Insurance Blog

• 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 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.

• 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.

• 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.

• 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.

• 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.

• 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.

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.

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

• 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.

• 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.

• 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.

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.

• 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.

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.

• 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.

• 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.

• 
  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.

• 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.

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.

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.

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.