Spring Could Be Too Late to Buy Maine Flood Insurance

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Daylight Saving Time begins Sunday. The first day of Spring is less than 2 weeks away. Mainers are thinking Spring. And, after our first “typical” winter in a several years, many Maine homeowners and businesses worry about flooding.

As Mainers ski, snowmobile or snowshoe all winter, we know that snow has to go somewhere when it melts: Maine rivers and streams. Usually, those bodies of water can hold the runoff. But if snow melts too quickly or is accompanied by heavy rains, flooding happens. And it happens regularly, sometimes with devastating results, such as the Maine Floods of 1987 or the Aroostook County Floods in 2012. Those are the big events, but MEMA Flood Forecasts hundreds of smaller events every year, which can be just as devastating if they strike your property.

photo of flooding in Gardiner Maine
Flooding in Gardiner Maine (MEMA photo)

Every year, our Portland Maine area insurance agency takes calls and emails  from home owners anxious to buy Maine flood insurance in the face of imminent danger. Unfortunately, many don’t know that homeowners and most business policies do not cover flood damage. Flood insurance is a government-regulated program of the Federal Emergency Management Agency (FEMA).

Four Things You Need to Know About Flood Insurance

  1. There’s a 30-day waiting period.  Unless you are buying property, there is a 30 day waiting period before coverage takes effect.
  2. Every Maine property is in a “flood zone”. Riverfront or oceanfront properties are in “special hazard zones”, but flooding can happen anywhere. In fact, FEMA reports that 1 in 4 NFIP claims come from areas with a low or moderate risk of flooding. Your local insurance agent can tell you the flood zone for your particular property.
  3. The maximum payout under a flood policy is $250,000 (for your building) and $100,000 (for its contents) If you need more coverage, you can purchase excess insurance.
  4. If you don’t have coverage for a flood loss, don’t expect a bailout from Uncle Sam. Although you might be eligible for a federal disaster assistance loan, you’ll have to repay it, with interest.
  5. One of your assets probably IS insured for flood: your vehicle. “Other Than Collision” coverage does include flood damage. Check your policy to see if you purchased that.

If you are in Southern Maine and have questions about Maine business insurance or insuring your Maine property, contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541. We’re independent and committed to you.

Cape Elizabeth Student Hits Half Court Shot for Jackpot

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Marshall, a student from Cape Elizabeth, Maine won the jackpot on January 8, 2013 in the Cape Booster Shoot sponsored by Noyes Hall & Allen Insurance.

Marshall quckly swished a foul shot and three-point shot, which allowed him several attempts from half court within the allotted 30 seconds. Watch the video below:

Marshall splits the $600 jackpot with the Boys Basketball Boosters. Noyes Hall & Allen Insurance, an independent insurance agency in South Portland Maine, has sponsored the Booster Shoot for several seasons.

At every Cape Elizabeth High School Boys Basketball home game, a ticket is drawn. The winner tries to sink a foul shot, three-pointer and halfcourt shot in 30 seconds. The jackpot increases by $100 every game until someone wins. Several students of various ages, from grade school to college have hit the jackpot.

Noyes Hall & Allen is happy to support the Cape Elizabeth High School Boys Basketball Boosters.

How to Save Insurance Costs and Win More Jobs Under Maine’s New Independent Contractor Law

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Effective January 1, 2013, a new Maine law makes it harder for workers to be considered independent contractors, and more likely for them to be considered an employee. If you consider yourself to be a Maine independent contractor, or are a Maine business that hires such people, paying attention to this can help you get more work – or save money for your business.

For Independent Contractors

home under construction If you want to be considered an independent contractor in Maine, you can either buy Maine workers compensation insurance or obtain a Maine Predetermination of Independent Contractor Status (WCB266), proving that you meet 5 criteria, and at least 3 of another 7. Otherwise, you are presumed to be an employee.

With this pre-determination in hand, or by buying your own Maine Workers Comp coverage, you have a big jump on your competition. Companies that hire you won’t have to pay Maine Workers Compensation premium on your work, reducing their costs. This puts you at a significant advantage against your competitors seeking the job. Make sure you provide a Certificate of Workers Compensation Insurance or a copy of your approved WCB266 when you bid for work.

Predetermination (WCB 266) forms are good for one year, so be sure to re-apply every year. Also, they are “portable; you can use the same form can for multiple jobs in the one year.

For Maine Employers

To reduce your Maine business insurance costs, obtain a Certificate of Workers Compensation Insurance or a Predetermination of Independent Contractor Status (WCB266) from each contractor you hire. Consider it a “get out of jail free” card against paying more premium on your workers compensation insurance audit.

Be sure to collect this proof BEFORE the job starts, because Predetermination forms are NOT retroactive.

For more business tips on navigating Maine Workers Compensation insurance, contact a Noyes Hall & Allen agent at 207-799-5541. We’re independent and committed to you!

Marriage, Divorce and Maine Home + Auto Insurance

Posted on by Bob O'Brien

On November 6, 2012, Maine voters approved citizen initiative Question One, allowing same sex marriage. Yes on One proponents claimed that only marriage, granted LGBTQ couples equality with everyone else. No on One proponents were concerned that a change in the traditional definition of marriage as “one woman, one man” might affect many aspects of life.

How Important is Marriage in Insurance?

In a word, VERY.

Most people justifiably think medical insurance is the type most affected by marriage. That’s where most of the public discussion is, too. But Maine homeowners and auto insurance contracts also treat spouses very differently than other people.

How does being married affect your Maine home and auto insurance?  Let’s look at the most common insurance forms in Maine, ISO homeowners and auto policies. Although they are industry standards, your policy form may be different. Check with your own agent to be sure.

What Happens to Your Homeowners Insurance When you Get Married?

Spouses who reside in the same household are automatically defined as “YOU”. In insurance, it’s good to be YOU.

On most policies, an INSURED is defined as:

  • YOU;
  • your resident relatives;
  • full time students who are < 24 and your relatives, and lived with you prior to moving out; and
  • certain other minors in your care.

Are unmarried couples INSUREDS or not? To answer that, we have to ask the grammatically incorrect question, “who is YOU?”

“YOU” is defined as:

  • The Named Insured, as shown on the front page of the policy (called the Declarations);
  • That person’s spouse if they are a resident of the same household.
If both partners’ names appear on the policy they’re both YOU. But what if one unmarried partner’s name isn’t on the policy? They’re not an INSURED! What if your partner bought the house and you moved in later? Sorry, you’re not an insured. 

What if you were married instead?

Married couples are both YOUs as long as they live in the same household. Even if both names are not on the policy. Pretty important, don’t you think?
Let’s say you move in with someone who already owned a home. In this common situation, being married is the difference between having insurance for your property and protection from lawsuits and having none at all!
Of course, this example applies to any couples, straight or gay.

How Marriage Affects Auto Insurance

The definition of YOU in the auto policy is quite similar. It includes the Named Insured and a spouse who is a resident of the household. One additional benefit of being married: your interest in the policy transfers to a surviving resident spouse upon your death.

Warning!

You probably noticed that a spouse must be a resident of the same household to have all of these benefits. If you separate, your status changes. Divorce affects your homeowners and auto insurance, too.

It’s important that you contact your Maine insurance agent to talk about these situations. They can help you make sure that you remain insured, one way or another.

If you live in Southern Maine and are looking for an Portland Maine area independent insurance agency that can answer these and other insurance  questions, call Noyes Hall & Allen at 207-799.-5541.

Prepare Your Business for Hurricane Sandy (aka Frankenstorm)

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The path of Hurricane Sandy is still uncertain. Most recent estimates indicate that the storm will make landfall south of Maine.

A Storm That Misses Still Can Cause Damage

Even if the storm hits well to our south, high winds and rain are predicted over a large area, including ours. Forecasts include a very wide wind-field and varied degrees of rain and potential flooding that will probably affect at least Southern Maine.

nhc.noaa.gov – as of 1100 10/26/12

Prepare Your Business

Better to prepare your business for the worst and never have to use it than to be completely unprepared. Peerless Insurance Company has created an excellent pre-hurricane checklist for businesses, which we have shared below.  We hope you find it helpful to prevent and mitigate costly losses and interruptions to your business.

Pre-Hurricane Checklist (.pdf, 85k)

 

We are happy to answer your questions about Maine business insurance, from workers’ compensation to business property to commercial vehicles and general liability. Contact Noyes Hall & Allen Insurance at 207-799.5541.

Protect Yourself From Carbon Monoxide This Winter

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About 20,000 Americans suffer from unintentional carbon monoxide (CO) poisoning every year, including 400 deaths. Carbon monoxide is an odorless, colorless gas that can cause sudden illness and death if you inhale it.

Know the Symptoms of Carbon Monoxide Poisoning

Common symptoms of CO poisoning include headache, dizziness, confusion, chest pain and nausea. People who are sleeping or who have been drinking alcohol can die from CO poisoning before ever having symptoms. If you suspect CO poisoning, get outside immediately and call 911.

Tips to Avoid Deadly CO Poisoning

Properly use and maintain fuel burning appliances such as your boiler, furnace, space heaters and similar heaters. Have them professionally checked. Ideally, you should do this before the start of the heating season, but it’s not too late now.

Install a quality CO alarm. Check the batteries twice  a year, along with smoke detector batteries.

NEVER use these appliances indoors or in a closed garage:  a generator, charcoal or gas grill, pressure washer or other gas or propane fueled device.

Keep vents and flues clear of debris. 

NEVER leave your car idling in a garage.

Check your vehicle’s exhaust system for leaks to help prevent CO from collecting inside your vehicle.

In Case of Power Outage

NEVER use a gas range or oven to heat a home.

Run generators outdoors only– never in an enclosed space.

Photo of generator
emergency.cdc.gov

Use flashlights for indoor light – not liquid fuel lanterns.

Use gas or charcoal grills or camping stoves outside – never indoors.

If your home gets too cold, go to a friend’s house or a community shelter.

 

Our local Maine insurance agency wants you to stay warm and safe this winter. If you have questions about whether your Maine homeowners, condo or renters insurance covers winter storm damage, contact Noyes Hall & Allen Insurance at 207-799-5541.

 

 

Does Homeowners Insurance Cover Earthquakes?

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Maine felt a 4.0 magnitude earthquake on October 16, 2012. That’s certainly big enough to feel, but not likely to cause much damage to a solid structure.

As people checked their homes, more than a few Maine residents wondered if their renters, homeowners or condo insurance policy covers earthquake. The short answer: not unless you chose to. The chances are very slim: very few Maine residents buy earthquake coverage.

Maine earthquake insurance costs vary by company, from about $75 to $150 a year for a $400,000 home (much more for a brick home). You can add it on to your homeowners policy. Earthquake coverage carries a high deductible – usually 5% of the insurance amount. In other words, on that same $400,000 home, only damage above $20,000 would be covered. It would probably take much more than a 4.0 quake to cause that much damage.

If you would like a quote for Maine earthquake insurance, call Noyes Hall & Allen at 207-799-5541.

Insurance for a Maine Home with a Wood Pellet Stove or Wood Boiler

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Wood and pellet stoves and boilers have long been a popular source of heat for Maine homes and businesses. However, the vast majority of Maine homes use oil as heating fuel. Recent increases in oil prices have led to greater interest in alternative heating fuels in Maine. This has inspired technological improvements in wood-burning appliances.

Graph of home heating fuels in Maine 2011Source: US Census Bureau, American FactFinder

Insurance companies are often slow to adapt to new technologies and changing behaviors. This is prudent, since they rely on empirical data and the law of large numbers to manage risk. Their risk is much greater in the early years of adoption.

Maine homeowners insurance companies have carefully accepted homes heated by wood, provided:

  • The wood or pellet stove or boiler is a secondary heat source.
  • The primary heat source is controlled by a thermostat.
  • The stove is UL approved and installed in accordance with fire codes.
  • The insured follows woodstove safety tips.

In 2012, one of the insurance companies we represent, announced that they would insure homes, farms and businesses with certain wood and pellet stoves and boilers as the primary source of heat. Unfortunately, that is no longer the case. Homes using pellet or wood stoves must have a thermostatically controlled backup heat source, such as oil, propane or electric.

In addition to the traditional requirements listed above, some insurers require the make and model of the wood stove or boiler, and require the appliance to be:

  • Professionally Installed;
  • Self igniting and thermostatically controlled;
  • Fed automatically by auger or gravity from a bulk storage hopper or silo (pellet fuel only);
  • Protected by a sprinkler head above the unit, if required by code.

For more information about insuring your Maine home or business, contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541. Our Trusted Choice independent Maine insurance agency represents many insurance companies.

 

Preventing Clothes Dryer Fires

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Now that the Maine weather is turning cooler, many families will be using their clothes dryers more frequently. As a Maine fire insurance agent, we urge you to be careful when using your dryer to avoid the tragedy of a fire in your home, apartment, condominium or business property.

The National Fire Protection Association estimated that nearly 18,000 dryer fires occurred in the U.S. in 2006, killing or injuring more than 350 people, and causing nearly $200 million in property damage.

Common Causes of Dryer Fires

Clothes dryer fire
Dryer fires cause $200 million damage annually. (City of Fitchburg, WI photo)

The leading cause of dryer fires is failure to properly clean the appliance. Lint can build up in the exhaust duct or the dryer itself. This blocks the flow of air, causing heat to build up to the point of combustion. Another common cause is heat build-up in the clothes being dried. This can occur when clothing that the manufacturer labels to be air-dried is placed in the dryer. Clothing with padding is a common culprit; heat builds up in the dense fabric. Clothes that have been soiled with flammables such as gasoline or paint thinners can also cause fires if they are not thoroughly cleaned first.

Dryer Fire Prevention Tips

  • Clean the lint screen before or after each load.
  • Periodically clean the dryer vent and duct. If you notice that your dryer is taking longer than normal to fully dry your clothes, this can indicate a blocked exhaust duct. Check the outside vent while your dryer is running to be sure that air flow is steady and strong. Don’t forget to reconnect the ductwork after cleaning!
  • Install a metal exhaust duct, not the plastic accordion-style ductwork.  Rigid ductwork is better than the flexible type, which can more easily trap lint.
  • Follow clothing manufacturer cleaning instructions. If the label says “air dry”, don’t put it in the dryer.
  • Keep the area around your dryer free of clothing and clutter.
  • Vacuum behind the dryer to prevent lint buildup.
  • Promptly remove dried clothes from the dryer. Do not leave them in the appliance or piled in a laundry basket.

Following these safety tips can help you avoid having to report a homeowners insurance claim, and keep your property and family safe. If you are looking for a Maine independent insurance agency representing many preferred homeowners and condo insurance companies, contact Noyes Hall & Allen Insurance at 207-799-5541.

Does Insurance Cover Damage From Water Main Breaks?

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After the recent rash of water main breaks in South Portland Maine, many locals wonder if their Maine business insurance policy or Maine homeowners insurance covers water damage from such an occurrence.  Here are some answers, depending on what kind of Maine insurance policy you purchased.

Is the Water District Responsible for Broken Water Mains?

In general, Maine public utilities are not considered liable except in cases of negligence. If they were repairing a main and forgot to shut off the water before disconnecting, causing a flood, you might have recourse. If the break is caused by an unforeseen circumstance, wear & tear, etc., you are probably on your own to repair the damage.

Basic Insurance Policies

Off-the-shelf Maine business property insurance policies do not cover water backup or flood damage. Neither do basic  Maine homeowners, renters or condominium policies. While most do cover damage from leaking, freezing, or breaking of plumbing fixtures and appliances on the premises, damage from water that comes from the ground or under the ground is excluded.  The two most common coverages that you can purchase are Water Backup Coverage , Underground Line Insurance Coverage and Flood Insurance.

Water Backup Insurance Coverage

Maine businesses and residents can purchase an endorsement to their property insurance policy that covers backup of sewers and drains. Water backup insurance is relatively inexpensive, because it only covers damage from water that backs up into your building. Damage from surface water or seepage through a foundation are not covered. If the water main break caused your drain to overflow, backing water into your building, you may have coverage. Unfortunately, that’s not usually what happens with a water main break. Usually, the water bubbles to the surface and inundates an area. To get coverage for that, you need to buy flood insurance.

Underground Line Insurance

Some Maine insurance companies now offer underground service line coverage. They have a coverage limit – often $10,000, with a $500 deductible. Insurers now selling this coverage in Maine include Andover Companies, Concord Group and Vermont Mutual. Some sell the coverage a la carte, while others include it in a special bundle of coverage. In all cases, you have to purchase it – it’s not automatically covered by homeowners policies.

Related Post:

More Maine Home Insurers Cover Water & Sewer Lines

Flood Insurance in Maine

Only a small percentage of residents and businesses in Greater Portland purchase Maine Flood Insurance. That’s unfortunate. They think that because they’re not in an area that susceptible to flooding, they’ll take their chances. Maybe they never even thought about buying flood insurance.  But, many events can cause a flood, from heavy rains to hurricanes to snowmelt.

To be defined as a flood, surface water must cover area that is normally dry land. If that area is more than 2 acres, or at least 2 contiguous property parcels are affected (including yours), you have experienced a flood. The only way to buy flood insurance is to buy a special flood policy (except for specially policies generally reserved for large corporations and commercial projects). Flood insurance policies exclude damage from water than seeps or leaks onto your property, unless a flood was the proximate cause of the leak.

If your home or business is in southern Maine, we would be happy to answer your questions about insuring your property. We have provided Maine business property insurance and personal insurance services to the Portland Maine area for more than 75 years. Contact a Noyes Hall & Allen Insurance agent at 207-799-5541.