Windstorms: They can strike with a devastating blow

As with many disasters, windstorms can wreak havoc across a region, severely damaging homes, businesses and vehicles.

Fortunately, wind damage is covered under standard homeowners and business owners insurance policies. Vehicle owners with optional Comprehensive Coverage in their Auto Insurance are also insured.

"Insurance companies really show their value to customers following a catastrophe like a windstorm," said Karl Newman, NW Insurance Council president. "It's frustrating to deal with a windstorm loss, but it would be financially devastating to many if they hadn't insured their homes and businesses."

The Hanukkah Eve Windstorm that struck Western Washington and Oregon in December caused nearly $220 million in damage and more than 61,300 insurance claims.

Knowing what to do immediately following a windstorm can help you more quickly get back on your feet. NW Insurance Council offers the following key points and recommendations for homeowners and business owners who experience wind damage:

Filing A Claim:
  • If you have damage to your home or business, don't wait to file a claim. Filing quickly will reduce the time it takes to get your claim settled.
  • If you've filed a claim for minor damage that doesn't impact your ability to live in your home, consider getting several repair estimates before your adjuster arrives. This will help your adjuster settle your claim more quickly.
  • If you have minor damage, please be patient. Adjusters are working to handle the most severely damaged properties first and will make it a priority to reach your property as soon as possible.
Damage from neighbor's trees:
  • Damage to your home from wind and falling trees is covered under most insurance policies, regardless of whose property the tree fell from.
  • In cases where negligence can be proven, your neighbor's insurance may apply.
  • If your neighbor's tree poses a future risk to your property due to leaning, disease or root problems, claims experts recommend asking your neighbor to correct the problem. If the neighbor refuses to act, follow up with a certified letter stating your concerns. File a copy of the letter with your insurance records and provide it to your adjuster in the event of a future loss. This will help the adjuster investigate whether or not there was provable negligence on the neighbor's part.
Additional Living Expenses:
  • If your home is unsafe to occupy due to physical damage from the windstorm, most policies provide for Additional Living Expenses that exceed your normal expenditures.
    General power outages occurring off your insured property are excluded from coverage under most policies.
  • While you may elect to seek other accommodations due to a power outage, cold weather alone does not qualify you for coverage under your insurance policy.
Frozen and Refrigerated Food Spoilage:
  • Many companies exclude coverage for spoiled food unless a power outage is caused by a loss on your property, such as a tree severing the power lines attached to your home.
  • Some companies provide up to $1000 coverage for frozen and refrigerated food spoilage after 72 hours of continuous power interruption. Check your policy for coverage information.
For more information, call (800) 664-4942 or visit http://www.nwinsurance.org/. For information on how to prepare your home, business and family for a natural disaster, visit http://www.getreadynw.org/.

Holiday Prowl: Protect Your Vehicle & Gifts From Parking Lot Thieves

The hustle and bustle of holiday shopping is in full swing around the Northwest. While rushing from store to store, remember you are not the only one looking for a hot deal.

Parking lot thieves are on the prowl, aggressively preying on inattentive shoppers hoping to cash in at your expense.

If you have optional Comprehensive Coverage on your Auto Insurance Policy, your vehicle is covered if it's stolen. However, your auto policy will not cover gifts and most personal possessions stolen from your car.

Your Homeowners or Renters policy does cover your belongings, including gifts, but only after you pay the deductible, which is usually $250 or more. That's why it's important to take extra precautions as you shop from store to store and get in and out of your vehicle.

"Unless it's permanently attached to your car, most Auto Insurance policies don't cover your personal belongings," said Karl Newman, NW Insurance Council president. "As always, you'll save yourself a lot of headaches by taking steps ahead of time to reduce the risk of a break-in."

As you shop, be wary that car prowlers are lurking in parking lots waiting to steal gifts from unattended cars. Here are a few tips from NW Insurance Council to help you shop safely and worry free:
  • Review your insurance policy and consider adding Comprehensive coverage if you don't already have it.
  • Double-check to make sure your doors are locked.
  • Whenever possible, store gifts and other valuables in your trunk. If this isn't possible, throw a blanket over gifts before you leave your vehicle unattended.
  • Don't go back and forth frequently from stores to your vehicle to unload gifts. Car prowlers watch for shoppers who leave gifts in their vehicles unattended.
  • Do not leave valuable items in sight. Cell phones, laptops and other expensive electronic equipment make your vehicle more inviting to thieves.
  • Be sure to park in a well-lit area.
  • Consider installing a quality security system in your vehicle or applying a locking device to your steering wheel.
If you have questions about your Homeowners or Renters insurance, check your policy or call your insurance agent or company.

Kerosene heaters, wood stoves can cost you comfort during cold, winter months

Space heaters and wood stoves are good sources of heat during the cold, winter months. But carelessness and improper use can ruin a festive holiday if safety isn't a priority.

According to the U.S. Consumer Product Safety Commission, space heaters and wood stoves are associated with 25,000 fires and 300 deaths annually.

Nearly half of the reported fires in one- and two-family dwellings are attributed to the use of solid-fuel appliances. These accidents cost homeowners thousands of dollars in damage and loss.

Fuel-burning heaters, such as kerosene heaters, can cause carbon monoxide poisoning and indoor air pollution due to improper venting or incomplete combustion.

As temperatures continue to dip below freezing, NW Insurance Council encourages those who burn wood or kerosene as a source of heat to first follow these helpful tips:
  • Notify your insurance company or agent before you purchase a wood-burning appliance or begin to install it. Be sure to ask about any special requirements.
  • Install your wood-burning appliance correctly. Obtain a building permit, follow the building code and manufacturer's recommendations and conform to any special requirements of your insurance company.
  • Use your wood-burning appliance safely. Burn proper fuels - no milk cartons, other trash or Christmas trees. These materials can lead to dangerous soot buildup that can cause chimney fires.
  • Maintain your wood-burning appliance on a regular basis. Inspect the appliance and chimney for cracks or corrosion. Sweep the chimney and check your fire extinguisher at least once a year - before the burning season.

Here are a few safety tips when using a kerosene heater:

  • Place heaters near the center of rooms away from furniture, drapes and other combustibles.
  • Children and pets should be kept a safe distance from heaters.
  • Be sure to follow the manufacturers' instructions while using a kerosene heater.
  • Maintain a constant source of fresh air. Make sure rooms are adequately ventilated before using heaters. Kerosene heaters consume oxygen as they burn. If they are operated in a small room or in an inadequate ventilated place, oxygen levels could be reduced to dangerous levels. Keeping doors to other rooms open will help provide more fresh air.

Homeowners Insurance policies cover damage or loss caused by wood stoves or space heaters, but each company may have unique features in its policies. Check with your agent or insurance company to learn more about your coverage.

For more information about insurance and fuel-burning heaters, contact NW Insurance Council at (800) 664-4942.

Avoid a financial fumble: Don’t reduce Homeowners or business insurance to match lower market values

In a difficult economy, it may be tempting to save a few dollars by reducing your Homeowners or commercial building insurance coverage to match decreased market values.

However, studies show that rebuilding costs have climbed during the recession and lowering coverage may be a risky move.

“In past decades, market values were always ahead of rebuilding costs. That trend now has reversed,” said Karl Newman, NW Insurance Council president. “We encourage homeowners and business owners not to lower their insurance to match market values.

If your home or business burns down, you could be stuck paying the difference between your insured amount and the actual cost to rebuild.”

Although most insurance companies routinely update your replacement cost coverage amount, it is your responsibility to make sure you have enough coverage for your home or business and its contents. A 2008 survey by Marshall & Swift showed that 64 percent of homeowners in the United States don’t have enough insurance to rebuild their homes if they are destroyed. Of those without enough coverage, the average homeowner only has enough insurance to rebuild about 81 percent of his home.

Also, while home prices have fallen, studies by Xactware, a leading rebuilding cost estimator, show that costs to rebuild damaged homes increased through the recession, only leveling out this year. Cost increases were powered by rising transportation and building materials costs.

NW Insurance Council offers the following tips to help you keep your insurance coverage up to date:
  • Contact your agent or insurance company annually to evaluate the current replacement cost of your home or commercial building. Be sure to include any large remodel projects or additions that could add a substantial amount to your rebuilding costs.
  • Also, be sure to ask about special coverage for high-value items such as jewelry, art, antiques and coin collections.
  • Consider separate optional flood and earthquake insurance. Flood and earthquake damage is specifically excluded from standard Homeowners insurance policies and most business insurance policies.
  • Keep an up-to-date home inventory with Free Home Inventory Software from the Insurance Information Institute.
  • Prepare your business to survive a disaster, get Open For Business from the Institute for Business & Home Safety.

Windstorm: Is Your Home, Car or Business Covered by Your Insurance?

High winds in the Puget Sound region have toppled trees and cut power to some, putting homes, businesses and vehicles at risk of wind damage.

While high-wind warnings remain in effect through today, it's important for homeowners, renters and business owners to be prepared and understand what is and what is not protected against damage caused by wind.

"Homeowners and Business Insurance policies cover wind damage to the structure of your home or business and your belongings," said Karl Newman, NW Insurance Council president. "Wind damage to vehicles from falling trees or other wind-driven objects and damage from landslide is covered if you have optional Comprehensive Coverage in your Auto Policy."

NW Insurance Council offers the following coverage facts for wind damage.

What's typically covered:
Your Home

  • Damage to your home from wind and falling trees.
  • Removal of trees that have fallen on buildings.
  • Damaged personal property (both home and renters) inside a damaged building.
  • If you can't occupy your primary residence due to storm damage, additional living expenses such as increased housing costs, extra food costs, furniture rental, and storage fees.
  • Costs for reasonable temporary repairs to prevent further damage to the building or contents.

Your Vehicle

  • Damage caused by wind and falling trees - if you purchased optional Comprehensive Coverage.
    Damage caused by landslide is also covered under the Comprehensive Coverage portion of your policy.

What's typically not covered:
Your Home

  • Removal of trees that have fallen in your yard without damaging a building.
    Upgrades that weren't part of your home before the storm.
    Damage from landslides.

Your Vehicle

  • Damage to your vehicle if you don't have Comprehensive Coverage.

What to do if your home or vehicle has been damaged:

  • Document damage and take pictures.
  • If safe to do so, make temporary repairs to prevent further loss from rain or wind. Save receipts for reimbursement.
  • If your home or property is damaged by a windstorm, contact your insurance agent or company to file a claim immediately. Filing a claim quickly enables your insurance company to get to you sooner.
  • Use only licensed, reputable building contractors and be sure they get the proper building permits.

What to avoid if your home or vehicle has been damaged:

  • Avoid contractors who ask for a large deposit up front or bids that are remarkably low. This may indicate a willingness to cut corners or leave work unfinished.
  • Don't pay a lot for temporary repairs unless authorized by your insurance adjuster. You could get stuck with the bill if the repairs are deemed excessive.
  • Don't discard anything that is damaged until it has been examined by your adjuster. You could miss out on coverage for that item.

Housing Market Slump Means More Americans Are Renting Homes; I.I.I. Counsels Renters to Make Sure They Have the Proper Insurance

NEW YORK, November 15, 2010 — With the housing market in a slump, foreclosures rising and a glut of investor-owned homes hitting the rental market, more people are choosing to rent than to buy. Renters, however, just like homeowners, need to make sure they are properly insured, according to the Insurance Information Institute (I.I.I.).

The U.S. Census Bureau noted that in the second quarter of 2010, 37.1 million housing units were occupied by renters, up by more than 800,000 units from the same period the previous year and up by 8.2 percent, from 34.3 million units, in 2006.

A survey conducted by Harris Interactive for the National Apartment Association in May 2010 found that 76 percent of those surveyed now believe that renting is a better option than buying in the current real estate market, up from 71 percent in 2008.

“If you rent a house or apartment and think that your landlord is financially responsible when there is a fire, theft or other catastrophe—think again,” warned Loretta Worters, vice president with the I.I.I. “Your landlord may have insurance to protect the building you are living in. But your landlord’s policy won’t replace your personal possessions or pay for your living expenses while the building is being repaired. The only way to protect yourself financially against disasters is to buy a renters insurance policy,” she added.

While more people are renting, nearly half do not purchase renters insurance. A recent Insurance Research Council poll found that 96 percent of homeowners had homeowners insurance while only 43 percent of renters had renters insurance.

Renters Insurance, sometimes referred to as tenants insurance, includes three basic types of protection:
  1. Personal Possessions
  2. Liability
  3. Additional Living Expenses


1. Personal Possessions
Standard renters insurance protects your personal belongings against damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water and other disasters listed in the policy. Floods and earthquakes are not covered. Flood insurance is available through the federal government’s National Flood Insurance Program (NFIP) and from some private insurance companies.

Earthquake coverage can be purchased as an endorsement or a separate earthquake policy. In California, coverage is also available from the California Earthquake Authority.

To decide how much renters insurance to buy, you need to know the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even towels and bedding. The easiest way to figure this out is to create a home inventory, a detailed list of all of your personal possessions and their estimated value. To help make this task easier, the Insurance Information Institute offers free, Web-based software, available at KnowYourStuff.org. An up-to-date home inventory will also make filing an insurance claim faster and easier.

2. Liability
Standard renters insurance policies also provide liability protection against lawsuits for bodily injury or property damage that you or your family members may cause to other people. It also pays for damage your pets cause.

The liability portion of a renters policy pays for both the cost of defending you in court and for court awards, up to the limit of the policy. Liability limits generally start at about $100,000. Some experts recommend that you buy at least $300,000 worth of protection. You can also buy an Umbrella or Excess Liability policy, which provides higher limits and broader coverage. Generally, umbrella policies cost $200 to $350 a year for an extra $1 million of liability protection.

Your policy also provides No-Fault Medical coverage. If visitors are injured in your home, you can submit their medical bills directly to your insurance company. You can generally get $1,000 to $5,000 worth of this coverage. It does not, however, pay medical bills for your own family or your pets.

3. Additional Living Expenses
Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed due to a disaster listed in your policy and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.

There are two types of renters insurance policies for your possessions:
Actual Cash Value pays to replace your possessions minus an amount for depreciation (the reduction in the value of items due to age and use) up to the limit of your policy.
Replacement Cost pays the full cost of replacing your possessions (with no deduction for depreciation), up to the limit of your policy. The price of Replacement Cost coverage is about 10 percent more than Actual Cash Value coverage, but can be well worth the additional cost.

A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

How to Buy Renters Insurance
Renters insurance is easy to get, and there are many insurance companies to choose from. Insurers that offer homeowners insurance generally also sell renters insurance. In fact, a renters insurance policy and a homeowners insurance policy are almost identical. The main difference is that a renters policy does not include coverage for the building, since that is the responsibility of the landlord.

Comparison Shop
Because renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive—usually around $200-$250 annually, depending on where you live and the amount of insurance you purchase. Still prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or get quotes from the Internet. Your state insurance department may also provide information about prices.

Get quotes from different types of insurance companies. Some insurers sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents, who offer policies from several insurance companies. Others don’t use agents at all but sell directly to consumers over the phone or via the Internet.

But don’t shop by price alone. Select a company based on service. Ask friends and relatives for their recommendations. Look for an agent or company representative who takes the time to answer your questions. Remember, you will be dealing with this person if you have an accident or other emergency.

Ask Your Insurer How You Can Save Money
There are several ways to save money on premiums. Consider taking a higher deductible (the amount of money you have to pay toward a loss before your insurance company starts to pay a claim). The higher your deductible, the more money you save on your premium. A deductible of at least $500 may save you 10 percent off the price of your policy. If you can afford to raise it to $1,000, you may get as much as 25 percent off your premium. However, it is also important to keep in mind that you will be paying the deductible each time you file a claim.

Insurance companies often offer discounts on renters insurance if you have another policy with them such as for your car or business. You can also get discounts if your apartment has a security system, smoke detectors or deadbolt locks. More discounts might be available depending on your age and whether or not you smoke.

Insurance Information Institute

Study Says Drowsy Drivers Are Involved in 17% of Fatal Crashes

By Tanya Mohn/NY Times

Driving while drowsy and falling asleep at the wheel are responsible for more deadly crashes than previously thought, according to a new study released on Monday.

An estimated one in six fatal crashes — nearly 17 percent — involves a drowsy driver, which is about four to five times higher than previous studies have found. And drowsy drivers are involved in one in eight crashes that result in serious injury, the report found.

“People need to be honest with themselves, be aware of the symptoms and recognize the dangers of driving while drowsy,” said Peter Kissinger, president and chief executive of the AAA Foundation for Traffic Safety, a nonprofit research and educational organization that conducted the study.

Being sleep-deprived decreases awareness, slows reaction time and impairs judgment, similar to the impact of drugs or alcohol, said Mr. Kissinger. “People often overestimate their ability to deal with it,” he said.

The study was based on the AAA Foundation’s 2010 Traffic Safety Culture Index, a nationwide telephone survey of 2,000 residents in the United States, conducted earlier this year by Abt SRBI Inc., and new in-depth analysis of crash data from 1999 to 2008 from a National Highway Traffic Safety Administration database.

The report found that 41 percent of respondents admitted to falling asleep or nodding off while driving at some point in their lives. One in 10 acknowledged doing so in the past year. More than a quarter (27 percent) of those surveyed admitted that in the previous month they drove despite being so tired that they had difficulty keeping their eyes open.

“That’s just a really scary scenario,” Mr. Kissinger said.

The study is being released in support of Drowsy Driving Prevention Week (Nov. 8 to 15), sponsored by the National Sleep Foundation.

Thomas J. Balkin, a sleep researcher and chairman of the National Sleep Foundation, said sleep-related crashes were likely to be severe. People “tend to have worse crashes because they didn’t do anything to mitigate the crash,” like hitting the brakes or steering away from a collision.

Dr. Balkin said there is some suggestion that people are more sleep deprived than 30 to 40 years ago, when the average amount of sleep was about eight hours a night. Today, it is about seven hours. “People on the lower end, who get about five to six hours a night, pose a danger to themselves and others,” he said.

“People think that by rolling down the window or turning up the radio they will be able to offset drowsiness and make it to where they are going,” he said. “But they lose touch. When we’re sleepy, we know we’re sleepy, but the process of actually falling asleep, we’re not good at identifying that.”

It’s something Rusty Burris, 38, of Columbia, Mo., wished that he had paid more attention to.

“When your body reaches its breaking point, you have no control over it. You’ve got to stop,” said Mr. Burris, who at age 18 fell asleep at the wheel about a mile from home after having been awake for more than 36 hours. Mr. Burris was paralyzed from the chest down when his car hit a driveway embankment and flipped over.

“It doesn’t matter how many times you do it and get away with it,” he said. “It’s that one time you don’t. You pay for it for the rest of your life.”

Tips to remain alert and identify symptoms, and the full report can be seen at AAAFoundation.org.

See full story

Insurance Good For Financial Security, Great For Washington's Economy

Insurance provides financial security for millions of Washington residents and makes a major contribution to the economy across the Northwest. At the most fundamental level, insurance is the foundation for economic interaction and nearly all commerce.

"Insurance makes it possible to buy a car or a home, start a small business and build communities, said Karl Newman, president, NW Insurance Council. "Insurance also provides quality employment opportunities to thousands of Washingtonians."

Among businesses, insurance companies are the second highest contributor to the Washington State General Fund. The insurance industry contributed more than $5.2 billion to the Washington State gross state product (GSP) in 2007, accounting for two percent of the state GSP.

Insurance companies headquartered both here and in other states, employed 50,727 Washington residents in 2007 and brought more than $3.2 billion in payroll income into state and local economies, according to the U.S. Bureau of Labor Statistics.

In 2008, insurers paid more than $415 million in premium taxes to Washington State government, including primary funding for the State Fire Marshal's Office.

"Insurers help fuel Washington's economy," said Newman. "Insurance companies doing business in Washington help make state and local projects a reality by purchasing a significant number of municipal bonds."

Insurer premium taxes and bond investments directly finance construction and maintenance of critical public services such as roads and bridges, schools and affordable housing.

Property & Casualty (P&C) insurers purchased $14.6 billion in Washington municipal bonds in 2005. That equals 31percent of outstanding government debt throughout the state. Washington was fifth among all states in municipal bond investments by P&C insurers, despite ranking only 18th in the nation in total P&C premium volume.

Only Texas, California, New York, and Illinois ranked higher than Washington. In fact, Washington led all 50 states in the ratio of municipal bond investments to direct written premiums, with P&C insurers investing 1.6 times more in municipal bonds than they collected in premiums in the state ($13.7 billion to $8.6 billion respectively for 2005, according to A.M. Best data).

Property/casualty insurance companies doing business in Washington totaled $9.1 billion in direct premiums written. In addition, life/health insurers totaled nearly $10.7 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).

"Perhaps most importantly, insurance companies are there when policyholders need them most - helping Northwest residents recover from accidents, illnesses and other personal and commercial insured losses," Newman said.

In 2008, P&C insurers paid $5.0 billion to Washington residents and businesses, including $2.2 billion for auto losses, $1.9 billion for commercial losses and more than $724 million for homeowners' claims. Life insurance claims and befits payouts in Washington totaled $7.8 billion in 2008.

Insurance claim payments support local businesses, enabling them to provide jobs and pay taxes that support the local economy.

These businesses include the auto parts and repair industries, the building construction and supply industries, health care services and legal services.

For more on how insurance companies support local and state economies, check out
"A Firm Foundation: How Insurance Supports the Washington State Economy or contact NW Insurance Council at (800) 664-4941.

Sources: American Insurance Association, A.M. Best, Insurance Information Institute and U.S. Census Bureau.

Now's the Time to Protect Your Home From Old Man Winter

Freezing temperatures, ice, snow and wind can devastate homes and businesses if they are not properly winterized. Don’t wait for temperatures to dip below freezing before you take action. Now is the time to protect your home from Old Man Winter.

Winter storms are the third-largest cause of property loss in America, resulting in about $1.2 billion in insured losses annually, according to the Insurance Information Institute.

Winter weather-related losses such as burst pipes, wind damage, ice dams, frozen gutters and damage caused by the weight of ice or snow are covered under standard Homeowners Insurance policies. Damage caused by flooding is specifically excluded under standard home and business insurance policies. Flood Insurance can be purchased through the National Flood Insurance Program.

By winterizing your home or business you also can eliminate many inconveniences caused by weather-related losses.

“Even when you have insurance, the hassle of waiting for your home to be repaired can be a dark cloud over your plans,” said Karl Newman, NW Insurance Council president. “It takes some work, but it’s definitely worth the effort to winterize your home.”

Shut the door on Old Man Winter and protect your home or business by following these easy, do-it-yourself tips:
  • Be disaster ready. Learn how you can protect your home and family from natural disasters that are common to your region. Visit www.GetReadyNW.org for more information.
  • Maintain gutters. Remove leaves, pinecones, sticks and other debris from gutters so melting snow and ice can flow freely. This can prevent ice damming, which can push melting water under the roofing and into your attic. You may also consider installing gutter guards. Available at most hardware stores, gutter guards are screens that prevent debris from entering the gutter and blocking drainpipes.
  • Trim trees and remove dead branches. Ice, snow and wind can cause weak trees or branches to break – damaging your home or car.
  • Check insulation. Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. The water will re-freeze, allowing more snow and ice to build up. This can result in a collapsed roof.
  • Prevent frozen pipes. Wrap pipes with pipe insulation or heating tape and insulate unfinished rooms such as garages that have exposed pipes. Also, check for cracks and leaks. Repair them immediately to prevent much costlier repairs.
  • Keep your house warm. The temperature in the home should be at least 65 degrees. The air inside the walls where pipes are located is substantially colder than the walls themselves. A room temperature below 65 will not keep pipes from freezing.
  • Get to know your plumbing. Learn how to shut off the water and know where your home’s pipes are located. If pipes freeze, you may be able to prevent the pipes from bursting by taking immediate action. Quickly shut off the water and direct your plumber to the problem.
For more information on winterizing your home, or for a free copy of Surviving Severe Cold Weather, contact NW Insurance Council at (800) 664-4942.

Fright Night: Carelessness on Halloween Can Cause Insurance, Financial Nightmares

Halloween festivities are sure to bring plenty of chills and thrills. However, it could quickly turn into a nightmare if you do not take time to carefully plan for the evening’s activities.

Candles, frightened pets and wet or poorly maintained walkways all can prove dangerous to your family and trick-or-treaters.

“Protecting yourself, your family and guests starts with making sure you have Homeowners Insurance with high enough limits of liability to protect your financial assets,” said Karl Newman, NW Insurance Council president. “After that, homeowners should take every reasonable precaution to ensure that their homes are safe for residents and guests.”

Injuries to guests are covered under the Liability portion of your Homeowners Insurance policy. Most homeowners’ policies start with liability limits of $100,000.

However, regardless of the season, you may want to consider purchasing at least $300,000 worth of liability protection and adding an Umbrella Policy. In many cases, you can purchase up to 10 times more liability coverage for an additional several hundred dollars per year.

Your policy also provides “no-fault” medical coverage. In the event a friend or neighbor is injured in or around your home, he or she can submit medical bills to your insurance company up to the limit you’ve chosen – generally from $1,000 to $5,000. This allows payment of smaller medical expenses without needing to file a liability claim.

However, it’s important to note that medical coverage only applies to guests and does not pay medical bills for you, your family or your pets.

NW Insurance Council offers these common-sense tips to help you avoid the negligence ghouls and safeguard your family, home and trick-or-treaters this Halloween night:

  • Ensure safe walkways by raking or sweeping leaves and other debris away from porches, decks, sidewalks and driveways.
  • Trim low-hanging branches over walkways.
  • Keep walkways well lit.
  • Keep pets away from approaching trick-or-treaters. Some pets may get excited or hostile when encountering children dressed in costumes.
  • Keep candles away from all combustible and heat-sensitive items. Make sure they are displayed on stable surfaces and out of reach of children and pets. Extinguish candles before leaving a room.

If you’d like more information about your Homeowners Insurance policy or your liability limits, contact your insurance company or agent.

It May Be Warm & Dry, But Now is The Time to Get Flood Insurance

While sunshine continues to fill the Autumn skies, believe it or not, now is the time to consider purchasing Flood Insurance if you live in or near a flood plain.

Standard Homeowners and Business Insurance policies do not cover losses caused by flooding. However, everyone at risk for flooding should investigate Flood Insurance made available through the National Flood Insurance Program (NFIP).

Waiting for flood waters to rise before getting Flood Insurance could be a risky proposition because there is a 30-day waiting period for new Flood Insurance policies. This means any flood damage to your home during the 30-day waiting period will not be covered.

NFIP studies show that people living in flood plains are 27 times more likely to experience a flood during their 30-year mortgage than they are to experience a fire. If you’re in an at-risk area, it makes sense to investigate your options.”

Residents living in or around flood plains are encouraged to review their Homeowners and Flood Insurance policies now before flooding take place.

King County Flood Warning offers free Flood Alerts to King County residents to help them stay abreast of flood warnings for local rivers. Residents can subscribe for Flood Alerts by visiting King County’s website.

NW Insurance Council, NFIP and the Institute for Business and Home Safety offer these tips as you consider purchasing Flood Insurance to protect your home during the long rainy season:
  • Be disaster ready. Learn what disasters you’re at risk of experiencing in your region and how to prepare your family and protect your home and belongings.
  • Find out if you are located in a floodplain and if your community participates in the NFIP. Contact your city or county government. Start with the Building or Planning Department and ask to see the Flood Insurance Rate Maps published by the Federal Emergency Management Agency to determine your Base Flood Elevation.
  • In low-to-moderate flood risk areas, coverage is available for as little as $100 per year. The average premium in high-risk areas is about $400 per year.
  • If you are at risk for flooding, buy as much flood coverage as you can. Primary residences insured for at least 80 percent of their value, or for the maximum amounts allowed, get replacement cost coverage.
  • There is normally a 30-day waiting period from the time a policy is purchased until you are covered.
  • Become familiar with your community’s disaster preparedness plans and create a family plan ahead of time before a flood threatens.
  • Develop an emergency kit that includes a three-day supply of drinking water and food you don’t have to refrigerate or cook. The kit should also contain first aid supplies, a weather radio, batteries, clothing, blankets, medicine, copies of your insurance policies and some basic tools.

Driver Beware: Deer-Vehicle Accidents Increase Between Oct. and Dec.

Vehicles and deer can be a lethal combination on Northwest roads. As the weather gets colder, deer and other wildlife migrate from the mountains and you face greater risk of collisions when they dart across roads and highways.

More deer-vehicle accidents occur between October and December than any other time of the year.

The Washington Department of Transportation reports that annually more than 1,100 wildlife-vehicle collisions are reported to the Washington State Patrol (WSP).

The collisions cause nearly 1,200 injuries and two fatalities each year. The Insurance Institute for Highway Safety estimates there are more than 1.6 million deer-vehicle collisions nationwide each year, resulting in 150 occupant deaths, tens of thousands of injuries and over $3.6 billion in vehicle damage.

The average deer-vehicle auto claim involving bodily injury is about $11,000, according to the Insurance Information Institute.

"Deer-vehicle collisions can cause significant damage to vehicles and serious injury to drivers and passengers," said Karl Newman, NW Insurance Council president. "Using caution and staying alert can save your life and eliminate the need for costly vehicle repairs."

If you have optional Comprehensive Coverage, your Auto Insurance policy will pay for damage to your vehicle, less the deductible, if you hit a deer or any other animal. NW Insurance Council offers the following defensive driving tips to help you avoid deer while on the road:

  • Be attentive from sunset to midnight and hours before and after sunrise. These are the highest-risk periods for deer-vehicle collisions.
  • Drive with caution when moving through deer-crossing zones, in areas known to have a large deer population and in areas where roads divide agricultural fields from forestland.
  • Deer seldom run alone. If you see one deer, others may be nearby.
  • When driving at night, use high beam headlights when there is no oncoming traffic.
  • Brake firmly when you notice a deer in or near your path and stay in your lane. Many serious crashes occur when drivers swerve to avoid a deer and hit another vehicle or lose control of their cars.

If you have questions about coverage, contact your insurance agent or company.For more information, call the NW Insurance Council at (800) 664-4942.

National Flood Insurance Bill Reauthorization Becomes law

President Obama late Thursday signed into law legislation extending the National Flood Insurance Program until Sept. 30—averting what would have been another shutdown of the program.

Without the President’s signature, the program would have expired at midnight Thursday. The NFIP has lapsed three times this year. It has become a political football because it is more than $18 billion in debt, as noted by David Sampson, president and CEO of the Property Casualty Insurers Association of America.

“While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011,” Mr. Sampson said.

There is also broad disagreement over how far reforms should go, including the phasing in of market-based rates and whether wind should be added to the program.

The bipartisan extension bill, S. 3814, was sponsored by Senator David Vitter, R-La., and co-sponsored by Sens. Mary Landrieu, D-La.; Bill Nelson, D-Fla.; Lamar Alexander, R-Tenn.; Saxby Chambliss, R-Ga.; Kay Bailey Hutchinson, R-Tex.; and Johnny Isakson, R-Ga.

Leigh Ann Pusey, president and CEO of the American Insurance Association, noted that the latest extension is long-term, rather than the prior pattern of short-term extensions and lapses that have plagued the NFIP.

“With the program now in place for another year, there is now the opportunity to tackle the larger, more fundamental reforms with federal policymakers like NFIP subsidies and the mapping of flood plains," Ms. Pusey said.

The Independent Agents and Brokers of America (IIABA) issued a statement saying the extension “will provide much needed stability and security for the NFIP and its five and a half million policyholders.”

But, Robert Rusbuldt, IIABA president and CEO, said it’s also important to note “that our work with this program is far from over.”

NU Online News Service, Oct. 1, 11:03 a.m. EDT
President Obama late Thursday signed into law legislation extending the National Flood Insurance Program until Sept. 30—averting what would have been another shutdown of the program.

Without the President’s signature, the program would have expired at midnight Thursday. The NFIP has lapsed three times this year. It has become a political football because it is more than $18 billion in debt, as noted by David Sampson, president and CEO of the Property Casualty Insurers Association of America.

“While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011,” Mr. Sampson said.

There is also broad disagreement over how far reforms should go, including the phasing in of market-based rates and whether wind should be added to the program.

The bipartisan extension bill, S. 3814, was sponsored by Senator David Vitter, R-La., and co-sponsored by Sens. Mary Landrieu, D-La.; Bill Nelson, D-Fla.; Lamar Alexander, R-Tenn.; Saxby Chambliss, R-Ga.; Kay Bailey Hutchinson, R-Tex.; and Johnny Isakson, R-Ga.

Leigh Ann Pusey, president and CEO of the American Insurance Association, noted that the latest extension is long-term, rather than the prior pattern of short-term extensions and lapses that have plagued the NFIP.

“With the program now in place for another year, there is now the opportunity to tackle the larger, more fundamental reforms with federal policymakers like NFIP subsidies and the mapping of flood plains," Ms. Pusey said.

The Independent Agents and Brokers of America (IIABA) issued a statement saying the extension “will provide much needed stability and security for the NFIP and its five and a half million policyholders.”

But, Robert Rusbuldt, IIABA president and CEO, said it’s also important to note “that our work with this program is far from over.”

He said, “Congress now has a year to work on a long-term extension and much needed permanent reforms such as an increase in maximum coverage limits and the addition of optional business interruption insurance.”

He also said that in the past Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace.

“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies (NAMIC).

“However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”

NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences.

NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.

He said, “Congress now has a year to work on a long-term extension and much needed permanent reforms such as an increase in maximum coverage limits and the addition of optional business interruption insurance.”

He also said that in the past Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace.

“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies (NAMIC).

“However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”

NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences.

NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.

NU Online News Service, Oct. 1, 11:03 a.m. EDT
President Obama late Thursday signed into law legislation extending the National Flood Insurance Program until Sept. 30—averting what would have been another shutdown of the program.

Without the President’s signature, the program would have expired at midnight Thursday. The NFIP has lapsed three times this year. It has become a political football because it is more than $18 billion in debt, as noted by David Sampson, president and CEO of the Property Casualty Insurers Association of America.

“While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011,” Mr. Sampson said.

There is also broad disagreement over how far reforms should go, including the phasing in of market-based rates and whether wind should be added to the program.

The bipartisan extension bill, S. 3814, was sponsored by Senator David Vitter, R-La., and co-sponsored by Sens. Mary Landrieu, D-La.; Bill Nelson, D-Fla.; Lamar Alexander, R-Tenn.; Saxby Chambliss, R-Ga.; Kay Bailey Hutchinson, R-Tex.; and Johnny Isakson, R-Ga.

Leigh Ann Pusey, president and CEO of the American Insurance Association, noted that the latest extension is long-term, rather than the prior pattern of short-term extensions and lapses that have plagued the NFIP.

“With the program now in place for another year, there is now the opportunity to tackle the larger, more fundamental reforms with federal policymakers like NFIP subsidies and the mapping of flood plains," Ms. Pusey said.

The Independent Agents and Brokers of America (IIABA) issued a statement saying the extension “will provide much needed stability and security for the NFIP and its five and a half million policyholders.”

But, Robert Rusbuldt, IIABA president and CEO, said it’s also important to note “that our work with this program is far from over.”

He said, “Congress now has a year to work on a long-term extension and much needed permanent reforms such as an increase in maximum coverage limits and the addition of optional business interruption insurance.”

He also said that in the past Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace.

“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies (NAMIC).

“However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”

NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences.

NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.


National Underwriter
By ARTHUR D. POSTAL
Published 10/1/2010

College Bound: Renters Insurance Protects Your Possessions, Liability

Life on your own can be an arduous experience for college-aged adults. Signing up for classes, finding a job and looking for a place to live are just a few of the tough challenges that come with life after high school.

If things go wrong, you need to be ready. That’s why it’s smart to consider purchasing Renters Insurance so you can protect your personal belongings while living in an apartment or rental home.

According to a 2006, Insurance Research Council study, only 43 percent of renters had Renters Insurance.

“It’s important for young adults living on their own to think about all of the ‘what-ifs’ associated with renting an apartment or home,” said Darrin Sanger, NW Insurance Council communications director. “Many renters aren’t aware that a landlord’s insurance policy doesn’t cover a tenant’s personal property or liability.”

For $10 to $15 per month, Renters Insurance can protect you and your personal property in the event of a burglary or fire. Renters Insurance will also protect you if you’re found liable for injury to others. Obtaining Renters insurance through the same company that insures your vehicle may also earn you a multi-policy discount.

Renters Insurance covers:

  • Personal belongings such as clothes, furniture, jewelry, computers, artwork, bikes, televisions, stereo equipment and accessories.
  • Financial responsibility to other people injured at your home or elsewhere by you, a family member or your pet.
  • Additional living expenses if you are unable to live in your home or apartment because of a fire or another covered loss. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses.
  • Legal defense costs if you are taken to court.
  • Personal property from your vehicle such as stereos that are not permanently-installed, textbooks and sports equipment.

If you have further questions regarding Renters Insurance, contact your insurance agent or company. To order free brochures, Renters Insurance, call (800) 664-4942, or visit http://www.nwinsurance.org/index.htm.

Optional Federal Charter Will Be on Congress' 2011 Agenda, Rep. Frank Says

Creation of an optional federal charter for insurers will be on Congress’ 2011 agenda because it has strong bipartisan support, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has told state insurance legislators.

Coincidentally, the National Association of Professional Insurance Agents this week said that it is asking its members to lobby their congressmen during this month’s congressional recess to be steadfastly opposed to federal regulation of insurance in any form.

“PIA members will remind members of Congress and congressional candidates during August that America’s Main Street insurance agents expect them to vote ‘no’ on the so-called optional federal charter—no excuses and no compromises,” PIA president Jon D. Spalding said in a statement.

Rep. Frank made his comments to the National Conference of Insurance Legislators (NCOIL) during their summer meeting late last month.

NCOIL provided a summary of his remarks in its monthly newsletter.

Rep. Frank said he would remain neutral during the debate, and that he personally “saw no need for federal oversight of auto insurance.”

He also said the coming debate was a “not-surprising” follow-up to the massive financial services reform legislation just enacted by Congress, H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act.

He said that in his view, “the bill recognized the importance of state oversight.”

Rep. Frank’s comments are consistent with prior statements. He has repeatedly said that his experience as a Massachusetts state legislator “taught him long ago the tough realities of regulating auto insurance.”

NU Online News Service, Aug. 6, 1:56 p.m. EDT
Creation of an optional federal charter for insurers will be on Congress’ 2011 agenda because it has strong bipartisan support, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has told state insurance legislators.

Coincidentally, the National Association of Professional Insurance Agents this week said that it is asking its members to lobby their congressmen during this month’s congressional recess to be steadfastly opposed to federal regulation of insurance in any form.

“PIA members will remind members of Congress and congressional candidates during August that America’s Main Street insurance agents expect them to vote ‘no’ on the so-called optional federal charter—no excuses and no compromises,” PIA president Jon D. Spalding said in a statement.

Rep. Frank made his comments to the National Conference of Insurance Legislators (NCOIL) during their summer meeting late last month.

NCOIL provided a summary of his remarks in its monthly newsletter.

Rep. Frank said he would remain neutral during the debate, and that he personally “saw no need for federal oversight of auto insurance.”

He also said the coming debate was a “not-surprising” follow-up to the massive financial services reform legislation just enacted by Congress, H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act.

He said that in his view, “the bill recognized the importance of state oversight.”

Rep. Frank’s comments are consistent with prior statements. He has repeatedly said that his experience as a Massachusetts state legislator “taught him long ago the tough realities of regulating auto insurance.”

Aug. 6, 2010
National Underwriter

Questionable Insurance Claims Spike 14%; Hail, Glass Claims Lead The Way

As insurers report increases in 2010 catastrophe losses, many times due to storms with hail, an analysis by the National Crime Insurance Bureau (NICB) reveals a 107 percent increase in questionable claims referrals for hail damage claims.

The NICB has worked with law enforcement “in pursuing suspected unscrupulous roofing companies that take advantage of storms to fake or deliberately cause damage to roofs in an effort to pay for a replacement roof that wasn’t damaged by a storm,” said Joe Wehrle, NICB president and chief executive officer, in a statement.

Overall, the NICB found a 14 percent increase in questionable claims referrals during the 2010 first half compared with the first half last year.

The report examines suspicious property, casualty, commercial, workers’ compensation, vehicle and miscellaneous claims submitted to the NICB by member companies for review and investigation. There was an increase in referrals in four of the six categories as of the end of June.

In tracking first-half referrals since 2008 there has been a steady increase in all property referral reasons except for fire/arson, which actually decreased 3 percent in 2010 from 2009.

The most common referral reason was suspicious theft or loss with 3,647, a 16 percent increase comparing the first halves of 2009 and 2010.

Among 16 vehicle referral reasons, there were more than six times more referrals for auto glass fraud during the 2010 first half than there were during the same time in 2009. Previous signals of desperation due to the economy, referrals for owner give-ups, suspicious vehicle fire and questionable theft were all down in the first half of this year.

More than 39 percent of all casualty referrals were due to allegations against a medical provider such as excessive treatment, billing for services not rendered, inflated billing and solicitation. More than 7,000 referrals were submitted for a faked or exaggerated injury, an 11 percent increase. Staged accidents continue to be a problem as there were 27 percent more referrals for this than in the first half of 2009.

Referrals for questionable commercial and workers’ compensation claims decreased 6 percent and 9 percent, respectively.

One claim can have several referral reasons, the NICB explained.

Aug. 2, 2010
National Underwriter

Lock Thieves Out While on Vacation; Protect Your Home & Possessions

Sitting poolside at a vacation hotspot is not the place where you want to worry about the protection of your home because you didn't take the time to appropriately secure and insure your property.

Most burglaries occur in July and August. Homeowners Insurance claims for theft total about $1 billion annually, with the average claim around $2,500.

In 2008, there were an estimated 2.2 million burglaries - an increase of two percent when compared with 2007 data. Burglary accounted for 22.7 percent of the estimated number of property crimes committed in 2008, according to FBI crime statistics.

"A few simple precautions will make your home a lot less attractive to burglars," said Karl Newman, NW Insurance Council president, "and you'll be able to relax a little more while you're away."

Standard Homeowners Insurance generally covers the theft of most personal belongings and damage associated with burglary.

However, jewelry, furs, art and other expensive belongings typically have $1,000 to $2,000 worth of coverage. To protect your high-dollar items to their full value, you can purchase special coverage with no deductible.

As you plan a fun and relaxing vacation this summer, take time to safeguard your home and belongings by following these tips:

  • Standard Homeowners Insurance policies normally cover damage and theft caused by burglars.
  • Lock all doors and windows. Sliding glass doors have weak locks. Install a bolt lock and place a broomstick or dowel in the inside door track.
  • Make your home look less attractive to thieves. Leave blinds open in their usual position. Leave a little trash in your garbage can. Arrange to have your lawn mowed or your walk shoveled. All of these tactics can give burglars the indication that someone is home.
  • Stop all mail and newspaper deliveries. A stuffed mailbox or a pile of rolled newspapers in front of the door leaves a clear impression that you aren't home.
  • Trim hedges next to your home so burglars do not have a place to hide.
  • Tell police and dependable neighbors when you plan to be away and when you expect to return. Have a friend or neighbor keep an eye on your home and property.
  • Do not hide keys in secret places outside your home. Experienced burglars usually know where to look.
Call your company or agent to find out what your policy covers and the costs involved.

For free brochures on Homeowners Insurance and how to protect your home from burglary, contact NW Insurance Council at (800) 664-4942.

Climate Change: Insurers Weathering Storm as Disasters Increase

Despite increasing natural disasters around the globe, P/C insurers have remained fiscally strong. Here's an interesting article from National Underwriter that demonstrates how insurers' conservative and strong underwriting has helped the industry withstand some of the world's greatest natural disasters.

The number of meteorological catastrophe-driven events is increasing, causing more losses internationally, but insurers have proven themselves financially capable of handling those losses, according to experts.

The comments came during a webinar sponsored by Munich Re (http://www.munichreamerica.com/) reviewing the first half-year of natural catastrophes for 2010.

According to Carl Hedde, senior vice president and head of risk accumulation for Munich Reinsurance American Inc., catastrophe losses in the United States have been “tame” compared to the rest of the world, but the country has suffered significant catastrophe losses that, compared to the past 20 years, have outpaced losses in the past.

Among losses the nation has seen so far in 2010, he said thunder storms have resulted in 28 fatalities and $3 billion in insured losses; winter storms have caused 25 deaths and $2.39 billion in insured losses; and flooding has caused 50 deaths and $609 million in insured losses.

The number of catastrophe events has more than doubled since 1980, he noted, with a total of 95 events for the first half of 2010. The bulk of those losses are climate related.

Peter Hoppe, head of geo risks research, corporate climate center at Munich Re, said internationally the increased number of climate-related loss events points to a pattern showing the “increased vulnerability of our high tech society.”

The lion’s share of the $22 billion in catastrophe losses that have occurred this year internationally have taken place in South America as a result of the earthquake in Chile, with $8 billion in insured losses.

Winter storm Xynthia, which rocked Europe in February, resulted in $3.4 billion in insured loss, and severe storms and hail in the United States Midwest accounted for $1.07 billion in insured loss.

However, Mr. Hoppe said, the long-term trend going back to 1980 indicates that, globally, disasters have been trending up dramatically from less than 200 events in 1980 to 440 for the first half of 2010 alone. Most of these disasters, he pointed out, are climate related.

Mr. Hoppe said that global warming is contributing to these weather events. He said no single catastrophic event is proof of global warming, but the “trend indicates that is the cause.”

In an interview with NU Online News Service, Ernst Rauch, head of corporate climate center for Munich Re, said while there are social and economic reasons for the cost of catastrophes increasing, that does not explain the increased number of climate-related events.

He said the trend is not scientific proof of climate change, but the events are powerful indicators that it is taking place.

For insurers, he said, the changes will mean adjustments in their models. The adjustments, he noted, may mean an increase in risk for some and a decrease for others.

Robert Hartwig, president of the Insurance Information Institute, said while insurers and reinsurers have witnessed an increase in the number of catastrophes, they have still been able to pay losses, and there is no reason to believe that won’t continue.

He credited insurers’ success to their strong ability to underwrite risk and their financial model that helped them avoid the brunt of the economic meltdown.

Despite the economic and risk pressures, insurers have managed to remain solvent, but Mr. Hartwig noted that as the insurance industry goes through its inevitable cycle, impairments may increase in the future.

NU Online News Service, July 7, 3:25 p.m. EDT
The number of meteorological catastrophe-driven events is increasing, causing more losses internationally, but insurers have proven themselves financially capable of handling those losses, according to experts.

The comments came during a webinar sponsored by Munich Re (http://www.munichreamerica.com/) reviewing the first half-year of natural catastrophes for 2010.

According to Carl Hedde, senior vice president and head of risk accumulation for Munich Reinsurance American Inc., catastrophe losses in the United States have been “tame” compared to the rest of the world, but the country has suffered significant catastrophe losses that, compared to the past 20 years, have outpaced losses in the past.

Among losses the nation has seen so far in 2010, he said thunder storms have resulted in 28 fatalities and $3 billion in insured losses; winter storms have caused 25 deaths and $2.39 billion in insured losses; and flooding has caused 50 deaths and $609 million in insured losses.

The number of catastrophe events has more than doubled since 1980, he noted, with a total of 95 events for the first half of 2010. The bulk of those losses are climate related.

Peter Hoppe, head of geo risks research, corporate climate center at Munich Re, said internationally the increased number of climate-related loss events points to a pattern showing the “increased vulnerability of our high tech society.”

The lion’s share of the $22 billion in catastrophe losses that have occurred this year internationally have taken place in South America as a result of the earthquake in Chile, with $8 billion in insured losses.

Winter storm Xynthia, which rocked Europe in February, resulted in $3.4 billion in insured loss, and severe storms and hail in the United States Midwest accounted for $1.07 billion in insured loss.

However, Mr. Hoppe said, the long-term trend going back to 1980 indicates that, globally, disasters have been trending up dramatically from less than 200 events in 1980 to 440 for the first half of 2010 alone. Most of these disasters, he pointed out, are climate related.

Mr. Hoppe said that global warming is contributing to these weather events. He said no single catastrophic event is proof of global warming, but the “trend indicates that is the cause.”

In an interview with NU Online News Service, Ernst Rauch, head of corporate climate center for Munich Re, said while there are social and economic reasons for the cost of catastrophes increasing, that does not explain the increased number of climate-related events.

He said the trend is not scientific proof of climate change, but the events are powerful indicators that it is taking place.

For insurers, he said, the changes will mean adjustments in their models. The adjustments, he noted, may mean an increase in risk for some and a decrease for others.

Robert Hartwig, president of the Insurance Information Institute, said while insurers and reinsurers have witnessed an increase in the number of catastrophes, they have still been able to pay losses, and there is no reason to believe that won’t continue.

He credited insurers’ success to their strong ability to underwrite risk and their financial model that helped them avoid the brunt of the economic meltdown.

Despite the economic and risk pressures, insurers have managed to remain solvent, but Mr. Hartwig noted that as the insurance industry goes through its inevitable cycle, impairments may increase in the future.

Source: National Underwriter

National Flood Insurance Program Reauthorized

WASHINGTON-The Senate, last night, extended the long delayed National Flood Insurance Program, an action that one agent group declared unacceptable due to political wrangling.

The reauthorization, which extends the program until Sept. 30, is retroactive, according to officials of the Independent Insurance Agents and Brokers of America, whose president expressed dismay that the program is being subject to delay.

“It is alarming that the NFIP was allowed to remain expired for so long, causing so much confusion and potentially leaving desperate homeowners and small businesses unprotected for almost a month,” said Robert Rusbuldt, president and chief executive officer of the IIABA in a statement.

He added that we “are also greatly concerned that these short expiration periods and patchwork of temporary extensions will negatively impact the market.”

The current measure, as soon as it is signed by President Obama, allows any new policy applications or renewals that were signed and submitted during the hiatus to become effective from the date of application (or in the case of waiting periods, the waiting period will start from the date of application).

The bill would restore authorization of a program that lapsed June 1; marking the fourth time the program has lapsed.

Short-term reauthorizations have been held up because the program is being held hostage to efforts by Democrats to use it as an incentive to get Republicans to act on their other priorities, for example, extensions of jobless insurance and a program that subsidizes healthcare coverage for the unemployed.

Action on a longer-term extension has been delayed because the program has a deficit nearing $20 billion, but Congress is reluctant to act to reduce that deficit by raising rates to “market level” because that would generate severe criticism from hard-pressed homeowners.

The temporary extension bill passed by the Senate was passed by the House on June 23.

Insurance industry officials have reacted strongly by demanding that Congress restore certainty to the program and promptly adopt a long-term extension.

While praising the bills passage, Jimi Grande, National Association of Mutual Insurance Companies senior vice president of federal and political affairs said, “The hurricane season runs two months beyond the NFIP’s new Sept. 30 expiration date. Congress must not let the program lapse again, but that’s just the minimum. The best thing they can do is take this time to pass legislation that would implement common sense reforms and help the NFIP make the first steps towards financial soundness.”

“This is yet another short term fix, as Congress has once again kicked the can down the road…,” said Professional Insurance Agents National President-elect Brian Marino, co-chair of the association’s working group on natural catastrophes. “Although we greatly appreciate the short term extension, Congress has failed to extend the program through the Atlantic hurricane season. With our economy in peril, we cannot have closings held in limbo. The real estate market has again suffered due to this needless lapse in coverage.”

“We’re pleased this program has been extended, even if it’s for a short time,” said Leigh Ann Pusey, president and CEO of the American Insurance Association. “Between now and September, Congress must pass a long-term extension.”

“We are pleased that Congress reauthorized the flood insurance program,” said David Sampson, president and CEO of the Property Casualty Insurers Association of America. “But this three-month extension threatens to leave communities vulnerable again in September, at the height of hurricane season.”

National Underwriter (July 1, 2010)

Fourth of July Sparks Safety & Insurance Concerns

The Fourth of July is a day of celebration for millions of Americans. Picnics, barbecues and, of course, noisy and spectacular fireworks are all part of the festivities. Independence Day, however, can be dangerous if safety is not a priority.

Fireworks caused 22,000 fires in 2008, which resulted in 7,000 injuries and $42 million in property damage, according to the National Fire Protection Association.

“It’s a great time to celebrate our country’s freedom,” said Karl Newman, NW Insurance Council president. “It’s also a time to remember that with freedom comes responsibility – including safe use of fireworks.”

If fireworks are used near your home, your house is vulnerable to fire and your family and guests are vulnerable to injury.

A standard Homeowners Insurance policy covers fire damage to your home and property, including plants, trees and shrubs, less your deductible. Your Homeowners Insurance also covers injuries to guests up to the limits of your Liability Coverage.

Carelessness or lack of knowledge can lead to a spoiled holiday. NW Insurance Council offers the following safety tips to help you enjoy your Independence Day:
  • Always read and follow the instructions listed on the fireworks.
  • Do not allow children to play with fireworks. Always have a responsible adult present.
  • Buy fireworks and all pyrotechnics from reliable businesses.
  • Always use fireworks outdoors. Never ignite inside your home or garage.
  • Always have water handy to douse hot fireworks (a garden hose and a bucket).
  • Never experiment or make your own fireworks.
  • Light only one firework at a time.
  • Store fireworks in a cool, dry place.
  • Dispose of fireworks properly by soaking them in water and then disposing of them in your trashcan.
  • Never throw or point fireworks at other people.
  • Never shoot fireworks in metal or glass containers.
  • Stay away from illegal explosives.

If you'd like more information on fireworks safety and Homeowners Insurance, contact NW Insurance Council at (800) 664-4942.

Make Common Sense a Key Ingredient to Your Outdoor Grilling

Who doesn't enjoy a nice barbecue? Outdoor grilling is a terrific way to enjoy the summer with friends and family. An improperly handled grill, however, can cause fires. Propane tanks can be explosive. You can prevent a tragedy from happening by making common sense a key ingredient of your outdoor fun.

From 2003 to 2006, U.S. fire departments responded to an average of 7,900 home fires involving grills, hibachis or barbecues per year, including an average of 2,900 structure fires and 5,000 outside fires. These 7,900 fires caused, on average, 10 deaths, 120 reported injuries and $80 million in direct property damage.

“Your Homeowners policy covers fire caused by a barbecuing accident,” said Karl Newman, NW Insurance Council president. “However, the cost, hassle and danger associated with a fire can be reduced or eliminated by following common-sense safety guidelines that can make an insurance claim unnecessary.”

Backyard grillers with Homeowners Insurance can have peace of mind knowing that standard policies cover damage to your home, its contents and structures on your property caused by fire.

For furniture and personal belongings, most insurance companies provide replacement cost coverage up to 70 percent of the amount of insurance you have on the structure of your home, subject to both your deductible and policy limitations for special items such as jewelry, furs or antiques.

NW Insurance Council offers these tips to help you safely enjoy your barbecue this summer:
  • When ready to barbecue, wear a heavy apron and an oven mitt that fits high up over your forearm.
  • With gas grills, make sure the gas cylinder is always stored outside and away from your house. Make sure valves are off when you are not using them. Regularly check for leaks in the connections using a soap and water mix that will show bubbles where gas escapes.
  • Keep your barbecue grill on a level surface away from the house. Be sure to leave sufficient space between the grill and siding, eaves, garage, landscaping, and most of all, children.
  • For charcoal grills, only use starter fluids designed for those grills. Never use gasoline, and only use a limited amount of starter fluid. If the fire is too low, add dry kindling and more charcoal if necessary. Never add more liquid fuel. You could experience a flash fire.
  • Be sure to soak the coals with water before you put them in the trash.

You can get more information on grilling safety and facts concerning Homeowners Insurance by contacting NW Insurance Council at (800) 664-4942.

Study: Warnings Don't Prevent Texting While Driving

Young adults are more likely to text and talk on the phone while driving after watching videos showing the dangers of doing so, according to a recent study co-published by a professor at the University of South Florida in Sarasota-Manatee.

For the study, about 840 students from Florida universities were shown graphic public service announcements depicting the dangers of distracted driving and were asked them if they would be more or less likely to commit those offenses after viewing them.

The students were asked to indicate on a scale from one to seven how likely they were to text or talk and drive before and after watching the videos, according to Dr. Ron Lennon, assistant professor of Marketing in the College of Business at USF.

Before watching the videos, the average for texting and driving was 3.44 and for talking and driving was 4.31, the study found. After the videos, the average for texting went up to 3.54, up 3 percent, while the average for talking went up to 5.15, or up 11 percent.

Known as the "boomerang effect," the phenomenon is similar to people who smoke more often after seeing anti-smoking warnings, according to Lennon.

According to the World Health Organization, more than 1.2 million people die in road crashes worldwide each year and another 20 to 50 million are injured annually.

Crash injuries are the leading cause of death for 15-29 year-olds.

Tampa Bay Online/Published: June 11, 2010

Parents: Don't Let Graduation Dent Your Insurance

Thousands of high school seniors and parents are preparing for graduation this week.

Graduation can be both exciting and scary as high-school seniors and parents move to a new stage of their lives. Preparing for college, finding a job and a place to live are just a few of the tasks teens will face this summer as they ready themselves for life after high school.

During this hectic period, families can easily overlook needed adjustments to insurance policies that cover their young adults.

“Graduation is a time to celebrate achievement and a bright future for graduates,” said Karl Newman, NW Insurance Council president. “It’s definitely not the time to find out you don’t have enough coverage, or the right coverage, if an accident happens.”

  • Often, a family might not need more coverage, just changes in the way coverage is set up. NW Insurance Council encourages teens and parents to talk with their insurance company or agent to discuss their insurance needs before or immediately after graduation day.

    Here are a few scenarios that should raise a red flag for graduates and parents:

    A high school or college graduate permanently moves away from home. This creates a possible coverage problem for personal property, since a child must reside in the parent’s household for the child’s personal property to be covered under the parent’s policy. If the graduate permanently relocates, he or she may need an inexpensive Renters Insurance policy. If the child lives in a school dorm room, however, he and his personal property are covered under his parent’s policy.
  • A high school or college graduate takes a summer job as a delivery person for a pizza parlor and uses his or her own car (or one owned by parents) to make deliveries. Because many personal automobile insurance policies exclude deliveries, this creates a coverage problem for damage caused in an accident when delivering pizza.
  • A high school or college graduate gets involved in a volunteer program transporting young people, the homeless or the elderly from one place to another and uses his or her own car (or one owned by the parents). The parents could be liable, according to their auto policy, for injuries or property damage that occur while their child is driving.
  • A graduate gets a job and starts driving a family car much more than they used to. If the car is insured through the parents, this could create a need for coverage adjustment because some policies specify that the car will not be driven to work or will only be driven a limited number of miles per day.

As parents and seniors prepare for graduation day, it’s important that families check with their insurance company or agent to see how their coverage may need to be changed. A few minutes adjusting coverage can prevent long-term headaches after this year’s graduates continue down the Walk of Life.

Common sense a key ingredient for safe outdoor grilling

Tomorrow is shaping up to be sunny and warm - ideal conditions for an outdoor barbecue with friends and family.

An improperly handled grill, however, can cause fires and propane tanks can be explosive. Common sense is the key ingredient to prevent your holiday from becoming tragic and costly.

From 2003 to 2006, U.S. fire departments responded to an average of 7,900 home fires involving grills, hibachis or barbecues per year, including an average of 2,900 structure fires and 5,000 outside fires. These fires caused, on average, 10 deaths, 120 reported injuries and $80 million in direct property damage.

A standard Homeowners Insurance policy covers fire caused by a barbecuing accident. However, the cost, hassle and danger associated with a fire can be reduced or eliminated by following common-sense safety guidelines that can make an insurance claim unnecessary.

Backyard grillers with Homeowners Insurance can have peace of mind knowing that standard policies cover damage to homes, contents and structures on the insured property caused by fire.

For furniture and personal belongings, most insurance policies provide replacement cost coverage up to 70 percent of the amount of insurance on the structure of the home, subject to both a deductible and policy limitations for special items such as jewelry, furs or antiques.

Here are some helpful tips to help you safely enjoy your barbecue:

  • When ready to barbecue, wear a heavy apron and an oven mitt that fits high up over your forearm.
  • With gas grills, make sure the gas cylinder is always stored outside and away from your house. Make sure valves are off when you are not using them. Regularly check for leaks in the connections using a soap and water mix that will show bubbles where gas escapes.
  • Keep your barbecue grill on a level surface away from the house. Be sure to leave sufficient space between the grill and siding, eaves, garage, landscaping, and most of all, children.
  • For charcoal grills, only use starter fluids designed for those grills. Never use gasoline, and only use a limited amount of starter fluid. If the fire is too low, add dry kindling and more charcoal if necessary. Never add more liquid fuel. You could experience a flash fire.
  • Be sure to soak the coals with water before you put them in the trash.

For more information on grilling safety and Homeowners Insurance, contact NW Insurance Council at (800) 664-4942.

Checking Your RV Insurance Now Will Save You Headaches Later

By Darrin Sanger
May 28, 2010

Thousands of RV owners across the state are gearing up for Memorial Day weekend and a summer of traveling and camping trips.

If you own an RV or you're looking to buy one, make sure it's properly insured before you hit the road. This simple step could save you from a summer's worth of headaches and financial burdens.

"The main point of a vacation is to get away from it all," said Karl Newman, NW Insurance Council president. "The last thing you want is the double whammy of having an accident and then finding out you don't have the right insurance on your RV."

Your RV is more than a car and insurance for your RV should reflect that. Usually, RV Insurance will cover more than what your car insurance covers.

The NW Insurance Council offers the following tips to help you be sure you've properly insured your recreational vehicle:

  • Consider insuring your RV on its own policy, rather than adding it to your auto policy. You keep many items in your RV that you wouldn't normally keep in your car such as furnishings, jewelry, laptops, video recorders and clothing.
  • Coverage is available in the event of loss or damage to certain items outside the RV up to 25 percent of the replacement cost.
  • If parked at a campsite, you could be liable if someone is injured in the surrounding area.
  • If your RV is damaged while you're traveling, you'll need a place to stay and a way to get there. A standard auto policy may not cover these losses or RV towing, which could cost you thousands of dollars.
  • The high value of many RVs and the potential for extensive physical damage from an accident may mean you'll need additional coverage. Evaluate coverage available through your auto insurance company. If the coverage is not adequate to meet your needs, explore coverage with a company or agent who writes policies specifically designed for RVs.

You can get more information on insuring your RV by visiting NW Insurance Council or calling at (800) 664-4942.

Seattle, Yakima, Spokane, Eugene Rank in Nation's Top 50 For Auto Theft; More Than 37,400 Vehicles Stolen Across Northwest

Top 10 Most Stolen Vehicles

The Northwest continues to be a hotbed for auto thieves as several cities rank high in the nation despite an overall 14.9-percent drop in theft rates last year.

Oregon saw the largest dip as car thefts dropped 14 percent from 2008.

According to the National Insurance Crime Bureau's annual Hot Spots Report, Yakima, WA, topped all Northwest cities with the sixth-highest auto theft rate in the nation. Spokane, WA, ranked 18th, followed by the Seattle-Tacoma-Bellevue area at 26th. Eugene ranked 46th, the Portland-Vancouver-Beaverton metro area ranked 77th and Salem ranked 84th.

Last year, 37,427 vehicles were reported stolen across all three states, an average of 103 vehicles per day and more than four vehicles an hour.

While the decrease in thefts is encouraging for drivers, auto theft is still a costly crime vehicle owners pay for through their insurance premiums.

Vehicle theft is the nation's number-one property crime, costing an estimated $6.4 billion in 2008, according to the FBI. The average value of a motor vehicle reported stolen in 2008 was $6,751.

"Consumers literally pay billions each year for auto theft," said Karl Newman, NW Insurance Council president. "The cost to replace stolen vehicles and repair those that are recovered is reflected in your insurance rates."

Washington ranked highest among the Northwest states with 26,684 stolen vehicles, a 15.8 percent drop from 31,681 in 2008.

In Oregon, 9,727 vehicles were stolen last year, an 14-percent drop from 2008 figures when thieves stole 11,325 vehicles.

Idaho reported 1,016 stolen vehicles in 2009, a 1.2-percent increase from 1,004 stolen vehicles in 2008.

Is your car next? NW Insurance Council and NICB offer the following tips to help you reduce the risk of your vehicle from being stolen:

  • Keep your doors locked and windows completely rolled up.
  • Remove keys from the ignition, even when briefly stepping away from your car.
  • Keep valuable items such as bags, purses, cell phones and briefcases out of sight.
  • Always park your vehicle in well-lit areas.
  • Always activate your vehicle's security or alarm system when parked.
  • Before buying a new vehicle, check with your insurance company to find out which vehicles have the highest risk of being stolen.

If you witness or have knowledge of an auto theft, contact your local law enforcement agency. In some cases, auto theft is a form of insurance fraud when automobile owners stage phony accidents or arrange to have their vehicles stolen with hopes of collecting the insurance money.

If you know of anyone who has filed a false insurance claim, you may be eligible for up to $5,000 in reward money offered by NW Insurance Council. Call the Fraud Hotline at 800-TEL-NICB.

For more information about NICB's Hot Spots Report and insurance fraud, visit NW Insurance Council.

Get a CLUE: Understand a Home’s Claims History Before You Buy

SEATTLE - The home-buying season is just around the corner and many people are eagerly viewing potential new homes. Home insurers, however, urge buyers to take a cautious approach when evaluating houses. Without knowing a home's claims history, buyers could get stuck living in money pits instead of dream homes.

If you're in the market for a new home, NW Insurance Council encourages you to obtain a Loss History Report on a home before making an offer. Loss History Reports gives potential buyers the ability to review up to five-years of a home's claims history and verify if any prior damage was repaired correctly.

"New tools have become available in recent years that help a prospective homebuyer evaluate the condition of a home and the likelihood of burglary or vandalism in the neighborhood," said Karl Newman, NW Insurance Council president.

"Some new homeowners who were unaware of these tools have been left with structural problems, substantially higher insurance rates or have had difficulty finding coverage because of past claims filed by previous owners," he added.

Checking a home's claims history is similar to examining a car's Vehicle History Report from CarFax, AutoCheck or ConsumerGuide, and allows you to make a well-informed purchasing decision.

How can you find out the history of a home before you buy? Ask the seller to provide you with the Loss History Report. This report gives you a five-year claims history of the home. If the current homeowner filed a claim in the past five years, including claims for water damage, fire or theft, the Loss History Report will show it.

If you're considering buying a new home, NW Insurance Council offers the following facts and tips to help you examine a home's claims history:

Loss History Reports are a powerful tool for both buyers and sellers. Buyers can request a Loss History Report from the seller as part of the real estate transaction. The reports can identify potential problems for the buyer's inspector to investigate.
A Loss History Report is simply a record of past claims.
70 to 80 percent of homes have clean Loss History Reports.
There are two types of Loss History Reports available to homeowners:
CLUE - Comprehensive Loss Underwriting Exchange, developed by ChoicePoint, Inc., Atlanta, Ga. This report is a five-year history of claims filed by all past and current owners of the property.
A-PLUS - Automobile-Property Loss Underwriting System, developed by Insurance Services Office (ISO). The A-PLUS report is a history of the current owner's claims up to five years. If the seller has owned the home for less than five years, the report will not include claims filed by past owners.
Both reports include a five-year loss history for homes and homeowners.
Homeowners, insurance companies and insurance agents have access to Loss History Reports.
A homebuyer cannot access a Loss History Report until a real estate contract is signed, due to the "permissible access" rules of the Federal Fair Credit Reporting Act (FCRA). The seller can obtain loss History Reports for less than $15.
CLUE Reports are available online at www.choicetrust.com or by mail at (888) 497-0011 for $19.50.
A-PLUS reports are available at no cost for the first report. Call (800) 709-8842.
Consumers adversely affected by their Loss History Reports can get free copies of their reports from CLUE or A-PLUS.

For more information on homeowners insurance and Loss History Reports, visit NW Insurance Council or call (800) 664-4942.

May Is National Bike Month – Ride Safely and Make Sure You Are Adequately Covered

NEW YORK, May 10, 2010 — Thanks to National Bike Month and Bike to Work Week (May 17-21), many cyclists are getting their bicycles out of storage and onto the roads. Whether they ride commuter, hybrid, mountain or racing bikes, cyclists should understand the rules of the road and protect their financial investment with the proper insurance, according to the Insurance Information Institute (I.I.I).

Bicycling has increased in popularity both as a sport and as a means of transportation. Between 1992 and 2006, bicycle sales increased roughly 20 percent in the United States, from 15.3 million to 18.2 million per year, the U.S. Department of Justice noted in its most recent report. According to the National Sporting Goods Association, 44.7 million people rode bikes in 2008, up 11.4 percent from the previous year.

According to the Federal Bureau of Investigation, more than 221,936 bicycles were stolen in 2008, while National Crime Victim Survey data from 2007 puts the number of incidents of bicycle and bicycle parts theft closer to 1.2 million.

Bicycles are stolen most often in densely populated areas such as cities and suburbs, but university and college towns are another hot spot; in fact bicycle thefts represent over half of property crimes on campuses.

“Bicycles can cost anywhere from several hundred dollars for a garden variety bike to custom-made options that can cost thousands of dollars,” said Jeanne Salvatore, senior vice president and consumer spokesperson for the I.I.I. “To protect your bike, always make sure it is locked up and that you have adequate insurance coverage.”

If you are purchasing a new bike, keep the receipt and call your insurance agent or company representative immediately. Depending on the cost of the bike, you may want to list it on your policy or purchase an endorsement. Your insurance agent or company representative can review your coverage options with you.

Bicycles are covered under the personal property section of standard homeowners and renters insurance policies. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane or other disaster listed in your policy.

There are two types of coverage for personal property:

  • Actual Cash Value -- Actual cash value reimburses you for what the bicycle is actually worth given its age. A 10-year-old bicycle, for example, would be valued at the cost of a comparable bicycle minus 10 years depreciation.
  • Replacement Cost Coverage -- Replacement cost coverage reimburses you for what it would cost to replace your 10-year-old bicycle with one of like kind and quality at current cost. Replacement cost coverage costs about 10 percent more than actual cash value, but it is a good investment.

Homeowners and renters insurance policies also provide liability protection for harm you may cause to someone else or their property. If you injure someone in a bicycle accident and he or she decides to sue, you will be covered up to the limits of your policy. Your homeowners or renters insurance also include no-fault medical coverage in the event you injure someone. This coverage usually ranges from $1,000 to $5,000. If you own an expensive bicycle, you may want to consider getting an endorsement

To make filing a claim easier, the I.I.I. suggests the following:

  • Save all your receipts -- When you buy your bicycle you may purchase expensive equipment to go with it. Be sure to save your receipts. The cost of a helmet, patch kits, pumps, extra inner tubes and other essentials, not to mention that fancy new bike jersey, can add up quickly. If your bike and related items are stolen or destroyed, having receipts can help speed the claims process.
  • Add your bicycle and related items to your home inventory -- Everyone should have an up-to-date home inventory of all their personal possessions. An inventory can help you purchase the correct amount of insurance and make the claims filing process easier if there is a loss. To help you create your inventory, the I.I.I. provides free, online software at KnowYourStuff.org. As well as listing all your possessions (and their serial numbers), the software allows you to add digital photographs, save scanned receipts And generate customized reports, which you can use when filing your claim.

Of course the best protection of all is to keep your bike safe; to help avoid theft, follow these simple rules:

  • Always lock up your bike, even if it is in your garage, an apartment stairwell, or a college dormitory.
  • Lock your bicycle to a fixed, immovable object like a parking meter or permanent bike rack. Be careful not to lock it to items that can be easily cut, broken or removed, and that the bike cannot be lifted over the top of the object to which it is locked.
  • Lock up your bicycle in a visible, well-lit area.
  • Consider using a U-lock and position the bike frame and wheels so that they take up as much of the open space within the U-portion of the lock as possible. The tighter the lock-up, the harder it is for a thief to use tools to attack the lock. Always position a U-lock so that the keyway is facing down towards the ground. Do not position the lock close to the ground as this makes it easier for a thief to break it.
  • Don’t lock up your bicycle in the same location all the time. A thief may notice the pattern and target you.
  • Consider registering your bike with the National Bike Registry.

The National Highway Safety Administration suggests that cyclists follow these seven rules:

  1. Protect Your Head -- Never ride a bike without a properly fitted helmet.
  2. Assure Bicycle Readiness -- Ride a bike that fits you and check all parts of the bicycle to make sure they are secure and working well.
  3. Learn and Follow the Rules of the Road -- Bicycles are considered vehicles on the road; therefore riders must follow the same traffic laws as drivers of motor vehicles.
  4. Act Like a Driver of a Vehicle -- Always ride with the flow of traffic, on the right side of the road, and as far to the right of the road as is practicable and safe.
  5. Be Visible -- Always assume you are not seen by others and take responsibility for making yourself visible to motorists, pedestrians and other cyclists.
  6. “Drive with Care” -- When you ride, consider yourself the driver of a vehicle and always keep safety in mind. Ride in the bike lane, if available. Take extra care when riding on a roadway. Courtesy and predictability are key to safe cycling.
  7. Stay Focused. Stay Alert -- Never wear headphones as they hinder your ability to hear traffic. Be aware of your surroundings and ride defensively.

    To learn more about bicycle safety, visit the National Highway Traffic Safety Administration

    For a related Web video, go to Bicycle Insurance Quiz.

    For a related Video News Release, go to Bicycle Safety. Reporters who would like a DVC Pro or Beta hard copy of the b-roll footage, please contact: Susan Stolov at 202-230-7040 or Susan Stolov@WashingtonIndependentProductions.com.

    For additional information on bike month activities, contact the League of American Bicyclists.

    The Insurance Information Institute is a nonprofit, communications organization supported by the insurance industry.