Weather

You Can’t Guarantee The Weather – But You CAN Insure It!

Posted on by admin

Many southern Maine jewelry store customers were hoping for snow on Christmas Day. Why? A local jeweler ran a well-advertised promotion promising free jewelry if it snowed on December 25. How can they afford to take that chance? We don’t know for sure, but we hope they consulted their local Maine insurance agent. While our agency had nothing to do with this promotion, we have helped clients reduce their risk by selling them weather insurance for special sales or events.

Can a Business Insure Against Bad Weather?

You bet! Let’s say your business plans an open house or a big one-day sale. You advertise heavily for 2 weeks before. You buy extra inventory, and add extra staff to take care of demand. But, a heavy snow storm keeps your potential customers at home, and you lose a lot of money. Or, you could buy a weather insurance policy to help recoup part of those costs, and cut your loss.

Can a Business Insure Against a Rainy Summer – or a Warm Winter?

What if your minor league baseball team suffers through a rainy summer? Or your tubing hill business encounters a warm, dry winter? Your organization might lose all sorts of same-day revenues: walk-up tickets; concessions; parking income, and more. A customized weather policy might pay a set amount if more than a certain number of game days have a specified amount of rain. A snow-area business could insure a mild winter in the same way, thereby stabilizing their income.

How Does Weather Insurance Work?

Like a good news article, weather insurance addresses the 4 W’s: What, When, Where and Who. As long as the event is measurable and the terms are specific, it can be insured. The price depends upon the terms. For example, if 6 inches of snow fall at a specific address in Portland, ME between 12:01 am and 11:50 pm on December 25 as measured by the National Weather Service, the insurer pays an agreed amount or percent of  a pre-determined period sales. Decrease the number of inches and you’ll pay more premium; shorten the sale period, you’ll pay less.

Fifteen Businesses That Might Buy Weather Insurance:

  • Florists and Nurseries – for big pre-season open house or important Spring and Fall weekends.
  • Candy Stores – The last few days before Valentines Day are key!
  • Golf courses – Insure against late snowstorms that can put a season on hold.
  • Baseball teams – Rainouts mean lost revenue.
  • Farmers’ Markets – Ever notice that it seems to rain EVERY Thursday?
  • Snowmobile dealers – Reduce the risk of overbuying inventory in a dry winter.
  • Ski resorts – It’s tough to make snow when in 40 degree weather. Even out budgeted revenue projections by insuring against warm weather.
  • Tour companies – It’s a short season already. One rainy month can cause disaster.
  • Car washes – Although I always seem to wash my car right BEFORE it rains, very few of us actually wash them WHILE it’s raining. A summer of rainy weekends means business lost forever.
  • Jewelers or Car Dealers – High-ticket items are perfect for attention-getting giveaway promotions.
  • Hotels & Motels – To level out income fluctuations when reservations are canceled due to weather.
  • Festivals and Events – They’re expensive to put on, and it’s often tough to have a successful “rain date”.
  • Beach parking lots
  • Film Production Companies

The possibilities are almost endless.

Where Can You Buy Business Weather Insurance?

Several online options offer “self-service” weather insurance. Being a Maine independent insurance agency, we recommend using the services of an agent or broker. It costs exactly the same.  A Maine  business insurance expert can help you determine your needs and work within your budget. They can also help you evaluate the market, to assure that the insurance company is reputable and financially secure. And, they can help you if you need to file a claim.

For more information about business weather insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

Space Heaters: How to Stay Warm AND Safe

Posted on by admin

It’s getting colder in Maine. With today’s high fuel prices, many of us try to delay turning on the heat as long as possible. For some people, that means using a space heater to “take the chill off”. As with any appliance, it’s important to know the associated hazards and best practices for avoiding them.

Fires and Burns

The Consumer Product Safety Commission estimates that space heaters are involved more than 25,000 home fires every year, causing more than 300 deaths.The SPSC estimates that another 6000 people, many of them children, visit emergency rooms for burns from touching hot surfaces.

  • Check the wires, fuel lines and tanks often to make sure they’re in good condition.
  • Keep combustibles at least 3 feet away from space heaters.
  • Leave your space heater on the floor, unless it’s designed otherwise.
  • If you smell gas, turn off all controls, open a window, and leave the area.
  • Propane is heavier than air. Avoid electrical switches or appliances if you smell gas. And, of course, no smoking!
  • Do not use electric space heaters in wet areas, such as the bathroom.
  • Keep children and animals away from space heaters.

Carbon Monoxide Poisoning

CO is an odorless, colorless gas produced by incomplete combustion of gasoline, natural gas, propane, kerosene, coal or wood. Symptoms of CO poisoning include:

  • Dizziness
  • Nausea
  • Headache
  • Fatigue
  • Weakness

Prolonged exposure can cause lack of coordination, confusion, loss of consciousness, and even death.

Modern space heaters (made after 1983) have sensors that automatically shut off the appliance if a reduced level of oxygen is detected. In addition, your best protection is a good, working CO detector.

If you have property in Maine, and have questions about home, renters or condominium insurance, our Portland area insurance agency can help. We’re locally owned, and represent many of  Maine’s best insurance companies. That means we can provide you with customized choices.  Contact a Noyes Hall & Allen agent for answers!

Here’s to a mild – and safe – heating season!

Do I Have to Wait for the Insurance Company Before Repairing Maine Storm Damage?

Posted on by admin

Hurricane Irene visited Maine yesterday. Fortunately, the southern Maine wind damage was mostly limited to fallen trees and limbs – at least judging by our clients who contacted us to report an insurance claim.

The most common claim question today is “A tree fell on my house. Can I remove it, or do I have to wait for the insurance company to inspect it”? As this prior post explained, fallen trees aren’t always covered by insurance. But, if a tree lands on your home or other structure, your homeowners or business policy probably covers both the damage it causes and the cost to remove it.

Generally, it’s fine to remove the tree from your home or driveway to assess the damage and to  make temporary repairs to preserve your property. You don’t need to wait for the insurance adjuster to see it; they can usually tell what happened by the scars that the tree or limb left behind.

5 Things to Do if a Tree Falls on Your Property

  • Document the damage with digital photos or video.
  • Take action to preserve your property from further damage. Remove the tree from the structure, make temporary repairs, or move property indoors.
  • Save damaged property for the insurance company to inspect.
  • Schedule – but don’t begin – permanent repairs. Repair contractors are very busy after a natural disaster. The earlier you schedule your job with a reputable, experienced and insured contractor, the better the chance of your property being repaired faster. Do not start repairs until the insurance company has a chance to see your damage.
  • Report your claim. Noyes Hall & Allen clients can contact an agent to start the process.

If you have questions about Maine homeowners insurance, condo insurance, renters insurance or insuring your Maine business property, call Noyes Hall & Allen at 207-799-5541.

Does a Maine Homeowners Insurance Policy Cover Hurricane Damage?

Posted on by admin

That may be the most popular insurance question of this week as Hurricane Irene curves its way toward the East Coast.

The Good News…

Most Maine homeowners insurance policies cover wind damage, wind-driven rain, damage to a home from falling trees, and other common types of hurricane damage.

BUT…

In the past 5 years, many insurers have introduced special deductibles for property located within a quarter-mile of the coast. Sometimes, the deductible applies only in the case of a hurricane, or other “named storm”. Other insurers’ policies have higher deductibles for all wind damage, even from a February nor’easter.

These deductibles are usually expressed as a “percentage deductible”. Common deductible percentages are anywhere from 1 to 3% of your property insurance amount. In other words, on a $250,000 home, a 2% wind deductible would be $5,000, and would apply to any wind damage.

You should check your own policy to find out what kind of deductible is on your homeowners, Maine renters insurance or Maine condo insurance policy, and how large that deductible is.

What About Other Hurricane Claims?

Standard homeowners policies do not cover damage from loss of power, such as food spoilage or basement water backup caused by a sump pump not working. Often, you can buy some power failure coverage.

Likewise, homeowners policies have little or no insurance coverage for fallen trees, unless they strike a structure or block a driveway. Some insurers sell endorsements that offer limited coverage for this.

Finally, flood damage is NOT covered by homeowners policies. You must buy NFIP Maine flood insurance to have flood coverage.

FMI

For more information about Maine hurricane insurance for homes, autos, condos, boats or other property, contact Noyes Hall & Allen Insurance at 207-799-5541. If you are already a client, and need to report a Maine insurance claim, visit our web site, or call the number above for instructions.

Avoiding Commercial Building Roof Collapse: Removing Snow from a Roof

Posted on by admin

This week’s snow has accumulated on the roofs of Maine homes and commercial buildings, increasing the risk of collapse and ice dams. The snow has finally stopped in Portland, Maine – at least temporarily. It’s a good time to evaluate whether you need to remove snow from a roof.

High-Risk Areas – Heavy Snow Load Can Cause Roof Collapse

  • Large, flat roofs, or those with less than a 30º slope.
  • Heavily insulated roofs
  • Roofs with previous structural damage or stress.
  • Shaded areas, where snow can freeze into ice.

Evaluate Your Commercial Roof Before Snow Load is Critical

  • Create a plot plan to identify skylights, drains and scuppers, wiring and equipment.
  • Monitor rooftop conditions throughout the winter to identify ice buildup, blocked drains and snow drifts.
  • Use experienced, knowledgeable employees or (preferably) hire an outside contractor.
  • Hire only experienced contractors who can provide proof of business general liability insurance.

Warning Signs of Roof Collapse

  • Improper operation of doors or windows.
  • Deflection of ceiling finishes or exposed beams.
  • Roof leaks
  • Sprinklers moved from their normal positions
  • If you notice these, contact a structural engineer or your local building inspector.

How to Safely Remove Snow from a Roof

  • Do not remove snow all the way down to the roof membrane.
  • Use plastic shovels – never metal – on your roof.
  • Fill a plastic tarp with snow and release over the side of the building, carefully watching where snow is landing to avoid people and property.
  • If using a snow blower, adjust to prevent rotating components from contacting the roof surface.

Most Maine business property insurance policies cover roof collapse. Policies do not typically cover maintenance such as snow removal or other prudent loss prevention measures. If you have questions about commercial building insurance, contact the experienced Maine insurance agents at Noyes Hall & Allen Insurance at 207-799-5541.

We’re proud to be agents of Acadia Insurance, MMG Insurance and Hanover Insurance,  whose loss control tips which were used in this blog post.

Real Claims: Is Your Property Insurance Ready?

Posted on by admin

In the last week of the year, everyone in the news, sports and entertainment world seems to present a “year in review”. We thought we would look at some of the claims our clients had in 2010. We’ll start with property insurance, in the hopes that it might help you manage risks and make decisions about your own Maine homeowners insurance or business property insurance.

When you report an insurance claim to Noyes Hall & Allen, we categorize them and engage your insurer for proper handling. Here’s a comparison of the property claims we initiated in the past 3 years. They give a good indication of the protection that your insurance provides.

Graph of property insurance claims for a Maine Insurance Agency

2010 – Four Strong Winds

If wind damaged your home, or tree limbs fell on your property last year, you were in good company. In a typical year, wind claims represent 10% of the total property claims reported to us. In 2010, it was 36%. From February to August to December, the coast of Maine was blasted by unusually strong winds.

2009 – The Water Was Wide

People usually think of fire insurance when they insure their property. But water damage is the most common property insurance claim in Maine. Normally, 35% of homeowners and business property claims report water damage. In 2009, it was almost double that amount. Frozen pipes, leaking pipes, ice dams, toilets, tubs and sinks overflowing – even burst washing machine hoses – are all covered by most Maine insurance policies. We saw them all in 2009. Fortunately, it was a quiet year for claims overall. The clear winter resulted in 15% fewer claims than usual.

2008 – Fire and Rain

Although 2008 brought a normal number of claims, we saw an unusual number of winter fires – typically the most expensive claims – and lightning damage from summer storms. Fire and lightning losses occurred at 3 times the usual rate.

What Deductible Should I Carry?

As these graphs show, property losses happen all too often. This means that you should choose a property deductible carefully. Pick the highest one that you can afford to pay out of pocket in case of a loss, in order to get the best insurance discounts available.

The table below shows the average cost of different types of insurance claims in our agency in 2010. Use this information to help you determine the best deductible for your budget.

Table of average property claims from Noyes Hall & Allen

For specific advice about your insurance situation, contact your Noyes Hall & Allen agent at 207-799-5541.

Is Tree Damage Covered by a Maine Homeowners Policy?

Posted on by admin

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?

Posted on by admin

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.

Is Your Maine Home in a Flood Zone?

Posted on by admin

Recent changes proposed by FEMA have put flood insurance in Portland, Maine on the minds many. Every property is in a flood zone, and has the possibility of suffering flood damage. Some properties are in “special hazard zones”, which means that they are more susceptible to flood. Lenders usually require borrowers to buy flood insurance as a requirement of getting a mortgage for these properties.

If you’re wondering what flood zone your property is in, there is a free tool available at FreeFlood.net. It’s a database of the flood zones of 100 million U.S. addresses. Simply enter your address, and instantly see flood zone information, along with a “flood meter” reading.

Graphical Flood Zone Meter

If you’re buying a home or commercial property in Maine , this is a great tool to help you budget your property insurance costs. For more information about homeowners insurance, business insurance, or flood insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

Special thanks to Steve Anderson of Steve Anderson’s TechTips for introducing us to this useful tool. Steve’s blog is a great educational resource for Maine insurance agents like us.

Does Your Maine Insurance Policy Cover Wind Damage?

Posted on by admin

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.