paid, and some policies accumulate a cash value.
How can I save money on life insurance?
Life insurance premium rates, especially for term life policies, are now at virtually their lowest levels in history. However, there are a number of things you can do to keep the cost even lower, whether you are purchasing a term or permanent life insurance policy. For example, buy policies with face-value amounts that reflect “quantity discounts.” It’s possible that a $500,000 life insurance policy will cost less than one valued at $450,000 because the larger policy might offer a discount for reaching the $500,000 milestone. You can also save by paying premiums annually, rather than on a monthly, or quarterly, basis.

But the most important question to ask about price is: how much will it cost your survivors if you do not pay the premium at all?

Do You Have Earthquake Insurance?

2011-08-23T15:23:00.006-04:00

Contrary to popular belief, many homeowners do not have earthquake coverage. While, some may not believe it to be necessary, the recent earthquake which reached many locations in Kentucky is an eye-opener. What would you do if your home was destroyed due to an earthquake but had no issuance to cover it? Could you repair or rebuild?

Get the Facts on Earthquake Insurance

What you don't know can hurt you. For example, your basic homeowners policy doesn't cover damage, and if even if you do have the coverage on your policy the earthquake deductible is probably higher than you think.

Possibly the most important thing to know about earthquake insurance is this: A basic homeowners policy does not cover earthquakedamage. Even if you don't live in an area where earthquakes are common, it's possible you might need earthquake insurance.

Earthquakes have occurred in 39 states since 1900, and about 90% of Americans live in areas considered seismically active. Yet only a small percentage of people purchase earthquake insurance.

Even in California, where earthquake fears are a daily fact of life, only about 12 percent of homeowners have earthquake insurance, according to the California Earthquake Authority (CEA), down from 30 percent in 1996 when the state legislature created the CEA.

Each year, more homeowners get rid of earthquake coverage than buy it because, according to consumer groups, they believe the policies cost too much and cover too little.

According to the U.S. Geological Survey, there is a 70 percent probability that one or more damaging earthquakes of magnitude 6.7 or larger will strike the San Francisco Bay area during the next 30 years. (A magnitude 6.7 earthquake is equivalent to the 1994 Northridge, Calif., earthquake that killed 57 people and caused $20 billion worth of damage.)

Homeowner, condo and rental insurance policies do not cover damage caused by an earthquake, but coverage can be puchased as an endorsement or a separate policy. Earthquake insurance can be quite inexpensive depending on where you live. Contact your insurance agent or company to find out what the costs would be for your home.

Not surprisingly, Californians buy the most earthquake insurance, but earthquake insurance has been sold to residents of all 50 states.

The Earthquake Education Center at Charleston Southern University claims there's a 40 to 60 percent chance of a major earthquake somewhere in the eastern United States in the next 20 years. That has prompted the South Carolina Insurance News Service to recommend residents of that state consider purchasing earthquake policies.

The New Madrid Fault, which runs through Arkansas, Kentucky, Missouri and Tennessee, also has insurers worried. According to the Insurance Information Institute, there's a 40 to 63 percent chance the region will suffer an earthquake with a 6.0 magnitude in the next 15 years. The availability of earthquake coverage has become an issue in some regions of those states. For those who don't remember, which would include anyone not alive in 1811, an earthquake struck the New Madrid area with enough force to change the course of the Mississippi river and ring church bells on the east coast.

"The potential magnitude of a catastrophic New Madrid quake dictates that we approach the preparedness on a regional basis," says W.R. Padgett, board chairman of the Central United States Earthquake Consortium. "No one state can possibly begin to address all the issues."

What does earthquake insurance cover?
Ideally, your earthquake insurance policy covers the cost to replace or repair your damaged property. There are several options to consider when picking a plan, including:

Does the policy cover only the dwelling? Are accessory structures, such as garages, also included?

Will your policy pay for the contents of your home and for additional living expenses if your home is badly damaged or destroyed?

Are there any exclusions or limitations to coverage?

What deductible must you pay before the insurance kicks in?

How much does earthquake insurance cost?
Earthquake insurance rates are determined differently by each insurance company and can vary widely depending on several rating factors.

Generally, older homes cost more to insure than new homes. Wood homes get better rates than brick ones because wood tends to withstand quake stresses better.

In addition, areas are graded on a scale of 1 to 5 for likelihood of quakes, and this might be reflected in earthquake insurance rates. Because earthquake insurance is a type of catastrophic coverage, most policies carry a high deductible — anywhere from 2 to 20 percent of your replacement coverage limit.

For residents of California, one option is to get insurance through the CEA. The CEA is a state-sponsored private-public partnership providing earthquake insurance to California homeowners, renters and condominium owners. Insurance companies that belong to CEA offer a standard earthquake insurance policy with a 15 percent deductible. There's also a 10 percent deductible policy available. The CEA Web site has a tool to calculate your estimated annual earthquake premium. Californians can also buy earthquake policies outside the CEA.

How much coverage should I buy?
If you ultimately decide to purchase earthquake insurance, remember you should buy enough to cover the costs of rebuilding your house and replacing broken possessions. The amount of insurance you buy should be based on replacement and reconstruction costs, not the market value of your property and possessions.

You should also find out your rights for filing claims before you sign any earthquake insurance policy. It's important to know how much time you have to file a claim following a quake. In some cases, damage from earthquakes is not immediately apparent.

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Before Taking a Dip In The Swimming Pool, Consider the Insurance and Safety Implications

2011-08-04T11:58:00.002-04:00

A Few Precautions Can Help Prevent Accidental Injury or Drowning and Protect You Financially, Says the I.I.I.

With temperatures soaring throughout the country, many people will be taking advantage of the heat-beating enjoyment of a swimming pool. Whether you have a luxury in-ground pool or plan to blow up an inflatable kiddie pool, it is important to consider the insurance and safety implications, according to the Insurance Information Institute (I.I.I).

Swimming pools are more popular than ever before. An estimated 8.8 million swimming pools are in residential or public use in the United States today, according to the Centers for Disease Control and Prevention (CDC).

“Pools offer a great way to keep cool in this heat and humidity, but they can also be dangerous,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “A child can drown in a few inches of water in less than 30 seconds.”

Indeed, there are over 3,400 fatal accidental drownings in the U.S. annually, with children ages one to four having the highest drowning rates. Fatal drowning remains the second-leading cause of unintentional injury related death for children ages one to 14 years old, according to the CDC. In addition, for every child who dies from drowning another four children will be treated for “nonfatal submersion injuries” which can cause brain damage that may result in long-term disabilities including memory problems, learning disabilities and permanent loss of basic functioning (e.g. permanent vegetative state).

The I.I.I. suggests taking the following steps if you own or are considering purchasing a swimming pool:

Call your insurance agent or company representative
Let your insurance company know that you have a pool or are getting a pool, since it will increase your liability risk. Pools are considered an “attractive nuisance” and it may be advisable to purchase additional liability insurance. Most homeowners policies include a minimum of $100,000 worth of liability protection. Pool owners, however, may want to consider increasing the amount to at least $300,000 or $500,000. You can also talk to your insurance agent or company representative about purchasing an umbrella liability policy. For an additional premium of about $200 to $300 a year, you can get $1 million of liability protection over and above what you have on your home.

“You can be sued if someone drowns or is injured in your pool even if they do not have your permission to be there,” Salvatore warned. “So it’s important to have the proper locks and safety equipment and to have appropriate liability insurance.”

If the pool itself is expensive, you should also have 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 chairs, tables or other furniture around the pool deck.
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 the pool you are planning to buy meets the definition, then 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.

The I.I.I. also recommends taking the following safety precautions:

Install a four-sided barrier such as a fence with self-closing gates to completely surround the pool. If the house forms the fourth side of the barrier, install alarms on doors leading to the pool area to prevent children from wandering into the pool or spa unsupervised. In addition to the fences or other barriers required by many towns, consider creating several “layers of protection” around the pool, in other words setting up as many barriers (door alarms, locks and alarmed safety covers) as possible to the pool area.
Never leave small children unsupervised—even for a few seconds. And never leave toys or floats in the pool when it is not in use as they may prove to be a deadly temptation for toddlers trying to reach them who might then fall into the pool.
Keep children away from pool filters and other mechanical devices as the suction force may injure them or prevent them from surfacing. In case of an emergency, know how to shut off these devices and clearly post this information so others can do so too.
Ask if pool users know how to swim. Learners should be accompanied by a good swimmer. If you have children, have them take swimming lessons as early as possible. And, do not allow anyone to swim alone.
Check the pool area regularly for glass bottles, toys or other potential accident hazards. Also, keep CD players, radios and other electrical devices away from pools or nearby wet surfaces.
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. The CDC reports that alcohol use is involved in up to half of adolescent and adult deaths associated with water recreation.
Clearly post emergency numbers on the phone, in the event of an accident. Keep a first aid kit, ring buoys and reaching poles near the pool. You may also want to consider learning basic water rescue skills, including first aid and CPR training. For additional information, contact the American Red Cross.

The U.S. Consumer Product Safety Commission has launched Pool Safely, a pool safety campaign that can also be found on Twitter: @poolsafely.

FOR MORE INFORMATION ABOUT INSURANCE: WWW.III.ORG; PUBLICATIONS: III STORE ANDAMAZON.COM
FACEBOOK: INSURANCEINFORMATIONINSTITUTE; TWITTER: @IIIORG

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

Driving in Bad Weather

2011-07-13T14:03:00.005-04:00

Driving in bad weather is a major cause of accidents. When you are driving, particularly on a long trip, make sure to stay tuned to radio reports about weather conditions. If you hear that an ice storm, hurricane, tornado, flood, hail or other severe weather is expected on the route you are taking or at your intended destination, change your travel plans. Whatever reason you have for going where you are going cannot be as important as saving your life.

If you are already in an area that is being hit by bad weather, don’t try to drive your way out of it. Seek shelter for both you and your car and wait for the storm to pass.

For More Information Visit: Insurance Information Institute

Prepare For Disasters Before They Happen; Know The Claims Filing Process

2011-07-11T14:59:00.003-04:00

Tornadoes, fires, hurricanes—these and other disasters can wreak havoc on people’s lives, properties and possessions. Learning the claims filing process before an insured loss strikes can make your economic recovery faster and easier, according to the Insurance Information Institute (I.I.I.).

“The claims filing process can be overwhelming, particularly if you have sustained a large loss,” said Michael Barry, vice president, Media Relations, I.I.I. “To begin the rebuilding process as quickly as possible, you need to get your claim going and that means contacting your insurance agent or company representative right away,” he added. “Your insurance company may send you a proof of loss form to complete, or an adjuster may first visit your home. In either case, the more information you have about your damaged property and possessions, the faster your claim generally can be settled.”

When a disaster does happen, the I.I.I. offers the following claims filing tips:

1. Be prepared to give your agent or insurance company representative a description of the damage. Your agent will report the loss to your insurance company or to a qualified adjuster who will contact you about making an appointment to inspect the damage. If you have to evacuate, make sure to give your agent or insurer a telephone number where you can be reached.

2. Take photos of the damaged areas. These will assist the adjuster in the investigation and help with the claims process.

3. If you do not already have one, prepare a detailed inventory of all damaged or destroyed personal property. Be sure to make two copies, one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at the time of purchase and estimated replacement cost, if you are able to provide that figure.

4. Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the damaged or destroyed property.

5. Make whatever temporary repairs are needed to protect your home from further damage and from causing injury to you and others. Do not make extensive permanent repairs until after the claims adjuster has been to your home and assessed the damage.

6. Save receipts for any supplies or materials purchased, and make copies of bills for your records. Your insurance company will reimburse any reasonable expenses incurred in making temporary repairs. Secure a detailed estimate for permanent repairs to your home from a reliable contractor and give it to the adjuster. The estimate should contain the proposed repairs, costs and replacement prices.

7. The contractor’s bid should include details of the materials to be used and prices on a line-by-line basis.

8. Be sure to keep copies of the lists and other documents you submit to your insurance company. Also keep copies of whatever paperwork your insurance company gives you.

If you believe the settlement offer made by your insurance company is not a fair one, contact the insurer. Be prepared to provide information to back up your claim.

Your settlement probably will not be the same as your neighbor’s. Your insurance policy may be different and the amount of damage to your home may be different even though you live on the same street. Your insurance policy will pay for the property you had before the disaster. But your homeowners insurance policy will not pay for expensive improvements like a tile roof, for instance, if you had a standard fiberglass roof before the insured loss occurred.

Serious losses are given priority. All losses are adjusted and claims paid as quickly as possible but hardship cases are usually handled first. If your home is destroyed or seriously damaged, your agent will do everything possible to assure you are given priority.
FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org
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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

For More Information Visit: Insurance Information Institute

Personal Watercraft

2011-06-10T12:21:00.003-04:00

Personal watercraft are not generally covered by homeowners or auto insurance, and where they are, the coverage limits can be fairly low. You may need to purchase a specifically designed policy in order to insure these vessels. The personal watercraft policy covers:

■ Bodily injury
■ Property damage
■ Guest passenger liability
■ Medical payments
■ Theft

Typical policies include deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments, although these may vary from company to company.

Liability limits start at $15,000 and can be increased to $300,000. This coverage will provide financial protection if your personal watercraft is involved in an accident.

Most policies also include water sports liability, which covers risks associated with activities such as waterskiing.

Consider buying an umbrella policy which will provide more liability protection. One million dollars in extra coverage costs about $300 a year and would extend to your home and auto insurance policies.

If you have several personal watercraft, you may qualify for a multi-boat discount on your insurance. Additional coverage can also be purchased for trailers and other accessories.

Be sure to speak with your insurance agent or company representative about your specific needs.

Personal Watercraft Safety

Sea Doos, Wave Runners and other personal watercraft are fun and so easy to use that you can get a false sense of security; however, each year they cause thousands of serious injuries.

To safely enjoy your personal watercraft, the I.I.I. suggests the following:

■ Never follow directly behind another personal watercraft. Stay at least 100 yards behind the vessel in front, and no less than 50 yards to one side. Because these vessels can travel at a very high rate of speed, each rider must be able to react to sudden changes in order to avoid a collision. Eighty percent of all injuries and fatalities occur when two vessels collide with one another.

■ Don’t jump the wake of a passing boat. You could misjudge its speed and cause a collision. Or you might end up in the path of traffic coming from the other direction.

■ Stay alert! Be aware of what is going on around you. Steer clear of other watercraft, swimmers, divers, water skiers and fishermen.

For More Information Visit: Insurance Information Institute

Lawnmower Safety

2011-06-07T16:34:00.004-04:00

Each year, approximately 75,000 people are injured seriously enough by lawnmowers to require emergency room medical treatment. Only a small percentage of the injuries are caused by mechanical failure; most are the result of human error.

Here are some tips to follow before and while mowing your lawn:

Become familiar with your mower. Read the owner’s manual before using the mower for the first time. Note all safety and operating instructions. Learn the controls well enough to act instantly in an emergency and to stop the machine quickly.

Proper clothing is essential to protect your body from harm.Always wear non-slip shoes instead of tennis shoes or sandals. Steel-toe safety footwear offers the most protection against the blade. Long pants help protect your legs from objects that may be thrown from under the mower. Use ear plugs to prevent hearing loss caused by exposure to the high noise levels.

Never leave a mower running unattended.A mower left running unattended can be fascinating to a child. If the mower has an electric start, the key should never be left in the ignition.

Always start the mower outdoors. Never operate a mower where carbon monoxide can collect, such as in a closed garage, storage shed or basement.

Police the area.Before you satrt mowing, be sure the lawn is free of tree limbs, rocks, wires and other debris, which can get caught up in the blades.

The main source of danger is the blade. To perform its task efficiently, the mower blade must be sharp and travel at a high speed. If a hand or foot gets under the mower while the engine is running, it can cause serious injury. Never attempt to unclog or work on a lawnmower while the engine is on.

Disconnect the sparkplug wire.Any time it is necessary to reach under the mower, disconnect the spark plug wire to insure that the engine cannot start. It takes a little extra time, but not as long as it does to recover from a serious injury.

Check for frayed or cut wiring.When using an electric lawnmower, wires can easily get cut by the blade. Keep an eye on the wiring as you move the mower and check for frayed or cut wiring every time you mow.

For More Information Visit: Insurance Information Institute

Grilling Safety

2011-05-27T10:33:00.014-04:00

Americans enjoy more than three billion barbecues each year. But barbecuing can be dangerous, even deadly, if you are not careful.

The following tips can make your grilling experience safer:

1. When ready to barbecue, protect yourself by wearing a heavy apron and an oven mitt that fits high up over your forearm.

2. With gas grills, make sure the gas cylinder is always stored outside and away from your house. Make sure the valves are turned off when you are not using them. Check regularly for leaks in the connections using a soap and water mix that will show bubbles where gas escapes.

3. Barbecue grills should be kept on a level surface away from the house, garage, landscaping, and most of all, children.

4. For charcoal grills, only use starter fluids designed for those grills. Never use gasoline and use a limited amount of starter fluid. If the fire is too slow, rekindle with dry kindling and add more charcoal if necessary. Never add more liquid fuel or you could end up with a flash fire.

5. Be sure to soak the coals with water before you put them in the trash.

6. Always remember that grills remain hot long after you are through barbecuing.

In Case Of An Emergency
If you get burned, run cool water over the injury for 10–15 minutes. Never put butter or salve on burns because they will seal in the heat and cause further blistering. If you receive a serious burn the sooner you get medical attention the better.

For More Information Visit: Insurance Information Institute

How Can I Save Money On Auto Insurance?

2011-05-19T17:07:00.005-04:00

The price you pay for your auto insurance can vary by hundreds of dollars, depending what type of car you have and the insurance company you buy your policy from. Here are some ways to save money.

1. SHOP AROUND
Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers. (State insurance department phone numbers and Web sites can be found on the back cover.)

You buy insurance to protect you financially and provide peace of mind. It’s important to pick a company that is financially stable. Check the financial health of insurance companies with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings) and consult consumer magazines.

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet.

Don’t shop by price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers.

2. BEFORE YOU BUY A CAR, COMPARE INSURANCE COSTS
Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).

3. ASK FOR HIGHER DEDUCTIBLES
Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. REDUCE COVERAGE ON OLDER CARS
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.

5. BUY YOUR HOMEOWNERS AND AUTO COVERAGE FROM THE SAME INSURER
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multipolicy discount.

6. MAINTAIN A GOOD CREDIT RECORD
Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

7. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS
Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.

8. ASK ABOUT GROUP INSURANCE
Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.

9. SEEK OUT OTHER DISCOUNTS
Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is away at college without a car, you may also qualify for a lower rate.

When you comparison shop, inquire about discounts for the following:*

Antitheft Devices
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Defensive Driving Courses
Drivers Ed Courses
Good Credit Record
Higher deductibles
Low Annual Mileage
Long-Time Customer
More than 1 car
No Accidents in 3 Years
No Moving Violations in 3 Years
Student Drivers with Good Grades

*The discounts listed may not be available in all states or from all insurance companies.

The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.

For More Information Visit: Insurance Information Institute

Whether Your Wedding Is Royal or Not, Insuring Your Special Day Can Provide Important Financial Protection

2011-05-01T19:18:00.002-04:00

Your nuptials may not be as extravagant as the royal wedding of Prince William and Kate Middleton, but weddings in the U.S. can be extraordinarily expensive, so it is important to consider wedding insurance to financially protect your special day, according to theInsurance Information Institute (I.I.I.).

A survey conducted by the wedding planning website, TheKnot.com revealed that the average wedding in the U.S. costs about $27,800, while the prices of weddings in urban areas are reaching $40,000 or more.

“Wedding insurance is a form of special event insurance that provides reimbursement for non-refundable deposits in the event the wedding needs to be cancelled or postponed due to a natural disaster, death, illness, serious injury or other catastrophe listed in the policy,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.

Policies also provide financial protection in the event the caterer goes bankrupt, or the florist or photographer do not show up.

Several insurers offer wedding insurance. Some provide a package policy that includes a selection of coverages, while others offer a la carte coverage where you can pick among several options.

“Planning a wedding is a fun but emotional experience and purchasing wedding insurance can offer some piece of mind as the bride, groom and their families write check after check,” noted Salvatore.” In fact, some insurers even offer coverage for ‘cold feet’, providing someone other than the bride or groom is paying for the ceremony (generally the parents) and the couple breaks up more than 180 days before the ceremony.

Following are some tips to consider when purchasing wedding insurance:

Find out if the insurer is licensed to do business in the state where you live.
Determine how much the policy will cost and what specifically is covered and not covered by the policy.
Ask your agent or company representative what wedding related insurance coverage you may already have through your homeowners, renters, auto or liability policy.
Shop around and compare different wedding insurance policies for cost and range of coverages.

If you have any questions about wedding insurance, contact your insurance agent or company representative. He or she can help you determine if the coverage is right for you.

Furthermore, getting married is a major life event that should trigger a review of all of your insurance policies, including homeowners, auto and life insurance. You are not only merging two lives, but two households.

With most couples receiving numerous wedding gifts, it is also be a smart time to creat or update a home inventory. To help with this task, the I.I.I. offers Know Your Stuff, free online home inventory software, along with avideo on the topic. And, don’t forget that most wedding and engagement rings will need special coverage in the form of a floater or endorsement.

Owning a Home Without Homeowners Insurance

2011-04-13T21:27:00.004-04:00

Unlike driving a car, you can legally own a home without homeowners insurance. But, if you have bought your home and financed the purchase with a mortgage, your lender will most likely require you to get homeowners insurance coverage. That’s because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster.

If you live in an area that is likely to flood, the bank will also require you to purchase flood insurance. Some financial institutions may also require earthquake coverage if you live in a region vulnerable to earthquakes. If you buy a co-op or condominium, your board will probably require you to buy homeowners insurance.

After your mortgage is paid off, no one will force you to buy homeowners insurance. But it is not advisable to cancel your policy and risk losing what you’ve invested in your home.

For More Information Visit: Insurance Information Institute

Remodeling Your Home

2011-03-31T16:59:00.006-04:00

If you plan to remodel your home, make sure that the house, the contractor and the subcontractors have adequate insurance coverage.

Don’t make the mistake of waiting until an addition or extra room is completed to increase the insurance coverage on the structure of your home. If the new addition is destroyed or damaged before insurance coverage has been increased, you may be responsible for the cost of repairing or rebuilding the addition.

Contact your insurance agent or representative before—or shortly after—construction begins in order to increase the insurance coverage on your house to an amount that reflects the higher value of the rebuilt structure.

When hiring a general contractor, find out if the contractor has workers compensation and ask to see a copy of the policy. Workers compensation pays for medical and rehabilitation expenses and covers lost wages if the workers sustain injuries on the job. Injured workers may sue you if the contractor does not have proper insurance.

In most home improvement projects, the contractor subcontracts the builders, electricians and plumbers. The workers hired may not be full-time employees of the contractor and therefore not covered under the contractor's workers compensation policy. While some independent builders, electricians and plumbers may carry their own workers compensation coverage, others may not.

You should verify the insurance coverage of the contractor and the subcontractors. If the coverage is insufficient, you may need to fill in the gaps by extending the limits of the liability portion of your homeowners policy.

If you purchase additional items, such as furniture, exercise equipment or electronics, you may need to increase the amount of insurance you have on your personal possessions. Keep receipts and add them to your home inventory.

For More Information Visit: Insurance Information Institute

Don’t Risk Being Underinsured: Five Insurance Mistakes To Avoid

2011-03-17T16:44:00.005-04:00

Too many Americans believe that the coverage limits of their homeowners insurance policy are linked to the market value of their home, according to the Insurance Information Institute.

In the I.I.I.’s 2011 Insurance Pulse Survey, conducted by the Opinion Research Corporation, nearly half (48 percent) of survey respondents came to that mistaken conclusion.

“The real estate value of a home, that is the price you can buy or sell it for, has absolutely nothing to with the amount of insurance needed to financially protect the homeowner in the event of a fire or other disaster,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “Reducing insurance coverage because the market value of a home has decreased can result in being dangerously underinsured.”

One out of three respondents to the Pulse Survey reported that they purchased less homeowners or auto insurance as a way to save money. A better strategy would be to take a higher deductible, which can substantially reduce insurance costs. Home and car owners can then put the savings into a purchasing the right amount and type of insurance for their specific needs, pointed out Salvatore.

Another way to save money is to comparison shop, something that seven out of 10 Pulse Survey respondents said they utilized as a strategy to save on both their home and auto insurance needs.

Following are the five biggest auto, home, flood and renters insurance mistakes consumers can make, with suggestions to avert those pitfalls while still saving money:

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. Furthermore with the significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance.

A better way to save: Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Additional information on flood insurance can be found at www.FloodSmart.gov.

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 if you are sued—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 insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. 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.

Did You Get an Engagement Ring or Other Expensive Piece of Jewelry for Valentine’s Day?

2011-02-17T21:19:00.001-05:00

If you receive an engagement ring or other expensive piece of jewelry this Valentine’s Day, who are you going to call to tell about it? Your mother? Your best friend? Maybe you’ll post your good fortune on Facebook? While these may be your first impulses, if you want to protect your sparkling new gift, the most important call will be to your insurance agent or company representative to make sure you have the necessary insurance, according to the Insurance Information Institute (I.I.I.).

Standard homeowners and renters insurance policies include coverage for personal items such as jewelry and other valuables. However, many policies limit the dollar amount for the theft of valuable personal possessions such as jewelry, furs and precious stones to $1,000 to $2,000.

“To properly insure jewelry, consider purchasing additional coverage through a floater or an endorsement,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.

In most cases, this would also be covered you for ‘mysterious disappearance’. This means that if your ring falls off your finger or is lost, you would be financially protected. Floaters and endorsements carry no deductibles and frequently provide the option of having the insurance company replace the item for you.

Floaters and endorsements are available as additions to homeowners and renters insurance policies. Some companies also offer a stand-alone policy to cover jewelry without having to purchase a full homeowners or renters policy.

“While there is no way to insure the sentimental value of jewelry, at least having it properly insured will provide financial protection in the event it is lost or stolen,” noted Salvatore.

To make sure your jewelry is adequately protected, the I.I.I. suggests the following:

■Contact your insurance professional immediately
Let your agent or company representative know that you are now in possession of an expensive piece of jewelry. Find out how much coverage you have and if additional insurance is needed.

■Have the item appraised
Heirlooms and antique jewelry will need to be appraised for their dollar value. Ask your insurer for recommendations regarding a reputable appraiser. It is important that expensive items be appraised properly—if you purchase a floater or endorsement, you will pay a premium based on the appraised value and in the event of a claim, will be compensated for this dollar amount.

■Keep a copy of the store receipt
Forward a copy of the receipt to your insurer so that the company knows the current retail value of the item. Keep a copy for yourself and include it with your home inventory.

■Store valuables in a secure location
Protect your jewelry by storing it in a secure location in your home. If you do not plan to wear the item regularly or are holding it for a child, consider keeping it in a safe deposit box. You may save money on the cost of insuring it, as some companies offer ‘in vault’ coverage. If you want to wear the jewelry for a special occasion, many insurers will offer the option of purchasing additional coverage for the time it is out of the bank. You would, of course, have to notify your insurer ahead of time.

■Update the value of your jewelry
Expensive items can go up or go down in value. Talk to your insurance professional about how to make sure the dollar amount of your floater or endorsement reflects these changes. Prices for floaters and endorsements will vary depending on the type of jewelry, the insurance company you choose, where you live and where the item will be kept.

■Take a picture of the item
Get into the habit of keeping a visual record of all of your personal possessions. This helps to document your loss and speed up the claims process. It is also useful to document antique and unusual pieces of jewelry

■Add the item to your home inventory
Everyone should have an up-to-date inventory of their personal possessions. An inventory can help you purchase the correct amount of insurance and speed up the claims process when there is a loss. The I.I.I. has created free, online software, Know your Stuff® - Home Inventory, to make creating a home inventory easier. You can also add a digital photograph of your new gift and save scanned receipts. Computerizing your inventory makes updating easier and more efficient.

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org
PUBLICATIONS AVAILABLE AT iii store AND amazon.com

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

Freezing Pipes - Prevention

2011-02-06T21:31:00.009-05:00

To help protect your pipes from freezing, consider the following:

Insulate all accessible pipes using pipe insulation (this can be found at your local hardware store).
Keep all exterior entry, exit and overhead doors to unheated spaces closed as much as possible during the winter months.
Prior to the winter months, ensure that all cracks, holes, and other openings on the exterior walls are sealed tightly with caulk or insulation to prevent cold air from penetrating the wall cavity.
If any pipes are located adjacent to exterior walls or within base-cabinets or in closets, leave the cabinet/closet doors open or use a fan to increase warm air circulation around the pipes.

If you have rest rooms, kitchens, or service rooms with water sources located on exterior walls, it is likely that the plumbing for these systems is located inside the exterior walls. Or, if you have piping coming up through the floor over an unheated room or unheated crawlspace under your building, it is likely there is plumbing exposed to freezing weather.

In areas of severe cold weather, as specified on the map below, pay close attention to local weather reports for notice of extreme weather. When extreme cold weather is predicted, let all faucets drip to prevent freezing of the water inside the pipe and if freezing does occur, to relieve pressure buildup in the pipes between the ice blockage and the faucet. The pressure buildup is the actual cause of bursting pipes.

Install a water leak detection system, available at your plumbing supply store, which will alert someone to respond in the event water is detected.
Install a valve that allows you to shut off the water supply during periods when the building may be unoccupied, particularly when colder weather is expected. Be sure to drain your water supply system before leaving the building unoccupied.
Connect your sprinkler system to a water flow alarm that will alert a responder. In the event of a pipe rupture or a damaged sprinkler head, the responder will shut off the water supply. This will help limit water damage potential.
If your business is unoccupied for more than 24 hours at a time, you should have a plan in place to inspect the building once a day for freezing pipes during the winter months.
To check pipes, turn on each water supply faucet individually (both hot and cold) to ensure that there is a steady stream of water present. If the flow of water is slowed, or worse, there is no flow, then it is likely that your pipe has frozen. Identify the blockage (probably the area of most exposure) and use a blow dryer (do NOT use an open flame torch!) to heat the supply line, leaving the faucet open. Continue heating the pipe until there is a steady flow of water.

For More Information Visit: DisasterSafety.org

Surviving Severe Cold Weather

2011-01-20T21:07:00.003-05:00

Much of the country periodiaclly experiences severe and sustained cold weather, with snowfalls interspersed with periods of melting and freezing. This can inflict considerable damage on homes.

Here are some tips and steps you can take to make insurance losses less likely during extended severe weather.

Keep sidewalks and entrances to your home free from snow and ice.
Watch for ice dams near gutter downspouts. Keep gutters free of leaves and debris so melting snow and ice can flow freely. Ice dams can cause water to build up and seep into your house.
Keep the house heated to a minimum of 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 inside walls from freezing.
Identify the location for the main water shutoff in your home. Find out how it works in case you have to use it.
Open hot and cold faucets enough to let them drip slowly. Keeping water moving within the pipes will prevent freezing.
If you haven’t already, make sure all hoses are disconnected from outside spigots.
If your garage is attached to your house, keep the garage doors closed. The door leading to the house is probably not as well-insulated as an exterior door.
If ice forms on tree limbs, watch for dead, damaged or dangerous branches that could break and fall because of ice, snow or wind and damage your house, a car, or injure someone walking near your property.
If you use fireplaces, wood stoves and electric heaters, watch them closely and make sure they are working properly.
Remember to close the flue in your fireplace when you’re not using it.
If you have to leave your home on a trip, ask a neighbor to check the house regularly. If there is a problem with frozen pipes or water leakage, attending to it quickly could mean far less damage.
If you plan to be away for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting.
A Worst-Case Scenario
If you discover that pipes are frozen, don’t wait for them to burst. Take measures to thaw them immediately, or call a plumber for assistance.
If your pipes burst, first turn off the water and then mop up spills. You don’t want the water to do more damage than it already has.
Call your agent or company as soon as you can. An insurance adjuster doesn’t need to see the spill before you take action. However, he or she will want to inspect any damaged items.
Make temporary repairs and take other steps to protect your property from further damage. Remove any carpet or furniture that can be further damaged from seepage.
Make a list of the damaged articles.
Save the receipts for what you spend—including additional living expenses if you must leave your home until repairs are completed—and submit them to your insurance company for reimbursement.

Standard homeowners policies will cover most of the kinds of damage that result from a freeze. For example, if house pipes freeze and burst or if ice forms in gutters and causes water to back up under roof shingles and seep into the house. You would also be covered if the weight of snow or ice damages your house.

However, most policies do not cover backups in sewers and drains or flood damage, which can also happen in winter. To be covered for flooding, you need a policy from the National Flood Insurance Program, while coverage for sewers and drains is generally offered as an endorsement to a standard homeowners insurance policy.

If your home suffers water damage, it is important to make sure that it is properly dried and repaired to prevent any potential problem with mold. Remember, mold can not survive without moisture.

Check with your agent or company so you’ll be sure what your policy covers.

For more information visit: Insurance Information Institute

Safe Driving and Good Car Maintenance Take Center Stage In Winter

2011-01-10T14:31:00.002-05:00

Damage to cars from falling ice or tree branches is covered under the comprehensive portion of an auto insurance policy, an optional coverage which about 75 percent of U.S. drivers purchase. Comprehensive covers damage to a policyholder’s car not involving a collision with another car, including damage from fire, theft, explosions, earthquakes, floods and riots.

In order to avoid potentially dangerous situations under challenging driving conditions, the I.I.I. offers the following tips:

SAFE WINTER DRIVING

Give yourself enough time to arrive at your destination. Trips can take longer during the winter than at other times of the year, especially if you encounter storm conditions or icy roads.
Drive slowly—accelerating, stopping and turning all take longer on snow-covered roads.
Leave more distance than usual between your vehicle and the one just ahead of you, giving yourself at least 10 seconds to come to a complete stop. Cars and motorcycles usually need at least three seconds to halt completely when traveling on dry pavement.
Be careful when driving over bridges, as well as roadways rarely exposed to sunlight—they can be icy when other areas are not.
Avoid sudden stops and quick direction changes.
Keep the windshield and windows clear. Drivers in cold-weather states should have a snow brush or scraper in their vehicle at all times. Your car’s defroster can be supplemented by wiping the windows with a clean cloth to improve visibility.
Do not activate your cruise control when driving on a slippery surface.
Do not warm up your vehicle in an enclosed area, such as a garage.
Bring a cellphone so that those awaiting your arrival can get in touch with you if you are very late. But avoid the temptation to use the phone while driving, as it can be a dangerous distraction.
Monitor the weather conditions at your destination before beginning your trip. If conditions look as though they are going to be too hazardous, just stay home.
Drivers should neither apply extra gas nor stop their vehicle when traveling on an icy road and approaching a hill. The extra gas will prompt a car’s wheels to spin, and stopping completely will make it difficult for the vehicle to regain its momentum.

GOOD CAR MAINTENANCE

Keep your tires properly inflated and remember that good tread on your tires is essential to safe winter driving.
Check your exhaust pipe to make sure it is clear. A blocked pipe can cause a leakage of carbon monoxide gas into your car when the engine is running.
Be sure to keep your gas tank full. Stormy weather or traffic delays may force you to change routes or turn back. A fuller gas tank also ensures that your car’s gas-line will not freeze.

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org

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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

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

2010-12-29T21:49:00.004-05:00

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

PUBLICATIONS AVAILABLE AT iii store AND amazon.com

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

2010-12-06T22:15:00.003-05:00

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

Never put an infant in the front seat of a vehicle with a passenger air bag.
Route harness straps in lower slots at or below shoulder level.
Keep harness straps snug and fasten the clip at armpit level.
Make sure the straps lie flat and are not twisted.
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.
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.
Put the car seat carrying handle down when in the car.
Infants must ride in the back seat facing the rear of the car. This offers the best protection for your infant’s neck.
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.
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:

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.
It does not have a label with the date of manufacture and model number. Without these, you cannot check on recalls.
It has been in a crash. If so, it may have been weakened and should not be used, even if it looks all right.
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.
It has cracks in the frame of the seat.
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

2010-11-30T12:24:00.003-05:00

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

2010-11-05T20:58:00.003-04:00

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!

2010-11-02T21:05:00.006-04:00

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.

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.

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?

2010-10-30T09:39:00.006-04:00

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

2010-10-27T17:35:00.003-04:00

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

2010-10-27T17:35:00.001-04:00

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.

For More Information Visit: Insurance Information Institute

Winter Weather Preparation

2010-10-22T18:14:00.002-04:00

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

2010-10-19T17:31:00.006-04:00

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?

2010-10-08T14:41:00.003-04:00

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?

2010-10-05T11:34:00.001-04:00

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

Coverage for the structure of your home.
Coverage for your personal belongings.
Liability protection.
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

2010-10-01T11:09:00.002-04:00

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?

2010-09-28T11:12:00.001-04:00

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

2010-09-24T11:45:00.001-04:00

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.

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
Receive authorization from NHTSA after it reviews the case
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?

2010-09-21T09:44:00.005-04:00

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?

2010-09-17T11:14:00.003-04:00

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

2010-09-14T11:57:00.003-04:00

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:

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.
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.
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.
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.
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.
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.
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.

For More Information Visit: Insurance Information Institute

Flood Insurance: Top 10 Things Every Homeowner Should Know

2010-09-07T09:53:00.002-04:00

1. Everyone lives in a flood zone.

You don't need to live near water to be flooded.
Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure, etc.

2. Flood damage is not covered by homeowner’s policies.

You can protect your home, business, and belongings with flood insurance from the National Flood Insurance Program (NFIP).
You can insure your home with flood insurance for up to $250,000 for the building and $100,000 for building’s contents.

3. You can buy flood insurance no matter what your flood risk is.

It doesn't matter whether your flood risk is high, medium, or low, you can buy flood insurance as long as your community participates in the National Flood Insurance Program. And, it's a good idea to buy even in low or moderate risk areas: almost 25 percent of all flood insurance claims come from low to moderate risk areas.

4. There is a low-cost Preferred Risk Policy for homes in low to moderate risk areas.

Homeowners can insure buildings and contents for as little as $180 per year.
Business owners can insure buildings and contents for as little as $500 per year.
Residential renters can insure contents for as little as $39 per year.

5. Flood insurance is affordable.

The average flood insurance policy for a single family, one floor, no basement home in a floodplain zone costs a little more than $500 a year for about $65,000 of coverage for building and contents.
In comparison, a $50,000 disaster home loan can cost you more than $240 a month at 4 percent interest over 20 years.

6. Flood insurance is easy to get.

You can buy NFIP flood insurance from private insurance companies and agents.
Some companies may allow the purchase of flood insurance with credit.
You may be able to purchase flood insurance with a credit card.

7. Contents coverage is separate, so renters can insure their belongings too.

Up to $100,000 contents coverage is available for homeowners and renters.
Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with the building coverage.

8. Up to a total of $1 million of flood insurance coverage is available for non-residential buildings & contents.

Up to $500,000 of coverage is available for non-residential buildings.

Up to $500,000 of coverage is available for the contents of non-residential buildings.

9. There is usually a 30-day waiting period before the coverage goes into effect.

Plan ahead so you're not caught without flood insurance when a flood threatens your home or business.

10. Federal disaster assistance is not the answer.

Federal disaster assistance is only available if the President declares a disaster.
More than 90 percent of all disasters in the United States are not declared federal disaster areas. Flood insurance pays even if a disaster is not declared.

FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.

For More Information Visit: FEMA

Cell Phone Safety Tips - Driving Safely

2010-09-03T10:16:00.009-04:00

Today, drivers increasingly use their cell phones in the car. While we recommend that you avoid talking on the phone while driving, we recognize it may be unavoidable at times. If you must use your cell phone while driving, here are a few cell phone safety tips to follow.

Legislative Tracking Database - Follow your state's cell phone legislation and other current issues.
National Conference of State Legislatures
CHART: Cell phone use while driving - state laws
CTIA — The Wireless Association offers tips to drive safety with a cell phone, hands-free device and more.

Safety Tips

Get to know your cell phone and its features, such as speed dial and redial.
Carefully read your instruction manual and learn to take advantage of valuable features most cell phones offer, including automatic redial and memory. Also, work to memorize the phone keypad so you can use the speed dial function without taking your attention off the road.

When available, use a hands-free device.
A number of hands-free cell phone accessories are readily available today. Whether you choose an installed mounted device for your cell phone or a speaker phone accessory, take advantage of these devices if available to you.

Position your cell phone within easy reach.
Place your cell phone within easy reach and where you can grab it without taking your eyes off of the road. If you receive a call at an inconvenient time, if possible, let your voice mail answer it for you.

Suspend conversations during hazardous driving conditions or situations.
Let the person you are speaking with know you are driving. If necessary, suspend the call in heavy traffic or hazardous weather conditions. Rain, sleet, snow and ice can be hazardous, but heavy traffic can be just as dangerous. As a driver, your first responsibility is to pay attention to the road.

Do not take notes or look up phone numbers while driving.
If you are reading an address book or business card, or writing a "to do" list while driving a car, you are not watching where you are going. It's common sense. Don't get caught in a dangerous situation because you're reading or writing and not paying attention to the road or nearby vehicles.

Dial sensibly and assess the traffic. If possible, place calls when you are not moving or before pulling into traffic.
Try to plan your calls before you begin your trip, or attempt to coincide your calls with times you may be stopped, such as at a stop sign, red light or in a parking space. But, if you need to dial while driving, follow this simple tip: Dial only a few numbers, check the road and your mirrors, then continue dialing.

Do not engage in stressful or emotional conversations that may be distracting.
Stressful or emotional conversations and driving do not mix — they are distracting and even dangerous when you're behind the wheel of a car. Make people you are talking with aware you are driving and, if necessary, suspend conversations which have the potential to divert your attention from the road.

Use your cell phone to call for help.
Your cell phone is one of the greatest tools you can own to protect yourself and your family in dangerous situations — with your phone at your side, help is only three numbers away. Dial 911 or another local emergency number in emergencies such as a fire, traffic accident, road hazard or medical emergency. Remember, an emergency call is a free call on your cell phone!

Use your cell phone to help others in emergencies.
Your cell phone provides the opportunity to be a "Good Samaritan" in your community. If you see a car accident, crime in progress or other serious emergency where lives are in danger, call 911 or another local emergency number, as you would want others to do for you.

Call roadside assistance or a special cell non-emergency assistance number when necessary.
Certain situations you encounter while driving may require attention, but are not urgent enough to merit a call for emergency services. Even so, you still can use your cell phone to lend a hand. If you see a disabled vehicle posing no serious hazard, a broken traffic signal, a minor traffic accident where no one appears injured or a vehicle you know is stolen, call roadside assistance or another special non-emergency cell number.

Tips provided by the Cellular Telecommunications Industry Association. For more information, please call 1-888-901-SAFE.

Safety Tip Information provided by: Progessive .com

Protecting Your House From Mold

2010-08-31T09:30:00.006-04:00

When it comes to keeping your home mold-free, a strong offense is definitely your best defense. To prevent mold, eliminate moisture from your home and be on the lookout for signs of possible growth, such as musty smells or watermarks on walls and ceilings.

Caught early, mold can usually be removed by a thorough cleaning with bleach and water. To prevent mold from re-growing, however, it is essential that the source of the moisture be eliminated and the affected area properly dried, cleaned, and if necessary, replaced. Also, remember to bag and dispose of any material with moldy residue such as rags, paper or debris.

Mold, like rot and insect infestation, is generally not covered by a homeowners insurance policy. Standard homeowners policies provide coverage for disasters that are sudden and accidental. They are not designed to cover the cost of cleaning and maintaining a home. If, however, mold is the direct result of a covered peril such as a burst pipe, there could be coverage for the cost of eliminating the mold.

According to the Centers for Disease Control and Prevention (CDC), mold is everywhere. It grows year-round and can be found both indoors and outdoors. Outdoors, mold is commonly found in shady, damp areas and in soil. Indoors, it can be found where humidity and moisture levels are high, such as in basements, kitchens, bathrooms and on ceilings and wall interiors where water from leaky pipes, roofs or windows can accumulate. While most molds pose no threat to humans, the CDC warns that certain molds can produce hay fever-like allergic symptoms. If you or your children have symptoms associated with mold, see a physician. Keep in mind, that many symptoms associated with mold exposure are common to other illnesses.

To help prevent the growth of mold in your home, the I.I.I. suggests the following:

Reduce Humidity In Your Home

Keep the humidity levels in your home between 30 percent to 60 percent by using air conditioners or dehumidifiers.
Put exhaust fans in kitchens and bathrooms.
Don’t install carpets in damp areas such as basements or bathrooms.
Don’t let water accumulate under house plants.

Use Mold-Reducing Products

Clean bathrooms with bleach and other mold killing products.
Add mold inhibitors to paints before application.

Keep You Home and Belongings Dry

Inspect hoses, pipes and fittings - Consider replacing hoses to major appliances like washer and dishwasher every five years. A typical water hose costs $5-$10
- Refrigerator ice maker and water dispenser
- Water heater
- Washer
- Dishwashers
- Kitchen and bathroom sinks
- Bathroom toilets
Keep gutters clean of leaves and other debris.
Maintain your roof to prevent water from seeping into your home.

Be Careful After a Flood Or Other Water Damage

Properly dry or remove soaked carpets, padding and upholstery within 24-48 hours after a flood to prevent mold growth. Anything that can’t be properly dried should be discarded.
Remove standing water as quickly as possible. Standing water is a breeding ground for microorganisms, which can become airborne and inhaled.
Wash and disinfect all areas that have been flooded. This includes walls, floors, closets, shelves, as well as heating and air-conditioning systems.

If you have any questions regarding mold and homeowners insurance, contact your agent or company representative. They can provide information on how to maintain your home and may also be able to provide the name of an expert in mold-remediation. You can get more information on mold by accessing the CDC.

Also for More Information Visit: Insurance Information Institute

Boating Safety

2010-08-27T11:33:00.016-04:00

As the summer is quickly changing to fall, many boaters are trying to enjoy the last days on the water. By understanding the laws and dangers on the water, you can decrease your risk of a possible accident and still enjoy your day .

The Right-of-Way in Boating
On a crowded, busy lake, it can sometimes be difficult to tell who has the right-of-way. Unfortunately, many boating accidents result when drivers do not understand the ways in which boats are supposed to interact. Operating a boat is just like driving a car: if you do not understand the rules governing right of way, you are putting everyone around you in danger.

The most basic rule governing right of way on the water is that a boat must yield to any boat that is in the angle extending from the front of the boat forward and from the rear starboard (right) corner of the boat perpendicular to the boat. This area is known as the “danger zone,” and boats are obliged to yield to any other vessels in their danger zone. Conversely, if you are in another boat’s danger zone, that boat is required to yield to you.

The right of way on the water may also be determined by the types of boats involved. For instance personal watercraft (PWC), also know as jet ski's, should always yield to all other types of boats, as it is the smallest on the water.

Pleasure Boat Accidents
Many people find recreation and relaxation in boating, but this pastime can be dangerous if it is not pursued in a conscientious and informed manner. Unfortunately, there are hundreds of severe and fatal injuries involving pleasure boats every year. For instance, in 2005 in the United States there were 697 fatal boating injuries, or 5.4 injuries for every 100,000 registered boats. Most of those who died in boating accidents drowned, and authorities believe that over 400 of these lives could have been saved if the individuals had been wearing life-jackets. In general, most boating accidents involve collisions with other vessels, although falling overboard is also a common mishap while on the water.

About half of the injuries in 2005 were aboard open motorboats, although there was a significant increase in the proportion of injuries sustained on personal watercraft. In about a quarter of the fatal boating accidents, alcohol was determined to have played a significant role, and in the majority of these accidents the boat operator had not received any training in boat safety.

The most commonly cited cause of boating accidents was reckless operation, followed by operator inattention, excessive speed, and operator inexperience.

PWC Safety
Riding a PWC is arguably one of the most exciting things you can do on the water, but it can also be one of the most dangerous. Although statistics indicate that jet skis are not involved in a significantly greater percentage of accidents than other watercraft, the accidents involving jet skis are more likely to be serious or fatal. In order to ensure your own safety and the safety of others, there are a few basic guidelines you should remember every time you ride:

Always wear a fitted, Coast Guard-approved life-jacket.
Always use the safety lanyard that would stop the engine should you fall off.
Once you are out on the water, constantly be on the lookout for other boats, skiers, divers, and swimmers. It can be difficult, especially in choppy water, to see swimmers and fallen skiers, so you must be constantly vigilant and keep a wide distance from boats and the shoreline.
Do not use waves and the wakes made by boats as ramps.

PWC Accidents
The best weapon against jet ski accidents and other personal watercraft accidents is knowledge. Indeed, most serious jet ski accidents occur when the rider is someone who has either borrowed or rented the jet ski. In other words, unfamiliarity with the technique and etiquette of riding a jet ski can endanger your health! By staying informed about the risks associated with jet skis you can minimize your chances of being involved in an accident.

Too few jet ski operators know the limitations of their craft in terms of speed and stopping distance. Many riders assume that a jet ski can stop abruptly, when in fact it takes considerable time and distance to bring a PWC to a complete halt. Another common cause of jet ski accidents is ignorance of the relation between power and steering in a jet ski. This means that you can not control how fast you can stop or slow down.
When the engine of a jet ski is off, the vessel will continue to travel in the same direction regardless of which way the handlebars are turned.

It is important to know that it is illegal (in most states) to do any of the following:

Make sharp turns near another vessel
Jump another vessel’s wake within 100 feet of that or any other vessel
Follow a boat too closely
Chase another jet ski in small circles

Do any of the above could result in a serious or fatal accident.

Water Skiing Safety
In order to ensure that your water-skiing is as safe as possible, there are a few basic guidelines you should follow:

Always make sure that the body of water is large enough to accommodate skiing. The water should be tleast five feet deep and 2000-3000 feet long.
There must be enough room for all of the vessels on the water to have at least 100 feet of open space in all directions.
Be familiar with the body of water. Some will contain buoys, stumps, or pilings: be sure you know the locations of all these obstacles before you begin skiing. If you are not familiar with the location, ask someone who is.
You should generally avoid water-skiing either when wind is making the water choppy, or when rain is significantly decreasing visibility.
There should always be at least one person in the boat besides the driver; this person should keep an eye on the skier and alert the driver to any problems.
The skier should always be equipped with a well-fitted life-jacket, as should all the individuals on the boat.
If you are towing skiers, try to avoid crowded areas and other vessels. Be aware of how the wake generated by other boats might affect your skier.
Never ski or tow skiers at night or in conditions of poor visibility.
Know the basic set of hand gestures that have become conventional in skiing and are essential to maintaining good communication between the skier and the driver of the boat. Some of the basic hand gestures are as follows: an extended left hand is a request for a left turn; an extended right hand is a request for a right turn; a thumb pointed down is a request for a slower speed; a thumb pointed up is a request for a higher speed; a hand raised with the palm out is a request for the boat to stop; and a circle made with the index finger and thumb indicates that the skier is doing well.

For More Information on Water Safety visit: Safety Resource or the United States Power Squardruns

How Your Credit Score Affects Your Insurance Rate

2010-08-24T09:53:00.013-04:00

Credit scoring, the term used by insurance companies to rate your credit, has been a disaster for some consumers. Most insurance companies are now basing the cost of your insurance policy on your credit score. Missing as little as two payments on credit cards or other financial obligations could lead to your insurance premium possibly doubling. If your credit score is bad you could pay more when getting an insurance quote. And, regardless of the time you have been with your insurance company or your loss history, a low credit score could lead to a higher insurance premium or possible loss of your policy.

Many are asking, "What does one's credit rating or credit score have to do with their insurance policy premium or insurance quote?" The answer may surprise you. Insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road. According to his recent statement to CBS, Donald Hanson of the National Association of Independent Insurers agrees. Hanson stated, "Research indicates that people who manage their personal finances responsibly tend to manage other important aspects of their life with that same level of responsibility and that would include being responsible behind the wheel of their car or being responsible in maintaining their home." Some disagree with Hanson's ideas on insurance credit scoring and feel it creates a hardship for many who are already struggling.

What can I do to improve my score?
Credit scoring systems are complex and vary among creditors or insurance companies and for different types of credit or insurance. If one factor changes, your score may change — but improvement generally depends on how that factor relates to others the system considers. Only the business using the scoring knows what might improve your score under the particular model they use to evaluate your application.

Nevertheless, scoring models usually consider the following types of information in your credit report to help compute your credit score:

Have you paid your bills on time? You can count on payment history to be a significant factor. If your credit report indicates that you have paid bills late, had an account referred to collections, or declared bankruptcy, it is likely to affect your score negatively.
Are you maxed out? Many scoring systems evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, it’s likely to have a negative effect on your score.
How long have you had credit? Generally, scoring systems consider the length of your credit track record. An insufficient credit history may affect your score negatively, but factors like timely payments and low balances can offset that.
Have you applied for new credit lately? Many scoring systems consider whether you have applied for credit recently by looking at “inquiries” on your credit report. If you have applied for too many new accounts recently, it could have a negative effect on your score. Every inquiry isn’t counted: for example, inquiries by creditors who are monitoring your account or looking at credit reports to make “prescreened” credit offers are not considered liabilities.
How many credit accounts do you have and what kinds of accounts are they? Although it is generally considered a plus to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many scoring systems consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may have a negative effect on your credit score.

Improving your score significantly is likely to take some time, but it can be done. To improve your credit score under most systems, focus on paying your bills in a timely way, paying down any outstanding balances, and staying away from new debt.

For More Information Visit: About.com and FTC

Making Sure Your Home Is Properly Covered for a Disaster

2010-08-20T09:11:00.018-04:00

For many people, their home is their greatest asset. Yet studies show that 59 percent of today’s homes are underinsured by an average of 22 percent (according to Marshall & Swift). To protect their investment from disasters, homeowners should update their insurance regularly to include improvements, major purchases and increased rebuilding costs.

In particular, the cost of building or repairing a home has increased dramatically in recent years. According to the U.S. Census Bureau, homeowners spent over $218 billion on additions, alterations, maintenance and repairs in 2005, up from $201 billion in 2004. Materials like lumber, cement, gypsum and structural steel products have become scarcer, not only because of the devastation from last year’s storms, but also because of increased global demand. In fact, the cost of lumber climbed 6.1 percent in 2005, according to statistics from the U.S. Department of Labor.

To properly insure your home, it is important to ask your insurance agent or company representative four key questions.

1. Do I have enough insurance to rebuild my home?

Your policy needs to cover the cost of rebuilding your home at current construction costs. Unfortunately, some homeowners simply purchase enough insurance protection to satisfy their mortgage lender. Others confuse the real estate value of their home with what it would cost to rebuild it. Quite simply, you should have enough insurance to rebuild your home in the event that it is completely destroyed. Be sure to consider the following:

Replacement Cost
Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality.

Extended Replacement Cost
This type of policy provides additional insurance coverage of 20 percent or more over the limits in your policy, which can be critical if there is a widespread disaster that pushes up the cost of building materials and labor.

Inflation Guard
This coverage automatically adjusts the rebuilding costs of your home to reflect changes in construction costs. Find out if your policy includes this coverage or if you have to purchase it separately.

Ordinance or Law coverage
If your home is badly damaged, you may be required to rebuild it to meet new (and often stricter) building codes. Ordinance or law coverage pays a specific amount toward these costs.

Water Back-Up
This coverage insures your property for damage from sewer or drain back-up. Most insurers offer it as an add-on to a standard policy.

Flood Insurance
Standard home insurance policies provide coverage for disasters such as fire, lightning and hurricanes. They do not include coverage for flood (including flooding from a hurricane). Flood insurance is available through the federal government’s National Flood Insurance Program (www.floodsmart.gov), but can be purchased from the same agent or company representative who provides you with your home or renters insurance. Make sure to purchase flood insurance for the structure of your house, as well as for the contents. Excess Flood Protection, which provides higher limits of coverage than the NFIP in the event of catastrophic loss by flooding, is available from some insurers. Keep in mind that there is a 30-day waiting period before the insurance is valid.

2. Do I have enough insurance to replace all of my possessions?

Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of coverage on the structure of your home, you would be covered for $50,000 to $70,000 worth of the contents of your home, depending on the policy. Do an inventory of your home to determine if this is enough coverage for you.

You can insure your possessions in two ways: by their actual cash value or their replacement cost. Make sure you review with your agent or company representative which type of coverage is best for your particular situation.

Cash Value Policy
This coverage pays the cost of replacing your belongings minus depreciation.

Replacement Cost Policy
This coverage reimburses you for the full current cost of replacing your belongings.

3. Do I have enough coverage for additional living expenses?

Coverage for additional living expenses pays the extra costs of temporarily living away from your home if you can't live in it due to an insured disaster. It covers hotel bills, restaurant meals, transportation and other living expenses incurred while your home is inaccessible or being rebuilt. It is important to note that it covers only those expenses that are over and above your regular living expenses, so it would not cover your mortgage, or regular trips to the grocery store. 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.

Make sure you know exactly how much coverage you have for additional living expenses, and whether there is a time limit. If the standard coverage is not adequate, it can generally be increased for an additional premium.

4. Do I have enough insurance to protect my assets?

Although not a key element in disaster planning, it is also important to have adequate liability protection. This covers you against lawsuits for bodily injury or property damage that you or your family members may cause to other people. It also pays for damage caused by pets. Liability insurance pays for both the cost of defending you in court and for any damages a court rules you must pay—up to the limits of your policy. Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available.

It is important to purchase enough liability insurance to protect your assets. If the standard liability coverage in your homeowners policy is not sufficient, you may need an excess liability, or umbrella, policy, which provides additional coverage over and above what is covered in your home (and auto) insurance policy.

For more information visit: Insurance Information Institute (I.I.I)

Should You Purchase Renters Insurance?

2010-08-17T09:12:00.006-04:00

Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

There are two types of renters insurance policies you may purchase:

Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy

With either policy, you may want to consider purchasing a floater. A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

Visit Your Local Agent Today or Click HERE For a Free Renters Quote.
For More Information Visit: III, About.com and MSN Money Central

What to Know Before and After an Automobile Accident

2010-08-13T10:29:00.011-04:00

Although car accidents are more prevalent in the winter months, what you need to do after an accident never changes. Obviously it is hard to think clearly after a car accident so it is important to know before you get into an accident what to do first and what questions may need answered. This checklist will help you know what to do after a car accident. It is best to review it now and then print it out and keep a copy with you in your car.

Keep an Emergency Kit in Your Glove Compartment. Drivers should carry a cell phone, as well as pen and paper for taking notes, a disposable camera to take photos of the vehicles at the scene, and a card with information about medical allergies or conditions that may require special attention if there are serious injuries. Also, keep a list of contact numbers for law enforcement agencies handy.
Keep Safety First. Drivers involved in minor accidents with no serious injuries should move cars to the side of the road and out of the way of oncoming traffic. Leaving cars parked in the middle of the road or busy intersection can result in additional accidents and injuries. Make sure to turn on hazard lights and set out cones, flares or warning triangles if possible.
Exchange Information. After the accident, exchange the following information: name, address, phone number, insurance company, policy number, driver license number and license plate number for the driver and the owner of each vehicle. If the driver's name is different from the name of the insured, establish what the relationship is and take down the name and address for each individual. Also make a written description of each car, including year, make, model and color — and the exact location of the collision and how it happened. Finally, be polite but don't tell the other drivers or the police that the accident was your fault, even if you think it was.
Photograph and Document the Accident. Use your camera to document the damage to all the vehicles. Keep in mind that you want your photos to show the overall context of the accident so that you can make your case to a claims adjuster. If there were witnesses, try to get their contact information; they may be able to help you if the other drivers dispute your version of what happened.
File An Accident Report. Although law enforcement officers in many locations may not respond to accidents unless there are injuries, drivers should file a state vehicle accident report, which is available at police stations and often on the Department of Motor Vehicles Web site as a downloadable file. A police report often helps insurance companies speed up the claims process.
Know What Your Insurance Covers. The whole insurance process will be easier following your accident if you know the details of your coverage. For example, don't wait until after an accident to find out that your policy doesn't automatically cover costs for towing or a replacement rental car. Generally, for only a dollar or two extra each month, you can add coverage for rental car reimbursement, which provides a rental car for little or no money while your car is in the repair shop or if it is stolen. Check your policy for specifics.

And Then What?

The final question in dealing with an accident is usually who will pay for the damages? If the accident was minor, you and the other drivers may decide to handle the damages yourselves without the involvement of an insurance company. But this isn't always the best idea, for several reasons.

While the other driver may agree to pay for the damage to your car on the day of the accident, he may see the repair bills and decide it's too high. At this point, time has passed and your insurance company will have more difficulty piecing together the evidence if you file a claim.

Also, keep in mind that you have no way of knowing whether another driver will change his mind and report the accident to his insurance company. He may even claim injuries that weren't apparent at the scene of the accident. This means that your insurance company may end up paying him a hefty settlement, or worse yet, you could be dragged into a lawsuit. So make sure that your company has your version of what happened and check your policy — if the damages paid out by your insurance company are below a certain amount, the accident may not be considered chargeable. And you will avoid the penalty of a premium hike.

Auto accidents take a tremendous toll on everyone involved, both financially and emotionally. If you're one of the lucky ones who have thus far avoided a serious accident, hopefully the tips on prevention will help keep it that way. The chances are high, though, that at some point you will be involved in a minor accident. Just keep your head and make safety your primary concern. You'll have plenty of time to deal with the consequences later.

For more information visit: Edmunds and about.com
Also Watch I.I.I's Video on Steps to Take After an Auto Accident

How Do I Pick a Health Plan?

2010-08-10T13:14:00.006-04:00

Whether your employer gives you a choice of plans or you need to purchase your own coverage, it is crucial that you understand your health insurance choices and pick the insurance that is best for you and your family.
Here are some questions you should ask yourself when choosing a health insurance plan:

How affordable is the cost of care?
What is the monthly premium I will have to pay?
Should I try to insure most of my medical expenses or just the large ones?
What deductibles will I have to pay out-of-pocket before insurance starts to reimburse me?
After I have met my deductible, what percentage of my medical expenses are reimbursed?
How much less am I reimbursed if I use doctors outside the insurance company’s network?

Does the insurance plan cover the services I am likely to use?

Are the doctors, hospitals, laboratories and other medical providers that I use in the insurance company’s network?
If I want to use a doctor outside the network, will the plan permit it?
How easily can I change primary-care physicians if I want to?
Do I need to get permission before I see a medical specialist?
What are the procedures for getting care and being reimbursed in an emergency situation, both at home or out of town?
If I have a preexisting medical condition, will the plan cover it?
If I have a chronic condition such as asthma, cancer, AIDS or alcoholism, how will the plan treat it?
Are the prescription medicines that I use covered by the plan?
Does the plan reimburse alternative medical therapies such as acupuncture or chiropractic treatment?
Does the plan cover the costs of delivering a baby?

For a Free Health Insurance Quote Click HERE.
For More Information Visit: III

What is an Umbrella Policy and Should I Get One?

2010-08-06T09:57:00.015-04:00

What is Umbrella Insurance?
If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo 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 homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

If you meet any of the following criteria, you should consider obtaining Umbrella insurance:

You own property and/or have assets that are worth more than the liability limits covered by your basic policies, you may consider an umbrella or excess liability policy.
You have a high profile career or have sizeable earnings.
You are required to travel extensively.
You own a farm/ranch or waterfront property.
You live in affluent neighborhood.
You own an aircraft or watercraft.
You have a swimming pool in your premises.
You have frequent visitors.
You have one/more inexperienced, young drivers as protege.

What To Do Next?
Weigh the premium against the coverage, your assets, your risk of getting sued, what would happen if you got sued, and your other coverages. Then speak to your agent about whether this is the right policy for you.

For more information visit: III, LocalWin, and RV Dreams.

Ten Ways to Reduce Your Homeowners Insurance Premium

2010-08-03T09:10:00.010-04:00

Package Your Homeowner’s and Auto Policies Together
Many insurance companies give 5-15% discounts for customers who purchase insurance with them for both their home and auto.

Raise Your Deductible
Raising your deductible to the highest possible price you could pay should a loss occur could save you up to 37%. The higher the risk you assume, the less you will pay on your premium. When choosing the best deductible for you, please always be sure you can afford to pay your deductible should the need arise.

Typical deductible and discounts are approximately:

$500 – Save up to 12%
$1,000 – Save up to 24%
$2,500 – Save up to 30%
$5,000 – Save up to 37%

Make Your Home Disaster Resistant
If you own an older home, keeping its heating, pluming, roofing and electrical systems up-to-date will reduce your risk of water or fire damage. Find out from your insurance agent the best possible ways to make your home more resistant to natural disasters.

Establish Good Credit
By establishing and maintaining good credit, you will qualify for better rates. Keeping limits on credit cards low and always paying bills on time will improve credit scores.

Stay With the Same Insurance Company
By maintaining insurance with the same company for several years could qualify you for a 5-10% discount for long-term policy holders, depending upon the company.

Verify You Have the Correct Coverage Annually
Depending upon the valuables you have in your home, such as expensive jewelry and high-end computers, you may have requested additional coverage for such items. Always verify your coverage’s yearly to be sure you are not paying extra for items you either do not still own, or items that are not as valuable as they once were. You may want to cancel or reduce the amount of coverage you have on these items.

Check Around For Best Rate
When getting insurance quotes, always look around for the best rate. Be advised that though some quotes may be lower than others; always verify they have the correct coverage’s you need. Some companies will give you low premiums, with low coverage’s. Were you to have a total loss on your home, you want to be completely sure you have enough to rebuild completely should you need to.

Pay Electronically
Many companies now charge a mailing fee of up to $5 when sending out a customer’s bill. By making payments electronically, you will save yourself this charge and any additional fees they might add to mail out.

Be Sure Not To Include Land When Determining Coverage Amount
When obtaining homeowners insurance, do not include the value of land when deciding how much insurance coverage you want or need. Land is not considered in the rebuilding cost coverage’s as it will not be at risk from theft, fires, or any additional coverage’s included in your homeowners policy.

Purchase a Security System
By purchasing a security system for your home you could receive discounts for protection against fire and theft. Though these systems are often not cheap, over a period of time they could save you money. Always speak with your insurance agent about recommended systems, and how much you would save on your premium before making any purchases.

For more information visit: I.I.I, Financial Planning, and Money Central.

Do you need separate car rental insurance?

2010-07-30T15:18:00.019-04:00

Properly insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.

Before renting a car, you should always make two phone calls—one to your insurance company and another to the credit card company you will be using to pay for the rental car.

Insurance Company

Find out how much coverage you currently have on your own car. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for recreation and not for business.
If you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident.
Check to see whether your insurance company pays for administrative fees, loss of use or towing charges.

Credit Card Company

Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used. For instance, a platinum card may offer more insurance coverage than a gold card.
Credit cards usually cover only damage to or loss of the rented vehicle, not for other cars, personal belongings or the property of others. There may be no personal liability coverage for bodily injury or death claims.
To know exactly what type of insurance you have, call the toll-free number on the back of the card you will be using to rent the car. If you are depending on a credit card for insurance protection, ask the credit card company or bank to send you their coverage information in writing. In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.
If you have more than one credit card, consider calling each one to see which offers the best insurance protection.

At the Rental Car Counter
Since insurance is state regulated, the cost and coverage will vary from state to state. Consumers, however, can generally choose from the following coverages:

Loss Damage Waiver (LDW)

Also referred to as a collision damage waiver outside the U.S., an LDW is not technically an insurance product. LDWs do, however, relieve or “waive” renters of financial responsibility if their rental car is damaged or stolen.
Waivers, however, may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. If you already have comprehensive and collision coverage on your own car, check with your personal auto insurer to make sure you are not duplicating coverage you already have.

Liability Insurance

By law, rental companies must provide the state required amount of liability insurance. Generally, these amounts are low and do not provide much protection. If you have adequate amounts of liability protection on your own car, you may consider forgoing additional liability protection.
An umbrella liability policy, however, may be more cost-effective. Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners (or renters) liability policies to provide extra protection including accidents while driving your own car or one that you rent. These policies, usually sold in increments of a million dollars, cost as little as $200 to $300 annually for a million dollars worth of coverage and another $50 to $100 for each additional million.
Those who do not own their own car and are frequent car renters, can also consider purchasing a non-owner liability policy. This not only provides liability protection when you rent a car, but also when you borrow someone else’s car.

Personal Accident Insurance

Personal Accident Insurance offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance.

Personal Effects Coverage

This provides insurance protection for the theft of items in your car. If you have a homeowners or renters insurance policy that includes off-premises theft coverage, you are generally covered for theft of your belongings away from home, minus the deductible.
If you frequently travel with expensive items such as jewelry, cameras, musical equipment or sports equipment, it may be more cost-effective to purchase a personal articles floater under your homeowners or renters insurance policy. With such a floater, your valuable items are protected at home as well as while traveling anywhere in the world and the coverage is broader.

Other Things to Consider

States have minimum age requirements for renting a car and most major rental car companies refuse to rent a car to someone who is under 21 and in some cases under 25. In addition, some rental car companies now investigate your driving record and/or credit history so check with the rental car company before picking up the car.
If you are planning to rent a car abroad, contact both your insurance agent and travel agent to find out what you need to do to be properly insured. Those driving a rental car from the U.S. into Mexico may find it progressively more difficult to rent a car as U.S. rental car companies are increasingly concerned about the rising crime rates in that country.

Note: If you're renting a car abroad, you may need an international drivers license.

For more information visit: I.I.I

Swimming Pool Safety Tips

2010-07-27T09:39:00.021-04:00

Though swimming pools can be fun in the summer, each year about 260 children drown under the age of 5. Always keep a close watch on children even if they can swim. To protect your family always be sure to follow these tips:

Install physical barriers around the pool to limit access to children.
Fences and walls should be at least 4-feet high and installed completely around the pool.
Gates should be self-enclosed and self-latching. The latch should be out of reach of small children.
If your house forms one side of the barrier for the pool, doors leading from the house to the pool should be protected with alarms that sound when the doors are unexpectedly opened. Or use a power safety cover, a motor-powered barrier placed over the water area, to prevent access by young children.
For above-ground pools, steps and ladders to the pool should be secured or removed when the pool is not in use.
If a child is missing, always look in the pool first. Every second counts.
Knowing how to swim does not mean a child will not drown. Never use floatation devices as a subsitute for supervision.
Keep resuce equipment and a phone next to the pool
Learn CPR

Pool & Spa Entrapment Dangers

Never use a pool or spa with a missing or broken drain cover. Be sure a new and safe drain cover is in place. The new drain covers are usually domed-shaped instead of flat.
Consider installing a Safety Vacuum Release System (SVRS), a device that will automatically shut off a pump if a blockage is detected.
Have a professional regularly inspect you pool or spa for entrapment or entanglement hazards
Plainly mark the location of the electrical cut-off switch for the pool or spa pump.
If someone is entrapped against a drain, cut off the pump immediately, instead of trying to pull the person away from the drain and the person's body to break the seal.

For more information please visit www.cpsc.gov

Summer Camp Safety

2010-07-23T09:22:00.008-04:00

One-Minute Program Update
Specialty Human Services Division

During the summer many parents send their children to summer camp. Some basic issues for parents to consider in deciding which camp to select are:

Camp Certification – Is the camp certified by the ACA (American Camp Association)? Camps must meet high standards in order to achieve this designation. Refer to the ACA website for more information on what the ACA reviews when certifying a camp: http://www.acacamp.org/

Camp Safety Procedures - Has there ever been a death or serious injury? What training does the staff have? Do they have a nurse on staff? Does the camp have written health policies in place? How does the camp ensure that the staff follows these procedures?

If Your Child has Special Needs – Is a camp capable of handling:

ADD/ADHD
Physical Handicap(s)
Mental Handicap(s)
Food and/ or medication allergies
Behavioral Disorders
Problems with homesickness

Background Checks – Are all camp employees and volunteers required to undergo state and federal fingerprint checks? A concerned parent should ask the camp director how this is handled at their camp.

Activities the Camp Provides - Does the camp offer activities that your child could be injured participation in? Are there adequate safety procedures in place?

Rock Climbing walls
Ropes courses
Canoe Trips
Contact Sports

Summer camps are a great way for children to stay active and meet new friends. With a little planning, the adventure can be less stressful for everyone involved.

Great American Insurance Group, 580 Walnut Street, Cincinnati, OH 45202. The information presented in this publication is intended to provide guidance and is not intended as a legal interpretation of any federal, state or local laws, rules or regulations applicable to your business. The loss prevention information is provided is intended only to assist policyholders in the management of potential loss producing situations involving their premises and/or operations based on generally accepted safe practices. In providing such information Great American does not warrant that all potential hazards or conditions have been evaluated or can be controlled. It is not intended as an offer to write insurance for such conditions or exposures. The liability of Great American and its affiliated insurers is limited to the terms, limits and conditions of the insurance policies underwritten by it.

Tips to Protect Your Computer

2010-04-22T09:00:00.003-04:00

We at Elite Insurance take our internal network security very seriously to protect all of our companies sensitive information. When thinking of backups and security, sometimes things can get overwhelming to the average PC user. So Elite Technical Support decided to write the following article to give some simple tips on making your computing experience safer.

1.) Install a AntiVirus Product.

There are thousands of viruses out there, just waiting to infect your pc. It's estimated that nearly 30% of computers on the net today does not have a adequate antivirus product installed and up to date. Viruses can steal sensitive data (credit card numbers, emails etc...), crash your computer and at times even physically damage your computer.

There are many products available on the market but you don't have to spend a fortune to get protection. Microsoft has recently announced their new FREE antivirus solution which you can download from their website. Microsoft Security Essentials (click here to download).

2.) Do not use P2P File Sharing Software

Products like Limewire, Bearshear, Torrent or Kazaa seem to offer a great value on their downloadable content but it comes at a price. Most of the time, this content is embedded with viruses, bots and spyware. All of which can wreck havoc on your PC. There are benign uses for these products, but the common use is to "pirate" illegal content. So you can end up with a virus and a lawsuit... Don't do it! Hope that grabbed your attention!

3.) Schedule Automated Backups

We can't stress enough how important it is to schedule backups. Can you imagine getting hit by a virus, lighting strike, hard drive failure, etc... and losing all of your important documents, family photos, music and so on...

Backup! If the event every arises you be glad you did! Backing up isn't hard. In fact a few companies make it easy to backup all of your data offsite. So, even if your house burns down you can still recover your critical data.

We recommend Carbonite (click here for more information). You will install their software on your computer, choose what you want to backup, pick a time each day to start the backup and your done! Simple! Trust us, you will be glad you did! Their even offering a free trial!

4.) Perfect your browsing habits

Learning good browsing habits will be your knight is shining armor. Keep this in mind, usually you're not a winner (no matter what the advertisement said). Your long lost rich uncle in Siberia will not deposit the family fortune in your bank account ( no matter what his email said). If your credit card company send you a email asking you for your credit card number, then run away!

You must use your gut feeling. Anything that sets off a red flag in your head is a good indication that someone is trying to scam you.

5.) Install your Updates!

Last but not least, install your system updates! It is important to install all your system updates as they contain critical patches that can help your computer from getting infected or hacked. You should set this to automatically update but check at least once a month that your computer is updating properly.

Windows users (XP, Vista, 7) can click Start -> Control Panel -> Windows Update. There, depending on your version of windows, you will have options available to help you update your computer.

Apple users (OSX), can click the small apple logo at the top left corner of the screen then click "System Update". From there it will download the latest updates available for your computer.

We hope this article helped you. If you have any questions please feel free to leave a comment below!

Elite Insurance Blog

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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; www.iii.org

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PUBLICATIONS AVAILABLE AT III STORE AND AMAZON.COM 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

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FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org PUBLICATIONS AVAILABLE AT iii store AND amazon.com 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

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

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

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1. Trip Cancellation Insurance

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

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

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?

QUESTION # 4: AM I COVERED FOR FLOOD DAMAGE?

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

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

QUESTION # 7: AM I COVERED FOR EARTHQUAKE DAMAGE?

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?

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

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?

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?

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

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

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?

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?

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

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

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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

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1. The structure of your house

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

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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

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org

PUBLICATIONS AVAILABLE AT iii store AND amazon.com

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 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