What are the implication on the homeowners insurance for co buyers who are not married?

Is a previous blog, I discussed the impact to the renters insurance policy for unmarried roommates.  In this blog, I will go over the impact on a homeowners liability insurance policy for non-married co owners.

With the non married renters situation where we recommended that you each purchase your own renters insurance policy.  But when you buy a home together, you’ll have to get one homeowners insurance policy listing both of you as named insureds.   There is not an option for each of you to buy a separate homeowners policy.

But like the renters situation, there still can be an issue when it comes to the liability portion of the homeowners insurance policy.

Because you are not married, each of you can be sued separately for an incident that you are both liable for.

We are going to set up the following example based on a homeowners insurance policy with $300,000 in liability coverage.  $300,000 is a common figure we see on a lot of insurance policies that we look at in our office.  One thing to remember is this is a per incident limit.

Claim example:  You host a Super Bowl party and someone slips on a wet floor and ends up breaking their wrist and wrenching their back.  Their attorney files a lawsuit against each of you for $300,000.

Right away, you may be thinking that you are fine, since the limits on the policy are $300,000.  But upon closer inspection, you will notice that there is a potential of a $300,000 weakness in coverage. This is because the attorney is suing each of you for $300,000.  That means that there is a potential for a judgement of $600,000 in total damages to be awarded.

Now it can get sticky for you in the following situation.  You and your co owner end up using separate attorneys.  You co owner’s attorney sees this policy weakness and quickly settles their lawsuit for the $200,000.

So how does this homeowners liability insurance settlement affect you?

Looking at the policy, this only leaves $100,000 in liability for the incident to cover your portion of the lawsuit.  So, if your attorney cannot settle for the $100,000 left in the liability insurance for the incident, you will be left holding the bag for the difference.  Which means your personal assets and even future wages will can be at risk.

So how do you protect yourself from this homeowners insurance coverage weakness?

We have a couple of ideas and ways that you can mitigate this risk.

1. Increase the homeowners insurance liability limit to $500,000 and purchase one umbrella insurance policy for the owners.
2. Increase the homeowners insurance liability limit to $500,000 and purchase a separate umbrella insurance policy for each owner.
3. Buy the home in one name with the homeowners liability insurance limit of $500,000 for the owner and then have the other occupants buy their own renters insurance policies. And owner and roommates buy their own umbrella insurance policies.

Scenario number 1:  Increase the homeowners liability insurance limit to $500,000 and purchase one umbrella insurance policy for the owners.

In this scenario, we are essentially adding more liability insurance coverage for the owners to share.  For example, if the home insurance liability limit was increased to $500,000 and then an umbrella insurance policy is purchased for $1,000,000, there would be $1,500,000 in liability limits to be shared by each of the owners.

There is still a chance that one of the owners could exhaust the limits of the policy in this scenario.  But with the higher limits, the probability of that chance is reduced.  We would advise to increase the umbrella limits to $2,000,000 or higher in this situation.

Scenario number 2: Increase the homeowners liability insurance limit to $500,000 and purchase a separate umbrella insurance policy for each owner.

In this situation, the primary homeowners liability insurance limit would be shared between the owners.  Keep in mind, this is not an equal sharing per my example above.

Then each owner would purchase their own umbrella insurance policy at least $1,000,000.  These limits would not be shared with the other owners.  They would be just for the owner who is the named insured on their own umbrella insurance policy.

This would provide more protection for the individual owners as they each would have their own limits under the umbrella policy.

Scenario number 3: Buy the home in one name with the homeowners insurance limit of $500,000 for the owner and then have the other occupants buy their own renters insurance policies.  And owner and roommates buy their own umbrella insurance policies.

In this scenario, there would be no shared liability insurance limits.  The owner would have their home insurance liability limit of $500,000 plus their own umbrella liability limit of at least $1,000,000.

Each roommate would also have their own renter’s liability insurance limit of $500,000. In addition, they have their own umbrella liability limit of at least $1,000,000.

So in this last scenario, each occupant of the house would have the most coverage for themselves.

We understand that it is not always possible for someone to qualify for a home loan on their own.  So we know there are many cases these days where un-married people are buying houses together in order to qualify.

The point of my blog was to point out the different ways in which you all could secure insurance coverage to provide the best homeowners liability insurance protection for you and your situation.

Huff Insurance is a Maryland Trusted Choice Independent Insurance Agency.  We love, respect, and protect our clients and our community.  We have been doing so since 1960.

If you have any questions on this blog, feel free to give us a call at 410-647-1111.

Let us know if there are any other topics that you want us to go over that we have not addressed on our website or blog.

When was the last time you went in the basement to check for water damage?

In recent years, we have had more rain than in the past in Maryland.   And with the increase in rain we have seen the increase in water damage in basements.

So again, when was the last time you went in the basement to check for signs of water damage?

One of my colleagues, has her laundry in the basement, so she says that she is there daily.  But, others that have laundry on the upper levels and tend to avoid the basement.

Basements can be scary, dark places that make us uncomfortable to be in, especially when we are home alone.    It is important that you are regularly checking your basement.

My daughter’s college apartment was an old 1910 farm home with a partial basement and looks like the scariest thing on earth.  However, I still make the 3 girls check the basement on a regular basis.  (They all go together of course, because it is scary….. I have to admit, their basement is scary)

Water damage is the number one cause of all homeowner’s insurance claims.

Water can get into your basement from various sources, such as:

• Broken pipe
• Toilet over flowing
• Sump pump backing up
• Water seeping in under the doors or windows or through the walls.

Depending on the cause of the water, it will depend on whether your homeowner’s policy will cover the basement water damage or not.

However, when moisture and water sits for an extended period of time mold occurs.  Most homeowner’s policy have either a mold exclusion or a limited amount of coverage for mold.

When an adjuster comes out and sees mold, they know that the water has been there, and they then question if the claim, meets the definition of an insured loss.  To be insurable the claim must be sudden and accidental.   Water that has been seeping or leaking for a long period of time may then be excluded.

We have had clients tell us that they just noticed the water damage, but they had not been in the basement for 3-6 months prior to that.   This is very alarming.

There is a lot of the mechanicals for the home that are usually in the basement.   Those mechanicals could have issues and you may not be aware of them if you are not in the basement.

On a weekly basis you should visit all of the rooms in your home, whether it is the basement, or the upstairs spare bedroom that is only used once a year, around the holidays.

This way if there are issues, you can spot them quickly and they can be fixed or handled before they become huge issues.

In addition, to visiting all of the rooms of your home, you should also do a walk around on the outside of the home to look check out the following;

• Gutters to be sure that they are clean
• The drain at the bottom of the basement steps are clear
• Check for trees rubbing against the home.

Taking s few moments per week to be proactive about your home could save you thousands of dollars in basement water damage later.

Even if the claim is covered by home insurance, you still have to pay your deductible, which most of the time is $1,000 if not higher. And you still have to deal with the inconvenience of the claim.  Meeting with the adjuster, getting the contractor out to make the repairs.

Save yourself the frustration of the claim and just go into the basement and do a walk around looking for signs of moisture or water.

If you have any questions on protecting your home against water damage or if you have the right insurance to cover water damage, please reach out o us at 410-647-1111.

Huff Insurance is a full service Independent Insurance Agent. We have been dedicated to Protecting Lifestyles™ since 1960.  We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance products.  Call us today at 410-647-1111

Driving while drowsy, or drowsy driving, is becoming a major issue on our roadways.

How prevalent is drowsy driving?

Well, according to a study conducted by the National Sleep Foundation, about 50% of all adult drivers in the US admit to regularly driving while feeling drowsy.  Of those, 20% actually admitted falling asleep at the wheel at least once in the past year.  And a staggering 40% stating that they have fell asleep while driving at some point in their driving history!

These numbers are very scary to hear.  I know we have 50,000 cars that go by our office every day, and it makes me wonder how many of them are driving drowsy or worse, asleep at the wheel.

The effects of driving while drowsy can be equated to driving under the influence of alcohol.

• Reaction times, awareness and attention spans all get worse as you become drowsier.
• Studies show that going more than 20 hours with no sleep is equivalent of driving with a blood alcohol content of .08%, which is the legal limit for driving under the influence.
• The odds of getting into a car crash while fatigued increases three fold.

You may not even know that you are fatigued when you get behind the wheel.  That is because the signs of fatigue are very hard to identify.  If you lose focus or even fall into what is called a micro sleep (a short involuntary period of inattention) for just 3-5 seconds at highway speeds, you would travel the length of a football field.  A lot of bad things can happen in the 100 yards of inattentiveness.

Here are some sunning statistics regarding accidents involving drowsy driving.

According to the National Highway Traffic Safety Administration

• 100,000 police reported accidents involved driving drowsy
• 71,000 injuries resulted from these accidents
• 1,550 fatalities resulted from these accidents
• $109 billion annually for bodily injury and death costs were (not including property damage costs)

According to an AAA Foundation for Traffic Safety study, the numbers are triple of the above

• 328,000 accidents involve drowsy driving
• 109,000 injuries resulted from these accidents
• 6,400 fatalities resulted from these accidents

Not sure if you are too tired to drive?

Here are some signs of drowsy driving from the American Academy of Sleep Medicine

• Frequent yawning or difficulty keeping your eyes open
• “Nodding off” or having trouble keeping your head up
• Inability to remember driving the last few miles
• Missing road signs or turns
• Difficulty maintaining your speed
• Drifting out of your lane

One last startling statistic.  50% or more of all drowsy driving accidents are caused by drivers under the age of 25.  So remember, just because you are young, it does not make you invincible to your body needing proper rest.

Driving while drowsy can be prevented with proper rest.  If you do not have your proper rest, find someone to drive for you.  This can be a friend, family member, an Uber or Lyft driver, or public transportation.

Do what you can to not become part of these drowsy driving statistics.

Between drowsy drivers, drunk drivers, uninsured drivers, reckless driver, distracted drivers, etc., there are all kind of dangers on the road.

So you need to do what you can to protect yourself with the right insurance protection plan.  Make sure you have the right auto insurance and umbrella insurance in place before you hit the roadways.

We can help.  Simply fill out the quote form below or call us at 410-647-1111 for a comprehensive review of your insurance plan.

The cost of one little Parking Lot Accident

Navigating the True Costs of Parking Lot Accidents

Parking lot accidents are a common yet overlooked aspect of driving that can have surprisingly costly consequences. Despite their low-speed nature, these incidents often result in significant financial, emotional, and insurance-related repercussions for involved parties.

The Financial Impact: Beyond the Surface

At first glance, a parking lot accident may seem inconsequential. However, the reality is far different. Modern vehicles, adorned with cutting-edge technology, have transformed minor bumps into major expenses. For instance, repairing or replacing sensors, cameras, and plastic parts can quickly escalate costs, with some incidents leading to repair bills in excess of $4,500. This figure starkly highlights the financial burden these accidents can impose, underscoring the need for awareness and caution.

The Role of Technology in Repair Costs

Technological enhancements in vehicles, while improving safety and driving experience, have paradoxically increased the costs associated with parking lot accidents. The integration of advanced driver-assistance systems (ADAS), bumper sensors, and cameras has made even minor collisions a costly affair. Consequently, what used to be a simple fender bender now involves complex repairs and replacements, amplifying the financial impact on drivers.

Insurance Dynamics: A Double-Edged Sword

Parking lot accidents don’t just affect immediate repair costs; they also influence long-term insurance premiums. Many drivers are unaware that even minor incidents can lead to increased rates, as insurers adjust premiums based on the frequency and severity of claims. Understanding the specifics of your auto insurance coverage, particularly regarding deductibles and coverage limits for such incidents, is crucial in managing potential costs effectively.

Psychological and Emotional Considerations

Beyond the tangible costs, parking lot accidents can also have a psychological toll on drivers. The stress of dealing with insurance claims, repair shops, and potential increases in premiums can be overwhelming. Additionally, there’s often a sense of embarrassment or frustration associated with these incidents, despite their common occurrence. Recognizing and addressing these emotional aspects is important for drivers navigating the aftermath of a parking lot accident.

Proactive Prevention and Awareness

While it’s impossible to eliminate the risk of parking lot accidents entirely, drivers can significantly reduce their likelihood through vigilant driving practices and the use of available technology. Parking in less congested areas, utilizing parking sensors and rearview cameras, and maintaining a safe driving distance in parking lots can all contribute to a decrease in incidents. Furthermore, educating oneself on the specifics of one’s auto insurance policy can provide clarity and peace of mind in the event of an accident.

Conclusion: A Comprehensive Approach to Parking Lot Safety

Parking lot accidents, though often considered minor, carry a range of financial, emotional, and insurance-related implications for drivers. By adopting a proactive approach to prevention, staying informed about insurance coverage, and recognizing the broader impacts of these incidents, drivers can better navigate the complexities of parking lot accidents. Awareness and preparedness are key in mitigating the unforeseen costs and stresses associated with these all-too-common occurrences.

Insurance agents do have auto accidents.

I know…. Hard to believe.    You would think we would know better.  And cost of this low impact parking lot accident really took me by surprise.

My husband, Jerry Nicklow, had parked behind me at work— just three feet behind my car (just like in the photo).   I saw his car behind me, got in my car, starting talking to the kids and backed up right into his (brand new) car.

By the way, my back up sensor that was supposed to alert me to a car behind me….. Never went off until after I hit his car.

In three feet, I could not have been going more than 5 miles an hour, It was a low impact accident.

Twenty years ago, there would have been a few scratches, maybe a dent or two. They would have buffed it out and all would be right with the world.   The accident would have cost less than $500 for both vehicles to be repaired.

Well, fast forward to 2019, where this is no longer the case.

With all the cameras, and sensors and safety equipment in the vehicles, even a low impact parking lot accident can cause thousands of dollars in auto repair bills.

Vehicles are now made with plastic clips and if those clips break then the entire unit has to be replaced.

I have a Jeep Cherokee and my husband has a Dodge Charger.  (His baby and it’s still less than a year old)

My Jeep looked twice as bad from the outside, I had a quarter panel pop out, a tail light popped out, and a dent in the bumper.

The damage to Jerry’s Charger did not look that bad at first glance.  It a dent on the hood and a dent on the bumper.

There was some minor scratches on both of the vehicles, but nothing that you would not notice unless right up on the cars.

We took the cars to the body shop to have the repairs done.  The Jeep was over $2,200 in repairs and the Dodge was a little over $2,400.

Evidently, when they took the bumper off the Dodge, one of the plastic clips that holds the headlight kit in place was broke.  Just to replace the headlight is over $1000.

Let that soak in…..$1000 to replace a headlight.

So this 5 mile an hour has now costs us over $4,500 between the 2 vehicles.

Luckily, I did not break the backup camera in the Jeep or that would have been another $3,000 to replace that.

As an insurance agent I am asked every day:  Why are auto insurance rates increasing?

Well as vehicles are made safer, there are more parts that we have to replace if there is an accident.

And with vehicles made more of plastic then metal, there is less buffing and popping out dents and more replacing the entire bumper or quarter panel.

There is no $50 parts on a car these days. Even if you break a light it is hundreds of dollars to replace.  Tail lights are now LED and they need to have the entire piece replaced not just the bulb or the cover.

I never would have imagined that this small parking lot accident would have been so costly.

In some ways it scares me, what would it have cost if it would have been a 20, 40 or 60 mile an hour collision?

At this point I am grateful that no one was hurt and that my Jerry has his baby back and the Charger is as good as new.

I Guess, he will not park behind me anytime soon.  The photo was staged to use in the blog, believe me, he does not actually park there any more…..

Enhanced Uninsured Motorist Insurance Coverage (Enhanced UM Insurance)

In 2018, a law went into effect in Maryland, which could change the way your car insurance works.  This law requires auto insurance companies to offer a new form of uninsured motorist coverage called “enhanced uninsured motorist insurance.”

This additional offering will come into play for insurance policies dated July 1, 2018, and after.  You may have noticed a notification with your policy renewal.

Uninsured motorist insurance coverage in Maryland is designed to pay for the damage to your vehicle and injuries to you and other passengers of your vehicle for the following reasons:

• The negligent party did not have any auto insurance
• The negligent party had limits lower than your uninsured motorist limits

The way the unininsured/underinsured motorist insurance worked prior to the law change was as follows:

Say you are involved in a car accident and the other party is found to be at fault for the accident.

What happens is that you could collect the limits from their policy.  So let’s say that they had the Maryland state minimum auto insurance limits of $30,000 per person and your injuries were $100,000.

The way it typically worked is as follows:  you would collect the $30,000 from their policy first.  Then you could collect the difference from your policy ($100,000-$30,000=$70,000)  under the uninsured motorist insurance coverage.

If the negligent party carried the same limits as you, for example you both have $100,000, the maximum you were able to collect is $100,000 from their policy.  Since the limits were the same as yours, you would not be able to collect any money from your auto insurance policy.

So if you suffered damages of more than $100,000, you would have to file a lawsuit against the negligent party on your own.

This scenario changes with the enhanced uninsured motorist insurance coverage option

In the example above, you would be eligible to collect $100,000 from the negligent party’s insurance carrier and then have up to $100,000 in coverage from your policy.

Therefore, you could be eligible to receive up to $200,000 instead of the  $100,000 in the above example.

With enhanced uninsured motorist insurance, you can stack your limits of coverage on top of the negligent party’s coverage.  Which may be none, worse or better than yours.

Of course, the amount that you would be eligible for would be determined by the extent of the injuries.

Enhanced Uninsured Motorist coverage is not automatic.   You must request it in writing by signing an updated Uninsured Motorist election form.

If you do not elect the enhanced coverage you will be left with the regular uninsured motorist that was previously the only option available.

Insurance carriers are not consistent with the cost for this additional protection.  So reach out to the insurance professionals at Huff Insurance at 410-647-1111 to discuss the options that your carrier allows.

In addition, if you have an umbrella policy, some carriers are allowing for uninsured motorist coverage to be added to that policy as well.

Give us a call to discuss the best option for you and your family.

Remember, uninsured motorist is protecting you and your family.  You would be surprised to know how many drivers are driving either with no insurance or state minimum insurance.

Here is are some more resources on the subject of uninsured motorist insurance:

Electric Scooter Insurance:

Where is the insurance coverage when you are riding an electric scooter?

Electric scooter rentals and electric bike rentals seem to be really popular in the cities these days.  Do you know what liability hazard they pose? Do you know if you have liability insurance while operating the electric scooter or bike?

I was on a business trip to Cincinnati and was amazed by all of the electronic scooters being rented and used around town.   They are touted as an easy way to travel around and see the city.

All of my friends are looking at these scooters and thinking this is cool.  But the insurance agent in me is thinking: where is the liability insurance coverage?

That’s the curse of being an insurance agent.  I see new technology and instead of embracing it, I wonder how to insure it.

Why do you need liability insurance coverage?

Liability insurance coverage is what protects you if you cause bodily injury or property damage to someone else through the use of these electronic devices.

Imagine not stopping in time and running into the side of a car.

Or running over a person on the side walk and causing them injuries.

Where do you think there would be insurance coverage?

Many times, people assume that these electronic devices are a type of vehicle therefore the coverage is on their auto insurance policy.

That assumption would be incorrect as there is no coverage there unless they are specifically scheduled on your car insurance policy.

Then I hear, it must be covered under my homeowner’s insurance policy.

Motorized vehicles are excluded from the homeowner’s insurance policy unless they are used to assist for a handicap.  So an electronic wheelchair would be covered by the homeowners policy.  But a Segway, electric scooter,  or a electric bicycle may not be covered. (Check with your policy and carrier for specifics regarding coverage)

What are you to do if you have an electronic bicycle, scooter, skateboard or a Segway?

• First – do not assume that you automatically have insurance coverage on one of the above mentioned policies.
• Second – contact the your insurance agent or one of our qualified insurance agents at Huff Insurance to discuss the electronic device.  We will talk about who is operating it and the purpose of operating it.  Whether for business, pleasure, or to assist with the handicap.  Then we can help advise you of the appropriate insurance coverage.

Can these devices be properly insured?

There are several carriers that offer specialty type electric scooter insurance for these types of devices.

The cost of these policies are relatively inexpensive and the benefits are huge if you are facing an lawsuit.

Not only can these specialty policies provide you with liability insurance, but they can also provide physical damage on the devices.

These policies can be as low as $50 a year.  This is a very small investment for the benefits it provides.

These electronic vehicles can be costly, upwards of a few thousand dollars.  You don’t want to find out that yours is stolen and there is no coverage.  Or worse you have caused injuries to someone and are being sued for hundreds of thousands of dollars for their medical bills and you have no insurance coverage.

Remember, even if these electronic devices are stolen from your home or damaged at the home there could no coverage for these vehicles under the homeowners insurance policy.

Electronic bikes, scooters and Segways have become very popular modes of  transportation especially for those living in cities.

As the world changes so do your insurance needs.   Make sure that you are speaking with your agent if you have or if you are considering purchasing one of these electronic devices.

Do not be caught without the appropriate insurance coverage if there is a claim.

As always, coverage varies by company and by state.  It is always best to check with your individual insurance agent or company to see if you have appropriate coverage before buying or renting one of these electric devices.

July is UV safety awareness month

Did you know that it only takes 15 minutes for the sun’s UV rays to cause damage to your skin?

As an annoying little insurance lizard constantly tells us on TV, 15 minutes is not a lot of time (and definitely not enough time to properly obtain insurance coverage).  And yet I bet there are millions of people who do not take the time to protect their skin when they are going to be out in the sun for that short of a time period.  And I can count myself in with this group.

As I have gotten older, I have begun to pay more attention to UV safety and protecting myself from the sun’s damaging UV rays.

We all can remember growing up, with our sisters and cousins laying out to get a sun tan using baby oil to speed up the tanning process.

We were young and it seemed like a great idea at the time.  But not so much now that we are all grown up.

The Center for Disease Control (CDC) puts out the following recommendations to help protect yourself and your family from the sun:

Shade:

Finding shade from a tree, umbrella, building, or other shelter can provide valuable relief from the sun.  Although it is still recommended that you protect your skin by using sun screen or with protective clothing when you are outside – even when you are in the shade.

Clothing:

Wearing long-sleeved shirts, long pants, long skirts etc. can provide protection from the sun’s ultra violet rays.  Many brands of clothing now come with a UV rating, which lets you know how protective they can be from the sun’s rays.  In general, darker clothing provides more protection that lighter clothing.  Dry Clothing protects more that wet clothing.  And a tightly woven fabric provides the best protection.

If the long sleeves or pants are not possible, please take the necessary steps to protect your exposed skin.

Hat:

The best hat to wear for sun protection is one that has a brim all the way around.  The brim will provide shade for your face, ears and neck areas.  So now can see, the cowboy hat has a practical use to the farmers and ranchers that are out on the range all day working in the sun.

Avoid straw hats or ones with holes that allow the rays to get through.

Sunglasses:

When thinking of sun protection, please do not forget about your eyes.  Sunglasses provide protection for your eyes from UV rays, which reduces the risk of cataracts as you get older.  They also protect the sensitive skin around your eyes as well.  Most sunglasses sold in the US meet the standard to block both UVA and UVB rays.

Sunscreen:

We all know that there are hundreds of options for sunscreen in the stores these days.

The CDC recommends using a broad spectrum sunscreen with at least an SPF rating of 15 before you step outside, even on cloudy or cool days. I personally do not use anything less than SPF30 and usually use SPF50.

Don’t forget to cover all exposed skin.  If you can’t reach a part of your body, ask for help.  If you can’t get help with the sunscreen, then find a way to cover that area with clothing.

Sunscreen does wear off over time, so re application during the day is important to maintain the proper protection.  The recommendation is to re-apply after two hours, especially if you are sweating, swimming or having to towel off.

Make sure your sun screen is not expired.  Sunscreen usually has a shelf life of about 3 years.  Sometimes less if exposed to higher temperatures, like left in a car…

Make sure you protect your lips as well.  Some cosmetics, like lipstick or chapstick, can provide protection.  But again, make sure it is at least SPF 15 and you will have to re-apply to your lips more often, so keep them handy as you are outside.

Summary:

In closing, I really love being outdoors, as do many millions of other folks.  But we all have to remember to take a few minutes each time we go outside to make sure we are protecting ourselves from the sun’s UV rays.

Those sun’s rays make our world beautiful, but they can also cause major damage to our skin if we do not use the proper precautions.

Go out and enjoy your summer.  Have fun, stay safe, and protect your skin!

For more information from the CDC about sun protection, you can visit their site at https://www.cdc.gov/cancer/skin/basic_info/sun-safety.htm

Huff Insurance is a full service independent insurance agency.  And just like these tips can protect you from the sun, our staff is here to protect you against financial disaster.

Give us a call at 410-647-1111 to talk about any of your personal insurance or business insurance needs.

 

PBA Shop Local Festival 2019

And the Winner of the $50 gift card to Two Rivers Fish and Steak House is…… (check out the video)

We want to congratulate our winner, Leah Cluney, for being the winner of our drawing at the 2019 Pasadena Business Association Shop Local Festival.  The festival was held at Lake Shore Plaza in Pasadena on Saturday, June 8, 2019.

Saturday was a gorgeous day in Pasadena.  It was a perfect day for our local businesses to gather to show our appreciation for our great community.

There were about 30 local businesses that set up in the Lake Shore Plaza parking lot for a great 5 hour Shop Local event.  We had a putting hole set up for the kids to have some fun at our booth and fun was had by all at the event.

We were fortunate to have our whole team participate at some point during the event, and they had a blast.  At the bottom of this post you will see videos of them dancing along with the great music played by DJ Marcus at the event.

Why Shop Local?

Larry Sells made a very compelling speech when it comes to shopping local. A lot of local organizations, such as Boys Scouts, Girls Scouts, Schools, Youth Sports Leagues, etc. are always reaching out to local businesses for support and sponsorships.   So when the members of these organizations shop, they need to keep in mind and try the local businesses that are supporting them.  Because if they do not, they will find that the local businesses that they have reached out for support in the past, will no longer be around to support them.

And do you think the big box stores, online retailers, or cartoon animal mascot insurance companies are going to support small local community organizations?  I don’t think they will offer any support at this level.

So when you are spending your money, spend it with companies that support your community.  Because if you don’t, those great, community supporting small businesses will become more scarce and raising money for your organizations will become more difficult.

For example, Lauer’s Supermarket has given over a MILLION DOLLARS back to our local schools and organizations.  Huff Insurance has given over $200,000 in the past 10 years back to our community.

And I am sure there are countless other local businesses that have given back plenty to our community.

 

 

Water Claims and Water Mitigation

Water Is The Most Frequent Cause of Homeowners Insurance Claims

The number one non-storm related claim that causes damage to your home is not fire,  it is water. So water damage mitigation device usage is becoming more common with many renters and home owners.

Fire may cause more severe damage but water is by far the most frequent type of claim to your home.

Your home has water on all levels of and in may different fashions.

Your home has pipes that go to the bathrooms and toilets that can over flow, but there are wash machines and dishwashers that can leak as well hot water heaters that can bust and sump pumps that can overflow.

There are numerous operations in your home that all can cause you water damage

The average non storm related water damage claim is about $10,000.   That is expensive.

So what are homeowners insurance companies doing to help their customers with water damage mitigation?

More insurance companies are offering discounts for water mitigation devices.  Some insurance companies are giving the devices away, free to clients.  Some companies are offering discounted cost for the device.  And other companies are simply giving a discount on the homeowners insurance policy.

There are insurance carriers that are not offering any discounts for these devices.  But in the next 10 years they will be few and far between.

Even if your home insurance carrier does not give you an incentive to install the devices, it will still give you peace of mind and help you mitigate a loss.  This can still save you money by helping you avoid paying a deductible.  The home insurance deductibles are usually between $1000 and $2500 per claim filed.

When you are reviewing the water mitigation devices, you should consider the following features of the device.

• Is it passive or active
• Is it whole house or point of loss
• Is it installed in the home or outside
• Is it a DIY (Do It Yourself) or professionally installed

All of these points can impact the cost of the device.  But also the ability of the device to reduce the amount f a claim or avoid a claim altogether

Let’s consider if it is a passive or active device for water damage mitigation.

A passive device just alerts you but does nothing to turn off the water.  So let’s say you are out of town and a pipe breaks.  You would get a notification that the water is running, but until you get someone physically turns off the water, the damage will continue to occur.

Although this might be an hour of damage versus 3 days till you would have returned from out of town, you did not avoid the claim, but just reduced the severity .

Now, lets assume that you have an active alarm and in the similar situation.  Not only would you be alerted but the alarm will automatically turn off the water in a few moments, hopefully avoiding any claim all together.

In reviewing the point of loss versus the whole home products.

Point of loss are generally censors that are placed around the home at points that are likely to be affected by water.  If the sensor gets wet you are alerted.

Some great areas to place a point of loss sensor would be:

• Near sump pumps
• By water heaters
• Under sinks
• Near dishwashers
• Under basement windows
• Etc.

The problem with point of loss sensors is that you cannot cover every spot in your  home where water damage could occur.

For example,  what if the sensor is located near a sump pump, but a pipe in a wall on the second floor breaks due to wear and tear? The middle of a bedroom wall is not a place where you would have thought to place a point of loss sensor.  So you will not notice the damage until the water breaches a wall or a ceiling on the first floor.

These sensors are great, but if there are not at the point where the water actually is leaking, they will not be effective as a water damage mitigation device.

A whole house sensor would monitor the water usage in the home and alert you in the water usage is not typical for your family.

So imagine your dishwasher is leaking in the middle of the night.  In this case, the whole house device would be able to sense the water flow and alert you quickly.  This can result in a drastic improvement in water damage mitigation and much less water damage to your home

Interior or Exterior Installation

Most of the devices now days are designed to be in the home but there are a few products that are weatherized and able to be inside or outside the home.

Since there are instances such as the hose bib or the water irrigation system that could break and cause damage to the home, having a weatherized system is preferred.

DIY or Professionally Installed

Is this a device that you as the homeowner can install or will it need to be professionally installed by a licensed plumber.

The active the systems will need to be installed by a licensed plumber, as they will involve pipe cutting for device installation.  This will be an additional cost that should be considered in your decision making process.

Summary

Water claims are the most frequent cause of loss for homeowners insurance policies.  Therefore, it is well with the investment into these types of products for water damage mitigation.  You just need to decide what is the best use of your money.

Contact Huff insurance to discuss your insurance options and if you have installed a water mitigation device make sure that we know so that we can take advantage of all of the discounts you qualify for to help reduce your homeowners cost.