Category: Property

Most Americans are surprised to learn that, nationally, approximately 1 in 6 drivers on the road are uninsured. This information comes from a recent study by the Insurance Research Council. The study further shows that in some states, as many as one in three drivers are uninsured or underinsured, and that there is a solid correlation between unemployment and lack of insurance. Furthermore, statistics show that nearly one out of every two accidents involves an uninsured or inadequately insured driver.

How Can You Protect Yourself from the Costs of an Uninsured Motorist?

You should ensure that your auto insurance policy includes both uninsured motorist (UM) and underinsured motorist (UIM) coverage. As a rule, the limits on these policies should be as high as your policy’s property damage and bodily injury limits.

When someone without insurance causes an accident that involves your car, or if your car was damaged by a hit-and-run driver, UM coverage would pay for the resulting claims. On the other hand, UIM insurance provides coverage when someone else causes an accident, but does not have enough insurance to adequately cover all of your costs.

You also need to consider how much your life would change, if you were hit by an irresponsible driver. How would you make your car and mortgage payments, and pay your other expenses if you were permanently injured? UM and UIM coverages bear the cost of lost wages if you are unable to work after an injury. If you do not have these coverages and are hit by an uninsured motorist, the only other option is to pursue the driver in small claims or civil court. This often proves to be a difficult and expensive option. Thus, the benefits of this coverage can be substantial compared to the relatively low expense.

What Should You Do if You Are Hit by an Uninsured or Underinsured Motorist?

If the driver has insurance, copy down the other driver’s insurance and contact information. Whether they have a policy or not, get the driver’s name, address, and phone number. Furthermore, you should always write down the license plate number and call the police, even if the accident appears to be minor. A police report is always valuable in determining who was at fault.

According to The National Highway Transportation Safety Administration, there are more than six million U.S. motor vehicle crashes per year reported in the United States. Most of us don’t like to think about what if, especially when it comes to vehicle accidents. However, the odds say that you’ll most likely find yourself involved in a vehicle accident at some point in your life. Do you know how to handle a vehicle accident?

There will be an initial shock. Once you’ve realized what has happened and checked yourself for injury, you should attempt to exit your vehicle. You might need to use a window if your door has been damaged. As you find your way out of the vehicle, make sure to pay attention to the oncoming traffic and stay clear of it.

If your vehicle is still drivable, then move it to a public location. From there, you’ll be able to safely exit the vehicle and report the accident. Moving the vehicle is usually a good idea if there’s an immediate danger like being hit again on a busy interstate. Do keep in mind that some states require you to stay on the scene.

You should dial 911 to report the accident. The dispatcher will automatically know your location if you’re calling from a land-line. You’ll need to know your location when using a cellular phone since it’s a more difficult and lengthy process for an emergency dispatcher to determine your location through a cellular phone.

In the event that your vehicle ends up in water, staying calm is a must. You won’t be able to open the door due to the pressure from the water if the vehicle submerges. Calmly take a deep breath and roll down the window to escape. If the electric windows won’t work, then you should break the window by hitting it with an object or kicking it.

As far as insurance goes, most insurance carriers recommend the following universal steps be taken following an accident:

* Take note of how many passengers are in each of the other vehicles involved in the accident, as this will help prevent the future addition of passengers during insurance scams.

* Collect the full name, insurance information, and home address of all other drivers involved in the accident. You should also provide your information to the other driver(s).

* Write a brief summary of the accident, recording as many details as possible – the make, model and year of the vehicles involved; the time of accident; and weather conditions.

* Collect the names and contact information of any witnesses, especially if you feel something or someone other than yourself caused the accident.

* While it’s okay to express concern over what happened at the scene, you should never admit that the accident was your fault or claim liability.

* Have your insurance information, driver’s license, and vehicle registration available for the police. Once the police are on scene, the officer will collect your information. The officer will ask all the drivers what happened and record the account(s).

* Make sure that you ask the officer for the police report so that you can give it to your insurance carrier.

* You should contact your insurance agent or carrier as soon as possible. Most major insurance companies have a 24-hour phone number for claim reports.

Home is where the heart is, and for most homeowners, a large portion of your net worth resides there as well. We all know that insuring this valuable property is both necessary and expensive. In fact, homeowner’s insurance premiums can take a healthy bite out of a family’s monthly expenditures. Homeowners owe it to themselves to look at some approaches that could potentially lower monthly premiums.

Six Ideas to Reduce Premiums

• Take steps to make your home as disaster resistant as possible. For instance, consider adding stronger doors, storm shutters and reinforced roofing for added protection from hurricanes and other disasters. Many insurance companies will reduce premiums based on these upgrades.

• Ask your insurance agent if they offer homeowners discounts for new or recently renovated properties. Because a newer home usually results in fewer losses, some insurers reduce rates by up to 25 percent for homes that are less than five or ten years old. Likewise, homes that have had significant renovations completed by a qualified contractor can also qualify for reduced insurance premiums. In this case, your insurance company may require documentation of the renovations, and when they were completed.

• Improve the safety and security of your home. Items such as burglar alarms, deadbolt locks and smoke detectors can reduce your monthly premiums. Your insurance company might also offer a discount for installing a sophisticated home-security system.

• Maintain an outstanding credit rating. Many insurance companies utilize credit scores in determining homeowner’s premiums. Achieving and preserving a strong credit score can result in a monthly premium discount.

• Ask questions to determine if your home is over insured. Be aware that the value of your home, and the value of your land are separate. If your home is severely damaged and needs to be rebuilt, the reconstruction costs should be based on the replacement value of your home, and not on the value of your land.

• Consider the possibility that other discounts may apply. Insurance companies offer a variety of options such as: long term customer discounts, senior citizen discounts, loss-free discounts, or multiple policy discounts.

Your home is your castle, and there are many steps you can take to protect this valuable asset in the most efficient manner possible. Speak with your agent to see if these or other discounts apply.

Most people wouldn’t overlook a 300-pound football linebacker or a 400-pound boulder coming their way. For some reason, a garage door, which is also typically 300 to 400 pounds, opening and closing usually isn’t given a second thought. While this object may seem benign, it’s often the heaviest moving feature of your home and should be a safety concern area.

The majority of garage door-related injuries involve pets and young children that are oblivious to the potential dangers presented by such a heavy moving object. Children can easily get an extremity caught between the ground and the bottom of the garage door as it descends to a close. To avoid such a catastrophe, garage door owners should pay attention to three areas – educating children, safety precautions, and maintenance.

Garage door owners should make sure young children are clear of the garage door before it closes. Children should be taught never to run under a moving garage door and to never play near it, even when it’s not in motion. Children should be taught the emergency response, including how to reach an adult and call for emergency assistance, should an accident occur. Older children should be taught how to correctly operate the garage door and use its’ emergency release.

Garage door owners should also make sure that they are taking the appropriate safety precautions to avoid a garage door accident. Make sure to position the operating push buttons five feet or higher from the floor when it’s installed, as this will help prevent small children from playing with the buttons or inadvertently pushing it. Garage doors manufactured since 1993 have been subject to a federal law requiring all garage door openers to contain an automatic reversing mechanism that will immediately reverse the closing if the garage door comes into contact with anything as it’s closing. You might consider upgrading your garage door if it was manufactured prior to this law. You can check your garage door by placing an unbreakable item, such as a piece of wood, under it to determine if it reverses as it comes into contact with the item. Do try to perform this test away from the watchful eyes of children that might think of it as a new game to play.

Garage doors should be regularly inspected for any problem areas that could create a malfunction – worn or warped tracks, rollers, cables, pulleys, and springs. Worn springs are a particularly dangerous problem since they could dislodge and go through the air to strike someone with great force. This is not a DIY area; always consult a professional for maintenance.

With the right education and use, preventative measures, and maintenance, a garage door can be a convenience and a protective feature of your home, not a disaster waiting to happen.

Few drivers consider themselves bad drivers. In fact, most people would probably give themselves an A+ on their driving skills. While some may indeed be excellent drivers, there wouldn’t be over 6 million vehicle accidents each year in the United States if everyone was an excellent driver.

Even though what other drivers do can’t be controlled and there will never be a way to completely eliminate the risk of being in a vehicle accident, you can practice safe driving to reduce your liklihood of being in a vehicle accident. It’s up to each and every driver to do their part to make the roadways a safer place for themselves and other drivers. You can do this by first remembering the basics you were taught on safe driving – both hands on the wheel, signaling before turning, and so forth. Here are ten more safety tips to remember:

1. Get rid of distractions like food, newspapers, books, makeup, and phones. Only change CDs or the radio station when stationary.

2. Properly maintain your vehicle on a regular basis, including tires and all fluids. Refer to your owner’s manual or accompanying maintenance log book for the recommended maintenance schedule for your vehicle.

3. Routinely inspect your brake and signal lights. If one is non-operational, then replace the bulb or have it repaired immediately.

4. Enroll in a defensive driving class.

5. Practice defensive, but not aggressive, driving. When an aggressive driver is encountered, simply ignore them and either allow them to move away from you or move away from them yourself. If extremely aggressive, then you can report the driver to the local authorities.

6. Keep a safe following distance; have at least one car length between you and the vehicle in front of you for each ten mph on your speedometer.

7. Since many unintentional and intentional insurance scam vehicle accidents occur at intersections, you should depart from intersections with extreme caution. Even after the light turns green, try to count to three before accelerating.

8. Be especially vigilant during poor road conditions, such as those caused by weather or construction work.

Make sure your headlights are on not just at dusk and dark, but also during hazardous weather conditions like fog and rain.

9. Set your mirrors and seat positions according to your view, not your passengers. Remember to check that they haven’t been moved from your settings before hitting the road, since making such adjustments while driving takes your eyes off the road and distracts you.

10. Never drive while intoxicated.

Having a reliable backup generator can be invaluable during a power outage. From powering a refrigerator, the lights, or heating or cooling during an emergency power outage, an emergency generator can be a real asset and provide many of the essentials that your family would otherwise be without during an outage. That said, generators shouldn’t be used haphazardly. If safety regulations aren’t followed, a generator can become more of a danger than an asset.

Determine what size generator you’ll need. The size of a generator will be based on the items you’d like to power during a power outage. For example, those in colder climates will want to power the furnace to keep the home warm and help prevent pipes from freezing and breaking. A well pump, refrigerator, freezer, and electrical in-home medical equipment should also be considerations. Keep in mind that the generator’s size and cost will increase with the more you need the generator to support.

Once you’ve figured out what size generator you need, you will have two main types of generators to choose from – portable or permanent standby. Understanding the workings and what’s required for each can help you determine which type best suits your need.

Depending on the specific size, a portable generator will allow you to have television, radio, lights, furnace, water well, and refrigerator and freezer powered. Generators can range from 1000-watt to 10,000 watt, with the average home needing at least a 5,000-watt generator. You may switch out the appliances, such as by momentarily disconnecting the refrigerator to operate the microwave, but make sure not to overload the equipment. You’ll plug your desired appliances directly into the portable generator using several heavy-duty grounded extension cords. This type of generator doesn’t need to be installed professionally, but it’s of vital importance that users follow strict safety practices. Never operate the generator inside the home, garage, or otherwise confined space; it must be used in a thoroughly ventilated area. Make sure to keep gas-powered portable generators away from open flames.

On the other hand, a licensed professional electrician should be used to install a permanent standby generator since it’s connected to the home’s wiring system, the installation should meet local building codes, and must be installed with several key safety features. Special equipment must be installed to prevent the generator from backfeeding into the electrical system within the home. Backfeed can result in a fire or equipment damage. It must have a transfer switch installed so that power crews won’t be in danger from live electrical currents if they need to make repairs to lines. You’ll also need to notify the power company when you install a permanent standby generator.

A generator will only be an asset to help you safely and comfortably make it through a crisis when it’s used appropriately. Otherwise, it can create more problems than it solves.

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.

To make sure you have the right type, and right amount of homeowner’s insurance, you need to understand what it does, and doesn’t, cover. Regular homeowner’s insurance will cover damage from tornadoes, fires, and burglary; but it will not cover the calamity of hurricanes, floods, terrorism, or nuclear meltdowns.

Basic Principles

*Make sure to get enough coverage to re-build your home from bottom to top.

*Choose “replacement cost” instead of “actual cash value.”

*Regularly inventory your possessions and their replacement costs. Consider a special rider for valuables such as jewelry, furs, and family heirlooms.

*Understand “loss of use” provisions. These provisions will dictate how long your insurer will pay rent while your home is rebuilt or repaired.

Best Offerings

*Look at on-line quotes and shop around, in general. Do some research to make sure the company is financially sound.

*Consider the possibility of raising your deductible to keep rates low.

*Get discounts by purchasing homeowner’s and auto insurance from the same company.

*Consider an umbrella policy to protect against lawsuits.

*Ask if special discounts are available. Some companies offer discounts to longtime customers, seniors, and non-smokers.

*Monitor and maintain a good credit score

*Unless you plan to file a claim, don’t report damages.

What Isn’t Covered

*Home office equipment

* Damage from neglect and poor maintenance practices

*Losses caused by pests such as insects, rodents, and pets

*Sewer backups and mold

In Case of Disaster

*Get in touch with your insurance company as soon as possible.

*Begin checking for damage and take photos to document calamity. Make quick fixes and temporary repairs to mitigate further damage.

*Be cautious of repairmen charging exorbitant rates and con artists impersonating insurance adjusters.

*Read the fine print before signing anything! Be careful not to sign away future compensation upon receipt of the first check.

*If a settlement offer is clearly unfair, don’t accept it.

Learning a few simple principles in advance can save you a bundle, should disaster strike.  Speak with your insurance agent to gain a better understanding of your homeowner’s insurance needs. 

Driving distractions come in many shapes and sizes. Between phone calls, text messages, Internet, television screens, unruly children, and distractions on the road, it is a wonder we ever arrive safely from Point A to Point B.

In November of 2010, State Farm created an online survey to gain a better understanding of what distracts drivers from their most important task at hand – driving. The survey went to 912 drivers who reported that they drive at least an hour per week, own a smartphone, and have a valid driver’s license.

Of those surveyed, 19% admitted to Internet usage while driving. Here are the top five internet activities that driver’s engage in:

1) Searching for and reading driving directions

2) Reading E-mail

3) Looking for specific information of immediate interest, such as where to find a restaurant

4) Reading/Updating social networking sites such as Twitter and Facebook

5) Writing/sending an e-mail

When asked about when their internet usage occurs, drivers responded:

*When stopped at traffic lights

*During heavy traffic

*When driving alone

*During daylight hours only

*On long highway drives

The survey further reports that about 40% of the U.S. population currently owns a smartphone, and this statistic equates to many distracted drivers on the road at any given time. Studies show that the increasing use of smartphones, especially among young adults, increases the risk of crashes. And there is an ever-growing need to remind yourself and the ones you love to put the phone away while driving.

According to the American Red Cross, 80% of Americans don’t realize that home fires are the single most common disaster in our country.  In fact, each year fire kills more U.S. citizens than all other natural disasters combined. However, most people aren’t aware of this because house fires are “silent disasters,” seldom receiving the same publicity as floods, hurricanes and earthquakes.

Another little known fact is that very few fires are caused by natural events such as lightning or static electricity. The American Red Cross says that faulty appliances and faulty wiring cause the greatest number of house fires. The second most common source is heating devices such as kerosene heaters, wood stoves and fireplaces. These devices cause fires when furniture, boxes or clothing are placed too near to them, and the material overheats and bursts into flames. Although human error is often the catalyst for house fires, human preparedness can prevent them.

Here are some tips to keep your family and property safe:

* Purchase only quality household equipment that has been tested by Underwriters’ Laboratories (UL) or other appropriate testing facilities.

*Be certain that  household equipment is installed by a technician who has been trained how to properly install, and also knows the appropriate building code requirements for the installation.

*Have your electrical wiring and heating periodically checked to be sure they are in proper working condition.

*If an appliance is behaving erratically, don’t operate it.  Instead, call a qualified repairman to find the problem and correct it.

*Control the amount of combustible material in your home by removing cardboard boxes, newspapers, old mattresses, rags, leftover paint and other items that are no longer in use. In fact, you should periodically inspect the attic and the cellar to be sure that you aren’t storing any combustible materials that should be discarded.

*Check the type of wall finishes in your home to ensure they aren’t conducive to spreading a fire. Plaster and gypsum board retard fire growth. Plywood paneling made of compressed wood pulp, known as beaverboard, accelerates the spread of fire in dwellings.

*Place fire extinguishers so they are readily available in the event a fire starts. It is important to understand what type of fire extinguisher to use:

-Class A extinguishers can be used to put out fires in wood, rubber, cloth, and paper.

-Class B CO2 or foam-filled extinguishers can be used for fires in flammable liquids, greases and gases.

-Class C CO2 or foam-filled extinguishers can be used for fires in energized electrical equipment.

-Halon can be used on any type of fire.

*It is of utmost importance to put a smoke detector in every room.

*Schedule regular practice fire drills. Be sure children are completely familiar with the correct way to evacuate in the event of a fire.

*Don’t let your family be the victim of this “silent disaster.” Become familiar with these fire prevention tips and put them into practice.