Personal Insurance

Should You Insure Your Maine Middle Schooler’s Laptop?

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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

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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.

We Fix $9.00 Haircuts

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There’s an old story about a hair stylist who ran a successful business by providing consistent service at a fair price. His business grew, and his customers returned year after year. His shop was a fixture in the community.

One day, a discount chain hair salon opened across the street. They put up a big banner in their window: $9.00 HAIRCUTS!

Soon, the stylist noticed that he wasn’t as busy. His phone didn’t ring as much, and walk-in business was down. He saw some of his customers walking into the discount shop across the street. He wondered how anyone could possibly make a living cutting hair for $9.00, and he felt disappointed that his customers were wooed so readily by a low price.

Then, one day it occurred to him. He went to the local sign maker and had his own banner made. He proudly hung it up in his own front window.

It read:
WE FIX $9.00 HAIRCUTS

Think about that the next time you’re shopping for a product or a service. There’s a difference between a low price and a good value. If you understand that difference, maybe you should talk to Noyes Hall & Allen about your insurance.


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!


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.


Is Ice Storm Damage Covered by Maine Homeowners Insurance?

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Northern New England was clobbered by an ice storm December 12 that closed schools and businesses (including ours) and knocked out power for over 200,000 Mainers. It brought back memories of Ice Storm ’98, the effects of which are still evident in Maine’s woods and the psyches of its residents.

 

Like the ’98 storm, this one left many people without electricity for several days – some are still without power 3 days later. Fortunately, this storm wasn’t followed by the bitter cold of a decade ago, which seems to have spared many from the misery of frozen pipes. Nevertheless, our office has been busy fielding insurance claims and stories of misfortune.

 

Here are some of the most common situations we’ve seen, and how most insurance policies respond. Of course, this is general information and NOT to be taken to indicate coverage (or lack of coverage) for any individual. To find out if you have coverage, refer to your own insurance policy, agent and company. Also, remember that your property deductible (often $500 or $1,000) applies.

 

Icy berries2
  • Tree falling on your house. Most homeowners policies pay the cost to remove a tree that damages a covered structure (including sheds, etc.), and the cost to repair the damage itself.
  • Tree falling on your car.  Your home policy doesn’t cover this – but your auto policy might. The key is whether you have “comprehensive” (your policy probably calls it “other than collision”) coverage on the vehicle. If so, do a happy dance.
  • Water in your basement. We’re talking about water backing up through a sump hole, usually because the sump pump stopped working when the power died. This one’s far less certain. Homeowners policies don’t cover this unless you buy extra coverage. Companies call the endorsements by different names, but if you’ve bought it, you’ll probably see something like “Water Backup” or “Backup of Sewers and Drains”. We’ve regularly recommended this coverage through newsletters, mailings and blog posts.
  •   Frozen Pipes. The water damage from frozen pipes is covered by most homeowners policies. The cost to repair the pipes themselves is not.
  • Food Spoilage. This usually is covered only if you bought a special endorsement (it’s often packaged with water backup coverage). Even with the extra coverage, it’s usually limited to $500 or so.
  • Cost to rent or buy a generator. Sorry, this one’s not generally covered. Even though you’re getting the generator to keep you from having one of the other claims listed above, it’s considered to be preventative (like having a smoke detector or fire extinguisher to prevent fire claims).

These are just a few scenarios we’ve seen since Friday’s storm. If you have questions about your individual insurance, refer to your policy or consult your agent (preferably, both). In a future post, we’ll talk about how to prepare for some of these disasters, and what action you should take if it happens to you.

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.

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.