Business Property Insurance

Prepare Your Business for Hurricane Sandy (aka Frankenstorm)

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The path of Hurricane Sandy is still uncertain. Most recent estimates indicate that the storm will make landfall south of Maine.

A Storm That Misses Still Can Cause Damage

Even if the storm hits well to our south, high winds and rain are predicted over a large area, including ours. Forecasts include a very wide wind-field and varied degrees of rain and potential flooding that will probably affect at least Southern Maine.

nhc.noaa.gov – as of 1100 10/26/12

Prepare Your Business

Better to prepare your business for the worst and never have to use it than to be completely unprepared. Peerless Insurance Company has created an excellent pre-hurricane checklist for businesses, which we have shared below.  We hope you find it helpful to prevent and mitigate costly losses and interruptions to your business.

Pre-Hurricane Checklist (.pdf, 85k)

 

We are happy to answer your questions about Maine business insurance, from workers’ compensation to business property to commercial vehicles and general liability. Contact Noyes Hall & Allen Insurance at 207-799.5541.

Insurance for a Maine Home with a Wood Pellet Stove or Wood Boiler

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Wood and pellet stoves and boilers have long been a popular source of heat for Maine homes and businesses. However, the vast majority of Maine homes use oil as heating fuel. Recent increases in oil prices have led to greater interest in alternative heating fuels in Maine. This has inspired technological improvements in wood-burning appliances.

Graph of home heating fuels in Maine 2011Source: US Census Bureau, American FactFinder

Insurance companies are often slow to adapt to new technologies and changing behaviors. This is prudent, since they rely on empirical data and the law of large numbers to manage risk. Their risk is much greater in the early years of adoption.

Maine homeowners insurance companies have carefully accepted homes heated by wood, provided:

  • The wood or pellet stove or boiler is a secondary heat source.
  • The primary heat source is controlled by a thermostat.
  • The stove is UL approved and installed in accordance with fire codes.
  • The insured follows woodstove safety tips.

In 2012, one of the insurance companies we represent, announced that they would insure homes, farms and businesses with certain wood and pellet stoves and boilers as the primary source of heat. Unfortunately, that is no longer the case. Homes using pellet or wood stoves must have a thermostatically controlled backup heat source, such as oil, propane or electric.

In addition to the traditional requirements listed above, some insurers require the make and model of the wood stove or boiler, and require the appliance to be:

  • Professionally Installed;
  • Self igniting and thermostatically controlled;
  • Fed automatically by auger or gravity from a bulk storage hopper or silo (pellet fuel only);
  • Protected by a sprinkler head above the unit, if required by code.

For more information about insuring your Maine home or business, contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541. Our Trusted Choice independent Maine insurance agency represents many insurance companies.

 

Preventing Clothes Dryer Fires

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Now that the Maine weather is turning cooler, many families will be using their clothes dryers more frequently. As a Maine fire insurance agent, we urge you to be careful when using your dryer to avoid the tragedy of a fire in your home, apartment, condominium or business property.

The National Fire Protection Association estimated that nearly 18,000 dryer fires occurred in the U.S. in 2006, killing or injuring more than 350 people, and causing nearly $200 million in property damage.

Common Causes of Dryer Fires

Clothes dryer fire
Dryer fires cause $200 million damage annually. (City of Fitchburg, WI photo)

The leading cause of dryer fires is failure to properly clean the appliance. Lint can build up in the exhaust duct or the dryer itself. This blocks the flow of air, causing heat to build up to the point of combustion. Another common cause is heat build-up in the clothes being dried. This can occur when clothing that the manufacturer labels to be air-dried is placed in the dryer. Clothing with padding is a common culprit; heat builds up in the dense fabric. Clothes that have been soiled with flammables such as gasoline or paint thinners can also cause fires if they are not thoroughly cleaned first.

Dryer Fire Prevention Tips

  • Clean the lint screen before or after each load.
  • Periodically clean the dryer vent and duct. If you notice that your dryer is taking longer than normal to fully dry your clothes, this can indicate a blocked exhaust duct. Check the outside vent while your dryer is running to be sure that air flow is steady and strong. Don’t forget to reconnect the ductwork after cleaning!
  • Install a metal exhaust duct, not the plastic accordion-style ductwork.  Rigid ductwork is better than the flexible type, which can more easily trap lint.
  • Follow clothing manufacturer cleaning instructions. If the label says “air dry”, don’t put it in the dryer.
  • Keep the area around your dryer free of clothing and clutter.
  • Vacuum behind the dryer to prevent lint buildup.
  • Promptly remove dried clothes from the dryer. Do not leave them in the appliance or piled in a laundry basket.

Following these safety tips can help you avoid having to report a homeowners insurance claim, and keep your property and family safe. If you are looking for a Maine independent insurance agency representing many preferred homeowners and condo insurance companies, contact Noyes Hall & Allen Insurance at 207-799-5541.

Does Insurance Cover Damage From Water Main Breaks?

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After the recent rash of water main breaks in South Portland Maine, many locals wonder if their Maine business insurance policy or Maine homeowners insurance covers water damage from such an occurrence.  Here are some answers, depending on what kind of Maine insurance policy you purchased.

Is the Water District Responsible for Broken Water Mains?

In general, Maine public utilities are not considered liable except in cases of negligence. If they were repairing a main and forgot to shut off the water before disconnecting, causing a flood, you might have recourse. If the break is caused by an unforeseen circumstance, wear & tear, etc., you are probably on your own to repair the damage.

Basic Insurance Policies

Off-the-shelf Maine business property insurance policies do not cover water backup or flood damage. Neither do basic  Maine homeowners, renters or condominium policies. While most do cover damage from leaking, freezing, or breaking of plumbing fixtures and appliances on the premises, damage from water that comes from the ground or under the ground is excluded.  The two most common coverages that you can purchase are Water Backup Coverage , Underground Line Insurance Coverage and Flood Insurance.

Water Backup Insurance Coverage

Maine businesses and residents can purchase an endorsement to their property insurance policy that covers backup of sewers and drains. Water backup insurance is relatively inexpensive, because it only covers damage from water that backs up into your building. Damage from surface water or seepage through a foundation are not covered. If the water main break caused your drain to overflow, backing water into your building, you may have coverage. Unfortunately, that’s not usually what happens with a water main break. Usually, the water bubbles to the surface and inundates an area. To get coverage for that, you need to buy flood insurance.

Underground Line Insurance

Some Maine insurance companies now offer underground service line coverage. They have a coverage limit – often $10,000, with a $500 deductible. Insurers now selling this coverage in Maine include Andover Companies, Concord Group and Vermont Mutual. Some sell the coverage a la carte, while others include it in a special bundle of coverage. In all cases, you have to purchase it – it’s not automatically covered by homeowners policies.

Related Post:

More Maine Home Insurers Cover Water & Sewer Lines

Flood Insurance in Maine

Only a small percentage of residents and businesses in Greater Portland purchase Maine Flood Insurance. That’s unfortunate. They think that because they’re not in an area that susceptible to flooding, they’ll take their chances. Maybe they never even thought about buying flood insurance.  But, many events can cause a flood, from heavy rains to hurricanes to snowmelt.

To be defined as a flood, surface water must cover area that is normally dry land. If that area is more than 2 acres, or at least 2 contiguous property parcels are affected (including yours), you have experienced a flood. The only way to buy flood insurance is to buy a special flood policy (except for specially policies generally reserved for large corporations and commercial projects). Flood insurance policies exclude damage from water than seeps or leaks onto your property, unless a flood was the proximate cause of the leak.

If your home or business is in southern Maine, we would be happy to answer your questions about insuring your property. We have provided Maine business property insurance and personal insurance services to the Portland Maine area for more than 75 years. Contact a Noyes Hall & Allen Insurance agent at 207-799-5541.

Protect Your Maine Retail Store From Theft

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Organized Retail Crime is widespread and on the rise, according to a recent survey by the National Retail Federation. A record 96% of the 125 retail survey respondents reported being the victim of organized retail crime in the past year, and almost 88% said that Organized Retail Crime had increased in the past 3 years. The survey respondents cited special concerns in cargo theft, fraudulent returns or gift cards, and collusion.

Organized Retail Theft in Maine

Maine retail business insurance clients have not been immune. From the Maine Mall to Main Street, Portland to Maine’s most rural outpost, clothing shop to convenience store, business insurance claims for theft are filed every day.

Organized theft is a special problem says Curtis Picard, Executive Director of Maine Merchants Association. “These are not people stealing to feed their families; these are not crimes of convenience. These are groups or gangs purposely stealing specific items with the intent to resell them and they do hit Maine.”

Organized retail theives don’t target a specific store. They target specific items. They want higher value items that are widely used and easy to steal in quantity. Popular targets are baby formula, over the counter medications and believe it or not, Tide Laundry Detergent.

“The internet has made it so much easier to resell these items. Search Prilosec or Crest White Strips on a site like eBay; you will see numerous listings for these items featuring ‘new in box’ or ‘original packaging’. Chances are these items were stolen”, Picard says.

Employees of a well-known store in Kittery can sometimes spot vans unloading several individuals who spread out to hit multiple stores at once, Picard says. It doesn’t matter where your store is – only what you sell. If your store has the items they are looking for, you may be a target.

Retail Fraud in Maine

Theft of items is only one problem, according to Picard. “UPC Code swapping, fake receipts and gift card theft are other forms of Organized Retail Crime. Thankfully, Maine retailers and law enforcement maintain a good relationship and get together at various times during the year to share information about groups. That cooperation has lead to more arrests and better prevention.”

Maine Merchants’ web site has .pdf copies of Maine Police Intel Bulletin for Retail, that provide some examples, including:

  • Pharmacy thefts in Southern and Central Maine
  • Convenience store and credit union robberies in Portland
  • Burglary in Fort Kent
  • Electric motors stolen in Oxford County
  • Burglaries in Freeport, New Gloucester and other areas.

Unfortunately, the funding for that crime bulletin has dried up, according to Picard. Yet the risk to Maine retailers remains.

Protect Your Retail Business Against Crime

Educate Yourself and Your Employees – Thieves are constantly adapting and trying new techniques. Joining  an organization like Maine Merchants can help you keep on top of trends through newsletters, meetings and other communications.

Get Involved in Your Neighborhood – Membership in a neighborhood business association like Portland’s Downtown District, South Portland Buy Local or the South Portland Waterfront Market Association  opens a channel for you to communicate and collaborate with other businesses in the area. It’s a great way to stay on top of changes in your neighborhood, from street construction to crime trends.

Protect Your Business – Invest in an alarm system. Install video cameras in areas where cash or high-value inventory is kept. Improve the lighting around your premises. Move target items to visible areas where you can keep an eye on them. Better yet, lock them up. Establish a policy to assure that employees are visible and vigilant in your store.

Buy the Right Insurance – Fortunately for most Maine business, property insurance is widely available to cover the peril of theft. Most smaller Maine retailers  purchase a Businessowners policy, which provides a bundle of commonly-needed coverage to protect them against theft and other property and liability perils. Larger retailers usually purchase a Commercial Package Policy. These can provide  similar coverage, but are more customized to the individual business.

If you are a Maine business owner or manager and have questions about business insurance, contact a Noyes Hall & Allen agent at 207-799-5541. We represent many different commercial insurance companies and can help you find the right fit for your business. We’re also a founding member of the Katahdin Alliance, a group of independent Maine insurance agents with offices from York to Augusta, Kennebunk to Carrabassett Valley. So, if your business extends beyond Greater Portland, we can support you.

6 Best Practices to Deal With Maine’s Rising Property Insurance Rates

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Most insurance companies doing business in Maine would like to forget 2011. Maine narrowly escaped many of the disasters that plagued other Northeastern states (one Maine insurance executive tells of nervously, repeatedly “refreshing” the online map of Hurricane Irene’s storm track). Still, virtually every insurer was affected because they do business in those neighboring states.

Remember the terrible flooding in Vermont? Hurricane Irene in southern New England? The tornadoes in Central Massachusetts? Widespread power outages from falling snow-covered tree limbs? Insurance companies do. They paid all those claims.

Many people don’t know that insurance companies also buy insurance – called reinsurance – to protect themselves from financial disaster. Reinsurance spreads the cost of risk throughout the world, leveling loss experience. Reinsurance works: despite the recession and the heavy losses, insurance companies remain financially solvent and able to pay claims.

Unfortunately, 2011 set a world record for disasters . Losses were $105 billion, the highest number ever. About 1/3 of those losses, and 4 of the top 10 events, were in the US. That means that reinsurance companies are now increasing the rates that insurance companies pay for property reinsurance. Of course, that translates to higher homeowners and business property rates for you and me.  So, what can you do?

Map of major disasters in the US in 2011
click to enlarge

6 Ways to Help Offset Rising Property Insurance Costs

  1. Don’t overinsure. Your Maine business property insurance agent  or homeowners insurance agent can help you determine the insurable replacement cost of your property, so you can adjust your protection accordingly.
  2. Compare rates. There are 2 ways to do this: call around yourself; or consult a Trusted Choice independent insurance agent.  This kind of  insurance agent represents several insurance companies, and can compare prices and coverage for you.
  3. Get the discounts you deserve. Don’t pay too much by failing to get the business or  homeowners insurance discounts you’ve earned. Have you recently replaced your roof, electrical, heat or other system? Installed an alarm or a generator? All of these improvements may qualify for discounts. Talk to your agent, and ask if there are other discounts available.
  4. Combine and save. Most insurers give a discount when they insure both your property and vehicles. That goes for business or personal insurance. If you own coastal, seasonal or secondary property, some preferred insurance companies will accept you if they insure your primary home, too. This can rescue you from paying higher non-standard rates with another insurance company.
  5. Choose deductibles wisely. If you’ve owned your property for a long time, you may have more financial ability to repair small losses (it’s not a good idea to file multiple, small claims anyway). If so, ask your agent how much you could save by increasing your property deductible.
  6. Maintain your property. It should go without saying, but deferred maintenance leads to claims, and claims lead to higher premiums. Replace your roof or heating system before it causes a loss. Clear leaves from your gutters every fall to prevent ice dams. Regular paint and upkeep can prevent trouble later.
Maine property insurance rates are expected to rise for some time. In times like this, it makes even more sense to develop a relationship with a local agent. In the area of Portland Maine, insurance agents are plentiful. Find one whose professional advice you trust, and who represents many preferred insurance companies. If you have questions about your personal or business property insurance, contact our experienced agents at 207.799.5541.

You Can’t Guarantee The Weather – But You CAN Insure It!

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Many southern Maine jewelry store customers were hoping for snow on Christmas Day. Why? A local jeweler ran a well-advertised promotion promising free jewelry if it snowed on December 25. How can they afford to take that chance? We don’t know for sure, but we hope they consulted their local Maine insurance agent. While our agency had nothing to do with this promotion, we have helped clients reduce their risk by selling them weather insurance for special sales or events.

Can a Business Insure Against Bad Weather?

You bet! Let’s say your business plans an open house or a big one-day sale. You advertise heavily for 2 weeks before. You buy extra inventory, and add extra staff to take care of demand. But, a heavy snow storm keeps your potential customers at home, and you lose a lot of money. Or, you could buy a weather insurance policy to help recoup part of those costs, and cut your loss.

Can a Business Insure Against a Rainy Summer – or a Warm Winter?

What if your minor league baseball team suffers through a rainy summer? Or your tubing hill business encounters a warm, dry winter? Your organization might lose all sorts of same-day revenues: walk-up tickets; concessions; parking income, and more. A customized weather policy might pay a set amount if more than a certain number of game days have a specified amount of rain. A snow-area business could insure a mild winter in the same way, thereby stabilizing their income.

How Does Weather Insurance Work?

Like a good news article, weather insurance addresses the 4 W’s: What, When, Where and Who. As long as the event is measurable and the terms are specific, it can be insured. The price depends upon the terms. For example, if 6 inches of snow fall at a specific address in Portland, ME between 12:01 am and 11:50 pm on December 25 as measured by the National Weather Service, the insurer pays an agreed amount or percent of  a pre-determined period sales. Decrease the number of inches and you’ll pay more premium; shorten the sale period, you’ll pay less.

Fifteen Businesses That Might Buy Weather Insurance:

  • Florists and Nurseries – for big pre-season open house or important Spring and Fall weekends.
  • Candy Stores – The last few days before Valentines Day are key!
  • Golf courses – Insure against late snowstorms that can put a season on hold.
  • Baseball teams – Rainouts mean lost revenue.
  • Farmers’ Markets – Ever notice that it seems to rain EVERY Thursday?
  • Snowmobile dealers – Reduce the risk of overbuying inventory in a dry winter.
  • Ski resorts – It’s tough to make snow when in 40 degree weather. Even out budgeted revenue projections by insuring against warm weather.
  • Tour companies – It’s a short season already. One rainy month can cause disaster.
  • Car washes – Although I always seem to wash my car right BEFORE it rains, very few of us actually wash them WHILE it’s raining. A summer of rainy weekends means business lost forever.
  • Jewelers or Car Dealers – High-ticket items are perfect for attention-getting giveaway promotions.
  • Hotels & Motels – To level out income fluctuations when reservations are canceled due to weather.
  • Festivals and Events – They’re expensive to put on, and it’s often tough to have a successful “rain date”.
  • Beach parking lots
  • Film Production Companies

The possibilities are almost endless.

Where Can You Buy Business Weather Insurance?

Several online options offer “self-service” weather insurance. Being a Maine independent insurance agency, we recommend using the services of an agent or broker. It costs exactly the same.  A Maine  business insurance expert can help you determine your needs and work within your budget. They can also help you evaluate the market, to assure that the insurance company is reputable and financially secure. And, they can help you if you need to file a claim.

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

Space Heaters: How to Stay Warm AND Safe

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It’s getting colder in Maine. With today’s high fuel prices, many of us try to delay turning on the heat as long as possible. For some people, that means using a space heater to “take the chill off”. As with any appliance, it’s important to know the associated hazards and best practices for avoiding them.

Fires and Burns

The Consumer Product Safety Commission estimates that space heaters are involved more than 25,000 home fires every year, causing more than 300 deaths.The SPSC estimates that another 6000 people, many of them children, visit emergency rooms for burns from touching hot surfaces.

  • Check the wires, fuel lines and tanks often to make sure they’re in good condition.
  • Keep combustibles at least 3 feet away from space heaters.
  • Leave your space heater on the floor, unless it’s designed otherwise.
  • If you smell gas, turn off all controls, open a window, and leave the area.
  • Propane is heavier than air. Avoid electrical switches or appliances if you smell gas. And, of course, no smoking!
  • Do not use electric space heaters in wet areas, such as the bathroom.
  • Keep children and animals away from space heaters.

Carbon Monoxide Poisoning

CO is an odorless, colorless gas produced by incomplete combustion of gasoline, natural gas, propane, kerosene, coal or wood. Symptoms of CO poisoning include:

  • Dizziness
  • Nausea
  • Headache
  • Fatigue
  • Weakness

Prolonged exposure can cause lack of coordination, confusion, loss of consciousness, and even death.

Modern space heaters (made after 1983) have sensors that automatically shut off the appliance if a reduced level of oxygen is detected. In addition, your best protection is a good, working CO detector.

If you have property in Maine, and have questions about home, renters or condominium insurance, our Portland area insurance agency can help. We’re locally owned, and represent many of  Maine’s best insurance companies. That means we can provide you with customized choices.  Contact a Noyes Hall & Allen agent for answers!

Here’s to a mild – and safe – heating season!

Am I Covered if a Falling Satellite Hits My House or Car?

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I realize I’m out of the loop, but was I the only one surprised to wake this morning to news that a huge piece of space junk is headed straight for Earth?

As usual, my friend Sabine was way ahead of me. She had already tweeted this insurance question (and blog post idea!):

 

 

The Answer to Every Insurance Question is: “It Depends”.

If you have  Maine homeowners insurance, business property insurance, or anything other than the most basic kind of property policy, you’re covered for damage caused by “aircraft, including self-propelled missiles and spacecraft”.

If you have  Maine car insurance, commercial vehicle insurance, or contractors’ equipment coverage, and have included “other than collision coverage”, you’re covered against hurtling space junk. If you bought “liability only” coverage, you’re taking your chances.

Fortunately, your chances of getting hit are infinitessimally low. Probably.

If you live in Southern Maine, and  have questions about your insurance, our Portland area insurance agency can help. Call Noyes Hall & Allen Insurance at 207-799-5541. Or, post on our wall by finding Noyes Hall & Allen on Facebook or tweet us @NHAIns on Twitter.

 

What is “Dwelling Fire” Insurance?

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Most Maine home insurance is written on a homeowners policy. But certain types of property do not qualify for homeowners policies, either because of the characteristics of the property or its occupancy. Properties that do not qualify for Maine homeowners insurance are often insured on a Dwelling Fire policy.

Does a Dwelling Fire Policy Only Cover Fire?

The name is misleading. All Dwelling Fire policies cover more than just fire. How much more depends on which policy form you have.

Dwelling Fire policies offer 3 common flavors: DP-1, DP-2 and DP-3. Homeowners policies also have 3 options, HO-1 through 3. The vast majority of Maine homeowners policies are HO-3; likewise, DP-3 is the most common coverage level found on Maine Dwelling Fire policies.

DP-3 Dwelling Fire policies and an HO-3 Homeowners policies have very similar coverage for buildings. Building coverage is considered “open perils”: unless a cause of loss is excluded, it is covered. The lower-numbered policies provide more restrictive “named perils” building coverage; only specifically listed causes of loss are covered. The DP-2/HO-2 building section covers 12 named perils. The DP-1/HO-1 only covers 4: Fire & lightning; windstorm; explosion; and vandalism.

The Difference Between a Dwelling Fire Policy and a Homeowners Policy

There are several key differences between the two policies.

  • Dwelling Fire policies do not automatically include Liability or Medical Payments coverage.
  • Theft of contents is not covered by Dwelling Fire policies (you can sometimes purchase a small amount for an additional premium).
  • Dwelling Fire policies typically don’t permit optional coverage extensions that are common to homeowners policies (e.g. water backup; identity theft; fallen tree removal; food spoilage).

 

Related Post: What’s the Difference Between a Homeowners Policy and a Dwelling Fire Policy? 

Why do I need to Buy a Dwelling Fire policy?

A Dwelling Fire policy may be required for:

  • Property rented to others.
  • Seasonal property.
  • Other properties as determined by an insurer’s Underwriting Department.

A Dwelling Fire policy covers your property for more than fire. Coverage is generally not as broad as a homeowners policy, but it’s not as limited as the name implies. For advice about your particular situation contact your Maine insurance agency or Noyes Hall & Allen at 207-799-5541.