Personal Insurance

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.   
  

Kyle Causes Suspension of Binding Authority

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Insurance companies suspend agents’ authority to bind any new coverage or to increase coverage on buildings, vehicles or other property when an area is under a “severe storm warning”. This includes

  • Gale Warnings
  • Tropical Storm Watch or Warning 
  • Hurricane Watch or Warning. 

 As a result, we expect to  be unable to bind coverage for most of the weekend.  

Our 24/7 claim service will be available as usual. Call our office at 207.799.5541 for instructions. 
For instructions on how to protect your property in the event of a storm, visit the Insurance Information Institute’s Disaster Preparedness page. 
Be safe this weekend!

A Useful Site to Learn About Insurance

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The National Association of Insurance Commissioners (NAIC) has produced a consumer-friendly educational site that we recommend to anyone wanting to learn more without any sales pressure, implied or otherwise. 

Many people like to do their research online before consulting with an agent or buying insurance. This site is especially good, because it's created by regulators, who 
  1. Don't sell insurance; and
  2. Are charged with protecting consumers.   

Check it out! 

Inheriting Property in Maine – Does the Estate’s Insurance Policy Protect Heirs?

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2466829142_3c71a3e808_oMany clients ask us how to insure Maine property that they inherited. There are so many scenarios that it’s hard to generalize. Here are three we see often.

If Your Parents’ Property is Insured

When someone dies, their property in Maine becomes part of their estate. Most insurers will continue their Maine homeowners insurance or condo insurance until the policy expires. The insurance company wants to know who is looking after the property and protecting it from loss.

If the estate isn’t settled before the insurance policy expires, many insurers will refuse to renew. In that case, heirs must buy a new policy in the estate’s name, often with a surplus lines insurer. If the insured property is a vehicle, the Maine auto insurance company will ask where it is, if anyone is driving it, and what the plans are for the vehicle. They will make an underwriting decision accordingly.

If Your Parents’ Property is Not Insured

Too often, heirs or probate attorneys discover that one of the estate’s largest assets, the home, is uninsured. Insurance companies aren’t eager to insure previously uninsured properties. Homes without continuous insurance pose higher risks of damage. The policy may only be needed for a short time. Both scenarios are unattractive to insurance companies. Often a surplus lines insurer is the only available market.

If Probate is Cleared and You Have Inherited the Property

If you are the sole owner, simply insure it as you would your other property or autos. If you plan to use it as income property, you can buy a Dwelling Fire or business property insurance policy. If you intend to use it as a seasonal or secondary home, you can usually insure it on a personal policy.

Sometimes several members of the same family inherit property. Other times they create a trust to own inherited property. Some insurers will provide a personal policy in the name of a trust. If siblings inherit shared ownership, one buys a policy and includes the others as “additional insureds”. They all share the policy to protect their property interest and liability exposure.

Each Estate Situation is Different

Consult an attorney familiar with estate law, as well as your Maine insurance agent. Together, they will help you protect your interest and obligation in the property. If you want to insure property that you have inherited in Maine, contact a Noyes Hall & Allen Insurance agent in South Portland. We can help you evaluate your insurance options.

Does My Maine Homeowners and Auto Insurance Cover My College Student?

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2542619678_07b45bfae6_2 This weekend, we move one of our kids back to college. He’s excited to re-join his friends and regain his independence that was suspended when he moved back home for the summer. We suppose that there’ll be some actual education taking place, too. It’s a big change for our family, not to mention our grocery bill.

So what does a Maine insurance agent do to his home insurance and car insurance policies when his kid goes off to school? This year: nothing. Next year may be different. Here’s why.

Home Insurance
Your Maine homeowners insurance covers you and “members of your household”. As long as he lives in a dorm and returns home every summer, he meets that definition – even though he’s over 18 and a legal adult. So, his computer, TV and other stuff are covered by our policy. Our liability coverage also follows him – which is handy given the behavior of 20 year-old males sometimes. 38457170_0a034cb1df_2

Next year, he might do a semester abroad. Would our homeowners policy cover him then? Yes, as long as he still is a resident of our household (i.e. lives at home on school breaks and vacations).

What if he rents an off-campus apartment next year? Well, that probably changes the rules. If his name is on a lease; if he stays year-round in the apartment; or if he no longer lives at home, then he’s not a member of our household. He needs to buy a renters’ insurance policy from a local independent agent. Cost: about $150 per year.

This fall, a new development in Portland called Bayside Village opens. They’ve been advertising on MTV, and set up a sales office next to a local pizza joint. It makes me wish I could go to college again! Bayside Village will house students from several local colleges. It offers access to public transportation and downtown Portland. Its furnished apartments include most utilities. It’s a lot like a dorm, but is unaffiliated with any school. Our advice for clients: don’t rely on your homeowners policy to protect you here – get a renters’ insurance quote.

Auto Insurance
Our son is not taking a car with him to school. Our insurer gives us an auto insurance discount (or draws a little less blood) for this. We don’t have to tell our insurer when he’s home for the summer or on break, and using one of our cars. Our Maine car insurance quote already presumes that he’s using our vehicles when he’s home.

Two of his roommates have cars at school. What if he’s successful in convincing us that he needs a car to “get a job”, “get an internship”, “come home for visits” or “get food”? Then, we have to tell our insurance company that he has a car at school. Adios discount, hola higher premiums!

What about that semester abroad? Would he be covered by our auto policy to drive a car in another country? Not on your life!

Keep in mind that your policies could certainly be different from mine. Contact your own Maine insurance agent with questions about how to best cover your situation.

New Urbanism in Portland Maine? Micro-housing, Carsharing and Other Trends

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A Portland developer hopes to cash in on the current appeal of chic city housing, with an innovative proposal for the corner of High and Danforth Streets. The building would contain 26 “micro units” – each 450 to 800 square feet – with shared lounges, laundry, and even guest rooms. One of the most intriguing features of the project is the concept of the condo owners sharing use of commonly-owned vehicles.

Publications as diverse as the Wall Street Journal and The Atlantic Monthly have noted the trend to “downsize” housing from the suburban McMansions that were built in the past 15 years to smaller spaces closer to town. The movement has been dubbed “micro-housing” by some, the “not so big house” by others.

Nudged by recent increases in home heating and gasoline costs, along with smaller household sizes as the Baby Boomer population pig pushes through the demographic python, many Americans are looking to downsize, and lots are looking to move closer to cities’ amenities, health care facilities and social life.

Which brings us back to the northeast corner of High and Danforth Streets in Portland, Maine.

Looking at this lot, it’s hard to imagine how one could squeeze 26 condo units (and the residents’ cars) onto it. The short answer is, it’s impossible, without thinking differently. Picture a building owned by an association of 20-somethings who may be buying their first real estate, and work within walking distance; older singles (50-60) attracted to downtown amenities; and out-of-towners seeking a Portland pied-à-terre. Imagine only 14 parking spaces under the building for those 26 units, two of which are for shared vehicles.

Green types applaud the project’s low-impact, pedestrian-centric design. Affordable housing fans like the promise of home ownership for those who might otherwise be shut out. New urbanists like the community orientation and the opportunity for people to walk to work, and “third places”. For developers, it allows maximum profit from a minimum parcel. And, because of the small sizes of the units, municipalities have considered variances to normal parking requirements.

For some people, this is a great idea. But it does pose some practical issues, not the least of which is how to insure them. More about that in our next post.

Questions about Maine condo insurance, homeowners insurance or Maine business property insurance? Want to get an insurance quote on your property? Contact Noyes Hall & Allen Insurance at 207-799-5541.

Do You Need Flood Insurance in Maine if You’re Not in a Flood Zone?

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2008 was one of the wettest summers in Maine in 20 years. Several storms dumped more than an inch of rain each, causing flash flooding and washing out roads. This caused traffic accidents and property damage. This followed one of Maine’s snowiest winters, which caused massive flooding in Aroostook County.

Unfortunately, many people find out the hard way that Maine homeowners insurance, business property insurance and condo insurance policies do not cover flood damage. The most common provider for flood coverage in the U.S. is The National Flood Insurance Program (NFIP). The product is sold by nearly every Maine insurance agency.

As many Mainers learned this summer, you don’t have to live next to a body of water to suffer from flooding. NFIP says that 25% of flood claims come from “low to moderate risk areas.”

Take a look at this video taken on Stevens Avenue in Portland taken earlier this month.

Note: Stevens Avenue in Portland is 100’ above sea level, flat, and miles from a body of water.

For those in special hazard zones, flood coverage can be expensive – often more than homeowners policies. Lenders usually require homeowners to purchase this coverage. Outside of these special hazard zones, the cost of flood coverage is much less – often as little as $200 per year.

For more information, contact your agent at Noyes Hall & Allen Insurance at 207-799-5541.

Alternative Heat: Burning Wood

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Rising heating oil prices have Mainers thinking about the cold of winter in the middle of summer. Firewood supplies are scarce, and prices high, the newspaper reported last week. Consumer advocates are warning about unscrupulous dealers and unsafe wood-burning practices. Even Gov. John Baldacci is using his bully pulpit to spread the word.

Maine insurance agents and companies have been concerned for a few years about the prospect of paying more Maine homeowners insurance claims due to fires caused by inexperienced woodstove operators. Presque Isle’s MMG Insurance has some of the best material, from a two-page brochure (pdf) to a 13 page manifesto (available upon request).

If you’re thinking of burning wood, check them out.