Homeowners Insurance

First Winter as a Maine Homeowner? Avoid the “Big 3” Headaches

Posted on by admin
This recent blast of cold weather reminds us that winter’s coming. Every year, some clients of our Maine insurance agency report water or ice damage to their property. Many of these come from people who are spending their first winter since buying or significantly renovating their homes.
Every house is different; depending upon the roof shape and slope, landscaping, location and elevation, some homes are more exposed to winter’s peril more than others.
Here are a few tips to help you and your home weather your first winter together.
cold weather thermometerSNOW
• Watch for snow accumulation on the roof. Heavy snow load can lead to roof collapse. A roofing contractor will often be a good source for a reputable snow removal service.
• Remove snow from basement stairwells, window wells and all walls.Melting snow can lead to water damage and moisture intrusion.
ICE DAMS
Ice Dams are an accumulation of ice at the lower edge of a sloped roof. A warm attic melts snow, causing water to run down and refreeze at the roof ’s edge, where it’s much cooler. If ice builds up and blocks water from draining off the roof, water is forced under the roof covering and into your attic or down the inside walls of your house.Anatomy of an Ice Dam

• Keep your attic well ventilated so it maintains a temperature close to that of the outdoors, which will minimize the risk of ice dams forming.
• Make sure your gutters are clear of leaves and debris.
FREEZING PIPES
Pipes in attics, crawl spaces and outside walls are particularly vulnerable to extreme cold. To keep water in your pipes from freezing:
• Fit exposed pipes with insulation sleeves or wrapping to slow heat transfer.
• Seal cracks and holes in outside walls and foundations near water pipes with caulking.
In bitterly cold weather:
• Keep cabinet doors open to allow warm air to circulate around pipes.
• Keep a slow trickle of water flowing through faucets connected to pipes that run through an unheated or unprotected space.

Maine Homeowners – Thinking About a Pellet Stove?

Posted on by admin

Pellet stoves are hot. Over 50% of stoves bought in the U.S.  in 2008 were pellet-fueled, according to the Pellet Fuels Institute.

A Wood Pellet StoveAny kind of wood-burning appliance causes concern for fire insurance companies. Insurers are often slow to adapt to new technology, since they rely on experience statistics to help them set rates and underwriting guidelines. However, most insurers understand the popularity of these stoves, and are trying to accomodate home owners who use them.

Operated and maintained properly, well-built stoves can be a safe, economical way to heat your home. If you buy one, your insurance company will probably ask some questions about it. Here are some of the insurance company guidelines we’ve seen.

5 Keys to Making Your Pellet Stove Insurable

  1. Make sure your stove is UL listed. Many U.S. insurers will only insure American or Canadian built pellet stoves.
  2. Many companies will only insure top-fed stoves. Bottom and side-fed stoves are considered to be harder to consistently maintain. This may change with future designs and as more experience develops.
  3. Avoid an appliance that is capable of burning Standard PFI rated pellets. Some insurers will not accept them.
  4. Although manufacturers’ requirements may be more lenient, insurance companies tend to require the same heat shielding and fireproof hearth as they would for a standard wood stove.
  5. If your stove has a power exhaust vent, many companies require a 1 foot projection of the vent from any combustibles (e.g. siding) through an approved thimble. Because power exhaust vents require electricity, several insurers require a battery backup or generator to prevent a puff-back in a power outage.

It’s always smart to ask your agent or insurance company before installing a wood-burning appliance. If you have any questions, contact Noyes Hall & Allen Insurance .

First Time Maine Homeowners Lead Real Estate Rebound

Posted on by admin

The number of Maine homes sold increased by 22.74% in September compared to the same month last year, the Maine Association of Realtors reported last week. While the Median Sales Price declined 6%, prices seem to be rebounding a bit. The decline in Median Sales Price indicates that homes in lower price ranges were moving faster than larger, more expensive homes. This is likely due to the influx of first time homebuyers responding to the government stimulus rebate program.

Graph of Home Sales in Cumberland and York County Maine July to September 2009 vs. 2008
Cumberland County fared better than the state average.

September’s results were the best of the quarter. From July through September 2009, 14.7% more homes sold compared to 2008, with the Median Sales Price 9.6% lower than last year. Cumberland County performed slightly better; 23.55% more homes sold this year, with a 6.1% drop in Median Sales Price.

First Time Home Buyers Must Act Soon!
Realtors report that first time homebuyers are driving the market, aided by government stimulus tax credits. Unless extended, this program will expire soon. Home sales must close before November 30 to qualify for the plan.

In our South Portland insurance agency, we’ve seen a similar trend. Many of  the homeowners insurance quotes we’ve delivered this summer were for first time homebuyers. We take extra time to help the new home owner understand homeowners insurance, closing costs and escrow procedures. We also work with lenders to make sure that there are no surprises at closing. Contact Noyes Hall & Allen Insurance for a no-obligation consultation: 207-799-5541.

Download the Maine Association of Realtors’ press release.

Maine Coastal Home Owners Have Insurance Options

Posted on by admin

Mainers who own homes near the coast – even as far as a mile from the shore – are having a harder time finding homeowners insurance.  Despite a quiet Atlantic hurricane season so far this year, Insurers are acting on more dire long-term hurricane predictions and historically poor loss history on the East Coast.

Most insurers are reducing their appetite for insuring coastal homes. Some are refusing to insure homes within a mile of the coast, even for customers they’ve insured for years with prior homes. Those companies that do insure coastal property may require higher deductibles or charge higher rates than in prior years.

At Noyes Hall & Allen Insurance, we’re fortunate to represent many insurers, and have access to many more. We still have preferred options available for coastal homes if it’s your primary home. If your homeowners insurance premium or deductible increase has gotten your attention, or if you’re buying a new home near the coast and finding insurance problems, call us at 207-799-5541 or find live support on our web site .

Secondary and seasonal homes on the coast are more difficult to insure. We recommend that you contact the insurer of your primary residence to see what options they might have available for your vacation home. Otherwise, your insurance options will likely be limited. The pricing and coverage terms will probably be less than desirable.

Top 5 Mistakes of Maine First-Time Homeowners

Posted on by admin

If you’ve made the decision to buy your first home or condo, congratulations! Although it’s a big, sometimes scary step, home ownership remains one of the smartest long-term decisions you can make if you plan to remain in the area for some time.

If you haven’t discovered it already, you’ll have a long “to-do” list prior to your closing, and plenty of advice from friends and strangers alike. Insuring your new home may merely be another item to check off your list. Unfortunately, that can lead to common mistakes which can easily be avoided. As a Maine insurance agency, we’ve seen most of them before:

1. Satisfying the Bank
Your lender requires proof of “hazard insurance” before closing to protect their asset – not yours. They’re happy as long as your insurance covers the amount of your mortgage. The problem is, you may be buying too much insurance – or not enough. A good insurance agent (may we suggest Noyes Hall & Allen?) will help you determine the amount of insurance necessary to rebuild your home, which is usually different than your mortgage amount.

2. Thinking Your Home is Your Largest Asset
You’re probably buying your home with a relatively small down-payment -likely less than 20% of the purchase price. You’ll make monthly payments over decades to repay your loan. Where will that money come from? Your future earnings, of course!

Your home isn’t your biggest asset; your future earnings are!  How do you protect those?

  • Liability insurance to protect your other assets – including future earnings – from judgement for legal damages, from someone slipping on the stairs to your dog biting a neighbor. Don’t cheap out on liability coverage when you buy your Maine homeowners insurance. It doesn’t cost much, but can make the difference between unfortunate occurrence and catastrophe.  Talk to an agent you trust, and listen to their advice.
  • Life insurance and disability insurance can replace your income if you or your co-borrower die or are unable to work prematurely. You don’t have to buy them before you buy your house, but most people either forget afterwards, or think that they can’t afford it later.

3. Thinking “Fire Insurance”
Fire isn’t the most common cause of damage to your home. Water is. We insure thousands of homes and condos. Fewer than 20 a year will experience a fire, but several dozen will experience water damage, theft or wind damage. An “off the shelf” homeowners policy doesn’t cover such common occurrences as water backup in the basement, a diamond falling out of its setting, or removal of fallen trees that don’t strike a building.

Don’t buy your insurance on price alone. Talk to an experienced local independent insurance agent about what’s covered – and what’s not.

4. Compartmentalizing
You have a lot on your plate when you’re buying a home, which can cause you to do the minimum amount of work to get each task done. That can cost you a lot of money.

Most insurance companies offer significant insurance discounts if they insure both your home and your car. This can save the average homeowner hundreds of dollars a year. Spend an extra 20 minutes to get a car insurance quote at the same time you get your home insurance.

Even better: contact a Trusted Choice® independent insurance agent, who represents several insurance companies. Let them do the shopping for you. If you’re in Southern Maine, Noyes Hall & Allen would be happy to provide this service.

5. Failing to Keep Up
Even if your insurance fits you like a glove when you buy your home, it can be like last year’s pants before you know it. Maybe you’ll acquire jewelry, expensive hobby or sports equipment, or start a small business from home. Maybe your kids will go off to college, or you’ll inherit something. All of these common life events can result in an uncovered insurance claim if you don’t have a regular conversation with your insurance agent.

All the more reason to buy your insurance locally from someone who’s likely to be there for the time you’ll own your home. Sound like anyone you know?

Buying, Selling or Renting? Better Know About Maine’s New CO Detector Law

Posted on by admin

  Beginning November 1, 2009, a new Maine law requires smoke detectors and carbon monoxide detectors in every rental property, and in any residence purchased after that date.

 

As always, insurance companies will allow Homeowners insurance discounts for smoke detectors and other protective devices.

Detectors Required

    • Must be 120V with battery backup and powered by the building’s electrical system.
    • Plug in units are acceptable, as long as they have a battery backup.
    • Detectors must be in each unit, near bedrooms for apartments or rental homes – even seasonal or occasional rentals.
    • Must be photo-electric type if located within 20′ of a kitchen or bathroom.

 

Buying a Home?

Buyers (not sellers) must certify that these detectors are in the property in order to close on a purchase & sale agreement. The Maine Dept. of Public Safety is drafting a certification form which will be used for this purpose.

For more information:

 

Should You Insure Your Maine Middle Schooler’s Laptop?

Posted on by admin

As another school year begins, our clients who are parents of middle school students are asking us about insuring the laptop computers issued through the Maine Learning Technology Initiative. As a Maine insurance agency, Our understanding is that the State does not have a “blanket” insurance program; however, many school departments appear to offer separate insurance coverage.

Apple laptop In general, we recommend that our clients buy the coverage through their child’s school. Here’s why:

  • School property – The laptop belongs to the school, not the student. Therefore, it’s not considered owned personal property as defined by a homeowners policy.
  • Lower Deductible – The standard homeowners insurance deductible is $500.00. Most school programs feature a $50.00 deductible.
  • Broader coverage – Most homeowners policies don’t cover such perils as dropping the computer, closing it in a locker, etc. The school contracts we’ve seen cover most damage, unless it’s intentional and willful.

Each school insurance program has restrictions; for example, some prohibit taking the computer out of Maine. Be sure to read yours before choosing how best to protect your child’s computer. For more information, contact us at Noyes Hall & Allen at 799-5541.

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

Posted on by admin

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!

Posted on by admin

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!