Category: Personal

Nearly every home in America has a powerful and primed source of fire at this very moment, and it’s called electricity. From overloaded outlets to dated or defective wiring, there’s likely to be at least one electrical fire hazard in some corner of your home.

The United States Consumer Product Safety Commission reports that faulty electrical wiring in residential homes cause over 40,000 fires each year. Over the last decade, defective electrical wiring has caused an average of 350 deaths per year.

According to the National Electrical Safety Foundation, homeowners can use the following fire prevention tips to help create a fire-proof home electrical system:

* Use child-proof outlets to prevent small children from sticking an object into the outlets.

* Do periodic checks of all electrical cords, replacing any damaged or frayed ones, untangling knotted cords, and ensuring that none have been placed under carpets or rugs.

* Never overload outlets or extension cords. Although not always present, it could be a sign of an overloaded circuit if your appliances aren’t working up to par, the television has a poor picture, the HVAC isn’t performing properly, and/or the lights are dimming on their own. You might also ask an electrician to tell you what the maximum capacities are for the circuits in your home. By knowing this, you can add up the wattage of all the electrical devices plugged into each circuit and be able to ensure that the total load for each circuit is below its maximum capacity.

* Consider updating the entire electrical system with copper wiring in homes 40 or more years of age. Older homes with dated aluminum wiring are more prone to electrical fires than those with more fire-resistant copper wiring.

* Use the proper wattage bulb for every light fixture and lamp in your home, ensuring that you never exceed the recommended wattage.

* Arc fault circuit interrupters (AFCI) can be installed to help protect against electrical fires caused by arc faults, which are simply electrical currents being discharged across a gap. Wire insulation that’s pinched, overheated wires, and improper electrical connections are common sources of arc faults.

* Ground fault circuit interrupters (GFCIs) can be installed in your bathrooms, utility room, and kitchen to help protect your family from the risk of electrocution. GFCIs will detect any imbalance in electricity and shut down the electrical system.

* Use a power surge protection device for your computer and other large electronics. Electrical devices plugged into a circuit that receives a power surge, or sudden rush of voltage, can be damaged beyond repair.

Of course, despite all precautions, you still need to know what to do should an electrical fire start.

For an electrical fire at a wall outlet, you can either turn off the main switch -or- if you can do it safely, immediately try to pull anything that’s plugged into the outlet out by pulling on the end of the cord furthest away from the outlet. CO2 fire extinguishers can be used for small electrical fires, but do remember never to use water on an electrical fire.

In the event the electrical fire is large or otherwise uncontrolled, then you should evacuate the home and immediately alert the fire department that you have an electrical fire. It’s important that you tell the fire department if you suspect the fire could be electrical since they may be able to shut off the main power source and prevent it from spreading.

According to the FBI’s National Crime Information Center, one vehicle is stolen about every 25.5 seconds in the U.S., which amounts to a total of 1,235,226 stolen U.S. vehicles and upwards of 7.6 billion dollars in vehicle losses.

Despite the tremendous expense involved when a car is stolen, many consumers still aren’t preparing in advance to handle the possibility of a vehicle theft. A number of common misconceptions have contributed to consumers adopting a defeatist attitude about vehicle theft. There are a number of vehicle owners that feel it’s all but impossible to prevent becoming a victim of vehicle theft, even when protective methods like anti-theft devices are used. This type of defeatist attitude can have serious and unnecessary consequences for vehicle owners.

The Wiser Drivers Wise Up project was started by the Council of Better Business Bureaus, the Insurance Information Institute, and The National Insurance Crime Bureau to dispel the defeatist attitude and teach drivers how to handle their vehicle being stolen. The program includes five auto theft myths that can actually leave a vehicle owner more vulnerable to having their vehicle stolen:

1. Older vehicles aren’t targeted by thieves. Statistics clearly show this myth isn’t true. For example, The National Insurance Crime Bureau reports that the five top stolen model years for 2009 were: 1994 Honda Accord, 1995 Honda Civic, 1991 Toyota Camry, 1997 Ford F-150 Pickup, and 2004 Dodge Ram Pickup.

2. The majority of vehicle thefts occur in unprotected areas. Again, statistics clearly disprove this myth. According to one FBI report on the subject, more than a third of all vehicle thefts take place from a home. The same report showed that only two in ten vehicle thefts take place in a parking lot and that only a very small number of vehicles are stolen or carjacked along roadways, highways, and alleys. So, parking in a an area felt to be secure doesn’t decrease the likelihood of your vehicle being stolen.

3. Anti-theft devices aren’t hard to install. Unless, you’re trained on the complexities of a vehicle’s electronic workings, then it’s best to pay for a professional to install, wire, and test the anti-theft device for you. It might be tempting to go with the cheapest price, but keep in mind that a cheap price doesn’t always equate to a bargain. Check with the Better Business Bureau to help you determine if the installer is running a reputable business, especially if a business is offering a substantial price difference from their competitors. If the technician that will be installing your alarm system hasn’t been certified by the Mobile Electronics Certification Program (MECP), then you might want to consider a different installer. Make sure that the installer provides instruction on how the alarm system works and is operated. You will also want a written warranty from the installer.

4. The police usually find stolen vehicles. Only half of all stolen vehicles are ever recovered. The first few days following the theft will be critical, as the chance of recovery diminishes with each day the thief possesses it. The highest number of vehicle thefts occur on Saturdays and Fridays. The highest number of recoveries are from vehicle thefts occurring on a Monday or Tuesday.

5. Insurance companies always provide victims of vehicle theft with a rental car. Check your policy; while theft coverage is part of a comprehensive auto insurance policy, it may or may not include a rental replacement car following a theft.

In closing, vehicle owners shouldn’t make the costly mistake of assuming vehicle theft is an inevitable occurrence. It’s also advisable to do an annual review of your auto policy for mandatory coverages, needed coverages, and coverage features like rentals and roadside assistance.

When it comes to purchasing insurance, fear is an important motivator. We are justified in our worries about protecting assets such as homes and automobiles, and we buy insurance to protect our financial integrity. Despite our best efforts, sometimes our insurance does not offer full financial protection. This is not necessarily because there is a problem with the insurance policy; it can be a result of human failure. When purchasing an insurance policy, many people fail to look at the true level of coverage that is necessary to restore assets to their pre-disaster conditions.

Below are five common insurance mistakes to avoid at all costs:

*Trying to do it all on your own – Shopping for insurance is complicated, and it is best to seek professional advice. While it is fine to use the Internet to educate yourself, you should ultimately work with an independent agent who can offer multiple options for your consideration. An agent will help you untangle the complex issues involved in purchasing the proper amount of coverage to meet your needs.

*Buying into the hype – If it sounds too good to be true, it probably is. Where insurance is concerned, you often get what you pay for. A company that promises large discounts is most likely offering less coverage.

*Slicing it too thin– In a difficult economy, many people try to cut their living expenses to the bone. While it may be prudent to cut out some of the “extras” we enjoy such as eating out and going to the movies, reducing an insurance policy is risky. If and when disaster strikes, you’ll be glad you didn’t cut back on insurance premiums, which can result in thousands of dollars of uncovered damages.

*Neglecting regular protection reviews – Consider how much your life can change in a short amount of time. For instance, has the value of your home gone up or down in the last few years? Has a new car been purchased or has a teenager just gotten their driver’s license? Has an adult child finished their higher education? These are just a few of the changes that can cause either an overlap or gap in your insurance protection.

*Restricting your options – There are quite a few insurance companies that advertise a “one size fits all” approach to insurance. In some cases, these companies do not have your best interests at heart. It is best to consider multiple options, rather than limiting yourself to one choice.

Many Americans have a passion for collecting costly antiquities, while others may simple inherent some valuable antiques from their relatives. Either way, these antiques are often not adequately protected under a typical homeowner’s insurance policy. Being inadequately insured could mean significant financial and emotional loss if something were to happen to one of your antiques.

As far as antiques go, a standard homeowner’s insurance policy may very likely include restrictive coverage and limits and have a valuation only on the actual cash value. Before you mistakenly assume that adding a personal property replacement cost endorsement to your homeowner’s policy will provide you with coverage, you should realize that the endorsement lists several ineligible properties, including antiques, paintings, art, and memorabilia. There are also several coverage restrictions, such as excluding coverage if the antique is accidentally scratched or broken.

Here are six tips that may help you better protect your valuable antiques and collectibles:

1. Make an inventory of all your antiques and otherwise valuable collectibles. Take pictures and videos of each item, making sure to capture the item from all angles.

2. Ensure that your antiques and collectibles are appropriately stored and adequately secured.

3. For items of a lesser value, a general value assessment can be obtained for free online if you have a good photo and description for the antique or fine art dealer. For extensive or high-value collections, you certainly need to consider contacting an experienced antique appraiser. Most appraisers will need to inspect high-value pieces in person. The appraisal should include the replacement value, auction value, a description, and any comments the appraiser has about the item. Of course, this will most often involve a fee-for-service. Make sure the appraisal is done as per the requirements and codes of the American Appraisers Association -and- American Society of Appraisers.

4. Common, less valuable objects can usually be valuated online with the use of internet auction sites like eBay. This can give you a good market value for an item. Make sure you note both the asking and closing price of the item, but remember that the closing price will give you the best idea of the true value of the item.

5. Schedule an appointment with your insurance agent to determine if your existing coverage adequately covers and protects your antiques and collectibles, and, if not, what coverages you may need. Be sure to bring your inventory, photos and videos, and appraisals to the appointment.

6. Ask your insurance agent about a personal inland marine policy or endorsement, which can be added to your existing homeowner’s insurance policy to schedule your items on an agreed value based on the item’s appraisal. Although the above may also contain an exclusion for breakage, the exclusion can usually be eliminated for an extra cost.

Following a damaging fire, thunderstorm, hurricane, tornado, ice storm, or other disaster, one of your first concerns will be the structural damage your home has suffered and how to repair and restore it back to its original condition. In most cases, your homeowner’s insurance policy will pay for the labor and materials to repair your home and for you to temporarily live somewhere else while your home is uninhabitable.

But, what about the mess that the disaster has left behind? You may have anything from destroyed furniture and appliances to soaking wet insulation and lumber that must be cleaned up and disposed of somehow. Of course, this certainly isn’t an expense or a task that a homeowner wants to be worried with after a disaster. The good news is that your insurance policy may also pay for the expensive cleanup and disposal process.

A typical insurance policy will cover a reasonable expense for you to remove the debris from your property, but the damage must be caused by one of the causes of loss that your insurance policy insurers against. For example, let’s say your insurance policy covers fire and a fire has damaged your master bedroom, closet, and entry hallway. In the process, your clothes and bedroom furniture were also destroyed by a combination of fire, smoke, and water. Since your insurance policy covers fire, it will also pay for all your belongings and building materials destroyed by the fire to be removed from your property. On the other hand, do keep in mind that most typical insurance policies don’t cover losses caused by earthquakes. Depending on your insurer, this coverage may be added for an additional premium.

The cost of debris removal is included in the insurance amount covering your home, but if the amount of home damage and debris removal exceeds what your policy will pay, most policies will usually provide an additional amount for you to remove the debris.

A typical policy will also cover the cost to remove fallen trees on your property. The amount is usually up to $1,000 for multiple fallen trees and up to $500 for a single fallen tree. However, the coverage only applies with certain circumstances. Removal of fallen trees owned by you, the policyholder, are usually covered if they fell as a result of a windstorm; the weight of snow, sleet, or ice; or a hail storm. Removal of a neighbor’s tree that has fallen on your property is usually covered if it fell from fire; wind and hailstorms; vandalism; the weight of snow, sleet, or ice; and such. The fallen tree must have damaged a structure that is already covered by your policy, such as your home, fence, garage, or porch, for the coverage to pay for the removal. There are a few limited exceptions to this rule, such as if the fallen tree is blocking the driveway to the home or a handicapped person’s accesses to the residence. Otherwise, a fallen tree on your property will be your financial responsibility to remove.

Keep in mind that homeowner’s insurance policies can vary from insurer to insurer. Be sure to review your policy carefully to make certain you have the extent and amount of coverage you need. Don’t forget to confirm that you have enough insurance to cover both repairs and removal. If any of the provisions in your policy aren’t perfectly clear to you, then you should ask your insurance agent to thoroughly explain it. If your agent can’t explain your policy to your understanding, then it might be time to look elsewhere for coverage.

The extensive and costly damage caused by California wildfires over the last couple of years should serve as a reminder on why it’s vital to both know how you should proceed after finding yourself victim to a large-scale fire, and fully understand your fire insurance coverage before you need to call upon it.

Once the immediate danger of a fire is over, you will need to assess the situation and the resulting ramifications. If you find that the disaster has created large-scale destruction, then just the number of people impacted and the vastness of the destruction itself will most likely impact the cost and tempo of your rebuild. For example, available building materials will be depleted quickly and additional materials will be in high demand. Likewise, contractors will be available in limited numbers and be in high demand. The result – premium prices for supplies and contractors.

Given the above circumstances, it’s necessary for you to insist your insurance adjuster and contractor work together and reach an agreed price for your reconstruction. You might ask both parties to meet with you simultaneously at your home during the cost estimate of the reconstruction.

In addition to knowing how to proceed after a disaster, you also need to fully understand your insurance coverage. Do you know how much of the damage your insurance would cover?

If you opted to insure your home for 100% of its estimated replacement cost when you purchased your policy, then it should pay the cost to rebuild up to that estimated replacement cost. You can add at least an additional 25% if you opted for an extended replacement cost endorsement in your policy. Furthermore, a supplemental building ordinance endorsement in your policy will cover between 10% and 100% of the cost to bring your home up to code if there have been any new or changed construction codes since it was first constructed.

You will need to make an inventory of your home’s contents that were destroyed in the fire to receive compensation from your insurer. To make the settlement process go quickly and smoothly, make sure to provide the description; total cost of replacement, including sales tax; life expectancy; and age of each item. Don’t forget to verify the replacement cost by including the retailer’s name and phone number and salesperson’s name -or- the web addresses for any prices you obtained online. The average percentage of depreciation can be figured by dividing the age of the item by its average life expectancy. You will be paid the withheld depreciation difference on your destroyed items when you replace them with comparables if your policy only covers replacement value.

Additional living expenses, such as rent or a comparable furnished living area, may also be paid under your policy. Of course, this will be minus those expenses, such as mortgage payments and utilities, not directly resulting from your home having been destroyed. Coverage is usually a maximum of 20% of your home’s insurance limit and will generally continue for 12 months or less. Even if your home isn’t damaged, your living expenses may still be covered if your home is uninhabitable by government order. This coverage will end when the government allows you to return to your home.

The right coverage can ease some of the trauma a fire disaster causes to your life. However, you must know what you have and how it works to determine if you have the right insurance coverage in place to met your needs.

It can be hard to hear your kids call your beloved television show reruns, choice of music, hairstyle, and/or clothes old school, but you’ll have to remember that you probably didn’t exactly jive with your parent’s choices either. While Elvis’s Rubbernecking may forever play in your head and never become dated in your eyes, you should realize that your driving techniques may be one dated area truly in need of an update. The advances made to automotive technology and in safety research have likely made most of what you learned as a new driver not only dated, but dangerous.

Here are six tips to bring your driving skills up-to-date and avoid jeopardizing your safety, as well as those around you.

1. Seat position – airbags have made seat positioning an important safety issue for drivers and passengers. When airbags were first placed in vehicles, they caused some serious injuries to drivers seated too close during a deployment. Even modern de-powered airbags can deploy at 150 mph and cause serious injuries if the driver isn’t seated at a safe distance. Position your seat 10-12 inches from the steering wheel.

2. Hand position – you probably learned to keep your hands palm-side down at 10 o’clock and 12 o’clock as you grip the steering wheel. Today, it’s recommended that your left hand be at 8 o’clock and your right hand be at 4 o’clock to help prevent your arms from tiring during prolonged driving. It’s also recommended to place your thumbs atop the steering wheel and wrap your fingers underneath the wheel.

3. Wheel turns – you probably learned the hand-over-hand method of turning the steering wheel. It’s now recommended to use a push-pull-slide method where one hand pushes the wheel up as the other hand pulls it down. Neither forearm will cross the steering wheel hub, and neither hand will leave the steering wheel. The upward pushing hand continues to push as it slides back to it’s original positioning. Meanwhile, the other hand is sliding back as it continues to pull. The driving technique is aimed at reducing the risk of hitting yourself in the face if your airbag were to deploy.

4. Normal breaking – it’s been discovered that you have the greatest control over breaking when you keep your heel on the floorboard and normally break with the toes. Ensure that you judge stopping distances accurately in order to use the same degree of braking pressure from the time you first break until the vehicle actually comes to a complete stop.

5. Breaking on slick surfaces – leave the transmission in drive and remove your foot from the accelerator if you’re breaking on a slick surface area. The drag of engine compression will help the vehicle to slow down quicker.

6. Emergency breaking – anti-lock breaking systems, or ABS, mean that you no longer need to pump the breaks. During emergency breaking, just maintain a firm, steady pressure on the brake pedal. Remember to steer in the direction you need the vehicle to go.