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Is Your Maine Home in a Flood Zone?

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Recent changes proposed by FEMA have put flood insurance in Portland, Maine on the minds many. Every property is in a flood zone, and has the possibility of suffering flood damage. Some properties are in “special hazard zones”, which means that they are more susceptible to flood. Lenders usually require borrowers to buy flood insurance as a requirement of getting a mortgage for these properties.

If you’re wondering what flood zone your property is in, there is a free tool available at FreeFlood.net. It’s a database of the flood zones of 100 million U.S. addresses. Simply enter your address, and instantly see flood zone information, along with a “flood meter” reading.

Graphical Flood Zone Meter

If you’re buying a home or commercial property in Maine , this is a great tool to help you budget your property insurance costs. For more information about homeowners insurance, business insurance, or flood insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

Special thanks to Steve Anderson of Steve Anderson’s TechTips for introducing us to this useful tool. Steve’s blog is a great educational resource for Maine insurance agents like us.

Maine Workers’ Compensation Insurance Forecast and Recap

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The National Association of Insurance Commissioners (NAIC) recently released their annual report of  Workers’ Compensation results, and the picture isn’t pretty.

Payroll Reductions
Maine business insurance agents already know that their clients struggled to balance expenses with revenues reduced by the recession. Between layoffs, furloughs and attrition, reduced payrolls caused U.S. workers’ compensation premiums to drop 11.4% from 2008 to 2009.  While a slight reduction in rates caused some of that decrease, most of it was payroll-driven.
New England fared slightly better than average, with a 10.8% decrease. Our state actually did better than New England. Maine workers compensation insurance premiums were 10.2% lower in 2009 than 2008.

Workers Compensation Overall Premium Change, 2008 to 2009
click to enlarge map

Increased Losses
The workers’ compensation loss ratio (losses incurred to premium earned) increased nearly 7% in 2009. Although not uncommon during an economic recession, this is not a positive sign for the health of the workers’ comp insurance market. The New England states’ pure loss ratios were worse than average, at 73.1%.  Maine’s pure loss ratio was better than the New England average, but worse than the national average, at 70%.

Workers' Comp Pure Loss Ratios by State, 2009
Click to enlarge map

The Maine Workers’ Comp Forecast
Most insurance analysts believe that the workers’ comp market is in a precarious position. Relatively good loss ratios are deteriorating, and the uncertainty of national health care reform, medical cost increases, and employment and economic growth (or lack thereof) concern underwriters. The result may be upward pressure on Maine workers’ comp rates over the next few years. That’s bad news for employers.

If you have questions about your Maine workers comp experience modification, workplace safety, or workers’ compensation insurance in general, contact Noyes Hall & Allen Insurance at 207-799-5541.

Should I Buy Water / Sewer Line Coverage From My Water District?

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(Note: this post updated 2/28/17 to include information about sewer line coverage)

One of our Twitter followers recently asked us: “Do I need exterior sewer/septic line coverage per mailer from my water district?” Great question! Portland Water District offers a service plan through HomeServe, a national home contractor. Exterior water line coverage is $6.00 a month. Sewer line coverage is $8.00. If you buy both, it costs $168.00 per year. We think the water district’s interior plumbing coverage is a bad deal (for $120 a year).

“Off the shelf” homeowners policies don’t cover damage to exterior water and sewer lines. A few insurance companies are starting to offer it – at a fraction of the water district’s price. You might want to purchase this extra protection, depending upon your circumstance and risk tolerance.

(This post only relates to personal properties. Contact a Maine insurance agency for advice about business property insurance.)

3 Questions to Ask Yourself


1) What Repairs am I Repsonsible For vs. the Water District?
In the Portland Maine Water District, you are responsible for repairing damage to the water service line and sewer line on your property; the utility is responsible for water supply lines that lead to your property. Finding and repairing an underground pipe leak can be expensive.

2) What Pipe Damage Does My Homeowners Insurance Cover?
Water damage from burst or leaky interior plumbing is covered by most homeowners policies; repairs to the pipes themselves are not. Most homeowners policies do not cover water or sewer backup into a basement unless you buy special coverage. Water backup insurance is widely available in Maine.

Most Maine Homeowners insurance policies do not cover damage to water or sewer pipes beyond your foundation walls. Common causes of such damage are tree roots, wear and tear, and crushing by heavy equipment. For most home owners, this leaves a gap in coverage that the water district plan offers to help fill,  for an additional charge

3) What is the Cost vs. Benefit of Filling this Gap?
The Portland Maine Water District plan costs about $168 per year. Compare that the average Portland Maine homeowners insurance premium of $875. That’s an extra 19% cost.

3 Things to Know About the Utility’s Water Service Line Program

These plans vary from district to district. These comments relate only to the plan provided by Portland Maine Water District.

1) It is not insurance. It is a service plan offered by an independent, private provider. The water district markets it to their customers, and provides billing along with water and sewer bills. Although it uses terms like “deductible”,  “coverage”  and “exclusions”, the plan is not insurance; it promises to arrange for a contractor to repair your pipes, and guarantees their work for 1 year.

2) The plan covers repair or replacement costs up to $3,500 per water line service ($7,000 maximum per year), $5,000 per sewer line.

3) Water district plans exclude more perils than a homeowners policy, such as “acts of God” and “pre-existing conditions”. They also exclude “faulty construction/improper maintenance” and “reduction in performance caused by normal wear and tear”. Homeowners policies don’t cover those, either.

Should I Buy the Water District Plan or Not?

If you have  limited funds for emergencies, or want to avoid unexpected out-of-pocket expenses, the plan may be a good choice for you. For $168 a year, you’re avoiding up to a $3,500 expense (water line) or $5,000 repair (sewer). But realize that coverage is limited –  it contains exclusions, some of which seem to be open to broad interpretation.

The Bottom Line

The plan protects you from expenses not covered by most homeowners policies, but it does not protect you against all of the bad things that can happen to your underground pipes.

If you live in the Portland Water District service area (Portland, Westbrook, Gorham, Cape Elizabeth, Falmouth, Cumberland, Standish, North Windham, Peaks Island and other Casco Bay Islands), and your agent doesn’t provide this kind of information to you, maybe you’d like to work with a new agent.

For answers to your insurance questions, contact Noyes Hall & Allen Insurance at 207.799.5541.

What’s The Average Price of Maine Car Insurance?

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Do You Pay Too Much for Car Insurance?

 Are you getting the auto insurance discounts you deserve? How much does your neighbor pay? It’s not a common topic of friendly conversation, and there are so many factors at play, it’s hard to know.

Maine auto insurance rates are the lowest in the country, averaging $902 (Louisiana is the highest at $2,511). Of course those rates vary depending upon a lot of factors. Even with our comparatively low insurance rates, some Mainers pay many times the average.  

Traditional Factors Influencing Car Insurance Costs

  • Type, age and value of your vehicles.
  • Where you live and drive.
  • How you use the vehicles (pleasure, commute, business use).
  • Age and driving record of people who drive your vehicles (teenage drivers’ insurance rates are the highest).
  • What deductibles and liability limits you choose.

Those factors probably have about a 75% impact on your insurance rates, but other, newer factors can make the difference between getting a fair deal on your insurance and a great one.

To Get the Best Price on Auto Insurance:

  • Have an excellent insurance score (similar to a credit score – this can lower your premium by as much as 25%).
  • Own a home.
  • Combine your Maine Homeowners and Auto insurance with the same company.
  • Maintain your insurance without lapse. Lapses cost dearly.
  • Insure all your vehicles on the same policy.
  • Do business with a local Maine Independent Agent, who represents more than one company, and can shop to find the best deal for you.

Many other car insurance discounts may be available. Your agent, can ask you the right questions to make sure you get all the credit you deserve. Contact Noyes Hall & Allen Insurance at 207-799-5541 for a Maine auto insurance quote or get up to 4 comparison online car insurance quotes from our Quick Quote page.

The Case of the Lost Engagement Ring: Insurance Saves the Day!

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Did you read or see the TV news story about the couple’s engagement that went awry when the $9,000 diamond ring fell into the ocean on Cape Cod, and could not be found?

Insurance Saves the Day
The good news is that the groom’s mother had contacted her local insurance agent , and insured the ring – without his knowledge -the day he bought it.

The Lesson
Loss of jewelry (or a stone from a ring) is not covered by most Maine homeowners insurance policies, unless you buy specific coverage. Your Maine insurance agency may call this “scheduling your jewelry”. It’s not expensive: this ring would have cost less than $70 a year to insure.

Until it’s given, the ring belongs to the groom, and can be insured on his policy. It’s usually scheduled on the bride-to-be’s policy after she’s received it. If you’re not a homeowner, you can buy a Maine renters insurance policy and schedule the ring there.

If you have questions about insuring your property, Maine car insurance, or other ways to protect your assets, contact Noyes Hall & Allen Insurance at 207-799-5541.

Garage Fire Prevention – 3 Tips to Protect Your Home and Autos

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Two Southern Maine families were startled awake in the middle of the night by the smell of smoke, and the nightmare of a fire. Fortunately, no one was hurt in either case, but there was extensive damage to their properties. In each case, the fire started in a garage.

Fire damage is covered by Maine homeowners insurance. Damage to vehicles is not. To have vehicle damage covered, You need to purchase “other than collision” coverage on a Maine auto insurance policy. Hopefully, both of these families did have insurance to help them rebuild their homes and replace their vehicles. Of course, the best fire insurance is of all is prevention and avoidance. Here are a few tips to help prevent garage fires and to reduce damage if one should occur.

Fire Needs 3 Things to Exist
Fire  can not exist without oxygen, heat and fuel. If you can prevent those three from being together at the same time, you’ve greatly reduced your fire risk. Here are a few tips to help improve your chances.

Store Items Safely

  • Allow gasoline-powered tools to cool completely before putting them away. Store them a safe distance from combustibles. Remove remaining grass from mowers, line trimmers, etc. before storing them.
  • Never use grills, outdoor fryers, or any other cooking appliance in your garage.
  • Store combustibles away from any source of heat.
  • Use a metal cabinet with a closed door to store flammables like gasoline, wood finishes, spray paint or thinner.

Get Proper Safety Equipment

Fire Extinguisher
photo credit: www.usarak.army.mil

At a minimum, your garage should have a fire extinguisher. It’s also a good idea to have a smoke detector in the garage, especially if it’s attached to your home. Your town or city may have other codes or ordinances. Check with your local Code Enforcement Department.

Use Safe Workshop Practices

  • Sweep wood chips and sawdust immediately after cutting or sanding wood.
  • Seal paint cans and containers of finishes and solvents, and store them away from flammables, preferably in a metal cabinet.
  • Dispose of oily rags in a steel bucket with a closed lid. If you need to re-use them, you can also hang them on a line with good separation between them, far away from any heat source.

Does Your Maine Insurance Policy Cover Wind Damage?

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The National Weather Service confirmed on Thursday what many Mainers knew Wednesday night: tornadoes touched down in southern Maine, causing widespread damage. Our Maine insurance agents have been busy answering clients’ questions about damage ranging from fallen trees to wind damage – even lightning damage. Their first question, of course: “Does my insurance cover my windstorm damage?”

Whether you have Maine homeowners insurance, auto insurance, or business property insurance, the answer is usually “yes”, subject to the level of property coverage and deductible on your policy.

Windstorm Coverage in Maine
A tornado is just wind – vicious, frightening, powerful, damaging wind whirling in a funnel cloud. Many insurance policies cover wind damage to buildings or vehicles. It doesn’t matter if it’s caused by a gale, nor’easter, tropical storm,  hurricane, microburst or tornado. Some limited policies exclude wind damage – again, it doesn’t matter what kind of storm caused it.

Types of Wind and Storm Deductibles
Every property and auto policy has a deductible. On personal and commercial vehicle  insurance policies, wind is covered if you purchase “other than collision” (sometimes called “comprehensive”) coverage.  This coverage varies by vehicle.

Some property insurance policies have specific deductibles for wind. In Maine, it’s common to see these types of storm deductibles (from least to broadest insurance coverage):

  • “Wind Deductible” – Any wind damage is subject to a flat dollar deductible – usually a higher amount than your normal deductible,  or a percent of the amount of your property insurance.
  • “Named Storm Deductible” – Any damage caused by a storm that the National Hurricane Center has given a name is subject to a special deductible (see “wind deductible” above for some examples). Other wind damage is covered, subject to the regular policy deductible.
  • “Hurricane Deductible” – Any damage caused by a true hurricane is subject to the special deductible. Other wind damage is covered, subject to the regular policy deductible (usually a smaller deductible).

Insurance companies have different criteria for underwriting the peril of wind damage. A Maine independent insurance agency has access to many insurance companies, which gives you the most options.

We’re happy to answer your questions about property insurance for your home, auto or business. Contact Noyes Hall & Allen, or call us at 207-799-5541.

Maine Drivers: What’s Your “Third Number”?

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Every so often, a local news article like this one appears. Something goes wrong, and a Maine driver finds their vehicle in somebody’s living room – or bank lobby.

This accident happened right around the corner from our office. At noontime today, the damage was impressive: two large (and no doubt, expensive) glass walls were completely destroyed. Equally impressive was the speed of the repairs, which were in full swing. Fortunately, the bank was able to open today, so there was no “loss of income” suffered.

Hopefully, the driver of this vehicle had insurance. And hopefully, he paid attention to “the third number”.

The Third Number

Maine auto insurance policies provide liability coverage. Maine’s minimum liability limits are $50,000 per person and $100,000 per accident for Bodily Injury, and $25,000 for Property Damage. When you get a car insurance quote, the insurance company might quote those figures as “50/100/25”.

In the accident that happened last night, there was no Bodily Injury (thank goodness), only Property Damage. That means that the Third Number is what will pay for the damages.

I have no idea whether $25,000 would be enough to repair this building, but I wouldn’t want to find out the hard way. If a Maine driver doesn’t have enough insurance for the damage or injuries they cause, their assets are wide open to help pay for the other party’s loss. That’s why we never recommend buying State Minimum limits.

What’s Your Third Number?

When you get a Maine car insurance quote, pay attention to ALL the numbers, including the “Third Number” – your Property Damage limit.

For professional, personal insurance advice, call Noyes Hall & Allen at 799-5541. We’ll help you understand what you’re buying, and help you make informed choices to find insurance you can afford.

P.S. 

In the 6 years since we first posted this, lots of similar accidents have occurred. Just this week, the Press Herald Headline said “Young Driver Smashes Car into Scarborough Natural Food Store“. Our advice is just as relevant as ever.

Happy Retirement, Barbara!

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Friday marks the end of an era.

Barbara, who’s worked for Noyes Hall & Allen for the past 13 1/2 years, is retiring. For such a small woman, she made a huge impact in her long insurance career.

Over the years,  she issued 3,000 new policies, reported 5,000 insurance claims, and made  15,000 policy changes for her clients. But  Barbara’s impressive work ethic is not the reason why she was so popular among her clients. Clients don’t care what you know unless they know that you care – and Barbara cared.

Clients paid many unsolicited compliments to Barbara’s service, year after year. This one from a new client sums them up best:

“While on a business trip, I realized I needed to review my policy. I was met by Barbara with courtesy, good cheer, excellent listening skills and efficiency. I care in that order and am really surprised by the excellent customer service from your company. With employees like Barbara, I’ll be with your firm for a long time.”

Noyes Hall & Allen has so many long-term clients because we are fortunate to have experienced professionals who provide great service. Barbara was one of the best.

We wish Barbara a happy, healthy and long retirement. She deserves it!