Finance

5 Tips for Hiring the Right Contractor

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April is the time of year when many homeowners plan the projects and improvements they’ll make to their property during the coming warmer months.

This is a good year to hire a contractor. The slow economy means that many of them are looking for work (they might even return your phone call!). Many of the “fringe” contractors who appear in boom times have washed out of the market; quality tradespeople tend to have work in good times and bad.

Nevertheless, finding the right contractor isn’t always easy. Here are 5 tips to help you in your search:

  • Seek referrals from friends, co-workers, other contractors, and material suppliers. Keep good notes.
  • When interviewing contractors, ask:
    – How many years they’ve been in business.
    – List of last 5 customers.
    – Where their permanent location is (even if they work out of their home).
    – Any professional affiliations or designations.
  • Certain contractors in Maine must be licensed (plumbers, electricians, oil burner technicians, etc.). For more information on these trades, visit the Maine Office of Licensing and Registration.
  • Get more than one estimate. Beware of bids that seem unreasonably low, and make sure that they include the same scope of work. Ask about the rate for work that wasn’t contemplated before the job, but may be needed after it’s started.
  • Get a certificate of insurance – including any subcontractors they may hire. Hire a contractor who buys General Liability Insurance and Workers’ Compensation Coverage. Otherwise, you may pay for damage the contractor causes to your own property, or injuries your contractor or their employees suffer while on your job. Self-employed individuals aren’t required to purchase workers’ comp coverage on themselves, but that doesn’t mean you have to hire them. This is especially important for hazardous work like tree work, roofing and siding installation.

Be sure to know your rights when dealing with contractors. The State of Maine provides an excellent guide that outlines these.

Finally, if you’re adding insurable value to your home (finishing a basement, adding a deck or addition, etc), be sure to contact your insurance agent to increase your homeowners coverage.

Good luck with your projects. If you’re doing any of the work yourself, be safe!


Complaint Dept. – Who’s Your Insurance Advocate?

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Almost 200,000 consumer complaints were filed with U.S. insurance departments in 2008, according to data released today by the National Association of Insurance Commissioners (NAIC).

Not surprisingly, claim handling generates the highest number of complaints. Perceived delays in handling claims are historically the top consumer complaint, followed by denial of a claim, and an unsatisfactory settlement or offer. 2008 was no different.

Claims Leads the Charge
While the complaint reasons remained the same over the past three years, NAIC data indicates that 5300 fewer claim complaints were filed in 2008 than 2007. Underwriting complaints (premium and cancellation) also decreased for the third consecutive year. Policy service (questions, billing, etc.) generated relatively few complaints, indicating that most insurance customers were able to get their routine questions answered satisfactorily.

Medical Insurance Generates Most Complaints
Health insurance was once again the most common type of coverage people complained about, followed by auto and homeowners insurance. Homeowners policy complaints decreased by 13,500 from 2006 to 2008, reflecting less underwriting turbulence in the property market.

What does this mean?
The way we see it, the NAIC report reinforces the value of a local independent agent, one who knows you and can advocate and advise clients on all aspects of their insurance, from claims to underwriting to service.

Who’s in Your Corner?
An independent agency like Noyes Hall & Allen can provide advice in a different way than an agent who’s an insurance company employee (direct writer), or one who represents only one company (captive agent). And, of course, being able to sit across the table from your agent, instead of talking to the next representative in queue at a remote call center is inherently more valuable.

If you have any questions about your insurance, we’re here to help!


Name Your Price? We Help You Do that Every Day.

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Progressive Insurance, the nation’s 4th largest auto insurer, recently introduced “Name Your Price®” auto insurance on their web site. In ads featuring Flo, their quirky shopgirl spokesowman, the company hopes to connect with consumers’ desire to control their expenses in today’s economy.

In Progressive’s press release, spokesman Dale Willis said “Drivers want to customize their car insurance so they get the best possible coverage at a price that’s right for them, especially in times of economic uncertainty.”

The program is available in 16 states (not Maine). A countrywide rollout is planned for this year.

We respect Progressive’s culture of innovation. They are the Bill James of insurance: experts at analyzing data in new ways to find the right premium for virtually any risk. In fact, we have offered Progressive products to our clients for decades. They also sell directly to shoppers through their Progressive Direct brand.

What About Coverage?
Naming your own price sounds good – maybe too good. The problem: it’s easy to forget why you wanted to buy insurance in the first place: to protect your assets.

Insurance isn’t like shopping at the mall. There are no “sales”, and prices don’t magically drop. Every premium reduction is funded by a decrease in coverage or increase in deductible.

Who’s Advising You?
Tough economic times may motivate you to reduce your expenses. It’s not only smart; it’s necessary. There’s certainly no shame in trying to save money. Clients call us all the time with that goal in mind. We help them decide what changes to make to meet their budget – in effect to “name their price”. The difference is, we explain to them how their choices affect their coverage.

Who’s advising those Progressive shoppers when they “name their price”? So far, Progressive has chosen to offer this option on their “Progressive Direct” web site, not through local independent agents like Noyes Hall & Allen.

Although Progressive employs agents in their call centers to handle shoppers’ questions, the shopper has to request that contact. Most people are likely to avoid that – and make decisions on their own. Even if they do choose to speak with a Progressive Direct agent, the agent has no knowledge of the online shopper, their circumstances, or the area where they live. And, if the shopper has any follow up questions, they’re unlikely to speak with the same agent again.

We think it’s better to deal with a local insurance advisor – someone who can get to know you; the same person you can speak with any time you have questions. For information about how you can save money on your insurance, contact us today.


11 More NH&A Clients are Heating Assistance Winners!

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As the long winter of 2008-09 rolls on, 11 more Noyes Hall & Allen clients were winners in the February’s drawing of Concord Group’s A Warm Hand heat lottery. Combined with December and January’s drawings, Noyes Hall & Allen clients have received $3,700 worth of oil, gas or other heating fuel assistance, courtesy of Concord Group.

We know that many people struggle with paying winter heating bills. We have seen cases where using space heaters, wood stoves and other alternate heating methods have caused fires. We hope that this fuel assistance program will help to reduce these fires.

More good news! It’s not too late to sign up! Concord’s last drawing takes place the 15th of March. If your homeowners policy was provided by Concord Group on October 31, 2008, you’re eligible. Sign up today!

Good luck!


Reduce Your Insurance Costs – Improve Your Credit Score

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Like it or not, your credit score probably affects how much you pay for financial products and services than any single characteristic. Use of consumer credit information extends well beyond the traditional uses of loan underwriting.

Of the 10 home and auto insurers we represent, 8 use “insurance scores” – a variation of a consumer credit score – as a rating factor. Another considers credit information when underwriting. Only 1 of the 10 does not consider credit information.

Insurance companies have proven a strong correlation between higher credit scores and lower insurance claims. Most state regulators – including Maine’s – have agreed that insurers may offer lower rates to people with better scores – and higher rates to those with lower scores.

You Don’t Have to be Rich to Have a Good Credit Score
Contrary to popular opinion, income and savings are not factors in determining your credit score. It’s about managing finances: paying bills on time, being prudent with debt, and building credit.


A wealthy person who doesn’t use credit cards, has no car loan or mortgage, but who is sloppy about paying monthly bills probably has a worse score than someone of modest means who manages and pays debt prudently.

Tips to Improve Your Score

1. Get a copy of your credit report. They are available free once a year from each of the three major credit reporting agencies. However, you must use this web site rather than the individual agencies’ sites to get the free reports.

Check your report for errors, omissions and potential identity theft. Make sure that all your loans are shown; you want to show that you are good at managing all your accounts. Paying bills on time is critical to a good score.

2. Manage credit cards properly. If you don’t pay off your card every month, pay it down to less than half the maximum available balance.

Taking out new credit cards is a good way to drag your score down. Don’t take on a new card unless the interest rate A LOT lower and you plan to pay it off within the year.

3. Don’t cancel a credit card once you’ve paid it off – this surprises most people. Cut it up if you don’t want to use it, but don’t cancel it. Your credit score rewards longevity and restraint in using available credit.


4. If you plan to apply for credit in the near future, don’t use credit cards for groceries and other routine payments. Credit rating companies only see the balance on the day they check. They don’t know if you pay it off every month or not.

Of course, other factors -claims history, for example – affect your insurance costs. A clean driving record will lower your auto insurance costs; buying more coverage, or insuring a more expensive car will increase them. A larger home, or one without a nearby fire hydrant, will be more expensive to insure. But insurance score can play a surprisingly significant role in the price you pay for insurance. Managing yours can help you to control your costs.

For more information, call Noyes Hall & Allen Insurance.