Renters Insurance

Does Homeowners Insurance Cover Jewelry?

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an engagement ringDuring the holidays, many people unwrap something small and sparkly.  Most think that their jewelry is covered by their Maine homeowners insurance, renters insurance or condo insurance. They’re partly right.

Automatic Jewelry Insurance on Your Homeowners Policy
“Off the shelf” homeowners policies do cover jewelry against perils such as fire, windstorm or vandalism.   But that stuff doesn’t happen very often. Theft of jewelry – the most common peril – is limited,  often to $1,000 total.

“That Stinks!” – Why Do Insurance Companies Limit Theft of Jewelry?
Theft of jewelry (and firearms, furs, fine art, money, and other “special classes” of property) is limited for 2 reasons:

  1. Everyone’s Maine homeowners insurance rates would go up to pay for these losses if coverage was automatic.
  2. Not everyone collects those things. You don’t want to pay more so that I can have automatic jewelry coverage, and I don’t want to pay to insure your hunting rifles.

So, everyone has to insure their own jewelry, guns, etc. In insurance jargon, that’s called “scheduling jewelry”, because each piece is listed and valued separately. That list is known as a “schedule”.

4 More Reasons to Separately Insure Your Jewelry

  • Jewelry Insurance Is Cheap – How much does jewelry insurance cost? A common annual rate is $7.50 per $1,000 of value. That means insuring a new $2,000 piece would cost you about $15.00 a year.
  • It covers other perils – Homeowners insurance doesn’t covers losing a gemstone from a ring, or losing the entire ring, but it is covered when you buy jewelry insurance. This is actually the most common kind of jewelry insurance claim – even more common than theft.
  • It establishes the value of your jewelry before a loss occurs.  This protects you as well as the insurance company, and streamlines claim settlement. On larger pieces (usually over $5,000 in value), insurers will require an appraisal to add it to the schedule.
  • There’s no deductible on jewelry insurance.

Jewelry insurance can be added to your Maine renters insurance, homeowners policy or condo unit owners insurance. For more information, contact your Noyes Hall & Allen agent at 799-5541.

Is Tree Damage Covered by a Maine Homeowners Policy?

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Last night’s powerful windstorm has made this the most popular question of the day. Our clients seem to be most concerned with three questions:

Is Wind Damage to Trees Covered?

Generally, no. Most Maine homeowners insurance policies do not cover replacement of the trees themselves. Trees are usually covered (up to $500 per tree) for other named perils such as vehicle damage, fire, theft, and vandalism – but not wind.

Electric meter ripped from house by wind
Electric meter pulled from house by falling limbs

Is Tree Removal Covered?

Your  homeowners policy does cover the removal cost of a fallen tree if it damages a covered strucure (such as your house), subject to a limit (often $500 per tree, $1,000 per incident). Your policy may have coverage for tree removal if it does not damage your property, but blocks your driveway. Very few policies cover tree removal if no structure is damaged, and your driveway is not blocked. Contact your agent to find out how your policy responds.

Am I Covered if My Neighbor’s Tree Falls on My Property?

If your property is damaged, Maine homeowners policies cover you the same whether the tree was yours or your neighbor’s. Usually, there is no legal liability for damage to others from trees that showed no prior signs of being unhealthy.  If the tree was known to be dead, the property owner might be deemed negligent and liable for damages. In that case, the personal liability insurance section of your homeowners or Maine umbrella liability insurance policy may respond. For more information about this, see our July 23 blog post: Does Your Maine Insurance Policy Cover Wind Damage?

For answers to your property insurance questions, contact Noyes Hall & Allen Insurance at 207-799-5541.

Is Water Backup Covered By Your Maine Homeowners Insurance?

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Today’s weather is miserable: gale winds, inches of rain, and flooded streets caused by drains clogged with fallen leaves.

Our clients’ most common claim call on days like this sounds something like this:

“We lost power, and my sump pump didn’t work. Water backed up through the drain in my basement, and flooded it.”

 

Sadly, Maine homeowners insurance doesn’t cover water backup, unless you purchase extra coverage. The available coverage and cost varies from insurer to insurer, but is commonly about $75 a year for $5,000 in coverage. This coverage is also available for your condominium insurance policy.

Of course, if you have a finished basement, you will want to ask about higher limits of water backup insurance. For a Maine homeowners insurance quote, or more information about home, condominium or renters insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

The Case of the Lost Engagement Ring: Insurance Saves the Day!

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Did you read or see the TV news story about the couple’s engagement that went awry when the $9,000 diamond ring fell into the ocean on Cape Cod, and could not be found?

Insurance Saves the Day
The good news is that the groom’s mother had contacted her local insurance agent , and insured the ring – without his knowledge -the day he bought it.

The Lesson
Loss of jewelry (or a stone from a ring) is not covered by most Maine homeowners insurance policies, unless you buy specific coverage. Your Maine insurance agency may call this “scheduling your jewelry”. It’s not expensive: this ring would have cost less than $70 a year to insure.

Until it’s given, the ring belongs to the groom, and can be insured on his policy. It’s usually scheduled on the bride-to-be’s policy after she’s received it. If you’re not a homeowner, you can buy a Maine renters insurance policy and schedule the ring there.

If you have questions about insuring your property, Maine car insurance, or other ways to protect your assets, contact Noyes Hall & Allen Insurance at 207-799-5541.

Garage Fire Prevention – 3 Tips to Protect Your Home and Autos

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Two Southern Maine families were startled awake in the middle of the night by the smell of smoke, and the nightmare of a fire. Fortunately, no one was hurt in either case, but there was extensive damage to their properties. In each case, the fire started in a garage.

Fire damage is covered by Maine homeowners insurance. Damage to vehicles is not. To have vehicle damage covered, You need to purchase “other than collision” coverage on a Maine auto insurance policy. Hopefully, both of these families did have insurance to help them rebuild their homes and replace their vehicles. Of course, the best fire insurance is of all is prevention and avoidance. Here are a few tips to help prevent garage fires and to reduce damage if one should occur.

Fire Needs 3 Things to Exist
Fire  can not exist without oxygen, heat and fuel. If you can prevent those three from being together at the same time, you’ve greatly reduced your fire risk. Here are a few tips to help improve your chances.

Store Items Safely

  • Allow gasoline-powered tools to cool completely before putting them away. Store them a safe distance from combustibles. Remove remaining grass from mowers, line trimmers, etc. before storing them.
  • Never use grills, outdoor fryers, or any other cooking appliance in your garage.
  • Store combustibles away from any source of heat.
  • Use a metal cabinet with a closed door to store flammables like gasoline, wood finishes, spray paint or thinner.

Get Proper Safety Equipment

Fire Extinguisher
photo credit: www.usarak.army.mil

At a minimum, your garage should have a fire extinguisher. It’s also a good idea to have a smoke detector in the garage, especially if it’s attached to your home. Your town or city may have other codes or ordinances. Check with your local Code Enforcement Department.

Use Safe Workshop Practices

  • Sweep wood chips and sawdust immediately after cutting or sanding wood.
  • Seal paint cans and containers of finishes and solvents, and store them away from flammables, preferably in a metal cabinet.
  • Dispose of oily rags in a steel bucket with a closed lid. If you need to re-use them, you can also hang them on a line with good separation between them, far away from any heat source.

Does Your Maine Insurance Policy Cover Wind Damage?

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The National Weather Service confirmed on Thursday what many Mainers knew Wednesday night: tornadoes touched down in southern Maine, causing widespread damage. Our Maine insurance agents have been busy answering clients’ questions about damage ranging from fallen trees to wind damage – even lightning damage. Their first question, of course: “Does my insurance cover my windstorm damage?”

Whether you have Maine homeowners insurance, auto insurance, or business property insurance, the answer is usually “yes”, subject to the level of property coverage and deductible on your policy.

Windstorm Coverage in Maine
A tornado is just wind – vicious, frightening, powerful, damaging wind whirling in a funnel cloud. Many insurance policies cover wind damage to buildings or vehicles. It doesn’t matter if it’s caused by a gale, nor’easter, tropical storm,  hurricane, microburst or tornado. Some limited policies exclude wind damage – again, it doesn’t matter what kind of storm caused it.

Types of Wind and Storm Deductibles
Every property and auto policy has a deductible. On personal and commercial vehicle  insurance policies, wind is covered if you purchase “other than collision” (sometimes called “comprehensive”) coverage.  This coverage varies by vehicle.

Some property insurance policies have specific deductibles for wind. In Maine, it’s common to see these types of storm deductibles (from least to broadest insurance coverage):

  • “Wind Deductible” – Any wind damage is subject to a flat dollar deductible – usually a higher amount than your normal deductible,  or a percent of the amount of your property insurance.
  • “Named Storm Deductible” – Any damage caused by a storm that the National Hurricane Center has given a name is subject to a special deductible (see “wind deductible” above for some examples). Other wind damage is covered, subject to the regular policy deductible.
  • “Hurricane Deductible” – Any damage caused by a true hurricane is subject to the special deductible. Other wind damage is covered, subject to the regular policy deductible (usually a smaller deductible).

Insurance companies have different criteria for underwriting the peril of wind damage. A Maine independent insurance agency has access to many insurance companies, which gives you the most options.

We’re happy to answer your questions about property insurance for your home, auto or business. Contact Noyes Hall & Allen, or call us at 207-799-5541.

Update: Maine Flood Insurance Re-Authorized until May 31

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For the second time in a month, The National Flood Insurance Program lapsed on March 28 due to lack of continued federal funding. The Senate left for Easter recess until April 12 without addressing HR4851, which would have offered an extension. This leaves anyone looking to buy Maine flood insurance – or in any other state – high and dry, in the height of flood season.

If You’re Buying a Home and Need Flood Insurance
Flood insurance servicing companies are collecting applications, but cannot accept them or bind coverage until the NFIP is re-authorized by the Senate. If your lender requires proof of flood insurance, this may delay your closing. Talk to your lender for more information. You literally can not buy flood coverage without an act of Congress.

If You Already Have Flood Insurance, and Need to Make a Claim
Claim payments  will be continued as usual for all policies currently in effect.

If You Have Flood Insurance and Need to Increase Your Coverage
Coverage cannot be increased on existing policies until the NFIP is reauthorized. This may delay a loan closing if you are refinancing or taking out a home equity loan.

If Your Flood Policy is About to Renew
Renewal policies can not be issued during the lapse. Many companies sent renewal bills prior to March 28. If you received a bill and paid it, your coverage should be in force. If your premium was not paid before March 28, coverage cannot be bound until after the NFIP is reauthorized by Congress.

What You Can Do
The NFIP is the only primary flood insurance available for residential properties. Many insurers have a servicing contract to issue business on behalf of the NFIP, but it is a government program. Without reauthorization, the program is essentially shut down. Call or email your senator to let them know what this lack of funding means to you. While there’s no guarantee, the NFIP reauthorization will likely be retroactive to March 28 – once it’s finally passed. That’s usually what happens in these cases.

Even during normal operation, the National Flood Insurance Program operates differently than most insurance programs. There are waiting periods and underwriting rules and requirements that are unique to this program. It’s impossible to advise you about your individual situation with a blog post like this. Call a Maine homeowners insurance agent for advice about your own insurance.

UPDATE:
As of April 15, 2009, Congress passed, and the President signed into law, a bill reauthorizing the National Flood Insurance Program (NFIP) until May 31, 2010.  The extension included retroactive funding to cover two gaps in the program (March 1 – 2 and March 29 – April 15, 2010). The program will expire again on May 31 unless it is further extended. Stand by!

Is the City Responsible for Your Sewer Backup in Maine?

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There are few nightmares for Maine homeowners more unpleasant than a sewer backup in the basement. We don’t need to go into details about sewer backups. Suffice it to say, we hope you’ve never seen one, and never will. Unfortunately, they’re all too common in heavy rains.

What Causes Sewer Backup?

  1. Sewer lines become full of groundwater or storm water, and back up, usually through basement drains.
  2. Line blockages in the street cause a backup.
  3. Tree roots or some other obstruction on your property blocks the line from your home to the street.

How Can I Prevent a Sewer Backup?

The most common protection is to install a backflow valve. This is designed to allow sewage to flow out of your home (“the good way”), but not from the street into your home (“the bad way”). These are sometimes called check valves or flap valves. Gate valves are manually operated, and completely seal the pipe leading from your home to the street. A plumber can recommend the best solution for your home.

What if I Have a Sewer Backup?

  1. Call your city’s sewer maintenance department.
  2. They will check the line in the street near your house.
  3. If the line is not found to be blocked, you should call your plumber.
  4. We do not recommend trying to clean your own home after a sewer backup. Call a qualified remediation contractor. Search for “sewer or water cleanup contractor”.

Is the City Responsible for My Property Damage?

Probably not. The Maine Tort Claims Act holds your city responsible only if they were negligent in maintaining the lines. Most municipalities have strong maintenance programs for their systems. They’re not responsible for people dumping inappropriate items into the system, such as grease, non-flushable items, or debris. If you think that the damage was caused by your municipality’s negligence, contact their legal department.

Does My Homeowners Insurance Cover Sewer Backup?

“Off the shelf” Maine homeowners insurance policies do not cover property damage from backup of sewers or drains. Optional coverage is broadly available from your Maine insurance agent. For more information about sewer backup insurance, homeowners insurance or other storm insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

February 25 Maine Wind Storm Damage Update

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Our Maine insurance agency has been very busy taking claims and reporting them to insurance companies, and keeping our clients informed of the progress of their claims.

So far, the damage that’s been reported to us has been mostly concerned with homeowners insurance: trees falling on property and wind damage to buildings, followed by water backup into basements. Many Mainers lost power, which caused their sump pumps to fail, allowing water to back up into their homes.

pie chart of claims reported to Noyes Hall & Allen Insurance

What kind of damage did you have to your property?