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Teen Driver Safety and Having a Teen Driver Contract

Do You Have A Teen Driver Contract With Your Teen Driver?

I am Nancy Nicklow and I want to talk about teen drivers.

This is something near and dear to my heart as a lot of you know, I have a licensed 19 year old daughter and a 16 year old son who recently got his driving permit.

Teen Driver Safety COntract, Huff Insurance, Psadena Maryland

Teen driver safety is something that I I’m constantly thinking and worrying about.

One thing that I would like to discuss with you today is that you should have a signed contract with your teen driver prior to them driving.

I have done this with both of my children. We have set down the rules the regulations about using the vehicle we’ve talked about things, such as::

  • Monitoring the number of passengers that are in the vehicle because the more passengers that in the vehicle the more likely they are to be distracted.
  • No cell phone use while they’re driving and where they’re going to place their cell phones so that it’s not out in the open while they’re driving. So that they’re not tempted to look at it if they hear a beep or they see a notification pop up.
  • We’ve talked about what happens if they’re involved in an accident. What things do they need to know as well as what’s going to be the repercussions from mom and dad and the insurance company if they were to have an accident.
  • I’ve also talked about speeding tickets or violations and what are going to be the consequences of those kind of things from the auto insurance company aspect as well as the mom and dad aspect.

So both of my kids have signed a contract outlining what they’re allowed to do and what they’re not allowed to do prior to them getting their driver’s licenses.

So there should not be any surprises about what’s going to happen if they do have an accident or they do get a ticket.

We’ve talked about it up front we have outlined the procedures the expectations that mom and dad have, such as:

  • No cell phone use
  • Limit to two passengers in the vehicle, once they’re allowed by MVA to carry passengers
  • Monitoring their speed
  • Making sure that they use a seat belt that all their passengers use a seat belt
  • No drinking and driving we’ve talked about not riding with someone else who has been drinking. We agreed to pick them with no questions asked if they find themselves in a position of not being able to get home safely with a sober driver.

These are all important discussions that you need to have with your teen driver.

If you’d like a copy of the teen driver contract, please reach out to me at 410-647-1111

Or if you just have questions about what it takes to have a teen driver on your insurance policy, myself and my staff are here to help you at any time.

Why Do I Need Wedding Insurance?

What are some benefits of wedding insurance?

Do you have a wedding planned?  If so, now is the time to obtain wedding insurance.

Wedding Insurance, Huff Insurnace, Pasadena Marylnad

I know you are thinking, “What? My wedding is not for four, six, seven, eight or more months from now. Why do I need the wedding insurance policy now?”

Well one of the benefits of wedding insurance is not only does it provide general liability and liquor liability coverage for your event, it also covers the rehearsal dinner and potentially cover the breakfast or the brunch the day after the wedding.

And one of the most important coverage’s that wedding insurance provides is lost deposit coverage.

When planning a wedding, there are several deposits that you will have to make for vendors in order to secure those vendors for your special day. Some types of deposits are:

  • Venue
  • Caterer
  • Dress
  • Photographer
  • Entertainment

Why is lost deposit coverage important?

Well, recently there was a local bridal store that closed their doors without warning.

Many brides had paid thousands of dollars for their wedding dresses and had them at the bridal boutique for alterations and the store closed and locked their doors.

Can you imagine being a month or two out from your wedding and having something like this happen? Will you have the money to buy a new dress in a short time period?

What happens if you have your deposit down on your banquet hall and they have a fire a month before your wedding date, goes out of business and will not be able to host your wedding?

You’ll need to secure a new facility and probably have to get it done quickly. So where will you get the money to secure the new facility?

Well, the proper wedding insurance purchased at the appropriate time period, would step up and provide the right coverage to get your deposit money back in your hands to secure that new facility.

So this is the reason to not wait until the day of the wedding or the day before the wedding to get the wedding insurance policy in effect.

Get the wedding policy in effect early, so that it can pick up the risk of all of these lost deposits.

A good wedding insurance plan will also provide protection from unforeseen circumstances of a wedding, such as:

  • Your guests have food poisoning
  • You’re sued because of someone left your reception after having too much to drink and caused an automobile accident
  • The policy provides coverage in case there’s damage to the venue that you are renting
  • Wedding Insurance will usually give you some coverage for your gifts and your wedding rings (check your specific policy for coverage and included causes of loss)

Wedding insurance an excellent policy to have just to make sure that this most magical day in your whole entire life goes without a hitch.

Congratulations on your upcoming wedding!

We’d love to help you with your wedding insurance as well as work with you and your new spouse to your personal policies together.

Check out our page on Insurance For And After Your Big Day for some tips on what to do with your insurance after your are married.

We wish you the most joyous of days and a happy life together

How Much Renters Insurance Do You Need?

How Much Renter’s Insurance do I need?

I have been providing insurance coverage for several years now and I have heard numerous times from customers that they don’t need renters insurance.

The top two reasons that are given are:

  1. I don’t have that much “stuff” to need renters insurance
  2. My stuff is not worth that much because everything was given to me

Well, first, I would say that I doubt that EVERYTHING was really given to them. Renters Insurance, Huff Insurance, Pasadena Maryland

Even it the items were given to you once, will your family and friends are willing to do it again for you?  And do you want to ask them?

And second I would venture that most people have more “stuff” than they realize.

When you think about all of the contents that you have we never realize how much we have. That is because we did not go out and buy it all at one time.

Think about everything in your apartment or house.

Not only do you need to consider the bed that was donated to you, but the mattress and the comforter, pillows and the bed throw. You will be amazed how much money is tied up just in the place that you rest your head.

The renter’s insurance policy is usually written with replacement cost coverage, meaning that the company will replace the items in your apartment with new items that are similar in kind and quality.

Do you want to tell grand mom that you did not want to spend $10 more dollars a month to have the right coverage that you need her to give you another bedroom suite?

What are the odds that grand mom has another bedroom suite to even give you again? It is most likely not going to happen. She might have had one but very unlikely she could give you 2 of them.

Determining the value of your contents

Determining the value of the contents in your home or apartment will take some work on your part.  But it important to make sure the amount of coverage on your renters insurance is adequate.

You need to not only consider the things you can see walking in and out of each room, but also the things that you can’t see that are hidden in cabinets or closets.

We don’t go out and buy all of our clothes at one time, but if you know you usually pay about $50 for each pair of pants and you have 10 pairs, well there is $500.

If you have 10 pairs of shoes at $30 each there is another $300.

If you have 20 undergarments at $10 each there is another $200.

You can see how easily the money adds up.

In your living room, you need to look at the number of video games you have. The console alone can be $1000. Say you have 30 games at $50 each there is another $1500.

We have not even started talking about the furniture and we are already up to $5000.

That cell phone in your pocket could be up to $1000.

How Much Coverage Is Right?

People ask us to just give them the minimum amount of renter’s insurance coverage.

The minimum is a starting point and not what is appropriate for most situations.

Things, such as:

  • Where you purchase your clothes from, Nordstrom, Macy’s, JC Penny or Walmart?
  • How many rooms are in your apartment or home?
  • What are your hobbies or interests? If you love skiing or snowboarding or playing the guitar, or are you a big electronic buff, those items have to be considered as well.
  • Where do you purchase your furniture from, IKEA, or is that bedroom suite from Granny Broyhill, or Ethan Allen?

There is no one size fits all when it comes to the amount of contents coverage that is appropriate for your renter’s insurance.

This is another time that you need to consult your agent to help give you some guidance to help walk you through all of the things to consider.

And, yes, you need to include all of those items that were donated to your apartment in determining the cost to replace them all if there would be a claim.

When getting your next renter’s insurance policy, don’t ask what is the minimum coverage I can get?  Instead ask; Can you help me determine the right coverage for my needs?

Will A General Liability Insurance Policy Cover An Employee Getting Hurt On The Job?

Does my general liability insurance policy cover me for worker’s compensation?

Commonly I hear from business owners that they thought that their general liability (GL) insurance coverage provides protection for their employees for workman’s compensation. Hurt On Job, Workers Comp Insurance

This is a common misconception.  A general liability insurance policy and a worker’s compensation insurance policy will always be separate policies.

In order to protect your business you will need to have both policies if you have an employee or employees.

At first I could not understand why customers would assume that their liability coverage is providing coverage for worker’s compensation.

But I thought about it and realized that most general liability policies are based on payroll.  So therefore business owners might assume that the policy is covering the employees if they are injured on the job.

This is not the case. General liability insurance provides protection if your business causes property damage or injury to others. The GL policy provides protection if the injury or damage is caused by employees of the business.

Liability insurance premiums are based on payroll.  So a business that has $100,000 in payroll pays less in insurance premium then a business that has $1,000,000 in payroll.

Generally speaking, the business that has more payroll is doing more jobs, therefore there is a greater chance of an injury or property damage.

Worker’s compensation insurance coverage is a policy designed to cover the employees if they are injured while working on the job.

In Maryland, if you have at least one employee, then you are required to provide them with this benefit.

If an employee is injured on the job and you are not providing worker’s compensation benefits then you are responsible to pay their medical bills for the injuries and their loss time.  And you will also be subject to a fine from the State of Maryland, which could be quite substantial.

Worker’s compensation insurance premiums are composed based on the amount of payroll and the type of work the employee is completing.

Therefore, a clerical employee will cost less for workers compensation then a roofing employee.

So, remember even though your GL insurance policy might be based on payroll, that does not mean that they policy is providing coverage if the employee is injured on the job.

You will need a separate worker’s compensation policy for this coverage.

Understanding your insurance coverage is very important for business owners.  So you need a professional insurance agent to help guide you through the process. Not only are general liability and worker’s compensation important for your business, but there are other coverages such as:

You work too hard for your business to have it suffer financially because you did not have the proper insurance protection.

Why can’t you get comp and collision insurance coverage on a salvaged vehicle?

Can you get comprehensive and collision coverage on a vehicle that had a salvaged title?

We were recently asked by a customer why they could not have comprehensive and collision coverage on a vehicle that had a salvaged title. Insurance on a Savaged Vehicle

Well a salvaged title means that the vehicle has already been totaled by an auto insurance company and that someone bought it back for the scrap or the salvage value.

After a vehicle is deemed to be a total loss by an auto insurance company, they give the insured the option to purchase the car back from them for the “salvage value”. This is the amount of money the insurance company would receive from a salvage yard for the vehicle if they take title of the car.

When this happens, most states require that the title of the vehicle that has been involved in a total loss must be marked as a “salvaged title”.

This lets a potential buyer of the vehicle know that the car was involved in a total loss. This process is a very important for consumer protection as we have seen cases after major storm events, like Hurricanes Harvey and Irma as well as Superstorm Sandy a few years back, where folks tried to repair the flooded vehicles and try to sell them as regular used cars.

Now back to the question, why can you not get physical damage coverage on the salvaged vehicle?

Since the vehicle has once been totaled the insurance carriers are usually not willing to offer physical damage coverage again on that vehicle.

One reason is that the insurance companies do not want to be trying to determine what was repaired, what was not repaired, what the vehicle was prior to the loss before the salvage or after the salvage and the repairs were made.

Another reason, believe it or not, is that would open the door to insurance fraud. People have purchased damaged vehicles, insured them, and then try to collect insurance money for the damages that were already on the vehicle. So, by not offering physical damage coverage on the salvaged vehicles, the companies do reduce their risk for insurance fraud.

So unfortunately, if you buy a vehicle with a salvaged title you will most likely not be able to obtain comprehensive or collision coverage for that vehicle on your auto insurance policy.

This is something to keep in mind when you are purchasing vehicles just so that you know that what you’re going to be limited to is just going to be liability coverage.

If you have any additional questions about personal auto insurance coverage, please reach out to my team here at Huff Insurance. We want to earn your business.

Why Did My Car Insurance Premium Increase Because of an Accident if I Have Accident Forgiveness?

Auto insurance and accident forgiveness

Accident forgiveness is a relatively new feature of an auto insurance policy and a lot of companies are promoting the fact that they offer this feature. Accident Forgiveness on Auto Insurance, Huff Insurance, Pasadena Maryland

You’ve probably seen the commercials on television or heard them on the radio. If you read the fine print at the bottom of the screen, or listen to the fast talking disclosure at the end of the radio ad, you will hear that this feature is not free and they will charge a premium for adding this feature to your policy.

There are also other auto insurance companies that let you “earn” the first accident forgiveness if you remain with them for a number of years without an accident.

This can be a great feature, because an accident can cause your premiums to go up substantially when they are surcharged on your car insurance policy.

However there just a little known fact that I want to talk about.

And that is, sometimes even with having accident forgiveness, your auto insurance premiums may still increase if you have an accident.

I know what you are thinking: “Hold on, I thought the accident was forgiven so why is my premium going up?

Well the accident is forgiven with the aspect that you don’t experience the accident rating point surcharge.

But you still may lose discounts and credits on your auto insurance policy.

Some car insurance companies give a policy discount if a driver has gone 3, 5 or even 10 years without having an accident.

So, even though they’re not directly surcharging your policy the accident, some companies are still removing these loss free credits that you have earned over the years.

So we wanted to let you know that just because you have accident forgiveness, you may still see a premium change if you have an auto accident

If you have any questions you have about auto insurance, home insurance, or business insurance, please reach out to Huff Insurance and our team we would love to assist you in earning your business.

Do You Have To Turn In The Tags If You Have A Car That Does Not Run?

If my car is not running, do I have to keep the car insurance on it?

A good question came up to one of our team members the other day. It was:

“I have a car that does not run and is parked on my property. I have tags on it and expect to have it running in a few months. Do I need to keep the insurance on the car?”

Well, the short answer is that if you are keeping the tags on the vehicle, then the state required that you at least keep the state minimum liability auto liability insurance on that vehicle. Do You Need Insurance For a Truck Parked In Yard And Not Running?

Currently in Maryland, the minimum car insurance limits are $30,000/$60,000/$15,000. To see what these limits mean, see our blog titled – Auto Insurance Limits, What Do The Numbers Mean?

The next question was:

“Why do I have to turn my tags in before I take it off of my auto insurance policy?”

The real answer to this is that you do not HAVE to turn the tags in to take the car off of your car insurance policy.

BUT, if you keep the tags and proceed to take remove the car from the insurance policy, then there will be consequences in the form of fines from the MVA.

If you have a registered vehicle in the state of Maryland and fail to maintain the minimum required liability insurance, the fines, per vehicle, are as follows:

  • $150 for the first 30 days without insurance coverage
  • $7 for each additional day that the vehicle is not insured

So, as you can see, these fines can be very substantial.

So you may be thinking: “If I just take the vehicle off of my policy, how is the MVA even going to know that there is no insurance on the vehicle?

Well, the insurance companies are required to report to the MVA each time insurance is removed from a vehicle.

Therefore, if you do keep the tags and request that the vehicle be removed from the policy, the insurance company will have to notify the MVA that the insurance has been removed.

Once the MVA received notice that the insurance for the vehicle with active tags has been removed from your auto insurance, they will send you a proof of insurance request, called an FR19.

Then your agent or insurance company will have to verify the date in which the insurance terminated on the vehicle, and the fines will start accruing until either you turn in the tags or add the vehicle back to your insurance policy.

Check out our blog titled What is an FR19 and why does the MVA need it?

So if you find yourself in the situation where you have a vehicle that is not running, but expect to have it up and running at some point, you need to analyze a the situation before coming to the decision to remove the tags and insurance on the vehicle.

Should you have any question on this topic or any other insurance topic, please feel free to give us a call at 410-647-1111

Trampoline and homeowners insurance

Will a trampoline affect your homeowners insurance?

Will My Homeowners Insurance Increase if I have a trampoline?

Are you thinking about getting a trampoline for your yard?

Trampoline in Yard

Before you buy that trampoline, here are some things to do and think about in regards to  how it will affect your homeowners insurance policy.

The statistics show that having a trampoline increases the likelihood that someone will be injured on your property.  Therefore, it increases your chances of having a liability or medical payments claim by your homeowners insurance company.

But, because you have a trampoline does that mean that your homeowners insurance will cost more?  Well, it depends.   Different insurance companies look at trampolines differently.  Before, you purchase a trampoline, talk with your insurance professional to determine how your insurance company will respond to this increase in risk.

Each  insurance company may look at trampolines differently, for example:

  • No Restrictions: An insurance company may not care and there might not be any restrictions or difference in cost if you have or do not have a trampoline.
  • Netting: An insurance company may require that it be netted in order to be eligible for coverage.
  • Surcharge:  A company may surcharge the policy for having a trampoline – a charge of  $25-50 a year depending on the insurance company.
  • Ineligible for coverage:  A company may not allow you to own a trampoline, whether it is netted or not.   They will usually cancel or non renew the homeowners insurance policy as soon as they know that the trampoline is on the property.
  • Exclusion: A company may have a trampoline liability exclusion on the policy.  Meaning that if there is a claim involving a trampoline there is no liability coverage.

These are great reasons why it is important to read your homeowners insurance policy carefully and not to assume that all policies are the same.

A trampoline is considered an attractive nuisance by the insurance companies, similar to having a pool or a playground.  These types of items are very attractive to kids in the neighborhood to want to come visit your home.  The more kids or people on your property, the greater the likelihood that someone could be injured on the property. This increase in risk is what could result in higher home insurance premiums.

When it comes to trampolines, broken bones are the most common injuries.  But head injuries and concussions  are not uncommon.   Generally trampolines are used by children, so if they have a life altering injury, the longer duration that the insurance company will have to provide benefits.

If you do have a trampoline it is important that you discuss safety with your family in it’s use. The following safety precautions will help reduce the chance of someone getting injured on your trampoline

  • Having a net on the trampoline will reduce the risk of someone being bounced off onto the ground.
  • Limiting the number of people on the trampoline at one time.  Generally the most serious injuries occur when there are multiple people on the device and one falls on top of the other or they bump heads while jumping up and down.
  • Having adult supervision during the use of the trampoline.
  • Having a fence around your yard with a locking gate will help prevent the neighborhood  kids from using the trampoline when you are not home.

If you are considering a trampoline then you need to review your homeowner’s insurance policy with your insurance agent.  This is to be sure that do not have an exclusion and that the insurance company will continue to provide coverage and that there is no increase in premium.

In addition, you want to review the current limit of liability coverage.  You’ll want to talk with your agent about the addition of a personal umbrella insurance policy.  This is to increase your liability insurance coverage should there be an injury on your property.

Using a trampoline is fun and great exercise.  But you need to understand that it does increase your risk of a liability claim.  So you need to be sure that you have the appropriate insurance coverage in place.  Give us a call at 410-647-1111 to make sure you have the right coverage.

Blog by Nancy Nicklow of Huff InsuranceNancy Nicklow is the owner and President of Huff Insurance, 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 at 410-647-1111

 

 

If a tree falls on my pier, will my insurance cover it?

Is a pier covered on your homeowners insurance policy?

Quick Answer:  It Depends….

A tree on the shore falls over and lands on your pier and causes several thousand dollars to repair. Is there coverage under your homeowner’s insurance policy? This exact scenario happened to a client of ours a few years ago. The tree was over 30 feet high and came crashing down on the 1/3 of the pier that was closest to the shore, including the steps and railings. Pier at Sunset

Was it covered?

Well, there is a general misconception out there that piers and boat houses are not covered because they are over water. However, there is nothing in the standard special form homeowner’s insurance policy that makes any distinction on the other structures coverage. Other structures are automatically covered under a homeowner’s policy for up to 20% of the Coverage A (Building Value) of your home. These other structures could be anything from a fence, to a shed, a pool, or a pier, for example.

The thing to keep in mind when you have structures that are near the water that only the perils insured by the policy will cover the other structures as well. Flood is excluded on almost all home insurance policies, so if flood caused damage to the pier it would not be covered. But, if a tree falls on the pier it would be covered because a falling object is a covered peril. The policy would also cover the cost to remove the tree off of the pier as well.

What other damage might your pier have that would be covered? Well, you could have a fire on the pier or there could be theft or vandalism to the pier. In addition, lightning could hit the pier or a boat or automobile hit the pier and cause damage. These types of perils would be covered.

If you have a pier or several other structures on your policy then please give us a call. The 20% of automatic coverage can be increased to accommodate your specific situation. Talk to the professionals here at Huff Insurance to make sure that your policy has been customized to meet your needs. Also, even though the National Flood Insurance Program does not cover flood damage to piers or bulkheads or pools, give us a call to discuss the need for flood insurance for your home.

Can living with roommates affect your insurance coverage?

Can Significant others cause significant insurance risk?

Are you or someone you know living with non relative roommates? If so, have you, or they, talked to an insurance agent to see what affect it will have on your homeowners insurance or renters insurance?

The types of roommates that could cause gaps in coverage include (but not limited to):

  • Boyfriend
  • Girlfriend
  • Friend
  • Fiance’
  • etc.

The issue arises on the homeowners or renters insurance policy because they are not considered an “insured” under the definition of the policy.

Insured as defined in the policy includes:

  • You (and your spouse if they are a resident of the same household)
  • Resident relatives
  • Other persons under the age of 21 in the care of an insured

So, if your roommate does not fit the definition of an insured under the policy, it creates some gaps in insurance coverage for them. These gaps include (but not limited to):

  1. Their personal property is limited to $500 of coverage under your policy
  2. They have NO personal liability coverage under your insurance policy

This is an issue because a roommate most likely has more than $500 worth of “stuff” in your shared residence. This includes their clothing, computers, electronics, furniture, dishes, etc. It also causes an issue for any items in which you both “chipped in” for. Say you have $1500 flat screen on the wall that you each paid 50% of the cost. If the TV is destroyed by a covered loss, then the insurance company is only obligated to pay for your portion of TV.

Not having the personal liability is a big deal as well. If your roommate is out playing golf and hits a wicked slice that strikes and injures another golfer, your liability insurance from the renters or home insurance policy will not cover your roommate.

Now think of this scenario. You are living with your fiance’, saving and planning for the perfect wedding. Then something happens and your fiance is sued for $300,000 only to find out that they are not covered on your homeowners insurance policy. How would that affect your wedding plans? I think it would be devastating and a 10 minute talks with your trusted insurance advisor could have given you the peace of mind that a situation like this would not cause such angst.

So, as your life changes, you need to stay in contact with your insurance agent so you do not find out about a gap in coverage after it is too late. See our Real Life Situations research center page.

If you or anyone you know is living with roommates or significant others, please let them know that it would be a great idea to talk to someone about their insurance coverage. We are always here to talk if you want to reach out to us. 410-647-1111 or info@huffinsurance.com