Condo Insurance

3 Things Every Coastal Maine Homeowner Should Know About Flood Insurance Changes

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As the Press Herald reported in this September 5 story, FEMA is updating its current flood hazard maps for much of the southern Maine coast. These maps are used to determine insurance costs in the National Flood Insurance Program (NFIP), the only flood insurance available for most properties. Maine business property insurance,  homeowners insurance and condo insurance do NOT cover flood damage.

FEMA proposes to change the zoning of much waterfront property in South Portland, Portland and Cape Elizabeth. The cities of Portland and South Portland are challenging the new zoning, but there’s no guarantee that they will be successful.

The Zone Differences

FEMA’s zone classification system defines an area that has a 1 percent chance of being inundated by flood waters in a given year a “special hazard area”. There are two categories of “special flood hazard areas”, “A” and “V”.

The difference is that “A” zones are low-lying areas subject to flooding, while in “V” (velocity) zones, the water is more likely to flow with the increased hazard and damage of wave action. Many of the proposed changes would switch local oceanfront property from an “A” zone to a “V” zone; some may extend “A” zones to properties not previously considered to be in a “special hazard zone”.

How This May Effect You

Compared to properties not in a “special hazard zone”, Properties in an “A” zone:

  • Pay higher flood insurance rates.
  • Are required by FHA lenders to be insured for flood.
  • Require an “elevation certificate” – a special survey that the property owner must pay for and provide to the flood program.

In addition to these conditions, properties in a “V” zone:

  • Pay even higher flood insurance rates
  • May be unable to purchase flood insurance if they’re on piers or wharves that are over water.

What You Can Do

View local flood maps at your local planning office.

If your property is proposed to be re-located into either an “A” or “V” zone, call your insurance agent immediately. Since the maps are not yet effective, property owners can take advantage of cost-saving options that allow them to “lock in” at their current zone. Depending on your property’s value and location, this could save you thousands of dollars per year.

For more information, contact Noyes Hall & Allen Insurance at 799-5541, or the FEMA Map Assistance Center at 877-336-2627.

* * * UPDATE * * *

The Portland Press Herald  reported on September 21 that FEMA is delaying implementation of the new flood maps, and will re-start the appeal process, likely in early November. The agency cited technical errors in the notification process, not any methodological errors, as the reason for the delay.

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!

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.

EVERY Property is in a “Flood Zone”

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Many people fail to purchase flood insurance when they buy a property. Some believe that their Maine homeowners insurance will cover flood damage. It won’t. Others think that because their lender hasn’t required them to buy flood insurance, they’re not in a “flood zone“.

Every Property Can Sustain Flood Damage
Some properties are more flood-prone than others, of course. Ocean- or river-front property is more likely to flood than homes located on higher ground. The good news is that it’s relatively inexpensive to buy flood insurance if you live in a low risk area.

What is a Flood?
The word “flood” conjures up images of rising rivers and streams, or ocean storm surges. Those are floods of course, but so are: snowmelt runoff; dam breaches; heavy rains; and flash floods. All of those things can and do occur in Maine. Here’s a list of past flood disasters in Maine, which doesn’t include some notable recent events.

Remember the heavy rains of August, 2008 that flooded several southern Maine areas? Many property owners in the affected areas had never experienced flooding before.

Mandatory 30 Day Waiting Period
Let’s say you’ve heard weather forecasts of heavy runoff from snowmelt. Concerned about your property, you call to buy flood insurance to protect your home. The government knows that many people who would buy such coverage may be in imminent danger. That’s why they require a 30 day waiting period for coverage to take effect – unless you’re buying property and coverage is required by your lender.

That means now is the time to think about buying flood coverage – not when the river’s rising.

Flood insurance is only available through the National Flood Insurance Program, a government program managed by FEMA, and available through virtually any Maine insurance agency. Contact Noyes Hall & Allen Insurance for a quote. For more myths and facts about flood insurance, download this brochure.


Dealing with Increased Risk from Holiday Travel

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As Americans take to the roads, rails and sky for the holidays, an alarming percentage don’t fully understand whether their insurance coverage adequately protects them, according to a new national surveyon travel insurance issues by Trusted Choice® and the Independent Insurance Agents & Brokers of America (the Big “I”).

For the survey, 1021 respondents were asked if they thought that their insurance policies would cover them against common travel risks, such as renting a car, luggage lost by an airline, theft of gifts from a vehicle, or medical expenses from illness or injuries when traveling. An alarming 30 to 75%, either didn’t think they were covered by their current policies in these situations or said they didn’t know.

We advise they consult with their agent to discuss their current policies and what do to in the event that they need to file a claim while on vacation. The good news for consumers is that homeowner’s insurance policies may cover lost property, car insurance policies often offer the option of rental coverage, and medical policies usually have clauses that explain where and when you are covered.

Trusted Choice® independent agents provide the following tips for holiday travelers.

Lost Luggage

Although 75% of homeowners did not think or did not know if they would be covered in the event that an airline lost their luggage containing holiday gifts, most homeowners or renters insurance policies do provide worldwide coverage for most belongings. Additionally, some airlines do have reimbursement policies in the event that they lose your luggage. If you purchased the lost gifts with a credit card, you may have some level of protection with your issuers. Photographing the contents of your suitcase may also help in the event of a loss. Before purchasing baggage insurance, check your current policies. It may be a waste of money.

Renting a Car

The survey found that nearly one third of consumers do not think or do not know if their current policies cover them in a rental vehicle. Maine auto insurance policies provide protection for liability you incur for injuries or property damage you cause to others within the U.S. Driving a rental car is considered to be the same as driving your own vehicle for liability purposes. 

Liability Damage Waiver – It’s not usually necessary to purchase a Liability Damage Waiver from the rental car agency since you usually already have coverage under your own insurance. Always request a copy of the rental agreement to review ahead of time with your independent insurance agent. 

Collision Damage Waiver – Rental car agencies typically try to sell “Collision Damage Waivers” (CDW) for about $8 – $15 per day. These waivers are not insurance. In effect, a CDW is simply a promise made to the rental car agency that they won’t make you repair or replace a damaged or stolen vehicle. If you already carry collision and comprehensive coverage under your own personal auto policy, your insurance will extend to the rental car. Consumers need to carefully evaluate their existing coverage and discuss whether or not purchasing a CDW is appropriate for them. 

There may be gaps in the coverage your insurance policy provides for rental cars.  For example, many car rental companies may hold you responsible for the loss of use of a damaged rental car. Rental car companies may charge you the daily rental rate for every day the car is undergoing repairs. While many auto insurance policies will pay “loss of use” charges, those that do set limits. There are other expenses that most auto policies do not cover. One example is diminished value which can amount to several thousand dollars. Consult your independent insurance agent to find out what’s best for your travel needs.

When CDWs May be Appropriate –  There may be gaps in the coverage your insurance policy provides for rental cars.  For example, many car rental companies may hold you responsible for the loss of use of a damaged rental car. Rental car companies may charge you the daily rental rate for every day the car is undergoing repairs. While many auto insurance policies will pay “loss of use” charges, those that do set limits. There are other expenses that most auto policies do not cover. One example is diminished value which can amount to several thousand dollars. Consult your independent insurance agent to find out what’s best for your travel needs.

• Foreign Travel - As a general rule, when traveling to a country other than Canada and renting a car, you will have to purchase auto insurance in the country where you will be driving. Some personal umbrella policies may provide liability coverage for rental cars abroad; few will cover damage to the rental car itself.  Again, seek professional expert advice from an independent agent before you leave home. 

• Check the Vehicle –  An important way to protect yourself when renting a vehicle is to check over the car carefully for damage in the presence of a representative of the rental car company before you leave the lot and when you return it. Request all prior damages be noted in writing. Car renters have been known to receive damage claims from rental car companies weeks after turning in vehicles. There is no way to prove your innocence at that point. 

What if You Need Medical Attention Out-of-State or in a Foreign Country?

The survey found that more than 35% of respondents did not think or did not know if they were covered in the event that they became ill or injured no matter where they were located. Most individual and employer-provided health and medical insurance policies cover you when you are injured or become sick no matter where your injury or illness occurs for short recreational trips. In general, major medical health insurance plans sold in the U.S. will provide coverage for emergency medical services you require while traveling. Still, insurance companies cannot guarantee the quality of care that is available wherever you travel and some policies have territorial restrictions.

• Domestic Travel:  While the medical services provided in the U.S. may be among the finest in the world, not all facilities and practices may offer the standard of care or access to the latest medical technologies that you may expect.  Therefore, travelers should take some time to find out what is available in the area where they will be traveling and contact their independent insurance agent to assess just how well their insurance coverage will respond to medical emergencies away from home.

• Foreign Travel:  When evaluating insurance policies for a brief trip or extended stay abroad, it is important to understand any limitations in coverage that each prospective policy might impose.  For example, it is not unusual for "Foreign" (called foreign even though it’s purchased here at home) health insurance to exclude coverage for injuries that occur while participating in hazardous activities. Ask questions and understand exactly what you are buying and what is covered.

Medicare Consideration: Those who rely on the Social Security Medicare program should know that it does not cover hospital and medical services outside of the U.S. Before you leave the country, learn what medical services your health insurance will provide while you are abroad and consider the purchase of additional insurance protection.

Manage the “Four C’s” of Winter Fire Risks

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Thanksgiving, Chanukkah, Christmas, and New Year’s Eve—these holidays mean celebrations, many of them in decorated homes filled with merry-making family members and friends. Unfortunately, this joyous time is also the height of house fire season. The National Fire Protection Association (NFPA) reports that the 10 worst days for fires in homes fall between December 24 and January 6. Although Maine homeowners insurance policies cover fire damage, no one wants to suffer a fire.

 

Fortunately, these risks can be reduced with safe practices that address the “four Cs” of winter fires: chimneys, candles, Christmas trees and children.

 

Chimneys

Creosote buildup or chimney blockage can catch fire. Chimney fires are unpredictable: they can be noisy and fierce, or can smolder undetected.

 

Common-sense tips: 

  • If you haven’t checked or cleaned the chimney in the past two years, don’t use it. 
  • Have a pro inspect the chimney for creosote (which is what builds up in a chimney and fuels a chimney fire)
  • Use dry wood. This minimizes creosote buildup. 
  • Don’t burn wrapping paper, boxes, trash or Christmas trees.
  • Don’t use liquid to start a chimney fire. Use kindling.

 

Remember fireplace basics, too: use a screen to contain sparks; and let ashes cool before disposing of them in a metal container.

 

Candles

Home-candle fires happen on Christmas Day more often than any other day, according to the National Fire Protection Association. Next worst: New Year’s Day and Christmas Eve. How do they start? Half of home-candle fires begin because an item is left near a lit candle. Four of 10 home candle fires start in bedrooms, with bedding, furniture, and curtains igniting.

 

Common-sense tips: 

  • Make sure all candles are out before you leave a room or go to bed.
  • Keep clothing, curtains, furniture, and other flammable items away from candles and flame.
  • Use candle holders that don’t tip over.

 

Christmas Trees

The National Fire Protection Association notes that 300 home fires start each year with Christmas trees. It’s not just live trees; artificial trees also burn. Three major reasons Christmas-tree fires start: electric malfunctions, heat too close to the tree, and children playing with matches, candles, or fireplaces.

 

Common-sense tips: 

  • Buy a cut tree that has green, fresh needles.
  • Buy an artificial tree that is fire resistant.
  • Use a secure stand.
  • Locate trees a minimum of three feet from heat sources such as fireplaces and radiators.
  • Water live-cut trees every day.
  • Use lights listed by an industrial laboratory. Link together, at most, only three strands of bulbs.
  • Throw out lights that have frayed or broken cords. 
  • Pull the plug on lights before going to bed or leaving home.
  • When a tree starts dropping needles, it’s time to dispose of it (outside, not in the house, garage or basement).

 

Children

Perhaps the most unpredictable risks for winter fire are kids who are, naturally, exploring and experiencing the wonders of the winter season. Remember that lights and flames are fascinating to children. 

 

Common-sense tips:

  • Watch the wires. Keep kids away from light strands and power cords.
  • Matches, candles, stoves and ovens often get extra use during the holidays, at a time when adults are occupied with cooking, cleaning and entertaining. Stop and ask: “What might draw a child’s curiosity in this house?” Then shield children from those items, physically and through discipline and direction.
  • Put matches/lighters out of children’s reach. Use lighters that have a child-resistant safety feature. 
  • Train children to tell an adult if they see matches or lighters.

 

As always, our Maine insurance agency stands ready to assist our clients with a homeowners insurance claim. The best claim is no claim, though. Use these common-sense practices to prevent home fires.

If you have questions about home insurance, Maine condo insurance or renters insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

South Portland PD: Beware of Break-Ins

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The South Portland Police Department warned residents yesterday about a current string of burglaries in all areas of the city – averaging about one a day.

Most of the stolen items have been small electronics: video games, iPods, laptop computers and the like.
SPPD recommends that all residents:
  • Lock all doors & windows.
  • Leave an exterior light on at night.
  • Secure valuables in a safe.
  • Record serial numbers of electronics.
  • Mark video games to allow police to return them if recovered.
  • Report suspicious activity to police.

 

From an insurance standpoint, theft is covered by most Maine homeowners insurance policies, subject to the deductible (often $500 or more). Some items (jewelry, firearms, money, silver, and more) are subject to limitations on loss by theft. If you have significant amounts of these items, contact a Maine insurance agent to schedule them separately on your policy. Things stolen from your car are NOT covered under your auto insurance policy, but rather your homeowners or renters’ insurance policy (another reason to purchase a renters policy!).
If your home or vehicle is broken into, you must file a police report in order to file a claim.
Be safe and be smart.
If you have questions about insurance, we’re here to help. Contact Noyes Hall & Allen Insurance at 207-799-5541

Wind, Rain, Loss of Power Threaten Area

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Today’s forecast calls for high winds in the Greater Portland area, along with 1.5 to 2 inches of rain. The west side of South Portland lost electrical power this morning, forcing school officials to dismiss students early. 

The combination of heavy rain and no electricity is a recipe for flooded basements, as sump pumps are literally powerless to remove groundwater that may back up through basement drains. This type of damage is NOT covered by most Maine homeowners insurance policies, unless you buy a separate endorsement. Although it may be too late for you today, check your policy and talk to an agent about adding this coverage. Also, general flooding is not covered by homeowners policies. Coverage is available via separate flood policy. Talk to an insurance agent for details. 
Our Maine insurance agency is ready to respond to any insurance claims caused by today’s storm. Contact Noyes Hall & Allen Insurance at 207-799-5541.

Bicycle Commuting in Maine: Tips to Reduce Your Financial Risks

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Bicycle commuting is increasingly popular, with over 200 people registered for the online Portland Bicycle Commuting Meetup group. You don’t need a fancy new bike to commute. In fact, many people use older 10 speed or 3-speed bikes. But many others have invested a considerable amount in their commuter bikes.

Of course there are many ways to protect their asset and means of transportation. A good lock is a no-brainer. So is riding carefully and competently to avoid colliding with vehicles. Ditto for dressing brightly and using lights to increase visibility.
But what if the worst happens? What if your bike is stolen, or if you are in an accident with your bike? The good news is that homeowners or renters insurance will cover damage to your bike caused by theft or collision with a vehicle. The bad news is that too many apartment-dwellers (a considerable share of the bike-commuting population) fail to buy renters insurance at all. This stuff is cheap! Covering your “stuff” up to $20,000 often costs less than $15.00 a month. If you own a vehicle, you usually qualify for car insurance discounts if you buy a renters’ insurance or homeowners insurance policy from the same company. Often, the car insurance savings will almost pay for a renters policy.
Losing your bike would stink, but losing everything else, including future earnings, would stink even more. That’s what can happen if you cause an accident. See, you can be liable for an accident just like an auto driver can. Let’s say you make an “Idaho stop”, and proceed through the intersection, failing to notice that oncoming car. The car slams on the brakes, swerves, and misses you, but hits something else. Guess who’s at fault? It would be nice to have some insurance to help you pay the damages and court costs. That’s what your old friend the homeowners/renters policy is for!

Most cyclists take care to operate their bikes safely and protect their property. They invest a lot of time and effort into staying safe. Despite these efforts, bad things can happen. So do yourself a favor: get a renters insurance quote or homeowners quote and protect yourself.

For more information about insuring your bicycle, car, home or other property, contact Noyes Hall & Allen Insurance at 207-799-5541.

Lessons from the Lapointe Trial Verdict

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Many Mainers followed the recent trial of Medway, MA and Bridgton, ME resident Robert Lapointe, who was charged with manslaughter, reckless conduct with a dangerous weapon and aggravated OUI following a collision on Long Lake in which killed Terry Raye Trott of Harrison and Suzanne Groetzinger of Berwick. The jury was deadlocked on the first two charges and found Lapointe guilty of the third. 


Regardless of your opinion on the case (and everyone in Maine seems to have a strong one!), there are some items worth noting:

  • The criminal trial was only part of Mr. Lapointe’s worries. There will surely be a civil trial now that the criminal trial is over. Yes, he was convicted of two counts of Aggravated OUI, each of which carries a maximum sentence of 5 years in prison. And, the State hasn’t decided whether to re-try him on the two deadlocked charges. 
  •  A civil trial, which would likely charge wrongful death, would be protracted and expensive – regardless of the outcome. Probably the most famous civil trial following a criminal acquittal was The O.J. Simpson case. As everyone knows, Simpson was acquitted of murder in the criminal trial, only to be found guilty of civil charges, which cost $8.5 million in compensatory damages and $33.5 million in punitive damages. 
  • Maine homeowners insurance and Boat Insurance policies offer liability protection, including defense costs. This would apply only to civil – not criminal – charges. The maximum limits available are generally $500,000. Too many people fail to even carry this amount.
  • Personal Umbrella Insurance policies provide excess liability protection in increments of $1 million. Best of all, legal defense costs are usually NOT taken out of that limit: most policies provide a full $1 million of protection against damages.

 You probably have a tough time identifying with O.J. Simpson or Robert Lapointe. Their cases are extreme. But bad things can happen to ordinary people, too. And your assets can be wiped out by defense costs and liability judgements following an accident. 

Takeaways:
  1. Review your homeowners policy. 
  2. Compare your liability coverage to your net worth.
  3. Consider buying an umbrella policy.  
  4. Talk to your insurance agent.