Renters Insurance

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.   
  

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.