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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.

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

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.

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 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

Why does the MVA need an FR19 from me?

You go about your day and head home from a productive day at work. When you get home you get your mail and as you are going through it, you notice that there is a letter from the Maryland Motor Vehicle Administration (MVA). They are requesting an FR19.

You think to yourself, “what could this be?” So you open it up and notice that they are requesting an FR19.

What is an FR19? An FR19 is a form that the Maryland MVA requests in order to verify that your vehicle in which you have tags for does have the required automobile insurance.

It sounds simple enough, but believe me, the letter they send looks a bit demanding and threatening in nature and tone. You will see big bold letters stating that you tags will be SUSPENDED if you do not comply by a certain date, usually only 15 days from the date that the letter was generated, and you will be fined by the state if you do not comply and prove you have car insurance.

So now you start to get a little upset, worried and may even start to get a little mad at your insurance agent and/or insurance company. You start thinking that they must have done something wrong if the MVA thinks that you do not have auto insurance for your vehicle. Why else would they have sent this threatening letter?

It is at this point that you can take a deep breath and relax. If you in fact had car insurance for the vehicle on the date that they are asking for the proof, then you have nothing to worry about. It will only take us a few minutes to go online with the MD MVA and enter the information to get the case closed.

The information that we will need in order to get it processed and closed is the following (and it all in the upper right side of the FR19 request):

• FR19 Case Number
• Insurance Verification Date
• Title Number or VIN for the vehicle that they need proof for (Title number is shorter and easier to convey with less chance of data entry error)

And after we get the information, it will only take a few minutes to process online and you can go about your day. It really is that simple if you in fact had insurance on the date in question.

Whay did you get an FR19 request?

Now you are thinking to yourself, “I had car insurance the whole time, so why did they send me this request for proof?”

This is a great question and there could be several reasons for getting the request from the MD MVA.

• Random Draw – Each year, the MVA will randomly send out requests to a selection of tagged vehicle owners and you just can be one of the lucky ones to get the letter.
• You switched insurance companies – If you change insurance companies (even if you stay with the same insurance agent), you could get an FR19 request. This happens because you are in essence canceling the auto insurance with your former company to move to the new company. When an auto policy cancels, the insurance company is required to report to the MVA that the policy has cancelled. They usually do this on a weekly basis. So if the MVA receives this notice and generates the FR19 before they get notice from the new company that the insurance is in place, you will get the letter.
• Your policy cancelled and was later reinstated without a lapse – Just like above, the company is required to notify the MVA of the cancellation and the FR19 can be generated before the MVA is notified that the policy has been reinstated.
• You changed vehicles on your auto insurance policy – If you replace vehicles, there is a chance that you could get an FR19 request for either the old vehicle, or the new vehicle. The odds increase if you are keeping the same tags of the new vehicle that you had on the old one. This is again because the insurance company has to report that the insurance on the old vehicle was cancelled.
• You asked your insurance company to remove the vehicle but did not turn the tags in for a couple of days. Since the tags were still “live” in the eyes f the MVA, you could be subject to a fine in this case. We recommend that you never cancel the auto insurance policy on a vehicle until you have physically turned in the tags and received a tag turn in receipt from the MVA or their representative. And keep the receipt as proof, should anything come up in the future.
• Your policy actually did cancel – In this case you will get the notice and then have to show when you had purchased a new auto insurance policy.

Now let’s talk about the last scenario where you policy actually cancelled and you did not have auto insurance on date that they are requesting? Say the policy cancelled and you did not obtain auto insurance for a few days afterwards, so there is a lapse in coverage.

What are the fines?

If this is the case, then you will have to let the MVA know of the situation and there will be a fine that you will have to ay or they will suspend your tags. The fines work like this (as of 7/1/2024):

• $250 for the first 30 days that there was no insurance on the vehicle
• $7 per day for each day beyond 30 days that the vehicle in question did not have insurance, for a maximum fine of $3,500.

So as you can see, the fines can add up quickly if you do not take car of securing the proper car insurance. And these fines are PER VEHICLE, so if they send a request for multiple vehicles, the fines can get high pretty fast.

So as you can see, there are several reasons that you may be receiving the FR19 request from the MVA. In most of the scenarios, there is really nothing to worry about and it can be taken care of in a matter of minutes.

So although the letter seems a bit harsh and bitter, there usually is nothing to worry about. They design the letter so it will not be ignored. But this sometimes also creates some angst and animosity towards towards your insurance agent or insurance company. But as you can see, there is no reason to worry, we can handle it for you quickly with the right information.

Below is a sample of an FR19 that Nancy and I received earlier this year. It was taken care of by our staff in less than 3 minutes.

So the next time you get one of these love letters from the MVA, sit back, relax, smile, and remember that we have you covered.

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 at 410-647-1111

What do all of the numbers on your auto insurance policy mean?

Today we’re going to go over those confusing limits on your automobile insurance policy. You know you bought a car you know that Maryland requires that you have auto liability insurance coverage but what really does that mean?

Do you know most people that I’ve run into really don’t understand their auto insurance coverage? That’s why you need to talk to a professional independent insurance agent like Huff Insurance.

So let me take a moment to explain your auto insurance limits.

Bodily Injury: The bodily injury limits will be listed as per person / per accident. The first limit that you see in the per person field is the maximum amount that your carrier will pay for damages and injuries that you caused with your motor vehicle to another person, okay. That is the maximum amount they’ll pay for any one person. The second per accident limit is the most that they’ll pay for everyone in the vehicle. And that is the total limit for bodily injury that they will pay.

So if you have state minimum limits here in Maryland of $30,000 per person $60,000 per accident it means the most that they’re going to pay for any one person is $30,000, and the most that they’re going to pay for everybody is $60,000. So if there’s five people involved still the most that they’re going to pay is a total of $60,000.

Property Damage: In Maryland the statement a mom is $15,000. So that means that the damage that you caused to someone else’s property. That could be a vehicle that could be that you ran into a house or business you hit a sign you hit multiple vehicles. The most that they’re going to pay for all of the property damage is $15,000. So you hit someone who has a brand new car that cost $50,000, you’re going to be left having to pay the rest of that coverage out of your pocket because you don’t have enough limits on your car insurance policy to handle the claim.

Combined Single Limit (CSL): Some policies will have a combined single limits for the bodily injury and property damage combined. So in this case, there is not per person sub limit and the company will pay up to the policy limits for all bodily injuries and property damage up to the policy limit.

Personal Injury Protection (PIP): Usually most people have $2,500 per person. PIP is a wonderful coverage it pays regardless of whose fault the accident is, for your medical bills your lost wages and also essential services. So for example you normally clean your house every week but because you were injured in the accident you cannot do that and you need to hire someone you can use your pip benefits to pay that claim.

Medical Payments: Medical payments would be to cover additional medical bills regardless of fault of the accident for yourself and other people under your policy up to a limit of either $1,000 to generally $5,000 or $10,000 depending on the insurance carrier.

Uninsured Motorist Coverage:. In Maryland that also covers underinsured motorist. So that means that if someone hits you and they have lower liability limits than yourself, then you could collect from your auto insurance policy under the uninsured underinsured motorist coverage for the difference. Also if someone hits you in a hit-and-run and they leave the scene or that the person who hit you doesn’t have any auto insurance then you would be able to collect under your own uninsured motorist coverage.

Then you’ll notice that you may have comprehensive and collision coverage on the policy.

Comprehensive Coverage: This is to cover the vehicle for things such as glass breakage, flood, collision with an animal, falling objects, etc.

Collision Coverage: This covers your vehicle if the accident is your fault and there’s damage done to your vehicle.

Towing Coverage: Towing is to provide coverage in the event that your vehicle becomes disabled. This coverage is usually on a reimbursement basis, meaning that you will have to pay the tow company and then seek reimbursement from your insurance company up to the limit of coverage.

Roadside Assistance: This is a little bit broader than towing coverage. Roadside assistance will cover other things, such a lock outs, tire changes, etc. You will call a number provided by your auto insurance company, and they will call the roadside assistance company to meet you at your car for the service.

Rental reimbursement coverage: This coverage comes into play if you have an at fault accident and you need to pay for a rental car while your vehicle is being fixed. They will pay up to the limit per day and the total maximum limit. So if your coverage is $30/$900, they will pay $30 per day for up to 30 days or $900 total. The company will pay for the reasonable time it takes to repair your car. If your car is deemed to be a total loss and the insurance company settles the claim with you, the rental coverage will stop at that time as well.

Please always consult your insurance agent here at Huff Insurance for additional information or clarification about your coverages.

If you’re not sure that your limits of protection are adequate, then please give us a call at 410-647-1111 and we’ll be happy to talk to you.

After the recent storms a video surfaced from the Atlanta area that has gone viral. One car was following another and had a dash cam recording. As the car was going down the road, a tree fell and it appeared as though the tree fell on the front of the hood as it came crashing to the ground. This looks evident because at it fell, the front end of the car was thrown up into the air.

First of all, thank god that it appeared that no one was seriously hurt in the incident. This appears because the driver stepped out of the car and looked to be OK.

Second of all, it sparked a debate on an online forum as to what coverage under the auto insurance policy would pay for the damage to the vehicle, comprehensive or collision?

If it happened as it appears to have, with the tree falling on the front end of the car, then most likely it would be covered under the comprehensive coverage on the car insurance policy, if the insured had elected and paid for this coverage. Comprehensive (Other Than Collision) coverage covers damage to your vehicle caused by falling objects. And the tree that is blown over in a storm and falls onto your vehicle would qualify as a falling object. Comprehensive coverage will also cover other things like fire, theft, vandalism, flood, contact with an animal, and glass breakage.

Then someone asked: Since the car was moving, wouldn’t collision coverage pay and not comprehensive? The answer is no. Damage caused by a falling object is covered by comprehensive coverage whether the car is moving or not moving. There is not a provision in the auto insurance policy which states that the car must be stationary for it to be comprehensive coverage. A falling object is a falling object.

Now let’s change the scenario by 30 seconds. What if the tree falls down in front of the car and then the car hits the tree after it has fallen to the ground? How would the auto insurance policy cover the damage in this scenario?

In this scenario the coverage on the auto insurance policy that would most likely come into play is the collision coverage, if the insured purchased the coverage prior to the accident.

You may be asking yourself: Why collision, it is still a tree that fell to the ground?

The answer falls into the details. Since the car made contact with the tree after it has fallen to the ground, it is no longer considered a falling object by definition. It is technically a fallen object at that point, so therefore the vehicle collided with the object in the roadway and most likely will be considered a collision.

Do You Have Question About Your Insurance?

So, do you have any questions that you would like to have answered about your insurance coverage? Have you seen anything on the news and wondered how the insurance would come into play? If so, please feel free to email your questions to info@huffinsurance.com and we will do our very best to get you the most accurate answer. We know insurance can be confusing, that is why we are here to help you.

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 at 410-647-1111

Does a homeowners insurance policy cover a house that you own and let family members live in?

So you have a home, titled in your name, and you let a family member live in the home, while you reside somewhere else. Should you have a homeowners insurance policy on this location?

The answer is no.

A homeowner’s insurance policy is written on a property where the titled owner of the property also resides in the property. If you as the owner do not reside there, then it should not be written on a homeowner’s policy.

What if, I come and visit with the grand kids there, or I reside there when I am in town a few weeks a year? Does that count? No it does not count as the premises that you reside, so again it should not be written as a homeowner’s policy.

How should it be insured?

It should be written as a dwelling fire insurance policy in the name of the titled owner, to insure the dwelling, out buildings, any contents that belong to the owner of the property and to provide liability insurance coverage.

The family member that resides in the home needs to obtain their own renters insurance policy.

Huh? You may be saying to yourself: “A renter’s insurance policy?  But they are not renting, I let them live there free of charge.”

Even if they are not paying rent, they are not the owner of the property, therefore, they should not be insured on a homeowner’s insurance policy and then need a renter’s insurance policy to cover their contents and their liability

We recently had a claim, where the mom and dad where living in the home, they moved out and left their son and his family in the home. They never notified us of this lifestyle change.  Then there was a fire loss. The insurance carrier went ahead and paid the damage to the dwelling. But they did not pay for the damaged contents that belonged to the son and his family.   This was because he was no longer an insured under the definition of the homeowners insurance policy.

When you and your children or family members reside in the same home, they are an insured under the definition in the policy. But the moment that the property owner moves out of the residence they are no longer an insured under the definition

Many times I will have parents tell me, but they do not pay rent. Whether or not money is exchanged has no bearing on the insurance policy.

Another way to get around this issue would be to add the relatives name to the deed of the property and then be sure to let your insurance agent know so that they could endorse the policy to include their name now as an owner. Changing ownership of a property is a huge deal and needs to be thought about with both your accountant and attorney because there could be estate issues, or issues if you decided to sell the property in the future.

This is just another example of how simple life changes, can greatly impact your insurance coverage.

When you change something in your life, be sure that you are talking with your Trusted Choice Insurance Agent to be sure that changes do not need to take place with your insurance coverage.

Again, remember a homeowner’s insurance policy should only be in place when you own and reside in the home. If you are not doing both then a homeowner’s policy is not the correct way for the property to be insured.

The Importance of Renters Insurance

If you live in a rental home or apartment, chances are you don’t have the proper insurance. Despite the fact that rented homes are more likely to be burglarized than owner-occupied properties, nearly 60 percent of renters don’t have a renters insurance policy.

Why does it matter?

“If you rent a house or apartment and think that your landlord is financially responsible when there is a fire, theft or other catastrophe—think again,” warns the Insurance Information Institute*. “Your landlord may have insurance to protect the building you are living in. But your landlord’s insurance policy won’t replace your personal possessions or pay for your living expenses while the building is being repaired. The only way to protect yourself financially against disasters is to buy a renters insurance policy.”

Renters insurance covers your possessions, liability and additional living expenses. Let’s take a look at these three types of protection:

Possessions (Your Personal Property)

Standard renters insurance protects your personal belongings against damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water and other disasters listed in the policy. Floods and earthquakes are not covered.

To decide how much insurance to buy, you need to know the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even towels and bedding. The easiest way to figure this out is to create a home inventory, a detailed list of all of your personal possessions and their estimated value. See our blog on Using Technology to Create A Home Inventory.

There are two types of renters insurance coverage for your possessions (your policy deductible will apply for both):

• Actual Cash Value pays to replace your possessions minus an amount for depreciation (the reduction in the value of items due to age and use) up to the limit of your insurance policy.

• Replacement Cost pays the full cost of replacing your possessions (with no deduction for depreciation), up to the limit of your policy. The price of Replacement Cost coverage is about 10 percent more than Actual Cash Value coverage, but can be well worth the additional cost.

Note that a standard renters insurance policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate insurance policy that provides additional coverage for your valuables and covers them for perils not included in your policy such as accidental loss.

Liability Insurance

Standard renters insurance policies also provide liability protection in the event you or members of your family cause injury to others or damage their property. It also pays for damage your pets cause. (Check your renters policy carefully, some policies exclude liability certain dog breads.)

If you are sued, the liability insurance portion of a renters policy may pay for both the cost of defending you in court and for court awards, up to the limit of the policy. We generally recommend at least $300,000 in liability coverage and even recommend securing an umbrella insurance policy for an extra layer of protection.

We always recommend that you buy as much liability insurance as possible because you do not have to be a millionaire to be sued like one. Lawsuits are prevalent these days and yo want to make sure to protect yourself and your assets from a lawsuit.

Your policy may also provide No-Fault Medical coverage. If visitors are injured in your home, regardless of fault, you can submit their medical bills directly to your insurance company. You can generally get $1,000 to $5,000 worth of this coverage. It does not however, pay medical bills for your own family or your pets.

Additional Living Expenses

Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is typically included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.