A quick bit of home maintenance this fall can prevent the headache of ice dams this winter. For more information about Maine homeowners insurance, call Noyes Hall & Allen at 207-799-5541.
Renters Insurance
Maine Homeowners – Thinking About a Pellet Stove?
Pellet stoves are hot. Over 50% of stoves bought in the U.S. in 2008 were pellet-fueled, according to the Pellet Fuels Institute.
Any 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
- Make sure your stove is UL listed. Many U.S. insurers will only insure American or Canadian built pellet stoves.
- 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.
- Avoid an appliance that is capable of burning Standard PFI rated pellets. Some insurers will not accept them.
- 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.
- 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
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.
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
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.
Buying, Selling or Renting? Better Know About Maine’s New CO Detector Law
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:
- Maine Fire Chiefs’ Bulletin about the new law.
- YouTube Video by ME Association of Realtors
- Maine Homeowners Insurance quotes from Noyes Hall & Allen Insurance
- Contact Noyes Hall & Allen Insurance Agency.
Should You Insure Your Maine Middle Schooler’s Laptop?
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.
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
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.
- South Portland – Steve Puleo – 767-7648.
- Portland – Penny St. Louis Littell – 874-8719
- Cape Elizabeth – Bruce A. Smith 799-1619
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!
If 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.
- 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
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.
EVERY Property is in a “Flood Zone”
Many people fail to purchase flood insurance when they buy a property. Some believe that their Maine homeowners insurance will cover flood damage. It won’t. Others think that because their lender hasn’t required them to buy flood insurance, they’re not in a “flood zone“.
Every Property Can Sustain Flood Damage
Some properties are more flood-prone than others, of course. Ocean- or river-front property is more likely to flood than homes located on higher ground. The good news is that it’s relatively inexpensive to buy flood insurance if you live in a low risk area.
What is a Flood?
The word “flood” conjures up images of rising rivers and streams, or ocean storm surges. Those are floods of course, but so are: snowmelt runoff; dam breaches; heavy rains; and flash floods. All of those things can and do occur in Maine. Here’s a list of past flood disasters in Maine, which doesn’t include some notable recent events.
Remember the heavy rains of August, 2008 that flooded several southern Maine areas? Many property owners in the affected areas had never experienced flooding before.
Mandatory 30 Day Waiting Period
Let’s say you’ve heard weather forecasts of heavy runoff from snowmelt. Concerned about your property, you call to buy flood insurance to protect your home. The government knows that many people who would buy such coverage may be in imminent danger. That’s why they require a 30 day waiting period for coverage to take effect – unless you’re buying property and coverage is required by your lender.
That means now is the time to think about buying flood coverage – not when the river’s rising.
Flood insurance is only available through the National Flood Insurance Program, a government program managed by FEMA, and available through virtually any Maine insurance agency. Contact Noyes Hall & Allen Insurance for a quote. For more myths and facts about flood insurance, download this brochure.