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Sending Kids Off to College? Check Your Insurance!

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NoodleIf your house is like mine, you have random piles of clothing, boxes of ramen noodles and bedding all over the place, waiting to load into the car for the annual college move-in. Ours moves in this weekend. Let’s hope the weather cooperates!

College is one of the biggest expenses we parents face in our lifetimes. With finances so tight, it’s certainly not the time to find out that your Maine auto insurance policy doesn’t cover an accident or theft isn’t covered by your Maine homeowners insurance. Here are a few common scenarios, and how the policies our Maine insurance agency sell respond. YOUR policy may be different.

Maine Homeowners Insurance

 
 

 

  • Your kid’s “stuff”: Most home policies provide 10% of your personal property limit for belongings located at a residence other than the insured home. So, if you have $100,000 of contents coverage (“Coverage C” on your policy), $10,000 of it follows your student to school, if they live in a dormitory. Of course, the damage has to be caused by a peril covered by your policy.
    Certain items, like jewelry or expensive electronics, might need special coverage. Contact your agent to discuss these items.

    If your student leases an off-campus apartment, they should probably get their own renter’s insurance. Your local Maine insurance agent can tell you for sure.        
  •  Liability: Even brilliant students can do stupid or careless things. Luckily, your homeowners liability coverage follows them, as long as their permanent residence remains your home. But that general dorm damage bill you got for the discharged fire extinguishers: all yours, sorry. Damage to a rented property is not covered by homeowners policies. 

Car Insurance

Even though it’s tempting to remove your children from your Maine auto insurance policy to save money, it’s a bad idea. They still need coverage for times when they’re home, or if they borrow someone else’s car. Hey, it happens.

 

  • “You’re not taking that car to school”: If your child is away over 100 miles without a car, most insurers offer auto insurance discounts.
  • “But I need to have a car so I can (insert excuse here)”: Somewhere around second semester sophomore year -if not before- you’ll hear this. If you let them take one of your vehicles to school, make sure your insurer knows about it. Sure, you’ll pay more for insurance, but you won’t have to explain why your BU student was driving on Comm Ave on a Wednesday night. Awkward!
  • “So I borrowed Griz’ car…” Your student is covered under your policy as long as they remain a member of your household. The primary coverage for any accident comes from the owner’s insurance policy (if any). Yours would be secondary. Same thing applies if your child lends someone else your car (you just shuddered a little at that thought, didn’t you?)
  • Dean’s List pays: Just like high school, a “good student insurance discount” applies for kids who maintain a “B” average. Keep your agent posted to make sure you’re getting the discount.

For more information, contact your agent or company. Or, contact Noyes Hall & Allen Insurance at 207-799-5541. After all, we just gave you a bunch of free advice, didn’t we? And we’ve got kids to put through college too!

Thinking About Renting Out Your House?

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In the current real estate market, more and more of our clients are renting their homes instead of selling them. They hope that they'll make more profit by waiting. In the meantime, they're collecting rental income on the property.

Many people don't know that a rented home is no longer eligible for a homeowners policy. To properly insure your rented dwelling, you need to buy either a Dwelling Fire policy or a commercial policy.

The Risks of Renting
Rental property has a slightly higher risk of property loss, for several reasons:

  • Your tenants may not identify or report maintenance needs so that you can address them.
  • Renters are unlikely to have the same degree of "pride of ownership" as you.
  • Your renters may be unfamiliar with the systems and "quirks" of your home that are second nature to you. We've even seen losses where the tenant did not know how to shut off the water to stop an overflowing toilet!

Different Perils, Different Policy
As a homeowner, your policy covers your home and your belongings. When you rent out your home, your contents are typically limited to appliances you might leave behind for the tenants. Also, if your rented property is damaged, you could lose twice: the cost to repair the damage, and the rental income lost while your tenants can't live there.

Most important, renting your home increases your responsibility for injuries on the premises – anything from slips and falls to someone being hurt during a fire. This increases the importance of inspecting and maintaining your property.

Dwelling Fire and commercial policies can protect the building and rental income. Often, the coverage isn't quite as broad as your homeowners policy, but it still covers the catastrophic losses of fire, windstorm, collapse from ice or snow, etc.

Like homeowners policies, these policies do not cover flood or earthquake – although such coverage is available.

Considering Renting Your Home?

  • Call an agent for an insurance quote.
  • Consider higher deductibles and higher liability coverage than your current homeowners policy may have.
  • Check on your property regularly; hire a property manager if you can't.
  • Require your renters to buy tenants' insurance to protect their property and liability from their own negligence. Your policy will not provide coverage for either.

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

The $50,000 Tweet?

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Our May 29 post warned about the danger of being sued for damages caused by blog entries, tweets, or Facebook content. 

Today, Mashable reports on a Chicago Sun Times article about a real estate management company suing a tenant of one of its buildings. The May 12 tweet complained about the company's response to her allegations of mold in her apartment. The company was not amused, suing the woman for $50,000 in damages, claiming that she libeled them.

Make no mistake: it's expensive to respond to a lawsuit – let alone lose one. Let's hope that the woman had a homeowners or renters policy with optional "personal injury" coverage as we suggested in our original post. This coverage is NOT part of a standard homeowners policy, but can be added for about $15 or $20 per year.

For more information about personal insurance, contact Noyes Hall & Allen Insurance today.

Slips and Falls Can Be Costly. Protect Your Friends – and Yourself!

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Maybe it’s all the rain and snow we’ve had this year. Maybe it’s the economy . Maybe it’s the increase in ads for plaintiff attorneys. Whatever the cause, it seems we’ve seen an increase in slip-and-fall liability claims lately.

Our agency would normally see one or two slip-and-fall accidents in a 6-month period. This year, we’ve seen almost that many every month. On stairs and in parking lots, in retail stores and private homes, southern Mainers seem to be having trouble keeping their balance.

It’s possible that today’s higher unemployment rates have left fewer people with medical insurance available to pay for their emergency room visits and doctors’ treatments. With last winter’s heavy snow and this spring’s constant rain, surfaces have been especially slippery. Combine those factors with the power of suggestive advertising by plaintiff attorneys telling the public that “someone has GOT to pay”, and it may be logical that we have seen more slip-and-fall claims.

What can you do to protect your guests, yourself and your assets?

  • Maintain your property
  • Carry adequate liability insurance limits: equal to your net worth, or $500,000 for individuals and $1,000,000 for businesses – whichever is higher.
  • Report any injuries or incidents to your insurance agent.

For more information, call Noyes Hall & Allen Insurance.

Considering Reducing Insurance? Consult an Expert!

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In today’s economy, many people are re-evaluating their expenses to make sure they’re getting the most for their money. Insurance is no exception. The A.P’s Ieva Augstum’s article in today’s Sunday Telegram outlines the decisions some Americans are being forced to make, and the resulting consequences.

Information is Cheap
Some insurance sites make it tempting and easy to see how much money you can save by reducing coverage that you may think you don’t need. But information without advice can give the false appearance of value.

The Value of Advice
Insurance is a complicated business. There’s a reason why agents must pass a rigorous licensing exam to sell to the public, meet continuing education requirements to keep their license, and why agents who’ve already passed the exam study for many more years to earn designations like CPCU or CIC.


At Noyes Hall & Allen, we understand that the most workable insurance is the one you can afford. If you must cut costs, our agents can help you compare the risks you’ll assume with the premium savings. Then, you can customize your decision to your individual situation.


Easy Money

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Everyone’s looking to tighten up their budget these days. Many people prefer to  spread the cost of their insurance throughout the year by paying in monthly installments. But insurance companies charge an “installment charge” to cover the expense of sending those monthly bills, and to replace investment income they forgo by not collecting your premium up-front. The average “installment charge” is $5.00 per bill. That means if you pay your Maine auto insurance in monthly installments, you’re paying $50.00 or $60.00 extra a year.

Quick and Painless Savings

Instead of having the insurance company send you a bill, sign up for Electronic Funds Transfer (EFT) – automatic monthly withdrawal of your premium payments from your checking account. Most companies waive the installment charges completely for EFT customers. That saves you an extra $60.00, plus the cost of stamps, checks, and the time it takes to pay the bill.

Clients of our Maine insurance agency who are snowbirds or travel frequently love EFT. They don’t have to worry about bills being forwarded, or accumulating unpaid while they’re away.

One added benefit of EFT: no more risking cancellation notices by forgetting to pay your bill. Because your payments are automatically withdrawn, they arrive on time every month, without any action on your part.

For more information about insurance discounts, contact Noyes Hall & Allen Insurance at 207-799-5541.

Watch What You Say Online – and Protect Yourself Just in Case

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The internet: it’s not just for kids anymore. Almost 75% of Americans are now on the internet. Some people just surf the web and email, but more and more are participating in so-called “social media” like Facebook, Twitter and LinkedIn. And it’s not just kids. People 35-54 are the fastest-growing demographic on Facebook these days, (much to the chagrin of their children). Who knows how many blogs there are now? It seems that the world lost count somewhere after 60 million.

When Good Posts Go Bad
One thing about “social media” is that they are – well – social. Posts are called that for a reason: they’re publicly available for others to see. Blog posts and web site comments can range from informational to inflammatory, funny to foolish and ranting to R-Rated.

It’s not surprising that some postings have been accused of crossing the line – even relatively tame ones like the book reviewer sued for libel, or the blogger sued by a developer for defamation.

What if You’re Sued?
One question we’ve been asked is whether someone’s homeowners policy would protect them against such a suit. The answer is “it depends”. If your postings are purely personal – not on a business blog, and you purchased “personal injury” coverage, then you should have coverage against claims of libel, slander or defamation of character. Keep in mind that “personal injury” coverage is NOT part of a standard homeowners policy.

Hidden Value
Most people buy insurance thinking that it will pay for their legal damages because of liability of their actions. They’re right, of course. But even more important is the cost of legal representation that’s included in every homeowners policy.

Even a groundless suit can take many hours of attorneys’ time to resolve, and months of court resources. This can be more expensive than the actual damages awarded, depending on the circumstances. If you have a homeowners policy with personal injury coverage, you don’t have to worry about finding or paying for an attorney. Your insurance company takes care of that for you.

Of course, we don’t recommend conducting your online life in a reckless manner. But wouldn’t it be nice to know that if someone did accuse you of libel or defamation, your insurance would help you minimize the financial impact and stress?

Talk to a Maine insurance agent today about personal injury coverage.

 

Will Maine see a hurricane this year?

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June 1 is the traditional beginning of the Atlantic tropical storm season. The National Weather Service’s National Hurricane Center doesn’t openly issue long range seasonal forecasts, but that doesn’t stop other organizations, from Accuweather (which predicts 10 named Atlantic storms) to the Farmers’ Almanac (9) from doing so.

  • In the event of a hurricane watch/warning or tropical storm watch/warning, new coverage cannot be bound, nor coverage added or increased for existing policies providing property, inland marine or auto physical damage coverage.
  • Policies quoted and bound prior to the issuance of a watch or warning will be honored if coverage was scheduled to take effect during the watch/warning period.

Wind damage and flooding are the most common types of damage caused by tropical storms. Wind is covered by most standard policies, but flood is not. Flood insurance is a government program, sold by virtually any insurance agency,

including us

. The flood insurance program has a 30 day waiting period from the receipt of an application until coverage begins.

Although hurricanes hit New England much less often than southern coastal areas, we are not immune. Maine has been struck by 5 named storm, including 1991’s Bob.

Bottom line: the time to evaluate your insurance coverage is before a storm hits. Be assured that if a disaster does hit our area, Noyes Hall & Allen and the companies we represent are ready to respond quickly, professionally and effectively.


Go Green – Save Green on Insurance!

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It seems “green is the new black”. Motivated by the economy, environment, or popular culture, many of us are looking for ways to reduce waste and excess consumption.
Whether you’re trying to reduce your impact on the environment or your expenses, even your insurance choices can make a difference.

Now Save Money by Going Green!
Progressive Insurance just announced a 5% discount for the thousands of Maine policy holders who already receive their policies and bills electronically.

Of course, insurance is primarily about protecting assets. But there are ways you can protect the environment without sacrificing your own protection.

Greening Up Your Insurance:

Pay your bills by automatic withdrawal from your bank account (sometimes called electronic funds transfer or EFT). Most insurance companies now offer EFT. This saves you time, gas and postage, not to mention making sure you don’t miss any bills or payments. Even better, it helps the enviroment by eliminating paper and the energy required to print and deliver it.

Paperless Policy Distribution. Some insurance companies will email your policy to you instead of mailing it. This saves ink, paper, postage, and storage costs for both you and the insurance

company. How often do you really need to look at your policy anyway? Just print your insurance cards, and save the rest on your computer. Some insurance companies even share their savings by offering a discount for those who choose a paperless option. Progressive Insurance even planted over a quarter million trees last year – one tree for every customer who goes paperless!

Choose an agency that “works green”. Modern technology offers many ways to work in an environmentally friendly way. Can your agent email documents and handle financial transactions electronically? Do they use digital storage where available, printing items only when necessary? What organizations, events and charities do they support in the community?

Communicate with your agent via email. Email is a great way to share insurance information. It allows you to review correspondence, quotes and documents at your pace and convenience. As a bonus, it’s all archived. It also reduces mail time and costs. And you can save paper by choosing what you want to print – or not.

You don’t have to sacrifice top-notch local service or solid protection to make green choices. If you would like to try some of these earth-friendly insurance tactics, call Noyes Hall & Allen Insurance today!


Adventures in Car Insurance Shopping

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Let’s face it. No one shops for car insurance for fun. You’re getting your first car, moving off of someone else’s policy, combining coverage, moving to a new area, trying to improve your coverage – or save money.

Not only can it be a pain, but it can be confusing, too:

The Fallacy of The Caveman
Technology brings all sorts of information and power to the consumer quickly and easily. TV ads stress how fast and easy it is to get a quote. This is a great way to gather information before making a decision – and many consumers use it precisely this way. It’s not such a great way to buy insurance.

The danger is that getting your own quote turns you into your own insurance advisor. The computer will quote whatever you ask it to. Maybe you’ve entered all the information correctly; maybe not. Maybe your coverage is appropriate for your situation; maybe not.

Add to this the fact that not every company offers comparable limits and coverage, and it’s no wonder that shopping is confusing, and why some people report results like this:


Does anyone really believe that they’re getting the same coverage if they pay 10% of what they were before? For that matter, what does $162.00 insurance even cover?

Part of what you get when you consult an insurance agent (like us, for example) is advice on what to buy, and help comparing one company to another.

Check out this guy:

Just because you CAN get a car insurance quote in 15 minutes doesn’t mean you have to make your decision in that time frame! This guy couldn’t even wait for the company’s web site to come back up. Apparently price was his only consideration. But what did he buy? Does he really know that he got a good deal?
Insurance: Just a Promise
When you’re shopping, don’t forget that insurance is only a promise to pay in the event of a loss. Consulting a good local agent usually costs no more than doing it yourself – and an agent can help you decide what to buy, compare different proposals, and evaluate the insurance company behind the quote.
Our recommendation: Use the power and speed of the internet to do your research, but take your time, talk to others and choose wisely.