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Gutter cleaning can save you a lot of headaches for your home

Gutters can be easy to overlook. But they can get clogged with decaying leaves and other organic matter, leading to damage and expensive repairs that your home insurance won’t cover.  Regular gutter cleaning can prevent these issues.

Inspecting and cleaning your home’s gutters is crucial

Here are some top reasons gutter maintenance is a big deal for your home and budget.

Prevents roof, siding and foundation damage

Clogged gutters mean water can’t drain away from your home, leading to water overflow. Water that flows toward your house or pools can cause severe damage to the roof, siding and foundation.

Deters basement flooding

Clogged gutters can’t effectively direct rainwater away from your home. This can lead to basement flooding and mold growth.

Discourages pests from moving in

Gutters filled with decaying leaves are attractive to pests such as insects, birds and rodents. Over time, these pests can invade your home, causing damage and costly extermination expenses. Home insurance doesn’t cover infestations.

Protects your landscaping

Misdirected rainwater from clogged gutters can wash away or drown your plants, or erode your soil. That can drain your property’s curb appeal and your bank account.

Keeps your gutters in place

The extra weight of blocked gutters can cause them to pull away from the house, damaging your roofline, fascia and soffits. Simple gutter maintenance can help prevent expensive repairs down the road.

Reduces ice dams

Clogged gutters can fill with water and freeze in colder months, forming ice dams. Ice dams can force water underneath your roof shingles, causing rot and leaks. They also add weight to your roof, causing premature wear and risk of collapse.

If you make an insurance claim for home damage

Insurance doesn’t cover damage resulting from lack of maintenance or misuse. Damage caused by dirty gutters is a hard sell for insurance claims.

If you make a claim, your insurance company will send a claims adjuster to inspect the damage. They’ll look for patterns to find a root cause of the loss. They’ll deny the claim if they find evidence that gutters were the culprit.

You can appeal the claim denial, but you’ll need proof to bolster your case. Hiring an independent insurance adjuster can help. An independent adjuster isn’t associated with your insurance company and works for you. They’ll evaluate the damage, take pictures, review the wording in your policy and help you with your appeal. Just make sure to appeal within the period specified in your claim denial letter, usually 14 days.

Gutter cleaning supplies

If you’re cleaning your gutters, have these tools on hand:

• An extension ladder. Never use a damaged or worn ladder. You risk falling and injuring yourself.
• A standoff stabilizer. Stabilizers keep ladders from wobbling and protect gutters from the weight of the ladder leaning on them.
• A dust mask. Use a high-quality respirator, like an N95, to filter out small particles and mold spores.
• A tarp or ladder utility bucket. Placing a tarp on the ground near the ladder makes debris cleanup easier. If you use a bucket, make certain it’s safe to hook onto your ladder.
• Goggles. Use wrap-around goggles to keep debris from falling into your eyes. If you use a face shield to protect your face, wear goggles underneath for complete eye protection.
• Gloves. Choose sturdy rubber or synthetic-coated gloves that you’re comfortable in and that protect your hands from sharp debris. Beware of latex allergies when choosing gloves.
• Nonskid shoes. Choose closed-toe shoes with nonskid rubber soles for a solid grip on ladder treads.

Ladder safety tips

• Invest in a quality ladder.  You might have different ladders for different jobs in your home. Outdoor work requires an extension ladder with anti-slip feet. Inspect your ladder every time you use it. If it’s damaged, discard it.
• Check the ladder’s weight rating. Make sure it can hold your weight and the added weight of the materials you’ll be transporting. For example, if you decide to paint your gutters after you clean them, you’ll need to factor in the added weight of the paint cans.
• Maintain three points of contact on the ladder.  If you have to reach or lean so far that both hands leave the ladder, it’s time to dismount and reposition it. Get a friend or family member to hold the ladder and monitor your safety.
• Choose a grounded or fiberglass ladder that doesn’t conduct electricity. This will help prevent electrocution. But don’t be lulled into a false sense of safety because your ladder is nonconductive. You can still get electrocuted by an arc flash.
• Before you set up your ladder, check the area for power lines. Stay at least 10 feet away from overhead power lines. You don’t have to make contact with overhead electrical lines to be in danger. Electricity can jump its intended conduction path (the power line) and travel through the air in search of a new conductor, similar to how lightning travels the air. It’s called an arc flash, and it could kill you. If you must work near power lines, contact the utility company to discuss your project.
• Never use a pressure washer while on a ladder. Only use pressure washers while standing on the ground. Pro tip: If you’re using a cleaning solution in your pressure washer, make sure it’s safe to use around plants and shrubs.

Hire a professional and check the insurance

If heights and ladders aren’t for you, hire a professional.

Gutter cleaning services generally cost anywhere between $70 and $600, depending on the number of stories your house has and the complexity of your gutter system. A reputable contractor will have the right insurance coverage, but verify they have it.  Ask them for a certificate of insurance.  Ensure your home liability insurance is active, too.

Make gutter cleaning part of your home maintenance routine, particularly after your trees shed their leaves. You’ll prevent expensive problems and help maintain the structural integrity of your house. That’s a good return on investment!

The Importance of Adding Returning Household Members as Drivers on Your Auto Insurance Policy

In today’s world, it’s common for family members to move back into the family home. Whether it’s adult children returning after college, parents moving in for care and companionship, or other relatives seeking a temporary or permanent residence, the family household can often expand. While this can be a joyous reunion, there’s an often-overlooked aspect that needs attention: adding them as drivers on your auto insurance.

Why Add Returning Members to Your Auto Insurance?

1. Legal Requirement: In many states it’s a legal requirement to inform your insurance company about all household members and regular drivers of a vehicle. If someone is living in your household or someone frequently drives your car, they should be listed on the policy.
2. Coverage Assurance: If an unlisted driver gets into an accident, there’s a risk that the insurance company might deny the claim. This could leave you with hefty bills for repairs, medical expenses, and potential legal fees.
3. Accurate Risk Assessment: Insurance premiums are calculated based on risk. By informing the insurance company about all drivers, they can assess the risk accurately and provide a policy that truly covers your needs.

Consequences of Not Adding a Driver

1. Claim Denial:  One of the most immediate consequences of not adding a resident driver to your policy is the potential denial of a claim. If an unlisted driver is driving during an accident, the insurance company might refuse to cover damages.  In Maryland, most insurance companies will not pay for collision damage to your vehicle in this scenario.
2. Policy Cancellation: Repeated offenses or a significant claim can lead to the insurance company canceling your auto insurance policy altogether. This can make it challenging to find another insurer willing to cover you, especially at a reasonable rate.
3. Increased Premiums: If the insurance company discovers an unlisted driver and doesn’t cancel the policy, they might significantly increase your premiums. This adjustment could be retroactive, meaning you could owe a substantial amount for past coverage.
4. Legal Implications:  Depending on where you live, failing to list a regular driver can be considered insurance fraud.  This can lead to potential legal consequences.
5. Financial Burden: Without insurance coverage, you’ll be personally responsible for all costs associated with an accident. This includes repairs to your vehicle, the other party’s damages, medical bills, and potential legal fees if you’re sued.

In Conclusion

It might be tempting to save a few dollars on your monthly premium by not listing all drivers.  But the potential consequences far outweigh the savings. It’s essential to keep your auto insurance policy up-to-date with all regular drivers in your household.

This will this ensure that you’re covered in the event of an accident.  And, it also keeps you compliant with  your insurance agreement. So, as your family dynamics change, make sure to give your insurance agent a call. It’s a small step that can save you a world of trouble down the road.

Contact Huff Insurance

If you have any questions about this topic, or any other insurance topic, please give us a call at 410-647-1111.   Our team of knowledgeable agents is always available to help you make the best insurance decisions for you and your family. Thank you for considering Huff Insurance. We look forward to working with you soon!

The need for flood insurance for your business

Flood Insurance- You need to consider the increased risk of flooding

When thinking about flood insurance for your business, you may think if you are not by a body of water you don’t need it.  But think again!  Fill out the enclosed form to get a flood insurance quote today.

Recently floods in Vermont, Oklahoma and Kentucky have proven otherwise.  These are landlock states that experienced heavy rainfall that led to flooding and widespread devastation.

According to a report from the First Street Foundation, intense rain events, like atmospheric rivers and torrential thunderstorms are making the idea of a “1-in 100- Year flood event” obsolete.

The Northeast is one of the areas that the First Street Foundation is most concerned.  The rainfall depths for a 1-in-100-year event could happen far more frequently and they estimate it could be ever 5-10 years.

We used to worry about flooding only when there was a hurricane.  Now more flooding is being caused by intense rainfall, which causes inland flooding.

Flooding can happen anywhere and it’s a year-round risk. Poor drainage, summer storms, melting snow, flash rains, nearby construction and broken water mains can all lead to damage and loss of property.

Just 1 inch of floodwater can cause up to $25,000 worth of damage, according to the National Flood Insurance Program

What is a flood?

According to NFIP, a flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) due to:

• Overflow of inland or tidal waters
• Unusual and rapid accumulation or runoff of surface waters from any source
• Mudflow
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical level that result in a flood as defined above.

Most commercial property insurance does not cover Flood damage.   To protect your building or personal property you would need to have a separate flood policy.

Floods are one of the most common and expensive natural disasters that can affect every region and state. Other reasons you may want to consider commercial flood insurance:

Over 20% of flood claims come from properties outside high-risk flood zones.

Wildfires can change the landscape and ground conditions in your area, so future rainfall can cause flash flooding.

Storms aren’t the sole cause of flooding.

A broken dam or levee or new building development that changes the flow of water in your area are just a few ways that can trigger a flood.

Some commercial property policies even exclude water backup from sump pumps and drains if it is caused by a flood.

It is important to purchase a separate flood policy to have this protection.

When it comes to flood insurance you have a few options:

1. NFIP offers coverage up to $500,000 for the building and $500,000 for contents. This is the government program.
2. Excess flood policies can add additional limits over the NFIP.
3. There are also private flood markets that have higher limits and broader coverages, some include business income due to the flood as well.

There is a 30 day wait before flood coverage would be active after the application is completed.   You cannot wait for the rain to fall to get your flood insurance

Let me ask you a hypothetical question:

“Would your business re-open after a flood?” (Forget, for a moment, the odds of a flood.)

Nationwide 40% of small businesses DO NOT re-open, according to federal government statistics.

The reason businesses fail to get on their feet again is there is no FLOOD insurance financing the recovery.

I can’t emphasize this enough: only a flood insurance policy covers damage to buildings and contents caused by a flood. Flood can be rising tidal waters, or it can be a water main or it can be storm runoff that affects 2 or more adjoining properties.

Your business doesn’t have to be washed away in a tidal storm to put the “kabash” on your future.

Only a few inches of water will cause you a major financial setback. In fact, the average flood claim to a covered business was more than $75,000 in 2007 thru 2011.

Commercial flood insurance is different than flood insurance for a house. Through the National Flood Insurance Plan (NFIP) you can buy up to $500,000 of building coverage and up to $500,000 for business property.

Remember Superstorm Sandy? 

Many of the businesses affected where those far from the coast and did not have flood insurance.  We do not want to see your business suffer the same fate as those businesses.

Contact Huff Insurance

Don’t forget that we are here to help you stay in business after a claim. We can’t do much for you after a flood, though, unless you’ve got the coverage.

By the way, it’s not as expensive as you might think.

Call us at 410-647-1111 or fill out hte quote request form on this page and we will be glad to help you protect your business.

Life Insurance Awareness Month: A Guide for Business Owners

September marks Life Insurance Awareness Month.  A time dedicated to highlighting the importance of life insurance and its role in protecting our loved ones and our assets. Most people recognize the personal benefits of life insurance.  But many business owners overlook the many advantages it offers to their businesses.

This article delves into the various roles life insurance can play for business owners.  And why it’s an essential tool in their financial toolkit.

1. Key Person Life Insurance for Business Owners

Every business has its key people – individuals whose contributions are so vital that their sudden absence would severely impact the company’s operations.  This could be the CEO, a top salesperson, or a lead developer. Key person insurance compensates a business for the financial loss incurred due to the unexpected death or incapacitation of such crucial personnel. The payout can help the company through the challenging transition period.  Covering expenses like; hiring a replacement or training a team member to take over the role.

2. Business Continuation and Succession Planning

For businesses, especially family-owned ones, succession planning is crucial. Life insurance can fund a buy-sell agreement.  This will ensure that the remaining partners have the money to buy out the deceased partner’s share. This not only ensures the continuity of the business but also guarantees that the deceased’s family receives a fair value for their stake.

3. Collateral for Business Loans

Growing businesses often require loans for expansion.  And lenders typically seek collateral.  A life insurance policy can serve as collateral for a loan.   What this does is asure the lender that the loan will be repaid, even if the business owner passes away unexpectedly.

We insure hundreds of small business in Maryland and the Mid Atlantic region.  We frequently see the banks and lenders asking for a life insurance policy from our clients as collateral for their loans.   Many times, these loans are crucial for the success of the business.  And life insurance can make the difference between securing a loan or being turned down.

4. Enhancing Employee Benefits with Life Insurance

A competitive benefits package attracts and retains top talent. Offering life insurance as part of the employee benefits can make a business more appealing to potential hires. Moreover, group life insurance policies can often be obtained at a discounted rate, making it a cost-effective strategy for business owners.

5. Protecting Personal and Family Interests

As a business owner, you likely pour your personal savings into your ventures. A life insurance policy ensures that, in the event of a untimely demise, your family’s financial needs are met.   Life insurance can make sure that debts are cleared and the business can continue without resorting to a distress sale.

Wrap Up:

Life Insurance Awareness Month serves as a timely reminder for business owners to evaluate their insurance needs. Life insurance is not just a personal financial tool.  It’s a versatile instrument that can ensure the stability, growth, and continuity of a business.

As a business owner, investing in life insurance is not just about safeguarding your family’s future.  But also about protecting your life’s work, your employees, and your legacy.

Contact Huff Insurance

If you have any questions or want more information, let us know.  Call us at 410-647-1111 or fill out the quote request on ths page.

Huff Insurance  is here to make sure that your business has the right life insurance coverage in place.

We look forward to working with you!

Does owning a home dictate how much your auto insurance liability limits should be?

We recently had a client move their auto insurance to an online competitor.  When clients leave us, we like to have a conversation as to why and what we could do better in the future.  What she told us was a bit surprising.  She stated that the online carrier representative told her that she did not need the higher liability limits on her auto policy because she did not own a home.

They said what?

That’s right.  She was talked into lowering her liability limits to state minimum limits because the rep told her she did not need the higher limits.

The suggestion that individuals who don’t own a home don’t need higher liability limits is misleading. Liability coverage is not solely about protecting physical assets like a home; it’s about protecting oneself from financial devastation due to significant liability claims.

Here’s why everyone, homeowner or not, should consider higher liability limits:

• Future Earnings at Risk:  Even if someone doesn’t have substantial assets now, a court can order wage garnishment to satisfy a judgment.  This means future earnings could be at risk if involved in a serious accident where they’re deemed at fault and the damages exceed their liability limits.
• Asset Protection: While a home is a significant asset, it’s not the only one. Savings, investments, personal property, and even future assets can be targeted in a lawsuit.
• Medical Bills Can Be Expensive: If an individual is found at fault in an accident that results in severe injuries to another party, the medical bills can quickly exceed low liability limits. The at-fault party would then be responsible for covering the excess out-of-pocket.
• Legal Costs: Legal defense costs can add up quickly, even if the insured is found not at fault. Higher liability limits often mean the insurance company will invest more in the legal defense. This is because they have more at stake.
• Peace of Mind: Having adequate coverage brings peace of mind, knowing that you’re protected from unexpected financial burdens.
• Cost to Increase is Often Minimal: In many cases, the cost to increase liability limits is not exorbitant. The additional protection provided is often worth the modest increase in premium.

Evaluate your insurance needs

It’s true that individuals with significant assets, including homeowners, often have more at risk.   Therefore, they might be advised to carry higher liability limits.

But it’s a mistake to think that those without substantial assets don’t also need robust protection. Everyone should evaluate their financial situation, potential future earnings, and risk tolerance when deciding on liability coverage.

Most people think that their biggest asset is their home.  Because that is what we are told by the TV commercials from the realtors, mortgage brokers and investment advisors.  But in reality, our biggest asset is our income and our ability to earn and keep our income.

Think about it.  Someone making $50,000 over the next 30 years will make $1,500,000, assuming no raises.  With cost of living increases, that number could easily double to $3,000,000.

Higher liability limits not only protects your physical assets, but it also protects your future income.

Why contact Huff Insurance?

At the end of the day, insurance is more than just a policy; it’s about securing peace of mind and safeguarding your future.

Huff Insurance has years of expertise and commitment to our clients.  We offer not just coverage, but a partnership in your protection.

Our team goes the extra mile to understand individual needs, ensuring that you’re not just insured, but well-protected.

Whether it’s for your home, auto, or any other valuable asset, reaching out to Huff Insurance is a smart step toward robust and reliable insurance protection

Call us today at 410-647-1111.

Concurrent vs. Non-Concurrent Causation Clauses: What You Need to Know

Ever read your home insurance policy and come across big words that make your head spin?  You’re not alone. Today, we’re going to break down two of those tricky terms: “concurrent causation“ and “non-concurrent causation.” Knowing the difference between these two can be a game-changer when it comes to getting money for damages.

What’s Concurrent Causation?

Simple Explanation: Let’s say two things damage your property at the same time. If your insurance covers at least one of those things, they’ll pay for all the damages.

Example: Imagine you have homeowners insurance that covers damage from fire but not from floods. A storm comes through and floods your home and causes the house to catch on fire. If your policy has a “concurrent causation” clause, you’re in luck!  They should cover the claim because fire damage is included in your insurance policy.

Remember Superstorm Sandy in New Yourk / New Jersey?  There were several houses that started burning during the flooding due to the gas lines being compromised.  These homeowners had their damage covered.  Since fire was a covered peril, the insurance companies had to pay the claims, even though flood was excluded.

It was soon after Superstorm Sandy that the insurance industry started changing to a non-concurrent causation clause in their property insurance policies.

So, what is Non-Concurrent Causation?

Simple Explanation: This one’s the opposite. If two things damage your property and one of them isn’t covered by your insurance, they won’t pay for any of the damages.

Example: Using the storm scenario again, if your policy has a “non-concurrent causation” clause, you won’t get any money. This is because flood damage isn’t covered, even though fire damage is.  Because the flood is excluded, the insurance company will not pay for any damages resulting from this claim.

Why Should You Care?

Depending on which clause your policy has, you could either get all your damages paid for or get nothing.

So, it’s super important to:

1. Check Your Policy: Read it carefully and see what’s covered and what’s not.
2. Ask for Help: If something’s unclear, ask someone. Your insurance agent is there to help. You can reach out to Huff Insurance at 410-647-1111 with any questions.
3. Think About Where You Live: If you live in a place where storms are common, make sure your policy covers what you need.

Does Maryland Allow Non-Concurrent Causation Clauses?

Yes. Non-concurrent causation clauses are allowed in the state of Maryland.

Maryland did pass a law saying insurance companies must explain the non-concurrent causation clause to homeowners every year.  This law, named H.B. 695, started on June 1, 2013, thanks to Governor Martin O’Malley.  It means insurance companies need to send a clear yearly letter to homeowners about this rule.  This letter advises homeowners to read their insurance papers to fully understand what’s not covered.  If they have questions, they can talk to their insurance agent for more information.

Wrapping Up

Insurance can be confusing, but it’s there to help when things go wrong. By understanding these terms, you can make sure you’re getting the best protection for your money. So, next time you look at your policy, you’ll know what’s up!

Thanks for taking the time to learn a bit more about non-concurrent causation.

We hope you found this article valuable. Feel free to contact us if you have any questions or need further support. Huff Insurance is here to help make sure you and your family are always safe and protected.

Questions regarding adding drivers to your auto insurance policy

Recently, I had a client whose adult, nonresident sons use her vehicle to drive on the weekends.  They like her car because it is a classic Mustang.   Our advice was that they be listed drivers on her car insurance policy.  They have regular access to the vehicle, and they drive the vehicles.

She came back with this question.  By adding them as drivers, could they be brought into a lawsuit if she had an accident?

Adding someone as a driver is not the same as adding them as an insured  

A driver has no additional coverage on the policy.  Adding the drivers makes the  insurance company aware of who is accessing and driving the vehicle on a regular basis.

Many insurance companies are now limiting the liability coverage and physical damage coverage on vehicles when they are involved in a loss and the driver was not disclosed.   Although, there is still permissive use, most of the definitions of permissive use are being restricted if the driver is an undisclosed household member, or someone that has regular access to the vehicle.

Therefore, if the mother adds her sons to her policy as a driver and the mother has an accident.  The sons would not be sued, because they were not at fault, and they did not own the vehicle.

If the sons are driving the vehicle and they have an accident, the mother could be sued as well as the son.

The mother as the owner of the vehicle and the son as the driver of the vehicle.

Whose car insurance would cover?

In that case the mother’s policy would be primary.   And then the son could apply to his personal auto policy as excess to protect him as the driver.

Whenever you allow someone to drive your car, you are adding liability to you as the owner of that vehicle if they have an accident.

But adding someone as a driver to your policy does not automatically give them rights as an insured unless they meet the definition of an insured on the policy.  Therefore, just because I am a driver on a policy does not mean that I would be more susceptible to liability if there was a claim that I was not driving.

Remember, companies are cracking down on undisclosed drivers and they are limiting coverage under the owner’s policy if someone is driving, was in the household or had regular access to the vehicle and they are not disclosed.  In most policies if you have a vehicle that you are driving that you have regular access to or is owned by a member of your household then your auto policy, as the driver, of that vehicle will not provide you the excess liability coverage.

Contact your insurance agent if you have a vehicle that you regularly have access to, such as:

1. Your elderly mother’s car that you use her car to take her to the doctor’s office.
2. A company provided, work truck.
3. A girl/boy friends’ vehicle that you drive every Friday night when you go out

This nondisclosed driver issue is bankrupting the insurance industry and the number one cause of claims.  Policies have been amended to restrict the coverage.

Contract Huff Insurance today to discuss your situation and if should be adding drivers to your policy.

We strive to provide complete insurance solutions for our clients.  Don’t wait until it’s too late!

Call us today or fill out the quote form for more information.

Do you have the right open lot floor plan coverage for your auto dealer business?

What is floor plan coverage?  Floor plan coverage is the amount of insurance you need to carry to insure the vehicles that your car dealership owns.

Your floor plan can change by the hour in the auto dealership business.    Sales are being made; inventory is being purchased.  It is up and down day by day.  So, what amount of  floor plan coverage do you need?

The easy answer is – the maximum value that you will have in your inventory at any one time.

But what I hear from dealers is that they don’t want to pay for the maximum value when they may never have that or only have that once or twice a year.

In doing that, you might end up with thousands of dollars in unpaid claim.  Versus paying a few more dollars for the proper insurance limit.

Can you be penalyzed for not having enough floor plan insurance coverage?

Most insurance policies for car dealerships have some level of requirement that your coverage limit for the lot be a minimum of 80%-100% of the total limit at the time of loss or you will suffer a penalty.

Let me try to illustrate how this coinsurance percentage affects you at the time of a claim.   You have a vehicle that was stolen from your lot that cost $25,000 and your floor plan coverage lot limit is $100,000.

When adjusting the claim, the company is going to ask you to provide the floor plan for the vehicles in inventory at the time of the loss.  Let’s say on this day you had $200000 in total vehicles.

Well, if you had 100% coinsurance requirement and you had $100,000 limit but your inventory was $200,000 at the time of the loss. Then you were only 50% insured to value not 100% insured to value.

So how does this affect the amount the company will pay for the $25,000 stolen vehicle? 

Since you were only 50% insured to value ($100,000 limit of coverage/$200,000 inventory limit) then the company will only pay you $25,000 for your vehicle divided by 50%, which would be $12,500 less any applicable deductible.

This could have been avoided if the dealer had purchased $200,000 for their floor plan limit.   Then the insured would have been paid the full value of the vehicle $25,000 less any applicable deductible.  This would have resulted in an additional $12,500 of payment at time of loss.

What else to consider

Many dealership policies not only have a total lot limit but also a maximum per vehicle limit.  Again, this limit needs to be the maximum value of any vehicle that you will ever have in your inventory.

If most of your vehicles are $20,000 in value, but sometimes you may have a $50,000 vehicle value, then you need to have a $50,000 per vehicle limit.

Let’s assume that you have a $200,000 lot limit and a $25,000 per car limit.    You have a $50,000 vehicle total in an accident and on the date of the claim you had $150,000 in inventory.

So, your inventory limit is not an issue since you had $150,000 in inventory and a $200,000 limit.  You will not have a lot of penalties on the claim.

But then when we go to the vehicle you have a $50,000 claim and you have a $25,000 vehicle limits and your deductible was $1,000 for collision.   Rather than the company paying $50,000 less the $1000 deductible.  They will apply the limit for vehicle, and you will be paid $25,000 less the $1000 deductible.  So, you end up getting a check for $24,000 rather than $49.000.

I don’t know about you but if I was paid $25000 less for a single claim, I would not be happy.

How do you make sure that this does not happen to you?

When choosing your lot limit, or floor plan coverage, look at how much inventory you would ever be able to have at any one time.  Think about the 1 time a year, worst case scenario, not the best case, or the average inventory.

Then think about what is the most you would spend on anyone vehicle.   Do you take special orders for vehicles that may be outside of your normal inventory values?  Again, think about the one time a year scenario and not your average vehicle value.

Many times, your floor plan company might tell you that your line of credit is $100,000 and they only require 2/3 of that to be your floor plan coverage limit.  That might be all that they require. But it does not mean by meeting their requirement that you still could not be subject to a penalty on a claim because you did not meet the insurance company’s requirements.

Also, make sure that you are review your coverage limits regularly.  The prices of cars have dramatically increased in the past few years.    Your limits might have been sufficient 3 years ago, but now are not sufficient.  Do not just renew what you have, make sure that your coverage is still meeting your needs.

Contact Huff Insurance Today

Fill out the quote form or call us at 410-647-1111.  Our represeentatives are experienced when it comes to dealing with auto dealers and your floor plan coverage needs.

In fact, Nancy even took a day to go to an auto auction with one of our insured auto dealers.  She did ths just to learn how the business works.  You can check out her blog on her experience here:

A Day In the Life Of An Auto Dealer

How important is excess uninsured motorist coverage?

What happens if you are hurt in a car accident that is not your fault?

As an insurance agent, I think about this all the time.  But I would guess that most of our clients don’t even consider it.  This is where excess uninsured motorist coverage can come into play.

Did you know that 14% of all drivers in MD don’t have auto insurance and another 38% are driving at the state minimum limits of $30,000 per person?

That means more than 50% of the drivers on the road don’t have more than $30,000 in protection.

So, what happens to you or your family if you are hit and hurt by one of these drivers?

If you have an umbrella policy, so you realize that accidents do happen.    Your umbrella gives you additional protection if you are liable for the accident.

But what happens when the person hits you does not have the proper coverage to handle your injuries and damage?

If you have medical bills, hospital bills, and time off work?

Who pays for that when it was not your fault?

How far is $30,000 going to go towards putting your life back together.

Thirty days of not working or being in a long-term care facility could bankrupt most people.

So, how do we fix this?  

You already have an umbrella policy, now we can add uninsured motorist coverage to the umbrella insurance policy.

This way if you are injured by someone that does not have enough coverage you could collect up to an additional $1,000,000 of protection.

I know what you are thinking, why should you purchase this coverage? You  just sue the negligent driver, right?

Well, that driver might not have any assets to seize.  And although garnishing their wages is punishment to the negligent person, how much is $200 a week going to go to help you with your bills due?

Not to mention that lawsuits take time.  What are you doing in the meantime?  And, you are giving up 30-40% of your settlement to the attorney that is pursuing the lawsuit.

If I were you, I would not want to rely on someone else to provide my family with the coverage we might need.

I want to be sure that my lost wages and medical bills will be taken care of.  Having health insurance is a plus.  But there are still deductibles and copays that would come out of your pocket.  And Medicare does not include long term care coverage if needed.  Plus, your time from work might be coming out of your pocket if you don’t have disability insurance.

So, how do you take care of this? 

You may be able tp purchase excess uninsured motorist coverage on your umbrella policy.   The cost is about $100-$200 per vehicle per year.

That’s expensive you might say.  Well, it shows how much it is used.

You know that you are a good driver, but you know that accidents happen.  Unfortunately, the other people on the road may not be as good a driver as you.

Fill out the form on this page, call the office at 410-647-1111 or email pl@huffinsurance.com.  And tell us that you want to add uninsured motorist coverage to your umbrella policy.

Not all carriers offer uninsured motorist coverage on their umbrella.  So your umbrella pilicy may need to be rewritten to get this option.

Do not delay, call us today.   Accidents happen without calling ahead for an appointment.

We want to take care of you.   Please contact us 410-647-1111.

Recreational Drone Insurance

Recreational drones, sometimes called unmanned aircraft systems or unmanned aerial vehicles, are growing in popularity every year.

The Federal Aviation Administration (FAA) reports that more than 871,000 drones were registered as of January 2023. And the number continues to grow. That means a lot of new operators and a lot of new opportunities for fun — and accidents.

Owning a drone is easier than ever, as good-quality, low-cost models are becoming widely available. Plus, drones are fun. They can be used for racing, capturing a bird’s-eye view of everything from the beach to the treetops, or just for the enjoyment of flying.

But understanding the responsibilities of drone ownership is crucial to safe and enjoyable operation.

For example, did you know you could be sued if your drone damages someone else’s property or causes an injury?

Even recreational drone pilots need to know federal, state and local laws regarding personal aircraft operations. Some local ordinances include flight restrictions and laws to protect privacy and private property.

Before you start flying, you need to understand:

• Your legal and regulatory restrictions and obligations
• Insurance issues
• Best practices for operating a drone

Federal, state and local regulations

Flight laws aren’t only for professionals. Although recreational drone pilots are subject to fewer regulations than commercial drone pilots, there are several regulations that cover drones and drone operators. They involve:

• Registration requirements. All drones must be registered with the FAA, except those weighing .55 lbs. or less and flown exclusively under the Exception for Recreational Flyers. All registered drones must be properly labeled according to FAA instructions. Pilots must have a paper or digital copy of their registration certificate with them while they are operating their aircraft.
• Exceptions for recreational operations of unmanned aircraft. 49 USC Section 44809 permits an individual to operate a small unmanned aircraft without specific certification or operating authority from the FAA if they meet certain requirements. Among other requirements, the operator must:
  • Use the drone exclusively for recreational purposes.
  • Keep the drone within their line of sight or use a visual observer in the immediate vicinity whom they stay in direct communication with.
• Safety test requirements for drone operators. Check the FAA’s available test dates for recreational operator flight safety exams.
• Licensing requirements. If you fly your drone under Part 107, the FAA’s rule for Small Unmanned Aircraft Systems (UAS), you must obtain a remote pilot certificate from the FAA.

FAA regulations specify maximum altitude (400 feet), airspace restrictions and prohibited operations (for instance, flying over people, flying at night and interfering with manned aircraft).

The FAA also provides recreational flyers with useful tools like the B4UFLY mobile app. B4UFLY provides information on where it’s safe to fly, and websites where you can obtain authorization to fly in a controlled airspace, such as FAA DroneZone.

The B4UFLY app can help you identify local restricted airspace. However, you should check local ordinances before flying for additional guidance and prohibitions.

Complete FAA recreational flyer regulations and other information can be found on the FAA website.

Is your recreational drone insured?

If you’re a recreational drone operator, it’s important to know the various risks involved in flying a drone. Mishaps and accidents can happen with inexperienced and veteran drone pilots alike.

Drones can be involved in many types of incidents, including damage to personal property, injuries and violations of flight laws. In addition, drones with cameras can lead to invasion of privacy lawsuits. Verify your insurance coverage before you fly.

Many drone-related incidents are covered by your homeowners or renters property insurance coverage. For example, if your drone is damaged, it may be insured for its value minus your deductible.

There are some exceptions, however

For instance, if your drone falls and damages your car, the damage to your vehicle would not be insured by your homeowners policy.  You would have to turn to your auto insurance policy. Your auto policy would respond if you have elected “comprehensive” or “other than collision” coverage. If you are injured by your own drone, your health insurance coverage may apply.

The liability clause in your homeowners, renters, condo or umbrella policy may cover lawsuits or damages if your drone injures someone or damages their property. Your liability policy may also cover lawsuits involving unintentional invasions of privacy if your drone accidentally takes a photo or video of someone or their property, or you’re accused of doing so.

You should also be aware of stringent federal and local laws regarding flying drones during emergencies or natural disasters, even when temporary flight restrictions are not in place. Penalties could include substantial fines, which might not be covered by your insurance.

You’ll also need coverage for theft. Verify that your insurance is adequate to cover the replacement cost if your drone is stolen. And save receipts for your drone and related equipment.

Because drone incidents can involve various losses and risks, it’s best to contact an insurance professional. The insurance professionals at Huff Insurance can explain the types of events that are covered, your deductibles and any policy limitations. Remember that your insurance needs may change if you purchase a larger or more advanced drone.

Your insurance agent or broker will ask specific questions about the type of drone you own and how you will use it.

These questions may include:

• How big is the drone and how much does it weigh?
• Who will be flying the drone, and do the operators live in your household?
• Will the drone include a camera or video camera? Will it be used to take photos?
• Is the drone registered?
• Where do you plan to fly the drone?
• Will you fly the drone on public property?
• Will the drone be used for competitive racing?

While coverage may vary, know that your homeowners policy probably won’t cover commercial or business use of the drone.

Do you use your drone for any type of business?

If you use your drone for any type of business purpose, then you need to make sure to get the appropriate business drone insurance policy.

Our team at Huff Insurance can help you get the right type of coverage for your drone.

Drone safety and best practices

Following safety best practices is key, even if you’re only flying for fun in your own backyard. The FAA lists these safety tips for new drone operators:

• Register your drone.
• Fly your drone at or below 400 feet.
• Keep your drone within your line of sight.
• Be aware of FAA airspace restrictions.
• Respect privacy.
• Never fly near other aircraft, especially around airports.
• Never fly over groups of people, public events or stadiums full of people.
• Never fly near emergencies, such as fires or hurricane recovery efforts.
• Never fly under the influence of drugs or alcohol.

Local flight clubs and community organizations can also provide guidance and safety education.

Resources for recreational drone safety education and information include:

• Know Before You Fly, an educational campaign by the Association for Uncrewed Vehicle Systems International and the Academy of Model Aeronautics in partnership with the FAA. The goal of the campaign is to educate recreational drone operators about safe and responsible operation of uncrewed aircrafts.
• The Academy of Model Aeronautics, a nonprofit organization that promotes the development of model aviation as a recognized sport and worthwhile recreation activity. It also provides educational resources including the AMA Flight School.

Keep your drone flying experience fun and safe, and protect yourself with solid insurance. Then you will truly enjoy the friendly skies.

Contact Huff Insurance

If you have any questions about your specifinc insurance coverage, please reach out to us at 410-647-1111.  One of our seasoned and tenured insurance professionals will be happy to talk with you.