Author: Bob O'Brien

Should You Have a Personal Umbrella Policy?

Posted on by Bob O'Brien

Many financial advisors recommend personal umbrella coverage to protect your net worth and future earnings. The maximum liability limit offered by most home and auto insurers is $500,000. Even those with modest incomes can exceed $500,000 in net worth, as they pay off debt, accumulate retirement savings, or receive an inheritance.

Maine’s Wrongful Death Statute allows lawsuits up to $500,000 in addition to specific medical or property damages (update: as of 2023, Maine’s Wrongful Death Statute permits up to $1 million in damages, with automatic increases for inflation – even more reason to have an umbrella!) .

If you don’t have enough liability insurance, you could be forced to pay out of your own assets and future earnings. Also, when your insurance runs out, so does your coverage for legal costs.

What Is an Umbrella Policy?

Maine Personal Umbrella Insurance provides excess liability protection above your home, auto, boat, RV and other primary insurance. Umbrella policies are purchased in increments of $1 million. They may be added to a personal package policy or purchased separately on a “stand-alone” policy.

How Much Does Personal Umbrella Insurance Cost?

Maine Personal Umbrella policies are quite inexpensive – often less than $200 per year for $1 million in protection. Insurance companies can offer these low prices because they require you to maintain a certain amount of “underlying” coverage, usually $300,000 or $500,000. Insurers know that claims larger than that are rare, so umbrella policies are priced accordingly.

Personal umbrella insurance protects your assets against major lawsuits.

Can Someone Garnish My Wages?

Absolutely. If you don’t have enough assets to pay for a legal judgement, but you expect to work in the future, the court can garnish a percentage of every paycheck you receive until the debt is paid.

Could I Lose My Home or My Retirement Savings?

Courts don’t  like to force  someone to sell their primary residence to pay for legal judgement, but it does happen.

How Much Personal Umbrella Insurance Should I Buy?

Umbrella policies come in increments of $1 million. Many insurance companies sell up to $3 million, which is sufficient for many Americans. Higher limits are available, however, for those who need extra protection.

For more information about personal umbrella insurance in Maine, contact Noyes Hall & Allen at 207-799-5541. We would be happy to help you decide if an umbrella policy is right for you.

Does Maine Auto Insurance Automatically Cover a New Vehicle?

Posted on by Bob O'Brien

Does Maine personal auto insurance automatically cover a new vehicle? Many clients wonder about this when they purchase a new car on the weekend or after work, when their agents’ office is closed. 

The answer varies, but most preferred auto insurance companies in Maine  automatically cover a new vehicle if you have an existing policy.

Most companies that sell insurance through a Maine Trusted Choice Independent Insurance Agent like Noyes Hall & Allen use policy forms written by Insurance Services Office (ISO). This infographic outlines the automatic coverage for new vehicles in an ISO Personal Auto Policy. Your policy may be different. Check with your agent if you’re not sure.

Does Auto Insurance Automatically Cover a New Vehicle in Maine?

Your Policy May NOT Automatically Cover a New Vehicle

This information is for personal auto policies only. Most commercial insurance policies do not automatically cover new vehicles. Be sure to check with your business insurance agent if you’re buying a new vehicle for your business or organization.

Many Maine insurers don’t use ISO forms, even for personal policies. These include Progressive, State Farm, Allstate and GEICO. If you’re insured by one of those companies, call your insurer to find out how they treat new autos.

For example, Progressive’s auto policy appears to match coverage to the old vehicle when you’re replacing a car. If you replaced an old vehicle that didn’t have collision coverage, the new vehicle won’t be covered for collision until you notify Progressive. GEICO’s auto policy appears to have the same restriction. State Farm’s policy doesn’t appear to distinguish between an additional vehicle and one that replaces a vehicle on the policy.

What Info Your Agent Needs

If you’re planning to pick up a new vehicle outside business hours, check with your insurance company or agent. For answers to these and other insurance questions, contact Noyes Hall & Allen in South Portland Maine.

If you’re already a Noyes Hall & Allen client, you can notify us about vehicle changes from our Client Center, or use the links below to text or email photos of your VIN and lender or lease information.

We’re independent and committed to you.

Link: Send email to NH+A

Link: Send text to NH+A

Data Breach! Protect Your Maine Business With Cyber Liability Insurance

Posted on by Bob O'Brien

 

Every week we hear news of another household brand name suffering a data breach. Hannaford, Target, TJ Maxx, Shaw’s, Home Depot…the list goes on.

But local businesses are not immune from hacking. Many Maine small businesses – and their customers – were shocked recently to hear about a breach at two Portland, Maine locations of Otto Pizza, a local favorite.

Otto Pizza responded to the breach candidly, and with personal comments that struck at the heart of any local business owner:

Quote from Otto Pizza about theft of their customers' data

Cyber attacks are a constant threat to your Maine office, retail store or professional practice. You no longer have to be a “big fish” to be a target. Hackers, phishers and the like are always looking for low-hanging fruit in the form of networks with poor security. After beefing up your security, you should insure your Maine business against data breach in case it does happen.

How Do Data Breaches Happen?

Some common scenarios that can lead to data breach in your business or professional practice:

  • Unauthorized access – hackers gain access to your POS system or computer network.
  • Theft of Computers – Someone steals your laptop, backup data or server that holds customer or employee personal information.
  • Improper Disposal of client or patient records.
  • Human Error – your bookkeeper mixes up 1099 forms and mails them in the wrong envelopes, exposing personal information to others.

 

Sobering Data Breach Statistics

 

infographic: Statistics about business data breaches

 

 

 What Does Data Breach Cyber Liability Insurance Pay For?

What does Cyber Liability Insurance pay for?

Cost of Maine Cyber Liability Insurance

Data breach protection is a surprisingly affordable addition to most Maine small business insurance portfolios. Coverage for basic limits such as $10,000 first party and $25,000 third party are available for premiums as low as $150 per year.

What to Do in Case of a Data Breach at Your Business

  1. Notify the police immediately
  2. Report the breach to your business insurance agent or company
  3. Take all steps to protect any confidential data remaining in your control.
  4. Preserve all evidence of the breach itself.

For answers to your Maine business insurance questions, including data breach and cyber liability insurance, contact a Noyes Hall & Allen agent in South Portland at 207-799-5541. We represent many insurance companies so we can help you find the best insurance fit for your business and budget. We’re independent and committed to you.

FMI:

Payment Card Security Standards

CyberRisk 2014 White Paper by Insurance Information Institute

Does Your Home Insurance Cover Short Term Rental?

Posted on by Bob O'Brien

From Portland to Cape Elizabeth, Pine Point to Sebago Lake, peer-to-peer rental services are very popular in Maine. Recent articles in the Portland Phoenix and Portland Press Herald suggest that the practice is increasing. Does renting your Portland Maine area home, apartment or condo via a short term rental service like AirBNB, HomeAway or VRBO affect your insurance? You bet!

rentme

You’ll Have Almost No Coverage for Your Stuff – Ever!

If you regularly rent your home or part of it, most Maine homeowners insurance policies limit coverage for your personal property (stuff) to $2,500 per unit. If your place burns down, or is damaged by a storm, you’ll have very little insurance coverage to replace  your belongings, furnishings, appliances, clothing, sporting goods or tools.

Even worse news: your home doesn’t have to be rented at the time. It only has to be “regularly rented or held for rental”. Does listing your home on a website with a calendar of availability make it “regularly held for rental”? The insurance company might say so.

You May Have No Liability Protection Either

Do you rent your entire home more than “occasionally”? If so, you have no liability coverage on your homeowners policy. What’s occasionally, you ask? The policy doesn’t define that. Nervous yet?

Do you rent part of your home or condo to someone who brings more than 2 others? Homeowners insurance policies exclude liability coverage completely. If your tenant or their guest gets hurt, who do you think they’ll expect to pay their medical bills, lost wages and pain & suffering? Even if you aren’t at fault, you might have to hire a lawyer to defend you.

Does the Peer-to-Peer Network Protect You?

We haven’t seen any insurance agreement that covers you where your homeowners, renters or condo policy does not. We have seen one that completely replaces a homeowners policy with a commercial insurance policy, at a higher cost. If you rely on protection from the peer-to-peer site, we recommend that you read their insurance contract very, very carefully.

Can Your Insurance Company Cancel Your Homeowners Policy if You Rent Your Property?

Many insurance companies believe that their ordinary homeowner’s insurance rates are insufficient to pay losses resulting from renting your home. They may ask you to stop renting or to make changes in your home. If you fail to comply, they may cancel your policy. That may tempt you to not tell your insurer about your rental income, and hope for the best. That’s taking a big risk.

We recommend that you talk to your Portland area insurance agent before you rent your home. They can discuss options for properly insuring you against catastrophic loss. It may cost a bit more, but at least you’ll know you have coverage.

For more information about Portland Maine homeowners, condo or renters insurance, contact Noyes Hall & Allen at 207-799-5541.

Party Time! Does Maine Homeowners Insurance Cover Renting a Hall?

Posted on by Bob O'Brien

 

It’s party season in Maine. Many of our clients will host a Bar Mitzvah, wedding, baby shower, reception, anniversary party, memorial service, graduation party, or fund raiser. They’ll rent a church hall, function hall, camp, country club, college or city building. And, they’ll call us for insurance advice.

The Good News: You’re Covered!

If you bought  homeowners, condo or renters insurance from Noyes Hall & Allen, your policy says:

6. “Insured location” means:
h. Any part of a premises occasionally rented to
an “insured” for other than “business” use.

Those terms in quotations are defined in your insurance policy. If your policy has your name on it, you’re an “insured”. If you’re not profiting from the function, it’s not a “business”.

Boom! Your Noyes Hall & Allen homeowners policy covers your liability from the function and the hall rental.

The Function Hall Should NOT Want to Be an Additional Insured

Every venue should have a rental contract. Most  contain “hold harmless” clauses. That means you agree to be responsible for what happens while you’re renting the premises. Scary? Maybe, but unless you want to have everyone at your house, you don’t have much choice.

Some venues ask to be an “additional insured” on your homeowners insurance policy. Additional insureds are common on Maine business insurance policies. That makes sense, since businesses operate various activities in many locations. It’s not the same on a personal policy.

That Word

The Additional Insured form on a homeowners insurance policy (HO 04 41) is different. It limits “insured” status to others to your home. In other words, it’s useless in a case where you’re renting a function room. No homeowners insurer that we are aware of allows “additional insured” status for cases like this.

Also, remember the “business” exclusion on the homeowners policy? That applies to all “insureds”. So your homeowners policy excludes the owner of the function hall from coverage as an insured anyway.

A function hall shouldn’t ask you to list them as an “additional insured”. Tell them we said so.

Let’s Keep it Simple

Your Maine homeowners insurance is a broad and powerful tool. It protects and defends you against injury and damage you’re liable for. That includes liability you assume by a contract.

You signed a rental contract for the hall. You agreed to hold the owners harmless for what happens during your function. If someone sues the owners for an accident at your function, they will turn that lawsuit over to the responsible one: you. And, your homeowners insurance will protect and defend you.

This is all INCLUDED in the homeowners, renters or condominium insurance policy you already have. You should only need to prove to the hall that you have insurance. Call us, and we can do that for you.

What About Liquor Liability?

Homeowners policies cover you for what happens on the premises. They exclude liability from auto accidents. Look to an auto insurance policy first for that coverage. The driver’s auto insurance would protect you AND them. If the driver doesn’t have enough insurance, your own Maine auto insurance should also protect and defend you. The coverage and damages can vary greatly depending upon individual circumstances. Talk to your Maine insurance agent for individual advice.

Pro Tip: Hire a professional bartender. They’re trained to recognize when someone has reached their limit. Ask them for a certificate of liability insurance. Mingle with your guests and enjoy your party, instead of stressing out!

Do I Need Wedding Insurance?

Wedding insurance is a different product. It covers the additional costs created if your venue closes, your photographer or band cancels, or some other calamity happens. That’s different that the liability issue we’ve been discussing.

If you live in the Portland Maine area and have questions about renting a hall, wedding insurance, or other insurance questions, contact a Noyes Hall & Allen Insurance agent at 207-799-5541. Noyes Hall & Allen represents many of Maine’s preferred insurance companies, and offers choice and professional advice. We’re independent and committed to you.

Should a Portland, Maine Landlord Require Renters Insurance?

Posted on by Bob O'Brien

 

Many Portland, Maine landlords make their tenants purchase renters insurance when leasing an apartment or condo. This is a smart idea for both parties, for many reasons.

Why Should a Landlord Require Renters Insurance?

Protects the Landlord’s Assets

Renters insurance (HO-4 in insurance jargon) is the best way to protect a property owner’s assets from the risks of their tenants’ activities. It protects the landlord in 2 important ways:

  • Insulates the landlord from tenants’ liability. If your tenant leaves something on the stairway that causes someone to fall and get hurt, it’s the tenant’s fault. A tenant without insurance makes you an easier target for a lawsuit, because you have more assets (and insurance). Renters insurance insulates you because it pays your tenant’s legal defense costs and damages.
  • Covers Tenants’ Belongings. Many renters ask “does my landlord’s insurance cover my stuff?” They’re shocked to learn that it does not. They think that if there’s a fire, theft or leaky pipe, their landlord’s insurance will pay to replace their stuff. It won’t. Smart property owners make tenants buy renters insurance to avoid these disputes and disappointments.

It’s Another Way to Screen Tenants

Most responsible Portland Maine landlords run credit checks on prospective tenants, and check their references. This protects them and other building tenants from the harm and nuisance of undesirable renters. Requiring renters insurance is another way to screen out bad tenants.

If a prospective tenant balks at buying insurance to protect their own assets, how will they treat YOUR property? If they say they can’t afford $10-15 per month for insurance, perhaps they’re not going to pay their rent on time, either.

Should a Landlord be an Additional Insured on a Tenant’s Renters Policy?

NO!

Some Maine landlords or property managers ask tenants to add them as an Additional Insured on their renters insurance policy. They believe that it provides more insurance to them and notifies them if the tenant cancels their insurance. Don’t do it!

Why an apartment or condo landlord should NOT be an Additional Insured on their tenant’s policy.

  1. Most insurance companies won’t do it. Listing landlords  as “additional insured” is common on commercial insurance policies. But personal insurance companies frown upon it. Commercial insurers also readily provide a “certificate of liability insurance” to landlords. Personal insurance underwriters usually refuse.
    Personal insurance companies use the Additional Insured endorsement when the “named insured”  and another party are related (e.g. co-owners). An insurer defends and pays for an  Additional Insured’s liability  from “ownership, maintenance or use of the residence premises”.  They would accept this scope of responsibility for co-owners of a property, but not landlords.
  2. It’s unnecessary if you have a lease. Tenants policies extend liability coverage for duties a tenant assumes via contract before the occurrence. If the lease contains a “hold harmless” clause in which the tenant waives rights of subrogation against the landlord, the tenant’s policy will pay, and the tenant’s insurer will not attempt recovery from the landlord.
  3. There’s a better way to notify you if your tenant’s policy cancels. It’s called Additional INTEREST Endorsement. This meets the needs of landlords, and maintains the integrity of  landlord/tenant responsibilities.

Recap

Portland Maine landlords, property managers, and property owners who rent apartments or condominiums to others should require tenants to purchase renters insurance, and ask to be named as an additional interest (NOT additional insured).

If you rent a home, apartment or condo to others, or own other residential rental property, and have questions about Portland, Maine business property insurance, contact a Noyes Hall & Allen Insurance agent at 207-799-5541. If you need renters insurance, contact us for a Portland Maine renters insurance quote.

How to Choose Uninsured / Underinsured Motorist Limits in Maine

Posted on by Bob O'Brien

Uninsured_drivers_by_state
Click to enlarge

Almost every state in the U.S. requires drivers to have car insurance. Like every other law, there are always some people who choose to ignore or disobey it.

The good news: if you are in a crash in Maine, the other driver probably has insurance. Maine is in the Top 10 states for percentage of insured drivers.

The bad news: many Maine drivers carry very low liability limits – as low as $50,000 per person. After an accident, your medical expenses can easily exceed that.

What if the Other Driver Doesn’t Have Enough Insurance to Pay My Damages?

It’s great if the at-fault driver has insurance. Do they have enough insurance to pay your damages? Who knows? At 50/100/25, Maine’s minimum auto liability insurance limits are among the highest in the country. But if you drive a late-model car, $25,000 isn’t going to replace it. If you are badly injured, you can accumulate $50,000 in medical bills in one day. You need to protect yourself.

What Happens if Someone Hits Me and They Don’t Have Insurance?

If an uninsured driver hits you, you have to rely on your own Maine auto insurance. Your collision coverage (if you purchased that option) will pay to repair your vehicle. If you don’t carry collision insurance, you’ll have to deal with the damages on your own. Some other states offer “uninsured motorist physical damage” coverage. Maine does not.

What is Uninsured Motorist Coverage (UM)?

In Maine, Uninsured Motorist coverage is bodily injury coverage only. It protects you and the people in your vehicle by acting as if the person who hit you had the same liability limits you have. UM limits always match your policy’s liability limits. That’s another reason we say don’t cheap out when you choose your liability insurance limit.

Let’s say you’re driving in Portland, Maine. You have Uninsured Motorist coverage with Maine state minimum liability limits of $50/$100. Someone runs a red light and broadsides you. Your daughter goes to the hospital with broken bones and internal injuries. You were not injured as badly. After an ambulance ride, the hospital releases you with minor injuries. Your daughter’s medical expenses are $75,000, and yours are $2,500. In this scenario, you would have to pay $25,000 of your daughter’s medical bills ($75,000 – $50,000) out of pocket. If you had chosen a $300,000 combined single limit, all medical expenses would have been covered 100%.

What is Underinsured Motorist Coverage (UIM)?

Underinsured motorist coverage applies when someone has insurance, but not enough to pay for your injuries. Like Uninsured Motorist coverage, it pretends that the person who hit you had the same limits as you do.

Let’s assume the same accident scenario as above, except the at-fault driver did have insurance with Maine minimum limits of $50/$100. Their insurance wouldn’t be sufficient to pay for your daughter’s medical bills.

If you also had $50/$100 limits, you would still be out of luck. You didn’t buy any more insurance than the person who hit you did. But, if you had chosen a $300,000 limit, your UIM coverage would pay up to $250,000 per person, the difference between your insurance limit and theirs.

Danger: Uninsured Drivers in Vacationland

Although most Maine drivers are insured, remember that tourism is Maine’s largest industry. Visitors from other states are constantly driving among us. They’re in unfamiliar territory, and distracted by Maine’s natural beauty. They’re trying to follow GPS directions. Perfect scenario for an accident, right? Depending on the state they’re from, there’s almost a 25% chance that they have no insurance. So, pay attention to your Uninsured / Underinsured Motorist coverage limit.

What Liability and Uninsured / Underinsured Motorist Limit Should You Choose?

Everyone’s situation is unique. We recommend discussing your situation with a Trusted Choice Independent Insurance Agent. If you live in Greater Portland, contact a Noyes Hall & Allen agent at 207-799-5541 for a custom review of your insurance and your options. We represent most of Maine’s preferred insurance companies, and can help you choose the one that best meets your needs.

Insuring College Students

Posted on by Bob O'Brien

Insuring college students may not be top of mind if you’re sending a one of your kids off to school. Your household is probably buzzing with activity and emotion. If your student is a freshman, there’s the added anxiety of doing it for the first time.

Insuring college students doesn't have to be expensive. You may already have what you need.

Many clients ask our Maine insurance agency these questions about insurance for college students:

Insuring College Students’ Property

Does your homeowners insurance cover a college student? Generally, yes. If they’re living in college housing, they’re still considered part of your household. Your homeowners policy covers their books, clothes, jewelry, electronics and other property. Even their liability.

What if you have a condo or renters insurance policy? Still covered. Remember, the coverage limitations your policy has for jewelry and money apply to your kids away at school, too.

What if your student does not live in college housing? Coverage can vary greatly in these situations. Consult your agent.

Insuring College Students for a “Semester Abroad”

If your student is still a household member, your policy covers their belongings anywhere. Even overseas. Liability is a little trickier. If they accidentally damage property or injure someone, your homeowners policy defends any suit brought in the U.S.

Need broader protection? Some personal umbrella policies will also defend against worldwide liability suits. This is another great reason to buy Maine personal umbrella insurance.

International car insurance? You’re out of luck there. NO US auto policies cover outside of the country, it’s territories and Canada. If your student is driving in a foreign country, make other insurance arrangements there.

Car Insurance for College Students

If your child still lives at home when not in school, they’re covered under you auto insurance. That includes if they’re injured by an uninsured driver, whether they’re driving, walking, cycling or a passenger.

If your child is not taking a car to school, you may get an auto insurance discount. The school must be more than 100 miles away from your home.

Don’t forget to ask your agent about the “good student discount” on auto insurance and other car insurance discounts.

Insuring College Students Medical Bills

Noyes Hall & Allen does not sell medical insurance, so we are not experts on this topic. Ask your medical insurance provider for their advice. If your family has no insurance coverage, then it may be a good idea to buy the college’s plan.

Have questions about Maine auto insurance, personal umbrella insurance or homeowners insurance? Contact Noyes Hall & Allen Insurance at 207-799-5541. As a locally owned Trusted Choice independent insurance agency, We represent many of Maine’s best insurance companies. We offer choice as well as professional advice. We’re independent and committed to you.

Marriage, Divorce and Maine Home + Auto Insurance

Posted on by Bob O'Brien

On November 6, 2012, Maine voters approved citizen initiative Question One, allowing same sex marriage. Yes on One proponents claimed that only marriage, granted LGBTQ couples equality with everyone else. No on One proponents were concerned that a change in the traditional definition of marriage as “one woman, one man” might affect many aspects of life.

How Important is Marriage in Insurance?

In a word, VERY.

Most people justifiably think medical insurance is the type most affected by marriage. That’s where most of the public discussion is, too. But Maine homeowners and auto insurance contracts also treat spouses very differently than other people.

How does being married affect your Maine home and auto insurance?  Let’s look at the most common insurance forms in Maine, ISO homeowners and auto policies. Although they are industry standards, your policy form may be different. Check with your own agent to be sure.

What Happens to Your Homeowners Insurance When you Get Married?

Spouses who reside in the same household are automatically defined as “YOU”. In insurance, it’s good to be YOU.

On most policies, an INSURED is defined as:

  • YOU;
  • your resident relatives;
  • full time students who are < 24 and your relatives, and lived with you prior to moving out; and
  • certain other minors in your care.

Are unmarried couples INSUREDS or not? To answer that, we have to ask the grammatically incorrect question, “who is YOU?”

“YOU” is defined as:

  • The Named Insured, as shown on the front page of the policy (called the Declarations);
  • That person’s spouse if they are a resident of the same household.
If both partners’ names appear on the policy they’re both YOU. But what if one unmarried partner’s name isn’t on the policy? They’re not an INSURED! What if your partner bought the house and you moved in later? Sorry, you’re not an insured. 

What if you were married instead?

Married couples are both YOUs as long as they live in the same household. Even if both names are not on the policy. Pretty important, don’t you think?
Let’s say you move in with someone who already owned a home. In this common situation, being married is the difference between having insurance for your property and protection from lawsuits and having none at all!
Of course, this example applies to any couples, straight or gay.

How Marriage Affects Auto Insurance

The definition of YOU in the auto policy is quite similar. It includes the Named Insured and a spouse who is a resident of the household. One additional benefit of being married: your interest in the policy transfers to a surviving resident spouse upon your death.

Warning!

You probably noticed that a spouse must be a resident of the same household to have all of these benefits. If you separate, your status changes. Divorce affects your homeowners and auto insurance, too.

It’s important that you contact your Maine insurance agent to talk about these situations. They can help you make sure that you remain insured, one way or another.

If you live in Southern Maine and are looking for an Portland Maine area independent insurance agency that can answer these and other insurance  questions, call Noyes Hall & Allen at 207-799.-5541.

When Should You Change Insurance Companies?

Posted on by Bob O'Brien

Is it time to shop insurance or change insurance companies? No one enjoys doing it, but sometimes it’s necessary. When is it smart to change insurance companies? How much savings is enough to make a switch?

When you shop insurance or change insurance companies, compare cost, savings and risk.

We’ve all thought it:

“My homeowners insurance bill went up again!”

“I’m paying too much for car insurance!”

“I need to cut my business insurance costs!”

“My insurance company wants me to repair my house, and I don’t have the money!”

What’s the Threshold to Change Insurance Companies?

Everyone’s different. Some clients choose to stay with their current insurer in spite of $300 savings per year for similar coverage. Others want to switch insurance companies to save a fraction of that, and with a higher deductible. Neither is right or wrong. It depends on your risk tolerance and price sensitivity.

Can Your Agent Shop Insurance For You?

Does your insurance agent represent more than one company? One reason people choose Noyes Hall & Allen, a Portland Maine Independent Insurance Agency is that we represent several insurance companies. This offers you the ability to shop and change insurance companies without having to start a whole new  relationship.

Because we represent so many insurers, we have a good handle on market conditions. We review most policy renewals every year. If we question whether a policy remains competitive, we compare options.

That usually happens in one of three scenarios:

  • Excessive Price Increase – the premium increases by more than the current market rate change percentage.
  • You’ve been with one insurer for many years – Even if you never had an excessive premium increase, your rates can creep above the market over the years. We can check options to make sure that your current insurance company is still the best value for you.
  • New company or coverage options – Once in a while, a new insurance company enters the market, or an existing company offers an important new coverage that you don’t currently have. That might cause us to compare options and present them to you.

 Related Post: When a Great Car Insurance Quote Isn’t

Changing Insurance Companies: Savings

Changing insurance companies is not to be done lightly. You can save money, but there are costs and risks to consider, too. If the savings outweigh the risks, maybe it’s time to change insurance companies. We can help you evaluate that.

Saving Money When You Change Insurance Companies

It’s easy to measure savings – or is it?

Insurance is a competitive business. Companies compete on price, coverage and service. You may find savings of $300 per year. Is that for similar coverage – or does it transfer more risk to you? An insurance agent can tell you the difference.

  • Compare “apples to apples” as close as possible.
  • Check liability limits, property deductibles, and type of coverage.
  • Consult an insurance agent to help you review quotes. A good agent will tell you if their program is not the best for you. Pay attention to their answer.

Costs to Change Insurance Companies

How much is an hour of your free time worth? It can easily take 3 -5 hours to switch insurance. You have to:

  1. Research insurance companies,
  2. Choose one (or more) to get quotes from
  3. Provide information for quotes
  4. Compare the quotes and coverage
  5. Apply for a policy
  6. Cancel your old insurance
  7. Set up new billing arrangements.

An independent insurance agency that represents many companies, and can save time. But even if you use an IA you can’t eliminate these steps completely. It still takes time. And time is money.

  • Cost of Lost Benefits
    Many insurance companies reward longevity. Some offer insurance discounts to customers who are claim-free for 3 or more years. Others are more lenient in underwriting or billing for long-term clients with a good payment or claim history.

    Estimate a dollar value on those lost benefits and advantages when deciding whether to change insurers. Your insurance agent can help. If you think the savings outweigh the costs, you may want to change. If not, stay put.

Risks of Changing Insurance Companies

  • Risk of Losing Coverage  
    Insurance companies’ coverage can vary a lot. When you change companies, it’s difficult to impossible – even for an experienced insurance agent – to duplicate the coverage you had before. Trying to match coverage on your own (on a web site or 800 number)? That’s risky. A local insurance agent can help you evaluate and discuss whether there are important differences.
  • Risk of a New Insurance Company
    It’s expensive for insurance companies to underwrite new policies. To control costs, they quote your insurance using a “quick qualification” process. They only spend money on expensive reports for people who intend to buy. Then they underwrite fully. That creates some risk for new customers.

    After you apply, they inspect your property and order more reports (motor vehicle records, claim histories, etc). Depending on their findings they may :

If you’ve already cancelled your other policy, you can find yourself looking for insurance in a hurry – and end up worse off than you were before. If you shop on your own, without an agent to advocate for you, you’ll be on your own to fight the insurance company.

If you have questions about the right time to shop for Maine personal or business insurance, contact a Noyes Hall & Allen Insurance agent at 207-799-5541. We offer a choice of Maine’s top insurance companies, and our advice is always free.

We’re independent and committed to you.