Halloween: Fun for Kids, Worries for Adults

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

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

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

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

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

Here are more safety tips:

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

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

For More Information Visit: Insurance Information Institute

Halloween: Fun for Kids, Worries for Adults

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

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

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

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

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

Here are more safety tips:

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

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

For More Information Visit: Insurance Information Institute

Winter Weather Preparation

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

Homeowners should take the following precautions:

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

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

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

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

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

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

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

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

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

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

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

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

For More Information Visit: Insurance Information Institute

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

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

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

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

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

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

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

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

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

Drivers should be aware of the following:

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

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

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

Drivers should take the following precautions:

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

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

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

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

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

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

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

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

FOR MORE INFORMATION ABOUT INSURANCE: WWW.III.ORG

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

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

Why Should I Consider Purchasing an Annuity?

Annuities can serve many useful purposes.

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

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

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

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

For More Information Visit: Insurance Information Institute

What Is In a Standard Homeowners Insurance Policy?

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

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

1. The structure of your house

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

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

2. Your personal belongings

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

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

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

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

3. Liability protection

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

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

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

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

4. Additional living expenses

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

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

For More Information Visit: Insurance Information Institute

Preparing an Effective Evacuation Plan

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

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

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

1. Arrange Your Evacuation Ahead of Time

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

2. Create a Home Inventory

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

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

3. Plan What to Take

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

4. Gather Important Documents

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

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

5. Take the Ten-Minute Challenge

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

The Following Video Provides Additional Tips

For More Information Visit: Insurance Information Institute