Insurance Blog

• 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.

• 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.

• 
  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.

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.

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.

• Spay or neuter your dog. Studies show that dogs are three times less likely to bite if they have been neutered.
• Socialize your dog so that it understands how to act around people and other animals.
• Discourage children from disturbing a dog that is eating or sleeping.
• Play non-aggressive games such as fetch. Playing aggressive games like tug-of-war can encourage inappropriate behavior.
• Do not approach a strange dog and avoid eye contact with a dog that appears threatening.

For more information on dog bites and insurance, visit NW Insurance Council or call (800) 664-4942.

1. Document the damage and take pictures of personal property that has been damaged.
2. If safe to do so, make temporary repairs to prevent further loss from rain or wind. Keep receipts for reimbursement.
3. Use only licensed, reputable building contractors. Be sure they have the proper building permits.
4. 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 to leave work unfinished.
5. Don't pay a lot for repairs unless authorized by your insurance adjuster. You could get stuck with the bill if the repairs are deemed excessive.
6. Don't discard anything that is damaged until it is examined by your adjuster. You could miss out on important coverage for an item.
7. If your home was damaged by a tree that fell from a neighbor's property, your insurance will cover the damage. In order for your neighbor's insurance to cover the damage, you'll need to demonstrate that your neighbor was negligent or that the tree was at risk to falling before the loss (ex: dead, diseased).